Takeuchi Mfg.co., Ltd. · TSE:6432
Takeuchi Mfg.co — H1 FY2023 Earnings Presentation
37 slides from Takeuchi Mfg.co's earnings presentation, Oct 24, 2023
Slide 1: Presentation Materials for the Second Quarter of FY Ending February 2024
Presentation Materials for the Second Quarter of the Fiscal Year Ending February 2024 October 24, 2023 TAKEUCHI MFG. CO., LTD. (Securities code: 6432) © 2023 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.
Slide 2: Agenda
▶ FY2023 First Half Consolidated Results ▶ FY2023 Consolidated Forecast ▶ Topics • Production Capacity Expansion (New Factories in Japan and the US) • Current orders and order backlog • Challenges in electrification of construction equipment ▶ Reference Materials 1 © 2023 Takeuchi Manufacturing [JAP
Slide 3: Summary of Earnings Results for the First Half of FY2023
Summary of Earnings Results for the First Half of the FY2023 (1) Sales volume increased in both the US and Europe ⚫ North American sales volume increased +3.6% (1Q: +17.6%, 2Q: -7.7%, YoY) ⚫ European sales volume increased +7.0% (1Q : -1.5%, 2Q : +18.3%, YoY) ⚫ Total sales volume increased +5.5% (1Q
Slide 4: Consolidated Financial Highlights for the First Half of FY2023
Consolidated Financial Highlights for the First Half of the FY2023 FY2022 FY2023 Millions of yen 1H 1st half (%) 1st half Sales ratio Change (%) Prev. Change Forecast ■ Net sales 86,033 - 105,176 - +19,143 +22.3% 96,200 +8,976 ■ Operating profit 9,328 10.8% 16,969 16.1% +7,640 +81.9% 14,500 +2,469 ■
Slide 5: Quarterly Net Sales and Operating Profit
Quarterly Net Sales and Operating Profit (Millions of yen) 53,039 52,137 50,000 46,892 46,039 40,896 42,414 43,619 40,000 33,332 32,674 33,989 Net sales 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 8,542 8,426 7,268 Operating 8,000 5,755 5,355 profit 6,000 4,202 4,201 3,972 4,623 3,604 4,000
Slide 6: Financial Results by Region for 1H FY2023
Financial Results by Region for 1H FY2023 FY2022 FY2023 (Millions of yen) 1H 1st half Sales ratio 1st half Sales ratio Change (%) Prev. Change Forecast ■ Japan 1,156 1.3% 1,094 1.0% (62) (5.4)% 1,260 (165) ■ North America 47,192 54.9% 56,610 53.8% +9,417 +20.0% 51,510 +5,100 ■ Europe 35,418 41.2% 44
Slide 7: Geographic Segment Information and Results for 1H FY2023
Geographic Segment Information and Results for 1H FY2023 FY2022 FY2023 (Millions of yen) 1H Profit ratio 1H Profit ratio Change (%) Japan Net sales 29,448 - 36,166 - +6,717 +22.8% Segment profit 5,739 19.5% 12,458 34.4% +6,718 +117.0% USA Net sales 47,192 - 56,618 - +9,425 +20.0% Segment profit 4,98
Slide 8: Factors of Increase/Decrease in Operating Profit (1H FY2023)
Factors of Increase/Decrease in Operating Profit (1H FY2023) Cost of sales +1,254M Transportation costs: -3,373M - Other than US : +819M └ Decrease in unit price: -3,065M (Millions of yen) - US +435M └ Increase in shipping volume: +125M SG&A expenses +228M └Transfer to COS: -434M 18,000 (2,109 ) +3,
Slide 9: Consolidated Balance Sheets (As of August 31, 2023)
Consolidated Balance Sheets (As of August 31, 2023) As of Feb. 28, 2023 As of Aug. 31, 2023 Composition Composition (Millions of yen) Balance ratio Balance ratio Change (%) Cash and deposits 43,995 27.7% 42,197 24.0% (1,798) (4.1)% Notes and accounts receivable - trade 35,739 22.5% 45,696 26.0% +9,9
Slide 10: Consolidated Statements of Cash Flows (1H FY2023)
Consolidated Statements of Cash Flows (1H FY2023, Results) (Millions of yen) Cash and cash equivalents at end of +7,327 (4,683 ) Cash and cash period equivalents at (4,693 ) end of period +251 43,519 (1,798) million yen 41,721 As of February 28, Operating CF Investment CF Financial CF Effect of As o
Slide 11: Agenda
▶ FY2023 First Half Consolidated Results ▶ FY2023 Consolidated Forecast ▶ Topics • Production Capacity Expansion (New Factories in Japan and the US) • Current orders and order backlog • Challenges in electrification of construction equipment ▶ Reference Materials 10 © 2023 Takeuchi Manufacturing [JA
Slide 12: FY2023 Earnings Forecasts (full year)
FY2023 Earnings Forecasts (full year) Previous forecast (announced on April 11, 2023) Revised forecast (announced on October 12, 2023) (Millions of yen) 1st half 1st half 2nd half Full year 2nd half Full year Change (%) (results) Japan 1,260 1,200 2,460 1,094 1,235 2,330 (130) (5.3)% North America 5
