Takamiya Co., Ltd. · TSE:2445
Takamiya — SRG Takamiya — FY2017 Earnings Presentation
40 slides from Takamiya's earnings presentation, May 17, 2017
Slide 1: Results Briefing Materials for the Fiscal Year Ended March 31, 2017
SRG TAKAMIYA CO., LTD. Results Briefing Materials for the Fiscal Year Ended March 31, 2017 ー 2017.5.17 ー 1
Slide 2: Company Overview of SRG TAKAMIYA CO., LTD.
Company Overview of SRG TAKAMIYA CO., LTD. Trade name SRG TAKAMIYA CO., LTD. Incorporation June 21, 1969 Representative President and representative director, Kazumasa Takamiya Capital 714,770,000 yen Number of employees Consolidated : 1,010; Non-consolidated : 452 (As of end-March, 2017) Registered
Slide 3: History
History • 1969 Jun. Founded as Shin Kansai Co., Ltd., currently SRG TAKAMIYA CO., LTD., in Osaka City. • 1990 Mar. Established Iwata Ltd. (currently IWATA Co., Ltd., a consolidated subsidiary) in Wakayama Prefecture. • 1994 Jul. Established Rental Nagakita Ltd. (currently SHINKEN NAGAKITA Co., Ltd.,
Slide 4: Business Diagram
Business Diagram Overseas Manufacture and sales of Manufacture and sales of Japanese and overseas manufacturers and manufacturers temporary equipment and materials Products emporary equipment and materials distributors of temporary equipment and materials, and distributors of general trading company
Slide 5: TOPICS - Hory Corporation is to be merged (merger will be in Jan., 2018)
TOPICS - Hory Corporation is to be merged (merger will be in Jan., 2018) • Mar. 2017: Announced "Notice Regarding Merger of a Consolidated Subsidiary (short form merger)" Hory Corporation, that had become a fully-owned subsidiary of the Company in Sep., 2010, engaged in development/manufacture of te
Slide 6: Consolidated Financial Results (Cumulative Period)
Consolidated Financial Results (Cumulative Period) FY Ending March 31, 2017 Consolidated FY Ending March 31, 2017 Forecast FY Ending March 31, 2017 FY Ending March 31, 2016 % Forecast Results Results Results （Revised Apr. 25, 2017） change (YoY) （Unit：million yen） Sales ratio Sales ratio Sales ratio
Slide 7: Factors which caused net sales being less than as planned at the beginning of the period
Factors which caused net sales being less than as planned at the beginning of the period （Unit：billion yen） 【Rental business】 • Actual performance was almost as planned. 400 Although equipment utilization rate reached the highest level to date, some of the regional 390 38.8 (0.1) ±0 (2.3) subsidiari
Slide 8: Factors which caused operating income being less than as planned at the beginning of the period
Factors which caused operating income being less than as planned at the beginning of the period （Unit：billion yen） 【Rental business】 Increased burden of depreciation due to investment 40.0 in new-type equipment is one factor. Low price strategy aiming at expanded use of next-generation scaffolding c
Slide 9: Change in Consolidated Balance Sheet
Change in Consolidated Balance Sheet Investments and other assets Intangible assets Property, plant and equipment Current assets 【Assets】 Net assets Non-current liabilities Current liabilities Current assets (Unit : million yen) 52,760 50,091 Increase in Cash & Deposit : 945 million yen Decrease in
Slide 10: Statement of Cash Flows
Statement of Cash Flows The Company accounts for "expenditure on acquisition of leased assets" in operating CF. （Unit : million yen） Increases in income before income taxes and minority interests FY Ended March 31, FY Ended March 31, and in depreciation exceeded increases in purchase of assets for 2
Slide 11: Revised business segment
Revised business segment Before revision After revision Rental business Rental business • SRG TAKAMIYA • SRG TAKAMIYA • IWATA • IWATA Rental division Rental division • TATSUMI • TATSUMI • SN Builtech • TOTAL TOSHISEIBI • SN Builtech • TOTAL TOSHISEIBI • AOMORI ATOM • NEXTECH • AOMORI ATOM • NEXTECH
Slide 12: Rental Business (Per Quarter)
Rental Business (Per Quarter) Fiscal Year Ended March 31, 2016 Fiscal Year Ended March 31, 2017 Segment sales （Unit：million yen） Segment profit Segment profit resio 6,173 5,440 5,449 5,538 5,490 5,134 5,011 4,489 14.5% 15.8% 15.5% 5.8% 12.3% 13.3% 7.5% 7.1% 747 859 843 678 823 262 377 388 % change (
Slide 13: Rental Business: Change in Shipment Value of Rental Equipment
Rental Business : Change in Shipment Value of Rental Equipment Iq System took the lead, and equipment utilization maintained high level. Shipment for civil engineering increased as compared to the previous FY. Shipment value of Shipment value of rental equipment rental equipment (Apr.) Great East Ja
