Trusco Nakayama Corporation · TSE:9830
Trusco Nakayama — Q2 2022 Earnings Presentation
45 slides from Trusco Nakayama's earnings presentation, Sep 8, 2022
Slide 1: Business Performance Data Analysis, Second Quarter FY2022
The 60th Business Year Business Performance Data Analysis Fiscal Year Ending December 2022 Second Quarter Published by: Securities code: 9830 Business Administration Headquarters, Corporate Planning Division, Public Relations & IR Section Post code: 105-0004 Trusco Fiorito Bldg. 10th floor, 4-28-1,
Slide 2: Table of Contents
Table of Contents 60th Business Year, Fiscal Year Ending December 2022 Second Quarter P5-9 A: Company-wide Business Performance P10-19 B: Sales Performance P20-25 C: Financial and Other Performances P26-33 D: Key Indicators P34-37 E: 60th Management Plan P38-41 F: ESG Information P42-45 G: Reference
Slide 3: Company overview
Company overview Founding May 15, 1959 Tetsuya Nakayama, President Chairman, Nakayama Visually Impaired Welfare Foundation Representative Vice president, Japan Federation of Machine Tool Distributors Associations President, Osaka Machine Appliance Wholesaler Cooperative Tokyo Head Office (Minato-ku,
Slide 4: Business flow
Business flow We are a specialized trading company that purchases professional tools from our suppliers and sells them to machine tool dealers, internet order companies, general hardware mass discounters, and other customers. Through us, professional tools can be delivered quickly, smoothly, and rel
Slide 5: A. Company-wide Business Performance
A. Company-wide Business Performance P6 A-1. Accounting highlights P7 A-2. [Consolidated] Business performance P8 A-3. [Consolidated] Monthly sales P8 A-4. [Consolidated] Monthly sales by sales route 5 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 6: A-1. Accounting highlights
A-1. Accounting highlights ▮ Performance in the first half of the fiscal year ・ Opportunity loss was reduced by continuously expanding inventories amid rising resource prices and increasing shortages of products. ・ The user direct delivery service was enhanced, and orders were consolidated. ・ Sellin
Slide 7: A-2. [Consolidated] Business performance
A-2. [Consolidated] Business performance FYE December 31, 2021 FYE December 31, 2022 FYE December 31, 2022 Full Year Second Quarter Full Year Year-on-year Actual results Rate Actual results Rate YoY change Forecast change Net sales 226,833 million yen － 120,683 million yen － +7.1% 243,500 million ye
Slide 8: A-3. [Consolidated] Monthly sales
A-3. [Consolidated] Monthly sales * Since April 1, 2022, we have changed our holidays according to the calendar, so the number of business days in August and December has increased compared to the previous year. Orders are constantly placed for consumables used in factories. As such, we place focus
Slide 9: A-4. [Consolidated] Monthly sales by sales route
A-4. [Consolidated] * Since April 1, 2022, we have changed our holidays according to the calendar, so the number of business days in August and December has Monthly sales by sales route increased compared to the previous year. ▮ Factory route ▮ e-business route Net sales (million yen) Year-on-year c
Slide 10: B. Sales Performance
B. Sales Performance P11 B-1. [Consolidated] Business performance by sales route P12 ・Factory route P13 ・e-business route P14 ・Home center route P15 ・Business performance of subsidiaries P16 B-2. [Non-consolidated] Analysis of sales P17 B-3. [Non-consolidated] Changes in sales by category of goods P
Slide 11: B-1. [Consolidated] Business performance by sales route
B-1. [Consolidated] Business performance by sales route FYE December 31, 2022 FYE December 31, 2022 FYE December 31, 2021 Second Quarter Full Year Gross Net sales profit Net sales Gross profit margin Net sales margin Change Year-on- Actual from Actual YoY Sales route Actual results Share Actual resu
Slide 12: B-1. Factory route
B-1. [Consolidated] Business performance by sales route: Factory route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Second Quarter Second Quarter Gross profit Net sales margin Net sales Gross profit margin Sales route Actual YoY Actual YoY Actual results Share Actual results Share
Slide 13: B-1. e-business route
B-1. [Consolidated] Business performance by sales route: e-business route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Second Quarter Second Quarter Gross Net sales profit Net sales Gross profit margin margin Sales route Actual Actual Actual results Share results Actual results Sh
Slide 14: B-1. Home center route
B-1. [Consolidated] Business performance by sales route: Home center route ▮ Sales by industry ▮ Change in sales earned via home center route ▮ Change in sales earned via pro-tool shops Full year budget Unit: million yen, % Unit: million yen, % 19,455 million yen YoY change YoY change Year on year (
Slide 15: B-1. Business performance of subsidiaries
B-1. [Consolidated] Business performance by sales route: Business performance of subsidiaries ▮ Non-consolidated sales TRUSCO NAKAYAMA CORPORATION TRUSCO NAKAYAMA CORPORATION TRUSCO NAKAYAMA CORPORATION non-consolidated) (THAILAND) LIMITED (INDONESIA) LIMITED FYE December 31, 2022 Full Year FYE Dece
