Slide 1: Takuma Co., Ltd. May 26, 2021
Takuma Co., Ltd. May 26, 2021 Copyright 2021 TAKUMA Co.,Ltd. All Rights Reserved.
Slide 2: Contents
Contents ▶ 1 Consolidated Results for the FY2020 ▶2 Reflections on the Previous Medium- and Long-Term Vision and the 12th Medium-Term Management Plan ▶3 New Long-Term Vision and 13th Medium-Term Management Plan ▶4 Consolidated Earnings Forecast for the FY2021 Copyright 2021 TAKUMA Co.,Ltd. All Right
Slide 3: Contents
Contents ▶ 1 Consolidated Results for the FY2020 ▶2 Reflections on the Previous Medium- and Long-Term Vision and the 12th Medium-Term Management Plan ▶3 New Long-Term Vision and 13th Medium-Term Management Plan ▶4 Consolidated Earnings Forecast for the FY2021 Copyright 2021 TAKUMA Co.,Ltd. All Right
Slide 4: Consolidated Results
Consolidated Results • The Group realized sales and profit growth. • It achieved its ordinary profit target of at least 10 billion yen. • The backlog remained high thanks to robust orders. FY2019 FY2020 FY2020 Change Results Initial outlook Results vs. FY2019 Orders received 100M yen 1,488 1,800 1,8
Slide 5: Orders received vs. FY2019
Orders received Orders received remained high because we steadily captured orders for robust demand, primarily from municipal solid waste treatment plants. (100M yen) 2,000 1,798 1,885 101 85 175 174 1,488 8 vs. FY2019 + 397 1,500 7 67 179 Domestic Environment and + 374 13 Energy Overseas Environmen
Slide 6: Backlog vs. FY2019
Backlog The backlog remained high thanks to robust orders in our municipal solid waste treatment plant EPC and DBO businesses. (100M yen) 4,000 3,871 3,309 3,453 vs. FY2019 + 418 Domestic Environment and Energy + 398 Overseas Environment and (3) 2,000 Energy 3,771 +5 3,222 3,373 Package Boiler Equip
Slide 7: Net sales vs. FY2019
Net sales Net sales rose thanks to steady progress in the construction of previously ordered plants, primarily municipal solid waste treatment plants. (100M yen) 1,500 1,467 1,344 82 1,219 78 169 11 88 178 vs. FY2019 + 123 11 169 1,000 Domestic Environment and 30 Energy + 126 Overseas Environment an
Slide 8: Operating profit vs. FY2019
Operating profit Operating profit rose thanks to sales growth and cost reductions. That said, we posted provision for loss on construction contracts for some projects. (100M yen) 116 140 3 104 9 96 1 8 3 6 9 vs. FY2019 +8 Domestic Environment and Energy +8 Overseas Environment and +0 70 Energy 124 P
Slide 9: Contents
Contents ▶ 1 Consolidated Results for the FY2020 ▶2 Reflections on the Previous Medium- and Long-Term Vision and the 12th Medium-Term Management Plan ▶3 New Long-Term Vision and 13th Medium-Term Management Plan ▶4 Consolidated Earnings Forecast for the FY2021 Copyright 2021 TAKUMA Co.,Ltd. All Right
Slide 10: Medium- and Long-Term Vision and Medium-Term Management Plans to Date
Medium- and Long-Term Vision and Medium-Term Management Plans to Date In order to achieve our vision of JPY 10.0 billion yen in ordinary profit in FY2020, we have worked to build structures capable of consistently earning ordinary profit of at least JPY 10.0 billion through three Medium-Term Managem
Slide 11: Reflections on the 12th Medium-Term Management Plan (1 of 3)
Reflections on the 12th Medium-Term Management Plan (1 of 3) Positioning of the 12th Medium-Term Management Plan • Final stage of the medium- to long-term vision that began in FY2012. • Strive to build a resilient business and management foundation enabling Takuma to respond to future changes in t
Slide 12: Reflections on the 12th Medium-Term Management Plan (2 of 3)
Reflections on the 12th Medium-Term Management Plan (2 of 3) 12th Medium-Term Management Plan results and issues • We implemented our business strategies in accordance with our basic policies and priority measures. • We achieved a certain measure of success, despite the fact that some issues remai
Slide 13: Reflections on the 12th Medium-Term Management Plan (3 of 3)
Reflections on the 12th Medium-Term Management Plan (3 of 3) Financial targets and results under the previous Corporate Vision and the 12th Medium-Term Management Plan • Previous Corporate Vision : FY2020 ordinary profit JPY10.0 billion → JPY11.0 billion • 12th Medium-Term Management Plan : Total
