Slide 1: Financial Briefing Materials for FY2019
Financial Briefing Materials for FY2019 May 26, 2020 Takuma Co., Ltd. Copyright ©TAKUMA CO., LTD. All rights reserved
Slide 2: Contents
Contents 1. Company Overview 2. Consolidated Results for FY2019 3. Progress in the 12th Medium-Term Management Plan and the Market Environment 4. Consolidated Earnings Forecast for FY2020 5. Supplementary Materials Copyright ©TAKUMA CO., LTD. All rights 1 reserved
Slide 3: Contents
Contents 1. Company Overview 2. Consolidated Results for FY2019 3. Progress in the 12th Medium-Term Management Plan and the Market Environment 4. Consolidated Earnings Forecast for FY2020 5. Supplementary Materials Copyright ©TAKUMA CO., LTD. All rights 2 reserved
Slide 4: Company Outline
Company Outline Name Takuma Co., Ltd. Established June 10, 1938 Representa Hiroaki Nanjo, President and CEO tive Head office 2-2-33 Kinrakujicho, Amagasaki-shi, location Hyogo Prefecture Capital 13.3 billion yen Main EPC and after-sales service for environmental and energy plants, including waste Bu
Slide 5: Corporate Vision
Corporate Vision The Group will strive to maintain its role of being an indispensable presence in society as a leading company in the field of renewable energy utilization and environmental protection and achieve 10 billion yen in ordinary profit in FY2020. We’re implementing initiatives to address
Slide 6: Segments
Segments ■Domestic Environment and Energy Business Sales and after-sales service of municipal solid waste treatment plants, water treatment plants, energy plants ■Overseas Environment and Energy Business Sales and after-sales service of biomass power plants, waste treatment plants ■Package Boiler Bu
Slide 7: Contents
Contents 1. Company Overview 2. Consolidated Results for FY2019 3. Progress in the 12th Medium-Term Management Plan and the Market Environment 4. Consolidated Earnings Forecast for FY2020 5. Supplementary Materials Copyright ©TAKUMA CO., LTD. All rights 6 reserved
Slide 8: Consolidated Results
Consolidated Results The Group realized sales and profit growth. It achieved its ordinary profit target of at least 10 billion yen. The backlog remained high thanks to robust orders. （100M yen） FY2018 FY2019 Change Initial Revised Results Results vs. FY2018 forecast forecast* Orders received 1,79
Slide 9: Orders received
Orders received （100M yen） Points FY2018 FY2019 Change Orders received remained high because we steadily captured orders for robust Domestic demand, primarily from municipal solid Environment and Energy 1,536 1,231 (304) waste treatment plants and biomass power plants. Overseas Environment and Energ
Slide 10: Net sales
Net sales （100M yen） Points FY2018 FY2019 Change Net sales rose thanks to steady progress in the construction of previously ordered Domestic plants, primarily municipal solid waste Environment and Energy 937 1,081 143 treatment plants. Overseas Environment and Energy 30 11 (19) （100M yen) 1,600 Pack
Slide 11: Operating profit
Operating profit （100M yen） Points FY2018 FY2019 Change Profits fell due to the posting of a provision for loss on construction contracts. This Domestic was due to certain issues at an industrial Environment and Energy 124 106 (17) waste treatment plant delivered by the Domestic Environment and Ener
Slide 12: Backlog
Backlog （100M yen） Points FY2018 FY2019 Change The backlog remained high thanks to robust orders in our municipal solid waste Domestic treatment plant EPC and DBO Environment and Energy 3,222 3,373 150 businesses. Overseas Environment and Energy 5 7 2 （100M yen) 3,500 34 Package Boiler 38 39 0 3,400
Slide 13: Consolidated financial position
Consolidated financial position Total assets rose due to increases in notes and accounts receivable. Net assets rose as a result of profit attributable to owners of parent. （100M yen） March 31, March 31, Change 2019 2020 Total assets 1,559 1,634 75 Net assets 830 850 19 Capital adequacy ratio 53.0
Slide 14: Topic - New Harima Factory
Topic 1 - New Harima Factory Increasing production capacity Accommodating a diverse range of needs against the backdrop of increasing use of renewable energy ･ High boiler demand ･ Larger boiler size ･ Higher-temperature, higher-pressure (higher-efficiency) designs, etc. Establishing an after-sales
Slide 15: Topic - Municipal solid waste treatment plant business
Topic 2 （Related SDGs） Initiatives in the municipal solid waste treatment plant business Strengthening our ability to accommodate general evaluation systems In keeping with the Act on Promoting Quality Assurance in Public Works, which was enacted in 2005, most local governments in Japan have adopted
Slide 16: Topic - Orders for biomass power plants
Topic 3 （Related SDGs） Receiving orders for biomass power plants for Chugoku Mokuzai Co., Ltd. (Gohara Factory and Hyuga Factory) We received orders for two biomass power plants from Chugoku Mokuzai Co., Ltd., a major manufacturer of lumber, laminated lumber, and pre-cut lumber products. Both of the
Slide 17: Contents
Contents 1. Company Overview 2. Consolidated Results for FY2019 3. Progress in the 12th Medium-Term Management Plan and the Market Environment 4. Consolidated Earnings Forecast for FY2020 5. Supplementary Materials Copyright ©TAKUMA CO., LTD. All rights 16 reserved
Slide 18: Consolidated results and dividends
Consolidated results and dividends Sales (100M yen) Dividend per share (yen) Ordinary profit (100M yen) 1999 Act on Special Measures against Dioxins enacted. 2,000 250 40 2012 Feed-in tariff (FIT) program launched. 1,800 200 35 1,600 150 2008 Global financial crisis occurs. 30 1,400 1,200 100 25 1,0
Slide 19: Progress in the 12th Medium-Term Management Plan
Progress in the 12th Medium-Term Management Plan Final stage of the current Medium- and Long-Term Vision We're working to build capabilities based on forecast changes in the business environment so that we can realize our vision and achieve steady growth afterwards. The Group will strive to mainta
