Recomm Co., Ltd. · TSE:3323

Recomm — Q2 FY2025/9 Earnings Presentation

59 slides from Recomm's earnings presentation, May 15, 2025

  1. Slide 1: FY 2025/9 Q2 Financial Results

    May 15, 2025 FY 2025/9 Q2 Financial Results RECOMM Co., Ltd. TSE Standard (3323) © 2025 RECOMM Co., Ltd. All rights reserved. 1

  2. Slide 2: Contents

    Contents 1 FY 2025/9 Q2 financial results summary P3 2 Topics （2024.10.1 to 2025.3.31） P12 3 Full-year plans and dividends forecasts P20 4 Growth strategy P29 5 Summary of medium-term management plan and progress thereof P34 6 Appendix P39 © 2025 RECOMM Co., Ltd. All rights reserved. 2

  3. Slide 3: FY 2025/9 Q2 financial results summary

    FY 2025/9 Q2 financial results summary 3

  4. Slide 4: FY 2025/9 Q2 financial results summary

    FY 2025/9 Q2 financial results summary Sales revenue Operating profit 6,617 million yen 193 million yen Unadjusted Same period Change +15 million yen 178 million yen Same period Change +1,116 million of previous year (Rate of change) （+8.3%) of previous 5,501 million yen (Rate of yen Adjusted * year

  5. Slide 5: Main causes of changes in adjusted operating profit

    Main causes of changes in adjusted operating profit (Unit: million yen) 200 25 193 77 150 100 79 50 34 - △22 Change in operating profit of Reduction of officer compensation FY 2025/9 Q2 existing business Reduction of personnel costs Operating profit FY 2024/9 Q2 Changes in amount due to M&A Reductio

  6. Slide 6: FY 2025/9 Q2 financial results summary (results by segment)

    FY 2025/9 Q2 financial results summary (results by segment) (Unit: million yen) FY 2024/9 Q2 FY 2025/9 Q2 Change YoY Sales revenue 5,501 6,617 +1.116 120.3% Overseas solutions businesses 3,042 4,263 +1,221 140.1% Domestic solutions businesses 2,169 2,035 (134) 93.8% BPR business 289 319 +29 110.2% S

  7. Slide 7: FY 2025/9 Q2 financial results (overseas solutions business)

    FY 2025/9 Q2 financial results (overseas solutions business) (Unit: million yen) FY 2024/9 Q2 FY 2025/9 Q2 Change YoY Sales revenue 3,042 4,263 +1,221 140.1% Segment profit 118 237 +119 199.9% Sales revenue Segment profit • The effects of adding a Singapore subsidiary to the consolidation 4,500 4,26

  8. Slide 8: FY 2025/9 Q2 financial results (domestic solutions business)

    FY 2025/9 Q2 financial results (domestic solutions business) (Unit: million yen) FY 2024/9 Q2 FY 2025/9 Q2 Change YoY Sales revenue 2,169 2,035 (134) 93.8% Segment profit 240 43 (197) 18.0% Adjusted segment profit 40 43 +3 107.2% • Results in the wholesale channel were down 6.2% from the Sales reven

  9. Slide 9: FY 2025/9 Q2 financial results (BPR business)

    FY 2025/9 Q2 financial results (BPR business) (Unit: million yen) FY2024/9 FY 2024/9 Q2 Q2 FY2025/9 FY 2025/9 Q2 Q2 Change Change YoY YoY Sales revenue Sales revenue 289 2,361 319 2,303 +30 (57) 110.2% 97.6% Segment profit Segment profit 25 (1) 14 38 (11) +41 57.2% - Sales revenue Segment profit 350

  10. Slide 10: Balance Sheet

    Balance Sheet (Unit: million yen) Previous consolidated Current interim consolidated Total assets: 12,487 million yen Down 158 million yen fiscal year accounting period Change Assets were down 158 million yen from the end of the previous September 30, 2024 March 31, 2025 year to 12,487 million yen d

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

    Financial standing: Equity ratio, Statement of Cash Flows Cash of 138 million yen was used in operating activities due to such factors as an increase in accounts receivable - trade associated with higher sales Equity ratio: 38.3% in March. Cash of 151 million yen was used in financing activities tha

