Takashima & Co., Ltd. · TSE:8007
Takashima & — FY2023 Earnings Presentation
35 slides from Takashima &'s earnings presentation, May 24, 2024
Slide 1: Fiscal Year Ended March 31, 2024 (FY23) Financial Briefing
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 Ended March 31, 2024(FY23) Financial Briefing Takashim
Slide 2: Contents
Contents 1| FY23 Financial Highlights 2| FY24 Consolidated Financial Forecast 3| Shareholder Return 4| Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market and Progress of Our Medium-term Management Plan “Sustainability V(Value)” 5| Progress of Measures to
Slide 3: Introduction - Our Current Situation
Introduction - Our Current Situation ➢ For us, this year is the third year of our plan to meet the criteria for maintaining our listing in the new market classification (A Plan to Meet the Criteria), in which we decided to change the direction of our business from solid management to sustainable gro
Slide 4: 1. FY23 Financial Highlights
1. FY23 Financial Highlights ©2024 Takashima & Co., Ltd.
Slide 5: Executive Summary
Executive Summary ➢ Slight decrease in operating profit, but extraordinary gains on sales of fixed assets and other items resulted in an increase in both sales and profit. Profit attributable to owners of Net Sales Operation Profit Ordinary Profit parent ¥90,120M ¥1,748M ¥2,004M ¥4,832M YoY +13.1% Y
Slide 6: Consolidated Performance P/L
Consolidated Performance P/L ✓ Net sales increased 13.1% year on year to 90,120 million yen due to strong performance in the Construction Supply and Industrial Materials segments, despite lower sales and profits in the Electronics Devices segment. ✓ Operating profit decreased 0.9% YoY to 1,748 milli
Slide 7: 4Q (January-March) Results
4Q (January-March) Results ✓ Overall 4Q sales increased 21% YoY to 23,704 million yen, while operating profit declined 93% YoY to 55 million yen. ✓ The decrease in operating profit in the 4Q was mainly due to the following factors 1) Revised amortization of goodwill of Gansui Corporation due to impl
Slide 8: Transition of EBITDA
Transition of EBITDA ✓ Our EBITDA (operating profit basis)* has increased for three consecutive years ✓ We believe that our earning power is steadily increasing. Transition of EBITDA Unit: Millions of yen 3,500 3,180 3,000 496 2,500 2,355 1,963 846 2,000 539 391 51 89 1,500 24 1,000 1,764 1,748 1,54
Slide 9: Consolidated Performance: B/S
Consolidated Performance: B/S The end of FY22 The end of FY23 （March 31, 2023） （March 31, 2024） +7,349M Total assets:¥53,060M Total assets: ¥60,409M Equity ratio: 36.8% +2.2pt Equity ratio:39.0% （Unit :Millions of yen） （Unit :Millions of yen） Current liability Current assets 32,349 Current liability
Slide 10: Consolidated Performance B/S: Assets
Consolidated Performance B/S （Unit: Million of yen） FY22 FY23 Amount of change Ratio of change Assets Current assets Cash and deposits 7,791 12,371 4,579 58.8% Notes and accounts receivable - trade, and Main factors of change 26,260 23,438 (2,821) (10.7)% Electronically recorded monetary claims - op
Slide 11: Consolidated Performance B/S: Liabilities and Net Assets
Consolidated Performance B/S （Unit: Millions of yen） FY22 FY23 Amount of change Ratio of change Liabilities Current liabilities Notes and accounts payable trade 15,277 16,647 1,369 9.0% Electronically recorded obligations – operating 5,735 5,585 (149) (2.6)% Short-term borrowings 3,210 1,341 (1,868)
Slide 12: Consolidated Performance: C/F
Consolidated Performance: C/F （Unit：Millions of change） FY22 FY23 Amount of change Cash flows from operating activities Profit before income taxes 2,216 7,314 5,097 Depreciation 539 846 306 Amortization of goodwill － 496 496 Loss (gain) on sale of investment securities (276) (614) (338) Decrease (in
Slide 13: Net sales configuration by segment
Net sales configuration by segment FY23 Net sales ¥90,120M 64.4 19.0 16.4 0.2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Construction Supply Industrial Materials Electronic Devices Other Construction Supply Segment Industrial Materials segment Electronic Devices Segment The company handles a variet
Slide 14: Briefing by Segment: Construction Supply
Briefing by Segment: Construction Supply ✓ Overall sales in the Construction Supply segment increased 26.1% to 58,010 million yen ✓ Segment operating profit increased 98.7% to 844 million yen (Unit: Millions of yen) Segment net sales Amount of 70,000 FY22 FY23 YoY change 60,000 Construction 50,000 M
Slide 15: Briefing by Segment: Industrial Materials
Briefing by Segment: Industrial Materials ✓ Overall sales in the Industrial Materials segment increased 6.1% to ¥17,173M ✓ Segment profit increased 102.2% to ¥425M (Unit: Millions of yen) Segment net sales 20,000 Amount of FY22 FY23 YoY Plastic-related change 15,000 9,150 materials 7,810 Plastic-rel
Slide 16: Briefing by Segment: Electronic Devices
Briefing by Segment: Electronic Devices ✓ Overall sales in the Electronic Devices and Components segment declined 14.6% to ¥14,776M ✓ Segment profit decreased 62.1% to 384 million yen (Unit: Millions of yen) Segment net sales Amount of 20,000 FY22 FY23 YoY change 15,000 8,036 Device 8,036 6,134 (1,9
Slide 17: Briefing by Segment: Real Estate Leasing
Briefing by Segment: Real Estate Leasing ✓ Sold fixed assets held as a hotel ✓ Sales declined 17.8% to 159 million yen and segment income declined 17.7% to 94 million yen Segment Net Sales (Unit: Millions of yen) Amount of 250 FY22 FY23 YoY 200 change 150 100 193 159 Segment net sales 193 159 (34) (
