Takashima & Co., Ltd. · TSE:8007
Takashima & — Q2 FY2023 Earnings Presentation
32 slides from Takashima &'s earnings presentation, Nov 30, 2023
Slide 1: Fiscal Year Ending March 31, 2024 (FY23) Second Quarter Financial Briefing
Notice: This document is translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Fiscal Year Ending March 31, 2024(FY23) Second Quarter Financial B
Slide 2: Contents
Contents 1| FY23 2Q Financial Highlights 2| FY23 Consolidated Performance Forecast 3| Shareholder Return 4| Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market ©2023 Takashima & Co., Ltd. 2
Slide 3: Introduction - Our Current Situation
Introduction - Our Current Situation ➢ For us, this year is the third year of our plan to meet the criteria for maintaining our listing in the new market classification (A Plan to Meet the Criteria), in which we decided to change the direction of our business from solid management to sustainable gro
Slide 4: 1. FY23 2Q Financial Highlights
1. FY23 2Q Financial Highlights ©2023 Takashima & Co., Ltd.
Slide 5: Executive Summary
Executive Summary ➢ Financial results with increased sales and profit Net Sales Operating Profit Ordinary Profit Net Profit attributable to owners of parent ¥42,010M ¥1,018M ¥1,171M ¥720M YoY +8.2% YoY+70.6% YoY +68.6% YoY +41.5% ➢ Revised consolidated forecasts for the fiscal year ending March 31,
Slide 6: Consolidated Performance P/L
Consolidated Performance P/L ✓ Net sales increased 8.2% year on year to 42,010 million yen due to strong sales in the construction supply and industrial materials segments, despite lower sales in the electronics and devices segment. ✓ Operating profit increased 70.6% YoY to 1,018 million yen. ✓ Ordi
Slide 7: Consolidated Performance B/S
Consolidated Performance B/S The end of FY22 The end of 2Q of FY23 (Mar.31, 2023) (Sep. 31, 2023) Total Assets:¥53,060M ¥6,568M Total Assets:¥59,628M Equity ratio:36.8% -2.2pt Equity ratio:34.6% (Unit: Millions of Yen) (Unit: Millions of Yen) Current liability Current liability 27,585 Current assets
Slide 8: Consolidated Performance B/S: Assets, Main Factors of Change
Consolidated Performance B/S (Unit: Millions of yen) FY22 FY 23 2Q Amount of change Ratio of change Assets Current assets Cash and deposits 7,791 5,709 -2,082 -26.7% Notes and accounts receivable - trade, 26,260 27,823 1,563 6.0% and contract assets Main Factors of Change Total current assets 41,440
Slide 9: Consolidated Performance B/S: Liabilities, Main Factors of Change
Consolidated Performance B/S （Unit: Millions of yen） FY22 FY23 2Q Amount of change Ratio of change Liabilities Current liabilities Notes and accounts payable trade 15,277 16,238 960 6.3% Electronically recorded obligations – operating 5,735 5,487 -248 -4.3% Short-term borrowings 3,548 7,875 4,326 12
Slide 10: Consolidated Performance C/F
Consolidated Performance C/F (Unit: millions of yen) FY22 2Q FY23 2Q Amount of change Cash flows from operating activities Profit before income taxes 775 1,359 584 Depreciation 261 346 85 Amortization of goodwill － 187 187 Loss (gain) on sale of investment securities -110 -301 -190 Decrease (increas
Slide 11: Net sales configuration by segment
Net sales configuration by segment FY23 2Q Net Sales ¥42,010M 62.6 19.5 17.6 0.2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Construction Supply Industial Materials Electronic Devices Other Construction Supply Segment Industrial Materials segment Electronic Devices Segment The company handles a vari
Slide 12: Briefing by Segment: Construction Supply
Briefing by Segment: Construction Supply ➢ Overall construction supply segment sales increased 17.4% to 26,313 million yen. ➢ Segment profit increased 966.4% to 544 million yen （Unit: Millions of yen） Net sales 30,000 Amount FY22 2Q FY23 2Q YoY of change 25,000 20,000 Construction Materials 11,793 1
Slide 13: Briefing by Segment: Industrial Materials
Briefing by Segment: Industrial Materials ➢ Overall sales in the industrial materials segment increased 3.8% to 8,198 million yen. ➢ Segment profit increased 252.8% to 232 million yen. Net sales （Unit: Millions of yen） 9,000 8,000 Amount 7,000 FY22 2Q FY23 2Q YoY of change 6,000 5,000 Textile-relate
Slide 14: Briefing by Segment: Electronic Devices
Briefing by Segment: Electronic Devices ➢ Overall sales in the Electronic Devices and Components segment declined 12.0% to 7,401 million yen. ➢ Segment profit declined 56.3% to 184 million yen. Net sales 10,000 （Unit: Millions of yen） 8,000 Amount FY22 2Q FY23 2Q YoY 6,000 of change Device 4,000 Ass
Slide 15: Real Estate Leasing Segment
Real Estate Leasing Segment ➢ No change in real estate owned by the Company from the previous period, and both net sales and segment profit remained unchanged. （Unit: Millions of yen） Net sales 150 Amount of FY22 2Q FY23 2Q YoY change 100 50 Segment net sales 97 96 -0 -0.9% 0 FY22 2Q FY23 2Q Segment
