Trusco Nakayama Corporation · TSE:9830
Trusco Nakayama — Q1 2022 Earnings Presentation
44 slides from Trusco Nakayama's earnings presentation, Apr 28, 2022
Slide 1: Business Performance Data Analysis, First Quarter
The 60th Business Year Business Performance Data Analysis Fiscal Year Ending December 2022 First Quarter Published by: Securities code: 9830 Atsushi Shimozu, General Manager of the Corporate Planning Division / Miki Fujitani, Manager of the Corporate Planning and IR Section / Minori Naito, Corporate
Slide 2: Table of Contents
Table of Contents 60th Business Year, Fiscal Year Ending December 2022 First Quarter P5-9 A: Company-wide Business Performance P10-19 B: Sales Performance P20-24 C: Financial and Other Performances P25-32 D: Key Indicators P33-36 E: 60th Management Plan P37-40 F: ESG Information P41-44 G: References
Slide 3: Company overview
Company overview Founding May 15, 1959 Tetsuya Nakayama, President Chairman, Nakayama Visually Impaired Welfare Foundation Representative Vice president, Japan Federation of Machine Tool Distributors Associations President, Osaka Machine Appliance Wholesaler Cooperative Tokyo Head Office (Minato-ku,
Slide 4: Business flow
Business flow We are a specialized trading company that purchases professional tools from our suppliers and sells them to machine tool dealers, internet order companies, general hardware mass discounters, and other customers. Through us, professional tools can be delivered quickly, smoothly, and rel
Slide 5: A. Company-wide Business Performance
A. Company-wide Business Performance P6 A-1. Accounting highlights P7 A-2. [Consolidated] Business performance P8 A-3. [Consolidated] Monthly sales P9 A-4. [Consolidated] Monthly sales by sales route 5 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 6: A-1. Accounting highlights
A-1. Accounting highlights <Global and Domestic Affairs> ▮ Global and domestic economic climate ・Economic climate of businesses worsened due to soaring resource prices, weak yen, and the impact of COVID-19 ・The Ukraine crisis is a situation that requires caution due to its uncertain outlook ▮ Domest
Slide 7: A-2. [Consolidated] Business performance
A-2. [Consolidated] Business performance FYE December 31, 2022 Fiscal Year Ending December 2022 1st Quarter First Quarter Change YoY Change YoY Budget change from Actual results Rate Actual results Rate Budget Rate (amount) Change from budget budget (%) Net sales 57,623 million yen － 61,159 million
Slide 8: A-3. [Consolidated] Monthly sales
A-3. [Consolidated] Monthly sales Orders are constantly placed for consumables used in factories. As such, we place focus on the sales per day. Our sales increase during the peak periods of March when many companies close their accounts. Sales per month (million yen) Year-on-year change (%) January
Slide 9: A-4. [Consolidated] Monthly sales by sales route
A-4. [Consolidated] Monthly sales by sales route ▮ Factory route ▮ e-business route Net sales (million yen) Year-on-year change (%) January February March April May June July August September October November December Actual results Budget ▮ Home center route Net sales (million yen) Year-on-year cha
Slide 10: B. Sales Performance
B. Sales Performance P11 B-1. [Consolidated] Business performance by sales route P12 ・Factory route P13 ・e-business route P14 ・Home center route P15 ・Business performance of subsidiaries P16 B-2. [Non-consolidated] Analysis of sales P17 B-3. [Non-consolidated] Sales by category of goods P18 B-4. [No
Slide 11: B-1. [Consolidated] Business performance by sales route
B-1. [Consolidated] Business performance by sales route FYE December 31, 2021 FYE December 31, 2022 1st Quarter 1st Quarter Gross Ordinary Gross profit Net sales profit Net sales Ordinary income margin income margin Change Budget Actual Actual Actual YoY YoY from Actual YoY Actual YoY Sales route Sh
Slide 12: B-1. Factory route
B-1. [Consolidated] Business performance by sales route: Factory route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 1st Quarter 1st Quarter Gross Gross Net sales profit margin Net sales profit margin Sales route Actual YoY Actual YoY Actual results Share Actual results Share resul
Slide 13: B-1. e-business route
B-1. [Consolidated] Business performance by sales route: e-business route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 1st Quarter 1st Quarter Gross Gross Net sales profit margin Net sales profit margin Sales route Actual YoY Actual YoY Actual results Share Actual results Share re
Slide 14: B-1. Home center route
B-1. [Consolidated] Business performance by sales route: Home center route ▮ Sales by industry ▮ Change in sales earned via home center route ▮ Change in sales earned via pro-tool shops 3,000 2,802 Unit: million yen, % Full year budget +25 .0 Unit: million yen, % 19,455 million yen 2,403 00 2,500 +2
Slide 15: B-1. Business performance of subsidiaries
