Recomm Co., Ltd. · TSE:3323

Recomm — Q1 FY2025/9 Earnings Presentation

46 slides from Recomm's earnings presentation, Feb 14, 2025

  1. Slide 1: FY 2025/9 Q1 Financial Results

    February 14, 2025 FY 2025/9 Q1 Financial RECOMM Co., Ltd. Results TSE Standard (3323) © 2025 RECOMM Co., Ltd. All rights reserved. 1

  2. Slide 2: Contents

    Contents 1 FY 2025/9 Q1 financial results summary P3 2 Topics （2024.10.1 to 2024.12.31） P12 3 Growth strategy P19 4 Full-year plans and dividends forecasts P25 5 Appendix P35 © 2025 RECOMM Co., Ltd. All rights reserved. 2

  3. Slide 3: FY 2025/9 Q1 financial results summary

    FY 2025/9 Q1 financial results summary 3

  4. Slide 4: FY 2025/9 Q1 financial results summary

    FY 2025/9 Q1 financial results summary Record Record Net sales high Operating income high Income before taxes 3,222 million yen 46 million yen 38 million yen YoY: 112.7% YoY: 2300% YoY: 84.9% Net income Record attributable to high owners of the parent EBITDA (*) 27 million yen 91 million yen YoY: 61

  5. Slide 5: Main causes of changes in operating income

    Main causes of changes in operating income Breakdown of main causes of changes in Increase 増加 decrease 減少 合計 Total (Unit: million yen) operating income 60 FY 2025/9 Q1 2 million yen operating income 50 26 46 Increased -2 40 income TAKNET operating contribution income from M&As 30 Impact of 20 Reduct

  6. Slide 6: FY 2025/9 Q1 financial results summary (results by segment)

    FY 2025/9 Q1 financial results summary (results by segment) (Unit: million yen) FY 2024/9 Q1 FY 2025/9 Q1 Change YoY Net sales 2,858 3,222 +364 112.7% Overseas solutions businesses 1,566 2,049 +483 130.8% Domestic solutions businesses 1,139 999 -140 87.7% BPR business 151 173 +22 114.6% Segment inco

  7. Slide 7: FY 2025/9 Q1 financial results (overseas solutions business)

    FY 2025/9 Q1 financial results (overseas solutions business) (Unit: million yen) FY 2024/9 Q1 FY 2025/9 Q1 Change YoY Net sales 1,566 2,049 +483 130.8% Segment income 78 81 +3 103.8% Net sales Segment income • Increased revenue due to the consolidation of the 2,049 Singapore subsidiary 1,566 • The M

  8. Slide 8: FY 2025/9 Q1 financial results (domestic solutions business)

    FY 2025/9 Q1 financial results (domestic solutions business) (Unit: million yen) FY 2024/9 Q1 FY 2025/9 Q1 Change YoY Net sales 1,139 999 -140 87.7% Segment income 10 -6 -16 - Net sales Segment income 1,139 • Net sales in the direct-sales channel increased by 4% YoY 10 due to efficient sales activit

  9. Slide 9: FY 2025/9 Q1 financial results (BPR business)

    FY 2025/9 Q1 financial results (BPR business) (Unit: million yen) FY 2024/9 Q1 FY 2025/9 Q1 Change YoY Net sales 151 173 +22 114.6% Segment income 11 4 -７ 36.4% Net sales Segment income • While revenues increased due to additional orders and 173 151 major spot transactions from existing customers in

  10. Slide 10: Balance Sheet

    Balance Sheet (Unit: million yen) Total assets: 12,826 million yen Up 181 million yen As of Assets increased by 181 million yen from the end of As of September 30, Change the previous year to 12,826 million yen, primarily December 31, 2024 2024 due to a 186 million yen increase in inventories. Curre

  11. Slide 11: Financial standing: Equity capital ratio, Statement of Cash Flows

    Financial standing: Equity capital ratio, Statement of Cash Flows Cash flow from financing activities was 186 million yen. Equity ratio: 39.5% This included a 324 million yen increase in borrowings and a Remains stable 116 million yen payment in dividends. For the period from For the period from 50.

