Takamiya Co., Ltd. · TSE:2445
Takamiya — Q2 FY2020 Earnings Presentation
35 slides from Takamiya's earnings presentation, Nov 26, 2019
Slide 1: Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 31, 2020
Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 31, 2020 Takamiya Co., Ltd. Notice: This document is an excerpt translation of the original Grand Front Osaka, Tower B, 27F, 3-1 Oofuka-cho, Kita-ku, Osaka, Japanese document and is only for reference purposes. 530-001
Slide 2: Company Overview of Takamiya Co., Ltd.
Company Overview of Takamiya Co., Ltd. Trade name Takamiya Co., Ltd. Incorporation June 21, 1969 Representative Representative director, Kazumasa Takamiya Capital 1,050,114,385 yen Number of employees Consolidated : 1,261; Non-consolidated : 682 (As of end-September, 2019) Registered head office Gra
Slide 3: TOPICS
TOPICS Notice Regarding Amendments Notice Regarding Issuance of to Performance Forecasts and New Shares, Disposal of Aug. 26, 2019 to Dividend Forecasts Treasury Stock, and Offering of Shares Notice Regarding Amendments to Performance Forecasts and to Divi dend Forecasts Oct. 28, 2019 Notice Regardi
Slide 4: Upward revision of 2Q consolidated earnings forecast
The 2nd quarter of the year ended March 31, 2020 upward revision consolidated earnings forecast Profit Operating Ordinary attributable Earnings （Unit：million yen） Net sales income income to owners of per share parent Previous Forecast (A) 21,200 1,180 1,060 710 16.56 yen Revised Forecast (B) 22,090
Slide 5: Summary of consolidated performance: business overview
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) 1.1 Apr. ~ Sep., 2019: Business overview [Sales business] Sales of temporary equipment maintaining steady growth – Largely robust around sales of the Iq System and related equipment [Rental business] Surpassing break-eve
Slide 6: Summary of consolidated performance
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) Consolidated Results 2Q FY Mar., 2020 Results 2Q FY Mar., 2020 Results 2Q FY Mar., 2020 Results % change （Unit：million yen） Sales ratio Sales ratio Sales ratio （y/y） Net sales 22,090 － 22,097 － 20,734 － +6.6% Gross profi
Slide 7: Net sales
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) 1.3 Net sales Increased by 1,363 million yen (+6.6% YoY): Rental business segment contributed; Overseas large- scale unprofitable projects passed a peak. 前年同期比 +6.6% YoY +6.6% (Unit : million yen) 2019/11/26 Page 7
Slide 8: Operating income
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) 1.4 Operating income Increased by 826 million yen (+76.0% YoY): Revenues from rental business increased; Overseas unprofitable projects passed a peak. YoY +76.0% (Unit : million yen) 2019/11/26 Page 8
Slide 9: EBITDA
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) 1.5 EBITDA(Operation income + Depreciation) Increased by 831 million yen (+24.1% YoY): Mainly thanks to higher operating income, despite depreciation (mainly of assets for rent) remaining mostly level. YoY +24.1% (Unit :
Slide 10: Sales by segment
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) 1.6 Sales by segment (compared to the same period of the previous year) Double-digit increase in earnings of both Rental and Sales business segments. 2Q FY Mar., 2019 2Q FY Mar., 2020 YoY (million yen) Net sales Net sale
Slide 11: Operating income by segment
1. Summary of consolidated performance (consolidated period: Apr. ~ Sep., 2019) 1.7 operating income by segment (compared to the same period of the previous year) Double-digit increase in every segmental operating income. Improved operating income ratios in Rental and Overseas business segments. 2Q
Slide 12: Sales business: factors for increase/decrease YoY
2. Sales business 2.1 Factors for increase/decrease YoY Net sales: +915 million yen (increased) （ Unit : million yen ） With full-swing popularization of the next ge neration scaffolding, business of temporary equipment especially the Iq System made g ood progress, and results of construction eq uipm
Slide 13: Sales business: comparison with the previous year
2. Sales business 2.2 Comparison with the previous year Sales of Temporary equipment made good progress due to demand for renewal of the next generation scaffolding. Environment-related and other segments maintained steady growth. 8,626 2,957 4Q 2,201 778 5,377 3Q 2,062 920 1,205 2Q 2,296 3,243 875
Slide 14: Prevalence of the Iq System
2. Sales business 2.3 Prevalence of the Iq System Major rental business operators started to fully introduce the next generation scaffolding, which would lead to larger demands for equipment renewal, but on the other hand, competition is going to overheat. （ Unit : million yen ） Sales performance of
Slide 15: Prevalence of the Iq System
2. Sales business 2.4 Prevalence of the Iq System Market has shifted to the next generation scaffolding, so sales expansion has been sought by synergy with rental business. Prevalence of the Iq System Prevalence of the next （Unit : millions of ㎡） generation scaffolding （Unit : million ㎡） 590 532 Sha
Slide 16: Rental Business: comparison with the previous year
3. Rental Business 3.1 Comparison with the previous year Net sales: +1,504 million yen (in creased) Rented amount (utilization rate) of equipment to customer stay ing at high level from the beginning of the period has led to more procee ds from rental fees. In addition, ord er-taking of materials an
Slide 17: Rental Business: equipment utilization rates
3. Rental Business 3.2 Comparison with the previous year *Occupancy rate is at the top of 3Q every year The Iq System maintained high utilization rate, and also business of equipment for civil engineering (e.g., falsework) made good progress, maintaining high level of utilization. Trend of average e
Slide 18: Rental Business: ratio of sales by area
