Trusco Nakayama Corporation · TSE:9830
Trusco Nakayama — FY2022 Earnings Presentation
51 slides from Trusco Nakayama's earnings presentation, Mar 14, 2023
Slide 1: The 60th Business Year Business Performance Data Analysis
The 60th Business Year Business Performance Data Analysis FYE December 31, 2022 Published by: Securities code: 9830 Business Administration Headquarters, Corporate Planning Division, Public Relations & IR Section Post code: 105-0004 Trusco Fiorito Bldg. 10th floor, 4-28-1, Shinbashi, Minato-ku, Toky
Slide 2: Table of Contents
Table of Contents 60th Business Year, FYE December 31, 2022 P3 Company overview P4 Business flow P5-9 A: Company-wide Business Performance P10-19 B: Sales Performance P20-26 C: Financial and Other Performances P2８-35 D: Key Indicators P36-４１ E: 61st Management Plan P42-45 F: ESG Information P47-50 G
Slide 3: Company overview
Company overview Founding May 15, 1959 Tetsuya Nakayama, President Chairman, Nakayama Visually Impaired Welfare Foundation Representative Vice president, Japan Federation of Machine Tool Distributors Associations President, Osaka Machine Appliance Wholesaler Cooperative Tokyo Head Office (Minato-ku,
Slide 4: Business flow
Business flow We are a specialized trading company that purchases professional tools from our suppliers and sells them to machine tool dealers, internet order companies, general hardware mass discounters, and other customers. Through us, professional tools can be delivered quickly, smoothly, and rel
Slide 5: A. Company-wide Business Performance
A. Company-wide Business Performance P6 A-1. Accounting highlights P7 A-2. [Consolidated] Business performance P8 A-3. [Consolidated] Monthly sales P8 A-4. [Consolidated] Monthly sales by sales route 5 ©2023 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 6: A-1. Accounting highlights
A-1. Accounting highlights ▮ Performance in the 60th business year <Performance> Net sales: 246,453 million yen (up 8.6% year-on-year) SGA: 37,493 million yen (up 8.1%) Operating income: 14,667 million yen (up 12.8% year-on-year) ・ By strengthening efforts in our User Direct Shipment Service and MRO
Slide 7: A-2. [Consolidated] Business performance
A-2. [Consolidated] Business performance FYE December 31, 2021 FYE December 31, 2022 Full Year Full Year Year-on- Change from Actual results Share Actual results Share year change budget (%) Net sales 226,833 million yen - 246,453 million yen - +8.6％ +1.2% Gross profit 47,670 million yen 21.0% 52,16
Slide 8: A-3. [Consolidated] Monthly sales
A-3. [Consolidated] Monthly sales * Since April 1, 2022, we have changed our holidays according to the calendar, so the number of business days in August and December has increased compared to the previous year. Orders are constantly placed for consumables used in factories. As such, we place focus
Slide 9: A-4. [Consolidated] Monthly sales by sales route
A-4. [Consolidated] * Since April 1, 2022, we have changed our holidays according to the calendar, so the number of business days in August and December has Monthly sales by sales route increased compared to the previous year. ▮ Factory route ▮ e-business route Net sales (million yen) Year-on-year c
Slide 10: B. Sales Performance
B. Sales Performance P11 B-1. [Consolidated] Business performance by sales route P12 ・Factory route P13 ・e-business route P14 ・Home center route P15 ・Business performance of subsidiaries P16 B-2. [Non-consolidated] Analysis of sales P17 B-3. [Non-consolidated] Changes in sales by category of goods P
Slide 11: B-1. [Consolidated] Business performance by sales route
B-1. [Consolidated] Business performance by sales route FYE December 31, 2021 FYE December 31, 2022 Gross Gross profit Net sales profit Net sales margin margin Change Year-on- Year-on- Actual Budget change from Actual Sales route Actual results Share results Actual results Share year Budget from bud
Slide 12: B-1. Factory route
B-1. [Consolidated] Business performance by sales route: Factory route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Gross Net sales profit Net sales Gross profit margin margin Sales route Year-on- Actual Actual YoY Actual results Share Actual results Share year results change resu
Slide 13: B-1. e-business route
