Takuma Co., Ltd. · TSE:6013
Takuma — Q3 FY2023 Earnings Presentation
46 slides from Takuma's earnings presentation, Feb 14, 2024
Slide 1: Takuma Co., Ltd. February 14, 2024
Takuma Co., Ltd. February 14, 2024 Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.
Slide 2: Table of Contents
Table of Contents 1. Overview of Q3 FY2023 (Ended 3/2024) Financial Results 2. Financial Forecast for FY2023 (Ended 3/2024) 3. Reference Material Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved. 1
Slide 3: Q3 FY2023 (Ended 3/2024) Summary
Q3 FY2023(Ended 3/2024) Summary Q3 FY2023 Results Orders received Net sales Operating profit ¥138.2 billion ¥104.8 billion ¥6,200 million +¥46.5 billion +¥4.1 billion -¥2,900 million (+50.8%) YoY (+4.2%) YoY (-32.0%) YoY Orders received up owing primarily to orders Sales up for municipal solid waste
Slide 4: 1. Overview of Q3 FY2023 Financial Results
1. Overview of Q3 FY2023 (Ended 3/2024) Financial Results 2. Financial Forecast for FY2023 (Ended 3/2024) 3. Reference Material Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved. 3
Slide 5: Q3 FY2023 Financial Highlights
Q3 FY2023(Ended 3/2024) Financial Highlights Orders received were up owing to an order for a municipal solid waste treatment plant DBO project in the Domestic Environment and Energy Business. Net sales were up in all segments, but profit was down due mainly to the change in the EPC project mix in th
Slide 6: Q3 FY2023 Financial Highlights by Segment
Q3 FY2023(Ended 3/2024) Financial Highlights Q3 FYE 3/2022 Q3 FYE 3/2023 Q3 FYE 3/2024 (Millions of yen) YoY change (FY2021) (FY2022) (FY2023) Orders received Total 108,455 91,631 138,223 +50.8% Domestic Environment and Energy 86,795 65,117 115,031 +76.7% Overseas Environment and Energy 1,510 1,151
Slide 7: Domestic Environment and Energy Business: Orders Received / Order Backlog
Orders received / Domestic Environment and Energy Business Order backlog Orders received up owing to orders for Energy Plants and Water Treatment Plants in addition to a DBO projects for a municipal solid waste treatment plant. Orders received: Up owing to orders for a waste treatment plant DBO pr
Slide 8: Domestic Environment and Energy Business: Net Sales / Operating Profit
Net Sales / Domestic Environment and Energy Business Operating Profit Sales were up, but profit was down due to a change in the EPC project mix as well as the recording of costs for O&M measures at a waste treatment plant under contract in Q2. Net sales: Up owing to an increase in after-sale servi
Slide 9: Domestic Environment and Energy Business: Breakdown by Product / Service
Breakdown by Domestic Environment and Energy Business Product / Service Orders received were up in all sub-segments. Sales were up, owing to an increase in after-sale services at a municipal solid waste treatment plant. Orders received Net sales Order backlog Water Treatment Plants, etc. Water Treat
Slide 10: Domestic Business Main Orders Received: Municipal Solid Waste
Domestic Environment and Energy Business Main Orders Received From Q1 to Q3 of FY3/2024, orders were received for 1 municipal solid waste treatment plant DBO project and 1 large-scale renewal of a sand filtration system for a sewage treatment plant, and 1 sludge treatment facility DBM project. Year
Slide 11: Domestic Business Main Orders Received: Energy Plants
Domestic Environment and Energy Business Main Orders Received From Q1 to Q3 of FY3/2024, orders were received for 5 biomass power plants (FIT), 1 self-consumption project, and 1 EPC project for an industrial waste treatment plant. Scheduled Year Delivered to: Notes Capacity Completion Q1 Company A E
Slide 12: Quarterly Trend in Orders Received / Net Sales
Quarterly trend in Domestic Environment and Energy Business Orders received / Net sales (Reference material) Orders received vary significantly depending on the timing that projects are recorded. Net sales tend to increase going into the fourth quarter. Orders received (quarterly) Net sales (quarter
Slide 13: Overseas Environment and Energy Business: Orders Received / Order Backlog
Orders received / Overseas Environment and Energy Business Order backlog Orders received were up owing primarily to the recording of an additional order for the waste treatment plant project received the previous year in Q2. We will continue going after new construction and renewal projects in addit
Slide 14: Overseas Environment and Energy Business: Net Sales / Operating Profit
