Yamabiko Corporation · TSE:6250
Yamabiko — FY2022 Earnings Presentation
53 slides from Yamabiko's earnings presentation, February 2023
Slide 1: Summary of financial results for FY2022/12 and presentation of Medium-Term Management Plan 2025
Summary of financial results for FY2022/12 and presentation of Medium-Term Management Plan 2025 February 2023 YAMABIKO CORPORATION 1
Slide 2: Index
INDEX 1. Financial Results for FY2022/12 ３ 2. Review of Implementation of Medium-Term Management Plan 2022 11 3. Financial Forecasts for FY2023/12 15 4. Medium-Term Management Plan 2025 Policy and Business Strategy 19 ©YAMABIKO CORPORATION. All rights reserved. 2
Slide 3: Financial Results for FY22/12
Financial Results 1 for FY22/12 Jan 1, 2022 - Dec 31, 2022 ©YAMABIKO CORPORATION. All rights reserved. 3
Slide 4: Overview of FY22/12
Overview of FY22/12 As for Overseas OPE, sales to consumers decreased in North America due to the decline in demand following the stay-at- home demand by Covid-19 and the effect of inflation. On the other hand, in the professional user market, which has traditionally been less susceptible to economi
Slide 5: Financial results compared with the previous fiscal year
Financial results compared with the previous fiscal year Sales increased due to sales price revisions in response to ongoing increases in transportation costs and raw material prices, the positive effect of the yen's depreciation on sales, and increased production of products for professional user
Slide 6: Net Sales Change (JPY basis)
Net Sales Change(JPY basis) （Hundred millions of yen） Japan Other Overseas Sales of agricultural and industrial machinery decreased due to supply chain disruptions, Europe 12 and sales of agricultural machinery decreased due to the decline in demand The 30 following government stimulus package, and
Slide 7: Operating Profit Change
Operating Profit Change Unrealized Sales decreased （Hundred millions of yen） gain Profit decreased by decrease in real sales ▲18 excluding the effect of exchange rates. Selling, general 47 and Exchange rate factors Sales administrative Decreased expenses Increase in profit as a result of the depreci
Slide 8: Transition of Quarterly Financial Performance
Transition of Quarterly Financial Performance （Hundred millions of yen） FY2020/12 FY2021/12 FY2022/12 500 442.9 419.7 381.5 382.4 400 361.1 360.4 360.3 353.4 345.4 318.7 298.9 300 279.3 Sales 200 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q （Hundred millions of yen） 50.0 37.337.4 40.2 40.0 36.5 36.9 34
Slide 9: Summary for Results by Segment
Summary for Results by Segment (Millions of yen) FY21/12 Breakdown FY22/12 Breakdown Changes （％） （％） （％） Sales 142,328 100.0 156,159 100.0 +9.7 OPE 100,485 70.6 113,946 73.0 +13.4 Agricultural 24,276 17.1 23,877 15.3 ▲ 1.6 Machinery Industrial 15,159 10.7 16,257 10.4 +7.2 Machinery Others 2,408 1.7
Slide 10: Sales volume by region/segment
Sales volume by region/segment （Hundred millions of yen） Outdoor Power Equipment Agricultural Machinery Industrial Machinery 1,200 1,139 37 300 300 1,100 1,004 242 238 The Americas The Americas 44 1,000 28 146 250 1 1 250 23／Europe 5 ／Europe 4 114 Other Oversea 6 900 Other Oversea 9 800 200 63 200 7
Slide 11: Review of Implementation of Medium-Term Management Plan 22
Review of 2 Implementation of Medium-Term Management Plan 2022 ©YAMABIKO CORPORATION. All rights reserved. 11
Slide 12: Basic Policies
Review of Implementation of Medium-Term Management Plan 2022 Basic Policies Under the basic policies of Medium-Term Management Plan 2019, we will continue striving to establish the Group's position in each business over the medium to long term and take on challenges to create new value to strengthen
Slide 13: Results against Numerical Targets
Results against Numerical Targets FY20/12 FY21/12 FY22/12 FY22/12 (Actual result) (Actual result) (Actual result) (Goal) Sales （Hundred millions of yen） 1,319 1,423 1,561 1,340 Operating profit （Hundred millions of yen） 96 93 86 80 Profit attributable to owners of parent 66 75 62 58 （Hundred million
Slide 14: Segment Information
Segment Information Outdoor Power Equipment Major products…trimmers, chain saws, power blowers, etc. 1,250 Japan Overseas （Hundred millions of yen） 【Japan】 This segment was adversely affected by the absence of a government stimulus package, but we achieved sales targets, mainly due to the sales 1,00
