Takashima & Co., Ltd. · TSE:8007

Takashima & — Q2 FY2022 Earnings Presentation

56 slides from Takashima &'s earnings presentation, Dec 1, 2022

1. Slide 1: FY22 Second Quarter Financial Briefing and Next Medium-term Management Plan

   Notice: This document is translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Fiscal Year Ending March 31, 2023(FY22) Second Quarter Financial B

2. Slide 2: Contents

   Contents 1| FY22 2Q Financial Highlights 2| FY22 Full-year Consolidated Performance Forecast 3| Shareholder Return 4| Topics Next Medium-term Management Plan 5| “Sustainability V(Value)” Basic Policy Copyright©2022 Takashima & Co., Ltd. All Rights Reserved. 2

3. Slide 3: 1. FY22 2Q Financial Highlights

   1. FY22 2Q Financial Highlights Copyright©2022 Takashima & Co., Ltd. All Rights Reserved.

4. Slide 4: Executive Summary

   Executive Summary Net sales increased from the same period of the previous year due to strong FY22 2Q performance of the Electronics & Devices segment. Performance Profits were lower than in the same period of the previous year due to an Highlight increase in selling, general and administrative expe

5. Slide 5: Consolidated Performance: P/L

   Consolidated Performance: P/L ✓ Net sales increased from the same period of the previous year due to strong performance of the Electronics & Devices segment. Profits were lower than in the same period of the previous year due to an increase in selling, general and administrative expenses, resulting

6. Slide 6: Consolidated Performance: P/L Sales & Operating Profit Transition

   Consolidated Performance: P/L Sales & Operating Profit Transition (Unit: Millions of yen) 100,000 89,557 88,799 90,000 85,310 4Q 80,625 82,000 3Q 80,000 22,404 21,688 74,054 2Q 21,385 70,000 20,113 1Q 17,542 60,000 24,059 22,930 21,957 50,000 20,845 18,759 (Unit: Millions of yen) 40,000 1,800 2,000

7. Slide 7: Consolidated Performance: B/S

   Consolidated Performance: B/S The end of FY21 The end of FY22 2Q (Mar. 31, 2022) （Sep. 30, 2022） Total assets：¥45,176M ＋¥4,992M Total assets： ¥50,169M Equity ratio：40.9％ (3.2pts) Equity ratio：37.7％ (Unit: Millions of yen) (Unit: Millions of yen) Current liability Current liability 25,653 21,024 Curr

8. Slide 8: Consolidated Performance: B/S (detailed)

   Consolidated Performance: B/S(detailed) Unit: Millions of yen Amount Ratio FY21 FY22 2Q of of Main reasons of change change(YoY) Change(YoY) Total Assets 45,176 50,169 +4,992 +11.1% Cash and deposits ¥(1,157)M、 Total current assets 35,423 40,160 +4,736 +13.4％ Notes and accounts receivable – trade, a

9. Slide 9: Consolidated Performance: C/F

   Consolidated Performance: C/F Cash flows from operating activities：Increase in trade payables ¥3,841M, Increase in trade receivables ¥(3,887)M Cash flows from investing activities ：Purchase of property, plant and equipment¥(316)M、 Purchase of intangible assets ¥(152)M Cash flows from financing activ

10. Slide 10: Performance of Each Segment

    Performance of Each Segment Copyright©2022 Takashima & Co., Ltd. All Rights Reserved.