Slide 16: 2. FY23 Full-year Consolidated Performance Forecast
2. FY23 Full-year Consolidated Performance Forecast ©2023 Takashima & Co., Ltd.
Slide 17: FY23 Consolidated Performance Forecast
FY23 Consolidated Performance Forecast ➢ We revised our forecasts upward, taking into account the acquisition of Gansu Corporation in June 2023 and our performance in the second quarter of the fiscal year ending March 31, 2024. （Unit: Millions of yen） Results for FY23 FY23 Amount of Ratio of Amount
Slide 18: Revision of consolidated forecasts by segment for FY23
Revision of consolidated forecasts by segment for FY23 ➢ We revised forecasts for construction supply and industrial materials segments. （Unit: Millions of yen） FY23 FY23（B） Amount of Ratio of Amount of Result for FY22 Ratio of change Former Revised change change change (C) (%) forecast（A） forecast
Slide 19: 3. Shareholder Return
3.Shareholder Return ©2023 Takashima & Co., Ltd.
Slide 20: Shareholder Return
Shareholder Return Consolidated dividend payout ratio of 40% or more - Total return ratio of 50% Basic Policy Lower limit of total return amount: 500 million yen Transition of dividend per share and dividend payout ratio （円） （%） Total return ratio 52.8% 54.3% 50% 60 60.0 47.9 47.1 Year- 50 45.1 50.0
Slide 21: 4. Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market
4. Our Current Status to Meet the Continuous-listing Criteria of Tokyo Stock Exchange Prime Market ©2023 Takashima & Co., Ltd.
Slide 22: Progress on the Investment Limits Set in a Plan to Meet the Criteria
Progress on the Investment Limits Set in a Plan to Meet the Criteria - The company has already invested 8.95 billion yen through the second quarter of the fiscal year ending March 31, 2024, out of a total investment limit that has been increased to over 10 billion yen. - Investments with investment
Slide 23: Results of M&As (Consolidation of a Subsidiary)
Results of M&As (Consolidation of a Subsidiary) New Energy Distribution System (Dec. 2022) - One of the nation's leading renewable energy-related construction and installation companies with a nationwide construction and installation network. Sinbou Edix Co., Ltd (Dec. 2022) - Based in Nagano Prefec
Slide 24: Overview of Gansui Corporation, which became a subsidiary through M&A
Overview of Gansui Corporation, which became a subsidiary through M&A Name Acquisition data Segment Acquisition cost Goodwill Construction ¥5.37Bn June 2, 2023 ¥5 Bn （provisional figure） Supply Gansui Corporation Financial Result of Fiscal year ended July 2022 Net sales ¥6,292M Operating profit ¥294
Slide 25: Overview of Gansui Corporation
Overview of Gansui Corporation https://www.gansui.co.jp/ Name Gansui Corporation Founded August 5, 1965 Gansui Corporation TVCM Incorporation July 28, 2021 https://www.youtube.com/watch?v=Uns-NRbot7M Share Capital ¥110,000,000 Representative Masahiro Oshikawa Number of 174 （Included related company）
Slide 26: Business of Gansui Corporation
Business of Gansui Corporation ➢ Gansui Corporation has established itself as a leading company in the Chugoku and Shikoku regions by providing total solutions for ground improvement and ground investigation, including design and construction. ➢ Especially in Okayama Prefecture, which has developed
Slide 27: Transition of stock price after the announcement of our plan to meet the criteria
Transition of stock price after the announcement of our plan to meet the criteria - Steady implementation of the commitment items in the basic policy of a plan to meet the criteria resulted in a steady increase in the stock price. - We will continue to take actions to enhance corporate value in orde
Slide 28: Status of Meeting the Criteria for Continued Listing
Status of Meeting the Criteria for Continued Listing ➢ Status of meeting the criteria for maintaining prime market listing as of March 31, 2023 Average closing price from January to the end of March Tradable market capitalization 2023 ¥2,919（Before share split） ¥8.24Bn ¥729（Considering After 4-divis
Slide 29: Transition of Our Business
Transition of Our Business We have also expanded our business domain while Now responding to requests from our business partners who are expanding their business. 1995~ 1970~ Construction Supply 1950~ Constructi Solar Energy Construc on Supply 1915 Construct ion tion Supply （Founded） Supply Solar In
Slide 30: Takashima Group continues to make great leap forward
Takashima Group continues to make great leap forward ➢ Takashima Group steadily expands its group with two M&As in December 2022 and one in June 2023 ➢ Aiming for sustainable growth by enhancing synergies within the group Our Group Takashima Group 19 Company Newly Joined Japan グループ会社 13 Xx社 Hongkong
Slide 31: Our Goals
Our Goals “Sustainability V” will simultaneously achieve adaptation to a sustainable society and sustainable growth through value creation strategies that capture growth opportunities in a changing market toward "Achieving a Carbon Neutral Society (2050)". 2050 Achieving a Carbon Neutral Society Sus
Slide 32: Inquiries on this document
Inquiries on this document IR and PR Unit, Takashima & Co., Ltd. ir@ta.tak.co.jp URL https://www.tak.co.jp/en/ir/contact1.html ■ Handling of this document [Precautions regarding forecasts] The data and predictions for the future disclosed in this document are based on judgments as of the release dat