  12. Slide 12: Topics (2024.10.1 to 2024.12.31)

    Topics (2024.10.1 to 2024.12.31) 12

  13. Slide 13: Contribution of TAKNET SYSTEMS PTE LTD to consolidated financial results

    Contribution of TAKNET SYSTEMS PTE LTD to consolidated financial results Overview of TAKNET and its financial results Past fiscal years' results (Unit: million yen) • TAKNET SYSTEMS PTE LTD, an AI server sales firm in Singapore, 2,190 2,091 became a subsidiary in July 2024. 1,338 • Results: FY2024 n

  14. Slide 14: Promoting strategic business alliances

    Promoting strategic business alliances Entering into a comprehensive business alliance with Kuramoto Manufacturing Co., Ltd. Seeking to build a structure to provide more comprehensive solutions and support the further promotion of business efficiency and digitalization for our customers. Kuramoto Ma

  15. Slide 15: About the Lark integrated multifunctional collaboration tool

    About the Lark integrated multifunctional collaboration tool Realizing a comprehensive business environment based on chat Results are expected in the consolidation and sharing of information, improving business efficiency and productivity, and enhancing communication. Main functions 1. Messaging (Ch

  16. Slide 16: Acquisition of treasury stock

    Acquisition of treasury stock At its meeting on December 3, 2024, the Company Board of Directors resolved to purchase treasury stock as outlined below. Reasons for acquisition 1. To enhance returns to shareholders 2. To improve capital efficiency 3. To execute dynamic capital policies Details of acq

  17. Slide 17: Commencement of sales of automated business-process recording tool

    Commencement of sales of automated business-process recording tool Process Recorder: Automated business-process recording tool Enables automatic preparation of manuals by automatically recording business processes Main features • Automated manual preparation • Voice input • High-precision recording

  18. Slide 18: Initiatives to enhance human capital management

    Initiatives to enhance human capital management Enhancement of HR development Younger employees seconded overseas • Percentage completing 100 hours of training per employee: 95% (FY 2025 figures are planned) (FY 2025 plan: 100%） 8名 • AI skills trainees: 183 (FY 2025 plan: 192) 6名 3名 Global human-res

  19. Slide 19: Growth strategy

    es Ty § ¢ S) _ Growth strategy 25 RECOMM Co., Ltd. All rights reserved. | 19

  20. Slide 20: Basic Strategy: Global Specialized Trading Company Vision

    Basic strategy Basic Strategy: Global Specialized Trading Company Vision Global specialized trading company vision: Accelerating global business growth by proposing solutions to global customers based on state-of-the-art products and services and our strengths in direct marketing Four stages Realizi

  21. Slide 21: Efforts under the global specialized trading company vision (2017–2019)

    Basic strategy: Efforts under the global specialized trading company vision (2017–2019) Trends in consolidated and overseas Trends in consolidated and overseas solutions business sales (unit: JPY million) solutions business operating income (unit: Main initiatives 2019 sales: JPY million) 2017 2019

  22. Slide 22: Efforts under the global specialized trading company vision (2020–2023)

    Basic strategy: Efforts under the global specialized trading company vision (2020–2023) Trends in consolidated and overseas Trends in consolidated and overseas Main initiatives solutions business sales solutions business operating income January 2020 – 2023 sales: Recovered to 96% of 2023 operating

  23. Slide 23: Stages of the vision by country

    Basic strategy: Stages of the global specialized trading company vision by country Accelerating global deployment by advancing to higher business stages in each country Stage 4 Stage 3 New business Products, services Stage 2 creation Local market development New business Stage 1 Customer development

  24. Slide 24: Status of advancement to stage 3 by country

    Status of advancement to stage 3 of the global specialized trading company vision by country September 2023 SLWE joins the Recomm Group Start of entry into the local electrical parts NEXT FUTURE market in Malaysia October 2021 SLWL joins the Recomm Group Start of entry into the local LED July 2024 m

