Slide 1: FY2023 Financial Results
Tokyo Stock Exchange (Prime Market) Securities Code : 7438 FY2023 Financial Results May 12, 2023
Slide 2: Notes on forward-looking statements
Notes on forward-looking statements This document contains forward-looking statements and business plans. These statements were made based on economic environment and business policies at the time of the release. Actual results may differ materially from these forward-looking statements due to vario
Slide 3: Contents
Contents 1. Highlights of FY2023 Financial Results P. 4 2. Company Overview P. 7 3. Main Products and Merchandise P. 18 4. FY2023 Financial Results and Analysis P. 24 5. FY2023 Financial Results and Analysis by Segment P. 30 6. FY2024 Financial Forecast P. 40 7. Response to ESG Issues P. 43 8. Growt
Slide 4: 1. Highlights of FY2023 Financial Results
1. Highlights of FY2023 Financial Results
Slide 5: Summary of FY2023 Consolidated Financial Results
Summary of FY2023 Consolidated Financial Results Net sales increased due to sales contributions from KURIYAMA ALUMINUM (which became a subsidiary in October 2021) as well as a demand recovery in construction and price pass- through in response to rising material prices. Operating results increas
Slide 6: Topics in FY2023
Topics in FY2023 Change in Reporting Segments Acquisition of ISO14001 at Sapporo Factory As scaffolding construction business, one of important growth In July 2022 Sapporo Factory obtained ISO14001 for strategies in medium-term management plan, has become environmental management system. more of
Slide 7: 2. Company Overview
2. Company Overview
Slide 8: Performance Trends
Performance Trends Since establishment in 1953, we have not incurred an ordinary loss as a result of efforts to supply products and merchandise to various industries in response to changes of the times and customer needs. Acquired shares of KURIYAMA ALUMINUM and established Nippon Scaffolding Holdin
Slide 9: Company Overview
Company Overview Company name KONDOTEC INC. Sanwa Denzai Co., Ltd. KONDOTEC INTERNATIONAL (THAILAND) CO., LTD. Group companies CHUOH GIKEN Co., Ltd. Nippon Scaffolding Holdings Co., Ltd. TECBUILD CO., LTD. TOKAI STEP CO., LTD. FUKOKU, Ltd. KURIYAMA ALUMINUM Co., Ltd. (as of March 31, 2023) Establish
Slide 10: Company History and Business Areas
Company History and Business Areas Company history Business areas January 1953 Established Kondo Shoten Co., Ltd. January 1989 Changed the company name to KONDOTEC INC. Construction industry wholesale Listed on the Second Section of the Osaka Other than April 1995 Stock Exchange Field Categorization
Slide 11: Sales by Segment
Sales by Segment (as of end March 2023) Industrial Materials Structural Steel Materials Net sales Sales weighting Net sales Sales weighting 37,610 million yen 50 % 19,963 million yen 26 % Customers Hardware stores, Wholesalers, Home improvement centers Customers Steel structure fabricators Products/
Slide 12: Distribution Channels
Distribution Channels By offering in-house products with added value and sourcing products and merchandise from various suppliers, we have adopted a structure that allows it to meet the diversifying needs of customers. Manufacturer function (in-house production and OEM production) ◆ Suppliers Appr
Slide 13: Segment Overview: Industrial Materials
Segment Overview : Industrial Materials Business The Industrial Materials Segment manufactures, procures, and sells civil engineering and areas construction materials (primarily metal fittings through retail). By selling products and merchandise to a wide range of industries, the segment has built u
Slide 14: Segment Overview: Structural Steel Materials
Segment Overview : Structural Steel Materials Business The Structural Steel Materials Segment manufactures, procures, and sells construction-related areas materials to nationwide steel structure fabricators. High-margin business maintained through supply of high market share products with a high Str
Slide 15: Segment Overview: Electrical Equipment
Segment Overview : Electrical Equipment Business The Electrical Equipment Segment procures and sells electrical equipment to consumer electrical areas appliance stores and electrical construction contractors. The segment generates steady earnings through providing a wide range of merchandise from St
