Amita Holdings Co., Ltd. · TSE:2195
Amita — FY2024 Earnings Presentation
64 slides from Amita's earnings presentation, Mar 13, 2025
Slide 1: Earnings Briefing for the Fiscal Year Ended December 31, 2024
Earnings Briefing for the Fiscal Year Ended December 31, 2024 (FY 2024) March 13, 2025 AMITA HOLDINGS, CO., LTD. (Stock code: 2195 on the Growth Market of the Tokyo Stock Exchange)
Slide 2: Agenda
01 Review of the First Year of the Groundwork Phase KUMANO Eisuke, Chairman and CVO Consolidated Financial Results for FY 2024 SUETSUGU Takahide, President and CIOO 02 Business Achievements and Updates in FY 2024 SUETSUGU Takahide, President and CIOO 03 04 Medium- and Long-term Management Plan Updat
Slide 3: Review of the First Year of the Groundwork Phase
01 Review of the First Year of the Groundwork Phase KUMANO Eisuke Chairman and Chief Visionary Officer (CVO) AMITA HOLDINGS CO., LTD. © 2025 AMITA HOLDINGS CO., LTD. All Rights Reserved. 3
Slide 4: Turbulent Start to 2025
Turbulent Start to 2050 January 20, 2025 President Trump inaugurated in the United States. Signed 70 executive orders in the first 30 days in office. Imposing additional tariffs on certain imports and cuts corporate tax rates Image modified from the original “Trump in ‘no rush’ to speak with China’s
Slide 5: AMITA sees opportunities in a time of turbulence and chaos
AMITA sees opportunities in a time of turbulence and chaos has been turning the slightest signs of social and economic changes into business opportunities before anyone else can 1977 AMITA founded as a wholesaler of non-iron metal Second oil crisis, oil-push inflation Dealing with pollution expanded
Slide 6: AMITA's Established Management Discipline
AMITA’s Established Management Discipline Identified market needs Battle of attrition in the red ocean market Intense price competition AMITA identifies unmet social needs and provides the right commercial solutions to them AMITA’s approach Fulfill AMITA’s Mission before anyone else does. Unmet soci
Slide 7: Profound changes swept the world in 2020
Profound changes swept the world in 2020 Climate change Depleting natural resources Changes in world population COVID-19 pandemic Procurement risks became widespread and people sought a greater sense of globally security that mitigates anxiety Consistent procurement of natural resources People felt
Slide 8: AMITA's Social Systems Design Business
AMITA’s Social Systems Design Business Addressing the epidemic of loneliness and isolation, as well as four major community issues, in a fluid society Population drain Aging and shrinking population Circularity Declining employment opportunities Rising costs of social security programs Circularity O
Slide 9: How Our Social Systems Design Business Works
How Our Social Systems Design Business Works Use AI solutions to analyze relationships between circularity and inclusion to create greater value Address four major community issues Issues Solutions Population Increase nonresident out-of-towners socially Circularity Inclusion drain connected to a com
Slide 10: Groundwork Phase in FY 2024 and 2025
Groundwork Phase in FY 2024 and 2025 February 2024 AMITA Group to Designing a establish the Sustainable Future We updated the road map toward establishing Social Systems Design the Social Systems Design Business in FY 2030. Business AMITA Group to celebrate Background its 50th The pace of our projec
Slide 11: Invest in Relationship Building
Review of the First Year of the Groundwork Phase Invest in Relationship Building Seek partnerships to complement our own development of products, technologies, and sales networks Objective so that we can accelerate the pace of new business development and acquire sound operating capital 2024 Jointly
Slide 12: Organizational Strategy
Review of the First Year of the Groundwork Phase Key Driver 1 Organizational Strategy Transform our internal organization from a functionally hierarchical structure into Objective a more flexible self-organizing structure Background Advances in generative AI and pervasive remote working Developing e
Slide 13: Product Strategy
Review of the First Year of the Groundwork Phase Key Driver 2 Product Strategy Objective Offer more extensive assistance to businesses and municipalities in achieving greater corporate and community sustainability, in anticipation of a rebound in market demand in Japan 01. 02. MEGURU STYLE Assisting
