Takuma Co., Ltd. · TSE:6013
Takuma — Q3 2024 Earnings Presentation
41 slides from Takuma's earnings presentation, Feb 14, 2025
Slide 1: Takuma Co., Ltd. February 14, 2025
Takuma Co., Ltd. February 14, 2025 Copyright 2025 TAKUMA CO., LTD. All Rights Reserved.
Slide 2: Key Highlights
Key Highlights Profit attributable to Orders received Net sales Operating profit owners of parent Q3 ¥195.6 billion ¥106.3 billion ¥8.7 billion ¥7.2 billion Results +41.5％ +1.5％ +39.0％ +46.4％ YoY YoY YoY YoY +¥57.4 billion +¥1.5 billion +¥2.4 billion +¥2.2 billion FY2024 ¥230.0 billion ¥150.0 billio
Slide 3: Table of Contents
Table of Contents 1. Overview of Q3 FY2024 (Ending 3/2025) Financial Results 2. Financial Forecast for FY2024 (Ending 3/2025) 3. Appendix Copyright 2025 TAKUMA CO., LTD. All Rights Reserved. 2
Slide 4: Q3 FY2024 Financial Highlights
Q3 FY2024 (Ending 3/2025) Financial Highlights Orders received were up owing to orders for municipal solid waste treatment plants (2 DBO projects and 1 primary equipment improvement project) in the Domestic Environment and Energy Business. This marked a record high for the third quarter year-to-da
Slide 5: Q3 FY2024 Financial Highlights by Segments
Q3 FY2024 (Ending 3/2025) Financial Highlights by Segments Q3 FYE 3/2023 Q3 FYE 3/2024 Q3 FYE 3/2025 (Millions of yen) YoY change (FY2022) (FY2023) (FY2024) Orders received Total 91,631 138,223 195,644 +41.5% Domestic Environment and Energy 65,117 115,031 171,674 +49.2% Overseas Environment and Ener
Slide 6: Domestic Environment and Energy Business: Orders received / Order backlog
Orders received / Domestic Environment and Energy Business Order backlog Orders received were up owing to orders for waste treatment plants (2 DBO projects, 1 primary equipment improvement project), 3 energy plants and 1 sludge incineration plant. Order backlog was rising owing to steady orders
Slide 7: Domestic Environment and Energy Business: Net Sales / Operating Profit
Net Sales / Domestic Environment and Energy Business Operating Profit Net sales were down owing primarily to changes in the EPC project mix. Operating profit was up owing primarily to an increase in after-sales service and an elimination of costs for measures at a municipal solid waste treatment
Slide 8: Domestic Environment and Energy Business: Breakdown by Product / Service
Breakdown by Domestic Environment and Energy Business Product / Service Orders received were up owing to an increase in municipal solid waste treatment plants (EPC and after-sales services). Net sales were down owing to decreases in municipal solid waste treatment plants (EPC) and energy plants.
Slide 9: Domestic Environment and Energy Business: Main Orders Received
Domestic Environment and Energy Business Main Orders Received From Q1 to Q3 of FYE 3/2025, orders were received for waste treatment plants (2 DBO projects, 1 primary equipment improvement project), and 1 sludge incineration plant. Year Delivered to: Notes Capacity Scheduled Completion Senboku Envi
Slide 10: Domestic Environment and Energy Business: Main Orders Received (Energy)
Domestic Environment and Energy Business Main Orders Received From Q1 to Q3 of FYE 3/2025, orders were received for 3 biomass power plants. Year Delivered to: Notes Capacity Scheduled Completion Sanyo-Onoda Green Energy Co. EPC Power generation business (Biomass, FIT) 1,990kW 6/2024 Q1 Power Aid M
Slide 11: Domestic Environment and Energy Business: Quarterly Trend
Quarterly Trend Domestic Environment and Energy Business (reference material) Orders received vary significantly depending on the timing that projects are recorded. Net sales tend to increase going into the Q4. Orders received (quarterly) Net sales (quarterly) Although net sales vary depending o
Slide 12: Domestic Environment and Energy Business Topics
Domestic Environment and Energy Business Topics Received an order for a 2MW-class biomass power plant for Joetsu Biomass Power Generation LLC We received an order for design, procurement and trial operation of a biomass power plant (power generation output: 1,990kW) using wood chips (mainly pruned
Slide 13: Overseas Environment and Energy Business: Orders received / Order backlog
Orders received / Overseas Environment and Energy Business Order backlog Orders received were down compared to FYE 3/2024, when we had received an additional offer for new plant construction projects. Orders received Order backlog (Q3) （Millions of yen） Approx. ¥0.24 billion decrease （Millions of
Slide 14: Overseas Environment and Energy Business: Net sales / Operating profit