Slide 18: 2. FY24 Full-year Consolidated Performance Forecast
2. FY24 Full-year Consolidated Performance Forecast ©2024 Takashima & Co., Ltd.
Slide 19: FY24 Full-year Consolidated Performance Forecast
FY24 Full-year Consolidated Performance Forecast （Unit: Millions of yen） FY24 FY23 Amount of change YoY Forecast Net sales 90,120 94,000 3,879 4.3% Operating profit 1,748 2,000 251 14.4% Operating profit margin 1.9% 2.1% 0.2pt - Ordinary profit 2,004 2,000 (4) (0.2)% Profit attributable to 4,832 1,6
Slide 20: Segment Change
Segment Change ✓ The disclosure segments will be changed due to a review of asset allocation and the reorganization of the Industrial Materials business. ✓ Corporate costs, which were previously allocated to each segment, have been made independent as corporate expenses to better clarify the profit
Slide 21: FY24 Consolidated Forecasts by Segment
FY24 Consolidated Forecasts by Segment Net sales (Unit: Millions of yen) FY23 (reference) FY24 Results after new segment Amount of change YoY reclassification Forecast Construction Supply 58,180 59,700 1,519 2.6% Industrial Materials 17,195 17,600 404 2.4% Electronic Devices 14,795 16,700 1,904 12.9
Slide 22: 3. Shareholder Return
3.Shareholder Return ©2024 Takashima & Co., Ltd.
Slide 23: Shareholder Return
Shareholder Return - Proactive shareholder returns for the period from FY23 to FY25 in accordance with the basic policy in the conformity plan document Consolidated dividend payout ratio of 40% or more - Total return ratio of 50% Basic Policy Lower limit of total return amount: 500 million yen - The
Slide 24: 4. Transition to Meet the Continued-listing Criteria for Prime Market & Progress of Sustainability V
4. Transition to Meet the Continued-listing Criteria for Prime Market & Progress of the Medium-term Management Plan, Sustainability V (Value) ©2024 Takashima & Co., Ltd.
Slide 25: Our Goals
Our Goals “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 Neutral Society (2050)". 2050 Achieving a Carbon Neutral Society Sus
Slide 26: Sustainability V Management Indicators and Financial Policies
Sustainability V(Value) Management Indicators and Financial Policies - We set management indicators and financial policies that focus on growth. - We aim to achieve profit attributable to owners of parent of ¥1.9 billion in the final year of the plan (fiscal year ending March 31, 2026). Growth Inves
Slide 27: Progress of Sustainability V (Value)
Progress of Sustainability V(Value) Basic Policy Progress ◼ Pursuing a strategy of providing multiple values by seizing growth ◼ Sustainable growth of existing businesses and Improvement opportunities in the market and gradually improving profit margins over raising of profit base of the medium- to
Slide 28: Progress of Investment Quota
Progress of Investment Quota - The Company has already invested ¥9.8 billion yen through the end of fiscal year ended March, 2024, out of a total investment quota that has been increased to over 150 billion yen. - Investments with investment returns will continue to be made. Result (FY21 – FY23) ¥7.
Slide 29: Share price and tradable market capitalization over the past year
Share price and tradable market capitalization, etc. over the past year （Yen） Share price Stock Price 120.0% 1,700 Record high for the year ¥1,470 100.0% 1,500 (March 1, 2024) 80.0% 1,300 +74.6％ ¥1,276 60.0% Tradable market 1,100 capitalization Tradable market ¥8.24Bn capitalization 40.0% (March 31,
Slide 30: Compliance for Continued-listing Criteria
Compliance for Continued-listing Criteria Tradable market Tradable shares Tradable share ratio Average daily trading value capitalization As of June 30, 2021*1 27,185 units ¥4.79Bn 59.7％ ¥6.83M Transition As of March 31, 2022*2 ¥12.06M 27,058 units ¥6.34Bn 60.1％ of our (December 31, 2021) complianc
Slide 31: 5. Progress of Measures to Achieve Management Conscious of Cost of Capital and Stock Price
5.Progress of Measures to Achieve Management Conscious of Cost of Capital and Stock Price ©2024 Takashima & Co., Ltd.
Slide 32: Introduction
Introduction - In a plan to meet the criteria, we has set capital efficiency targets for the fiscal year ending March 31, 2026, and has also indicated its policy for capital efficiency and growth-oriented investments based on its capital allocation policy, as well as its policy for increasing shareh
Slide 33: Current Status
Current Status - ROE at the end of the fiscal year ended March 31, 2024 increased by 14.1 pt to 22.4% from the previous year due to the increase in profit attributable to owners of parent, which exceeded the cost of equity. - P/B ratio of 0.94x at the end of the fiscal year ended March 31, 2024 - We
Slide 34: Policies and goals for improvement; specific measures
(1) Policies and goals for improvement (2) Specific measures for improvement • Achieve ROE target of 8.0% or more and ROIC target of 6.0% or more in the final year of the (1) medium-term management plan (fiscal year ending March 31, 2026) Policies and goals for • Steadily implement initiatives based
Slide 35: 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