3. Rental Business 3.3 Ratio of Sales by Area Following 1Q, sales relating to civil engineering in Chubu block made good progress,and other bases nationwide maintained steady growth as well. FY Mar., 2018 FY Mar., 2019 1Q FY Mar., 2020 3.6% 4.0% 3.9% 12.5% 13.0% 13.9% Tohoku Kanto 26.8% 27.3% 27.1%
Slide 19: Overseas business: comparison with the previous year
4. Overseas business 4.1 Comparison with the previous year Net sales: (832) million yen (decr eased) Because a large project of sol ar panel mounting frames the order f or which was received by our subsidi ary in Korea was completed, resultin g in decreased revenues. But at the s ame time business i
Slide 20: Overseas business: sales ratio by segment
4. Overseas business 4.2 Sales Ratio by Segment Although sales ratio of overseas segment declined, that segment contributed to the consolidated operating income by improving its operational content. Overseas Overseas Overseas Business Business Sales Business Sales Sales 14.7% Business 13.6% Business
Slide 21: Change in Consolidated Balance Sheet
5. Change in Consolidated Balance Sheet Fund-raising (disposing of treasury stock and capital increase) contributed to increase in net assets by 3,111 million yen. Equity ratio is 30.1% (it was 26.0% at the end of the previous term). 【Assets】 Investments and other assets Intangible assets Current as
Slide 22: Statements of cash flows
6. Statements of cash flows Op-CF provided higher profit, and revenues increased thanks to decrease in purchase of assets for rent and other factors. Issuance of new shares and disposal of treasury provided revenues of 2,213 million yen. （Unit：million yen） 【Cash flows from operating activities】 2Q F
Slide 23: Status of shareholder return
7. Status of shareholder return Forecasted divided for the second half is revised from "7 yen" to "8 yen", so it is forecasted as "14 yen" for the full term, namely increase by 3 yen YoY (commemorative dividend of 2 yen + 1 yen that takes achievements into account). FY Mar., 2020 FY Mar., 2017 FY Ma
Slide 24: Full-term performance forecasts
Full-term performance forecasts 2019/11/26 Page 24
Slide 25: Amendments to full term consolidated performance forecasts
8. Amendments to full term consolidated performance forecasts Amendments to full term consolidated performance forecasts * No change in the performance forecasts for the second half ("actual results in the first half + initial plan for the second half") Previous YoY “Reference” Revised Forecast FY E
Slide 26: Forecasts for the second half
9. Full-term performance forecasts 9.1 Forecasts for the second half （October-March）YoY Although total return YoY is lower as compared to the first half, each step income continues to be expected to increase by double-digit. 2Q FY Mar., 2020 Results 2Q FY Mar., 2020 forecasts YoY forecasts for the s
Slide 27: Challenges for the second half and onwards
9. Full-term performance forecasts 9.2 Challenges for the second half and onwards ［Sales］ • Next generation scaffolding is going to prevail in full swing, and renewal demand will be vigorous • Demand for agricultural greenhouses towards disaster recovery (Kanto area) ［Rental］ • Construction works To
Slide 28: Our measures for the challenges
9. Full-term performance forecasts 9.3 Our measures for the challenges ［Sales］To make the "Iq System" a de facto standard 〈Temporary equipment〉 Multifaceted suggestion-based sales activities for the Iq System, such as share-boosting, rental, construction, and technologies 〈Temporary equipment〉 To es
Slide 29: Measures for the challenges (investment-related)
9. Full-term performance forecasts 9.4 Measures for the challenges (investment-related) Domestic /overseas structural enhancement (Capital investment) towards post-“Tokyo 2020” and higher profitability ［Domestic］ • Opened Niigata-Nagaoka Center in July, to reorganize bases in Niigata area • Opened H
Slide 30: About land acquisition in Amagasaki city
About land acquisition in Amagasaki city Hanshin Expressway Route 5 tentative name) Hyogo-Amagasaki Center Osaka • Located in Amagasaki Phoenix business premise Prefecture • Land area: about 58,000 m2 • Adjacent to harbor facilities • Good access to central Osaka City, Osaka Bay development site Sak
Slide 31: ESG Information: Disclosure
10. ESG Information 10.1 Disclosure • Video streaming of Financial Results Briefing (4 ~ 7 days after the Briefing) • Disclosure of English versions of Summary of Financial Results, Results Briefing Materials, and Timely Disclosure Release (partly) (7 ~ 10 days after disclosing Japanese version/TDne
Slide 32: Approaches to flourishing/fostering human resources
10. ESG Information 10.2 Approaches to flourishing/fostering human resources Promoting "Human centered capitalism" style management and measures centered on human resources • Promoting in-house projects centered on mid-level/young employees • Incentive reward according to the degree of KPI attainmen
Slide 33: Social/Disaster-prevention/Environmental contributions by our business
10. ESG Information 10.3 Social/Disaster-prevention/Environmental contributions by our business Originally, our rental business started from the viewpoint of effective use of limited resources. That field has now spread to various products and services. Percentage of workers who can walk through wit
Slide 34: Social contribution by products/services
10. ESG Information 10.4 Social contribution by products/services Support for agriculture Infrastructure maintenance Seismic countermeasure Flood countermeasure and repair and disaster mitigation G-Castle AOS工法 Oct-Brace Tiger-dam Green house Construction method for Buckling constraint brace Waterba
Slide 35: IR contact
IR contact HP Company ： Takamiya Co., Ltd. name Grand Front Osaka, Tower B, 27F, Address ： 3-1 Oofuka-cho, Kita-ku, Osaka, For Investor 530-0011, Japan HP ： https://www.takamiya.co/en/ For Investor ： https://www.takamiya.co/en/ir/ Japan ： +81-(0)6-6375-3918 Phone FAX ： +81-(0)6-6375-8827 CONTACT ： T