Slide 1: Financial Results FY2022
Financial Results FY2022 May 13,2022 Securities Code : 7438
Slide 2: Contents
Contents 1. Highlights of FY2022 Financial Results P.3 2. Company Overview P.6 3. Main Products and Merchandise P.14 4. FY2022 Financial Results and Analysis P.20 5. FY2022 Financial Results and Analysis by Segment P.26 6. FY2023 Financial Forecast P.34 7. Response to ESG Issues P.36 8. Growth Strat
Slide 3: 1. Highlights of FY2022 Financial Results
1. Highlights of FY2022 Financial Results
Slide 4: Summary of FY2022 Consolidated Financial Results
Summary of FY2022 Consolidated Financial Results Net sales increased due to demand recovery in construction, price revisions reflecting surging materials costs and sales contributions from Fukoku (which became a subsidiary in January 2021) and KURIYAMA ALUMINUM (which became a subsidiary in Octobe
Slide 5: Topics in FY2022
Topics in FY2022 Transition to the Prime Market of Tokyo Stock Exchange Acquisition of KURIYAMA ALUMINUM Co., Ltd. With the market restructuring of Tokyo Stock Exchange, In October 2021, KONDOTEC resolved to acquire shares in KONDOTEC shifted to the new Prime Market from the KURIYAMA ALUMINUM Co
Slide 6: 2. Company Overview
2. Company Overview
Slide 7: 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 Acquired shares ALUMINUM （trillion yen） of FUKOKU
Slide 8: 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, 2022) Establish
Slide 9: 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 10: Net Sales by Segment
Net Sales by Segment Segment Main customers Main products & merchandise Net sales by segment (FY2022) Turn buckles Shackles Hardware stores Scaffolding chains Wholesalers Industrial Hooks and clips Materials Home Screws Electrical improvement Container bags Equipment center Tarpa
Slide 11: Distribution Channels
Distribution Channels Suppliers Construction and civil engineering-related Overseas Electrical equipment In-house (manufacturers, etc.) factory procurement manufactures 50% 15% 20% 15% ※ Manufacturer function (In-house manufactured products and OEM products) Approximately 40% Sales contribution rati
Slide 12: Segment Overview
Segment Overview (As of end March 2022) Industrial Structural Electrical Consolidated Materials Steel Materials Equipment 66,139 million yen 41,430 million yen 16,098 million yen 8,610 million yen In- In- house In- house house Net sales 16% 13% 32% Domestically- Imported Imported Domestically- Domes
Slide 13: Market Size for Main Products and Merchandise
Market Size for Main Products and Merchandise Market size for main products, merchandise and corresponding market shares (As of end March 2021) We offer an extensive range of products including higher market shares products and merchandise (such as wire ropes, nets, sheets, and screws) and product
Slide 14: 3. Main Products and Merchandise
3. Main Products and Merchandise
Slide 15: 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 16: 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 17: 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) 16
Slide 18: 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). 17
Slide 19: 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 18
Slide 20: 4. FY2022 Financial Results and Analysis
4. FY2022 Financial Results and Analysis
Slide 21: FY2022 Consolidated Financial Results
FY2022 Consolidated Financial Results Vs. FY2021 (million yen) YoY FY2021 FY2022 Amount % Net sales 59,562 66,139 +6,577 +11.0% Gross profit 13,604 14,730 +1,126 +8.3% SG&A expenses 10,249 11,136 +887 +8.7% Operating income 3,354 3,594 +239 +7.1% Ordinary income 3,455 3,810 +354 +10.3% Profit attrib
Slide 22: Operating Income Analysis (Consolidated)
Operating Income Analysis (Consolidated) Operating income analysis (million yen) Quarterly GPM △249 Consolidated Parent 953 △340 △124 23.7% The impacts of making 23.3% Nippon Scaffolding 23.0% Holdings, FUKOKU, and 23.6% 22.9% 22.7% KURIYAMA ALUMINUM 3,594 22.4% 3,354 subsidiaries 22.1% 22.8% 22.8%
Slide 23: FY2022 Consolidated Financial Results vs. Forecast
FY2022 Consolidated Financial Results Vs. Forecast (million yen) Operating income analysis (million yen) FY2022 FY2022 Change Forecast Actual Amount % Net sales 63,700 66,139 +2,439 +3.8% 564 △583 243 Gross profit 14,750 14,730 △19 △0.1% SG&A 11,380 11,136 △243 △2.1% expenses 3,594 3,370 Operating 3
