Takashima & Co., Ltd. · TSE:8007
Takashima & — Q3 FY2023 Earnings Presentation
28 slides from Takashima &'s earnings presentation, Feb 22, 2024
Slide 1: Fiscal Year Ending March 31, 2024 (FY23) Third Quarter 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 Ending March 31, 2024(FY23) Third Quarter Financial Br
Slide 2: Contents
Contents 1| FY23 3Q Financial Highlights 2| FY23 Consolidated Performance Forecast 3| Shareholder Return 4| Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market 5| Measures to Achieve Management Conscious of Cost of Capital and Stock Price ©2024 Takashima &
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 3Q Financial Highlights
1. FY23 3Q Financial Highlights ©2024 Takashima & Co., Ltd.
Slide 5: Executive Summary
Executive Summary ➢ Financial results with increased sales and profit Profit attributable to owners of Net Sales Operating Profit Ordinary Profit parent ¥66,416M ¥1,692M ¥1,876M ¥1,237M YoY +10.3% YoY +72.0% YoY +70.8% YoY +54.8% ➢ Revised consolidated forecasts for the fiscal year ending March 31,
Slide 6: Consolidated Performance P/L
Consolidated Performance P/L ✓ Net sales increased 10.3% YoY to ¥66,416M due to strong performance in the construction supply segment and industrial materials segments, despite lower sales and profits in the electronics and devices segment ✓ Operating profit increased 72.0% YoY to ¥1,692M ✓ Ordinary
Slide 7: Consolidated Performance B/S
Consolidated Performance B/S The end of FY22 The end of 3Q of FY23 （Mar. 31, 2023） （Dec 31, 2023） Total assets: ¥53,060M ¥9,713M Total assets: ¥62,773M Equity ratio: 36.8% -4.1pt Equity ratio: 32.4% （Unit :Millions of yen） （Unit :Millions of yen） Curren liability Curren liability Curren assets 35,49
Slide 8: Consolidated Performance B/S: Main factors of change
Consolidated Performance B/S （Unit: Million of yen） FY22 FY23 3Q Amount of change Ratio of change Assets Current assets Cash and deposits 7,791 7,013 -778 -10.0% Notes and accounts receivable - trade, 26,260 29,481 3,221 12.3% and contract assets Main factors of change Total current assets 41,440 44
Slide 9: Consolidated Performance B/S: Main factors of change
Consolidated Performance B/S （Unit: Millions of yen） FY22 FY23 3Q Amount of change Ratio of change Liabilities Current liabilities Notes and accounts payable trade 15,277 18,162 2,885 18.9% Electronically recorded obligations – operating 5,735 4,944 -790 -13.8% Short-term borrowings 3,548 8,485 4,93
Slide 10: Net sales configuration by segment
Net sales configuration by segment FY23 3Q Net sales ¥66,416M 64.1 18.8 16.9 0.2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Construction Supplay Industrial Materials Electronic Devices Other Construction Supply Segment Industrial Materials segment Electronic Devices Segment The company handles a va
Slide 11: Briefing by Segment: Construction Supply
Briefing by Segment: Construction Supply ➢ Overall sales in the Construction Supply segment increased 24.4% to ¥42,589M ➢ Segment profit increased 1253.9% to 985 million yen Net sales （Unit: Millions of yen） 45,000 40,000 Amount of FY22 3Q FY23 3Q YoY 35,000 change Construction Materials 30,000 25,0
Slide 12: Briefing by Segment: Industrial Materials
Briefing by Segment: Industrial Materials ➢ Overall sales in the Industrial Materials segment increased 2.5% to ¥12,454M ➢ Segment profit increased 105.0% to ¥343M Net sales （Unit: Millions of yen） 14,000 Amount of 12,000 FY22 3Q FY23 3Q YoY change 10,000 Plastic-related 8,000 Plastic-related 5,676
Slide 13: Briefing by Segment: Electronic Devices
Briefing by Segment: Electronic Devices ➢ Overall sales in the Electronic Devices and Components segment declined 18.0% to ¥11,227M ➢ Segment profit decreased 58.0% to 275 million yen Net sales （Unit: Millions of yen） 15,000 Amount of FY22 3Q FY23 3Q YoY change 10,000 Devices Device 6,539 4,702 -1,8
Slide 14: Briefing by Segment: Real Estate Leasing
Briefing by segment: Real Estate Leasing ➢ No change in real estate owned by the Company from the previous period, and both net sales and segment profit remained unchanged. （Unit: Millions of yen） Net sales Amount of 160 FY22 3Q FY23 3Q YoY change 140 120 100 80 Segment net sales 146 145 -1 -1.2% 60
Slide 15: 2. FY23 Full-year Consolidated Performance Forecast
2. FY23 Full-year Consolidated Performance Forecast ©2024 Takashima & Co., Ltd.
Slide 16: FY23 Consolidated Performance Forecast -Revised-
FY23 Consolidated Performance Forecast –Revised- ➢ November 9, 2023: Revised earnings forecast upward, taking into account the acquisition of Gansui Corporation in June 2023 and the performance in the second quarter of the fiscal year ending March 31, 2024. ➢ Dec. 14, 2023: Revised upward the foreca
Slide 17: Revision of Consolidated Forecasts by Segment for FY23
Revision of Consolidated Forecasts by Segment for FY23 ➢ We revised forecasts for construction supply and industrial materials segments at the end of 2nd quarter. （Unit: Millions of yen） FY23 Revised Amount of Ratio of Amount of Ratio of FY23 Initial Result for forecast(A） Forecast change change cha
Slide 18: 3. Shareholder Return
3. Shareholder Return ©2024 Takashima & Co., Ltd.
Slide 19: 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 20: 4. Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market
4. Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market ©2024 Takashima & Co., Ltd.
Slide 21: Transition of Stock Price After the Announcement of Our Plan to Meet the Criteria
Transition of Stock Price After the Announcement of Our Plan to Meet the Criteria - Steady implementation of the commitment items in the basic policy of a plan to meet the criteria resulted in a steady increase in the stock price. - We will continue to take actions to enhance corporate value in orde
Slide 22: Status of Meeting the Criteria for Continued Listing
Status of Meeting the Criteria for Continued Listing ➢ Status of meeting the criteria for maintaining prime market listing as of March 31, 2023 Average closing price from January to the end of March Tradable market 2023 capitalization ¥2,919（Before share split） ¥8.24Bn ¥729（Considering After 4-divis
Slide 23: 5. Measures to Achieve Management Conscious of Cost of Capital and Stock Price
5. Measures to Achieve Management Conscious of Cost of Capital and Stock Price ©2024 Takashima & Co., Ltd.
Slide 24: Introduction: Management Conscious of Cost of Capital and Stock Price
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 25: Current assessment
Current assessment - Although the company has achieved return on capital in excess of cost of capital, P/B ratio is below the 1x level. Therefore, not only sustainable improvement of ROE, but also future earnings growth, i.e., improvement of P/E ratio, is an issue. (Status of capital efficiency) (St
Slide 26: Current assessment
Current assessment ◆ Major achievements based on the policies of the medium-term management plan Achievement Purpose Implementation period New Energy Distribution System and Sinbou Edix become consolidated subsidiaries Investment in strategic area FY22 Gansui Corporation become consolidated subsidia
Slide 27: Policies and goals for improvement; Specific measures for improvement
(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 medium-term management (1) plan (fiscal year ending March 31, 2026) Policies and goals for • Steadily implement initiatives based
Slide 28: 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