Nippon Air Conditioning Services Co., Ltd. · TSE:4658
Nippon Air Conditioning Services — Q2 FY03/2025 Earnings Presentation
45 slides from Nippon Air Conditioning Services's earnings presentation, November 2024
Slide 1: Reference Materials of Financial Results for the 2nd Quarter of FY Ending March 2025
© 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Reference Materials of Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2025 November 2024 TSE Prime Market, NSE Premier Market Securities code: 4658
Slide 2: Company overview
Company overview © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Apr. 1964 The company is established in Company overview Higashijukucho, Nakamura-ku Nagoya-shi, Aichi. Apr. 2024 marked since the Company Nippon Air Conditioning foundation. Name Services Co., Ltd. Securities Th
Slide 3: History since foundation
History since foundation © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■ Net sales (left axis) ■Net sales and operating income changes since foundation (billion yen) ● Operating income (right axis) Apr. 1964 Establishment 2024 Five-Year Mid-Term Management Plan 70 6 Start of
Slide 4: Business Overview
Maintenance and management cycle of building facilities © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■Business Overview In-house technicians can respond in any phase Comprehensive support encompassing building facility maintenance, operation, and management, Planning facili
Slide 5: Business division
Business division © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Net sales Business division Overview composition We conduct inspection, PM maintenance, repair, replacement, etc. of overall equipment/systems of buildings (mainly air 37％ Preventive Maintenance conditioning) by
Slide 6: Contents
Contents © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Ⅰ．Overview of financial results for FY03/2025 1H p.05-p.17 Ⅱ．The 2024 Five-Year Mid-Term Management Plan p.18-p.26 Ⅲ．Shareholder Returns p.27-p.30 Ⅳ．Supplementary materials p.31-p.43 5
Slide 7: Financial highlights
Ⅰ．Financial highlights © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Net sales：¥26.9 billion[+11.6％] Operating income ：¥1.79 billion[+59.6%] Profit attributable 最終利益 to owners of parent：¥1.17 billion[+51.7％] * For net sales, operating income, net income attributable to owner
Slide 8: Results for the 2nd quarter of fiscal year ending March 31, 2025
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. (billion yen, %) FY03/2023 2Q FY03/2024 2Q FY03/2025 2Q Consolidated (cumulative period) Ratio to Year-on-year Ratio to Year-on-year Ratio to Year-on-year Amount
Slide 9: Results for the 2nd quarter: rates of achievement of plan
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. For FY03/2025 1H, both net sales and profits exceeded the progress rate for the same period a year ago due to various factors including easing of competitive envi
Slide 10: Results for the 2nd quarter: net sales by quarter
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. For FY03/2025 1H, net sales reached a record high for the second consecutive year. Net sales of the mainstay maintenance services reached a record high for the fo
Slide 11: Results for the 2nd quarter: gross profit
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Profits increased in all categories of annual contracts, spot contracts, and construction by absorbing increases in costs due to rising procurement costs of mater
Slide 12: Results for the 2nd quarter: SG&A expenses and operating income
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. While SGA expenses rose due to various factors including an increase in labor costs due to base-pay increase and the distribution of shareholder benefits to comme
Slide 13: Net sales by facilities entrusted
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■Net sales by facilities of which services are entrusted ①Hospitals and research facilities (billion yen) ■ Hospitals and research facilities ■ Manufacturing plan
Slide 14: Annual contract sales, maintenance services and renovation work
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■ Hospitals and research facilities ■ Manufacturing plants, etc. ■ Other special facilities ■ Office buildings, etc. ■Annual contract sales (billion yen) ■Mainten
Slide 15: Overseas net sales by region
Ⅰ．Results for the 2nd quarter of fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■Overseas net sales by region (million yen) ■ China ■ Singapore ■ Other regions Net sales in four countries outside Japan ： ¥ 0.8 billion Thailand struggled mainl
Slide 16: Status of cash flows