Slide 13: Expected Consolidated Financial Highlights for FY2023
Expected Consolidated Financial Highlights for FY2023 FY2022 FY2023 (forecast) (Millions of yen) 1st half Full year Sales ratio 2nd half Full year Sales ratio Change (%) (results) ■ Net sales 178,966 - 105,176 99,823 205,000 - +26,033 +14.5% ■ Operating profit 21,221 11.9% 16,969 16,130 33,100 16.1%
Slide 14: Earnings Forecast by Region for FY2023
Earnings Forecast by Region for FY2023 FY2022 FY2023 (forecast) (Millions of yen) 1st half Full year Sales ratio 2nd half Full year Sales ratio Change (%) (results) ■ Japan 2,036 1.1% 1,094 1,235 2,330 1.1% +293 +14.4% ■ North America 98,506 55.0% 56,610 53,489 110,100 53.7% +11,593 +11.8% ■ Europe
Slide 15: Factors of Increase/Decrease in Operating Profit (FY2023 Forecast)
Factors of Increase/Decrease in Operating Profit (FY2023 Full year forecast) (Millions of yen) Cost of sales +2,515M Transportation costs: -6,667M - Other than US : +1,589M └ Decrease in unit price: -6,458M └ Increase in shipping volume: +758M 40,000 - US +926M └Transfer to COS: -968M SG&A expenses
Slide 16: Capital Investment Plan
Capital Investment Plan FY2023 Capital Expenditure Plan Breakdown (Millions of yen) Capital investment Aoki Factory 5.0 bn Payment for this fiscal year: 5.0 bn 10,000 Depreciation Payment already made (construction in progress): 6.0 bn 9,050 US. Factory 1.5 bn Solar panels (US office and factory): 0
Slide 17: Agenda
▶ FY2023 First Half Consolidated Results ▶ FY2023 Consolidated Forecast ▶ Topics • Production Capacity Expansion (New Factories in Japan and the US) • Current orders and order backlog • Challenges in electrification of construction equipment ▶ Reference Materials 16 © 2023 Takeuchi Manufacturing [JA
Slide 18: The Third Mid-term Business Plan (FY2022~FY2024)
The Third Mid-term Business Plan (FY2022~FY2024) (yen) Net sales (left) ➢ Slogan, Numerical targets 250 Operating profit (right) 240.0bn Increase Sales by 100 billion Yen Net sales +70.3% CAGR +19.5% 205.0 by Power Up, Speed Up, and Scale Up 200 (Average growth rate) 40 Increase consolidated net sal
Slide 19: Production Capacity Expansion
Production Capacity Expansion ■ Track loader ■ Excavator (Compact/Hydraulic) 148% US Factory (started operation on September 23, 2022) ̶ Full operation: Planned for FY2024 Decrease due to 138% ̶ Start production of track loaders using the semi knock down (SKD) parts and materials supply shortages 14
Slide 20: Operations of the US Factory
Operations of the US Factory (May 2023: Introduction of the slat conveyors) Production Volume of Track Loaders (per day) 150% 140% Continue production 130% at HO factory as well 125% 100% 100% 95% 75% 50% 25% September 2022 The US factory is in operation. 0% FY2021 FY2022 At the At the end of end of
Slide 21: Aoki Factory Started Operation (September 2023)
Outline of Aoki Factory Aoki Factory Started Operation (September 2023) Site area: approx. 50,000 m2 Building area: approx. 27,800 m2 Total floor space: approx. 31,600 m2 1-D 3 2 1-E 4 8 5 Exit 2 6 1-C 7 1-B 1-A Entrance The Aoki Factory operates mostly on solar power generation. 1. Delivery entranc
Slide 22: Features of Aoki Factory
Features of Aoki Factory Logistics management (receiving & shipping) Reservations and management through IT system for parts delivery and product shipments, enabling information sharing between the factory and shipping companies ✓ Staggered work schedules to reduce truck waiting times and avoid cong
Slide 23: Orders received entering adjustment period
Orders received entering adjustment period (expect continued robust product demand) 33.3% down Net Sales, Orders Received, and Order Backlogs by Half Year year on year ■ Net sales (bn) Orders exceeding ■ Orders received (bn) production capacity 105.0 92.9 87.3 86.0 105.1 ■ Order backlogs (bn) >> bac
Slide 24: Challenges for Electrifying Construction Machinery
Challenges for Electrifying Construction Machinery 1. Battery cost reduction and performance improvements (longer operating time, shorter charging time) ✓ Battery powered construction machinery is more expensive than diesel (approx. 2–3x) >> Batteries account for most of this cost premium ✓ Compared