Slide 14: Contents
Contents ▶ 1 Consolidated Results for the FY2020 ▶2 Reflections on the Previous Medium- and Long-Term Vision and the 12th Medium-Term Management Plan ▶3 New Long-Term Vision and 13th Medium-Term Management Plan ▶4 Consolidated Earnings Forecast for the FY2021 Copyright 2021 TAKUMA Co.,Ltd. All Right
Slide 15: Long-term Vision "Vision 2030" (1 of 2)
Long-term Vision “Vision 2030” (1 of 2) Sustainable growth by implementing ESG management Resolving challenges faced by customers and society, with a focus on renewable energy utilization and environmental protection Technologies and services • Expanding clean energy • Realizing stable treatment of
Slide 16: Long-term Vision "Vision 2030" (2 of 2)
Long-term Vision “Vision 2030” (2 of 2) Aim to maintain our role of being an indispensable presence in society as a leading company in the field of renewable energy utilization and environmental protection. Sustainable growth alongside our customers and society FY2030 Technologies and services Resol
Slide 17: Financial Targets of the 13th Medium-Term Management Plan
Financial Targets of the 13th Medium-Term Management Plan Lay the foundations for additional growth and take the first steps under the 13th Medium-Term Management Plan as we prepare to realize the Vision 2030 target of ordinary profit of JPY 20.0 billion. FY2020 FY2030 Previous vision Vision2030 12t
Slide 18: Policies of the 13th Medium-Term Management Plan
Policies of the 13th Medium-Term Management Plan Strengthening conventional businesses by reinforcing the Group's management foundation and at the same time accelerating its response to future environmental changes. Strive to realize sustainable growth alongside customers and society by implementing
Slide 19: Implementing ESG Management
Implementing ESG Management Striving to satisfy all stakeholders and realize the Group’s sustainable growth while strengthening ESG initiatives through business activities Takuma Group Materiality ※ E Environment • Helping combat climate change Realization of a sustainable society • Conserving res
Slide 20: Strategies by Business (1 of 4)
Strategies by Business (1 of 4) Provide products and services that resolve challenges faced by customers and society in every business. 1 Municipal solid waste treatment plants 2 Water treatment plants Improving quality and strengthening Ensuring a sustained flow of orders for profitability in t
Slide 21: Strategies by Business (2 of 4)
Strategies by Business (2 of 4) 3 Energy plants 4 Power retail business Expanding our market presence Expanding the scale of the business by through steady orders for biomass enhancing products in areas such as power plants renewable energy and CO2-free power and developing new sales channels
Slide 22: Strategies by Business (3 of 4)
Strategies by Business (3 of 4) 5 Overseas businesses 6 New businesses Ensuring a sustained flow of orders for Developing businesses that help biomass power plants enhance the Group’s services in order Expanding the flow of orders for to realize a decarbonized, carbon- maintenance neutral soci
Slide 23: Strategies by Business (4 of 4)
Strategies by Business (4 of 4) 7 Package boilers 8 Equipment and systems Maintaining and expanding the scale of Expanding the flow of orders by orders in the existing domestic package improving sales and construction boiler market capability (equipment) Expanding overseas businesses Expandi
Slide 24: Contents
Contents ▶ 1 Consolidated Results for the FY2020 ▶2 Reflections on the Previous Medium- and Long-Term Vision and the 12th Medium-Term Management Plan ▶3 New Long-Term Vision and 13th Medium-Term Management Plan ▶4 Consolidated Earnings Forecast for the FY2021 Copyright 2021 TAKUMA Co.,Ltd. All Right
Slide 25: Consolidated Earnings Forecast for FY2021
Consolidated Earnings Forecast for FY2021 • We expect to see continued robust demand for waste incineration plants and biomass power plants. • We will strive to secure profits on par with FY2020, even as revenue declines due to changes in the mix of projects in the EPC business. *The forecast does n
