Asahi Kogyosha Co., Ltd. · TSE:1975
Asahi Kogyosha — FY2025 Earnings Presentation
43 slides from Asahi Kogyosha's earnings presentation, May 29, 2025
Slide 1: Financial results briefing materials for the fiscal year ended March 2025
Financial results briefing materials for the fiscal year ended March 2025 May 29, 2025 TSE Prime Market (Securities Code: 1975) Asahi Kogyosha Writeup of Asahi Kogyosha Website Financial Results Briefing (logmi Finance)
Slide 2: Agenda
Agenda 1 Company overview P.3 Overview of financial results for the fiscal year P.6 2 ended march 2025 Performance forecast for the fiscal year ending P.15 3 March 2026 4 Capital policy P.19 Progress on the 18th Medium-term Management P.23 5 Plan Projects for the 100th anniversary of the 6 P.28 foun
Slide 3: 1. Company overview
1. Company overview © ASAHI KOGYOSHA CO.,LTD. 3
Slide 4: What Asahi Kogyosha is
What Asahi Kogyosha is Installation Work Division Equipment Division One-stop provision of work related to Independent development, design, installation manufacture, and sale of precision Accounts for more than 90% of Asahi environmental control equipment, dryer Kogyosha sales. systems, and other eq
Slide 5: Company information
Company information Basic financial information Basic company information (FY 3/25 consolidated results) Company name Asahi Kogyosha Co., Ltd. Net sales 91,947 million yen Ordinary income 7,582 million yen Date of April 1925 establishment Total assets 80,861 million yen Net assets 42,027 million yen
Slide 6: 2. Overview of financial results for the fiscal year ended March 2025
2. Overview of financial results for the fiscal year ended March 2025 © ASAHI KOGYOSHA CO.,LTD. 6
Slide 7: Overview of financial results for the fiscal year ended March 2025
Overview of financial results for the fiscal year ended March 2025 ▎ Orders met our initial targets but fell slightly below the figures for the previous fiscal year. ▎ Net sales remained largely unchanged, but gross profit improved considerably due to significant improvements in gross margins. ▎ Ope
Slide 8: Orders, net sales, and operating income by segment
Orders, net sales, and operating income by segment ▎ In the Installation Work Division, while both orders and net sales declined, operating income grew significantly. ▎ In the Equipment Division, both orders and net sales grew significantly, resulting in lower operating losses. FY 3/23 FY 3/24 FY 3/
Slide 9: Trends in quarterly results
Trends in quarterly results ▎ Orders and net sales increased in the fourth quarter over the third quarter. ▎ Profits at each stage also grew significantly due to an improvement in the gross margin. FY 3/24 FY 3/25 (Unit: million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Orders 24,324 39,802 19,947 13,511 21,087
Slide 10: Actual results by segment: Orders
Actual results by segment Orders ▎ Overall orders declined from the previous year. ▎ In the Installation Work Division, orders decreased for transportation/communication environment, health/medical environment, and distribution environment facilities, but increased for business environment and produ
Slide 11: Actual results by segment: Net sales
Actual results by segment Net sales ▎ Overall sales grew from the previous fiscal year. ▎ In the Installation Work Division, sales to living/cultural environment and production environment facilities declined; however, sales to business environment and health/medical environment facilities grew. ▎ I
Slide 12: Carryovers for the subsequent fiscal year
Carryovers for the subsequent fiscal year ▎ Overall carryovers for the subsequent fiscal year remained high and nearly on par with the previous fiscal year. ▎ Carryovers for production environment facilities such as data centers grew significantly due to the emphasis on obtaining orders from these f
Slide 13: Balance sheet
Balance sheet ▎ Total assets decreased by 3,150 million yen from the end of the preceding fiscal year due to various factors, including a decrease in electronically recorded monetary claims. ▎ Total liabilities decreased by 6,421 million yen from the end of the preceding fiscal year due to various f
Slide 14: Statement of cash flows
Statement of cash flows ▎ Cash flow from operating activities was positive by 1,276 million yen, due primarily to significant growth in profit before income taxes. ▎ Cash flow from investing activities was positive by 612 million yen, due primarily to income from the sale of investment securities. ▎
Slide 15: 3. Performance forecast for the fiscal year ending March 2026