Slide 16: Segment Overview: Scaffolding Construction
Segment Overview : Scaffolding Construction Business The Scaffolding Construction Segment provides scaffolding construction services and procures, areas sells and rents out temporary scaffolding materials to building contractors and medium-sized general contractors Strengths The segment provides a w
Slide 17: Market Size for Main Products and Merchandise
Market Size for Main Products and Merchandise Market size for main products, merchandise and corresponding market shares (FY2022) Market overview and initiatives Estimated volume of steel frame demand Market overview JIS certification ('000 tons) The demand is gradually Turnbuckle braces 5,000 r
Slide 18: 3. Main Products and Merchandise
3. Main Products and Merchandise
Slide 19: Sales Fields
Sales Fields We supply roughly 50,000 products and merchandise to various industries in response to changes of the times and customer needs. Wind power generation Agriculture and horticulture Railroad and railroad bridge Agriculture and forestry Prefabricated Wooden construction construction Slope C
Slide 20: Turnbuckle Braces
Turnbuckle Braces Turnbuckle braces are connected cornerwise to prevent the collapse of buildings exposed to lateral pressure. Turnbuckle braces are used as seismic bracing products in prefabricated steel-frame houses and steel constructions such as shopping centers, factories and warehouses. Th
Slide 21: Anchor Bolts
Anchor Bolts Anchor bolts are important materials used to connect a building structure to a concrete foundation. Their main purpose is to prevent the building connected to the concrete foundation from tilting and falling over. After construction work Anchor bolts Anchor frame (Kon-base Eco) 20
Slide 22: Container Bags
Container Bags Container bags are used in a wide range of settings such as 1) transportation and storage of feedstuff, fertilizer, plastic pellets, and industrial waste; 2) rubble disposal and decontamination work; and 3) post-disaster reconstruction work (used as large sandbags). 21
Slide 23: Scaffolding Installation
Scaffolding Installation Our subsidiaries, TECBULID, TOKAI STEP, and FUKOKU handle assembly and disassembly of scaffolding is used for construction and repair of warehouses, detached homes and condominiums. Overpass repair Condominium construction 22
Slide 24: 4. FY2023 Financial Results and Analysis
4. FY2023 Financial Results and Analysis
Slide 25: FY2023 Consolidated Financial Results
FY2023 Consolidated Financial Results Vs. FY2022 (million yen) YoY FY2022 FY2023 Amount % Net sales 66,139 75,447 +9,308 +14.1% Gross profit 14,730 16,253 +1,522 +10.3% SG&A expenses 11,136 11,898 +762 +6.8% Operating income 3,594 4,355 +760 +21.2% Ordinary income 3,810 4,563 +753 +19.8% Profit attr
Slide 26: Operating Income Analysis (Consolidated)
Operating Income Analysis (Consolidated) Operating income analysis (million yen) Quarterly GPM Consolidated Parent △464 △640 33 1,833 The impact of 23.1% making KURIYAMA 4,355 22.9% 22.7% ALUMINUM 3,594 22.4% a subsidiary 22.5% 22.6% 21.9% 22.3% 21.7% 22.2% 21.6% 21.2% 21.8% FY2022 Net Sales Gross P
Slide 27: FY2023 Consolidated Financial Results vs. Forecast
FY2023 Consolidated Financial Results Vs. Forecast (million yen) Operating income analysis (million yen) FY2023 FY2023 Change Forecast Actual Amount % Net sales 70,000 75,447 +5,447 +7.8% △894 1,238 201 Gross profit 15,910 16,253 +343 +2.2% SG&A 12,100 11,898 △201 △1.7% expenses 4,355 Operating 3,81
Slide 28: Consolidated Balance Sheet [Assets]
Consolidated Balance Sheet [Assets] (million yen) FY2022 FY2023 Change Cash and deposits 10,164 10,733 +569 Notes and receivable-trade, 13,200 14,181 +981 and contract assets Current assets Electronically recorded 2,861 3,695 +833 monetary claims operating Inventories 7,183 8,132 +949 Other 1,225 65
Slide 29: Consolidated Balance Sheet [Liabilities and Net Assets]
Consolidated Balance Sheet [Liabilities and Net Assets] (million yen) FY2022 FY2023 Change Notes and accounts payable-trade 4,346 5,015 +669 Electronically recorded obligations-operations 9,114 9,738 +624 Current liabilities Breakdown Electronically recorded obligations–operations 10,762 11,439 +676