Slide 15: Financial Forecasts for FY2023/12
Financial Forecasts 3 for FY2023/12 ©YAMABIKO CORPORATION. All rights reserved. 15
Slide 16: Summary of Financial Forecasts for FY2023/12
Summary of Financial Forecasts for FY2023/12 Although sales of agricultural machinery for domestic market are expected to decrease due to a decline in the purchasing power of farmers, sales of OPE are expected to remain at the same level as the previous year due to increased sales to professional
Slide 17: Projected Increase/Decrease of Consolidated Sales by region in FY2023/12
(Projected) Increase / Decrease of the Consolidated Sales by region in FY2023/12 (JPY basis) Japan Although sales of agricultural machinery will likely decline due to a decrease in domestic agricultural （Hundred millions of yen） businesses' willingness to purchase machinery, overall sales are expect
Slide 18: Projected Increase/Decrease of Consolidated Operating profit in FY2023/12
(Projected) Increase / Decrease of the Consolidated Operating profit in FY2023/12 Sales Profit Unrealized margin Sales, particularly of OPE to professional users in gain Europe, are expected to increase. 1 （Hundred millions of yen） Exchange rate factors ▲28 66 The yen will likely continue to be weak
Slide 19: Medium-Term Management Plan 2025 Policy and Business Strategy
4 Medium-Term Management Plan 2025 Policy and Business Strategy ©YAMABIKO CORPORATION. All rights reserved. 19
Slide 20: Yamabiko's Reason for Existing
Yamabiko's Reason for Existing Create the bridge that bonds people and nature with the future At the Yamabiko Group, we will earn trust from society and people, provide them with a positive impression, and raise their hopes with our world-leading environmental technologies, our innovative, safe, and
Slide 21: Position of Medium-Term Management Plan 2025
Position of Medium-Term Management Plan 2025 2020-2022 2023-2025 (Medium-term Management Plan 2022) (Medium-term Management Plan 2025) 2026- - Started to work on transformation, - Contribute to GX (green transformation) and including the reorganization of the propose solutions to social issues Towar
Slide 22: Numerical Targets
Numerical Targets FY22/12 FY25/12 (Actual result) (Goal) Sales 156.1 billion yen 170.0 billion yen Operating profit ratio 5.6％ ７％ ROE 8.6％ 10％ 〈Exchange assumptions〉 1 dollar 128 yen 130 yen 1 euro 138 yen 140 yen Initiatives for the achievement of targets in FY2025 We plan to achieve net sales of
Slide 23: Sales goal by segment/region
Sales goal by segment/region （Hundred millions of yen） Others Medium-Term Management Plan 2025 Industrial Machinery 1,700 1,800 Agricultural Machinery 1,561 1,570 45 Outdoor Power Equipment 22 1,600 20 1,140 1,200 214 1,400 1,132 162 184 238 231 86 248 1,200 58 72 1,000 81 85 89 800 428 430 500 600
Slide 24: Business Strategy Business Classifications
Business Strategy Business Classifications To explain business strategies, we have classified our businesses and made clear strategies and activities by market in the major businesses. We have defined new markets according to buyer segments—the professional user market and the general user marke
Slide 25: Business Strategy
Business Strategy To realize its corporate philosophy and achieve its management targets, the Company will engage in various measures based on the following business strategies. Existing business domains New business １ 2 3 Expansion of the Profitability Initiatives for new scale of business improvem
Slide 26: Expansion of the scale of business (Overseas OPE business)
❶ Expansion of the scale of business （Overseas OPE busines） - We will expand the lineup of battery products and promote sales in response to the increasing demand for them from general users. - We will continue to provide engine products with excellent environmental performance that help improve wor
Slide 27: Expansion of the scale of business (Agriculture and forestry business)
❶ Expansion of the scale of business （Agriculture and forestry business） - Will develop products that will contribute to solving social issues related to the mature domestic market. - Will actively collaborate with other companies to promptly launch products to meet the growing social demand for for