Slide 16: B-2. [Non-consolidated] Analysis of sales
B-2. [Non-consolidated] Analysis of sales (Unit: million yen) Net sales up 7,937 million yen Rise in demand due to recovery Decrease in Decrease in other in capital construction (including 2Q of expenditure, etc. goods adjustments) Rise in demand due FY 2022 to recovery of the manufacturing +2,232 △
Slide 17: B-3. Changes in sales by category of goods
17 TRUSCO NAKAYAMA Investor Relations (Unit: million yen) ★: COVID-19 related products △8.8% △35.3% △23.2% △27.2% △18.8% △56.1% △33 Humidifiers B-3. [Non-consolidated] Changes in sales by category of goods +91 +11.8% +31.8% +26.6% +72 Dust mask △35 ★ CO2 monitors +73 Mesh palettes ★Sterilization and
Slide 18: B-4. Sales by category of goods
B-4. [Non-consolidated] Sales by category of goods A recovery of production operations led to a rise in sales of products (large category 4, 7) related to factory production and to capital expenditures. A revision to the law that introduces an obligation to wear fall arrest systems increased demand
Slide 19: B-5. Sales of private brand (PB) goods
B-5. [Non-consolidated] Sales of private brand (PB) goods ▮ Change in sales of PB goods (Unit: million yen) Full year budget: Production ( ) Year-on-year change 46.6 billion yen Cutting tools processing goods Office and housing facility equipment Construction Research goods management equipment Work
Slide 20: C. Financial and Other Performances
C. Financial and Other Performances P21 C-1. [Consolidated] Selling, general and administrative expenses (SGA) P22 [Consolidated] Details of selling, general and administrative expenses (SGA) P23 C-2. [Consolidated] Financial statements and financial indicators P24 C-3. [Consolidated] Capital expend
Slide 21: C-1. Selling, general and administrative expenses (SGA)
C-1. [Consolidated] Selling, general and administrative expenses (SGA) ▮ Main items that increased in selling, general and administrative expenses (SGA) FYE December 31, FYE December 31, 2022 FYE December 31, 2022 2021 Second Quarter Full Year Year-on-year Account title Actual results Actual results
Slide 22: C-1. Details of SGA
C-1. [Consolidated] Details of selling, general and administrative expenses (SGA) (Unit: million yen, %) FYE December 31, 2022 FY 2021 FY 2022 Second Quarter YoY Change Year-on-year YoY change Full Year Share in net Share in net (amount) change No. Actual results Actual results Budget sales sales 1
Slide 23: C-2. Financial statements and financial indicators
C-2. [Consolidated] Financial statements and financial indicators ▮ Balance Sheet ▮ Statement of cash flows Unit: million yen (As of June 30, 2022) Unit (million yen) Item Amount Item Amount 2Q of 2Q of (Assets) (Liabilities) Change FY 2021 FY 2022 Current assets 118,991 Current liabilities 41,911 C
Slide 24: C-3. Capital expenditures
C-3. [Consolidated] Capital expenditures ▮ 60th planned expenditure: approx. 4,338 million yen (Unit: million yen) Actual Expected expenditures for expenditures for Details of major capital expenditures in 2022 the first half of the second half the fiscal year of the fiscal year Planet Higashi Kanto
Slide 25: C-4. Planning progress for Planet Aichi
C-4. Planning progress for Planet Aichi ▮ Planet Aichi Overview Location: Kitanagoya, Aichi Prefecture (Site of Readjustment Project for the Land West of Okimura, Kitanagoya) Site area: 41,636.36 sqm (purchased: 20,271.07 sqm, leased land: 21,361.98 sqm) Land rent: Approximately 5.7 million yen per
Slide 26: D. Key Indicators
D. Key Indicators P27 D-1. Goods P28-29 D-2. Sales P30-31 D-3. Logistics P32 D-4. Digital P33 D-5. Human resources 26 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 27: D-1. Key indicators (goods)
D-1. Key indicators (goods) ▮ TRUSCO Orange Book.Com ▮ Number of items in inventory: 525,682 items Number of items featured: 2,914,273 items Of these, number of goods automatically adopted: 18,115 items Product search site with all the information you need to procure professional tools. Automatic st
Slide 28: D-2. Key indicators (sales)
D-2. Key indicators (sales) ● Change in the number of companies participating ▮ Orange Commerce in Orange Commerce (Trusco’s electronic central Purchasing support system for users, which purchasing system) streamlines the procurement process Sales to companies participating in Orange Commerce (100 m
Slide 29: D-2. Key indicators (sales): MRO Stocker
D-2. Key indicators (sales) Currently under negotiation 258 companies ▮ MRO Stocker (use-first-pay-later tools) Target number of companies for installation as of the end of 1,409 Introduced to 494 companies December 2022 as of the end of June 2022 Monthly sales target per company 300,000 yen MRO Sto
Slide 30: D-3. Key indicators (logistics)
D-3. Key indicators (logistics) ▮ Share by Delivery Category (by number of shipment lines) User visits0.3% 2021 Delivery to Route shipments to Route shipments 2Q distributors distributors to users 17.8% 10.3% 70.8% Distributor visits 0.8% 2022 Delivery to Route shipments to Route shipments 2Q distri
