Takashima & Co., Ltd. · TSE:8007

Takashima & — FY2022 Earnings Presentation

48 slides from Takashima &'s earnings presentation, Mar 31, 2023

1. Slide 1: FY22 Full Year Financial Briefing

   Notice: This document is 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. Fiscal Year Ending March 31, 2023(FY22) Full Year Financial Briefi

2. Slide 2: Contents

   Contents 1| FY22 Financial Highlights 2| FY23 Consolidated Performance Forecast 3| Shareholder Return 4| Our efforts to meet the continued-listing criteria in the new market segment of Tokyo Stock Exchange Copyright©2023 Takashima & Co., Ltd. All Rights Reserved. 2

3. Slide 3: 1. FY22 Financial Highlights

   １. FY22 Financial Highlights Copyright©2023 Takashima & Co., Ltd. All Rights Reserved.

4. Slide 4: Executive Summary

   Executive Summary ✓ Increase Net Sales and Profit ✓ Highest Net Profit Ever FY22 ✓ Annual dividend per share of ¥170 Financial Highlights (Year-end Dividend Increased by ¥30) ✓ Payout ratio 47.9% Total Return Ratio 54.3% FY23 Net Sales ¥89,000M, Operating Profit 1,800M, Ordinary Profit Performance 1

5. Slide 5: Consolidated Performance: P/L

   Consolidated Performance: P/L ✓ Net sales increased due to strong performance in the construction supply segment and the electronics and devices segment. Selling, general and administrative (SG&A) expenses increased due to increased sales activities to expand business performance, increased system i

6. Slide 6: Consolidated Performance: P/L Sales & Operating Profit Transition

   Consolidated Performance: P/L Sales & Operating Profit Transition (Unit: Millions of yen) Impact of the spread of 100,000 new coronavirus infection Impact of Adoption of Revenue Recognition Standard 89,557 88,799 90,000 85,310 4Q 80,625 79,683 3Q 80,000 22,404 21,688 74,054 2Q 21,385 70,000 20,113 1

7. Slide 7: Consolidated Performance B/S

   Consolidated Performance B/S The end of FY21 The end of FY22 (Mar. 31, 2022) （Mar. 31, 2023） Total assets：¥45,176M +¥7,883M Total assets：¥53,060M Equity ratio：40.9％ (4.1)pts Equity ratio：36.8％ (Unit: Millions of yen) （Unit: Millions of yen） Current liability Current liability 27,585 21,024 Current a

8. Slide 8: Consolidated Performance: B/S (detailed)

   Consolidated Performance: B/S(detailed) (Unit: millions of yen) Amount of Ratio of FY21 FY22 change(YoY) change(YoY) Main reasons of change Total Assets 45,176 53,060 7,883 17.5% Notes Receivables –trade and accounts receivable – trade +¥2,592M, Electronically recorded monetary claims- operating Tot

9. Slide 9: Consolidated Performance: C/F

   Consolidated Performance: C/F Cash flows from operating activities: Increase in trade payable +¥3,227M Increase in trade receivables and contract assets ¥(3,850)M Cash flows from investing activities : Acquisition of shares of a subsidiary resulting in a change in the scope of consolidation ¥(1,211)

10. Slide 10: Performance of Each Segment

    Performance of Each Segment Copyright©2023 Takashima & Co., Ltd. All Rights Reserved.

11. Slide 11: Net Sales Configuration by Segment

    Net Sales Configuration by Segment FY22 Net Sales ¥79,683M 55.9 22.2 21.7 0.2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Construction Supply Industrial Materials Electoronic Devices Other Construction Supply Segment Industrial Materials Segment Electronic Device Segment This segment handles a varie

12. Slide 12: Briefing by Segment: Construction Supply

    Briefing by Segment: Construction Supply(Net sales, Segment Operating Profit/Loss) (Unit: Millions of yen) Net sales 50,000 44,511 50,000 42,020 40,000 32,908 33,275 40,000 30,000 30,000 21,906 21,748 20,000 10,360 9,562 20,000 Net sales ¥44,511 M 10,000 10,000 Year-on-Year 5.9 ％ 0 0 FY21 1Q FY21 2Q