  12. Slide 12: Topics (2024.10.1 to 2025.3.31)

    Topics (2024.10.1 to 2025.3.31) 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 • TAKNET SYSTEMS PTE LTD, an AI server sales firm in Singapore, became a (Unit: million yen) 2,500 2,190 2,091 subsidiary in July 2024. 2,000 • Results: FY

  14. Slide 14: Promoting strategic business alliances: Lark collaboration tool

    Promoting strategic business alliances About the Lark integrated multifunctional collaboration tool An extensive customer base of 60,000 diverse firms The ability to propose solutions reflecting the customer's perspective as Lark users •Customer relationship management (CRM) Factories Professional •

  15. Slide 15: Acquisition of treasury stock

    Acquisition of treasury stock We purchased treasury stock under the following December 2, 2024, resolution of the Board of Directors Details of acquisition (December 3, 2024, news release) Item Details Number of shares to be acquired Up to 1,500,000 shares (1.85% of total shares issued and outstandi

  16. Slide 16: 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

  17. Slide 17: Initiatives to enhance human capital management 1

    Initiatives to enhance human capital management 1 Younger employees seconded Enhancement of HR development overseas • Percentage completing 100 hours of training per employee: 95% (FY 2025 (FY 2025 figures are planned) plan: 100%） 10 8 8 6 • AI skills trainees: 183 (FY 2025 plan: 192) 6 3 4 2 Global

  18. Slide 18: Initiatives to enhance human capital management 2: 2025 new graduate hires

    Initiatives to enhance human capital management 2: 2025 new graduate hires April 01, 2025 Ten new graduates joined the Company • Professional training was conducted in April followed by measures that included role-playing and practical tele- appointment training and customer visits in May and June.

  19. Slide 19: Celebrating our 30th anniversary

    Topics: 30th anniversary of Company founding Celebrating our 30th anniversary A ceremony was held on April 19 to mark the 30th anniversary of the Company's founding, attended by longstanding business partners, long-term employees, and their families © 2025 RECOMM Co., Ltd. All rights reserved. 19

  20. Slide 20: FY 2025/9 Full-year plans and dividends forecasts

    FY 2025/9 Full-year plans and dividends forecasts 20

  21. Slide 21: FY 2025/9 full-year plans: New record highs on all indicators

    FY 2025/9 (full-year plans) New record highs on all indicators SALES (Unit: million yen) REVENUE FY 2025/9 FY 2025/9 FY 2025/9 FY 2024/9 FY 2025/9 (1H plans) (1H actual) vs. Plans (2H plans) YoY 14,800 (results) (full-year plans) 11,687 Sales revenue 6,800 6,617 97.3% 8,183 11,687 14,800 126.6% FY 2

  22. Slide 22: FY 2025/9 plans (causes of changes in operating profit)

    FY 2025/9 plans (causes of changes in operating profit) 1,000 (Unit: million yen) 900 800 +62 700 +100 700 600 +200 500 Main details of reduced selling and administrative expenses 400 +69 • Lower officer compensation • System integration 300 269 • Other expenses 200 100 Operating profit (+431) - Cha

  23. Slide 23: FY 2025/9 plans (by segment)

    FY 2025/9 plans (by segment) (Unit: million yen) FY 2025/9 FY 2025/9 FY 2025/9 FY 2025/9 (1H plans) (1H actual) vs. Plans (2H plans) (full-year plans) YoY Sales revenue 6,800 6,617 97.3% 8,183 14,800 126.6% Overseas solutions 4,263 106.6% 4,737 businesses 4,000 9,000 136.0% Domestic solutions 2,035

  24. Slide 24: Second-half initiatives to achieve the full-year plans

    Second-half initiatives to achieve the full-year plans for the year ending September 2025 1. Enhancing sales of global strategic products worldwide (Robo Worker & SPACECOOL) Increasing operating P/H through expanding the SPACECOOL product lineup and strengthen the quantity of sales activities Expand

  25. Slide 25: FY 2025/9 plans (overseas solutions business)

    FY 2025/9 plans (overseas solutions business) (Unit: million yen) FY 2025/9 FY 2025/9 FY 2025/9 FY 2025/9 vs. Plans YoY (1H plans) (1H actual) (2H plans) full-year plans Sales revenue 4,000 4,263 106.6% 4,737 9,000 136.0% Segment profit 250 237 94.8% 388 625 182.7% <Second-half measures> • Strengthe