Slide 20: Market Environment - Municipal solid waste treatment plants
Market Environment - Municipal solid waste treatment plants Replacement and service life extension demand continues due to aging. Facility age (Tons per day) Market size 5,000 More than 40, 4,500 5% 4,000 Forecast 3,500 3,000~4,000 More than 30, Tons per day 20 or less, 3,000 18% 35% 2,500 2020 and
Slide 21: Market Environment - DBO approach gaining traction
Market Environment - Municipal solid waste treatment plants The DBO approach is gaining traction in bidding for facility construction. Treatment capacity DBO ratio of total order in the market (Tons per day) (％) 5,000 80.0 4,500 70.0 4,000 60.0 3,500 50.0 3,000 2,500 40.0 2,000 30.0 1,500 20.0 1,0
Slide 22: Market Environment - DBO projects received by Takuma
Market Environment - Municipal solid waste treatment plants The number of DBO projects which Takuma received is rising steadily. Operation FY ’07 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 ’27 ‘28 ‘29 Duration of name operation Saitama 15 yr. Suminoe 20 yr. Machida 19 yr. 3 mos. Na
Slide 23: Market Environment - Biomass power plants
Market Environment - Biomass power plants Demand remains strong in order to achieve the FY2030 target for biomass power generation as a percentage of all power generation. Electricity purchase prices for the small and medium-size power plants in which Takuma specializes remain high. Demand for
Slide 24: Contents
Contents 1. Company Overview 2. Consolidated Results for FY2019 3. Progress in the 12th Medium-Term Management Plan and the Market Environment 4. Consolidated Earnings Forecast for FY2020 5. Supplementary Materials Copyright ©TAKUMA CO., LTD. All rights 23 reserved
Slide 25: Consolidated Earnings Forecast for FY2020
Consolidated Earnings Forecast for FY2020 We expect to see continued robust demand for waste incineration plants and biomass power plants. Sales and profit will rise thanks to progress on plant construction. We plan to increase the dividend per share. （100M yen） FY2019 FY2020 Change Results Forec
Slide 26: Forecast by Segment for FY2020
Forecast by Segment for FY2020: Orders received, sales, and Backlog (100M yen) FY2019 (Results) FY2020 (Forecast) Orders received Domestic Environment and Energy 1,231 1,525 Overseas Environment and Energy 13 40 Package Boiler 179 170 Equipment and Systems 67 70 Sales Domestic Environment and Energy
Slide 27: Conclusion
Conclusion Reflecting its goal of maintaining its role of being an indispensable presence in society as a leading company in the field of renewable energy utilization and environmental protection, the Takuma Group will continue to contribute to the resolution of social issues and the realization of
Slide 28: Contents
Contents 1. Company Overview 2. Consolidated Results for FY2019 3. Progress in the 12th Medium-Term Management Plan and the Market Environment 4. Consolidated Earnings Forecast for FY2020 5. Supplementary Materials Copyright ©TAKUMA CO., LTD. All rights 27 reserved
Slide 29: History
History 2017 2000 and beyond Order received for a 50,000 kW biomass power Takuma continues to provide technology for utilizing and rendering plant(FIT-approved facility) harmless a variety of waste and biomass energy sources through its businesses in the renewable energy and environmental protection
Slide 30: Management Principles
Management Principles Company Motto Value Technology, Value People, Value the Earth Management Principles Takuma will strive for social contribution, corporate value enhancement, long- term corporate development and the satisfaction of all stakeholders by providing goods and services that are needed
Slide 31: Domestic Environment and Energy Business
Segments ■Domestic Environment and Energy Business （ Related SDGs ） Municipal Solid Waste Treatment Plant Business No. of waste incineration plants delivered : Most of any manufacturer in Japan We supply the following products and services to local governments: Waste incineration plants, Life extens
Slide 32: Domestic Environment and Energy Business - Energy plants
Segments ■Domestic Environment and Energy Business （Related SDGs） Energy plants We have extensive experience and expertise that we have accumulated since its founding. No. of plants delivered under FIT program: Most of any manufacturer in Japan We supply the following products and services to privat
Slide 33: Domestic Environment and Energy Business - Water treatment plants
Segments ■Domestic Environment and Energy Business （Related SDGs） Water treatment plants Energy-saving/energy-creating sludge power generation systems with low greenhouse gas (N2O) emissions We supply the following products and services, primarily to water treatment plants operated by local governme
Slide 34: Other segments
Other segments （ Related SDGs ） ■Overseas Environment and Energy Business Sales and after-sales service of biomass power plants, waste treatment plants ■Package Boiler Business Manufacturing and sales of package boiler • Vacuum-type hot water heaters (Vacotin Heater) • Once-through boilers (Equos) ■
Slide 35: Breakdown of Consolidated Results for Domestic Environment and Energy Business
Supplementary Material • Breakdown of Consolidated Results for Domestic Environment and Energy Business （100M yen） Orders FY2019 Net sales Backlog received Municipal Solid Waste Treatment 855 706 2,426 Plant Energy Plant 319 282 884 Water Treatment Plant, others 56 92 62 Total 1,231 1,081 3,373 Copy
Slide 36: Handling of this document
Handling of this document Information related to performance forecasts, business plans, and related topics included in this document or otherwise provided during financial briefings is based on data currently available to the Company and on certain assumptions that are deemed to be reasonable. This