11. Slide 11: Net Sales Configuration by Segment

    Net Sales Configuration by Segment FY22 2Q Net Sales ¥38,817M 56.0 22.1 21.7 0.3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Construction Supply Industrial Materials Electronic Devices Other Construction Supply Segment Industrial Material Segment Electronic Device Segment This segment handles a vari

12. Slide 12: Briefing by Segment: Construction Supply

    Briefing by Segment: Construction Supply(Net sales, Segment Operating Profit/Loss) (Unit: Millions of yen Net Sales 50,000 50,000 42,020 40,000 40,000 32,908 30,000 30,000 21,906 21,748 20,000 20,000 10,360 9,562 ¥21,748M Net 10,000 10,000 Sales 0 FY21 1Q FY21 2Q FY21 3Q FY21 4Q FY22 1Q FY22 2Q 0 Ye

13. Slide 13: Briefing by Segment: Construction Supply -Business Field-

    Briefing by Segment: Construction Supply -Business Field- ➢ In the construction materials field, sales declined slightly due to a temporary interval between orders for large projects such as ground improvement work. ➢ Energy solution field remained sluggish due to supply delays of solar panels and p

14. Slide 14: Briefing by Segment: Industrial Materials

    Briefing by Segment: Industrial Materials(Net sales, Segment Operating Profit/Loss) (Unit: Millions of yen) Net Sales 20,000 18,116 20,000 15,000 13,536 15,000 9,077 10,000 8,561 10,000 5,000 4,373 4,099 5,000 Net Sales ¥8,561M Year-on-Year(5.7)％ 0 0 FY21 1Q FY21 2Q FY21 3Q FY21 4Q FY22 1Q FY22 2Q P

15. Slide 15: Briefing by Segment: Industrial Material -Business Field-

    Briefing by Segment: Industrial Material -Business Field- ➢ In the plastic field, the automotive market remained sluggish due to the impact of the shortage of semiconductors ➢ In the textile field, market stagnated due to price increases and weak demand ➢ Sales and profit decreased due to an increas

16. Slide 16: Briefing by Segment: Electronic Devices

    Briefing by Segment: Electronic Devices(Net sales, Segment Operating Profit/Loss) (Unit: Millions of yen) Net Sales 16,000 14,000 13,724 12,000 9,922 10,000 8,410 8,000 6,672 6,000 ¥8,410M 3,302 3,963 4,000 Net Sales 2,000 Year-on-Year +26.0％ 0 FY21 1Q FY21 2Q FY21 3Q FY21 4Q FY22 1Q FY22 2Q (Unit:

17. Slide 17: Briefing by Segment: Electronic Devices by Area

    Briefing by Segment: Electronic Devices(Net sales, Segment Operating Profit/Loss) ➢ In the electronics-related field, both consumer electronics and white goods, our core markets, slowed year-on-year, but we were able to increased new orders, resulting in higher sales and profits. (Unit: Millions of

18. Slide 18: Real Estate Leasing Segment

    Real Estate Leasing Segment ➢ No change in real estate owned by the Company from the previous period, and both net sales and segment profit remained unchanged. (Unit: Millions of yen) 250 Net Sales 192 200 144 150 96 97 Net Sales 100 ¥97M 48 49 50 Year-on-Year +1.1％ 0 FY21 1Q FY21 2Q FY21 3Q FY21 4Q

19. Slide 19: FY22 2Q Segment Performance Overview

    FY22 2Q Segment Performance Overview (Unit: Millions of yen) FY21 2Q FY22 2Q Year-on-Year Progress Full-Year against full- Net Sales Net sales Amount of Ratio of Forecast year Result Result forecast ratio ratio change change Net sales - 38,817 - 1,064 2.8% 82,000 47.3% Construction Supply 21,906 58.

20. Slide 20: 2. FY22 Full-year Consolidated Performance Forecast

    2. FY22 Full-year Consolidated Performance Forecast Copyright©2022 Takashima & Co., Ltd. All Rights Reserved.

21. Slide 21: FY22 Consolidated Full-year Forecast (Not changed)

    FY22 Consolidated Full-year Forecast(Not changed) -Forecast of net sales is ¥82,000M, increased 10.7% YoY -Forecast of profit attributable to owners of parent is ¥1,400M (Unit: Millions of yen) FY22 FY21 Year-on-Year (Forecast) Net sales Net sales Amount of Ratio of Amount Amount ratio ratio change

