Slide 1: FY2024 Financial Results
Tokyo Stock Exchange (Prime Market) Securities Code : 7438 FY2024 Financial Results May 14, 2024
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 FY2024 Financial Results P. 4 2. Company Overview P. 7 3. Main Products and Merchandise P. 18 4. FY2024 Financial Results and Analysis P. 24 5. FY2024 Financial Results and Analysis by Segment P. 30 6. FY2025 Financial Forecast P. 40 7. Response to ESG Issues P. 43 8. Growt
Slide 4: 1. Highlights of FY2024 Financial Results
1. Highlights of FY2024 Financial Results
Slide 5: Summary of FY2024 Consolidated Financial Results
Summary of FY2024 Consolidated Financial Results Net sales increased due to capturing demand such as private-sector capital investment and price pass-through in response to higher manufacturing and procurement costs. Operating results increased due to the sales growth and improvement in GPM, the
Slide 6: Topics in FY2024
Topics in FY2024 New DOE target Factoring in medium-to long-term performance and capital efficiency in future, Kondotec has decided to increase the DOE target to 4.0% from 2.5% in FY2024 to further enhance shareholder returns due to an overall increase in dividends in the market. DOE is the ratio
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. （trillion yen） 90 80,000 Established Nippon Scaffolding Holdings Co., Ltd. 8,0
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, 2024) 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 2024) Industrial Materials Structural Steel Materials Net sales Sales weighting Net sales Sales weighting 37,188 million yen 49 % 20,867 million yen 27 % 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 (FY2023) Market overview and initiatives Estimated volume of steel frame demand Market overview JIS certification (1000 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. FY2024 Financial Results and Analysis
4. FY2024 Financial Results and Analysis
Slide 25: FY2024 Consolidated Financial Results
FY2024 Consolidated Financial Results Vs. FY2023 (million yen) YoY FY2023 FY2024 Amount % Net sales 75,447 76,873 +1,425 +1.9% Gross profit 16,253 17,035 +781 +4.8% SG&A expenses 11,898 12,362 +463 +3.9% Operating income 4,355 4,673 +317 +7.3% Ordinary income 4,563 4,872 +308 +6.8% Profit attributab
Slide 26: Operating Income Analysis (Consolidated)
Operating Income Analysis (Consolidated) Operating income analysis (million yen) Quarterly GPM Consolidated Parent 474 △463 307 23.1% 4,673 22.9% 22.7% 22.8% 4,355 22.1% 21.9% 22.6% 22.2% 21.6% 22.2% 21.2% 22.0% 21.8% 21.8% FY2023 Net Sales Gross Profit SG&A FY2024 21.3% Margin Expenses 20.9% Gross
Slide 27: FY2024 Consolidated Financial Results vs. Forecast
FY2024 Consolidated Financial Results Vs. Forecast (million yen) Operating income analysis (million yen) FY2024 FY2024 Change Forecast Actual Amount % Net sales 78,000 76,873 △1,126 △1.4% △252 587 Gross profit 17,450 17,035 △414 △2.4% △162 SG&A 4,673 12,950 12,362 △587 △4.5% expenses 4,500 Operating
Slide 28: Consolidated Balance Sheet [Assets]
Consolidated Balance Sheet [Assets] (million yen) FY2023 FY2024 Change Cash and deposits 10,733 11,836 +1,103 Notes and receivable-trade, 14,181 13,642 △539 and contract assets Current assets Electronically recorded 3,695 4,993 +1,298 monetary claims operating Inventories 8,132 7,758 △374 Other 658
Slide 29: Consolidated Balance Sheet [Liabilities and Net Assets]
Consolidated Balance Sheet [Liabilities and Net Assets] (million yen) FY2023 FY2024 Change Notes and accounts payable-trade 5,015 4,769 △246 Electronically recorded obligations-operations 9,738 9,618 △119 Current liabilities Breakdown Electronically recorded obligations–operations 11,439 11,563 △385
Slide 30: 5. FY2024 Financial Results and Analysis by Segment
