Kyokuto Kaihatsu Kogyo Co., Ltd. · TSE:7226
Kyokuto Kaihatsu Kogyo — Q1 FY2024 Earnings Presentation
51 slides from Kyokuto Kaihatsu Kogyo's earnings presentation, August 2024
Slide 1: Operating Results for FY2024 1Q
Operating Results for FY2024 1Q Kyokuto Kaihatsu Kogyo Co., Ltd. TSE Prime: 7226
Slide 2: Table of Contents
Table of Contents 1. Overview of Kyokuto Kaihatsu Kogyo P2 - 5 2. Results of FY2024 1Q P6 - 8 3. Results by Segment P9 - 20 4. Full-Year Forecast for FY2024 P21 - 27 5. Initiatives for Enhancement of Corporate Value P28 - 35 6. TOPICS P36 - 38 1
Slide 3: 1. Overview of Kyokuto Kaihatsu Kogyo
1. Overview of Kyokuto Kaihatsu Kogyo 2
Slide 4: Business Line
Business Line Special Purpose Vehicles Business Manufacture, mounting, sale, and repair of special purpose vehicles and other transportation equipment, and manufacture and sale of parts thereof. Manufacture and sale of trailers, truck bodies, etc. Environmental Equipment and Systems Business Manufac
Slide 5: Composition of Kyokuto Kaihatsu Kogyo Group
Composition of Kyokuto Kaihatsu Kogyo Group As of June 30, 2024 Kyokuto Kaihatsu Kogyo Co., Ltd. Consolidated subsidiaries 11 companies Special Purpose Vehicles Environmental Equipment and ◎ Affiliated companies accounted for by the Business Systems Business equity method 6 companies NIPPON TREX Kyo
Slide 6: Our Strengths
Our Strengths ◆ Wide variety of models and lineups as the general manufacturer in the No.1 position in terms sales of special purpose vehicles ◆ Great number of products with high market share in our lineup ◆ Technical capabilities that can meet diverse customer needs ◆ Aggressive efforts to develop
Slide 7: 2. Results of FY2024 1Q
MI KYoKuTo 2. Results of FY2024 1Q
Slide 8: Summary of Consolidated Financial Results for FY2024 1Q
Summary of Consolidated Financial Results for FY2024 1Q Fiscal year FY2023 FY2024 Change Percentage Millions of yen 1Q 1Q Net sales 26,091 28,626 + 2,534 +9.7% Operating profit - 87 931 + 1,018 - Ordinary profit 419 1,292 + 873 +208.2% Profit attributable to owners of 220 820 + 599 +272.0% parent Sp
Slide 9: Factors Causing Increase / Decrease in Consolidated Operating Profit (by segment)
Factors Causing Increase / Decrease in Consolidated Operating Profit (by segment) (Millions of yen) Environmental Car Parking Systems Equipment and Systems Adjustment Business Business –3 Special purpose vehicles business –87 –200 Operating profit (+1,018) FY2023 1Q FY2024 1Q
Slide 10: 3. Results by Segment
MI KYoKuTo 3. Results by Segment
Slide 11: Special Purpose Vehicles Business
Special Purpose Vehicles Business Net sales (+10.9%) Share of Supply of truck chassis in Japan was improving ⇒ Productivity rose net sales Increase in the wake of product price revisions 85.9% Operating profit (turned profitable) Profitability improved through product price revisions As of FY2024 1Q
Slide 12: Factors Causing Increase / Decrease in Operating Profit (Special Purpose Vehicles)
Factors Causing Increase / Decrease in Consolidated Operating Profit (Special Purpose Vehicles Business) (Millions of yen) Cost reduction Overseas sales increase /decrease Fixed cost –55 increase / decrease –521 Domestic sales increase / decrease and Material cost increase / product mix decrease –23
Slide 13: Special Purpose Vehicles Business: Orders Received and Backlog
Special Purpose Vehicles Business: Orders Received and Backlog 極東 受注残高 KYOKUTO Order backlog ﾄﾚｸｽ 受注残高 TREX Order backlog 受注高 Total 合計received of orders (Millions of yen) Orders received FY2024 1Q results 120,000 110,613 25,892 million yen Results of FY2023 1Q 21,632 million yen 97,779 99,336 100,00
Slide 14: Special Purpose Vehicles Business: Sales Composition