Net sales / Overseas Environment and Energy Business Operating profit Net sales and operating profit were up owing to progress on new plant projects previously ordered. Approximately ¥0.2 billion of operating profit is due to the foreign exchange translation differences arising from the eliminat
Slide 15: Package Boiler Business: Orders received / Order backlog
Package Boiler Business Orders received / Order backlog Orders received were up due to a continued moderate recovery in demand. Orders received Order backlog (Q3) （Millions of yen） Approx. ¥1.4 billion increase （Millions of yen） Approx. ¥0.88 billion increase Q3 Q4 8,170 9,000 25,000 7,290 8,000 1
Slide 16: Package Boiler Business: Net sales / Operating profit
Package Boiler Business Net sales / Operating profit Net sales and operating profit were up owing to progress on projects previously ordered. Net sales Operating profit （Millions of yen） Approx. ¥0.75 billion increase （Millions of yen） Approx. ¥0.19 billion increase Q3 Q4 Q3 Q4 Q3 Operating Margin
Slide 17: Equipment and Systems Business: Orders Received / Order Backlog
Orders Received / Equipment and Systems Business Order Backlog Orders received decreased in both building equipment business and semiconductor industrial equipment business. Orders received Order backlog (Q3) （Millions of yen） Approx. ¥0.34 billion decrease （Millions of yen） Approx. ¥3.4 billion d
Slide 18: Equipment and Systems Business: Net sales / Operating profit
Net sales / Equipment and Systems Business Operating profit Net sales were up owing to progress on projects of building equipment previously ordered. Operating profit was down due primarily to changes in the project mix. Net sales Operating profit （Millions of yen） Approx. ¥2.0 billion increase
Slide 19: Table of Contents
Table of Contents 1. Overview of Q3 FY2024 (Ending 3/2025) Financial Results 2. Financial Forecast for FY2024 (Ending 3/2025) 3. Appendix Copyright 2025 TAKUMA CO., LTD. All Rights Reserved. 18
Slide 20: FY2024 (Ending 3/2025) Results Forecast
FY2024 (Ending 3/2025) Results Forecast In the Domestic Environment and Energy Business, construction work for plants previously ordered progressed steadily, and recurring revenue model businesses such as maintenance grew steadily. Revenue grew steadily in other business segments as well. Based
Slide 21: FY2024 Results Forecast by Segment
FY2024 (Ending 3/2025) Results Forecast by Segment FYE 3/2023 FYE 3/2024 FYE 3/2025 (FY2022) (FY2023) (FY2024) Previous Forecast Revised Forecast Change from (Millions of yen) Results Results YoY Change Announced on November 8, 2024 Announced on February 14, 2025 Previous Forecast Order received Tot
Slide 22: FY2024 Profit Variance Analysis Forecast
FY2024 (Ending 3/2025) Profit Variance Analysis Forecast Despite an expected increase in research and development expenses, gross profit is expected to increase in all business segments, including the Domestic Environment and Energy business, and therefore, we forecast an increase in operating pro
Slide 23: Shareholder Return: Dividend
Shareholder Return Dividend In accordance with our shareholder return policy, we revised our year-end dividend forecast to 38 yen per share, an increase of 10 yen from the previous forecast. Combined with the interim dividend of 28 yen per share already paid, the annual dividend for the current
Slide 24: Shareholder Return: Share Repurchase
Shareholder Return Share Repurchase We plan to purchase approximately 18 billion yen of treasury shares over the three-year period of the 14th Medium-Term Management Plan (FY2024-FY2026) in order to improve capital efficiency and enhance shareholder returns. Matters related to share repurchase u
Slide 25: Human Resources Investment, Capital Investment and R&D
Human Resources Investment, Capital Investment and R&D Actively invest for further business expansion in the future. Human resources investment: Strengthen hiring and training of human resources, especially in Engineering, Construction and Maintenance divisions. Capital investment: Expected to
Slide 26: Table of Contents
Table of Contents 1. Overview of Q3 FY2024 (Ending 3/2025) Financial Results 2. Financial Forecast for FY2024 (Ending 3/2025) 3. Appendix Copyright 2025 TAKUMA CO., LTD. All Rights Reserved. 25
Slide 27: History
History In 1912, we invented the first boiler in Japan using purely Japanese technology. While improving boiler technology, the company cultivated combustion and water treatment technologies and utilized them to enter the environmental field, such as waste incineration plants. Since then, we have pr
Slide 28: Business Segment
Business Segment Our business is centered on engineering, procurement, and construction (EPC) and after-sales service of waste treatment facilities, biomass power plants, etc. based on the primary themes of environment and energy. Business Segment Key Businesses Municipal Solid Waste Treatment Plant