3. Performance forecast for the fiscal year ending March 2026 © ASAHI KOGYOSHA CO.,LTD. 15
Slide 16: Forecast for the fiscal year ending March 2026
Forecast for the fiscal year ending March 2026 ▎ Given the firm capital investment environment, we anticipate growth in orders and net sales over the fiscal year ended March 2025, and are targeting 100,000 million yen for each. ▎ Despite concerns that costs will rise due to the continuing high cost
Slide 17: Outlook by segment
Outlook by segment ▎ In the Installation Work Division, given the strong appetite for capital investments, we anticipate significant growth in both orders and net sales. ▎ In the Equipment Division, both orders and net sales for semiconductors and FPDs are expected to remain firm. For dryer products
Slide 18: Performance trends (past five years)
Performance trends (past five years) Net sales trend (Million yen) 120,000 100,000 100,000 91,676 91,947 80,171 80,000 70,435 68,820 60,000 40,000 20,000 0 FY 3/21 FY 3/22 FY 3/23 FY 3/24 FY 3/25 FY 3/26 (Forecast) Operating income trends (Million yen) 8,000 7,248 7,450 7,000 6,000 5,000 4,568 Expec
Slide 19: 4. Capital policy
4. Capital policy © ASAHI KOGYOSHA CO.,LTD. 19
Slide 20: Promoting management keenly aware of the cost of capital (past five years)
Promoting management keenly aware of the cost of capital (past five years) ▎ Based on the ongoing improvements in capital efficiency, ROE for the fiscal year ended March 2025 exceeded 15% and remains above the Company’s perceived cost of shareholders’ equity (7%-8%). ▎ We are steadily reducing cross
Slide 21: Returns to shareholders (past five years)
Returns to shareholders (past five years) ▎ We have set a consolidated dividend payout ratio of 40% or more as our target. ▎ To commemorate the 100th anniversary of the Company’s founding (April 3, 2025) and the achievement of our highest profit on record, for year-end dividends for the fiscal year
Slide 22: Share price and trading value
Share price and trading value ▎ Our stock price has risen significantly due to solid business performance and the continuing implementation of IR measures, among other factors. ▎ Our liquidity has improved significantly due largely to two stock splits. Average daily trading value has improved signif
Slide 23: 5. Progress on the 18th Medium-term Management Plan
5. Progress on the 18th Medium-term Management Plan © ASAHI KOGYOSHA CO.,LTD. 23
Slide 24: Overview of the 18th Medium-term Management Plan: Basic policy
Overview of the 18th Medium-term Management Plan ▎ Formulated as the final stage (plan period: April 2023 to March 2026) of the long-term vision ASAHI-VISION 100: Taking on Challenge to Change Transformation ▎ We are roughly two-thirds of the way through the plan period. We are steadily promoting as
Slide 25: 18th Medium-term Management Plan: Progress in key numerical targets
18th Medium-term Management Plan: Progress in key numerical targets ▎ Focusing on promoting strategic activities to win orders—a priority target set under our Medium-term Management Plan—we achieved our profit target for the final year of the plan for two consecutive years. ▎ For our business target
Slide 26: Mid-point progress on the 18th Medium-term Management Plan
Mid-point progress on the 18th Medium-term Management Plan ▎ Having entered the final year of our 18th Medium-term Management Plan, we performed a self-evaluation of our initiatives to date. ▎ We remain committed companywide to achieving our targets while also striving for sustainable growth. Improv
Slide 27: Human resource strategy: investing in human capital
Human resource strategy: investing in human capital ▎ We believe people are our greatest asset and the source of our competitiveness. We recognize securing and developing human resources as the most important issue. ▎ We will promote diversity and a work-life balance and focus on the development of
Slide 28: 6. Projects for the 100th anniversary of the foundation
6. Projects for the 100th anniversary of the foundation © ASAHI KOGYOSHA CO.,LTD. 28
Slide 29: Asahi Kogyosha marked its centennial on April 3, 2025
Asahi Kogyosha marked its centennial on Thursday, April 3, 2025. ▎ We solicited designs through an internal competition and decided on our 100th anniversary logo. ▎ In March 2025, we launched the Asahi Kogyosha 100th Anniversary Website. ▎ To commemorate a century since our founding, we have schedul
Slide 30: The ASAHI PHILOSOPHY: Our new corporate philosophy
