Slide 1: Takuma Co., Ltd. May 25, 2022
Takuma Co., Ltd. May 25, 2022 Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved.
Slide 2: Table of Contents
Table of Contents ▶ 1 Overview of FY2021(Ended 3/2022) Financial Results ▶ 2 Progress on 13th Medium-Term Management Plan (2021-2023) ▶ 3 Market Environment ▶ 4 Financial Forecast for FY2022(Ended 3/2023) ▶ 5 Reference Material Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved. 1
Slide 3: Table of Contents
Table of Contents ▶ 1 Overview of FY2021(Ended 3/2022) Financial Results ▶ 2 Progress on 13th Medium-Term Management Plan (2021-2023) ▶ 3 Market Environment ▶ 4 Financial Forecast for FY2022(Ended 3/2023) ▶ 5 Reference Material Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved. 2
Slide 4: Financial Results Summary for FY2021 (Ended 3/2022)
Financial Results Summary for FY2021(Ended 3/2022) • Both sales and profit were down with net sales of ¥134.0 billion and ordinary profit of ¥10.6 billion. FY2021 results • Orders received were a record high of ¥192.2 billion. • The order backlog also increased substantially to ¥445.3 billion. Long-
Slide 5: Financial Highlights for FY2021 (Ended 3/2022)
Financial Highlights for FY2021(Ended 3/2022) • Both sales and profit were down due primarily to changes in the project mix and rising prices of materials and machinery in the Domestic Environment and Energy Business. • Orders received reached a record high, trending at high levels against a backdro
Slide 6: FY2021 Breakdown by Segment
FY2021(Ended 3/2022) | Breakdown by Segment (Millions of yen) FYE 3/2022 FYE 3/2022 Change vs. FYE 3/2020 FYE 3/2021 (FY2021) (FY2021) FYE 3/2022 YoY beginning of (FY2019) (FY2020) Beginning of Plan after Q3 (FY2021) change Orders received year plan year plan revision Total 148,830 188,563 180,000 1
Slide 7: Domestic Business: Orders Received / Order Backlog
FY2021(Ended 3/2022) | Domestic Environment and Energy Business Orders Received / Order Backlog • Demand was steady, and stable orders received were secured for the full year. • Around 50% of the order backlog was for long-term operations (O&M). Orders received are also increasing steadily in after-
Slide 8: Domestic Business: Net Sales / Operating Profit
FY2021(Ended 3/2022) | Domestic Environment and Energy Business Net Sales / Operating Profit Both sales and profit were down due primarily to changes in the project mix and rising prices of materials and machinery in the EPC business despite steady growth of recurring revenue model businesses. (Mill
Slide 9: Overseas Business
FY2021(Ended 3/2022) | Overseas Environment and Energy Business • A stoker upgrade order was received for Taiwan in the midst of restrictions on operating activities and postponed plans due to COVID-19. • The majority of net sales over the past 3 years has been maintenance. We will build a structure
Slide 10: Package Boiler Business
FY2021(Ended 3/2022) | Package Boiler Business • Demand remains sluggish, primarily for lodging, due to COVID-19. • Although sales were down, restrictions on operating activities resulted in a decrease in operating expenses, leading to a slight increase in profit. (Millions of yen) Orders received /
Slide 11: Equipment and Systems Business
FY2021(Ended 3/2022) | Equipment and Systems Business • Orders received for semiconductor industrial equipment were favorable. In the building equipment business, orders received were low due to sluggish demand arising from plans postponed as a result of COVID-19 and intensification of competition.