Slide 14: Sales & Marketing Strategy
Review of the First Year of the Groundwork Phase Key Driver 3 Sales & Marketing Strategy Take an integrated sales and marketing approach to bringing unmet social needs to the surface and Objective creating a market for fulfilling the needs Inbound Marketing Coordinate visioning, corporate communicat
Slide 15: Creating market demand in Japan in this unpredictable time
The AMITA Group undertakes the Social Systems Design Business, which leverages the Group’s enhanced relationship capital and three key drivers (organizational, product, and sales & marketing strategies), to create market demand in Japan in this unpredictable time. © 2025 AMITA HOLDINGS CO., LTD. All
Slide 16: Consolidated Financial Results for FY 2024
02 Consolidated Financial Results for FY 2024 SUETSUGU Takahide President and Chief Integrated Operations Officer (CIOO) AMITA HOLDINGS CO., LTD. © 2025 AMITA HOLDINGS CO., LTD. All Rights Reserved. 16
Slide 17: Financial Highlights
⚫ The Group’s net sales for FY 2024 was from the initial guidance, buoyed by the robust revenue from providing Financial Highlights support for corporate and community sustainability. Operating profit was shy of the guidance, due to an increase in SG&A expenses for talent and business development. ⚫
Slide 18: Financial Results for FY 2024: Year-end Dividend
Financial Results for FY 2024: Year-end Dividend We have set the year-end dividend rate at 4.00 yen for FY 2024, unchanged from the initial guidance. FY 2023 FY 2024 Record date As of December 31, 2023 As of December 31, 2024 Dividend rate 4.00 yen (Dividend payout ratio: 22.8%) 4.00 yen (Dividend p
Slide 19: Abbreviated Consolidated Balance Sheet
Abbreviated Consolidated Balance Sheet (In millions of yen; amounts rounded down to the nearest million yen) As of December 31, As of December 31, YoY change 2023 2024 Current assets 3,838 3,853 +14 Assets Non-current assets 2,337 2,741 +404 Total assets 6,175 6,594 +419 Current liabilities 1,635 1,
Slide 20: Abbreviated Consolidated Statement of Cash Flows
Abbreviated Consolidated Statement of Cash Flows (In millions of yen; amounts rounded down to the nearest million yen) FY 2023 results FY 2024 results YoY change Net cash provided by operating activities 725 474 -250 Net cash provided by (used in) investing (514) (441) -73 activities Net cash provid
Slide 21: Key Financial Metrics
Invest in relationship-building efforts to create a Key Financial Metrics consistent profit stream Note: Effective at the beginning of FY 2022, the Company adopted Note: Effective at the beginning of FY 2022, the Company adopted Operating Profit Margin (%) the Accounting Standard for Revenue Recogni
Slide 22: Meeting TSE's Continued Listing Criteria
Financial Topic Meeting TSE’s Continued Listing Criteria AMITA HOLDINGS CO., LTD., met TSE’s continued listing criteria for the Growth Market, as of December 31, 2024. After submitting a plan of action to meet the Tokyo Stock Exchange’s Continued Listing Criteria on December 22, 2021, the Company ha
Slide 23: Business Achievements and Updates in FY 2024
03 Business Achievements and Updates in FY 2024 SUETSUGU Takahide President and CIOO AMITA HOLDINGS CO., LTD. © 2025 AMITA HOLDINGS CO., LTD. All Rights Reserved. 23
Slide 24: Scope of AMITA Group's Business Segments
Scope of AMITA Group’s Business Segments (Wholly owned subsidiary of AMITA HOLDINGS) ⚫ AMITA CIRCULAR DESIGN SDN. BHD. ⚫ AMITA CORPORATION (Wholly owned subsidiary of AMITA HOLDINGS) Assist businesses and municipalities outside Japan in Assist businesses and municipalities in Japan in achieving grea
Slide 25: Scope of AMITA Group's Service Lines
Scope of AMITA Group’s Service Lines For businesses For municipalities For consumers Businesses Municipalities Consumers Businesses MEGURU STYLE Businesses Municipalities Consumers Comprehensively resolve four major community issues: population Assist clients in achieving greater corporate drain; ag
Slide 26: Our Business Achievements in FY 2024
Our Business Achievements in FY 2024 Focused on establishing the Cyano Project service as AMITA Group’s primary revenue driver Consulting and solution services ⚫Assistance in transition Leveraged our extensive know-how and proven track record in circular design approaches and strategy attracted more
Slide 27: Assisting in corporate sustainability