  25. Slide 25: FY 2025/9 Full-year plans and dividends forecasts

    FY 2025/9 Full-year plans and dividends forecasts 25

  26. Slide 26: FY 2025/9 full-year plans: New record highs on all indicators

    FY 2025/9 (full-year plans) New record highs on all indicators (Unit: million yen) FY 2024/9 FY 2025/9 FY 2025/9 FY 2025/9 results (1H plans) (2H plans) (full-year plans) YoY NET SALES OPERATING INCOME Net sales 11,687 6,800 8,000 14,800 126.6% Operating income 269 220 480 700 259.8% 14,800 Income b

  27. Slide 27: FY 2025/9 plans (causes of changes in operating income)

    FY 2025/9 plans (causes of changes in operating income) 1,000 (Unit: million yen) 900 800 +68 700 700 +100 600 +200 500 400 +69 300 269 200 Operating income (+431) 100 - Change in operating income Amount of expense FY 2025/9 operating income of existing business reduction FY 2024/9 operating income

  28. Slide 28: FY 2025/9 plans (by segment)

    FY 2025/9 plans (by segment) (Unit: million yen) FY 2024/9 FY 2025/9 FY 2025/9 FY 2025/9 YoY (Actual) (1H plans) (2H plans) (full-year plans) Net sales 11,687 6,800 8,000 14,800 126.6% Overseas solutions businesses 6,618 4,000 5,000 9,000 136.0% Domestic solutions businesses 4,471 2,400 2,600 5,000

  29. Slide 29: FY 2025/9 plans (overseas solutions business)

    FY 2025/9 plans (overseas solutions business) (Unit: million yen) FY 2024/9 FY 2025/9 FY 2025/9 FY 2025/9 plans YoY (1H plans) (2H plans) Net sales 6,618 4,000 5,000 9,000 136.0% Segment income 342 250 375 625 182.8% 800 Net sales Segment income 700 <Main measures> 10,000 136.0% 600 182.8% • Strengt

  30. Slide 30: FY 2025/9 plans (domestic solutions business)

    FY 2025/9 plans (domestic solutions business) (Unit: million yen) FY 2024/9 FY 2025/9 FY 2025/9 FY 2025/9 plans YoY (1H plans) (2H plans) Net sales 4,471 2,400 2,600 5,000 111.8% Segment income 423 107 188 295 69.6% Net sales 700 Segment income <Main measures> 600 • Enhancing sales while actively pr

  31. Slide 31: FY 2025/9 plans (BPR business)

    FY 2025/9 plans (BPR business) (Unit: million yen) FY 2024/9 FY 2025/9 FY 2025/9 FY 2025/9 (1H plans) (2H plans) YoY plans Net sales 599 400 400 800 135.6% Segment income 30 30 40 70 231.1% Net sales 140 Segment income <Main measures> 1,000 135.6% 120 231.1% • Growing unit prices per existing custom

  32. Slide 32: FY 2025/9 key points

    FY 2025/9 key points 1. Promoting Group management Enhancing sales of global strategic products worldwide (Robo Worker & SPACECOOL) 2. Improving sales productivity Thoroughly saving time not devoted to business discussions and improving contract rates through internal digital transformation activiti

  33. Slide 33: Dividends

    Dividends Dividend: 1.6 yen 1.6 yen/share 1.6 yen/share 1.6 yen/share Commemorat ed dividend 0.5 yen/share 1.0 yen/share 1.1 yen/share 0.0 yen/share FY 2021/9 FY 2022/9 FY 2023/9 FY 2024/9 FY 2025/9 projected © 2025 RECOMM Co., Ltd. All rights reserved. 33

  34. Slide 34: Management goal: Becoming a global leading B2B solutions provider group

    Management goal Becoming a global leading B2B solutions provider group © 2025 RECOMM Co., Ltd. All rights reserved. 34