Slide 12: Table of Contents
Table of Contents ▶ 1 Overview of FY2021(Ended 3/2022) Financial Results ▶ 2 Progress on 13th Medium-Term Management Plan (2021-2023) ▶ 3 Market Environment ▶ 4 Financial Forecast for FY2022(Ended 3/2023) ▶ 5 Reference Material Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved. 11
Slide 13: Progress on 13th Medium-Term Management Plan
Progress on 13th Medium-Term Management Plan We fell slightly short of the plan in the first year, but our aim is to achieve ordinary profit of ¥36.0 billion by steadily accumulating orders. 2021-2023 2021-2023 Target ordinary profit ¥36.0 billion Orders received ¥450.0 billion (cumulative) (cumulat
Slide 14: Main Orders Received (FY2021)
13th Medium-Term Management Plan | Main Orders Received (FY2021) Orders were steady, including 3 waste treatment plant DBO (design, build, operate) projects and 6 biomass power plants. Segment Delivered to: Location Capacity Scheduled Completion Municipal solid waste Q1 Uwajima Public Association (O
Slide 15: Preparation for Growth
13th Medium-Term Management Plan | Preparation for Growth In addition to enhancing our hiring and training of human resources for sustainable growth, we will work on R&D including CO2 separation, capture, and utilization technology, as well as increasing added value through the utilization of digita
Slide 16: Human Resources Investment, R&D, and Capital Investment
13th Medium-Term Management Plan | Human Resources Investment, R&D, and Capital Investment • We will step up our hiring efforts in our Construction, Engineering, and Maintenance divisions to expand our resources. • In addition to R&D for further fine tuning of our core technologies and decarbonizati
Slide 17: Table of Contents
Table of Contents ▶ 1 Overview of FY2021(Ended 3/2022) Financial Results ▶ 2 Progress on 13th Medium-Term Management Plan (2021-2023) ▶ 3 Market Environment ▶ 4 Financial Forecast for FY2022(Ended 3/2023) ▶ 5 Reference Material Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved. 16
Slide 18: Market Environment: Municipal Solid Waste Treatment Plant
Market Environment | Municipal Solid Waste Treatment Plant (Domestic Environment and Energy Business) • Demand for renewal and lifetime improvement will continue due to the aging of facilities, and the market size for renewal demand is expected to remain at 3,000-4,000 tons/day for the time being. •
Slide 19: Market Environment: Municipal Solid Waste Treatment Plant (Operations)
Market Environment | Municipal Solid Waste Treatment Plant (Domestic Environment and Energy Business) • Our operation business is increasing steadily, and as of the beginning of FY2022, we have received orders for 18 facilities, 12 of which are in operation. *DBO only • We will continue working to c
Slide 20: Market Environment: Energy Plants
Market Environment | Enegry Plants (Domestic Environment and Energy Business) • Small and medium-sized biomass power generation centered on domestic materials and post-delivery maintenance demand are trending steadily. Fuel conversion demand has also increased against a backdrop of soaring energy pr
Slide 21: Market Environment: Overseas Business
Market Environment | Overseas Environment and Energy Business • In emerging countries, there is potential robust demand for waste power. We will continue to work on establishing a system (including partnerships with local companies) for acquiring orders with local subsidiaries as our bases of operat
Slide 22: Table of Contents
Table of Contents ▶ 1 Overview of FY2021(Ended 3/2022) Financial Results ▶ 2 Progress on 13th Medium-Term Management Plan (2021-2023) ▶ 3 Market Environment ▶ 4 Financial Forecast for FY2022(Ended 3/2023) ▶ 5 Reference Material Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved. 21
Slide 23: Forecasts for FY2022 (Ended 3/2023)
Forecasts for FY2022(Ended 3/2023) • We expect an increase in both sales and profit owing to an improvement in the EPC project mix in the Domestic Environment and Energy Business. • We expect demand to remain strong for municipal solid waste treatment plants and biomass power plants. Our aim is to k
Slide 24: FY2022 Results Forecasts by Segment
FY2022(Ended 3/2023) | Results Forecasts by Segment (Millions of yen) FYE 3/2023 FYE 3/2021 FYE 3/2022 (FY2022) YoY Orders received (FY2020) (FY2021) Beginning of year change forecasts Total 188,563 192,244 170,000 (22,244) Domestic Environment and Energy 160,591 164,865 141,500 (23,365) Overseas En
Slide 25: Shareholder Return