Net sales / Overseas Environment and Energy Business Operating profit Net sales were up owing primarily to progress on EPC projects previously ordered in addition to maintenance services. Operating profit also improved. Net sales Operating profit （Millions of yen） Approx. ¥790 million increase （Mill
Slide 15: Package Boiler Business: Orders Received / Order Backlog
Package Boiler Business Orders received / Order backlog Orders received were up owing primarily to orders for large-scale projects. Orders received Order backlog (Q3) （Millions of yen） Approx. ¥640 million increase （Millions of yen） Approx. ¥310 million increase Q3 Q4 7,290 8,000 18,400 20,000 17,92
Slide 16: Package Boiler Business: Net Sales / Operating Profit
Package Boiler Business Net sales / Operating profit Net sales and operating profit were up owing primarily to progress on projects for which orders were already received and completion of large- scale projects. Net sales Operating profit （Millions of yen） Approx. ¥1.4 billion increase （Millions of
Slide 17: Equipment and Systems Business: Orders Received / Order Backlog
Equipment and Systems Business Orders Received / Order Backlog Orders received were down due to the absence of the large-scale order received in the building equipment business in Q2 of the previous year and a decrease in orders for equipment for the semiconductor industry. Although demand for semic
Slide 18: Equipment and Systems Business: Net Sales / Operating Profit
Equipment and Systems Business Net sales / Operating profit Net sales and operating profit were up owing to progress on projects for which orders were already received. Net sales Operating profit （Millions of yen） Approx. ¥860 million increase （Millions of yen） Approx. ¥20 million increase Q3 Q4 Q3
Slide 19: 2. Financial Forecast for FY2023
1. Overview of Q3 FY2023 (Ended 3/2024) Financial Results 2. Financial Forecast for FY2023 (Ended 3/2024) 3. Reference Material Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved. 18
Slide 20: FY2023 Results Forecast
FY2023(Ended 3/2024) Results Forecast No changes from the revised forecast (November 8, 2023) for Q2. Our aim is to maintain orders received at a high level. While sales are expected to be up, profit will be down due mainly to changes in the EPC project mix, increased R&D and human resources investm
Slide 21: FY2023 Results Forecast by Segment
FY2023(Ended 3/2024) Results Forecast by Segment FYE 3/2024 (FY2023) FYE 3/2022 FYE 3/2023 FYE 3/2024 (FY2023) Change from (Millions of yen) Beginning of year (FY2021) (FY2022) Q2 revised forecasts previous forecast forecasts Order received Total 192,244 168,558 170,000 170,000 0 Domestic Environmen
Slide 22: Human Resources Investment, Capital Investment and R&D
Human resources investment, Capital investment and R&D Actively invest in further business expansion in the future. Human resources investment: Strengthen hiring and training of human resources, especially in Construction, Engineering, and Maintenance divisions. Capital investment: Capital inves
Slide 23: Shareholder Return
Shareholder Return We expect to achieve our medium-term target (¥36.0 billion in ordinary profit for the three-year period) despite the expected lower profit compared to the beginning of year forecast. Accordingly, we will increase the annual dividend by ¥5 to ¥48 per share as initially planned. Det
Slide 24: 3. Reference Material
1. Overview of Q3 FY2023 (Ended 3/2024) Financial Results 2. Financial Forecast for FY2023 (Ended 3/2024) 3. Reference Material Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved. 23
Slide 25: 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”. Overseas Municipal Solid Waste Treatment Plant Business Environme
Slide 26: 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 27: 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 28: Business Model: Recording of Net Sales / Order Backlog in DBO
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 mod
Slide 29: Positioning and Financial Targets
13th Medium-Term Management Plan (2021-2023) FY2020 FY2030 Previous vision Vision2030 12th Medium-Term management Plan 13th Medium-Term Management Plan Positioning and Financial Targets First steps towards realizing the vision 2030 Laying the foundations for Ordinary profit Our financial foundations
Slide 30: Medium-to Long-term Roadmap
Medium-to long-term Roadmap Aiming to maintain and expand the EPC business, while striving for steady growth in each business with recurring revenue model businesses as the core drivers. Aiming to expand business in the environment and energy field through new businesses and M&A. Ordinary profit Net
Slide 31: 13th Medium-Term Management Plan Progress