B-1. [Consolidated] Business performance by sales route: Business performance of subsidiaries ▮ Non-consolidated sales TRUSCO NAKAYAMA CORPORATION TRUSCO NAKAYAMA CORPORATION TRUSCO NAKAYAMA CORPORATION (non-consolidated) (THAILAND) LIMITED (INDONESIA) LIMITED YoY YoY Amount Rate Amount Rate Amount
Slide 16: B-2. [Non-consolidated] Analysis of sales
B-2. [Non-consolidated] Analysis of sales (Unit: million yen) Net sales up 3,491 million yen Rise in demand due to recovery Decrease in Decrease in other in capital construction (including Rise in demand due expenditure, etc. goods adjustments) 1Q of to recovery of FY 2022 the manufacturing industry
Slide 17: B-3. Sales by category of goods
B-3. [Non-consolidated] Sales by category of goods A recovery of production operations led to a rise in sales of products (large category 4, 7) related to factory production and to capital expenditures. A revision to the law that introduces an obligation to wear fall arrest systems increased demand
Slide 18: B-4. Changes in sales by category of goods
18 TRUSCO NAKAYAMA Investor Relations (Unit: million yen) ★: COVID-19 related products ★Sterilization and B-4. [Non-consolidated] Changes in sales by category of goods hygiene goods Dust mask Scaffold platform Connection terminals ★Working gloves Mesh palettes Truck sheets Anti-slip gloves Hanging h
Slide 19: B-5. Sales of private brand (PB) goods
B-5. [Non-consolidated] Sales of private brand (PB) goods Cutting tools 1.6% Production ▮ Change in sales of PB goods (Unit: million yen) Full year budget: processing goods 46.6 billion yen 3.6% Office and housing facility Research equipment Construction management 10.4% goods (+5.2%) equipment 9.0%
Slide 20: C. Financial and Other Performances
C. Financial and Other Performances P21 C-1. [Consolidated] Selling, general and administrative expenses (SGA) P22 [Consolidated] Details of selling, general and administrative expenses (SGA) P23 C-2. [Consolidated] Financial statements and financial indicators P24 C-3. [Consolidated] Capital expend
Slide 21: C-1. Selling, general and administrative expenses
C-1. [Consolidated] Selling, general and administrative expenses (SGA) Unit: million yen Other ( ) YoY change changes Depreciation Supplies 2022 +172 △37 expenses (2022) Salary and (+7.4％) (△2.2％) △19 SGA for bonus (△16.6％) 1Q Commission +109 Freight and fee (+4.7％) packing +129 expenses (+26.3％) Ma
Slide 22: C-1. Details of SGA expenses
C-1. [Consolidated] Details of selling, ▮ Main factors of increase ( ) YoY change [Salary and bonus] general and administrative expenses ・ Base salary, performance-based salary (-31 million yen) (SGA) (Unit: million yen, %) ・ Part-time employees salaries and bonuses (+77 million yen) FYE December 31
Slide 23: C-2. Financial statements and financial indicators
C-2. [Consolidated] Financial statements and financial indicators ▮ Balance Sheet (As of March 31, 2022) Unit (million yen) ▮ Statement of cash flows Item Amount Item Amount (Assets) (Liabilities) 単位：百万円 Unit: million yen Current assets 118,292 Current liabilities 43,455 令和３年(2021年) 1st Quarter of 令
Slide 24: C-3. Capital expenditures
C-3. [Consolidated] Capital expenditures ▮ 60th planned expenditure: approx. 7,153 million yen (Unit: million yen) Actual Expected Details of major capital expenditures in 2022 expenditures expenditures for 1Q for 2Q to 4Q Buildings Planet Osaka warehouse construction, Planet East Kanto extension, r
Slide 25: D. Key Indicators
D. Key Indicators P26 D-1. Goods P27-28 D-2. Sales P29-30 D-3. Logistics P31 D-4. Digital P32 D-5. Human resources 25 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 26: D-1. Key indicators (goods)
D-1. Key indicators (goods) ▮ TRUSCO Orange Book.Com ▮ Number of items in inventory: 506,928 items Of these, number of goods automatically Number of items featured: 2,799,031items adopted: 10,210 items Product search site with all the information you need Automatic stocking of hot-selling products t
Slide 27: D-2. Key indicators (sales)
D-2. Key indicators (sales) ● Change in the number of companies participating ▮ Orange Commerce in Orange Commerce (Trusco’s electronic central Purchasing support system for users, which purchasing system) streamlines the procurement process Sales to companies participating in Orange Commerce (100 m
Slide 28: D-2. MRO Stocker
D-2. Key indicators (sales) ▮ MRO Stocker (use-first-pay-later tools) Introduced to 391 companies as of the end of March 2022 MRO Stocker is a tool version of a business model that has been popular in Japan for many years, "okigusuri" (use-first-pay-later medicine). It achieves the ultimate environm
Slide 29: D-3. Key indicators (logistics)
D-3. Key indicators (logistics) ▮ Composition ratio by delivery category (by number of shipping lines) User visits0.3% Delivery to Route shipments Route to shipments 2021 1Q distributors distributors to users 17.9% 9.8% 71.3% Distributor visits 0.7% Delivery to Route shipments to Route shipments 202
