Trusco Nakayama Corporation · TSE:9830
Trusco Nakayama — Q2 2023 Earnings Presentation
49 slides from Trusco Nakayama's earnings presentation, Sep 27, 2023
Slide 1: The 61st Business Year Business Performance Data Analysis
The 61st Business Year Business Performance Data Analysis Fiscal Year Ending December 2023 Second Quarter Published by: (Securities code: 9830) * Securities code: 9830 Business Administration Headquarters, Corporate Planning Division, Public Relations & IR Section Trusco Fiorito Bldg. 10th floor, 4-
Slide 2: Table of Contents
Table of Contents 04. Financial and Other Performances …… P. 22 [Consolidated] Selling, general and administrative expenses (SGA) [Consolidated] Details of selling, general and administrative expenses (SGA) [Consolidated] Financial statements and financial indicators 01. Company Profile ……………………… P.
Slide 3: Company Profile
01 Company overview Business flow Company Profile 3 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.
Slide 4: Company overview
Company overview Corporate message “GAMBARE!! Company name TRUSCO Nakayama Corporation Founding May 15, 1959 JAPANESE MONODZUKURI”. Tetsuya Nakayama, President Chairman, Nakayama Visually Impaired Welfare Foundation Representative Vice president, Japan Federation of Machine Tool Distributors Associa
Slide 5: Business flow
Business flow Manufacturers Distributors Users 3,423 companies Wholesale Retail 5,596 companies ∞ (infinite) Factory route Connecting an outlet to Manufacturers, We deliver our products to factories, construction Domestic suppliers TRUSCO is an easy way to construction sites, and other companies, et
Slide 6: Company-wide Business Performance
02 Company-wide Accounting highlights [Consolidated] Business performance [Consolidated] Monthly sales [Consolidated] Monthly sales by sales route Business Performance 6 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.
Slide 7: Accounting highlights
Accounting highlights ▮ Performance in the second quarter of the 61st business year ･ Increased through measures that contribute to improved customer convenience and reduced 131,390 million yen environmental impact, including “Niawase + Yuchoku” (assortment + direct delivery to users), which Net sal
Slide 8: [Consolidated] Business performance
[Consolidated] Business performance Actual results for FYE December 31, 2022 Actual results for FYE December 31, 2023 Second Quarter Change Actual results Share YoY change Actual results Share YoY change from Points budget (%) ・ Net sales Net sales 246,453 million yen - +8.6% 131,390 million yen - +
Slide 9: [Consolidated] Management plan
[Consolidated] Management plan * This is the revised budget announced on August 10, 2023. FYE December 31, 2023 Second half budget for FYE December 31, 2023 Full Year Budget* Budget Share YoY change Budget YoY change Points Net sales 134,633 million yen - +7.0% 266,080 million yen +8.0% ・ Net sales
Slide 10: [Consolidated] Monthly sales
[Consolidated] Monthly sales 26,000 25,485 23,099 23,295 23,287 24,000 22,311 23,153 21,597 21,566 21,815 22,000 20,741 20,772 ▮ Actual results (January-June) 20,000 18,899 ▮ Budget (July-December) * Revised budget 18,000 +11.5 +11.4 +12.2 16,000 +7.7 +6.6 +8.4 +7.0 +9.2 +7.8 +4.8 14,000 +5.3 +4.3 1
Slide 11: [Consolidated] Monthly sales by sales route
[Consolidated] Monthly sales by sales route ▮ Actual results (January-June) ▮ Budget (July-December) * Revised budget e-business route 5,462 5,050 5,080 4,814 4,789 4,757 4,940 4,871 4,723 4,600 4,553 * Since April 1, 2022, we have changed our holidays according to the calendar, so the number of bus
Slide 12: Sales Performance
[Consolidated] Business performance by sales route 03 ・Factory route ・e-business route ・Home center route ・Business performance of subsidiaries [Non-consolidated] Changes in sales by category of goods Sales [Non-consolidated] Sales by category of goods Performance [Non-consolidated] Sales of private
Slide 13: [Consolidated] Business performance by sales route
[Consolidated] Business performance by sales route Factory route: Share 68.2% (YoY change +6.4%) e-business route: Share 22.0% (YoY change +14.5%) Home center route: Share 8.9% (YoY change +14.7%) Overseas route: Share 0.9% (YoY change +17.4%) Actual results for FYE December 31, 2022 Actual results
Slide 14: [Consolidated] Management plan by sales route
[Consolidated] Management plan by sales route * This is the revised budget announced on August 10, 2023. Second half budget for FYE December 31, 2023 FY 2023 Full Year Budget* Net sales Net sales Sales route Budget Share YoY change Budget YoY change Factory route 92,418 million yen 68.6% +7.0% 182,0
Slide 15: Business performance by sales route: Factory route
