Slide 1: Takuma Co., Ltd. May 30, 2025
Takuma Co., Ltd. May 30, 2025 Copyright 2025 TAKUMA CO., LTD. All Rights Reserved.
Slide 2: Table of Contents
Table of Contents Financial Results of FY2024 (Ended 3/2025), 1. Financial Forecast for FY2025 (Ending 3/2026) 2. Progress of the 14th Medium-Term Management Plan 3. Growth Strategy (Human Resource Investment, R&D, M&A) 4. Appendix (Business Environment, etc.) Copyright 2025 TAKUMA CO., LTD. All Rig
Slide 3: Introduction
Introduction The Group aims to contribute to solving social issues (ESG challenges) and enhance corporate value through businesses founded on its strengths—namely, technological capabilities and strong trust-based relationships with customers. Achieve further expansion with recurring revenue mod
Slide 4: Financial Results of FY2024 and Forecast for FY2025
1. Financial Results of FY2024 (Ended 3/2025), Financial Forecast for FY2025 (Ending 3/2026) For details, please refer to the “Supplementary Materials of Financial Results for Q4 FY2024.” https://www.takuma.co.jp/english/investor/pdf/2024/financial_briefing_materials_for_q4_fy2024.pdf Copyright 2025
Slide 5: FY2024 (Ended 3/2025) Financial Highlights
FY2024 (Ended 3/2025) Financial Highlights Orders received and order backlog reached a record high, driven by steady demand for municipal solid waste treatment plants. Net sales increased due to an increase in all other business segments, despite a decrease in the Domestic Environment and Energy
Slide 6: FY2024 Segment Information
FY2024 (Ended 3/2025) Segment Information (Billions of yen) Net sales : YoY +¥1.9 billion Operating profit : YoY +¥3.3 billion Profit increased due to an increase in Profit increased due to Profit increased due to Operating Profit after-sales service and an elimination progress on projects Profit in
Slide 7: FY2024 Main Orders Received
FY2024 (Ended 3/2025) Main Orders Received Municipal solid waste treatment plants DBO project • Amagasaki City [Capacity 447t/day] • Gyoda Hanyu Resources and Environment Association [Capacity 126t/day] Primary equipment improvement project • Clean Authority of TOKYO [Shin-Koto Incineration Plan
Slide 8: FY2025 (Ending 3/2026) Results Forecast
FY2025 (Ending 3/2026) Results Forecast Orders received will continue to be steadily linked to strong demand, particularly for waste treatment plants, with the goal of achieving a record high for two consecutive years. Net sales are expected to increase due to growth in the Domestic Environment
Slide 9: FY2025 Forecast by Segment
FY2025 (Ending 3/2026) Forecast by Segment (Billions of yen) Net sales : YoY +¥13.8 billion Operating profit : YoY +¥0.9 billion Although sales increased with the inclusion of IHI Packaged Boiler Co., Operating Profit Profit increased due to higher Profit decreased due to Ltd. as a consolidated subs
Slide 10: Progress of the 14th Medium-Term Management Plan
2. Progress of the 14th Medium-Term Management Plan Copyright 2025 TAKUMA CO., LTD. All Rights Reserved. 9
Slide 11: 14th Medium-Term Management Plan Positioning and Policies
14th Medium-Term Management Plan Positioning and Policies The 14th Medium-Term Management Plan is positioned to materialize the growth story for realizing the vision by prioritizing investment of management resources into receiving orders for municipal solid waste treatment plants (renewals and pr
Slide 12: 14th Medium-Term Management Plan Financial Targets (Summary)
14th Medium-Term Management Plan Financial Targets (Summary) Considering current business performance, total orders received over the three years will be revised upwards to 706.3 billion yen and total ordinary profit over the three years will be revised upwards to 45.0 billion yen, they are main t
Slide 13: 14th Medium-Term Management Plan Profit Variance Analysis
14th Medium-Term Management Plan Profit Variance Analysis Although we expect an increase in SG&A expenses such as personnel and R&D expenses, we also expect an increase in profit due to higher gross profit in the EPC Business and recurring revenue model businesses. Increased profit in Package Boil
Slide 14: Capital Policy
Capital Policy We will establish a quantitative policy based on an analysis of the current situation related to cost of capital and stock price. We will enhance corporate value by balancing business growth and shareholder returns that meet market expectations with a solid financial foundation. 1
Slide 15: Capital Policy Reduce Cross-share Holdings
Capital Policy Reduce Cross-share Holdings We established the policy to strengthen the reduction of policy-held shares in November 2024. In order to further accelerate our reduction effort, we will reduce our cross-shareholdings to less than 15% of its consolidated net assets (selling approximat
Slide 16: Shareholder Return Share Repurchase
Shareholder Return Share Repurchase We plan to repurchase approximately 18 billion yen of treasury shares over the three-year period of the 14th Medium-Term Management Plan (FY2024-2026) in order to improve capital efficiency and enhance shareholder returns. The total return ratio for the 14th MTP
Slide 17: Growth Strategy
3. Growth Strategy Copyright 2025 TAKUMA CO., LTD. All Rights Reserved. 16
Slide 18: Market Environment Summary
Market Environment Summary We expect the market environment for our business to be generally favorable and strong, and strengthening human capital is an urgent priority. It is necessary to strengthen R&D and M&A initiatives with a view to FY2030 and beyond. 14th Medium-Term Management Plan perio
Slide 19: Market Environment Municipal Solid Waste Treatment Plants
Market Environment Municipal Solid Waste Treatment Plants Aging is progressing, as approximately 70% of operating waste incineration facilities are over 20 years old (with about 40% over 30 years old). As a result, steady demand for the renewal of 15–20 facilities per year is expected to continue
Slide 20: Human Resources Investment
Human Resources Investment In order to realize "Vision 2030," Takuma recognizes the need to secure approximately 1,200 employees (non-consolidated). Continue hiring and training efforts in the Engineering division, as well as the Construction division and Maintenance division. Number of employee
Slide 21: R&D
R&D We will strengthen R&D focusing on CCUS and carbon recycling technologies to achieve net-zero greenhouse gas (GHG) emissions by 2050. Assuming decarbonization technologies for waste treatment facilities will be sufficiently established by around 2030, Takuma has begun on- site demonstration
Slide 22: R&D Topics
R&D Topics On-site demonstration trials of an energy-efficient CO2 capture and separation system are being conducted at operating biomass power plants At the Maniwa Biomass Power Plant, which we delivered in 2015, the company is conducting an on-site demonstration trial using a newly installed sys
Slide 23: M&A
M&A In the Domestic Environment and Energy Business, we are proactively gathering information on M&A opportunities that contribute to strengthening our capabilities, including human resources, and expanding our business domains. Priority field Segment Purpose/category (Business field) Functional e
Slide 24: M&A Topics
M&A Topics FYE 3/2025, we completed 2 M&A projects related to package boiler business. Signed a stock transfer agreement to acquire shares of IHI Packaged Boiler Co., Ltd. IHI Packaged Boiler Co. became a consolidated subsidiary of Takuma on April 1, 2025, based on the stock transfer agreement.