Slide 14: Rental Business: Ratio of Sales by Area
Rental Business: Ratio of Sales by Area FY Ended March 31, 2016 FY Ended March 31, 2017 3.4% 3.6% 14.9% 12.5% Tohoku 35.0% Kanto 32.9% Chubu Kansai 40.4% 38.4% Kyusyu 10.6 8.4% % 【Example of sites with orders received】 Renovation of a power plant Renovation of a public housing Renovation of a high-r
Slide 15: Rental business: Changes in number of sites with rental orders / value of holdings
Rental business: Changes in number of sites with rental orders / value of holdings the Iq System Investment in assets for rent proceeded generally as planned, whereas number of sites with rental orders could not reach the planned goal. number of sites with rental orders In spite of increased quantit
Slide 16: Sales business (Per Quarter)
Sales business (Per Quarter) Fiscal Year Ended March, 2016 Fiscal Year Ended March 31, 2017 Segment sales (Unit : million yen) Segment profit Segment profit resio 4,611 4,011 3,957 4,148 4,185 4,040 14.3% 3,747 3,652 17.3% 15.8% 9.0% 8.5% 6.8% 12.9% 10.6% 564 386 729 541 700 359 255 351 % change (Yo
Slide 17: Sales business: Net Sales by Field
Sales business : Net Sales by Field (Unit : million yen) 1,354 1,842 11,767 2,012 1,599 10,899 1,069 1,812 453 2,953 324 2,689 672 406 463 4Q 228 502 2,881 344 286 2,689 428 515 3Q 288 2Q 2,539 3,336 392 473 406 553 551 319 1Q 2,982 2,597 294 234 438 485 297 336 FY Ended March FY Ended March FY Ende
Slide 18: Sales business: Recent prevalence of the Iq System
Sales business : Recent prevalence of the Iq System Large scale order-taking in 4Q contributed to fulfilling the full-year plan. Planar dimension of usage also significantly increased to as much as "3.65 million m2" Recent prevalence of the Iq System (Unit : m2) Iq System accounts for about 5.0%* *
Slide 19: Overseas business (Per Quarter)
Overseas business ( Per Quarter) Fiscal Year Ended March, 2016 Fiscal Year Ended March, 2017 Segment sales (Unit : milliom yen) Segment profit Segment profit resio 1,333 1,263 1,142 1,161 1,169 1,006 930 997 5.5% 7.2% (2.5)% (3.2)% (4.5)% 2.1% (2.0)% (8.2)% 23 73 84 (2) (25) (76) (31) (56) % change
Slide 20: Overseas business
Overseas business Hory Korea Co., Ltd. Sales Ratio by Segment • Put its rental business management regime in place. • Temporarily suspended order-taking of solar-related business because of reconsidering contents of contracts. 9.8% • Strengthened its management regime to carry out transformation to
Slide 21: Review of "2014 Mid-term Business Plan"
Review of "2014 Mid-term Business Plan" 21
Slide 22: Achievements/issues based on the policies and priority measures
Achievements/issues based on the policies and priority measures 2014 Mid-term Business Plan Achievements/issues Integration of sales division and rental promotion division. To strengthen the Group's management ⇒ Integration of business places/bases, and merger of subsidiaries. 〇 base Increase in the
Slide 23: Achievements/issues based on the policies and priority measures
Achievements/issues based on the policies and priority measures 2014 Mid-term Business Plan Achievements/issues Departed from a conventional business model that aims at making profit from depreciated assets. Proactive reinvestment of profit ⇒ Reinvestment in highly utilized and efficient equipment 〇
Slide 24: Achievements of the 2014 Mid-term Business Plan
Achievements of the 2014 Mid-term Business Plan The performance plan (profit plan) that had been initially announced was revised downward, but nevertheless not fulfilled. However, various measures should be carried out and taken over to the next mid-term business plan. (Unit : million yen) Net sales
Slide 25: Reasons for unfulfilled goals and issues; points of measures
Reasons for unfulfilled goals and issues; points of measures Reasons for unfulfilled goals and issues Measures • Sales profit goals of subsidiaries were not • Reorganization of subsidiaries. fulfilled. • Increase in depreciation due to investment and • Burden of depreciation has passed a peak due to
Slide 26: Policies of the New Mid-term Business Plan (FY03/2018 ~ FY03/2020)
Policies of the New Mid-term Business Plan (FY03/2018 ~ FY03/2020) To strengthen the Group's management base Basic policies To establish highly profitable regime To strengthen development power, and to create highly value-added products (same as the former plan) and new growing businesses To reinfor
Slide 27: New products: Building materials (vibration-damping members)