[Consolidated] Business performance by sales route: (Factory route) This route delivers our products to factories, construction sites, and other manufacturing sites through machine tool dealers, etc. While business conditions in the manufacturing sector have not returned to their pre-pandemic levels
Slide 16: Business performance by sales route: e-business route
[Consolidated] Business performance by sales route: (e-business route) This route delivers our products to manufacturing sites, such as factories and construction sites, and consumers through Internet order companies. Product data and system linkage, as well as logistics processing tailored to custo
Slide 17: Business performance by sales route: Home center route
[Consolidated] Business performance by sales route: (Home center route) This route delivers our products to consumers through home centers and pro-tool shops. As companies are strengthening their e-commerce businesses, we aggressively proposed services utilizing our inventory of approximately 570,00
Slide 18: Business performance of subsidiaries
[Consolidated] Business performance by sales route: (Business performance of subsidiaries) We strengthened our sales activities by reviewing inventory items and developing local customers and suppliers. TRUSCO NAKAYAMA CORPORATION (non-consolidated) TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED TRU
Slide 19: [Non-consolidated] Changes in sales by category of goods
[Non-consolidated] Changes in sales by category of goods Sales of consumables such as safety shoes, adhesives, and cutting tools increased On the other hand, there was a lull in demand for fall arrest equipment following last year's revision of the Industrial Safety and +600 Health Act and novel-cor
Slide 20: [Non-consolidated] Sales by category of goods
[Non-consolidated] Sales by category of goods (Unit: million yen, %) Category of goods TRUSCO's Gross profit Category of goods TRUSCO's Gross profit Medium category Share YoY change Medium category Share YoY change (large category) sales margin (large category) sales margin 1. Cutting tools Cutting
Slide 21: [Non-consolidated] Sales of private brand (PB) goods
▮ Private brand product share in net sales [Non-consolidated] Sales of private brand (PB) goods as of the end of June 2023 Production Cutting tools 1.5% processing goods Office 3.6% and housing We will continue our efforts to revamp our core products so that our facility Research equipment private b
Slide 22: Financial and Other Performances
[Consolidated] Selling, general and administrative expenses (SGA) 04 Financial and [Consolidated] Details of selling, general and administrative expenses (SGA) [Consolidated] Financial statements and financial indicators Other [Consolidated] Capital expenditures Performances Major capital expenditur
Slide 23: [Consolidated] Selling, general and administrative expenses (SGA)
[Consolidated] Selling, general and administrative expenses (SGA) Freight and packing costs increased due to an increase in shipment volume, while selling, general and administrative expenses decreased by 2.1% year on year due to decreases in depreciation and commission fees. Freight and packing exp
Slide 24: Details of selling, general and administrative expenses (SGA)
[Consolidated] Details of selling, general and administrative expenses (SGA) (Unit: million yen) Fiscal Year Ending December 2023 FYE December 31, 2022 Full year budget and Second Quarter FY 2023 Full Year YoY change in Budget Share in net Change from the same performance No. Actual results Share in
Slide 25: Financial statements and financial indicators
[Consolidated] Financial statements and financial indicators Balance Sheet Statement of cash flows (Unit: million yen) As of June 30, 2023 (Unit: Million yen) 2Q of FY 2022 2Q of FY 2023 Change Item Amount Item Amount (Assets) (Liabilities) Cash flows from operating activities 6,508 6,296 -212 Curre
Slide 26: [Consolidated] Capital expenditures
[Consolidated] Capital expenditures Major capital expenditures and plans (Unit: million yen) Investment results for Planned investment in Details of major capital expenditures in 2023 first half FY 2023 second half FY 2023 Advance order for installation of distribution equipment and facilities at Pl
Slide 27: Major capital expenditures for the current fiscal year
Major capital expenditures for the current fiscal year Planet Higashi Kanto automated Sakai Stock Center Planet Aichi pallet warehouse 1st automated pallet warehouse Opening in 2026! 2nd automated pallet warehouse Location: Matsudo, Chiba Prefecture Location: Sakai, Osaka Prefecture Location: Kitana
Slide 28: Various key indicators
05 Digital Merchandise Sales Logistics Various key indicators Human resources 28 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.