Slide 25: Cash Allocation
Cash Allocation Focus on growth investments and shareholder returns and execute appropriate cash allocation to increase corporate value. 13th Medium-Term Management Plan period 14th Medium-Term Management Plan period (JPY billions) Growth investments JPY 21 billion Operating Sale of cross- Sale of
Slide 26: To Our Shareholders and Investors
To Our Shareholders and Investors To realize its long-term vision “Vision 2030,” Takuma recognizes the importance of sincerely engaging with all stakeholders, including shareholders and investors, and fostering ongoing communication. May 2025 By achieving sustainable and long-term growth together wi
Slide 27: Appendix
Appendix Copyright 2025 TAKUMA CO., LTD. All Rights Reserved. 26
Slide 28: Company Outline
Company Outline In 1912, founder Tsunekichi Takuma invented the first boiler to be entirely produced in Japan. In 1963, we delivered Japan’s first fully continuous mechanical waste incineration plant by leveraging our combustion and engineering technology cultivated through boiler improvement. T
Slide 29: Company Outline Business Segment
Company Outline Business Segment The flagship Domestic Environment and Energy Business, including engineering, procurement, and construction (EPC) and after-sales service of municipal solid waste treatment plant, accounts for most net sales and operating profit. Business Segment Key Businesses Mun
Slide 30: Company Outline History
Company Outline History In 1912, we invented the first boiler in Japan using purely Japanese technology. While improving boiler technology, utilized to enter the environmental field, such as waste incineration plants. Since then, we have provided technologies and services for solving customer an
Slide 31: Company Outline Performance Trends
Company Outline 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, result
Slide 32: Company Outline Business Model
Domestic Environment and Energy Business Company Outline Business Model 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 Recur
Slide 33: Illustration: Sales Progress / Sales Composition
Domestic Environment and Energy Business Company Outline Illustration: Sales Progress / Sales Composition For EPC orders, sales are recorded according to the progress of construction. Assuming that the plant construction period is 4 years, sales will make significant progress in the 3rd year and
Slide 34: Quarterly trend in Orders received / Net sales
Domestic Environment and Energy Business Company Outline Quarterly trend in Orders received / Net sales 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 (quarterl
Slide 35: Business Environment Municipal Solid Waste Treatment Plants
Domestic Environment and Energy Business Business Environment Municipal Solid Waste Treatment Plants Approximately 70% of the currently operating waste incineration facilities in Japan are over 20 years old, and demand for renewal and life extension due to aging infrastructure is expected to remai
Slide 36: Business Environment Municipal Solid Waste Treatment Plants
Domestic Environment and Energy Business Business Environment Municipal Solid Waste Treatment Plants We will continue to prioritize the allocation of management resources to EPC projects (renewals and primary equipment improvement) and after-sales and operation services. We aim to win at least thr
Slide 37: Business Environment Energy Plants
Domestic Environment and Energy Business Business Environment Energy Plants We contribute to our customers‘ decarbonization through biomass power plants and large-scale plants that supply electricity and heat to their factories. Demand for small- and medium-sized biomass power plants, mainly from
Slide 38: Business Environment Water Treatment Plants
Domestic Environment and Energy Business Business Environment 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 d
Slide 39: Business Environment Power Retail Business
Domestic Environment and Energy Business Business Environment 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. Market Demand is
Slide 40: Business Environment Overseas Environment and Energy Business
Business Environment Overseas Environment and Energy Business Contribute to solving issues such as power shortages and sanitation in Southeast Asian countries due to economic growth and urbanization by supplying waste and biomass power plants. In Thailand, demand for Energy from Waste and for biom
Slide 41: Business Environment Package Boiler Business
Business Environment Package Boiler Business Through various heat source products, addressing the challenges of heat utilization and energy-saving needs across a range of facilities, including manufacturing plants, hotels, hospitals, and commercial facilities. Domestic market has matured, but we e
Slide 42: Business Environment Equipment and Systems Business
Business Environment Equipment and Systems Business Building equipment business Semiconductor industrial equipment business Strong demand is expected to continue due to urban redevelopment The semiconductor and electronic device manufacturing equipment and new construction and renewal of medical
Slide 43: 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 44: 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