22. Slide 22: FY22 Consolidated Full-year Forecast by Segment (Not changed)

    FY22 Consolidated Full-year Forecast by Segment (Not changed) (Unit: Millions of yen) FY21 FY22 Year-on-Year Net sales Net sales Amount of Ratio of Result Plan ratio ratio change change Net sales 74,054 - 82,000 - +7,945 +10.7% Construction Supply 42,020 56.7% 48,200 58.8% +6,179 +14.7% Industrial M

23. Slide 23: 3. Shareholder Return

    3. Shareholder Return Copyright©2022 Takashima & Co., Ltd. All Rights Reserved.

24. Slide 24: Shareholder Return Measures

    Shareholder Return Measures Basic Policy Consolidated dividend payout ratio of 40% or more - Total return ratio of 50% Lower limit of total return amount: 500 million yen We expect ¥140 dividends (Year-end ¥70) Increase ¥10 from FY21 FY22 Acquisition of treasury stock for ¥100M (disclosed on 11/14)

25. Slide 25: 4. Topics

    4. Topics Copyright©2022 Takashima & Co., Ltd. All Rights Reserved.

26. Slide 26: Topics: Implementation of two M&A and acquisition of treasury stock

    Topics：Implementation of two M&A and acquisition of treasury stock (Disclosed at Nov. 14, 2022) - Notice of Acquisition of Shares of “New Energy Distribution System Inc.” to Make it a Subsidiary - One of the nation's leading renewable energy-related construction and installation companies with a nat

27. Slide 27: Inquiries on this document

    Inquiries on this document IR and PR Unit, Takashima & Co., Ltd. ir@ta.tak.co.jp URL https://www.tak.co.jp/en/ir/contact1.html ■ Handling of this document [Precautions regarding forecasts] The data and predictions for the future disclosed in this document are based on judgments as of the release dat

28. Slide 28: Next Medium-Term Management Plan Basic Policy

    Notice: This document is translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Next Medium-Term Management Plan Basic Policy Nov. 14, 2022 Takash

29. Slide 29: Outline

    Outline 1．Progress of Current Medium-Term Management Plan “Sustainability X(Cross)” (Fiscal year Ended Mar. 2021(FY20) to Fiscal Year Ending Mar.2023) 2．Summary of “A Plan to Meet” and Direction of Next Medium-Term Management Plan. 3．Next Medium-Term Management Plan “Sustainability V(Value)” (Fiscal

30. Slide 30: 1. Progress of Current Medium-Term Management Plan Sustainability X

    1．Progress of Current Medium-Term Management Plan “Sustainability X(Cross)” (Fiscal year Ended Mar. 2021 to Fiscal Year Ending Mar.2023) Copyright © 2022 Takashima & Co.,Ltd. All Rights Reserved.

31. Slide 31: Current Medium-Term Plan: Basic Strategy of Sustainability X

    1．Current Medium-Term Management Plan “Sustainability X” 1-1 Basic Strategy of “Sustainability X” - To contribute to the creation of a sustainable society, we would specialize, concentrate and improve on providing solutions in the areas of energy-saving, weight-saving, and labor-saving. 《Strategic F

32. Slide 32: Recognition of the Current Circumstances Around Us

    1．Current Medium-Term Management Plan “Sustainability X” 1-2 Recognition of the Current Circumstances Around Us - Due to energy-related issues, renewable energy and zero-emission related technologies are becoming increasingly popular in various sectors. Megatrends Around Us Expansion of Current Chan

33. Slide 33: Market Opportunities & Growth Topics

    1． Current Medium-Term Management Plan “Sustainability X” 1-3. Market Opportunities & Growth Topics Industry change Our Opportunities - Accelerate approach to markets with long-term growth potential Energy creation Spreading ZEB Energy savings Energy storage Energy Solution Insulation and ZEH Growth

34. Slide 34: Progress of Sustainability X

    1． Current Medium-Term Management Plan “Sustainability X” 1-4. Progress of Sustainability X - We almost achieved the goal of Sustainability X, net profit ¥1.3 Bn, one year ahead of schedule. Our net profit was ¥1.29 Bn at FY21. - Each business is promoting business development with an awareness of g

35. Slide 35: 2. Summary of A Plan to Meet and Direction of Next Plan

    2．Summary of “A Plan to Meet” and Direction of Next Medium-Term Management Plan. Copyright © 2022 Takashima & Co.,Ltd. All Rights Reserved.