  26. Slide 26: FY 2025/9 plans (domestic solutions business)

    FY 2025/9 plans (domestic solutions business) (Unit: million yen) FY 2025/9 FY 2025/9 FY 2025/9 FY 2025/9 vs. Plans YoY (1H plans) (1H actual) (2H plans) full-year plans Sales revenue 2,400 2,035 84.8% 2,965 5,000 111.8% Segment profit 107 43 40.3% 252 295 69.7% <Second-half measures> • Expanding sa

  27. Slide 27: FY 2025/9 plans (BPR business)

    FY 2025/9 plans (BPR business) (Unit: million yen) FY 2025/9 FY 2025/9 FY 2025/9 FY 2025/9 vs. Plans YoY (1H plans) (1H actual) (2H plans) full-year plans Sales revenue 400 319 79.8% 481 800 133.8% Segment profit 30 14 46.7% 56 70 233.3% <Second-half measures> • Growing customer P/H through enhanced

  28. Slide 28: 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. 28

  29. Slide 29: Growth strategy

    es Ty § ¢ S) _ Growth strategy 25 RECOMM Co., Ltd. All rights reserved. | 20°

  30. Slide 30: 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 profits and services and our strengths in direct marketing Four stages Speciali

  31. Slide 31: Global specialized trading company vision: Stage by country

    Global specialized trading company vision: Stage 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 Stage 1 Customer development New business capture Developing one-stop develo

  32. Slide 32: Status of advancement to stage 3 by country

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

  33. Slide 33: Introduction of strategic products

    Global specialized trading company vision: Introduction of strategic products 2020 2024 Air purifiers ReSPR Radiative cooling Acquired exclusive sales material SPACECOOL rights in eight overseas Launch of domestic markets and overseas sales 2023 2024 Began exclusive sales of the Japanese Began handl

  34. Slide 34: Summary of medium-term management plan and progress thereof

    Summary of medium-term management plan and progress thereof （FY 2025/9 to FY 2027/9） © 2025 RECOMM Co., Ltd. All rights reserved. 34

  35. Slide 35: Goals: FY 2027/9 targets

    Goals FY 2027/9 targets Sales revenue Ratio of operating ROE CAGR profit to sales revenue (Return On Equity) 20％ 10％ 20％ or higher or higher or higher © 2025 RECOMM Co., Ltd. All rights reserved. 35

  36. Slide 36: Vision: Progress of sales DX × M&A

    Vision: Progress of sales DX × M&A M&A Sales DX subsidiaries Promoting digital transformation (DX) of sales Transplanting sales DX Growing Groupwide through sales activities to new Group firms earnings foundations based on a customer added through M&As relationship management (CRM) system Progress i

  37. Slide 37: Priority initiatives by individual business

    Priority initiatives by individual business Overseas solutions businesses Domestic solutions businesses BPR business • National human-resource • Establishment of new • New development development development sales methods • Increasing percentage of • More precise targeting of specializing in specifi

  38. Slide 38: 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. 38

  39. Slide 39: Appendix

    APPENDEX 39

  40. Slide 40: Company overview

    Company overview Company name RECOMM Co., Ltd. Characteristics of employees As of March 31, 2025 (RECOMM CO., LTD.) Gender Established September 30, 1994 Shares listed May 26, 2004 TSE Standard: Securities code 3323 Female 55％ Male 45％ Address 25-3 Yoyogi 3-chome, Shibuya-ku, Tokyo Representative Hi

  41. Slide 41: 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 March 31, 2025) Overseas: 16 facilities in nine countries BPR business Overseas solutions RECOMM Business Solutions (Dalian) *1 businesses RECOMM Tengyuan

  42. Slide 42: RECOMM by the numbers

    RECOMM by the numbers Year of listing by Established year Listing year Actual result of M&As Chinese subsidiary 1994 2004 2018 23 domestic and overseas acquisitions and sales Began the first sales Listed on the Osaka Shares of subsidiary Recent cross-border franchise business in Securities Exchange

  43. Slide 43: Company History

    Company History 2015 2018 2021 1994 2004 ⚫ Company established in Japan to ⚫ Shares of Chinese subsidiary listed on ⚫ Acquired shares in Sin Lian Wah ⚫ Established to sell and maintain ⚫ Shares listed on the Hercules Market develop and sell security products as a the OTC market in China Lighting of

