Slide 1: Takuma Co., Ltd. August 8, 2023
Takuma Co., Ltd. August 8, 2023 Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.
Slide 2: Table of Contents
Table of Contents 1. Overview of Q1 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: Overview of Q1 FY2023 Financial Results
1. Overview of Q1 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. 2
Slide 4: Q1 FY2023 (Ended 3/2024) Financial Highlights
Q1 FY2023(Ended 3/2024) Financial Highlights Orders received were up owing to two EPC orders for a biomass power plant and an increase in orders for after-sale services for a municipal solid waste treatment plant. Net sales and profit were down, mainly due to changes in the EPC project mix, deprecia
Slide 5: Q1 FY2023 Financial Highlights by segment
Q1 FY2023(Ended 3/2024) Financial Highlights Q1 FYE 3/2022 Q1 FYE 3/2023 Q1 FYE 3/2024 (Millions of yen) YoY change (FY2021) (FY2022) (FY2023) Orders received Total 35,531 32,855 34,548 +5.2% Domestic Environment and Energy 28,658 24,293 26,166 +7.7% Overseas Environment and Energy 231 287 753 +162.
Slide 6: Domestic Environment and Energy: Orders received / Order backlog
Orders received / Domestic Environment and Energy Business Order backlog Orders received were up owing to two EPC orders for a biomass power plant and an increase in orders for after-sale services for a municipal solid waste treatment plant. Orders received were up year on year owing to two EPC or
Slide 7: Domestic Environment and Energy: Net sales / Operating profit
Net Sales / Domestic Environment and Energy Business Operating Profit Sales and profit were down due to changes in the EPC project mix as well as depreciation at the new Harima Factory associated with operations and increases in personnel and R&D expenses. Net sales Operating profit (Millions of yen
Slide 8: Domestic Environment and Energy: Breakdown by Product / Service
Breakdown by Domestic Environment and Energy Business Product / Service Orders received were up, owing mainly to an increase in after-sale services (operation management and maintenance) at a municipal solid waste treatment plant. Net sales were down due mainly to a decrease in large-scale energy pl
Slide 9: Municipal solid waste treatment plants: Main Orders Received
Municipal solid waste Domestic Environment and Energy Business treatment plants Main Orders Received There were no orders for EPC or long-term O&M (after-sale services) in the first quarter of FYE 3/2024. Year Delivered to: Notes Capacity Scheduled Completion Q1 Uwajima Public Association After-sale
Slide 10: Energy plants: Main Orders Received
Energy plants Domestic Environment and Energy Business Main Orders Received Orders were received for two EPC projects at a biomass power plant (FIT) in the first quarter of FYE 3/2024. Scheduled Year Delivered to: Notes Capacity Completion Q1 Company A EPC Power generation business (Biomass, FIT) 1,
Slide 11: 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 12: Overseas Environment and Energy: Orders received / Order backlog
Orders received / Overseas Environment and Energy Business Order backlog Orders received were up owing to maintenance orders. We will continue going after new construction and renewal projects in addition to maintenance services. Orders received Order backlog (Q1) （Millions of yen） Approx. ¥460 mill
Slide 13: Overseas Environment and Energy: Net sales / Operating profit
Net sales / Overseas Environment and Energy Business Operating profit Net sales were up owing to progress on new plant projects ordered in FYE 3/2023 in addition to maintenance services. Operating profit also improved. Net sales Operating profit （Millions of yen） Approx. ¥140 million increase （Milli
Slide 14: Package Boiler Business: Orders received / Order backlog
Package Boiler Business Orders received / Order backlog Orders received were up owing primarily to increasing orders for large-scale projects. The order backlog increased owing primarily to an increase in orders and an increase in projects with longer delivery periods. Orders received Order backlog
Slide 15: Package Boiler Business: Net sales / Operating profit
Package Boiler Business Net sales / Operating profit Net sales were up owing to progress on projects for which orders were already received. The operating profit and loss also improved. Net sales Operating profit （Millions of yen） Approx. ¥190 million increase （Millions of yen） Approx. ¥90 million i
Slide 16: Equipment and Systems: Orders Received / Order Backlog
Equipment and Systems Business Orders Received / Order Backlog Although demand for semiconductor industrial equipment is expected to increase in the medium to long term, it is currently stagnant, so orders received were down. Orders received Order backlog (Q1) （Millions of yen） Approx. ¥1.2 billion
Slide 17: Equipment and Systems: Net sales / Operating profit
Equipment and Systems Business Net sales / Operating profit Net sales were up owing to progress on projects for which orders were already received. Operating profit was up owing to improvement in losses posted in the building equipment business. Net sales Operating profit （Millions of yen） Approx. ¥
Slide 18: Financial Forecast for FY2023
1. Overview of Q1 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. 17
Slide 19: FY2023 (Ended 3/2024) Results Forecast
FY2023(Ended 3/2024) Results Forecast No changes from the initial forecasts announced on May 12, 2023. Our aim is to maintain orders received at a high level. Net sales are expected to be up, profit will be down due to changes in the EPC project mix, increased R&D and human resources investment, and
Slide 20: FY2023 Results Forecast by Segment
FY2023(Ended 3/2024) Results Forecast by Segment FYE 3/2024 (Millions of yen) FYE 3/2022 FYE 3/2023 (Beginning of year YoY change forecast) Order received Total 192,244 168,558 170,000 +0.9% Domestic Environment and Energy 164,865 130,280 141,500 +8.6% Overseas Environment and Energy 2,035 5,922 3,0
Slide 21: 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 22: Shareholder Return
Shareholder Return We expect to achieve our medium-term target (36 billion yen in ordinary profit for the three-year period) despite the expected decrease in profit. Accordingly, we plan to increase the annual dividend by 5 yen to 48 yen per share. Determined based on a comprehensive consideration t
Slide 23: Reference Material
1. Overview of Q1 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. 22
Slide 24: 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 25: 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 26: 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 27: 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 mod
Slide 28: 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 29: 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 30: 13th Medium-Term Management Plan Progress
13th Medium-Term Management Plan Progress • Steady progress is being made toward achievement of targets. Cumulative 3-year ordinary profit is to go higher than target of 36.0 billion yen. • Lead times in the EPC Business are long, between three and five years, so single-year performance varies, but
Slide 31: 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 32: Municipal solid waste treatment plants: Situation by Segment
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 33: Municipal solid waste treatment plants: Long-term 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 34: 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 35: Energy plants: Situation by Segment
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 36: 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 37: 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 38: 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 39: Overseas Environment and Energy: Situation by Segment
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 40: Package Boiler / Equipment and Systems: Situation by Segment
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 41: 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 42: 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 43: 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 44: 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 45: 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