Special Purpose Vehicles Business: Sales Composition Other Chassis/miscellaneous 9% Related to the Trailer construction environment/welfare/ 20% 5% work and others 6% Parts/repair 5% FY2024 1Q Sales Overseas/export Composition Wing/van 9% 19% PT KYOKUTO INDOMOBIL Related to construction Related to l
Slide 15: Special Purpose Vehicles Business: Net Sales by Product
Special Purpose Vehicles Business: Net Sales by Product Net sales (millions of yen) 0 1,000 2,000 3,000 4,000 5,000 6,000 トレーラ Trailer 5,126 5,344 ウィング・バン Wing / van 4,841 3,630 Related to logistics 物流・省力関連 3,834 and labor-saving 3,554 Related to 建設関連 3,217 construction 2,861 海外・輸出 Overseas/export 2
Slide 16: Environmental Equipment and Systems Business
Environmental Equipment and Systems Business Net sales (–6.0%) Plant construction: Continuation of construction of projects from backlog Share of net sales Focus on stock-type business of winning contracts for maintenance and operation 10.7% Operating profit (–1.6%) Stayed on a level similar as FY20
Slide 17: Environmental Equipment and Systems Business: Comparison in Net Sales
Environmental Equipment and Systems Business: Comparison in Net Sales Net sales (millions of yen) 0 500 1,000 1,500 2,000 2,500 3,000 2024/3期 プラント Plants メンテナンス・運転受託 Contract for operation and maintenance Total FY2023 1Q1Q 2,301 724 1,577 Total 2025/3期 1Q プラント Plants メンテナンス・運転受託 Contract for operati
Slide 18: Environmental Equipment and Systems Business: Trend of Results
Environmental Equipment and Systems Business: Trend of Results (Acquired contract for operation/case) (Plants/unit) 210 40 プラント納入実績（累計） Plant delivery record (cumulative) Number of received contract for operation 運転受託数（稼働中） (in operation currently) 205 30 200 20 195 10 190 0 2025/3期 FY2024 2017/3期 F
Slide 19: Car Parking Systems Business
Car Parking Systems Business Net sales (+16.5%) In multi-story parking systems, both new orders and maintenance contracts increased significantly Share of Net sales of pay-and-display parking lots increased slightly as the operational rate net sales 6.0% continued recovering from the previous year O
Slide 20: Car Parking Systems Business: Comparison in Net Sales
Car Parking Systems Business: Comparison in Net Sales Net sales (millions of yen) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Multi-story parking Pay-and-display 立体駐車装置 systems コインパーキング parking lots その他 Other Total 2024/3期 FY2023 1Q1Q 524 722 373 1,619 Multi-story parking 立体駐車装置 systems コイ
Slide 21: Car Parking Systems Business: Trend in Results
Car Parking Systems Business: Trend in Results (Unit) Number of pallets for multi-level parking (Unit) Number of lots for cars in pay-and-display parking 立体駐車装置パレット数（累計） コインパーキング車室数（稼働中） (in operation currently) equipment (cumulative) 14,000 95,000 12,000 90,000 10,000 85,000 8,000 6,000 80,000 4,00
Slide 22: 4. Full-Year Forecast for FY2024
4. Full-Year Forecast for FY2024 21
Slide 23: FY2024: Consolidated Results Forecast
FY2024: Consolidated Results Forecast FY2024 Change (Percentage) Fiscal year FY2023 Announced in Announced in Vs. Numbers Millions of yen May August announced in May Net sales 128,026 134,000 134,000 - - Operating profit 4,825 6,300 6,300 - - Ordinary profit 5,617 6,500 6,500 - - Profit attributable
Slide 24: Trend in Consolidated Operating Profit (by Segment)
Trend in Consolidated Operating Profit (by Segment) (Millions of yen) 8,000 特装車 環境 パーキング Special Purpose Environment Car Parking Vehicles 7,000 6,880 6,000 5,000 4,481 4,400 4,000 3,000 2,644 2,451 2,350 1,994 2,098 2,000 1,768 1,140 1,143 1,000 656 780 600 0 -1,000 △- 555 555 FY2020 2021/3期 FY2021
Slide 25: Special Purpose Vehicles Business: Full-year Results Forecast
