Trusco Nakayama Corporation · TSE:9830

Trusco Nakayama — Q1 2023 Earnings Presentation

47 slides from Trusco Nakayama's earnings presentation, Jun 2, 2023

1. Slide 1: The 61st Business Year Business Performance Data Analysis

   The 61st Business Year Business Performance Data Analysis FYE December 31, 2023 First Quarter Published by: (Securities code: 9830) Business Administration Headquarters, Corporate Planning Division, Public Relations & IR Section Post code: 105-0004 Trusco Fiorito Bldg. 10th floor, 4-28-1, Shinbashi,

2. Slide 2: Table of Contents

   Table of Contents 04. Financial and Other Performances ………………… P.20 [Consolidated] Selling, general and administrative expenses (SGA) [Consolidated] Details of selling, general and administrative expenses 01. Company Profile …………………… P.3 (SGA) [Consolidated] Financial statements and financial indica

3. Slide 3: Company Profile

   01 Company Company overview Business flow Profile 3 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

4. Slide 4: Company overview

   Company overview Corporate message Company GAMBARE!! JAPANESE MONODZUKURI name TRUSCO Nakayama Corporation Founding May 15, 1959 Tetsuya Nakayama, President Chairman, Nakayama Visually Impaired Welfare Foundation Representative Vice president, Japan Federation of Machine Tool Distributors Associatio

5. Slide 5: Business flow

   Business flow Manufacturers Distributors Users Wholesale Retail 5,589 3,376 companies ∞ (infinite) companies Factory route Connecting an outlet We deliver our products to Manufacturers, factories, construction sites, and construction Domestic suppliers to TRUSCO is an easy other manufacturing sites

6. Slide 6: Company-wide Business Performance

   Accounting highlights 02 Company-wide [Consolidated] Business performance [Consolidated] Monthly sales [Consolidated] Monthly sales by sales Business route Performance 6 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

7. Slide 7: Accounting highlights

   Accounting highlights Performance in the first quarter of the 61st business year [Actual results] Net sales: 65,983 million yen (YoY change +7.9%), Gross profit margin: 20.1% (YoY change -1.0 pt) Selling, general and administrative expenses (SGA): 9,319 million yen (YoY change: -0.8%), Operating inc

8. Slide 8: [Consolidated] Business performance

   [Consolidated] Business performance FYE December 31, 2022 FYE December 31, 2023 Full Year FYE December 31, 2023 First Quarter Full year budget Change Year-on- Points Actual results Share Actual results Share YoY change from Budget year budget change ・ Net sales 246,453 million 65,983 million 265,090

9. Slide 9: [Consolidated] Monthly sales

   [Consolidated] Monthly sales In March, single-month net sales reached a record high of 25,485 million yen and sales per day amounted to 1,158 million yen. 26,000 25,485 24,000 22,999 23,153 23,295 23,284 22,311 21,597 21,815 22,000 21,004 20,772 20,532 20,000 18,899 18,000 +11.5 +8.5 +11.0 16,000 +7

10. Slide 10: [Consolidated] Monthly sales by sales route

    [Consolidated] Monthly sales by sales route e-business route 5,462 5,078 5,080 4,814 4,940 4,871 4,723 4,757 4,600 * Since April 1, 2022, we have changed our holidays according to the calendar, so the number 4,538 4,436 4,241 of business January days has increased February March compared April May t

11. Slide 11: Sales Performance

    [Consolidated] Business performance by sales route ・Factory route 03 ・e-business route ・Home center route ・Business performance of subsidiaries [Non-consolidated] Changes in sales by category of goods Sales Performance [Non-consolidated] Sales by category of goods [Non-consolidated] Sales of private

12. Slide 12: [Consolidated] Business performance by sales route

    [Consolidated] Business performance by sales route Factory route: Share 68.6% (YoY change +5.0%) e-business route: Share 22.0% (YoY change +14.4%) Home center route: Share 8.6% (YoY change +16.2%) Overseas route: Share 0.8% (YoY change +13.1%) FYE December 31, 2023 FYE December 31, 2022 Full Year FY

13. Slide 13: 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 Points the manufacturing sector have not returned to their pre-pandemic

14. Slide 14: Business performance by sales route: (e-business route)

    [Consolidated] Business performance by sales route: (e-business route) This route delivers our products to factories and consumers through Internet order companies. Product data and system linkage, as well as logistics processing tailored to customer needs, have improved convenience, resulting in a