Slide 24: Consolidated Balance Sheet [Assets]
Consolidated Balance Sheet [Assets] (million yen) FY2021 FY2022 Change Cash and deposits 11,317 10,164 △1,153 Notes and receivable –trade, 12,372 13,200 +828 and contract assets Current assets Electronically recorded 1,984 2,861 +877 monetary claims operating Inventories 4,932 7,183 +2,250 Other 962
Slide 25: Consolidated Balance Sheet [Liabilities and Net Assets]
Consolidated Balance Sheet [Liabilities and Net Assets] (million yen) FY2021 FY2022 Change Notes and accounts payable – trade 3,978 4,346 +368 Electronically recorded 8,029 9,114 +1,084 obligations – operations Current liabilities Electronically recorded obligations–operations 9,202 10,762 +1,559 Br
Slide 26: 5. FY2022 Financial Results and Analysis by Segment
5. FY2022 Financial Results and Analysis by Segment
Slide 27: FY2022 Financial Results by Segment
FY2022 Financial Results by Segment (million yen) Change Full-year Change FY2021 FY2022 (%) forecast (%) Net sales 37,282 41,430 +11.1% 40,452 +2.4% Industrial Materials Segment 2,208 2,087 △5.5% 2,265 △7.9% profit or loss EBITDA 2,946 2,971 +0.9% － － Net sales 14,035 16,098 +14.7% 14,687 +9.6% Stru
Slide 28: Industrial Materials
Industrial Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 11,308 YoY 10,693 41,430 9,961 9,900 +11.1% 9,536 9,528 37,282 8,758 9,025 YoY 669 2,208 2,087 593 582 566 553 540 △5.5% 393 397 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2022 FY2021 FY2
Slide 29: Industrial Materials: Profit Analysis and Gross Margin
Segment profit or loss analysis (million yen) Quarterly GPM manufactured 27.3% 29.1% 28.8% 27.2% 26.3% in-house Products 24.8% 365 △293 23.1% 21.0% △216 42 △19 Major increase/decrease 30.7% 30.6% factors related to 29.2% 29.8% 28.8% merchandise subsidiaries 27.6% Imported 2,208 Goodwill amortization
Slide 30: Structural Steel Materials
Structural Steel Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales 4,299 4,328 Segment profit or loss 3,954 16,098 3,658 3,616 YoY 3,467 3,516 14,035 3,293 +14.7% 404 431 1,304 311 944 YoY 260 252 240 217 +38.2% 132 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2022 FY2021
Slide 31: Structural Steel Materials: Profit Analysis and Gross Margin
Segment profit or loss analysis (million yen) Quarterly GPM 31.1% 32.2% 31.8% manufactured 29.3% 30.7% 30.7% 26.7% 5 in-house Products 25.2% △119 238 235 36.9% 36.7% merchandise 35.5% 35.8% Imported 34.2% 34.0% 32.3% 1,304 30.8% 944 19.3% 19.2% 18.8% merchandise Domestically 18.7% 18.3% sourced 18.0
Slide 32: Electrical Equipment
Electrical Equipment Net sales and segment profit or loss (million yen) YoY Quarterly Net sales 2,323 Segment profit or loss 2,237 2,226 2,155 2,126 8,610 YoY 1,886 1,963 1,933 8,243 +4.4% 112 96 253 233 YoY 69 66 △7.6% 44 42 26 28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2022 FY2021 FY2021 FY2021 FY202
Slide 33: Electrical Equipment: Profit Analysis and Projects
Segment profit or loss analysis (million yen) Quarterly GPM and the number of projects 17.4% Gross Profit Margin 16.8% 16.8% 16.8% 16.6% △41 16.4% 16.3% 76 16.0% △53 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 253 233 17 Number of projects※ 14 13 11 10 FY2021 Net
Slide 34: 6. FY2023 Financial Forecast
6. FY2023 Financial Forecast
Slide 35: FY2023 Consolidated Financial Forecast
FY2023 Consolidated Financial Forecast FY2022 FY2023 Change Actual Forecast Amount % Net sales 66,139 70,000 +3,860 +5.8% Gross profit 14,730 15,910 +1,179 +8.0% SG&A expenses 11,136 12,100 +963 +8.7% Operating income 3,594 3,810 +215 +6.0% Ordinary income 3,810 3,970 +159 +4.2% Profit attributable
Slide 36: 7. Response to ESG Issues
7. Response to ESG Issues
Slide 37: 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 38: Initiatives
Initiatives We have established our ESG basic policy and link it to sustainable corporate growth by incorporating it in the management strategy. Quality Assurance Department changed the name to SDGs Promotion Department to work actively towards achieving the SDGs targets. In addition to auditing