Slide 28: Expansion of the scale of business (Industrial machinery business)
❶ Expansion of the scale of business （Industrial machinery business) - With the goal of reducing environmental impact and improving work efficiency, the Company will promote electrification and hybridization, as well as the development of environmentally friendly systems that incorporate renewable e
Slide 29: Profitability improvement
❷ Profitability improvement We will enhance its earnings power to ensure sustainable growth. Overseas OPE business Industrial machinery business - We will begin reforming the distribution - The Company will respond to growing demand by channels of the US subsidiary by leveraging DX to improve profit
Slide 30: Initiatives for new business creation
❸ Initiatives for new business creation We view the GX of society as an opportunity for growth. We will establish development bases in the major markets.* The three bases will cooperate to create new businesses. Power generation DX & IoT and storage systems In addition to working on new development
Slide 31: Implementation of ESG management
❹ Implementation of ESG management We will enhance our corporate value over the medium to long term through sustainable ESG management. The Company will contribute to solutions to social issues such as environmental problems and the shortage of workers through our business activities, while continui
Slide 32: ESG. Environment
ESG．Environment ◆ Yamabiko Group's climate change mitigation policy Climate change mitigation is one of our priority management issues. In the overseas OPE business, we will expand the lineup of engine products and battery products that will lead to high work efficiency and that conform to envir
Slide 33: ESG. Society
ESG．Society Leveraging diverse human resources and continuing to invest in human capital, including human resources development and the improvement of the internal environment Develop and execute human resource strategies based on management and organizational strategies and facilitate the disclos
Slide 34: ESG. Corporate Governance
ESG．Corporate Governance ◆ Operating and deepening a strong governance system that underpins the sustainable improvement of corporate value - To respond to significant changes in the business environment, half of the directors are independent outside directors, which strengthens governance. ➢ Ensuri
Slide 35: YAMABIKO DX strategy
❺ YAMABIKO DX strategy We will implement the following strategies: (i) using digital technology to improve productivity in an innovative manner, reducing costs and improving efficiency (DT1), (ii) transforming existing businesses, adding value using data, and expanding earnings (DT2), (iii) creating
Slide 36: Shareholder Return Policy
Shareholder Return Policy Continue to pay stable dividends based on past dividends. Consider a comprehensive approach to shareholder returns, taking into consideration the business environment, its business performance and financial condition, and continue to closely watch stock market trends. 50
Slide 37: Capital investment/R&D expenses/Depreciation
Capital investment/R&D expenses/Depreciation （Hundred millions of yen） Capital investment R&D expenses 61 61 62 Mid-term plan 52 52 55 70 50 Actual result 60 25 54 51 50 47 0 45 45 FY20/12 FY21/12 FY22/12 FY23/12 FY24/12 FY25/12 （Plan） 40 Depreciation 30 28 52 20 46 45 50 41 37 33 10 25 0 0 FY20/12
Slide 38: Business Performance Trends
Business Performance Trends In 2023, we expect a high operating profit margin, reflecting highly （Hundred millions of yen） profitable inventories due to Term of Medium-term exchange rates in the previous year. Management Plan 2025 （％） 1,800 Sales Operating profit From 2024, there will be no factors
Slide 39: Appendix
APPENDIX ©YAMABIKO CORPORATION. All rights reserved. 39
Slide 40: Corporate Profile
Corporate Profile Copporate Name YAMABIKO CORPORATION Established December 1, 2008 Headquarters 7-2 Suehirocho 1-chome, Ome, Tokyo, Japan Sales JPN ¥ 156,159 mil （Consolidated sales as of December, 2022） Capital JPN ¥6,000 mil Fiscal Term December 31 Consolidated 15※（6 in Japan & 9 overseas/as of De
Slide 41: YAMABIKO History