Slide 30: 5. FY2023 Financial Results and Analysis by Segment
5. FY2023 Financial Results and Analysis by Segment
Slide 31: FY2023 Financial Results by Segment
FY2023 Financial Results by Segment (million yen) Change Full-year FY2022 FY2023 Progress (%) forecast Net sales 33,861 37,610 +11.1% 36,303 +3.6% Industrial Materials Segment 1,995 2,352 +17.9% 2,473 △4.9% profit or loss EBITDA 2,188 2,628 +20.1% － － Net sales 16,098 19,963 +24.0% 16,949 +17.8% Str
Slide 32: Industrial Materials
Industrial Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 10,075 37,610 9,655 YoY 9,237 9,288 8,692 8,591 33,861 +11.1% 8,104 7,826 698 2,352 YoY 573 574 1,995 531 538 539 +17.9% 430 459 FY2022 FY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2022 FY2
Slide 33: Industrial Materials: Profit Analysis
Industrial Materials Segment profit or loss analysis (million yen) Quarterly GPM 33.1% manufactured △136 27.2% 26.3% 24.8% 55 24.0% 24.4% in-house Products 21.0% 19.4% △109 810 Major increase/decrease factors related to △263 subsidiaries 28.8% merchandise 27.6% Imported 2,352 25.8% 25.4% 25.5% 26.3%
Slide 34: Structural Steel Materials
Structural Steel Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales 5,396 Segment profit or loss 5,244 19,963 YoY 4,847 16,098 +24.0% 4,475 4,299 4,328 3,954 1,712 YoY 471 507 3,516 431 1,304 404 376 356 +31.2% 217 252 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2022 FY2023 FY202
Slide 35: Structural Steel Materials: Profit Analysis
Structural Steel Materials Segment profit or loss analysis (million yen) Quarterly GPM 31.1% 32.2% 31.8% manufactured △102 30.8% 27.2% 28.1% 25.2% in-house Products 23.8% 514 △376 371 34.2% 34.0% 33.8% 32.3% 32.4% merchandise 31.9% Imported 30.8% 30.3% 1,712 1,304 19.2% 19.2% 18.9% 19.0% merchandise
Slide 36: Electrical Equipment
Electrical Equipment Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss YoY 2,467 2,441 9,502 2,323 2,370 2,226 2,223 8,610 +10.4% 2,126 1,933 121 313 YoY 96 85 233 66 +34.2% 57 42 50 28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2022 FY2023 FY2022 FY2022 FY2022 FY2
Slide 37: Electrical Equipment: Profit Analysis
Electrical Equipment Segment profit or loss analysis (million yen) Quarterly GPM and the number of projects 17.6% 40 16.8% 16.8% 16.9% Gross Profit Margin 16.7% △108 16.4% 16.3% 16.0% 147 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 313 233 26 The number of project
Slide 38: Scaffolding Construction
Scaffolding Construction Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 2,504 YoY 2,198 8,371 2,070 2,001 7,568 +10.6% 1,923 1,702 1,795 1,746 91 107 86 67 50 △33 △33 △3 △81 △75 FY2022 FY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2022 FY2022 FY2022 FY2022 F
Slide 39: Scaffolding Construction: Profit Analysis
Scaffolding Construction Segment profit or loss analysis (million yen) Sales fluctuations by service type FY2022 FY2023 Construction sales 3,531 3,643 2,913 2,860 1,182 577 404 532 △206 141 154 228 Detached Large properties Bridges/ Rental sales Material sales houses/renovations (non-residential) ci
Slide 40: 6. FY2024 Financial Forecast
6. FY2024 Financial Forecast
Slide 41: FY2024 Consolidated Financial Forecast
FY2024 Consolidated Financial Forecast (million yen) FY2023 FY2024 Change Actual Forecast Amount % Net sales 75,447 78,000 +2,552 +3.4% Gross profit 16,253 17,450 +1,196 +7.4% SG&A expenses 11,898 12,950 +1,052 +8.8% Operating income 4,355 4,500 +145 +3.3% Ordinary income 4,563 4,700 +136 +3.0% Prof
Slide 42: FY2024 Financial Forecast by Segment
FY2024 Financial Forecast by Segment (million yen) FY2023 FY2024 Change Actual Forecast Amount % Industrial 37,610 39,293 +1,683 +4.5% Materials Net sales Segment profit or loss 2,352 2,597 +244 +10.4% Structural 19,963 20,873 +910 +4.6% Materials Net sales Steel Segment profit or loss 1,712 1,589 △
Slide 43: 7. Response to ESG Issues
7. Response to ESG Issues
Slide 44: ESG Basic Policy
ESG Basic Policy In engaging in corporate activities, we recognize that management promoting response to ESG (environment, social, and governance) issues will lead to sustainable growth. Materiality Relevant SDGs Provision of optimal products Expansion of the handling of environment-related and