New products: Building materials (vibration-damping members) for steel-framed buildings and warehouses for wooden houses Octo-brace WUTEC-SF This product is considered as a vibration-damping structural member which In connection with housing starts, this product was poorly performing in can be effec
Slide 28: Situations of new business fields/domains
Situations of new business fields/domains In FY03/2017, actual results were significantly lower than the initial plan. However, organizational/personnel regime was reconsidered during the transition period (FY03/2018), and order-taking activities are currently very active. Consequently, actual order
Slide 29: New Mid-term Business Plan (FY03/2018 ~ FY03/2020)
New Mid-term Business Plan (FY03/2018 ~ FY03/2020) (Unit : million yen) FY Ended March, 2018 FY Ended FY Ended March, 2Q Sales ratio 4Q Sales ratio March, 2019 2020 Net sales 18,280 － 38,300 － These are currently Operating income 900 4.9% 2,850 7.4% under close examination, and Ordinary income 770 4
Slide 30: Payment of Dividends
Payment of Dividends Fiscal Year Ending Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ending March 31, 2018 March 31, 2014 March 31, 2015 March 31, 2016 March 31, 2017 (Forecast) Dividend ¥13 ¥16 ¥10 ¥10 ¥11 1Q - - - - - 2Q ¥5 ¥7 ¥3.5 ¥3.5 ¥4.0 3Q - - - - - ¥9 4Q ¥8 * Ordinary di
Slide 31: Reference materials
Reference materials 31
Slide 32: Change in Domestic Construction Investment
Change in Domestic Construction Investment Source : The Ministry of Land, Infrastructure, Transport and Tourism Data release : July 2016 FY Ended March 31, 2016: Down 0.6% FY Ending March 31, 2017: Up 1.6% (Forecast) 51,298 51,240 50,950 51,770 45,291 43,292 12,948 14,160 14,960 15,310 Private non-h
Slide 33: Change in Domestic Construction Investment
Change in Domestic Construction Investment Focusing on the metropolitan area, private construction that is frequently used for scaffolding, renovation and renovation are expected to lead the way Government investment Private investment Renovation and renewal investment （Unit：billion yen） 35,000 30,0
Slide 34: Change in Overseas Market
Change in Overseas Market (Billion dollars) (Million people) 2010 2011 2012 2013 2014 2015 2016 Actual GDP 1,094 1,202 1,223 1,306 1,410 1,376 1,321 South Korea Population 49 50 50 50 50 51 51 Actual GDP 341 371 397 420 404 395 410 Thailand Population 67 68 68 68 69 69 69 Actual GDP 113 135 156 171
Slide 35: Change in utilization rate of construction materials and equipment
Change in utilization rate of construction materials and equipment and in net sales of 50 companies in the scaffolding and construction materials leasing business (Unit: %) (Unit: million yen) Net sales Framework Scaffolding Falsework Members 80 25,000 70 20,000 60 50 15,000 40 10,000 30 20 5,000 10
Slide 36: Change in Consolidated Balance Sheet
Change in Consolidated Balance Sheet FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, (Unit: million yen) 2011 2012 2013 2014 2015 2016 Current assets 10.396 12,202 13,725 15,892 18,213 19,769 Non-current assets 19,198 20,269 20,262 21
Slide 37: Change in Consolidated Financial Results
Change in Consolidated Financial Results FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, (Unit: million yen) 2011 2012 2013 2014 2015 2016 Net sales 17,490 23,201 28,113 32,443 34,261 34,350 Gross Profit 5,981 7,202 8,196 9,832 10,356
Slide 38: Quarterly Change in Results by Segment (Cumulative Period)
Quarterly Change in Results by Segment (Cumulative Period) (Unit: million yen) Fiscal Year Ended March 31, 2016 Fiscal Year Ending March 31, 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4Q Rental Segment sales 4,489 9,623 15,064 20,513 5,011 10,549 16,723 22,213 business (Of which) Inter-segment sales 22 56 88 109 59
Slide 39: Quarterly Change in Results by Segment (Per Quarter)
Quarterly Change in Results by Segment (Per Quarter) (Unit: million yen) Fiscal Year Ended March 31, 2016 Fiscal Year Ending March 31, 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4Q Rental Segment sales 4,489 5,134 5,440 5,449 5,011 5,538 6,173 5,490 business (Of which) Inter-segment sales 22 34 31 20 59 128 49 78 Se
Slide 40: Contact IR
Contact IR Contact: Takashi Kawabata, PR / IR Division, SRG TAKAMIYA Co., Ltd. Phone: +81-(0)6-6375-3918 Fax: +81-(0)6-6375-8827 URL: https://www.srg.jp/en/index.html (English) https://www.srg.jp/en/ir/index.html (English) E-mail: ir@srg.jp Address: Grand Front Osaka, Tower B, 27F, 3-1 Oofuka-cho, K