Assisting in corporate sustainability Japanese businesses facing a formidable challenge Their top priority is to enhance operational agility and achieve revenue growth through business transformation amid growing global risks, rising interest rates, and soaring materials prices. Supplementary inform
Slide 28: Assistance in transition strategy: Progress Report
Progress Report Consulting and Assistance in transition strategy solution services Review of FY 2024 Growing needs for Cyano Project service among businesses drove the number of inquiries from prospects up by 53% YoY and won us more firm project orders than in the previous year. Background Clients’
Slide 29: Assistance in transition strategy: Key initiatives and project example
Assistance in transition strategy Key initiatives undertaken in FY 2024 Project example ⚫ Joined a cross-industry alliance as part of relationship-building Client: Nichirei Foods Inc. efforts. Project to develop a circular model for frozen food Offered greater value in our consulting and solution pa
Slide 30: Sustainable BPO service: Convert waste into circular materials
Sustainable BPO service Operation services - Convert waste into circular materials and supply them for industrial use Review of FY 2024 Achieved greater net sales, operating profit, and operating profit margin than in FY 2023. Growing corporate needs for sustainable procurement amid an increasingly
Slide 31: Sustainable BPO service: Supply-chain management system
Sustainable BPO service Operation services - Take over corporate clients’ environmental management Develop and offer a supply-chain management system Review of FY 2024 Established Circular LinX, a joint venture with the SMFL Group. Laid the foundation for launching new services. Background Growing c
Slide 32: Key Strategy for FY 2025
Key Strategy for FY 2025 Review of FY 2024 Shifted gears from providing reactive ESG support, focused on fulfilling clients’ need to measure the effectiveness of their ESG initiatives, to providing support for greater corporate sustainability, focused on fulfilling their need to assess the social im
Slide 33: Sales & Marketing Strategy: Inbound marketing model
Sales & Marketing Strategy Implement an inbound marketing model to drive the Group’s revenue growth 01. Convert a flywheel marketing model into AMITA’s inbound marketing model ⚫ Coordinate visioning, corporate communications, account relations, and B2B sales practices to bring unmet social needs to
Slide 34: Sales & Marketing Strategy: Establish an inbound marketing model
Sales & Marketing Strategy Establish an inbound marketing model to bring key players together inside and outside 02. AMITA and establish a leading position in the sustainability market 1 2 3 3 Expand a client base Pursue up-selling and cross-selling opportunities among across the AMITA AMITA Group c
Slide 35: MEGURU STYLE
Addressing four major community issues MEGURU STYLE Integrated solutions to community issues Four increasingly serious community issues: population drain; aging and shrinking population; declining employment opportunities; and rising costs of social security programs MEGURU STYLE does not mitigate t
Slide 36: MEGURU STYLE Progress Report
MEGURU STYLE Progress Report FY 2024 achievements 1 Project to recycle plastic baby bottles Examples of PoC field tests Collecting Picking up and Contribution consolidating PoC field test of baby-bottle recycling project Plastic baby bottles Sorting and no longer used Collection box installed recycl
Slide 37: MEGURU STYLE: Municipal partnerships
MEGURU STYLE FY 2024 achievements 2 Signed partnerships with these two additional municipalities during FY 2024. Number of municipalities with which AMITA has signed partnerships to date: 20 Kameoka, Kyoto Signed a future-building partnership with Kameoka to assist the city in looking into its commu
Slide 38: MEGURU STATION locations
MEGURU STYLE Kobe, Hyogo Prefecture 2 locations* Locations of MEGURU STATION® Since March 2023 Signed a partnership with Kobe City to jointly 17 locations in 6 communities achieve a sustainable ecosystem community. Operating in (including Malaysia) Cross-industry partnerships and SIP-initiated proje
Slide 39: MEGURU STYLE Key Strategy for FY 2025
MEGURU STYLE Key Strategy for FY 2025 Key Initiative for FY 2025 AMITA will continue to work with municipalities and other businesses to accelerate the implementation of MEGURU STYLE as a viable commercial solution for promoting a circular economy in a community. Move the project forward to develop