Special Purpose Vehicles Business: Full-year Results Forecast Special Purpose Vehicles Business ➢ Both orders and backlogs remained at high levels (Backlogs: KYOKUTO: approx. 43,000 million yen and TREX: approx. 41,800 million yen. Total: approx. 84,800 million yen) ➢ The supply of truck chassis in
Slide 26: Truck Market and Net Sales Trend of Special Purpose Vehicles Business
Truck Market and Net Sales trend of Special Purpose Vehicles Business While the truck market has remained stagnant temporarily due in large part to the pandemic, semiconductor shortages, and chassis manufacturers’ misconduct related to vehicle certification, we have managed to secure sales through r
Slide 27: Environmental Equipment and Systems Business: Full-year Results Forecast
Environmental Equipment and Systems Business: Full-year Results Forecast Environmental Equipment and Systems Business ➢ A new plant is expected to be completed by the end of the current fiscal year, leading net sales to the level of the previous fiscal year. ➢ Stock-type business of winning contract
Slide 28: Car Parking Systems Business: Full-Year Results Forecast
Car Parking Systems Business: Full-Year Results Forecast Car Parking Systems Business ➢ Multi-story parking systems : Strengthen stock-type business such as renovation and maintenance. ➢ Pay-and-display parking lots : Secure earnings by increasing the number of business sites and parking lots, and r
Slide 29: 5. Initiatives for Enhancement of Corporate Value
5. Initiatives for Enhancement of Corporate Value 28
Slide 30: Recognition of Current Status of Corporate Value Enhancement
Recognition of Current Status of Corporate Value Enhancement As a result of continuing to engage in sustainable enhancement of corporate value, PBR improved to 0.83× (as of the end of March 2024). Continuing the effort toward achieving PBR 1× at an early stage remains an important management issue o
Slide 31: Long-term Management Vision - Kyokuto Kaihatsu 2030
Long-term Management Vision Final target value Long-term Management Vision 3rd STEP Sustainability Vision *1 ● Achievement of both - Kyokuto Kaihatsu 2030 - “outstanding technology” and • CO2 emissions reduction: Minus38% *2 “solid quality” Step-up strategy following three steps • Recycling rate: Ma
Slide 32: Medium-term Management Plan (Cash Allocation)
Medium-term Management Plan (Cash Allocation) Being conscious of our assessment by a wide range of stakeholders and the need to enhance corporate value, we are pushing forward with appropriate cash allocation Medium-term Management Plan 2022–24 — Creating The Future As One 30 billion yen or more Str
Slide 33: Progress in Medium-Term Management Plan
Progress in Medium-Term Management Plan Net sales, operating profit margin, and ROE targets * Although there is the gap between the consolidated earnings (%) (Millions of yen) forecast for the FY2024 and the target numbers for the final fiscal Target numbers for the final year of the medium-term man
Slide 34: Calculation of Cost of Capital and Improvement of Balance Sheet
Calculation of Cost of Capital, etc. and Improvement of Balance Sheet Our recognition is: Cost of capital at approx. 7% and WACC at approx. 6%. We will take measures, such as utilizing interest-bearing liabilities, to improve capital efficiency, and in this way we will further lower the cost of capi
Slide 35: Stepping up Shareholder Returns
Stepping up Shareholder Returns Shareholder return policy: Minimum annual dividend of 54 yen per share + Flexible purchase of treasury shares. Total return ratio of 100% throughout the period of the current Medium-term Management Plan: (Yen) (%) 160 150 yen for FY2024, an increase of 63 yen 120 101.
