Takamiya Co., Ltd. · TSE:2445
Takamiya — SRG TAKAMIYA — Q2 FY2019 Earnings Presentation
47 slides from Takamiya's earnings presentation, Nov 21, 2018
Slide 1: Results Briefing Materials for the Second Quarter of FY Ending March 31, 2019
Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 31, 2019 November 21, 2018 Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the
Slide 2: Company Overview of SRG TAKAMIYA CO., LTD.
Company Overview of SRG TAKAMIYA CO., LTD. Trade name SRG TAKAMIYA CO., LTD. Incorporation June 21, 1969 Representative President and representative director, Kazumasa Takamiya Capital 731,097,900 yen Number of employees Consolidated : 1,208; Non-consolidated : 677(As of end-September, 2018) Registe
Slide 3: Company name change
Company name change Notice of changes in trade name and logo The Company has set out its vision as "Create new value through transformation and aim to become a corporate group that drives qualitative development of the industry", and decided to change its trade name to "TAKAMIYA Co., Ltd. " effectiv
Slide 4: History
History • 1969 June Founded as Shin Kansai Co., Ltd., currently SRG TAKAMIYA CO., LTD., in Osaka City. • 1998 Apr. Established Techno Kobo Ltd. (currently Cadian Co., Ltd., a consolidated subsidiary) in Osaka City. • 2004 Oct. Established HIRAMATSU Co., Ltd. (currently a consolidated subsidiary) in
Slide 5: Business Diagram
Business Diagram Overseas business Sale・Rental・Construction Purchase Hory Korea Co., Ltd HORY VIETNAM Co., Ltd. temporary equipment manufacturers, trade firms, etc.) housing manufacturers, agricultural corporations, etc.) Sale Sale・ Rental・Construction DIMENSION-ALL INC. Suppliers (raw materials man
Slide 6: 1. Consolidated Financial Results (Cumulative Period)
1. Consolidated Financial Results (Cumulative Period) 2Q FY Ending March 31, 2019 2Q FY Ending March 31, 2019 2Q FY Ending March 31, 2019 2Q FY Ended March 31, 2018 Consolidated Results Forecast Forecast Results Results % change （Revised October. 29, 2018） （Unit:million yen） (YoY) Sales ratio Sales
Slide 7: 2.1 Net sales comparison with previous year
2. Comparison with the previous year 2.1 Net sales （Unit:million yen） 22,000 Net sales 21,000 +1,499 20,734 Increased by 2,858 million yen. As with 1Q, despite some impact by decrease in 20,000 inter-segment transactions of sales-related business, each segment of Sales, Rental and +1,507 Overseas ac
Slide 8: 2.2 Operating income comparison with previous year
2. Comparison with the previous year 2.2 Operating income （Unit:million yen） Operating income 1,200 +290 (70) +17 1,087 1,100 Increased by 282 million yen. Overseas business segment experienced 1,000 increase in depreciation of assets for rent due to proactive investment in equipment, whereas 900 +4
Slide 9: 3. Sales business
3. Sales business 3.1 Comparison with the previous year Net sales Segment profit Net sales (1,725) +136 (92) Decreased by 876 million yen. ＋848 As with 1Q, inter-segment transactions decreased because of merging Hory Corp. that had previously been one of the group companies. From the beginning, sale
Slide 10: 3.2 Net Sales by Field
3. Sales business 3.2 Net Sales by Field * The figures in parentheses are external sales figures. 3,099 789 （3,127） 3-4Q 5,419 4,877 （3,608） 947 1-2Q （4,792） 710 FY Ended March FY Ending March FY Ended March FY Ending March 31, 2018 31, 2019 31, 2018 31, 2019 Construction-related Environment-related
Slide 11: 3.3 Recent prevalence of the Iq System
3. Sales business 3.3 Recent prevalence of the Iq System Demands for the next-generation scaffolding got into full swing, and sales strategies contributed to positive outcome. Sales performance of the Iq system （Unit:million yen） 2,510 1,975 1,538 1,634 Iq System :4,760,000㎡ 777 （2,760,000㎡ [assets
Slide 12: 4.1 Rental Business
