Trusco Nakayama Corporation · TSE:9830
Trusco Nakayama — Q3 2022 Earnings Presentation
45 slides from Trusco Nakayama's earnings presentation, Nov 25, 2022
Slide 1: Business Performance Data Analysis, FYE December 2022 Third Quarter
The 60th Business Year Business Performance Data Analysis FYE December 31, 2022 Third 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, Shinbashi, M
Slide 2: Table of Contents
Table of Contents 60th Business Year, Fiscal Year Ending December 2022 Third 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: References
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 from the first quarter to third quarter ・ Opportunity loss was minimized by continuously expanding inventories amid rising resource prices and increasing shortages of products. ・ The user direct delivery service was enhanced, and orders were consolidated. ・ S
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 Third Quarter Full Year Change Year-on- Actual results Rate Actual results Rate YoY change from budget Budget year change (%) Net sales 226,833 million yen － 180,924 million yen － +8.
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 4,830 4,602 4,461 4,335 4,273 4,270 4,
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, 2021 FYE December 31, 2022 Third Quarter Full Year Budget Gross Gross profit Net sales profit Net sales Net sales margin margin Change Actual YoY Budget change from Actual YoY YoY Sales route Actual result
Slide 12: B-1. Business performance by sales route: Factory route
B-1. [Consolidated] Business performance by sales route: Factory route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Third Quarter Third Quarter Gross profit Net sales margin Net sales Gross profit margin Sales route Actual YoY Actual YoY Actual results Share Actual results Share r
Slide 13: B-1. Business performance by sales route: 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 Third Quarter Third Quarter Gross Net sales profit Net sales Gross profit margin margin Sales route Actual Actual Actual results Share Actual results Share YoY ch
Slide 14: B-1. Business performance by sales route: Home center route
B-1. [Consolidated] Business performance by sales route: Home center route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Third Quarter Third Quarter Gross profit Net sales margin Net sales Gross profit margin Actual Actual Actual results results Actual results YoY change results Yo
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 Full year Full year Full year Third qua
Slide 16: B-2. [Non-consolidated] Analysis of sales
B-2. [Non-consolidated] Analysis of sales (Unit: million yen) Net sales up 13,888 million yen Rise in demand for Rise in demand equipment due to Decrease in other for supplies due recovery in capital (including 3Q of to recovery in the expenditure, etc. adjustments) FY 2022 manufacturing industry, e
Slide 17: B-3. Changes in sales by category of goods
17 TRUSCO NAKAYAMA Investor Relations (Unit: million yen) ★: COVID-19 related products ★Sterilization and B-3. [Non-consolidated] Changes in sales by category of goods hygiene goods Work benches Box cutters Connection terminals Manual chain block Factory ★Environment fans measuring instruments Waist
Slide 18: B-4. Sales by category of goods
B-4. [Non-consolidated] Sales by category of goods While there was increased demand for cooling products such as spot air conditioners (large category 6) due to the effects of the record-breaking heat, as well as increased demand for harness-type systems (large category 6) due to a revision to the l
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: Cutting tools 1.5% Production processing goods ( ) Year-on-year change 46.6 billion yen 3.5% Office and 43,596 43,890 41,302 43,445 housing 34,114 Research facility Construct
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)
* For details on the factors of the changes, C-1. [Consolidated] Selling, general and please see page 22. administrative expenses (SGA) * Regarding the full-year forecast for 2022, items other than salaries and bonuses, and freight and packing expenses are indicated in the figures for [non-consolida
Slide 22: C-1. Details of selling, general and administrative expenses (SGA)
C-1. [Consolidated] Details of selling, general and administrative expenses (SGA) (Unit: million yen, %) FYE December 31, 2022 FY 2021 Third Quarter Full year budget YoY Change FY 2022 full YoY change and YoY change (amount) year budget in performance Share in net Share in net No. Actual results Act
Slide 23: C-2. Financial statements and financial indicators
C-2. [Consolidated] Financial statements and financial indicators ▮ Balance Sheet ▮ Statement of cash flows (As of September 30, 2022) Unit (million yen) Unit: million yen Item Amount Item Amount (Assets) (Liabilities) 3Q of 3Q of Change FY 2021 FY 2022 Current assets 120,361 Current liabilities 51,
Slide 24: C-3. Capital expenditures
C-3. [Consolidated] Capital expenditures ▮ 60th planned expenditure: approx. 4,329 million yen (Unit: million yen) Actual Expected Details of major capital expenditures in 2022 expenditures for expenditures 1Q-3Q for 4Q Renewal of product database “Sterra” (planned total investment: 1,330 million ye
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: 41,633.06 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: 545,547 items Number of items featured: 2,985,038 items Of these, number of goods automatically adopted: 23,723 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) 2,179 streamlines the procurement process 2,042 Sales to companies participating in This is a
Slide 29: D-2. Key indicators (sales): MRO Stocker
D-2. Key indicators (sales) Currently under negotiation 286 companies ▮ MRO Stocker (use-first-pay-later tools) Cumulative target number of companies for installation as 1,409 companies Introduced to 584 companies of the end of December 2022 as of the end of September 2022 Monthly sales target per c
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 (2021) distributors distributors to users 3Q 17.9% 10.5% 70.5% Distributor visits 0.8% 2022 Delivery to Route shipments to Route shipments (2
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 91.0 91.3 91.5 2017 2018 2019 2020 2021 89.9 90.5 600,000 Inventory disposal (million yen) 41 39 42 50 55 545,547 Inventories (100 million yen
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 September 30, 2022 (Unit: persons) Female Male Total YoY change Average annual income Average age (years) Executives 1 9 10 △1 (10,000 yen) Executive officers 0 1 1 △1 Entire Entire Femal
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 Third Quarter (Quarterly) (Unit: million yen, %) 1st Quarter (-1 day) 2nd Quarter (±0 day) 3rd Quarter (+3 days) 4th Quarter (+1 day) Year-on- Amount Share YoY change Amount Share YoY change Amount Shar
Slide 37: E-3. Quarterly budget and business performance (cumulative)
E-3. [Consolidated] Quarterly budget and business performance (cumulative) ▮ FYE December 31, 2022 Third Quarter [Cumulative] (Unit: million yen, %) 1st Quarter (-1 day) 2nd Quarter (-1 day) 3rd Quarter (+2 days) Full year (+3 days) Year-on- Amount Share YoY change Amount Share YoY change Amount Sha
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's "Gentleness for the Future" Project
F-1. TRUSCO's "Gentleness for the Future" Project ▮ TRUSCO's "Gentleness for 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 s
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) FYE December FYE June 30, FYE December FYE June 30, FYE December FYE June 30, 31, 2019 2020 31, 2020 2021 31, 2021 2022 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 13,527 15,
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. The 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