Nippon Air Conditioning Services Co., Ltd. · TSE:4658
Nippon Air Conditioning Services — FY2020 Earnings Presentation
36 slides from Nippon Air Conditioning Services's earnings presentation, June 2020
Slide 1: Fiscal year ended March 2020 Financial Results Reference Materials
We are the doctor of your invisible air. Fiscal year ended March 2020 Financial Results Reference Materials June 2020 TSE 1st section, NSE 1st section: 4658 1
Slide 2: Contents
Contents I . Overview and Strength of Nippon Air Conditioning Group II . Financial Highlights for the Fiscal Year Ended March 2020 III. 2019 Five-Year Mid-Term Management Plan IV. Stock-Related Information 2 We are the doctor of your invisible air.
Slide 3: Building facilities maintenance
I. Overview and Strength of Nippon Air Conditioning Group 1/11 Building facilities maintenance Number of technology-related employees: 2,502 Bases: 47 prefectures and 7 overseas countries 3 We are the doctor of your invisible air.
Slide 4: Company overview and stock-related information
I. Overview and Strength of Nippon Air Conditioning Group 2/11 ■ Regular employees ■Number of employees (persons) ■ Average temporarily employed workers Company overview Stock-related information [ ] Technology-related employees 2,967 2,993 3,065 2,914 [2,418] [2,502] [2,405] [2,421] Establishment A
Slide 5: Creation of social value and economic value
I. Overview and Strength of Nippon Air Conditioning Group 3/11 To make all our stakeholders happier Creation of social value Management philosophy Bringing together the technological capabilities and human resources to maintain optimal environments and give our clients peace of mind through top qual
Slide 6: Business model and business description
I. Overview and Strength of Nippon Air Conditioning Group 4/11 ■ Creation of social value ■ Business model ■ Business description (movie: 196sec) Management philosophy Bringing together the technological capabilities and human Resident Renovation resources to maintain optimal environments and give o
Slide 7: Net sales and operating income changes since foundation
I. Overview and Strength of Nippon Air Conditioning Group 5/11 ∎Net sales and operating income changes since foundation (millions of yen) ■ Net sales (left axis) ● Operating income (right axis) 60,000 6,000 To make all our stakeholders happier Oct 2007 Mar 2018 Listed on TSE 1st Expansion to all (1)
Slide 8: Base information and overseas operations
I. Overview and Strength of Nippon Air Conditioning Group 6/11 Japan ■ Base information ★ Achieved expansion to all prefectures in March 2018 as for domestic aspects, and pushed spread of transactions ・ Nippon Air Conditioning with companies that have nationwide reach. ★ Overseas, promoted aggressiv
Slide 9: Market structure of building maintenance industry
I. Overview and Strength of Nippon Air Conditioning Group 7/11 ■ Actual state of air conditioning and heat source system market structure ■ Structure of building maintenance industry (Order receiving route and business supply process centered on construction → Business supply process companies and m
Slide 10: Independent company group and stable annual contracts
I. Overview and Strength of Nippon Air Conditioning Group 8/11 As the Group is an independent company group, it is possible to handle any Almost half of net sales come from stable annual contracts. Spread economic 1 event regardless of the maker, and in-house technicians can respond quickly. No rest
Slide 11: Facilities with special environments: high level of emergency
I. Overview and Strength of Nippon Air Conditioning Group 9/11 ∎ Reasons for inclination to facilities with special environments Hospitals Manufacturing plants Office building Air conditioning equipment in Air conditioning equipment in Air conditioning equipment in operating room breaks down manufac
Slide 12: Maintenance services examples and features
I. Overview and Strength of Nippon Air Conditioning Group 10/11 ■ Maintenance services examples and features Identify and fulfill customer needs such as Central surveillance service Solution proposals “Is it possible to create such and such environment?” or “How can we improve the situation?”, rathe
Slide 13: Validation total support
I. Overview and Strength of Nippon Air Conditioning Group 11/11 ■Validation total support Validation total support Good Manufacturing Practice: standard for Support for eligibility verification of manufacturing management and quality Based on GMP, implement support to manufacturing environments for
Slide 14: Contents
Contents I. Overview and Strength of Nippon Air Conditioning Group II. Financial Highlights for the Year Ended March 2020 III. 2019 Five-Year Mid-Term Management Plan IV. Stock-Related Information 14 We are the doctor of your invisible air.