B-1. [Consolidated] Business performance by sales route: e-business route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Gross Net sales profit Net sales Gross profit margin Sales route margin Actual Year-on-year Actual Year-on-year Actual results Share Actual results Share results
Slide 14: B-1. Home center route
B-1. [Consolidated] Business performance by sales route: Home center route ▮ Sales by industry FYE December 31, 2021 FYE December 31, 2022 Gross Net sales profit Net sales Gross profit margin margin Actual Year-on-year Actual Year-on-year Actual results Actual results results change results change H
Slide 15: B-1. Business performance of subsidiaries
B-1. [Consolidated] Business performance by sales route: Business performance of subsidiaries ▮ Non-consolidated sales TRUSCO NAKAYAMA CORPORATION TRUSCO NAKAYAMA CORPORATION TRUSCO NAKAYAMA CORPORATION (non-consolidated) (THAILAND) LIMITED (INDONESIA) LIMITED Full year Full year Full year FYE Decem
Slide 16: B-2. [Non-consolidated] Analysis of sales
B-2. [Non-consolidated] Analysis of sales (Unit: million yen) Net sales up 19,501 million yen Rise in demand for equipment due to Increase in other Rise in demand recovery in capital (including FYE December for supplies due expenditure, etc. adjustments) 31, 2022 to recovery in the manufacturing +3,
Slide 17: B-3. Changes in sales by category of goods
B-3. [Non-consolidated] Changes in sales by category of goods (Unit: million yen) +1,000 +901 ★: COVID-19 related products +900 +800 +73.5% +780 checkers Alcohol gloves Anti-slip +700 wrenches Impact +30.1% +626 Sales increase Dust mask +603 Shelves benches Work terminals Connection +600 Chips +529
Slide 18: B-4. Sales by category of goods
B-4. [Non-consolidated] Sales by category of goods While there was increased demand for cooling products such as spot air conditioners (large category 6) due to the effects of the record-breaking heat, as well as increased demand for harness-type systems (large category 6) due to a revision to the l
Slide 19: B-5. Sales of private brand (PB) goods
B-5. [Non-consolidated] Sales of private brand (PB) goods ▮ Change in sales of PB goods (Unit: million yen) Cutting tools 1.5% Production processing goods ( ) Year-on-year change 3.5% Office and housing facility Research equipment Construction management 9.6% goods equipment 9.0% 7.8% Work supply 17
Slide 20: C. Financial and Other Performances
C. Financial and Other Performances P21 C-1. [Consolidated] Selling, general and administrative expenses (SGA) P22 C-1. [Consolidated] Details of selling, general and administrative expenses (SGA) P22 C-2. [Consolidated] Financial statements and financial indicators P23 C-3. [Consolidated] Capital e
Slide 21: C-1. Details of major changes in SGA
C-1. [Consolidated] Details of major changes in selling, general and administrative expenses (SGA) Unit: million yen 2022 Depreciation △262 December Utilities Other Commission expenses changes (△3.8%) 31 Freight and fee +215 +334 packing +317 (+66.7%) expenses (+13.7%) +847 (+12.5%) Salary and bonus
Slide 22: C-1. Details of SGA
C-1. [Consolidated] Details of selling, general and administrative expenses (SGA) (Unit: million yen, %) FYE December 31, 2021 FYE December 31, 2022 Full year budget YoY Change Year-on- FY 2022 full and YoY change (amount) year change year budget Share in net Share in net in performance No. Actual r
Slide 23: C-2. Financial statements and financial indicators
C-2. [Consolidated] Financial statements and financial indicators ▮ Balance Sheet ▮ Statement of cash flows Unit: million yen (As of December 31, 2022) Unit (million yen) Item Amount Item Amount FYE FYE (Assets) (Liabilities) December December Change 31, 2021 31, 2022 Current assets 119,667 Current
Slide 24: C-3. Capital expenditures
C-3. [Consolidated] Capital expenditures ▮ Actual and planned major capital expenditures Actual capital expenditures in FYE December 31, 2022: 4,799 million yen (Unit: million yen) Actual investment Planned investment Details of major capital expenditures in 2022 in FY 2022 in FY 2023 Renewal of pro
Slide 25: C-4. Current ongoing major capital expenditures
C-4. Current ongoing major capital expenditures ▮ Planet Higashi Kanto ▮ Sakai Stock Center ▮ Planet Aichi automated pallet warehouse 1st automated pallet warehouse 2nd automated pallet warehouse Location: Matsudo, Chiba Prefecture Location: Sakai, Osaka Prefecture Location: Kitanagoya, Aichi Prefec
Slide 26: C-5. Quarterly budget and business performance