Slide 36: Stepping up Shareholder Returns
Stepping up Shareholder Returns Shareholder return policy: Minimum annual dividend of 54 yen per share + Flexible purchase of treasury shares. (Millions of Total return ratio of 100% throughout the period of the current Medium-term Management Plan: yen) 150 yen for FY2024, an increase of 63 yen (%)
Slide 37: 6. TOPICS
MI KYoKuTo 6. TOPICS
Slide 38: TOPICS (1) Opening after Renovation of Tohoku Branch/Sendai Service Center
TOPICS (1) Opening after Renovation of Tohoku Branch/Sendai Service Center The Tohoku Branch of Kyokuto Kaihatsu Kogyo was reopened after renovation on April 23, after being relocated, expanded and having Tohoku Branch of NIPPON TREX and Sendai Service Center, which is a service plant directly manag
Slide 39: TOPICS (2) Disclose Financial Information on Climate Change
TOPICS (2) Disclose Financial Information on Climate Change Disclose financial information on the Company’s website regarding its response to climate change, in accordance with the TCFD framework. (July 31, 2024: https://www.kyokuto.com/csr/pdf/csr_climate01.pdf) ⇒ Comply with [Supplemental Principl
Slide 40: For Reference: Supplementary Data
For Reference: Supplementary Data 39
Slide 41: Overview of Special Purpose Vehicles Business
Overview of Special Purpose Vehicles Business *In case of mounting on trucks Truck manufacturer/Dealer Trading company /User (1) (2) Chassis (4) Delivery (1) (4) Delivery Ordering delivery Ordering [Sales made] [Sales made] (Consigned to) Completion (3) Mounting Truck undercarriage (chassis) Body 40
Slide 42: Group's Main Products
Group's Main Products <Figures represent market share. Survey by the Company (as of the end of June 2024)> Red: Product with No. 1 market share Blue: Product with No. 2 market share Pneumatic bulk carrier (41.5%) Trailer (43.3%) Concrete pump truck (74.4%) Single-car carrier truck Tank truck/Sprinkl
Slide 43: Domestic Production Network
Domestic Production Network Miki Plant NIPPON TREX Head Office (Miki City, Hyogo Prefecture) (Toyokawa City, Aichi ➢ Concrete pump truck Prefecture) ➢ Refuse truck ➢ Trailer ➢ Tank truck ➢ Van ➢ In-house production of functional components NIPPON TREX Otowa Office Fukuoka Plant (Toyokawa City, Aichi
Slide 44: Overseas Production Network
Overseas Production Network Kunshan Plant (Start of operation: April 2005) ➢ Mixer truck India Plant (Incorporated into the Group: December 2020) ➢ Dump truck ➢ Trailer ➢ Tank truck Australia Plant (Incorporated into the Group: Acquisition of a stake in July 2023) Kyokuto Australia Pty Ltd ➢ Mixer t
Slide 45: Overview of Environmental Equipment and Systems Business
Overview of Environmental Equipment and Systems Business Municipality Broad-based association Waste management-related companies Ordering Ordering Plant construction and Contract for operation equipment installation and maintenance The Group is contracted to operate Track record of deliveries to 205
Slide 46: Overview of Car Parking Systems Business
Overview of Car Parking Systems Business [Multi-story parking systems] General contractor Developer Condominium management association Manufacture of multi-story parking systems Maintenance and 91,839 pallets renovation Ordering nationwide Ordering *At the end of June 2024 [Pay-and-display parking l
Slide 47: Major Capital Investments and M&A
Major Capital Investments and M&A Business Investment item Investment details Implementation period Strengthen the R&D System FY2026 Construction of a technical center The speed in developing new products will be Planned to be completed roughly doubled. SATRAC ENGINEERING PRIVATE LIMITED, Boost prod
Slide 48: Major Capital Investments
Major Capital Investments No rth Construction of a technical center (to be completed in FY2026) W Ea es st t Retention pond So (which runoff ut h water is directed to) Securit y office Entranc e/Exit ◆The speed in developing new products will be roughly doubled. Retention pond 1Parking lot Yaman oka
Slide 49: Major Capital Investments
Major Capital Investments SATRAC, India: Construction of a plant in Chennai (to be completed in FY2025) SATRAC, a group company that posted record-high sales in the FY2023 due to high demand for specialty tracks in India, is constructing a new plant near the city of Chennai, in the state of Tamil Na
Slide 50: Progress of Mid-term Management Plan (Sustainability)
Progress of Mid-term Management Plan (Sustainability) T a r g e t v a l u e s a n d p r o g r e s s ◆ CO2 emission reduction rate Long-term Management Vision Target: Cut 38% or more (FY2030) *CO2 emission factor compared with FY2013 Reservoir Solar at Miki Plant Progress: Cut 22.3% (FY2023) Medium-t
Slide 51: without the Company’s permission is prohibited.
The forecasts in this document are based on information available as of the date of its publication. Actual results may differ from projected numbers due to various factors that could occur in the future. The copyright to this material belongs to Kyokuto Kaihatsu Kogyo Co., Ltd. Reproduction or dist
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