Ⅰ．Status of cash flows © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. FY03/2024 2Q FY03/2025 2Q Consolidated Cash flows from investing activities (cumulative period) Amount Year-on-year Amount Year-on-year change change (billion yen) (billion yen) (billion yen) (billion yen)
Slide 17: Financial position
Ⅰ．Financial position © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. FY03/2024 FY03/2025 2Q Consolidated (as of the end of period) Amount Year-on-year Amount Year-on-year growth ratio growth ratio (billion yen) (billion yen) (％) (％) Current assets 26.3 +12.5 23.9 -9.2 Interest
Slide 18: Forecast for the fiscal year ending March 31, 2025
Ⅰ．Forecast for the fiscal year ending March 31, 2025 © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Although unstable geopolitical conditions, persistently high costs, and other unfavorable factors are expected to continue, we aim to achieve a year-on-year increase in both sa
Slide 19: Contents
Contents © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Ⅰ．Overview of financial results for FY03/2025 1H p.05-p.17 Ⅱ．The 2024 Five-Year Mid-Term Management Plan p.18-p.26 Ⅲ．Shareholder Returns p.27-p.30 Ⅳ．Supplementary materials p.31-p.43 18
Slide 20: Thrive, for growth
©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. Thrive, for growth Contributing to the sustainability of customer businesses activities 19
Slide 21: The 2024 Five-Year Mid-Term Management Plan: Purpose, Mission, Vision, Value
Ⅱ．The 2024 Five-Year Mid-Term Management Plan ©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. PURPOSE Contributing to the sustainability of customer businesses and enhancing the value of society as a whole MISS
Slide 22: Value: human capital, technical capabilities, energy-saving proposals
Ⅱ．The 2024 Five-Year Mid-Term Management Plan © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. VALUE Sustainable value creation and returns through enhancing the value of human capital 01 Increasing engagement to 02 Improving the Core 03 Focusing on customers 04 Strengthening e
Slide 23: Value: overseas expansion, profit levels, capital productivity, shareholder returns
Ⅱ．The 2024 Five-Year Mid-Term Management Plan © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. VALUE Sustainable value creation and returns through enhancing the value of human capital 05 06 07 08 Expanding and Maintaining profit levels to Maintaining capital Implementing susta
Slide 24: Financial and non-financial KPIs
Ⅱ．The 2024 Five-Year Mid-Term Management Plan ©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. We will strive to expand corporate value by reconsidering financial KPIs to track growth in the core businesses and
Slide 25: Technical Training Center
Ⅱ．The 2024 Five-Year Mid-Term Management Plan ©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. To accelerate the process of enhancing human capital value, the key to expanding our corporate value, we are current
Slide 26: Toward the achievement of long-term vision
Toward the achievement of long-term vision © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Intensifying our focus on increasing the competitive advantages of our core businesses Value Creation Human Capital Structure Enhance human capital Provide good service and improve engag
Slide 27: We will do what we must.
©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. We will do what we must. Strengthening the competitive advantages of our core businesses 26
Slide 28: Contents
Contents © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Ⅰ．Overview of financial results for FY03/2025 1H p.05-p.17 Ⅱ．The 2024 Five-Year Mid-Term Management Plan p.18-p.26 Ⅲ．Shareholder Returns p.27-p.30 Ⅳ．Supplementary materials p.31-p.43 27
Slide 29: Stock-related information
Ⅲ．Stock-related information © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Stock-related information ■dividend yield (％) 6.00 5.24 Stock price ¥1,025 3.88 4.14 4.16 3.82 Total market 4.00 capitalization ¥36.6 billion 2.00 Dividends ¥40.00 per share 0.00 Dividend payout 49.1%
Slide 30: Shareholder Returns
Ⅲ．Shareholder Returns ©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. We plan to pay an annual dividend of 40 yen per share (interim dividend of 20 yen and year-end dividend of 20 yen) for FY03/2025. ▶Dividend
Slide 31: Stable and sustainable returns
Ⅲ．Shareholder Returns ©2024 © 2024Nippon NipponAirAir Conditioning Conditioning Services Services Co., Co., Ltd. Ltd. All All Rights Rights Reserved. Reserved. Profit growth through sustainable growth of core businesses ▼ Stable and sustainable returns ▼ During the period covered by the 2024 Five-Ye