Slide 45: Initiatives
Initiatives We have established our ESG basic policy and link it to sustainable corporate growth by incorporating it in the management strategy. SDGs Promotion Department established to explore, research and design initiatives to facilitate achieving the SDGs targets. Current Specific Initiative
Slide 46: Initiatives: Environment
Initiatives: Environment Environment Provision of optimal products and merchandise Business activities paying attention for environment measures to the environment Oil hunter Initiatives for environmental protection and energy-saving This is an eco-mark certified oil absorption Initiatives for
Slide 47: Initiatives: Social
Initiatives: Social Social Human resource development and diversity We aim to create a working environment in which employees with diverse backgrounds fully demonstrate their respective abilities and are motivated to work. Male-female ratio of new employees with main career track Year of interna
Slide 48: Initiatives: Social (Shareholding)
Initiatives: Social Social Improving employee motivation We have introduced an employee restricted stock program. By issuing shares as an incentive to employees, we encourage employees to boost their motivation and morale toward enhancing performance. We target DOE of at least 2.5% and look to p
Slide 49: Initiatives: Governance
Initiatives: Governance Governance Corporate governance KONDOTEC recognizes that strengthening and enhancing corporate governance through increasing soundness, transparency and efficiency of management and maximizing corporate value is one of the most important management objectives. KONDOTEC has
Slide 50: 8. Growth Strategies
8. Growth Strategies
Slide 51: Towards Achieving Billion Yen Sales Target
Towards Achieving 100 Billion Yen Sales Target We target consolidated sales of 100 billion yen in the 2020s by strengthening the earnings capability of existing core businesses and expanding into fields with growth prospects. M&A strategies 100 billion yen 1,000 Accelerate growth with current KOND
Slide 52: ① Four Growth Strategies: New Customers and Products
Organic Growth ① Four Growth Strategies ～ Cultivation of New Customers and Offer of New Products and Merchandise ～ Cultivation of new customers Offer of new products and merchandise We achieve a monthly average of one new customer per For the purpose of developing new merchandise, joint New sale
Slide 53: ① Four Growth Strategies: Sales Methods and Distribution Routes
Organic Growth ① Four Growth Strategies ～ Adoption of Flexible Sales Methods and Cultivation of Distribution Routes ～ Adoption of flexible sales methods Cultivation of distribution routes Differentiation strategies We are working to expand our business into new sectors, Launch of website, “Tsu
Slide 54: ② Expansion of Operating Sites
Organic Growth ② Expansion of Operating Sites We strive for expansion of operating sites which maintained a local-community-oriented sales structures in order to respond quickly to customer needs. Recently we opened the Gunma office in April 2022. We will continue to execute quick deliveries in an
Slide 55: ③ Response to Natural Disasters
Organic Growth ③ Response to Natural Disasters Response to “New stage” published by Response to natural disasters Ministry of Land, Infrastructure, Transport and Tourism We have established a structure that allows it to rapidly The Ministry of Land, Infrastructure, Transport and Tourism has resp
Slide 56: Increasing Presence in Foreign Markets
Periphery-Strengthening Growth Increasing Presence in Foreign Markets Based on our view that increasing presence in foreign markets where growth is expected will contribute to enhancing our earning capability, we established a subsidiary in Thailand in November 2012. We executed a capital increase
Slide 57: M&A strategies
Toward Accelerating Organic Growth Strategies and Periphery-Strengthening Growth Strategies M&A Strategy (Corporate Acquisitions and Capital/Business Tie-Ups ) We view that pursuing corporate acquisitions and capital/business tie-ups is an important strategy to strengthen our business platform. Fo