Slide 31: D-3. Key indicators (logistics)
D-3. Key indicators (logistics) ▮ Number of items in inventory and ▮ [Non-consolidated] Changes in inventory inventory shipment rate disposal and inventories 2017 2018 2019 2020 2021 Inventory disposal (million yen) 41 39 42 50 55 Inventories (100 million yen) 318 370 427 406 416 Disposal rate (%) 0
Slide 32: D-4. Key indicators (digital)
D-4. Key indicators (digital) ▮ AI-based estimation system "Swift Estimator" Automate quotations with AI Promotes automation of quotations through special price optimization that automatically calculates fair prices for products on a regular basis based on the performance of orders and quotations. T
Slide 33: D-5. Key indicators (human resources)
D-5. Key indicators (human resources) ▮ Number of Employees [Consolidated] ▮ Average age and annual income As of June 30, 2022 (Unit: persons) Female Male Total YoY change Average annual income Average age (years) (10,000 yen) Executives 1 9 10 △1 Entire Entire Executive officers 0 1 1 △1 Female Mal
Slide 34: E. 60th Management Plan
E. 60th Management Plan P35 E-1. [Consolidated] Management plan P36 E-2. [Consolidated] Quarterly business performance and budget (quarterly) P37 E-3. [Consolidated] Quarterly business performance and budget (cumulative) 34 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Invest
Slide 35: E-1. [Consolidated] Management plan
E-1. [Consolidated] Management plan ◆ Budgeting policy The forecast is used as the entire company’s budget, which is the total of the "annual budget of each branch prepared by the branch manager throughout Japan." The branch managers, who are familiar with their market, formulate their respective br
Slide 36: E-2. Quarterly budget and business performance (quarterly)
E-2. [Consolidated] Quarterly budget and business performance (quarterly) ▮ FYE December 31, 2022 Second Quarter (Quarterly) (Unit: million yen, %) 1st Quarter (-1 day) 2nd Quarter (±0 day) 3rd Quarter (+3 days) 4th Quarter (+1 day) Actual results Share YoY change Actual results Share YoY change Bud
Slide 37: E-3. Quarterly budget and business performance (cumulative)
E-3. [Consolidated] Quarterly budget and business performance (cumulative) ▮ FYE December 31, 2022 Second Quarter [Cumulative] (Unit: million yen, %) 1st Quarter (-1 day) 2nd Quarter (±0 day) 3rd Quarter (+3 days) 4th Quarter (+1 day) Actual results Share YoY change Actual results Share YoY change B
Slide 38: F. ESG Information
F. ESG Information P39 F-1. TRUSCO's "Gentleness for the Future" Project P40 F-2. Material issues P41 F-3. Sustainability indicators 38 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 39: F-1. TRUSCO "Gentleness, to the future ..."
F-1. TRUSCO "Gentleness, to the future ..." ▮ TRUSCO "Gentleness, to the future ..."Project We have been making various environmental efforts under our environmental philosophy "Gentleness for the Future" since 1998, based on our desire "to be a global environment-friendly company so that our small
Slide 40: F-2. Material issues
F-2. Material issues ▮ Material Issues — To be a sustainable company with low environmental impact On the basis of its basic TSV policy, the Company identified the material issues it faces for sustainability. The Company will address these issues through its business with a view towards the establis
Slide 41: F-3. Sustainability indicators
F-3. Sustainability indicators ▮ TRUSCO power generation installations ▮ CO₂ emissions (solar and wind power) at 19 locations (as of the end of 2021) Annual power generation in 2021 Scope1 1,941.4t-co₂ 2,604,757kWh Renewable energy power self-sufficiency 16.5% Scope2 7,154.2t-co₂ ▮ Disclosure of Sco
Slide 42: G. References
G. References P43 G-1. Stock information P44 G-2. Index comparison in the industry P45 G-3. The Company's sales index and industrial production index 42 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 43: G-1. Stock information
G-1. Stock information ▮ Shareholder information (Unit: persons) 2019 2020 2020 2021 2021 2022 End of End of End of End of End of End of December June December June December June Shareholders total 40,106 23,697 16,336 14,903 14,406 16,212 Holder of share 39,494 22,887 15,514 14,030 13,528 15,190 Ho
Slide 44: G-2. Index comparison in the industry
G-2. Index comparison in the industry ▮ Performance of trading companies and direct sales companies (listed companies) in the same industry Trading companies in the machine tools industry include the following companies, but they operate differently in the wholesale and retail sectors, and each hand
Slide 45: G-3. Company's sales index and industrial production index
G-3. The Company's sales index and industrial production index ▮ Changes in the Company's sales index and industrial production index TRUSCO sales index Industrial production index 2015 2016 2017 2018 2019 2020 2021 (Consolidated) (Consolidated) (Consolidated) * Index standard: Year 2015 set as 100