5. FY2024 Financial Results and Analysis by Segment
Slide 31: FY2024 Financial Results by Segment
FY2024 Financial Results by Segment (million yen) Change Full-year FY2023 FY2024 Progress (%) forecast Net sales 37,610 37,188 △1.1% 39,293 △5.4% Industrial Materials Segment 2,352 2,681 +14.0% 2,597 +3.3% profit or loss EBITDA 2,628 2,960 +12.6% － － Net sales 19,963 20,867 +4.5% 20,873 △0.0% Struct
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 9,655 9,732 YoY 9,288 9,256 9,234 37,610 37,188 8,965 △1.1% 8,591 781 2,681 YoY 698 672 651 2,352 574 576 +14.0% 538 539 FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2023 FY20
Slide 33: Industrial Materials: Profit Analysis
Industrial Materials Segment profit or loss analysis (million yen) Quarterly GPM 33.1% 30.1% manufactured 27.0% 27.7% 24.0% 24.4% 24.0% 25 in-house Products △175 19.4% 515 △737 702 28.4% 28.6% 28.3% merchandise 27.5% 2,681 Imported 26.3% 25.5% 25.2% 2,352 24.6% merchandise Domestically FY2023 Sales
Slide 34: Structural Steel Materials
Structural Steel Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 5,396 5,453 5,517 YoY 5,244 20,867 5,019 19,963 4,847 4,876 +4.5% 4,475 1,712 YoY 507 1,526 471 450 376 380 409 △10.8% 356 285 FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2023
Slide 35: Structural Steel Materials: Profit Analysis
Structural Steel Materials Segment profit or loss analysis (million yen) Quarterly GPM 30.8% manufactured 27.2% 28.1% 27.7% 26.3% 26.8% 23.8% 24.4% in-house Products △98 318 △127 △278 35.7% merchandise 34.6% 34.8% Imported 33.8% 33.6% 1,712 31.9% 32.4% 30.3% 1,526 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 2,716 YoY 10,107 2,467 2,441 2,401 2,478 2,512 9,502 2,370 +6.4% 2,223 121 322 YoY 104 313 85 78 86 +2.6% 57 50 53 FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2023 FY2023 FY2023 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% Gross Profit Margin △20 16.9% 16.8% 98 16.7% 16.7% △70 16.6% 16.6% 16.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 FY2024 FY2024 313 322 26 The number of projects
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 8,371 8,709 YoY 2,198 2,205 2,280 2,085 2,138 +4.0% 1,923 1,746 197 122 86 67 52 42 △3 △20 FY2023 FY2024 △81 △75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2023 FY2023 FY2023 FY2023 FY
Slide 39: Scaffolding Construction: Profit Analysis
Scaffolding Construction Segment profit or loss analysis (million yen) Sales fluctuations by service type (million yen) FY2023 FY2024 Construction sales 4,185 3,643 △17 2,860 2,675 131 1,182 851 696 532 154 301 197 Detached Large properties Bridges/ Rental sales Material sales houses/renovations civ
Slide 40: 6. FY2025 Financial Forecast
6. FY2025 Financial Forecast
Slide 41: FY2025 Consolidated Financial Forecast
FY2025 Consolidated Financial Forecast (million yen) FY2024 FY2025 Change Actual Forecast Amount % Net sales 76,873 81,500 +4,626 +6.0% Gross profit 17,035 18,300 +1,264 +7.4% SG&A expenses 12,362 13,550 +1,187 +9.6% Operating income 4,673 4,750 +76 +1.6% Ordinary income 4,872 4,950 +77 +1.6% Profit
Slide 42: FY2025 Financial Forecast by Segment
FY2025 Financial Forecast by Segment (million yen) FY2024 FY2025 Change Actual Forecast Amount % Industrial 37,188 39,578 +2,390 +6.4% Materials Net sales Segment profit or loss 2,681 2,939 +258 +9.6% Structural 20,867 22,347 +1,480 +7.1% Materials Net sales Steel Segment profit or loss 1,526 1,396
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 mat using recycle
Slide 47: Initiatives: Social
Initiatives: Social Social The 2024 problem in the logistics industry Response to the 2024 problem in the logistics industry Logistics function is as an important element to maintain our In response to the 2024 problem in the logistics industry, we rapid-delivery system, one of the KONDOTEC’s st