C-5. [Consolidated] Quarterly budget and business performance (quarterly) ▮ FYE December 31, 2022 (Quarterly) (Unit: million yen, %) 1st Quarter (-1 day) 2nd Quarter (±0 day) 3rd Quarter (+3 days) 4th Quarter (+1 day) Amount Share YoY change Amount Share YoY change Amount Share YoY change Amount Sha
Slide 27: C-6. Quarterly budget and business performance (cumulative)
C-6. [Consolidated] Quarterly budget and business performance (cumulative) ▮ FYE December 31, 2022 [Cumulative] (Unit: million yen, %) 1st Quarter (-1 day) 2nd Quarter (-1 day) 3rd Quarter (+2 days) Full year (+3 days) Year-on-year Amount Share YoY change Amount Share YoY change Amount Share YoY cha
Slide 28: D. Key Indicators
D. Key Indicators P29 D-1. Goods P30-31 D-2. Sales P32-33 D-3. Logistics P34 D-4. Digital P35 D-5. Human resources 28 ©2023 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 29: D-1. Key indicators (goods)
D-1. Key indicators (goods) ▮ TRUSCO Orange Book.Com ▮ Number of items in inventory: 562,026 items Of these, number of Number of items featured: 3,167,188 items goods automatically adopted: 26,109 items Product search site with all the information you need to procure professional tools. Automatic st
Slide 30: D-2. Key indicators (sales)
D-2. Key indicators (sales) ● Change in the number of companies participating ▮ Orange Commerce in Orange Commerce (Trusco’s electronic central Purchasing support system for users, which purchasing system) streamlines the procurement process Sales to companies participating in This is a purchasing s
Slide 31: D-2. MRO Stocker
D-2. Key indicators (sales) Currently under negotiation 395 companies ▮ MRO Stocker (use-first-pay-later tools) Cumulative target number of companies for installation as 1,000 companies Introduced to 775 companies as of the end of December 2023 of the end of December 2022 Monthly sales target per co
Slide 32: D-3. Key indicators (logistics)
D-3. Key indicators (logistics) ▮ Our User Direct Shipment Service Customers Users As it is becoming common to procure items from Internet order companies Production factories online shopping companies, requests for direct Home centers Construction sites Tools and hardware retailers shipments to use
Slide 33: D-3. Key indicators (logistics)
D-3. Key indicators (logistics) ▮ Number of items in inventory and ▮ [Non-consolidated] Changes in inventory inventory shipment rate disposal and inventories 2018 2019 2020 2021 2022 Inventory disposal (million yen) 39 42 50 55 65 Inventories (100 million yen) 370 427 406 416 441 Disposal rate (%) 0
Slide 34: D-4. Key indicators (digital)
D-4. Key indicators (digital) ▮ AI-based estimation system “Swift Estimator" Automate quotations with AI Promotes automation of quotations through special price optimization that automatically calculates fair prices for products on a regular basis based on the performance of orders and quotations. T
Slide 35: D-5. Key indicators (human resources)
D-5. Key indicators (human resources) ▮ Number of Employees [Consolidated] ▮ Average age and annual income As of FYE December 31, 2022 (Unit: persons) Average annual income Female Male Total YoY change Average age (years) (10,000 yen) Executives 1 9 10 ±0 Entire Entire Female Male Career Area Logist
Slide 36: E. Management Plan
E. Management Plan P37ｰ39 E-1. [Consolidated] Management plan [Consolidated] Management plan by sales route [Consolidated] Selling, general and administrative expenses (SGA) for the 61st business year P40 E-2. [Consolidated] Quarterly budget (quarterly) (cumulative) P41 F-1. [Consolidated] Three-yea
Slide 37: E-1. Management plan for the 61st business year
E-1. [Consolidated] Management plan for the 61st business year ◆ Budgeting policy The forecast is used as the entire company’s budget, which is the total of the “annual budget of each branch prepared by the branch manager throughout Japan." The branch managers, who are familiar with their market, fo
Slide 38: E-1. Management plan by sales route
E-1. [Consolidated] Management plan by sales route for the 61st business year ◆ Budgeting policy The forecast is used as the entire company’s budget, which is the total of the “annual budget of each branch prepared by the branch manager throughout Japan." The branch managers, who are familiar with t
Slide 39: E-1. SGA for the 61st business year