YAMABIKO History Developed Japan's first backpack trimmers and speed sprayers in addition to the world's first handheld blowers Following the tightening of emission regulations and industrial restructuring in the 2000s, two companies with long histories and strong track records merged in 2008. Yamab
Slide 42: Net Sales Trend & Sales by Segment
Net Sales Trend & Sales by Segment (hundred millions of yen) Trends in consolidated sales and operating income (hundred millions of yen) 1,800 120 96 1,600 Sales Operating profit 93 100 86 76 1,400 80 67 62 62 62 1,200 50 56 60 1,561 1,000 28 28 1,423 40 22 1,320 1,180 1,209 1,133 1,119 800 1,038 1,
Slide 43: Segment: Outdoor Power Equipment
Segment : Outdoor Power Equipment Sales composition ratio Technological strengths 73.0% World-class engine development capabilities （FY 2022/12） High quality engines that conform environmental regulation In Japan, outdoor power equipment is sold as equipment used • Compact, lightweight, high output
Slide 44: Segment: Agricultural Machinery
Segmet：Agricultural Machinery Sales composition ratio 15.3% Technological strengths （FY 2022/12） Realizing smart agriculture by combining ICT with accumulated weed and pest control technology Production and sales of chemical sprayers in Japan Air blast technology・Spray technology・ Dispersion technol
Slide 45: Segment: Industrial Machinery
Segment：Industrial Machinery Sales composition ratio 10.4% Technological Strength （FY 2022/12） Generator design Production and sales of construction, technology earthmoving, ironsmith machines Inherited & accumulated Electronic Soundproofing technology from AC motor control development technology te
Slide 46: Production in Japan
Production in Japan Plant Subsidiaries Production Dept. (Morioka) Production of outdoor power equipment (machining, painting, assembling, etc.) Production of pest control equipment (metal works, painting, assembling, etc) ※ Engine for pest control equipment is outsourced. Headquarters Production Dep
Slide 47: Overseas Production
Overseas Production YAMABIKO Europe SA Crary Industries, Inc. (WAVRE, Belgium ） ( North Dakota, U.S.A ) Manufacturing and Sales of Production of chippers/shredders robotic lawnmowers & agricultural machinery Subsidiary KPI Kwik Products, Inc. ( Arizona, U.S.A. ) ECHO Machinery (Schenzhen) Production
Slide 48: Major Sales Channels
Major Sales Channels Sales Chaneel Overseas Market Customers North America HOME DEPOT ECHO Distributors Incorporated Group Central & South America （Subsidiary） Distributors Landscapers Homeowners Yamabiko Corporation Europe YAMABIKO Europe (Subsidiary) Distributors Forest Dealers workers China ECHO
Slide 49: Sales and Users in Overseas Markets
Sales and Users in Overseas Markets Dealers Customers Home centers、Farm machinery store、 Hardware store、Dealer etc, Landscapers Home owners Our overseas sales outlets engage in face-to- face sales, offering a line-up of high value- added products with professional users in mind. Home centers sto
Slide 50: Sales and Users in Japanese Markets
Sales and Users in Japanese Markets Dealer Customers Agricultural cooperative、Farm machinery store、 Construction equipment rental company、 Home center etc, Landscapers Construction workers To cater to professional users, we hold exhibitions and sell products through demonstrations and test drives
Slide 51: YAMABIKO Group Structure
YAMABIKO Group Structure Outdoor Power Equipment Agricultural Industrial Overseas （ＯＰＥ） Machinery Machinery ECHOIncorporated Production YAMABIKOEurope Crary Industries ECHO Incorporated /Sales ECHOMachinery(Schenzhen) KPIKWIKProducts Production ECHOTAIWAN YAMABIKO VIETNAM Sales Golden Eagle Distribu
Slide 52: Indicators related to Business
Indicators related Business Indicators related Outdoor Power Equipment Japan Agricultural Machinery Manufacturers Association （OPE） : shipments（trimmer）, rice price etc. Japan Agricultural Machinery Manufacturers Association Agricultural Machinery : shipments（pest control machine）, rice price etc. J
Slide 53: Yamabiko Corporation Corporate Planning Dept.
This presentation has business plans which incorporate estimates made at the time of preparation. Such plans and estimated figures of future results are established by Yamabiko Corporation in accordance with currently available facts, data, and information. Various elements may affect actual busines