Slide 25: Product Lineup
Product Lineup 1 2 3 4 5 6 7 8 9 15 (tonnes) Compact excavators and ～ ～ hydraulic excavators Compact excavators Hydraulic excavators Battery operated TB20e Standard models TB219 TB2150 TB216 TB225 TB290 TB2150R [From now on] Priority will be given to electrification of TB320 TB235-2 TB250-2 TB290-2
Slide 26: Shareholder Return and Dividend Payout Ratio
Shareholder Return and Dividend Payout Ratio Basic Policy: Strive to maintain a stable dividend payout with a target consolidated dividend payout ratio of 30% in mind, while securing the internal reserves necessary to strengthen the management structure and develop future businesses Share buybacks:I
Slide 27: Reference Materials
▶ FY2023 First Half Consolidated Results ▶ FY2023 Consolidated Forecast ▶ Topics • Production Capacity Expansion (New Factories in Japan and the US) • Current orders and order backlog • Challenges in electrification of construction equipment ▶ Reference Materials 26 © 2023 Takeuchi Manufacturing [JA
Slide 28: Corporate Policies and Business Philosophy
Corporate Policies and Business Philosophy With deep sensitivity, we will develop products that Creation meet or exceed needs. Corporate With dreams and youthful drive, we will take bold Challenge Policies action toward higher goals. With a commitment to harmony and compassion, we Cooperation will s
Slide 29: Corporate Profile
Corporate Profile Name TAKEUCHI MFG. CO., LTD. Main Products Toshiya Takeuchi Compact excavators and hydraulic Representative President and Representative Director excavators ̶ We developed and began production of the 205, Uwadaira, Sakaki-machi, world’s first compact excavator (September Home Offic
Slide 30: Business Performances
Business Performances Forecast (Millions of yen) FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Change Japan 940 813 2,508 2,832 2,036 2,330 +293 North America 50,696 53,222 52,248 68,706 98,506 110,100 +11,593 Europe 55,561 60,313 54,988 65,749 73,906 87,200 +13,293 Asia 1,000 384 181 153 495 180 (315)
Slide 31: Market Outlook
Market Outlook 350 S&P/Case-Shiller Home Price Index <20-city composite Jan. 2000=100> 300 250 200 *seasonally adjusted 150 Sept. Sept. Sept. Sept. Sept. Sept. Nov. Nov. Nov. Mar. Nov. Nov. Nov. Jan. Mar. May Jan. Mar. May Jan. Mar. May Jan. May Jan. Mar. May Jan. Mar. May Jan. Mar. May July July Ju
Slide 32: Market Outlook
Market Outlook ̶ From February to April 2020, housing demand plummeted due to the COVID-19 pandemic. ̶ Since May 2020, economic activity has resumed, achieving a V-shaped recovery and maintaining a high level after that. ̶ Since March 2022, demand for housing had been weak due to US interest rate hi
Slide 33: Production Volume Trends
Production Volume Trends By Month By Fiscal Year Decrease in Decrease in operating operating days due days due to Golden 133% 131% June, 148% to summer vacation 150% Week holidays Apr., 132% July, 134% Mar., 151% 100% 125% May, 119% Aug., 118% 70% 100% 75% 1st year of the pandemic March 2020=100% 50
Slide 34: List of Material Issues
List of Material Issues # E S G SDGs Social Issues Theme Goal 1 ○ 13 Develop, manufacture, and sell battery-powered compact excavators 1 2 ○ 13 Mitigate climate change Reducing GHG emissions at factories 2 Improving factory energy efficiency 3 ○ 7 13 2 Expanding the use of renewable energy 4 ○ 12 Re
Slide 35: Climate Change Initiatives (Response Measures)
Climate Change Initiatives (Response Measures) :Direction of Change Large influence Medium influence Small influence Risk Items Assumptions and background for Influencing Factor 2030年の想定・背景 Business Impact/Financial Impact Measures Impact classification 2030 (2℃ scenario) （２℃シナリオ） (Parameters) (Larg
Slide 36: TAKEUCHI MFG. CO., LTD.
TAKEUCHI MFG. CO., LTD. Corporate Planning Section and ESG Promotion Section, Business Management Dept. TEL: +81-(0)268-81-1200 FAX: +81-(0)268-81-1127 E-mail: ir@takeuchi-mfg.com Forecasts are based on information that was available when this document was prepared. The forecast is vulnerable to man
Slide 37: © 2023 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.
© 2023 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.