Slide 15: Net sales, operating income and final income growth
II. Financial Highlights for the Year Ended March 2020 1/10 Net sales：+7.1% Operating income：+19.4% Final income：+5.9% * The number shown is the year-on-year growth ratio. * Final income indicates profit attributable to owners of parent. 15 We are the doctor of your invisible air.
Slide 16: Management results
II. Financial Highlights for the Year Ended March 2020 2/10 ■ Management results (millions of yen, %) FY03/2018 FY03/2019 FY03/2020 Consolidated (Cumulative period) Year-on-year Year-on-year Year-on-year Amount Ratio to sales Amount Ratio to sales Amount Ratio to sales growth ratio growth ratio grow
Slide 17: Achievement rate to the plan
II. Financial Highlights for the Year Ended March 2020 3/10 ■ The achievement rate to the plan (millions of yen, %) FY03/2018 FY03/2019 FY03/2020 Consolidated 4Q 4Q 4Q 4Q 4Q 4Q (Cumulative period) achievement achievement achievement Amount Amount Amount Amount Amount Amount rate as of 4Q rate as of
Slide 18: Net sales and operating income by quarter
II. Financial Highlights for the Year Ended March 2020 4/10 ■Net sales by quarter (millions of yen) ■ Maintenance services net sales ■Year-on-year growth ratio(4Q) ■ Renovation work construction work volume (1) Net sales 8,697 8,685 9,077 8,301 8,268 +766 million yen 7,729 7,884 7,662 7,459 7,090 7,
Slide 19: Net sales
II. Financial Highlights for the Year Ended March 2020 5/10 ■Net sales (millions of yen) ■ Maintenance services net sales (1) For hospitals and research facilities, and manufacturing plants, etc., increased mainly due to favorable status of (inside dotted line frame, annual contract sales) renovatio
Slide 20: Net sales by facilities of which services are entrusted
II. Financial Highlights for the Year Ended March 2020 6/10 ■ Net sales by facilities of which services are entrusted ■ Maintenance services net sales by facilities of which services ■ Renovation work construction work volume by facilities of which (millions of yen) are entrusted (millions of yen) s
Slide 21: Gross profit and overseas results
II. Financial Highlights for the Year Ended March 2020 7/10 ■Gross profit on sales (millions of yen) ■Gross profit margin (%) ■ Maintenance services net sales On gross profit on sales ■ Renovation work construction work volume ● Gross profit margin ● Maintenance services gross profit margin ● Comple
Slide 22: Overseas problems and solutions by the Company
II. Financial Highlights for the Year Ended March 2020 8/10 Problems held by Japanese companies that are expanding overseas ▼ Repeat of weak capital investment that did not result in solving problems fundamentally ＜Current Status and Issues＞ × Unconcern over state of equipment deterioration In-house
Slide 23: Financial position and cash flows
II. Financial Highlights for the Year Ended March 2020 9/10 ■ Financial position (millions of yen, %) FY03/2019 FY03/2020 ■ Capital adequacy ratio (%) Consolidated (as of the end of period) Year-on-year growth Year-on-year growth Amount Amount ratio ratio Current assets 20,225 +6.5 19,593 (3.1) 54.8
Slide 24: Forecast for the fiscal year ending March 2021
II. Financial Highlights for the Year Ended March 2020 10/10 ■ Forecast for the fiscal year ending March 2021 (millions of yen, %) FY03/2019 FY03/2020 FY03/2021(Forecast) Consolidated (Cumulative period) Year-on-year Year-on-year Year-on-year Amount Ratio to sales Amount Ratio to sales Amount Ratio
Slide 25: Contents
Contents I. Overview and Strength of Nippon Air Conditioning Group II . Financial Highlights for the Fiscal Year Ended March 2020 III. 2019 Five-Year Mid-Term Management Plan IV. Stock-Related Information 25 We are the doctor of your invisible air.