Slide 26: Anticipated Effects of the COVID-19 Pandemic during FY2021
Anticipated Effects of the COVID-19 Pandemic during FY2021 While the pandemic impacted some businesses during FY2020, the impact on overall operations during FY2021 will be slight. All businesses • We will reduce the impact of the pandemic on orders and sales by switching to remote work, shift work,
Slide 27: Conclusion
Conclusion Reflecting its goal of maintaining its role of being an indispensable presence in society as a leading company in the field of renewable energy utilization and environmental protection, the Takuma Group will continue to contribute to the resolution of social issues and the realization of
Slide 28: Supplementary Materials
Supplementary Materials Copyright 2021 TAKUMA Co.,Ltd. All Rights Reserved. 27
Slide 29: Company Outline
Company Outline Name Takuma Co., Ltd. Established June 10, 1938 Representative Hiroaki Nanjo, President and CEO Head office 2-2-33 Kinrakujicho, Amagasaki-shi, Hyogo Prefecture location Capital 13.3 billion yen Main EPC and after-sales service for environmental and energy plants, including waste Bus
Slide 30: Management Principles
Management Principles Company Motto Value Technology, Value People, Value the Earth Management Principles Takuma will strive for social contribution, corporate value enhancement, long-term corporate development and the satisfaction of all stakeholders by providing goods and services that are needed
Slide 31: Takuma's Origins
Takuma’s Origins Founder Tsunekichi Takuma invented the Takuma boiler in 1912 based on a unique design following a period of painstaking research, making a significant contribution to the development of Japanese industry through its performance that overwhelmed the foreign technologies that dominate
Slide 32: History
History Japan’s largest waste incineration plant delivered 2014 2012 Mass production began on “Vacotin Heater” the world’s first vacuum- 2010 Feed-in tariff (FIT) program launched. Bagasse-fired type hot water heater 1999 Supply to hotels and hospitals boiler, the first product of nationwide 1998 Ac
Slide 33: Takuma Group Strengths
Takuma Group Strengths Along with the technologies and expertise that the Takuma Group has improved and accumulated since its founding, the relationships of trust that the Group has developed with longstanding customers by providing after-sales service and solutions are its greatest strengths and th
Slide 34: Segments
Segments Domestic Environment Overseas Environment and Energy Business and Energy Business • Municipal Solid Waste Treatment Plant • Waste treatment plants Waste incineration plants Energy from Waste plants. Biogas recovery plants Recycling plants • Energy plants Biomass power plants • Water treatme
Slide 35: Domestic Environment and Energy Business: Municipal Solid Waste Treatment Plant Business
Domestic Environment and Energy Business (Related SDGs) Municipal Solid Waste Treatment Plant Business We supply the following products and services to local governments: • EPC*1 and DBO*2 businesses for waste treatment facilities Stoker-type incinerators (waste incineration plants) Methane fermen
Slide 36: Market Environment - Municipal solid waste treatment plants
Market Environment - Municipal solid waste treatment plants Replacement and service life extension demand continues due to aging. Facility age Market size (Tons per day) More than 5,000 40 2020 and beyond: 5% More than Takuma forecast 4,000 30 20 or less 17% 37% 3,000 2,000 More than 20 42% 1,00
Slide 37: Market Environment - DBO approach gaining traction
Market Environment - Municipal solid waste treatment plants The DBO approach is gaining traction in bidding for facility construction. Treatment capacity of total order in the market DBO ratio (Tons per day) (%) 5,000 100 4,000 75 3,000 50 2,000 25 1,000 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 38: Number of DBO projects received rising steadily
Market Environment - Municipal solid waste treatment plants The number of DBO projects which Takuma received is rising steadily. Operation FY Duration of 2007 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Name operation Orders received in Nishichita 20 yr.