13th Medium-Term Management Plan Progress • Although ordinary profit is expected to fall short of the beginning of year forecast, we expect to achieve the target of ¥36.0 billion for the three-year period. • Lead times in the EPC Business are long, between three and five years, so single-year perfor
Slide 32: Municipal Solid Waste Treatment Plants: External Environment
Domestic Environment and Energy Situation by Segment Municipal solid waste treatment plants Business Strategy 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
Slide 33: Municipal Solid Waste Treatment Plants: Strategy (EPC)
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. Long-term O&M (contract period of 10 years or more) ratio
Slide 34: Municipal Solid Waste Treatment Plants: Strategy (O&M)
Domestic Environment and Energy Situation by Segment Municipal solid waste treatment plants Business Strategy Aiming for sustainable growth of recurring revenue model businesses by strengthening O&M proposals. As of the beginning of FY2023, we had received orders for long-term O&M (contract period o
Slide 35: Energy Plants: External Environment
Domestic Environment and Energy Situation by Segment Business Environment Energy plants Demand for small- and medium-sized biomass power generation, mainly from domestic fuels (such as unused timber), continues, driven by government policies for decarbonization and soaring energy prices. Despite
Slide 36: Energy Plants: Strategy
Domestic Environment and Energy Situation by Segment Energy plants Business Strategy Focus on steady orders for biomass power plants and other energy plants. Since the start of the FIT program in 2012, we have received orders for 78 facilities nationwide. Results Maintenance orders have been receive
Slide 37: Water Treatment Plants: Situation by Segment
Domestic Environment and Energy Situation by Segment Water Treatment Plants Since entering the water treatment field in 1962, we have contributed to solving our customers’ challenges with unique products based on our accumulated technology and expertise. Business In addition to renewal and service l
Slide 38: Power Retail Business: Situation by Segment
Domestic Environment and Energy Situation by Segment Power Retail Business Contributing to stabilizing customers’ electricity rates and reducing greenhouse gas emissions through the procurement and supply of electricity generated at delivered plants. Business Demand is increasing for renewable energ
Slide 39: Overseas Environment and Energy: External Environment
Situation by Segment Business Overseas Environment and Energy Environment Population growth and economic growth in Southeast Asia have increased demand for biomass power generation and waste treatment plants. Demand for the construction of bagasse* combustion boilers for sugar mills is particula
Slide 40: 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 41: Package Boiler and Equipment and Systems Businesses
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 renewal and other work to continue for the time b
Slide 42: Strengthening the Management Foundation: Outline
Strengthening the management foundation Outline Actively invest in further business expansion in the future. Human Resources Partnerships/ R&D Capital investment Investment Digital technologies FY3/2023 (results) FY3/2024 (forecast) FY3/2024 (forecast) 69 people hired 2.0 billion yen 3.6 billion yen
Slide 43: Strengthening the Management Foundation: Human Resources Investment
Human Resources Strengthening the management foundation Investment Strengthen hiring and training of human resources to pass on our greatest strength, our technological capabilities, and expand our resources. Continue hiring and training efforts, especially in Construction, Engineering, and Maintena
Slide 44: Strengthening the Management Foundation: R&D
Strengthening the management foundation R＆D In addition to fine tuning existing technologies, we will strengthen R&D focusing on CCUS and carbon recycling technologies to realize a decarbonized society. R&D roadmap for decarbonization technologies Examples of our technology/R&D Carbon recycling Fuel
Slide 45: Strengthening the Management Foundation: Partnerships / Digital Technologies
Partnerships / Strengthening the management foundation Digital technologies Aiming to develop new businesses and add value to existing businesses by actively using partnerships and digital technology. Partnerships Utilizing digital technology Deepening collaboration with other companies and organiza
Slide 46: Handling of this document
Handling of this document 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 uncerta