Slide 58: 9. Shareholder Return
9. Shareholder Return
Slide 59: Change in Dividend Policy Regarding the Return of Profits
Change in Dividend Policy Regarding the Return of Profits Kondotec views the return of profits to shareholders as one of its important policies and aims to improve capital efficiency as it works to strengthen its earnings power by increasing strategic investment (execution of M&A) and aggressive i
Slide 60: Dividends and Shareholder Incentive Plan
Dividends and Shareholder Incentive Plan We target ROE of 10% or more and DOE of 4.0% or more with the aim of continuing to increase dividends. Transition in dividends Shareholder incentive plan Shareholders can redeem reward points for over 2,000 choices (including food, appliances, Since initi
Slide 61: Transition of Stock Price
Transition of Stock Price Transition of stock price Ranking among listed companies Stock price (after stock split) Nikkei average stock price Among 3,968 listed companies … KONDOTEC stock price (yen) Nikkei average stock price (yen) 1,318 1,250 30,000 ROE 1,699th 1,000 24,000 Profit 750 18,000 attri
Slide 62: 10. Highlights of Results
10.Highlights of Results
Slide 63: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Net sales (million yen) 75,447 million yen Operating income (million yen) 4,355 million yen 78,000 75,447 4,500 4,355 4,085 66,139 3,907 60,599 59,562 3,516 3,537 3,594 57,828 3,441 3,354 3,271 3,303 52,811 50,211 50,410 47,991 49,168 2,664 41,153 13/3 14
Slide 64: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 33,285 Net assets (million yen) million yen ROE (%) Target 10 % or higher 33,285 32,066 28,387 29,022 11.4 26,756 11.1 10.9 10.8 10.7 10.7 10.4 24,745 10.0 10% or higher 22,719 21,102 20,231 7.7 7.9 18,783 16,990 5.4 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/
Slide 65: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 (forecast) Result of Operations (million yen) Net sales 41,153 47,991 49,168 50,211 50,410 52,811 57,828 60,599 59,562 66,139 75,447 78,000 Operating profit 2,664 3,271 3,303 3,441 3,516 3,537 3,
Slide 66: Quarterly Highlights
Quarterly Highlights Consolidated Net sales (million yen) 20,137 19,193 19,080 17,862 16,971 17,036 16,053 16,326 15,665 15,585 15,117 15,492 14,647 14,839 14,978 14,350 14,199 14,313 14,112 13,613 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/3 20/3 21/3 22/3 23/3 Operating income
Slide 67: Quarterly Highlights: Industrial Materials
Quarterly Highlights Industrial Materials Net sales (million yen) 9,961 10,075 9,536 9,655 9,175 9,227 9,025 9,237 9,288 8,919 8,685 8,758 8,692 8,371 8,591 7,968 7,907 7,826 8,104 7,664 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/3 20/3 21/3 22/3 23/3 Segment profit or loss (mill
Slide 68: Quarterly Highlights: Structural Steel Materials
Quarterly Highlights Structural Steel Materials Net sales (million yen) 5,396 5,244 4,847 4,597 4,475 4,412 4,322 4,299 4,328 4,225 3,913 4,019 3,954 3,835 3,859 3,658 3,616 3,516 3,467 3,293 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/3 20/3 21/3 22/3 23/3 Segment profit or loss
Slide 69: Quarterly Highlights: Electrical Equipment
Quarterly Highlights Electrical Equipment Net sales (million yen) 2,465 2,467 2,441 2,323 2,370 2,272 2,237 2,226 2,223 2,156 2,148 2,107 2,101 2,155 2,126 2,035 2,035 1,963 1,933 1,886 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/3 20/3 21/3 22/3 23/3 Segment profit or loss (milli
Slide 70: Quarterly Highlights: Scaffolding Construction
Quarterly Highlights Scaffolding Construction Net sales (million yen) 2,504 2,198 2,070 2,001 1,923 1,795 1,746 1,702 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/3 20/3 21/3 22/3 23/3 Segment profit or loss (million yen) 107 86 67 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 71: GZ KonboTec
GZ KonboTec ~ O 70
Slide 72: Contact and official SNS accounts
Official SNS accounts KONDTEC opened new official Instagram and Facebook accounts. Please follow us to get to know us better and for information and updates on our products and merchandise. Instagram 2-2-90 Sakaigawa, Nishi-ku, Osaka URL：https://www.instagram.com/kondotec_official/ 550-0024 Japan Te