Slide 39: 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 40: 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 41: Initiatives: Governance
Initiatives: Governance Governance Corporate governance KONDOTEC recognize 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 i
Slide 42: 8. Growth Strategies
8. Growth Strategies
Slide 43: 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 Accelerate growth with current KONDOTEC (
Slide 44: Four Growth Strategies: New Customers and New 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 sales For the purpose of developing new merchandise, joint Ne
Slide 45: Four Growth Strategies: Flexible 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, such Launch of website,
Slide 46: 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 Okayama office in April 2018. We will continue to execute quick deliveries in
Slide 47: 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 48: 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 49: 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 50: M&A Strategy Recent Case
M&A Strategy Recent Case Acquisition of KURIYAMA ALUMINUM Co., Ltd. in October 2021 KONDOTEC resolved to acquire shares in KURIYAMA ALUMINUM Co., Ltd. which develops and manufactures aluminum extrusion products and made it a subsidiary with the aim of achieving sustainable growth and improving the
Slide 51: 9. Shareholder Return
9. Shareholder Return
Slide 52: Dividends and Shareholder Incentive Plan
Dividends and Shareholder Incentive Plan We target ROE of 10% or more and DOE of 2.5% 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 53: 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 KONDOTEC stock price (yen) Nikkei average stock price (yen) Among 3,918 listed companies … 1,318 1,250 30,000 1,000 24,000 ROE 1,719th 750 18,000 Profit 500 1
Slide 54: 10. Highlights of Results
10. Highlights of Results
Slide 55: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Net sales (million yen) 66,139 million yen Operating income (million yen) 3,594 million yen 70,000 66,139 4,085 60,599 59,562 3,907 3,810 57,828 3,516 3,537 3,594 3,441 3,354 52,811 3,271 3,303 50,211 50,410 47,991 49,168 2,664 41,153 38,745 1,926 12/3 13
Slide 56: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Net assets (million yen) 32,066 million yen ROE (%) Target 10 % or higher 32,066 11.4 29,022 11.1 10.9 28,387 10.8 10.7 10.7 10.4 26,756 10.0 10% or higher 24,745 22,719 21,102 20,231 7.7 18,783 7.1 16,990 15,097 5.8 5.4 12/3 13/3 14/3 15/3 16/3 17/3 18/3
Slide 57: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 (forecast) Result of Operations (million yen) Net sales 38,745 41,153 47,991 49,168 50,211 50,410 52,811 57,828 60,599 59,562 66,139 70,000 Operating profit 1,926 2,664 3,271 3,303 3,441 3,516 3,
Slide 58: Quarterly Highlights
Quarterly Highlights Consolidated Net sales (million yen) 17,862 16,971 16,053 16,326 15,665 15,585 15,492 14,647 14,839 15,117 14,978 14,050 14,350 14,199 14,313 14,112 13,220 13,613 13,108 12,433 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 18/3 19/3 20/3 21/3 22/3 Operating income
Slide 59: Quarterly Highlights: Industrial Materials
Quarterly Highlights Industrial Materials Net sales (million yen) 11,308 10,693 9,961 9,900 9,536 9,528 9,175 9,227 9,025 8,919 8,685 8,758 8,371 8,052 7,968 7,907 7,607 7,664 7,228 7,373 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 18/3 19/3 20/3 21/3 22/3 Segment profit or loss (mil
Slide 60: Quarterly Highlights: Structural Steel Materials
Quarterly Highlights Structural Steel Materials Net sales (million yen) 4,597 4,412 4,322 4,299 4,328 4,225 3,991 3,913 4,019 3,954 3,720 3,835 3,859 3,658 3,616 3,516 3,420 3,467 3,277 3,293 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 18/3 19/3 20/3 21/3 22/3 Segment profit or loss
Slide 61: Quarterly Highlights: Electrical Equipment
Quarterly Highlights Electrical Equipment Net sales (million yen) 2,465 2,272 2,323 2,237 2,226 2,125 2,156 2,148 2,107 2,101 2,155 2,126 2,080 2,035 2,035 2,005 1,963 1,927 1,886 1,933 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 18/3 19/3 20/3 21/3 22/3 Segment profit or loss (milli
Slide 62: 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