  44. Slide 44: Business overview (product lineup)

    Business overview (product lineup) A comprehensive producer of optimal office environments We offer the following product lineup as a B2B solutions provider. IT solutions Carbon-neutral solutions BPR* Provision of IT devices and cybersecurity services Helping corporate customers to achieve carbon Pr

  45. Slide 45: Our competitive advantages

    Our competitive advantages 1 Global one-stop solutions Deepening relations of trust with customers • Advancing into eight countries overseas • Offering consistent products and services in every country and building long- • BPO contracting also available in addition to IT devices and eco products las

  46. Slide 46: 2025-2027 Medium-Term Management Plan

    2025-2027 Medium-Term Management Plan 46

  47. Slide 47: Basic strategy: Global specialized trading company vision

    2025-2027 Medium-Term Management Plan 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 profits and services and our strengths in

  48. Slide 48: Goals

    2025-2027 Medium-Term Management Plan Goals ⚫ We will do business aiming to achieve the following three targets by FY 2027/9. Sales revenue Ratio of operating ROE CAGR profit to sales revenue (Return On Equity) 20％ 10％ 20％ or higher or higher or higher 48

  49. Slide 49: Issues and policies for the new Medium-Term Management Plan

    2025-2027 Medium-Term Management Plan Issues and policies in working to formulate the new Medium-Term Management Plan targets ⚫ We will address delays in product and service development and customer development, the main reasons we failed to achieve the previous Medium-Term Management Plan's target

  50. Slide 50: Vision for sustained business growth: sales DX × M&A

    2025-2027 Medium-Term Management Plan Issues and policies in working to formulate the new Medium-Term Management Plan targets ⚫ We will build a structure able to achieve efficient sales activities even with limited staff, through sales DX. We also will transplant this system to M&As to increase thei

  51. Slide 51: Sales DX overview

    2025-2027 Medium-Term Management Plan Sales DX overview ⚫ We will link data to the CRM system in a short timeframe and thoroughly implement sales based on the system. ⚫ The aim is to improve all three aspects of sales, human-resource development, and product development through sales activities base

  52. Slide 52: Priority measures in domestic businesses

    2025-2027 Medium-Term Management Plan Priority measures in domestic businesses ⚫ In domestic businesses, we will develop new businesses, increase the percentage of stock business sales, and increase customer satisfaction. ⚫ We will establish target sales for each measure and shift toward business mo

  53. Slide 53: Priority measures in overseas businesses

    2025-2027 Medium-Term Management Plan Priority measures in overseas businesses ⚫ We will target firms in each market through development of national human resources and more precise marketing. ⚫ We will accelerate strategies through developing human resources capable of communicating the high qualit

  54. Slide 54: Priority measures at overseas M&As

    2025-2027 Medium-Term Management Plan Priority measures at overseas M&As ⚫ We will aim to improve business results further through synergies leveraging the advantages of M&As and RECOMM. ⚫ The RECOMM Group will promote development of customer firms in each market via local Japan-affiliated firms and

  55. Slide 55: Priority measures in the DX business (RPA)

    2025-2027 Medium-Term Management Plan Priority measures in the DX business (RPA) ⚫ We will promote solutions matched to industry needs through both RPA and BPO based on more precise targeting. ⚫ We also will promote market development leveraging BPR proposals combining both BPO and RPA. Main strateg

  56. Slide 56: Priority measures in administrative sections

    2025-2027 Medium-Term Management Plan Priority measures in administrative sections ⚫ We will improve productivity by revising workflows in existing businesses and eliminating waste in operations. ⚫ We will shift toward administrative sections that generate profits by promoting management through opt

  57. Slide 57: Business model: One-stop provider of five solutions

    Business model: One-stop provider of five solutions from IT to carbon neutrality, DX, security, and anti-infection IT Carbon Business neutrality telephones LED lighting Commercial air Digital multipurpose conditioners printers Antiviral Security cameras Remote work Antivirus IT Cybersecurity DX OCR

  58. Slide 58: 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 FY 2007/9: recorded record-high sales revenue since IPO Launched global specialized trading c

  59. Slide 59: Forward-looking statements

    Forward-looking statements Information other than historical facts in the descriptions in this document or made orally are forward-looking statements prepared based on certain assumptions. These reflect management's judgment based on information available at the present time, and they include risks

RECOMM — Q2 FY2025/9 Earnings Presentation on 6ix