15. Slide 15: 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

16. Slide 16: Business performance by sales route: (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

17. Slide 17: [Non-consolidated] Changes in sales by category of goods

    [Non-consolidated] Changes in sales by category of goods Sales of environmental safety equipment and chemical products, which are our strengths, increased. On the other hand, there was a lull in demand for fall arrest equipment following last year's revision of the Industrial +300 Safety and Health

18. Slide 18: [Non-consolidated] Sales by category of goods

    [Non-consolidated] Sales by category of goods (Unit: million yen, %) Gross Gross Category of goods (large Category of goods (large Medium category TRUSCO's sales Share YoY change profit Medium category TRUSCO's sales Share YoY change profit category) category) margin margin 1. Cutting tools Cutting

19. Slide 19: [Non-consolidated] Sales of private brand (PB) goods

    [Non-consolidated] Sales of private brand ▮ Share of sales of private brand products As of end of March 2023 (PB) goods Cutting tools 1.6% Production processing goods 3.6% Office and housing facility We will continue our efforts to revamp our core equipment 10.2% products so that our private brand T

20. Slide 20: 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 Performances [Consolidated] Capital expenditures Major capital expenditur

21. Slide 21: [Consolidated] Selling, general and administrative expenses (SGA)

    [Consolidated] Selling, general and administrative expenses (SGA) Although freight and packing costs increased due to increased shipping volume, and utilities costs increased due to higher electricity rates, etc., selling, general and administrative expenses saw a -0.8% YoY change due to a decrease

22. Slide 22: [Consolidated] Details of selling, general and administrative expenses (SGA)

    [Consolidated] Details of selling, general and administrative expenses (SGA) (Unit: million yen) FYE December 31, 2022 FYE December 31, 2023 First Quarter Full year budget FY 2023 Full Year and YoY change Budget Change from the in performance Share in net Share in net No. Actual results sales Actual

23. Slide 23: [Consolidated] Financial statements and financial indicators

    [Consolidated] Financial statements and financial indicators Balance Sheet Statement of cash flows (Unit: million yen) As of March 31, 2023 (Unit: Million yen) Q1 of FY 2022 Q1 of FY 2023 Change Item Amount Item Amount (Assets) (Liabilities) Cash flows from operating activities 4,977 4,390 -586 Curr

24. Slide 24: [Consolidated] Capital expenditures

    [Consolidated] Capital expenditures Major capital expenditures and planned capital expenditures (Unit: million yen) Actual investment in Planned investment in Details of major capital expenditures in 2023 Q1 FY 2023 Q2-4 FY 2023 Planet Aichi material handling facility (planned amount for current fis

25. Slide 25: 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 2nd automated pallet warehouse Location: Matsudo, Chiba Prefecture Location: Sakai, Osaka Prefecture Location: Kitanagoya, Aichi Prefe

26. Slide 26: Various key indicators

    Digital 05 Various key Merchandise Sales Logistics indicators Human resources 26 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

27. Slide 27: Key indicators (digital)

    Key indicators (digital) Plan 59th business year 60th business year 61st business year Rate of automated Key indicators FYE December 31, 2021 FYE December 31, 2022 FYE December 31, 2023 quotations Rate of automated quotations 18.2% (+10.1) 22.6% (+4.4) 28.0% (+5.4) 25.4% Digital Rate of online quota

28. Slide 28: Key indicators (goods)

    Key indicators (goods) Plan [Non-consolidated] Change in 59th business year 60th business year 61st business year sales of newly listed goods on Key indicators FYE December 31, 2021 FYE December 31, 2022 FYE December 31, 2023 TRUSCO Orange Book.Com in No. of items featured on TRUSCO company-wide sal

29. Slide 29: Key indicators (sales)

    Key indicators (sales) Plan Amount irrecoverable due to bankruptcy 59th business year 60th business year 61st business year Amount irrecoverable Key indicators FYE December 31, 2021 FYE December 31, 2022 FYE December 31, 2023 (10,000 yen) 2019 0 Number of corporate clients 5,527 companies (+12) 5,57

30. Slide 30: Key indicators (logistics)

    Key indicators (logistics) Plan Changes of the User Direct 59th business year 60th business year 61st business year Shipment Service Key indicators FYE December 31, 2021 FYE December 31, 2022 FYE December 31, 2023 No. of direct shipments to users 2,836,392 (+603,997) 3,556,388 (+719,996) 4,400,000 (

