Japan Elevator Service Holdings Co., Ltd. · TSE:6544
Japan Elevator Service — FY2025 Earnings Presentation
45 slides from Japan Elevator Service's earnings presentation, May 26, 2025
Slide 1: Presentation Material for the Fiscal Year Ended March 2025
< Caution > This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Presentation Material for the Fiscal Year Ended March 2025 M
Slide 2: Management Review of the FY Mar 2025 Results
2 Management Review of the FY Mar 2025 Results Copyright © japan elevator service holdings all rights reserved
Slide 3: Results Overview: Record Net Sales and Net Profit
Results Overview 3 Record Net Sales and Net Profit • Good Business environment • Significantly exceeded • Exceeded forecast of ¥5.1 B • Strong progress in maintenance forecast of ¥8.0B due to increase in sales and & repair and modernization • Up 26.4% YoY to break record profit despite extraordinary
Slide 4: Shareholder Return: Dividend Forecasts
Shareholder Return: Dividend Forecasts 4 Our shareholder return policy is based on a dividend payout ratio of at least 40% and aims for stable increases in EPS and DPS Dividend for the FY2025 March has been revised upward to 31 yen from 30 yen announced in November 2024 against the backdrop of s
Slide 5: Domestic Maintenance Contracts
Domestic Maintenance Contracts 5 Elevators under maintenance contracts at the end of March 2025 was 113,520 units Net organic increase set another record of 13,000note1 that compares 10,000note2 in the previous year 113,520 Our estimated market share advanced more than one percentage point to
Slide 6: Expanding Network and Workforce to Increase Market Share
Expanding Network and Workforce to Increase Market Share 6 The number of offices increased from 138 at March 2024 to 149 as of May 2025. New offices were established in Saga, Yamaguchi and Nagasaki Newly acquired Showa Yusoki Tohoku will be renamed as JES Tohoku and merged with Tohoku branch of
Slide 7: Initiatives for FY Mar 2026
7 Initiatives for FY Mar 2026 Copyright © japan elevator service holdings all rights reserved
Slide 8: FY March 2026 Initiatives: Maintenance & Repair
FY March 2026 Initiatives: Maintenance & Repair 8 Improve Productivity for Increased Net Adds Early Mobilization of Sales Staff (New Graduates and Mid-career) • Revitalization of sales activities and improvement of productivity by utilizing sales support and customer management systems • Enhance
Slide 9: FY March 2026 Initiatives: Modernization
FY March 2026 Initiatives: Modernization 9 Continue Growth in Volume, Price and Profitability • With JIK in operation, shipments should exceed 200 units per month • Actively propose escalator modernization, which is expanding the number of models compatible with it, and aim to win projects • Logis
Slide 10: Good Visibility on VISION 2027 Targets
Good Visibility on VISON 2027 Targets 10 The medium-term management plan is a reference for management strategy, and is positioned as an indicator that differs from earnings forecasts based on the business environment and management initiatives for each fiscal year Yet, considering the steady ac
Slide 11: FY2025 Results Overview and FY 2026 Earnings Forecast
11 FY2025 Results Overview and FY 2026 Earnings Forecast Copyright © japan elevator service holdings all rights reserved
Slide 12: Summary of the Results for the FY Mar 2025
Summary of the Results for the FY Mar 2025 12 Performance exceeded the initial forecast and achieved the highest profit in the past due to the demonstration of our abilities in all fields Fiscal year ended March 31, 2024 was marked by a significant increase in sales and profit due to changes in th
Slide 13: Factors for Change in Operating Profit
Factors for Change in Operating Profit 13 (Millions of yen) Increase Decrease 14,000 -1,928 12,000 -1,365 7,158 -846 10,000 -159 -1,057 8,000 -194 6,000 8,624 4,000 6,821 2,000 0 March 2024 Net sales Material cost Labor cost Outsourcing Depreciation Others March 2025 cost Copyright © japan elevator
Slide 14: Forecasts for the Fiscal Year Ending March 2026 (Summary)
Forecasts for the Fiscal Year Ending March 2026 (Summary) 14 Record-high net sales and profits are expected due to the steady accumulation of maintenance contracts In the maintenance & repair, net growth in the number of maintenance contracts is expected to continue, and in the modernization, grow
Slide 15: Capital Expenditures and Depreciation Forecasts
Capital Expenditures and Depreciation Forecasts 15 (Billions of yen) FY2024 (Actual) FY2025 (Forecast) Items C a p i t a l Investments related to PRIME, a Expenditure 1.70 1.50 remote inspection service, etc. Depreciation 1.56 1.50 Capital Expenditures and Depreciation (Billions of yen) 4.00 3.65 3.