Slide 30: D-3. Key indicators (logistics)
D-3. Key indicators (logistics) ▮ Number of items in inventory and ▮ [Non-consolidated] Changes in inventory inventory shipment rate disposal and inventories 2017 2018 2019 2020 2021 Inventory disposal (million yen) 41 39 42 50 55 Inventories (100 million yen) 318 370 427 406 416 Disposal rate (%) 0
Slide 31: D-4. Key indicators (digital)
D-4. Key indicators (digital) ▮ AI-based estimation system "Swift Estimator" Automate quotations with AI Promotes automation of quotations through special price optimization that automatically calculates fair prices for products on a regular basis based on the performance of orders and quotations. T
Slide 32: D-5. Key indicators (human resources)
D-5. Key indicators (human resources) ▮ Number of Employees [Consolidated] ▮ Average age and annual income As of March 31, 2022 (Unit: persons) Female Male Total YoY change Average annual income Average age (years) Executives 1 9 10 △1 (10,000 yen) Executive officers 0 1 1 △1 Female Male Entire Care
Slide 33: E. 60th Management Plan
E. 60th Management Plan P34 E-1. [Consolidated] Management plan P35 E-2. [Consolidated] Quarterly business performance and budget (quarterly) P36 E-3. [Consolidated] Quarterly business performance and budget (cumulative) 33 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Invest
Slide 34: E-1. [Consolidated] Management plan
E-1. [Consolidated] Management plan ◆ Budgeting policy The forecast is used as the entire company’s budget, which is the total of the "annual budget of each branch prepared by the branch manager throughout Japan." The branch managers, who are familiar with their market, formulate their respective br
Slide 35: E-2. Quarterly business performance (quarterly)
E-2. [Consolidated] Quarterly business performance (quarterly) ▮ Fiscal Year Ending December 2022 First Quarter (Quarterly) 1st Quarter (-1 day) 2nd Quarter (±0 day) 3rd Quarter (+3 days) 4th Quarter (+1 day) Budget Share YoY change Budget Share YoY change Budget Share YoY change Budget Share YoY ch
Slide 36: E-2. Quarterly business performance (cumulative)
E-2. [Consolidated] Quarterly business performance (cumulative) ▮ Fiscal Year Ending December 2022 First Quarter [Cumulative] 1st Quarter (-1 day) 2nd Quarter (-1 day) 3rd Quarter (+2 days) Full year (+3 days) Year-on- Budget Share YoY change Budget Share YoY change Budget Share YoY change Budget Sh
Slide 37: F. ESG Information
F. ESG Information P38 F-1. TRUSCO "Gentleness, to the future ..." Project P39 F-2. Material issues P40 F-3. Sustainability indicators 37 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 38: F-1. TRUSCO "Gentleness, to the future ..." Project
F-1. TRUSCO "Gentleness, to the future ..." ▮ TRUSCO "Gentleness, to the future ..."Project We have been making various environmental efforts under our environmental philosophy "Gentleness for the Future" since 1998, based on our desire "to be a global environment-friendly company so that our small
Slide 39: F-2. Material issues
F-2. Material issues ▮ Material Issues — To be a sustainable company with low environmental impact On the basis of its basic TSV policy, the Company identified the material issues it faces for sustainability. The Company will address these issues through its business with a view towards the establis
Slide 40: F-3. Sustainability indicators
F-3. Sustainability indicators ▮ TRUSCO power generation installations ▮ CO₂ emissions (solar and wind power) at 19 locations (as of the end of 2021) Annual power generation in 2021 Scope1 1,941.4t-co₂ 2,604,757kWh Renewable energy power self-sufficiency 16.5％ Scope2 7,154.2t-co₂ ▮ Disclosure of Sco
Slide 41: G. References
G. References P42 G-1. Stock information P43 G-2. Information on other companies in the same industry P44 G-3. The Company's sales index and industrial production index 41 ©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 42: G-1. Stock information
G-1. Stock information ▮ Shareholder information (Unit: persons) ▮ Abolition of Shareholder Benefit Program 2019 2019 2020 2020 2021 2021 End of End of End of End of End of End of [Announced on August 21, 2020] June December June December June December We introduced the Shareholder Benefit Program i
Slide 43: G-2. Index comparison in the industry
G-2. Index comparison in the industry ▮ Performance of trading companies and direct sales companies (listed companies) in the same industry Trading companies in the machine tools industry include the following companies, but they operate differently in the wholesale and retail sectors, and each hand
Slide 44: G-3. The Company's sales index and industrial production index
G-3. The Company's sales index and industrial production index ▮ Changes in the Company's sales index and industrial production index TRUSCO sales index Industrial production index 2015 2016 2017 2018 2019 2020 2021 (Consolidated) (Consolidated) (Consolidated) * Index standard: Year 2015 set as 100