13. Slide 13: Briefing by Segment: Construction Supply -Business Field-

    Briefing by Segment: Construction Supply -Business Field- ➢ In the construction supply field, sales of construction materials were firm, although sales of ground improvement work were sluggish. ➢ Sales in the solar energy-related sector increased year on year, despite the impact of supply delays for

14. Slide 14: Briefing by Segment: Industrial Materials

    Briefing by Segment: Industrial Materials(Net sales, Segment Operating Profit/Loss) (Unit: Millions of yen) Net Sales 20,000 18,116 20,000 17,677 15,000 13,536 13,101 15,000 9,077 10,000 8,561 10,000 Net sales ¥17,677 M 4,373 4,099 5,000 5,000 Year-on-Year (2.4) ％ 0 0 FY21 1Q Plastic FY21 2Q FY21 3Q

15. Slide 15: Briefing by Segment: Industrial Materials -Business Field-

    Briefing by Segment: Industrial Materials -Business Field- ➢ In the plastic materials-related field, sales increased due to an increase in orders for molded products, despite a slow recovery in the automotive market due to the shortage of semiconductors. ➢ Textile materials-related sector remained s

16. Slide 16: Briefing by Segment: Electronic Devices

    Briefing by Segment: Electronic Devices(Net sales, Segment Operating Profit/Loss) (Unit: Millions of yen) Net Sales 20,000 17,301 15,000 13,724 13,688 10,000 9,922 6,672 8,410 Net sales ¥17,301 M 5,000 3,302 3,963 Year-on-Year 26.1 ％ 0 FY21 1Q FY21 2Q FY21 3Q FY21 4Q FY22 1Q FY22 2Q FY22 3Q FY22 4Q

17. Slide 17: Briefing by Segment: Electronic Devices -Area-

    Briefing by Segment: Electronic Devices -Area- ➢ In the electronic equipment-related field, the domestic consumer electronics market, the main market, was in a difficult situation with negative growth for the third consecutive year, while the domestic white goods market turned positive for the first

18. Slide 18: Real Estate Leasing Segment

    Real Estate Leasing Segment ➢ No change in real estate owned by the Company from the previous period, and both net sales and segment profit remained unchanged. (Unit: Millions of yen) Net Sales 250 192 193 200 144 146 150 96 97 Net sales ¥193 M 100 48 49 Year-on-Year 0.9 ％ 50 0 2022年3月期 FY21 1Q 1Q 2

19. Slide 19: FY22 4Q Segment Performance Overview

    FY22 4Q Segment Performance Overview (Unit: Millions of yen) FY21 FY22 Amount of change Year-on-Year Net Sales 74,054 79,683 5,629 7.6% Construction Supply 42,020 44,511 2,490 5.9% Industrial materials 18,116 17,677 (439) (2.4)% Electronic Devices 13,724 17,301 3,576 26.1% Real Estate Leasing 192 19

20. Slide 20: 2. FY23 Consolidated Performance Forecast

    2. FY22 Full-year Consolidated Performance Forecast Copyright©2023 Takashima & Co., Ltd. All Rights Reserved.

21. Slide 21: FY23 Consolidated Performance Forecast

    FY23 Consolidated Performance Forecast ✓ Sales increased 11.7% YoY to ¥89,000M. ✓ Net profit increased 0.9% from the previous year to ¥1,600M. （unit：Millions of yen） FY23 Amount of FY22 Year-on-Year (Forecast) Change Net Sales 79,683 89,000 9,316 11.7% Operating profit 1,764 1,800 35 2.0% ratio of o

22. Slide 22: FY23 Consolidated Full-year Forecast by Segment

    FY23 Consolidated Full-year Forecast by Segment （unit：Millions of yen） FY23 FY22 Amount of change Year-on-Year (forecast) Net sales 79,683 89,000 9,316 11.7% Construction Supply 44,511 54,600 10,088 22.7% Industrial Materials 17,677 18,750 1,072 6.1% Electronic Devices 17,301 15,450 (1,851) (10.7)%

23. Slide 23: 3. Shareholder Return

    3.Shareholder Return Copyright©2023 Takashima & Co., Ltd. All Rights Reserved.