Shareholder Return • Takuma has adopted a policy of returning profits to shareholders founded on the principle of maintaining a stable dividend while working to strengthen its constitution to ensure competitiveness in an increasingly challenging market and taking into account a comprehensive range o
Slide 26: In Closing
In Closing We are steadily expanding recurring revenue by such means as entering comprehensive contracts for municipal solid waste treatment plant operations and new deliveries of biomass power plants, so we expect recurring revenue model businesses to grow as a stable revenue foundation. We also be
Slide 27: Table of Contents
Table of Contents ▶ 1 Overview of FY2021(Ended 3/2022) Financial Results ▶ 2 Progress on 13th Medium-Term Management Plan (2021-2023) ▶ 3 Market Environment ▶ 4 Financial Forecast for FY2022(Ended 3/2023) ▶ 5 Reference Material Copyright 2022 TAKUMA Co.,Ltd. All Rights Reserved. 26
Slide 28: Reference Material: Management Principles
Reference Material | Management Principles • In 1912, founder Tsunekichi Takuma invented the first boiler in Japan using purely Japanese technology. • He founded the company in 1938 with the founding spirit "Serve society through boiler manufacturing". The Management Principles of the Takuma Group a
Slide 29: Reference Material: History
Reference Material | History • In 1912, founder Tsunekichi Takuma invented a boiler using purely Japanese technology, and in 1938, he founded Takuma as a boiler manufacturing company. While improving boiler technology, the Company cultivated combustion and water treatment technologies and utilized t
Slide 30: Reference Material: Performance Trends
Reference Material | Performance Trends • A significant amount of renewal/remodeling work on municipal solid waste treatment plants was concentrated in the period up to around the year 2000. We developed our overseas business to make up for the diminished demand following this work, but we still rec
Slide 31: Long-Term Vision towards 2030 (Vision 030)
Reference Material | Long-Term Vision towards 2030 (Vision 2030) We aim to maintain our role of being an indispensable presence in society as a leading company in the field of renewable energy utilization and environmental protection by promoting ESG management together with customers and society fo
Slide 32: Reference Material: Business Segment
Reference Material | Business Segment • Out of our four segments, the Domestic Environment and Energy Business accounts for roughly 80% of net sales. Profits were also driven by this business. • Out of these net sales, the Municipal Solid Waste Treatment Plant Business accounts for around 60%, the E
Slide 33: Business Model (Domestic Business)
Reference Material | Business Model (Domestic Environment and Energy Business) • Plants delivered by the Company are required to operate in a stable manner long term for 20 and 30 years as important infrastructure that supports regional waste treatment and supplies electricity and heat. • By constru
Slide 34: Illustration of Recording of Net Sales/Order Backlog in DBO Business
Reference Material | Illustration of Recording of Net Sales/Order Backlog in DBO Business • The EPC portion is recorded as sales according to progress on the project. More tends to be recorded in the latter half of a project as construction progresses. • The O&M portion is recorded as orders when co
Slide 35: Financial Data (Quarterly): Orders and Backlog
Reference Material | Financial Data (Quarterly) In the core business of municipal solid waste treatment plants, the amount of each order is substantial, so the amount of orders received fluctuates depending on the timing of the contract when looking at the data by quarter. (Millions of yen) E 3/2020
Slide 36: Financial Data (Quarterly): Net Sales and Profit
Reference Material | Financial Data (Quarterly) As for net sales, much work is delivered at the end of the fiscal year, and progress and deliveries tend to increase going into the fourth quarter, so net sales tend to be higher in the fourth quarter. (Millions of yen) E 3/2020 (FY2019) E 3/2021 (FY20
Slide 37: Breakdown of Consolidated Results for Domestic Business
Reference Material | Breakdown of Consolidated Results for Domestic Environment and Energy Business (100M yen) E 3/2020 E 3/2021 E 3/2022 Orders received (FY2019) (FY2020) (FY2021) Domestic Environment and Energy 1,231 1,605 1,648 Municipal Solid Waste Treatment (EPC) 425 855 1,414 Municipal Solid W
Slide 38: 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