Slide 29: Business Model
Business Model Domestic Environment and Energy Business Revenue comes primarily from engineering and construction (EPC) and after-sales service (operational management, maintenance, O&M, etc.) of plants. Completion Approx. 2-5 years Approx. 20-30 years EPC after-sales service Recurring revenue model
Slide 30: Performance Trends
Performance Trends In the latter half of the 2000s, we focused on after-sales service, which would provide its earnings base. There has been steady demand for renewal and service life improvement of waste treatment plants and an increase in demand for biomass power plants, resulting in stable net sa
Slide 31: Situation by Segment: Municipal solid waste treatment plants
Domestic Environment and Energy Situation by Segment Municipal solid waste treatment plants Business Environment Demand for renewal and service life improvement will continue due to the aging of waste treatment facilities. We expect renewal demand to continue for the time being. DBO orders are on th
Slide 32: Situation by Segment: Municipal Solid Waste Treatment Plants Strategy
Domestic Environment and Energy Situation by Segment Municipal Solid Waste Treatment Plants Business Strategy Focus on winning ongoing orders through comprehensive proposals tailored to diversifying needs. Steadily landing orders for EPC/O&M. The long-term O&M (contract period of 10 years or more) r
Slide 33: Situation by Segment: Municipal Solid Waste Treatment Plants O&M
Domestic Environment and Energy Situation by Segment Municipal Solid Waste Treatment Plants Business Strategy Aim for sustainable growth of recurring revenue model businesses by strengthening O&M proposals and proposals for regular maintenance work. The Company received orders for long-term O&M (con
Slide 34: Situation by Segment: Energy Plants
Domestic Environment and Energy Situation by Segment Energy Plants We contribute to stabilizing our customers’ businesses and maximizing their revenues through biomass power plants and large-scale plants that supply electricity and heat to their factories. Demand for small- and medium-sized biomass
Slide 35: Situation by Segment: Water Treatment Plants
Domestic Environment and Energy Situation by Segment Water Treatment Plants Contribute to the effective use of energy and decarbonization of sewage treatment facilities through greenhouse gas-reducing and highly energy-saving products. In addition to renewal and service life improvement demand due t
Slide 36: Situation by Segment: Power Retail Business
Domestic Environment and Energy Situation by Segment Power Retail Business Contribute to stabilizing customers’ electricity rates and reducing greenhouse gas emissions through the procurement and supply of electricity generated from renewable energy and non-fossil fuels. Business Demand is increasin
Slide 37: Situation by Segment: Overseas Environment and Energy
Situation by Segment Business Overseas Environment and Energy Environment In addition to population and economic growth, the trend toward decarbonization in Southeast Asia has increased demand for biomass power generation and Energy from Waste plants. In Thailand, demand for Energy from Waste an
Slide 38: Situation by Segment: Overseas Environment and Energy Strategy
Situation by Segment Business Overseas Environment and Energy Strategy Focus on securing continuous orders for biomass power generation plants and Energy from Waste plants and improving the system. Results Promoted the development of a system to win orders via local subsidiaries in Thailand and Taiw
Slide 39: Package Boiler Business / Equipment and Systems
Package Boiler Business / Situation by Segment Equipment and Systems Package Boiler Business Equipment and Systems Domestic market has matured, but we expect a certain level of demand for Building equipment business Semiconductor industrial equipment business renewal and other work to continue for t
Slide 40: Terminology
Terminology Term Definition EPC Engineering, procurement, and construction; one approach we use in our plant construction business. O&M Operation and maintenance; one approach we use in our plant operation business. DBO Design, build, and operate; one approach we use in our plant construction and op
Slide 41: Disclaimer
Disclaimer Information related to performance forecasts, business plans, and related topics included in this document is based on data currently available to the Company and on certain assumptions that are deemed to be reasonable. This information includes elements of risk and uncertainty. Please no