  35. Slide 35: Appendix

    RECO, ©2025 RECOMM Co., Ltd. Alll rights reserved {os

  36. Slide 36: Management Philosophy

    Management Philosophy Management Philosophy R ・・・ Real Power Rule Focusing on real abilities E ・・・ Enterprising Enterprising thinking C ・・・ Challenge Taking on challenges O ・・・ Open Open management M ・・・ Management Management by all personnel M ・・・ Mind The RECOMM spirit © 2025 RECOMM Co., Ltd. All

  37. Slide 37: Group Management Vision

    Group Management Vision Group Management Vision A&A111+ (Action & Achievement) • The highest returns on investment for our shareholders (No. 1) • The only choice for our customers (Only 1) • The world leader in both quality and quantity (No. 1) + The most attractive group to employees (Best 1) © 202

  38. Slide 38: Company overview

    Company overview Company RECOMM Co., Ltd. name (RECOMM CO., LTD.) Characteristics of employees Established September 30, 1994 Gender Shares listed May 26, 2004 TSE Standard: Securities code 3323 Female 54.6％ Address 25-3 Yoyogi 3-chome, Shibuya-ku, Tokyo Male 45.4％ Representative Hidehiro Ito, Presi

  39. Slide 39: Operating companies in individual businesses

    Operating companies in individual businesses The Group consists of seven operating companies in Japan and 16 overseas in three businesses (as of December 31, 2024) Overseas: 16 facilities in nine countries BPR business Overseas solutions businesses RECOMM Business Solutions (Dalian) *1 RECOMM Tengyu

  40. Slide 40: Company History

    Company History Date Date September 1994 RECOMM Japan Co., Ltd., (now RECOMM Co., Ltd.) established to sell and maintain telecommunications devices and October 2018 Dalian RECOMM shares listed on the OTC market in China office equipment May 1995 Began seeking franchisees in the sales franchise busin

  41. Slide 41: Business domains: Five B2B Solutions

    Business domains: Five B2B Solutions Five B2B Solutions Lessening environmental impact and cutting costs by reducing power consumption and cutting CO2 Results Solution 1 Carbon-neutral emissions by about 60% to 70% solutions Products LED lighting, commercial air conditioning, SPACECOOL Results Offic

  42. Slide 42: Evolution from a sales company to a B2B solutions provider

    Evolution from a sales company to a B2B solutions provider PART 1 2 3 4 5 1994-2004 2005-2009 2010-2014 2015-2019 2020- From founding to IPO Diversification Business reorganization Renewed growth New growth Net sales surpass 10 billion yen FY 2007/9: recorded record-high sales since IPO Launched glo

  43. Slide 43: Overview of overseas solutions businesses

    Overview of overseas solutions businesses ◼ Customers are major firms, since we target sales to the overseas plants of Japan-affiliated firms ◼ Began offering carbon-neutral solutions with the sales of LED lighting in Dalian, China, in October 2015 and in Shanghai in First launched First launched Ap

  44. Slide 44: Overview of domestic solutions businesses

    Overview of domestic solutions businesses ◼ Founded as the first sales franchise business in the industry; listed on the TSE Standard Market nine years and eight months later First launched Began offering cost-saving solutions through ICT devices September 1994 ◼ In February 2014, began offering car

  45. Slide 45: Overview of the BPR business

    Overview of the BPR business ◼ Opened our own outsourcing center in Dalian in October 2003 and began accepting orders from outside customers in October 2009 First launched ◼ Expanded in October 2019 from BPO contracting business for back-office operations to BPR business to support business November

  46. Slide 46: One-stop IT services for carbon neutrality, DX promotion, cybersecurity, anti-infection

    One-stop IT services for carbon neutrality, DX promotion, cybersecurity, anti-infection IT Carbon Business telephones neutrality LED lighting Commercial air Digital multipurpose conditioners printers Antiviral Security cameras Remote work Antivirus IT Cybersecurity OCR DX promotion RPA Digital AI te

RECOMM — Q1 FY2025/9 Earnings Presentation on 6ix