The ASAHI PHILOSOPHY: Our new corporate philosophy ▎ On the occasion of our centennial, we established the ASAHI PHILOSOPHY as the new corporate philosophy for the Asahi Kogyo Group. ▎ This philosophy consists of four Ps, centered on our Purpose. The ASAHI PHILOSOPHY: Our new corporate philosophy Pu
Slide 31: ASAHI VISION 2050: Our new long-term vision
ASAHIVISION 2050: Our new long-term vision ▎ Based on ASAHI PHILOSOPHY, our new corporate philosophy, we’ve established ASAHI VISION 2050, a long-term vision for the next 100 years. ▎ Our slogan under this vision is “Designing an Exciting Future ～Imagination & Creativity～” ▎ Armed with Imagination a
Slide 32: Appendix
Appendix © ASAHI KOGYOSHA CO.,LTD. 32
Slide 33: Asahi Kogyosha's strengths
Asahi Kogyosha’s strengths ▎ Our core competences lie in technical capabilities cultivated since our founding in air conditioning, sanitation, and water supply and drainage. ▎ Based on these core competences, we develop competitive advantages by operating as an integrated entity, in close contact wi
Slide 34: Advanced technological capabilities responsive to market trends
[Technological capabilities related to air, water, and heat cultivated over 100 years since our founding] Advanced technological capabilities responsive to market trends ▎ Technologies responding to various trends have been developed as demands for industrial construction rise with the development o
Slide 35: Comprehensive proposal capabilities that merge technologies related to air, water, and heat
[Integrated, project-based business operation] Comprehensive proposal capabilities that merge technologies related to air, water, and heat ▎ We respond to corporate sustainability initiatives as an environment-creating company to develop domestic production bases amid the continuing shift toward lab
Slide 36: Virtuous cycle driven by grasp of customer needs
[Operating in close contact with customers] Virtuous cycle driven by grasp of customer needs ▎ Operating in close contact with customers makes it possible to grasp diverse customer needs. ▎ We have established a virtuous cycle in which we leverage identified customer needs to develop technologies an
Slide 37: SDGs (1/4) Asahi Kogyosha Group's Basic Policy on SDGs
SDGs (1/4) Asahi Kogyosha Group’s Basic Policy on SDGs ▎ The Group's corporate philosophy is to contribute to the development of culture by creating optimal spaces, drawing on advanced technologies based on the science of air, water, and heat while taking good care of the global environment and reso
Slide 38: SDGs (2/4) Themes of initiatives and specific measures in FY 2025
SDGs (2/4) Themes of initiatives related to SDGs and specific measures in FY 2025 Priority issues addressed by Related SDG goal Initiative theme Specific measures the Group Reducing energy consumption at business sites Reducing environmental impact through environmental Recycling recovered fluorocar
Slide 39: SDGs (3/4) Themes of initiatives and specific measures in FY 2025
SDGs (3/4) Themes of initiatives related to SDGs and specific measures in FY 2025 Priority issues addressed by Related SDG goal Initiative theme Specific measures the Group Reducing statutory overtime hours Promoting work-life balance Encouraging employees to take paid leave Encouraging employees to
Slide 40: SDGs (4/4) Themes of initiatives and specific measures in FY 2025
SDGs (4/4) Themes of initiatives related to SDGs and specific measures in FY 2025 Priority issues addressed by Related SDG goal Initiative theme Specific measures the Group Strengthening relationships with partner companies to Promoting effective activities based maintain appropriate relationships a
Slide 41: Installation Work Division: business content and domains
Installation Work Division: business content and domains ▎ The Installation Work Division performs air-conditioning installation and sanitation installation work using air, water, and heat technologies and provides one-stop engineering for customer facilities, from planning and proposal to construct
Slide 42: Equipment Division
Equipment Division ▎ We develop, manufacture, and sell precision environmental control equipment to leading-edge industries, including manufacturing equipment for semiconductors, FPDs, and electronics. ▎ By supplying primarily on an OEM-basis, we have focused on development, design, and manufacturin
Slide 43: Inquiries
This document contains forward-looking statements regarding industry trends and the activities undertaken by Asahi Kogyosha based on current plans, estimates, expectations, and forecasts. Various risks and uncertainties are inherent in these forward-looking statements. Risks, uncertainties and other