24. Slide 24: Share Split

    Share Split Purpose of the Stock Split By reducing the amount per investment unit of our share, we aim to create an environment in which investors can invest more easily, to improve the liquidity of our share, and to further expand our investor base. Overview of share split Ratio of split 4-for-1 st

25. Slide 25: Shareholder Return Dividend

    Shareholder Return Dividend Consolidated dividend payout ratio of 40% or more - Total return ratio of 50% Basic Policy Lower limit of total return amount: 500 million yen Transition of Dividend per Share and Dividends per share Dividend Payout Ratio (yen) Interim Year-end Total ( (yen) Total return

26. Slide 26: Our efforts to meet the continued-listing criteria in the new market segment of TSE

    Our efforts to meet the continued-listing criteria in the new market segment of Tokyo Stock Exchange May 31, 2023 Takashima & Co., Ltd Securities Code 8007

27. Slide 27: Contents

    Contents 1．Status of meeting the criteria as of the base date of TSE's transition to the new market classification 2．Basic policy of the plan to meet the continued listing criteria 3．Progress based on the plan to meet the continued listing criteria 4．Sustainability V (Value), a medium-term managemen

28. Slide 28: 1. Status of meeting the criteria as of TSE's transition date

    1. Status of meeting the criteria as of the base date of TSE’s transition to the new market classification Copyright © 2023 Takashima & Co.,Ltd. All Rights Reserved.

29. Slide 29: Criteria

    1. Result of judgment by the Tokyo Stock Exchange as of the transition reference date - The Company's compliance with the criteria for continued-listing on the prime market as of the transition reference date (June 30, 2021) did not meet the criteria for tradable market capitalization and trading va

30. Slide 30: 2. Basic Policy of our plan to meet the criteria

    2. Basic Policy of our plan to meet the criteria Copyright © 2023 Takashima & Co.,Ltd. All Rights Reserved.

31. Slide 31: Basic Policy of Our Plan to Meet the Criteria

    2. Basic Policy of Our Plan to Meet the Criteria - In the plan to meet the criteria disclosed on November 10, 2021, we established five basic policies to achieve the market capitalization of tradable shares and trading value standards.。 Basic initiative policy for improving tradable share market cap

32. Slide 32: 3. Progress based on the plan to meet the criteria

    3. Progress based on the plan to meet the continued listing criteria Copyright © 2023 Takashima & Co.,Ltd. All Rights Reserved.

33. Slide 33: Transition of our status

    3-1 Trends in Status About to Meet the Continued-listing Criteria - As for the status of compliance with the continued-listing criteria on the prime market at the end of the fiscal year ending March 31, 2023, our estimate of trading value met the criteria, but tradable market capitalization did not

34. Slide 34: Planning Period to Meet the Continued-listing Criteria

    3-2. Planning Period to Meet the Continued-listing Criteria - The period of the plan to meet the continued-listing criteria of the prime market listing is until the end of the fiscal year ending March 31, 2026, which is the final year of the Medium-Term Management Plan Sustainability V (fiscal year

35. Slide 35: Status of Implementation and Evaluation of Initiatives

    3-3. Status of Implementation and Evaluation of Initiatives As a result of the steady implementation of the agreed-upon items in the plan to meet the criteria for "market capitalization of tradable shares (10 billion yen)," the ratio of tradable shares and the share price are on an increasing trend,

36. Slide 36: 4. Sustainability V, a medium-term management plan

    4. Sustainability V (Value), a medium-term management plan developed with the aim to meet the continued listing criteria of TSE’s prime market. Copyright © 2023 Takashima & Co.,Ltd. All Rights Reserved.