Slide 32: Contents
Contents © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Ⅰ．Overview of financial results for FY03/2025 1H p.05-p.17 Ⅱ．The 2024 Five-Year Mid-Term Management Plan p.18-p.26 Ⅲ．Shareholder Returns p.27-p.30 Ⅳ．Supplementary materials p.31-p.43 31
Slide 33: Number of employees
Ⅳ．Number of employees © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■ Regular employees Technology-related employees ■Number of employees (persons) ■ Average temporarily employed workers ( ) Technology-related employees account for more than 80% 4,000 Technology-oriented com
Slide 34: Domestic market size
Ⅳ．Domestic market size © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Construction and maintenance Companies approx. ¥2.2 trillion ▼ Approx. 70% of the air conditioning and heat source system market is for existing buildings ▼ we project a target for the Company of approx. ¥1
Slide 35: Comparison with other companies in the same business
Ⅳ．Comparison with other companies in the same business © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. The Company Company Company Company A B C Characteristics of the Company compared to other Total market ¥36.6 ¥210.4 ¥108.8 ¥6.9 capitalization companies in the same sector b
Slide 36: Three key advantages
Ⅳ． Nippon Air Conditioning Services Three key advantages © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ① Advanced technological capabilities ② Independence from manufactures Company A Company B Company C ③Vast service network 35
Slide 37: Advanced technological capabilities
Ⅳ．① Advanced technological capabilities © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■Ratio of sales of facilities with special environment (%) ■ Ratio of sales of facilities with special environment ■ Other sales Hospitals and manufacturing plants must meet strict environm
Slide 38: Advanced technological capabilities (Examples of Hospital Operations)
Ⅳ．① Advanced technological capabilities(Examples of Hospital Operations) © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Central surveillance service Solution proposals “Is it possible to create such and such environment?” or “How can we improve the situation?” ▼ ＋ Daily measu
Slide 39: Advanced technological capabilities: examples
Ⅳ． ① Advanced technological capabilities © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Examples of the technological capabilities required are shown below. * Picture: Environmental performance measurement / diagnosis, Clean equipment maintenance, Environmental hygiene manage
Slide 40: Independence from manufacturers
Ⅳ．②Independence from manufactures © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. There is air-conditioning equipment from various makers inside buildings. Company A- Company B- Company C- manufacture manufacture manufacture (1) As an independent company, we are not subject to
Slide 41: Vast service network
Ⅳ．③Vast service network © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. Japan Overseas 〇Nippon Air Conditioning Services Co., Ltd. ○China Head office, branches and sales offices:67 locations ・Suzhou Nikku Suntec Electromechanical Technology Co., Ltd. 〇Group Companies （an overs
Slide 42: Share in large-scale domestic hospitals
Ⅳ．Share in large-scale domestic hospitals © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■ Percentage of acceptance of outsourcing for domestic hospitals that have 600 beds or more (beds) Our strengths include facilities maintenance at large ■ Our company ■ Others hospitals,
Slide 43: Hospital energy savings (example)
Ⅳ．Hospital energy savings (example) © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. ■Energy transition graph（t-CO2） 2010年度エネルギー Energy in FY2010 Midsized Tokyo hospital(450 beds scale) 2023年度エネルギー Energy in FY2023 Total floor area approx. 48,000 sqm 800 Succeeded in saving a s
Slide 44: Acquire patents by developing new technologies
Ⅳ．Topics: Acquire patents by developing new technologies © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. First patent Second patent (April 2023) (November 2023) Microbe Safer microbe decontamination decontamination technique technique that enables that uses Vinegar and Oxydol
Slide 45: Disclaimer
Disclaimer © 2024 Nippon Air Conditioning Services Co., Ltd. All Rights Reserved. These materials were prepared by Nippon Air Conditioning Services Co., Ltd. (the “Company”) for the purpose of understanding the current status of the Company, and do not aim at solicitation for investment in securitie
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