E-1. [Consolidated] Selling, general and administrative expenses (SGA) for the 61st business year Forecast for the 61st business year: 39,650 million yen Factors of increase (1) Freight and packing expenses: 8,579 million yen (up 12.4%) 1. Expected increase in number of shipments due to increased sa
Slide 40: E-2. Quarterly budget (quarterly & cumulative)
E-2. [Consolidated] Quarterly budget (quarterly & cumulative) ▮ FYE December 31, 2023 [Quarterly] (Unit: million yen, %) 1st Quarter (±0 day) 2nd Quarter (+1 day) 3rd Quarter (±0 day) 4th Quarter (±0 day) Budget Share YoY change Budget Share YoY change Budget Share YoY change Budget Share YoY change
Slide 41: E-3. Three-year management plan
E-3. [Consolidated] Three-year management plan We have formulated a three-year plan to visualize and better secure the results of the planned investments. In anticipation of the operation of Planet Aichi in 2026, we aim to achieve the goals in this plan by implementing measures that will lead to imp
Slide 42: F. ESG Information
F. ESG Information P43 F-1. TRUSCO’s “Gentleness for the Future" Project P44-47 F-2. Sustainability indicators Sustainability indicators (2) F-3. Other environmental initiatives and measures F-4. Relationship with society & corporate governance 42 ©2023 TRUSCO NAKAYAMA CORPORATION All Rights Reserve
Slide 43: F-1. TRUSCO's Gentleness for the Future Project
F-1. TRUSCO’s “Gentleness for the Future" Project ▮ TRUSCO’s “Gentleness for the Future" Project We have been making various environmental efforts under our environmental philosophy “Gentleness for the Future" since 1998, based on our desire “to be a global environment-friendly company so that our s
Slide 44: F-2. Sustainability indicators
F-2. Sustainability indicators ▮ CO₂ emissions (as of the end of 2022) Scope1 2,327t-co₂／Scope2 8,109t-co₂ ▮ Reduction in CO2 emissions through various services Annual reduction in CO2 emissions: 11,365 t-CO (+1,806 t-CO year-on-year) 2 2 Annual Reduction in CO2 Service reduction in emissions Actual
Slide 45: F-2. Sustainability indicators (2)
F-2. Sustainability indicators (2) ▮ TRUSCO power generation installations ▮ Sales of repair workshop “Naojiro" Workshop (solar and wind power) at 19 locations Annual power generation in 2022 ▮ Role of “Naojiro" Naojiro 2,653,344kWh It is a service that maintains the safety and precision essential f
Slide 46: F-3. Other environmental measures and initiatives
F-3. Other environmental measures and initiatives When it comes to environmental initiatives, it is important to consider “when they started being implemented.” Over 20 years ago, the Company began carrying out environmental initiatives based on the idea of “Gentleness for the Future." The initiativ
Slide 47: F-4. Relationship with society & corporate governance
F-4. Relationship with society & corporate governance ▮ “TRUSCO Shirarezaru Guliver”, TV ▮ Open judge system program provided by a single company (OJS = 360 degree evaluation) This is a program provided by a single company that This is our company's unique evaluation system, in conveys our company's
Slide 48: G. References
G. References P48 G-1. Stock information P49 G-2. Index comparison in the industry P50 G-3. The Company's sales index and industrial production index 48 ©2023 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations
Slide 49: G-1. Stock information
G-1. Stock information ▮ Shareholder information (Unit: persons) FYE June 30, FYE December FYE June 30, FYE December FYE June 30, FYE December 2020 31, 2020 2021 31, 2021 2022 31, 2022 Shareholders total 23,697 16,336 14,903 14,406 16,212 15,466 Holder of share 22,887 15,514 14,030 13,527 15,190 14,
Slide 50: G-2. Index comparison in the industry
G-2. Index comparison in the industry ▮ Performance of trading companies and direct sales companies (listed companies) in the same industry Trading companies in the machine tools industry include the following companies, but they operate differently in the wholesale and retail sectors, and each hand
Slide 51: G-3. The Company's sales index and industrial production index
G-3. The Company's sales index and industrial production index ▮ Changes in the Company's sales index and industrial production index 148.0 140.0 137.7 132.5 128.7 128.1 TRUSCO sales index 120.0 117.1 106.3 Industrial 104.2 production index 103.1 100.0 101.1 100.0 95.2 95.6 100.0 90.9 80.0 2015 2016