Slide 39: Topic - Komaoka Incineration Plant DBO order
Topic - Municipal solid waste treatment plants Takuma received a DBO project order for Komaoka Incineration Plant from the City of Sapporo. Contributing to sustainable community development through a DBO project designed to realize Sapporo’s concept of the Treatment capacity: 600 tons per day (300
Slide 40: Domestic Environment and Energy Business: Energy plants
Domestic Environment and Energy Business (Related SDGs) Energy plants We supply the following products and services to private-sector businesses: • Biomass power plant EPC*1 • Industrial waste treatment plant EPC • O&M, operation management, and maintenance We have extensive experience in construc
Slide 41: Market Environment - Biomass power plants
Market Environment - Biomass power plants Trends in biomass power generation under the FIT program • In FY2016, the government adopted a purchase price reduction (from 24 yen to 21 yen) for the category of plants using general wood fuel with output of at least 20,000 kW for FY2017. The number of f
Slide 42: Market Environment - Transition from FIT to FIP
Market Environment - Biomass power plants Transition of some plants from the FIT program to the FIP program • During FY2022, biomass power plants with output of 10,000 kW or greater will transition from the FIT program to a feed-in premium (FIP) program. The program, which reflects a midpoint in t
Slide 43: Domestic Environment and Energy Business: Water treatment plants
Domestic Environment and Energy Business Water treatment plants (Related SDGs) We supply the following products and services, primarily to water treatment plants operated by local governments: • Sewage sludge power generation system EPC (Step grate stoker incinerators) • Moving-bed sand filtration
Slide 44: Topic - Energy plants and water treatment plants orders
Topic - Energy plants and water treatment plants Takuma received a biomass power plant EPC order from SGET Toki Biomass Godo Kaisha. The customer made a favorable evaluation of Takuma based on our extensive experience in delivering more than 620 systems, our products’ ability to accommodate a dive
Slide 45: Topic - Initiatives to realize a carbon-free society
Topic - Initiatives to realize a carbon-free society CO2 supply system (t-CarVe®) delivered to Sara Inc. received the Japan Machinery Federation’s Chairman’s Award Takuma’s system supplies large volumes of safe, economical CO2 by removing hazardous components from the combustion gases from a bioma
Slide 46: Other segments
Other segments (Related SDGs) Overseas Environment and Energy Business Sales and after-sales service of biomass power plants, waste treatment plants Package Boiler Business Manufacturing and sales of package boiler • Vacuum-type Hot Water Heaters (Vacotin Heater) • Once-through Boilers (Equos) •
Slide 47: Capital investment - New TAKUMA Building
Topic Capital investment - New TAKUMA Building [Training Center] Bolstering Takuma’s offices and training facility (2018 to 2020) We built the New TAKUMA Building next to the Head Office to address issues including insufficient office space. • Creating a sustainable facility that makes extensive u
Slide 48: Capital investment - New Harima Factory
Topic Capital investment - New Harima Factory Increasing production capacity Accommodating a diverse range of needs Purpose against the backdrop of increasing use of • Passing down our commitment to renewable energy high-quality manufacturing • High boiler demand • Larger boiler size • A sustainab
Slide 49: Growth Investments - Acquisition of Techno Links Inc.
Topic Growth investments - M&As Acquisition of Techno Links Inc. Techno Links is a manufacturer whose operations encompass the design, manufacture, installation, and after-sales service of environmental recycling equipment*. We’re striving to build sorting systems that can achieve a higher recycli
Slide 50: Breakdown of Consolidated Results for Domestic Environment and Energy Business
Supplementary Material • Breakdown of Consolidated Results for Domestic Environment and Energy Business (100M yen) Orders FY2020 Net sales Backlog received Municipal Solid Waste Treatment Plant 1,414 911 2,928 Energy Plant 54 208 730 Water Treatment Plant, others 136 87 112 Total 1,605 1,207 3,771 C
Slide 51: Handling of this document
Handling of this document Information related to performance forecasts, business plans, and related topics included in this document or otherwise provided during financial briefings is based on data currently available to the Company and on certain assumptions that are deemed to be reasonable. This