36. Slide 36: Status of A Plan to Meet the Criteria

    2-1. Status of “A Plan to Meet the Criteria” - We make steady progress in meeting the continued-listing criteria of Tokyo Sock Exchange prime market. Sustainability X “A plan to meet” Management index FY2020 FY2021 FY2022 FY2025 Net Profit ¥1,000M ¥1,296M ¥1,400M ¥1,500M Management index Forecast RO

37. Slide 37: Basic Initiative Policy at A Plan to Meet

    2-2. Basic Initiative Policy at “A Plan to Meet”. - The next medium-term management plan will be based on the five basic policies agreed to in “A Plan to Meet the Continued Listing Criteria of Tokyo Stock Exchange (TSE) Prime Market”, and will clearly define growth strategies, including growth inves

38. Slide 38: 3. Next Medium-term Management Plan Sustainability V

    3．Next Medium-term Management Plan Sustainability V (Value) （Fiscal Year Ending Mar. 2024 to Fiscal Year Ending Mar. 2026) Copyright © 2022 Takashima & Co.,Ltd. All Rights Reserved.

39. Slide 39: Basic Policy

    3．Next Medium-term Management Plan “Sustainability V” 3-1. Basic Policy - “Sustainability V” will simultaneously achieve adaptation to a sustainable society and sustainable growth through value creation strategies that capture growth opportunities in a changing market toward "Achieving a Carbon Neut

40. Slide 40: Basic Policy: Improvement of Corporate Value

    3．Next Medium-term Management Plan “Sustainability V” 3-2. Basic Policy - We aim to increase corporate value by achieving profit growth and capital productivity improvement ◼ Pursuing a strategy of providing multiple values by seizing growth opportunities Improvement in the market and gradually impr

41. Slide 41: Management Indicators and Financial Policies

    3．Next Medium-term Management Plan “Sustainability V” 3-3. Management Indicators and Financial Policies - We set management indicators and financial policies that focus on growth. - We aim to achieve net income of ¥1.7 billion in the final year of the plan (fiscal year ending March 2026). Growth Inv

42. Slide 42: Strategic Domain (Business Portfolio Management)

    3．Next Medium-term Management Plan “Sustainability V” 3-4. Strategic Domain (Business Portfolio Management) - We will seek to increase profitability by providing growth and added value based on market growth opportunities. To this end, we have established strategic areas based on sales growth rate (

43. Slide 43: Growth Strategy - Construction Supply Segment 1/2

    3．Next Medium-term Management Plan “Sustainability V” 3-5. Growth Strategy –Construction Supply Segment- 1/2 Segment FY22 Plan FY25 Plan Net sales ¥48.2Bn ¥60Bn Actively Expanding Business Building materials and construction methods of manufacturers with product advantages Non- Large distribution Ho

44. Slide 44: Growth Strategy - Construction Supply Segment 2/2

    3．Next Medium-term Management Plan “Sustainability V” 3-5. Growth Strategy -Construction Supply Segment- 2/2 Segment FY22 Plan FY25 Plan Net sales ¥48.2Bn ¥60Bn Future-looking Business Scenario Non- Solar power generation for Industry household self-consumption Our construction Installation of Facto

45. Slide 45: Growth Strategy - Industrial Material Segment

    3．Next Medium-term Management Plan “Sustainability V” 3-6. Growth Strategy -Industrial Material Segment- Segment FY22 Plan FY25 Plan Net sales ¥19.4Bn ¥20Bn Actively Expanding Business Growth Market Mobility EV-related logistic items EV Expand end-direct to our customer, by Expand sales of EV- ＋ uti