Slide 48: 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 Diversity ind
Slide 49: 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 4.0% and looks to
Slide 50: 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 51: 8. Growth Strategies
8. Growth Strategies
Slide 52: 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 53: 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 54: 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 55: 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 56: 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 57: 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 58: 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 59: 9. Shareholder Return
9. Shareholder Return
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 Since initial listing: No decrease in dividends Shareholders can redeem reward points for over 4,000
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 4,032 listed companies … KONDOTEC stock price (yen) Nikkei average stock price (yen) 1,800 42,000 1,500 1,332 35,000 ROE 1,664th 1,200 28,000 Profit 900
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) 76,873 million yen Operating income (million yen) 4,673 million yen 81,500 4,750 4,673 75,447 76,873 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 14/3 15
Slide 64: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 35,920 Net assets (million yen) million yen ROE (%) Target 10 % or more 35,920 33,285 32,066 29,022 11.4 28,387 11.1 10.9 10.8 10.7 10.7 26,756 10.4 10% or more 10.0 24,745 22,719 21,102 7.9 20,231 7.7 18,783 5.4 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22
Slide 65: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 (forecast) Result of Operations (million yen) Net sales 47,991 49,168 50,211 50,410 52,811 57,828 60,599 59,562 66,139 75,447 76,873 81,500 Operating profit 3,271 3,303 3,441 3,516 3,537 3,907 4,
Slide 66: Quarterly Highlights
Quarterly Highlights Consolidated Net sales (million yen) 20,137 20,042 19,193 19,080 18,762 19,102 18,965 17,862 16,971 17,036 16,053 16,326 15,585 15,117 15,492 14,647 14,839 14,978 14,313 14,112 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20/3 21/3 22/3 23/3 24/3 Operating income
Slide 67: Quarterly Highlights: Industrial Materials
Quarterly Highlights Industrial Materials Net sales (million yen) 9,961 10,075 9,536 9,655 9,732 9,175 9,227 9,025 9,237 9,288 9,256 9,234 8,685 8,758 8,692 8,965 8,371 8,591 7,826 8,104 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20/3 21/3 22/3 23/3 24/3 Segment profit or loss (mill
Slide 68: Quarterly Highlights: Structural Steel Materials
Quarterly Highlights Structural Steel Materials Net sales (million yen) 5,396 5,453 5,517 5,244 5,019 4,876 4,847 4,412 4,328 4,475 4,322 4,299 3,835 3,859 3,954 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 20/3 21/3 22/3 23/3 24/3 Segment profit or loss
Slide 69: Quarterly Highlights: Electrical Equipment
Quarterly Highlights Electrical Equipment Net sales (million yen) 2,716 2,465 2,467 2,478 2,512 2,441 2,401 2,323 2,370 2,237 2,226 2,223 2,107 2,101 2,155 2,126 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 20/3 21/3 22/3 23/3 24/3 Segment profit or loss (milli
Slide 70: Quarterly Highlights: Scaffolding Construction
Quarterly Highlights Scaffolding Construction Net sales (million yen) 2,504 2,280 2,198 2,205 2,138 2,070 2,085 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 20/3 21/3 22/3 23/3 24/3 Segment profit or loss (million yen) 122 107 86 67 50 52 42 Q1 Q2 Q3 Q4 Q
Slide 71: GZ KonboTec
GZ KonboTec ~ O 70
Slide 72: Official SNS accounts
Official SNS accounts KONDTEC opened 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 Teleph