Slide 26: 2019 Five-Year Mid-Term Management Plan targets
III. 2019 Five-Year Mid-Term Management Plan 1/4 「2019 Five-Year Mid-Term Management Plan」 Net sales：55,000 million yen Operating income：3,000 million yen EPS：54 yen * Target amount for the fiscal year ending March 2024. 26 We are the doctor of your invisible air.
Slide 27: Long-term vision: To make all our stakeholders happier
III. 2019 Five-Year Mid-Term Management Plan 2/4 Long-term vision: “To make all our stakeholders happier” Customers Employees Shareholders Provision of high-added value services Improvement of satisfaction level and Implementation of stable returns technological capabilities * We consider improvemen
Slide 28: ROE and human resources value
III. 2019 Five-Year Mid-Term Management Plan 3/4 The most important point toward achievement of long-term vision is enhancement of human resources value. Barriers and opportunities Number of employees Special environment × Net income Net sales ＋ Technological capabilities Overseas development × ROE
Slide 29: Human resources
III. 2019 Five-Year Mid-Term Management Plan 4/4 Promote three projects aiming at enhancing human resources value Human resources 「Human」 「Technological capabilities」 「Satisfaction level」 ▼ ▼ ▼ Improvement of Improvement of Recruitment and PR operational efficiency systems and environment ▼ ▼ ▼ Impr
Slide 30: Contents
Contents I. Overview and Strength of Nippon Air Conditioning Group II . Financial Highlights for the Fiscal Year Ended March 2020 III. 2019 Five-Year Mid-Term Management Plan IV. Stock-Related Information 30 We are the doctor of your invisible air.
Slide 31: Implementation of stable returns
IV. Stock-Related Information 1/3 Implementation of stable returns Payout ratio：50% ROE：10% 31 We are the doctor of your invisible air.
Slide 32: Dividend payout ratio and dividend on equity ratio
IV. Stock-Related Information 2/3 Maintain dividend payout ratio of 50% by enhancing capital productivity ▼ Implementation of shareholder return with awareness of dividend on equity ratio ■Return On Equity (%) ■Payout ratio (%) ■Dividend on equity ratio (%) 10.5 10.8 10.8 10.0 × ＝ 5.4 5.5 5.6 51.4 5
Slide 33: Stock-Related Information 3/3
IV. Stock-Related Information 3/3 ■ Status of distribution of shares by owners (%) ■Number of shareholders (persons) ■ Individuals, other ■ Financial institutions ■ Foreign corporations, etc. ■ Other corporations ■ Financial instruments traders ■ Treasury stock 6,742 2020.3 51.12 36.21 7.12 5,463 5,
Slide 34: Summary: Source of Sustainable Increases in Corporate Value
Summary【Source of Sustainable Increases in Corporate Value】1/2 (1) Business model with high barrier for entry ・Over 70% of net sales comes from facilities with special environments ・2,502 technology-related employees & 47 prefectures and 7 overseas countries (2) Technological capabilities × solution
Slide 35: Summary: Toward the Achievement of long-term vision
Summary【Toward the Achievement of long-term vision】2/2 (1) Capital productivity improvement (2) Enhanced human resources value ◀ Implementation of shareholder return with awareness of dividend on equity ratio DOE = ROE × Payout ratio Enhanced human resources value ▶ Focus on facilities with special
Slide 36: Contact and disclaimer
www.nikku.co.jp/en In charge of IR: Corporate Planning Division E-mail：ir4658@nikku.co.jp These materials were prepared by Nippon Air Conditioning Services Co., Ltd. (the “Company”) for the purpose of understanding the current status of the Company, and do not aim at solicitation for investment in s
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