46. Slide 46: Growth Strategy - Electronic Devices Segment

    3．Next medium-term Management plan “Sustainability V” 3-7. Growth Strategy Electronic Devices Segment Segment FY22 Plan FY25 Plan Estimated Exchange Rate during Net sales ¥14.2Bn ¥20Bn ( planning period $1=¥140 ) Actively Expanding Business Global parts supply iTak Group sales to Sales (consumer ele

47. Slide 47: Investment Strategy

    3．Next medium-term Management Plan “Sustainability V” 3-8. Investment Strategy - Since the progress of the strategic investment line set forth in “the Plan to meet” is on track, the investment quota will be increased to 10 billion yen or more in total, and investments in strategic areas and human re

48. Slide 48: Appendix: Progress Report on Plan to Meet Listing Criteria

    Appendix. Progress Report Based on A Plan to Meet the Continued Listing Criteria of Tokyo Stock Exchange (TSE) Prime Market (disclosed at May 11, 2022) Excerpt Copyright © 2022 Takashima & Co.,Ltd. All Rights Reserved.

49. Slide 49: Summary: Implementation Status and Evaluation

    Excerpt from Progress Report , disclosed at May 11,2022 Summary: Implementation Status and Evaluation Steady progress is being made based on a plan to meet the continued listing criteria of Tokyo Stock Exchange(TSE) Prime Market until End of FY2025(March 2026) and we have determined that it is not n

50. Slide 50: Positive Cycle caused by Disclosure of the Plan

    Excerpt from Progress Report , disclosed at May 11,2022 2-1. Positive Cycle caused by Disclosure of the Plan - We have enthusiastically hammered out a transition from solid management to becoming a company that achieves sustainable growth considering strategic investments in the plan to meet the cri

51. Slide 51: Evaluation in the Stock Market

    Excerpt from Progress Report , disclosed at May 11,2022 2-3. Evaluation in the Stock Market - Since disclosing the plan to meet the criteria, our capital allocation policy and measures to enrich shareholder returns have been praised, resulting in a recovering trend in our stock prices. - As for the

52. Slide 52: Changes in Tradable Market Capitalization

    Excerpt from Progress Report , disclosed at May 11,2022 2-4. Changes in Tradable Market Capitalization - The stock price rose and the tradable share ratio improved slightly, resulting in improvements to the tradable market capitalization. - In addition to sustainable growth and efforts to establish

53. Slide 53: Changes in Trading Value

    Excerpt from Progress Report , disclosed at May 11,2022 2-5. Changes in Trading Value - Although the base date trading value did not meet the continued listing criteria, since the plan to meet the criteria was disclosed, the monthly average trading value has remained above the criteria, and figures

54. Slide 54: Basic Initiative Policy

    Excerpt from Progress Report , disclosed at May 11,2022 2-6. Basic Initiative Policy - The plan to meet the criteria enacted five basic initiative policies to achieve the tradable share market capitalization and trading value requirements. Basic initiative policy for improving tradable share market

55. Slide 55: Evaluation considering implementation status

    Excerpt from Progress Report , disclosed at May 11,2022 2-8. Evaluation considering implementation status - Because of steadily carrying out the items stipulated in the plan to meet criteria, the tradable share ratio, stock price, and trading value are on an upward trend in regard to the tradable sh

56. Slide 56: Inquiries on this document

    Inquiries on this document IR and PR Unit, Takashima & Co., Ltd. ir@ta.tak.co.jp URL https://www.tak.co.jp/en/ir/contact1.html ■ Handling of this document [Precautions regarding forecasts] The data and predictions for the future disclosed in this document are based on judgments as of the release dat

Takashima & — Q2 FY2022 Earnings Presentation on 6ix