Slide 40: Environmental assessment and certification service
Environmental assessment and certification service Review of FY 2024 We signed up an increasing number of new corporate subscribers to our forest and fishery certification services. Background The need for obtaining environmental certification has been growing among businesses to mitigate procuremen
Slide 41: Environmental assessment and certification service Progress Report
Environmental assessment and certification service Progress Report FY 2024 achievements AMITA’s share of Number of businesses assessed by FY 2023 FY 2024 the Japanese AMITA market FSC® FM certification 22 21 62% FSC® CoC certification 578 586 26% Forest certification FSC® project certification 53 62
Slide 42: Business operations outside Japan
Business operations outside Japan Emerging markets in Asia Emerging countries in Asia have huge growth potential with global implications. Fast economic growth in those countries has come with the consequences of increased CO2 emissions and waste disposal, which drive the need for transitioning to a
Slide 43: Business operations outside Japan Progress Report
Business operations outside Japan Progress Report Review of FY 2024 AMITA CIRCULAR DESIGN SDN. BHD., AMITA Group’s regional headquarters in Asia, was established in Malaysia in April 2024 to accelerate the Group’s business development in India, Indonesia, and Malaysia, in partnership with local busi
Slide 44: Business operations outside Japan: Malaysia and Indonesia
Business operations outside Japan Malaysia FY 2024 achievements ⚫ Worked with a local business partner to secure a broader range of sources of industrial Cement Alternative Materials Produced waste. at the AMITA NAZA Plant in Malaysia Circular materials we produced were up 17% YoY. AMITA made record
Slide 45: Business operations outside Japan Key Strategy for FY 2025
Business operations outside Japan Key Strategy for FY 2025 Key Initiatives for FY 2025 Malaysia Indonesia Focus on expanding the local production of circular Focus on working with the local partners and materials and pursuing new business opportunities government in preparation for starting to produ
Slide 46: Ready to achieve the financial targets for FY 2025
We are ready to achieve the financial targets for FY 2025 by taking full advantage of the synergy across the Group and its common growth drivers. © 2025 AMITA HOLDINGS CO., LTD. All Rights Reserved. 46
Slide 47: Medium- and Long-term Management Plan Updated for FY 2025-2030
04 Medium- and Long-term Management Plan Updated for FY 2025-2030 KUMANO Eisuke Chairman and CVO AMITA HOLDINGS CO., LTD. © 2025 AMITA HOLDINGS CO., LTD. All Rights Reserved. 47
Slide 48: Entering an increasingly unpredictable time for economy and environment
We’re entering an increasingly unpredictable time for the economy and the environment Economy The United States has raised tariffs on certain imports. President Trump signed an executive order to impose an additional 25% tariff on imports from Canada and Mexico, and 20% on imports from China. Effect
Slide 49: Heightened need for greater corporate sustainability
Heightened need for greater corporate sustainability Social issues of climate change and depleting natural resources are becoming increasingly acute. Background A robust natural environment, society, and economy are the basis for ensuring sustainable business and community management. Implement reac
Slide 50: Growing demand for our assistance among businesses and municipalities
2024 Growing demand for our assistance among businesses and municipalities in shifting their priority from reactive ESG initiatives to those for greater corporate and community sustainability 2021 Launched the Social Systems Design Business, intended to create a circular market in Japan, in anticipa
Slide 51: Upgrade the value propositions of Cyano Project
Medium- and long-term business strategy in Japan 01. Upgrade the value propositions of Cyano Project Focus on assisting clients in conducting PoC assessments based on AMITA’s circular platform and in fulfilling their circular business needs plays the role of a circular “Do Tank” Establish a long-ter
Slide 52: Circular Models 3.0 and 4.0