31. Slide 31: Key indicators (logistics)

    Key indicators (logistics) Number of items in inventory [Non-consolidated] Changes in inventory and inventory shipment rate disposal and inventories 91.3 91.7 91.8 90.5 91.0 2018 2019 2020 2021 2022 600,000 570,461 562,026 Inventory disposal 39 42 50 55 65 (million yen) 499,964 Inventories (100 500,

32. Slide 32: Key indicators (human resources)

    Key indicators (human resources) Number of Employees [Consolidated] Average age and annual income As of FYE March 31, 2023 (Unit: persons) Female Male Total YoY change Average age (years) Average annual income (10,000 yen) * The total average annual income Entire Entire Executives 1 11 12 +2 Female

33. Slide 33: Management Plan Vision - Capacity targets -

    [Consolidated] Quarterly business performance and budget (quarterly) 06 [Consolidated] Quarterly business performance and budget (cumulative) [Consolidated] Three-year management plan Management Plan Vision - Capacity targets - 33 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

34. Slide 34: [Consolidated] Quarterly business performance and budget (quarterly)

    [Consolidated] Quarterly business performance and budget (quarterly) FYE December 31, 2023 First Quarter (Quarterly) (Unit: million yen) 1st Quarter (+2 days) 2nd Quarter (+1 day) 3rd Quarter (±0 day) 4th Quarter (±0 day) Amount Share (%) YoY change (%) Amount Share (%) YoY change (%) Amount Share (

35. Slide 35: [Consolidated] Quarterly business performance and budget (cumulative)

    [Consolidated] Quarterly business performance and budget (cumulative) FYE December 31, 2023 First Quarter [Cumulative] (Unit: million yen) 1st Quarter (+2 days) 2nd Quarter (+3 days) 3rd Quarter (+3 days) Full year (+3 days) Amount Share (%) YoY change (%) Amount Share (%) YoY change (%) Amount Shar

36. Slide 36: [Consolidated] Three-year management plan

    [Consolidated] Three-year management plan We have formulated a three-year plan to visualize and better secure the results of the planned investments. In anticipation of the operation of Planet Aichi in 2026, we aim to achieve the goals in this plan by implementing measures that will lead to improved

37. Slide 37: Vision - Capacity targets -

    “Vision” - Capacity targets - We want to be a company that can hold 1 million We want to be a company that can respond to quotations 01 items in inventory by 2030. 06 instantly. (Automated estimate response rate as of December 31, 2022: 22.6%) We want to be a company that can achieve the "fastest,"

38. Slide 38: ESG Information

    TRUSCO's "Gentleness for the Future" 07 Project Sustainability indicators Other environmental measures and ESG Information initiatives Relationship with society & corporate governance 38 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

39. Slide 39: 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 e

40. Slide 40: Sustainability indicators

    Sustainability indicators CO₂ emissions (as of the end of 2022) CO₂ emissions from fuel use (Scope 1)_2,327 t-co₂ / CO₂ emissions from electricity use (Scope2) 8,109 t-co₂ CO₂ emissions in the supply chain (Scope 3 *) 1,724,759 t-co₂ * Only Scope 3 is for the year 2021. Reduction in CO2 emissions th

41. Slide 41: Sustainability indicators: Naojiro Workshop

    Sustainability indicators Workshop Role of repair workshop "Naojiro" Naojiro TRUSCO power generation installations (solar and wind It is a service that maintains the safety and precision power) at 19 locations essential for pro tools, and aims to reduce the environmental impact and contribute to cos

42. Slide 42: 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

43. Slide 43: Relationship with society & corporate governance

    Relationship with society & corporate governance “TRUSCO Unknown Gulliver”, TV program Open judge system (OJS = 360 degree provided by a single company evaluation) This is a program provided by a single company that conveys our company's This is our company's unique evaluation system, in which emplo

44. Slide 44: Reference Information

    08 Stock information Index comparison in the industry The Company's sales index and industrial Reference production index Information 44 Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

45. Slide 45: Stock information

    Stock information Shareholder Information (Unit: persons) End of End of June End of End of June End of End of June December, 2020 December 2020 2021 December 2021 2022 2022 Shareholders total 23,697 16,336 14,903 14,406 16,212 15,466 Holder of share 22,887 15,514 14,030 13,527 15,190 14,436 Holder o

46. Slide 46: 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 capitalization Trading companies in the machine tools industry include Net sales (million yen) Year-on-year (100 million yen) the comp

47. Slide 47: 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 TRUSCO sales index 128.7 132.5 128.1 120.0 117.1 106.3 104.2 103.1 100.0 101.1 100.0 95.2 95.6 100.0 90.9 Industrial production index 80.0 2015 2016 2017 2

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