37. Slide 37: Next Medium-term Management Plan Sustainability V: Basic Policy

    4．Next Medium-term Management Plan “Sustainability V” 4-1. Basic Policy - “Sustainability V” will simultaneously achieve adaptation to a sustainable society and sustainable growth through value creation strategies that capture growth opportunities in a changing market toward "Achieving a Carbon Neut

38. Slide 38: Our Continuous Growth Story

    4．Next Medium-term Management Plan “Sustainability V” 4-2. Our Continuous Growth Story Growth Value Creation Opportunities [Construction Supply] Nationwide domestic procurement and sales network Energy-savings and Labor-savings -8 domestic sales offices -Domestic and foreign manufacturer procurement

39. Slide 39: Improvement of Corporate Value

    4．Next Medium-term Management Plan “Sustainability V” 4-3. Basic Policy - We aim to increase corporate value by achieving profit growth and capital productivity improvement ◼ Pursuing a strategy of providing multiple values by seizing growth opportunities Improvement in the market and gradually impr

40. Slide 40: Management Indicators and Financial Policies

    4．Next Medium-term Management Plan “Sustainability V” 4-4. Management Indicators and Financial Policies - We set management indicators and financial policies that focus on growth. - We aim to achieve net income of ¥1.7 billion in the final year of the plan (fiscal year ending March 2026). Additional

41. Slide 41: 5. Our Achievements and Plans for the Future

    5. Our Achievements and Plans for the Future Copyright © 2023 Takashima & Co.,Ltd. All Rights Reserved.

42. Slide 42: Shareholder Return Policy

    5．Next medium-term Management Plan “Sustainability V” 5-1. Shareholder Return Policy - Shareholder returns for FY2023-FY2025 in accordance with the basic policy of the plan to meet the criteria Consolidated dividend payout ratio of 40% or more Basic Policy Total return ratio of 50% The minimum total

43. Slide 43: Actions Considering Expiration of Transitional Measures

    5-2. Actions to be Taken in Consideration of the Decision on the Expiration Date of the Transitional Measures for the Continued-listing Criteria - In light of the decision to terminate the transitional measures for the listing maintenance standards by the end of March 2025, the Company aims to achie

44. Slide 44: M&A Disclosed in May 2023: Gansui Corporation

    5-3. M&A Disclosed in May 2023. Acquisition of Gansui Corporation Overview of Gansui Corporation ✓ Almost 60 years in business since its establishment. ✓ Residential and nonresidential markets (foundation reinforcement and ground improvement fields) Housing market: Solid market transition Non-reside

45. Slide 45: Progress of the Established Investment Limit

    5-4. Progress of the Established Investment Limit - We has already invested 8.57 billion yen out of a total investment limit that has been increased to over 10 billion yen. - The Company plans to continue to make investments with investment returns. Result Initial Plan (FY21-FY22) (FY23-FY25) ¥3,000

46. Slide 46: 6. Trends in Stock Price After the Announcement of Our Plan

    6. Trends in Stock Price After the Announcement of Our Plan to Meet the Criteria Copyright © 2023 Takashima & Co.,Ltd. All Rights Reserved.

47. Slide 47: Share Price Trends After the Announcement of the Plan

    6. Share Price Trends After the Announcement of the Plan to Meet the Criteria - After the announcement of the plan to meet the criteria, the company steadily implemented the commitment items in its basic policy, and as a result, the stock price remained steady. - We will continue to take actions to

48. Slide 48: Inquiries on this document

    Inquiries on this document IR and PR Unit, Takashima & Co., Ltd. ir@ta.tak.co.jp URL https://www.tak.co.jp/en/ir/contact1.html ■ Handling of this document [Precautions regarding forecasts] The data and predictions for the future disclosed in this document are based on judgments as of the release dat

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