Slide 16: Medium-term Management Plan VISION 2027
16 Medium-term Management Plan “VISION 2027” Copyright © japan elevator service holdings all rights reserved
Slide 17: Medium-term Management Plan: VISION2027
Medium-term Management Plan: VISION2027 17 Basic Strategy Key Indicators Raise corporate value through growth, • As a company qualified for the TSE Prime Market, we aim to achieve sustainable growth and increase corporate value, prosper together with all stakeholders adapting to changes in the s
Slide 18: VISION2027: Elevator Maintenance Market in Japan
VISION2027: Elevator Maintenance Market in Japan 18 Elevator maintenance market in Japan: There are an estimated 1.1 million elevators Year ended March 2025 VISION2027 installed & maintained 1-2% annual growth to 1.2 million in Mar 2027 Five OEMs* and affiliated companies handle Independent, I
Slide 19: VISION2027: Growing Demand for Modernization
VISION2027: Growing Demand for Modernization 19 Number of New Elevators Installed in Japan (units) 50,000 45,000 New elevator construction was high 40,000 These elevators are over 20 years old in operation 35,000 Parts supply by OEMs is also being phased out 30,000 25,000 20,000 15,000 10,000
Slide 20: VISION2027: Profitability Scenario
VISION2027: Profitability Scenario 20 Reconciliation of 60 billion yen in Net Sales and Operating Margin of 20% with Growing Maintenance Contracts 1. Achieve net sales of 60 billion yen by expanding the market and increasing share in Japan As of March 31, 2025, our domestic maintenance market shar
Slide 21: VISION2027: Plan Progress - Investment
VISION2027: Plan Progress ～ Investment 21 Domestic M&A and Capital Expenditures have Peaked, Positive FCF Trend Expected Investment trends Capital expenditures peaked in FY2023, and after the completion of the JIK in M&A for the development of the base network for FY2024, CAPEX shall be limited to
Slide 22: Cash Flow Management
Cash Flow Management 22 Sharing free cash flow with stakeholders for sustainable growth Capital investment peaked in FY 2023 and then begin to decline Free cash flow should be on an upward trend due to business expansion as number of maintenance contracts increases and improve profitability EBIT
Slide 23: About Us
23 About Us Copyright © japan elevator service holdings all rights reserved
Slide 24: Corporate Data
Corporate Data 24 Company Name Japan Elevator Service Holdings Co., Ltd. Established October 3, 1994 Listed Market TSE Prime Market (6544) since April 4, 2022 Tokyo Tatemono Nihonbashi Bldg. 5F, 1-3-13 Nihonbashi, Headquarters Chuo-ku, Tokyo 103-0027 CEO Katsushi Ishida (Born on March 25, 1966) Numb
Slide 25: Corporate Philosophy: Safety Above Anything Else
Corporate Philosophy 25 Safety Above Anything Else. Safety is our lifeblood above anything else We are committed to monitoring 24 hours a day, 365 days a year No Cutting Corners. We do not cut corners because people don’t see, and we work for safe operation Building on Trust. Building relationships
Slide 26: The quality of OEM with the reasonable price of independents
Competitiveness is underpinned by an unrivalled accumulation of 26 tangible and intangible assets The only company that combines the ‘quality’ of OEM with the ‘reasonable price’ of independents New Hire from Graduates (person) R&D as % of Qualified 154 153 net sales: 111 130 Inspectors: 1.5% (Averag
Slide 27: Organic & Inorganic Expansion
Organic & Inorganic Expansion 27 Jan 2017 Mar 2025 (At the time of listing) (now) [Organic Expansion] 38,000 elevators 113,520 elevators served served May 2017 Japan Elevator Service Kansai 64 offices Oct 2017 JES Innovation Center (JIC) 149 offices *as of May 1 934 employees Apr 2019 Oct 2020 Japan
Slide 28: Our Business: (1) Maintenance & Repair
Our Business: (1) Maintenance & Repair 28 Maintenance 1 Legal inspection stipulated in the Building Standards Act Services 2 Periodic inspection (cleaning, oiling, adjustment, replacement of consumables, etc.) 3 Monitoring services (including examination, remote monitoring, and remote inspection for
Slide 29: Our Business: (2) Modernization
Our Business: (2) Modernization 29 Modernization The legal depreciable life of a lift is 17 years. The Life Cycle Cost Assessment Index Services planned service life proposed by the Building Maintenance and Preservation Association is 25 years For some models, the OEM may stop supplying parts, s
Slide 30: Our Business: (2) Modernization - Quick Renewal
Our Business: (2) Modernization～Quick Renewal 30 Quick Renewal enables flexible modernization reflecting customer needs Major components are One time modernization replaced in stages, significantly reducing construction time and 1 costs 2 Replace control panel only Phase 1 (Compatible with 16 models
Slide 31: Our Business: (2) Modernization - Escalators