Medium- and long-term business strategy in Japan 02. Circular Models 3.0 and 4.0 Circular Model 1.0 Labor-intensive manufacturing of circular materials Our state-of-the-art plant will become operational in July 2026, and its manufacturing (our model of the early days) operations will become fully au
Slide 53: Circular Model 3.0
Medium- and long-term business strategy in Japan Become more flexible in receiving and recycling a wider variety Circular Model 3.0 of industrial waste in smaller quantities, and in customizing circular materials to meet diverse industrial needs FY 2027 The Scope of Circular Model 3.0 Fully automate
Slide 54: Establish Circular Model 4.0 by 2030
Medium- and long-term business strategy in Japan Establish Circular Model 4.0 by 2030, designed to optimize the supply chain by compiling into a database information about industrial waste supplied by business operators, corporate users’ needs for circular materials, and delivery information provide
Slide 55: Develop the MEGURU STYLE service solutions
Medium- and long-term business strategy in Japan 03. Develop the MEGURU STYLE service solutions * Co-Creation City Initiative Focus on developing the MEGURU STYLE service solutions, an infrastructure that supports a sustainable society and plays a central role in AMITA’s CCC Initiative* Commercializ
Slide 56: AMITA's Concept of Creating Sustainable Value
Medium- and long-term business strategy in Japan AMITA’s Concept of Creating Sustainable Value We take a cue from “dou”, the 400-year-old traditional Japanese concept of practicing spiritual discipline and pursuing ultimate excellence, Taking a cue such as in a tea ceremony, to develop a concept of
Slide 57: Partnership with Kameoka City
Medium- and long-term business strategy in Japan AMITA partners with Kameoka City, Kyoto, to expand the locations of MEGURU STATION® across the city and achieve greater community sustainability March 12, 2025 ⚫ AMITA and Kameoka City agreed to expand the scope of the earlier partnership into a broad
Slide 58: Develop a Circular Platform
Medium- and long-term business strategy in Japan 04． Develop a Circular Platform Focus on developing a circular platform that drives a circular supply chain and a local networked economy, as part of fulfilling AMITA Vision 2030 to achieve an ecosystem society Proposed Circular Platform The platform
Slide 59: Establish a Remix Model
Medium- and long-term business strategy in Japan Establish a Remix Model, a database for consumption information management, a step beyond sales information management Use information gathered and compiled through MEGURU STYLE to enable manufacturers to predict consumer demand AMITA’s Remix Model an
Slide 60: GDP Trends in the ASEAN Region
Medium- and long-term business strategy outside Japan GDP Trends in the ASEAN Region ASEAN: Today and Tomorrow Nominal GDP per capita In 5 years 2024 results 2029 projected Up 30% Today’s soaring economic growth in the Asia- 13,100 USD 17,600 USD Pacific region is reminiscent of what was seen Malays
Slide 61: Establish a solid business foundation in partnership with local businesses
Medium- and long-term business strategy outside Japan Establish a solid business foundation in partnership with local businesses India Indonesia Malaysia May 1, 2024 August 9, 2024 December 2, 2024 ⚫ Signed an MOU with the Ramky Group, a ⚫ Agreed with the Salim Group, one of the ⚫ AMITA BERJAYA, a j
Slide 62: Six-Year Management Plan for FY 2025 through 2030
Six-Year Management Plan for FY 2025 through 2030 (In millions of yen) FY 2025 through 2027 Net sales Ordinary profit margin 8,700 Japan ⚫ Expand the advantage and scope of Cyano Project. Use the 28.8% Inbound Marketing Model to close project deals with more 6,000 clients. 5,700 ⚫ Develop circular m
Slide 63: Financial Targets for FY 2025
Financial Targets for FY 2025, the Last Year of the Groundwork Phase (In millions of yen; amounts rounded down to the nearest million yen) FY 2024 results FY 2025 targets FY 2026 targets FY 2027 targets Net sales 4,931 5,296 (5,070)* 5,700 6,000 Operating profit 473 653 (651) 700 845 Ordinary profit
Slide 64: Closing: ready to use accumulated know-how in circular models
The recession in Japan caused by the stronger yen following the Plaza Accord of 1985 motivated the AMITA Group to start devising a circular model. In the aftermath of the Asian financial crisis in 1997 and the global financial crisis in 2008, we predicted a social paradigm shift in coming years and