Slide 29: Key indicators (digital)
Key indicators (digital) Fiscal Year Ending Plan for FYE December 31, Since launching our Internet ordering system Key indicators FYE December 31, 2022 December 2023 2023 "Web Trusco" in 2002, we have been Second Quarter automating ordering. Additionally, starting Rate of automated 22.6 26.7 28.0 wi
Slide 30: Key indicators (goods)
Key indicators (goods) FYE December 31, 2023 FYE December 31, 2023 [Non-consolidated] Change in sales Key indicators FYE December 31, 2022 Second Quarter Plan of newly listed goods on TRUSCO Orange Book.Com in company-wide No. of items featured on sales TRUSCO Orange Book.Com 316 348 420 (10,000 ite
Slide 31: Key indicators (sales)
Key indicators (sales) Fiscal Year Ending Amount irrecoverable due to Plan for FYE bankruptcy Key indicators FYE December 31, 2022 December 2023 December 31, 2023 Second Quarter Amount irrecoverable (10,000 yen) Number of corporate clients 5,575 5,596 5,630 2019 0 Number of client accounts 31,614 32
Slide 32: Key indicators (logistics)
Key indicators (logistics) FYE December 31, 2023 FYE December 31, 2023 Key indicators FYE December 31, 2022 Second Quarter Plan No. of direct shipments to users (10,000s) 355 218 440 Logistics No. of direct shipments to users (10,000s) 437 267 540 Labor cost per incoming/outgoing shipment (yen) 113
Slide 33: Key indicators (logistics)
Key indicators (logistics) Fiscal Year Ending Plan for FYE Key indicators FYE December 31, 2022 December 2023 December 31, 2023 Second Quarter Changes in number of inventory items and Inventory shipment inventory shipment rate (instant delivery rate) rate (%) 91.7 92.0 92.0 Number of chartered vehic
Slide 34: Key indicators (human resources)
Key indicators (human resources) Number of Employees [Consolidated] As of FYE June 30, 2023 (Unit: persons) Average age and annual income Female Male Total YoY change Average age (years) Average annual income (10,000 yen) * The total average annual income includes Executives 1 11 12 +2 executive off
Slide 35: Management Plan
[Consolidated] About the 61st business year full-year 06 budget [Consolidated] Quarterly business performance and budget (quarterly) [Consolidated] Quarterly business performance and Management budget (cumulative) Plan Vision - Capacity targets - 35 Copyright 2023 TRUSCO NAKAYAMA Corporation. All ri
Slide 36: About the 61st business year full-year budget
[Consolidated] About the 61st business year full-year budget ▮ Plan for FYE December 31, 2023 Initial budget for FYE Plan for FYE December Year-on-year Share Share December 31, 2023 31, 2023 change Net sales 265,090 million yen ｰ 266,080 million yen ｰ +8.0% Gross profit 55,350 million yen 20.9% 56,9
Slide 37: Quarterly business performance and budget (quarterly)
[Consolidated] Quarterly business performance and budget (quarterly) FYE December 31, 2023 Second Quarter [Quarterly] (Unit: million yen) 1st Quarter (+2 days) 2nd Quarter (+1 day) 3rd Quarter (±0 day) 4th Quarter (±0 day) Budget Share YoY change Budget Share YoY change Budget Share YoY change Budge
Slide 38: Quarterly business performance and budget (cumulative)
[Consolidated] Quarterly business performance and budget (cumulative) FYE December 31, 2023 Second Quarter [Cumulative] (Unit: million yen) 1st Quarter (+2 days) 2nd Quarter (+3 days) 3rd Quarter (+3 days) Full year (+3 days) Year-on-year Budget Share YoY change Budget Share YoY change Budget Share
Slide 39: Vision - Capacity targets -
“Vision” - Capacity targets - We want to be a company that can respond to 01 We want to be a company that can hold 1 million items in inventory by 2030. 06 quotations instantly. (Automated estimate response rate as of December 31, 2022: 22.6%) We want to be a company that can achieve the 07 "fastest
Slide 40: ESG Information
07 TRUSCO's "Gentleness for the Future" Project Sustainability indicators Other environmental measures and initiatives Relationship with society & corporate ESG Information governance 40 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.
Slide 41: TRUSCO's "Gentleness for the Future" Project
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 small ef
Slide 42: Sustainability indicators
Sustainability indicators CO₂ emissions (as of the end of 2022) CO₂ emissions from fuel use (Scope 1) 2,327t-co₂ / CO₂ emissions from electricity use (Scope 2) 8,109t-co₂ CO₂ emissions in the supply chain (Scope 3 * ) 1,724,759t-co₂ * Only Scope 3 results are for 2021. ▮ CO₂ emission reduction throu
Slide 43: Sustainability indicators
Sustainability indicators Workshop Role of repair workshop "Naojiro" Naojiro TRUSCO power generation installations (solar and wind power) at 19 locations It is a service that maintains the safety and precision essential for pro tools, and aims to reduce the environmental impact and contribute to cos
Slide 44: Other environmental measures and initiatives
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 initiatives co
Slide 45: Relationship with society & corporate governance
Relationship with society & corporate governance “TRUSCO Unknown Gulliver”, TV program provided by a Open judge system (OJS = 360 degree evaluation) single company This is our company's unique evaluation system, in which employees are evaluated not only by their superiors, but also by colleagues and
Slide 46: Reference Information
08 Stock information Index comparison in the industry The Company's sales index and industrial Reference production index Information 46 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.
Slide 47: Stock information
Stock information Shareholder Information (Unit: persons) 2020 2021 2021 2022 2022 2023 End of December End of June End of December End of June End of December End of June Shareholders total 16,336 14,903 14,406 16,212 15,466 15,111 Holder of share 15,514 14,030 13,527 15,190 14,436 13,798 Holder of
Slide 48: Index comparison in the industry
Index comparison in the industry Performance of trading companies and direct sales companies (listed companies) in the same industry [Wholesale] Market Closing month Year-on-year capitalization Trading companies in the machine tools industry include Net sales (million yen) (100 million yen) change t
Slide 49: The Company's sales index and industrial production index
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 TRUSCO sales index 128.7 128.1 120.0 117.1 106.3 104.2 103.1 100.0 101.1 100.0 95.2 95.6 100.0 90.9 Industrial production index 80.0 2015 2016 2017 2