Our Business: (2) Modernization～ Escalators 31 Escalators (ES) account for 5% of maintenance contracts and are expected to increase along with the increase in maintenance contracts Established organization to train technical staff specialized in escalators to improve service quality Commence r
Slide 32: LiftSPOT
LiftSPOT 32 LiftSPOT is a service that combines digital signage with security cameras, helping prevent crime in elevators while providing a display for advertising and other content (patent acquired for security camera with ad display function) Audio-enabled digital signage media for elevators,
Slide 33: Promotion of Refurbished Parts
Promotion of Refurbished Parts 33 Refurbished parts are products collected during parts replacement, then repaired and refurbished Components that pass our QA testing are certified as JES Authorized Refurbished Parts JES Group is focusing on obtaining recycled parts and promoting growth in the refur
Slide 34: JES Innovation Centers
JES Innovation Centers 34 Capable of rapid troubleshooting nationwide with 8 parts centers, including JIC and JIK Capable of responding to modernization demand Established R&D center with test tower, the only one of its kind among independent companies, redundant control centers and extensive
Slide 35: Making Entry in Southeast Asia Market
Making Entry in Southeast Asia Market 35 Japan Elevator Service Hong Kong Company Japan Elevator Service India Private Limited Limited Established in Feb 2016 In Jul 2014 the Company established vehicle for research and investment in SE Asia Acquired 51% interest in Unieco of Vietnam in Nov 2021 Acq
Slide 36: Overseas Business Update
Overseas Business Update 36 Overseas Expansion with a Focus on ASEAN Through Collaboration with HD Steady sales and profit from Indonesia, Vietnam, and Malaysia (facility management business) In preparation for full-scale overseas business expansion, the Overseas Business Strategy Office was mig
Slide 37: References
37 References Copyright © japan elevator service holdings all rights reserved
Slide 38: Growth in Net Sales
Growth in Net Sales 38 Net sales of 49.3B 17% CAGR for the FY Mar 2025 55.0 3.1% 49.3 35.1% 42.2 34.9 61.8% 29.7 24.5 Maintenance & repair Modernization Other 21.3 17.9 15.3 13.5 10.4 11.8 Sep Sep Sep Sep Sep Sep Sep Sep Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2006 2007 2008 2009 2010 20
Slide 39: Ensuring Sustainable Business
Ensuring Sustainable Business 39 Strengthening efforts to maintain Promotion of Good Working E S the environment Environment Aggregate greenhouse gas emissions throughout the Expansion of allowances due to revision of the supply chain personnel system (e.g. housing allowance) Examine long-term
Slide 40: Environment Data
Environment Data 40 GHG(CO2)Emissions ets. Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Waste Discharge Amount Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 SCOPE1 (t-CO2) 2,199 2,592 3,208 3,512 4,006 Non-recyclable waste discharge (t) 1,341 Not calculated Not calculated Not calculated Mar 2023 1,87
Slide 41: Social Data
Social Data 41 Nomber of Employees Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Training Cost Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Male（person） 1,053 1,182 1,351 1,498 1,598 Training cost（JPY） 7,255,335 5,497,654 5,880,866 7,271,306 15,367,989 Female（person） 181 216 267 268 270 Per person（J
Slide 42: Governance Data
Governance Data 42 Composition of the Board of Directors Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Number of Directors 12 9 8 8 5 Female 3 2 2 2 2 External 2 3 3 3 3 Independent 2 3 3 3 3 Audit & Supervisory Board members 3 3 3 3 3 Female 0 0 0 0 1 External 2 2 2 2 2 Independent 2 2 2 2 2 Percent
Slide 43: Financial Highlights (1/2)
Financial Highlights (1/2) 43 Net sales Operating profit (Millions of yen) (Millions of yen) 49,375 8,624 42,216 6,821 34,907 29,751 5,010 24,521 4,113 21,339 3,612 17,900 15,326 2,717 13,544 2,034 1,351 611 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2017 2018 2019 2020
Slide 44: Financial Highlights (2/2)
Financial Highlights (2/2) 44 Net assets / Total assets (100 million yen) Net assets Total assets 354 325 290 253 204 203 167 142 136 106 114 105 117 78 39 51 20 28 Mar Mar Mar Mar Mar Mar Mar Mar Mar 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net assets per share Earnings per share (Yen) 224.13 (
Slide 45: Disclaimer and Caution Concerning Forward-looking Statements
Disclaimer and Caution Concerning Forward-looking Statements 45 Disclaimer Japan Elevator Service Holdings (the “Company”) has prepared these materials for your reference, so that you may understand the current status of the Company. While these materials have been prepared based on generally-kn
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