4. 7.Rental Business 4.1 Comparison with the previous year Net sales Segment profit +449 Net sales +177 Increased by 728 million yen. Shipment for civil engineering related +551 projects maintained steady growth, also (158) driven by demands for the Iq System, and more shipment of rental equipment t
Slide 13: 4.2 Trend of average equipment utilization rates
4. Rental Business 4.2 Trend of average equipment utilization rates 70.5% Higher efficiency in operation of 68.0% 67.4% equipment helped maintaining high 64.0% 62.2% utilization rate 59.0% 59.2% 60.3% Due to the fact that overall volume of civil engineering related construction work was 54.6% 54.8%
Slide 14: 4.3 Ratio of Sales by Area
4. Rental Business 4.3 Ratio of Sales by Area Among those achieving higher revenues than the previous year, Kansai and Chubu areas in particular achieved higher net sales for civil engineering related construction work. FY Ended March 31, 2017 FY Ended March 31, 2018 2Q FY Ended March 31, 2019 3.6%
Slide 15: 5.1 Overseas business
5. Overseas business 5.1 Comparison with the previous year Net sales Segment profit Net sales +1,580 (73) (79) Although export to Japan decreased, Hory Korea achieved higher revenues thanks to order-taking for large-scale sales of solar panel mounting frames. Segment profit 4,020 73 Decreased by 70
Slide 16: 5.2 Sales Ratio by Segment
5. Overseas business 5.2 Sales Ratio by Segment Proportion of overseas business segment got larger due to increased revenues of the subsidiary in Korea, whereas that of sales business segment got smaller due to decreased internal sales. Overseas Overseas Overseas Business Business 12.3% Business 14.
Slide 17: 6. Change in Consolidated Balance Sheet
6. Change in Consolidated Balance Sheet Investments and other assets Intangible assets Property, plant and equipment Current assets Net assets Non-current liabilities Current liabilities 52,760 52,813 54,323 【Assets】 50,091 Current assets Cash & Deposit : 5,569(Increase/419) 22,237 22,009 20,557 20,
Slide 18: 7. Cash flow statement
7. Cash flow statement （Unit:million yen） 【Cash flows from operating activities】 2Q FY Ending March 2Q FY Ending March 31, 2018 31, 2019 Profit before income taxes : 1,120（Increase/281） Net income before income Depreciation : 2,361（Increase/42） 838 1,120 taxes Purchase of assets for lease : (870)（De
Slide 19: 8.1 Three-year performance: Sales business
8. Three-year performance 8.1 Sales business Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Fiscal Year Ended March 31, 2019 （Unit:million yen） Segment sales Segment profit Segment profit ratio 4,611 4,185 4,040 3,887 3,652 3,631 3,764 15.8% 17.3% 2,877 15.1% 12.9% 11.9% 11.2% 2,5
Slide 20: 8.2 Three-year performance: Rental Business
8. Three-year performance 8.2 Rental Business Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Fiscal Year Ended March 31, 2019 （Unit:million yen） Segment sales Segment profit Segment profit ratio 6,173 5,610 5,908 5,011 5,538 5,490 5,230 5,228 5,312 5,279 12.3% 13.3% 11.7% 8.5% 10.
Slide 21: 8.3 Three-year performance: Overseas business
8. Three-year performance 8.3 Overseas business Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Fiscal Year Ended March 31, 2019 （Unit:million yen） Segment sales Segment profit Segment profit ratio 1,913 1,991 2,028 1,263 1,389 1,405 1,006 930 997 1,123 5.6% 3.7% (0.4)% 0.4% 1.6% (
Slide 22: 9. Consolidated performance forecast (Cumulative period)
9. FY Ending March 31, 2019 Consolidated performance forecast（Cumulative period） All the business segments of Sales/Rental/Overseas have maintained steady growth and it is anticipated that such situation would continue in the second half as well with no problem. Nevertheless, the Company has not ame
Slide 23: 10. Status of shareholder return
10. Status of shareholder return FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ending March 31, 2019 2016 2017 2018 (Forecast) Dividend 10 yen 10 yen 11 yen 11 yen 内訳）1Q － － － － 2Q 3.5 yen 3.5 yen 4.0 yen 4.0 yen 3Q － － － － 4Q 6.5 yen 6.5 yen 7.0 yen 7.0 yen Total amount of 442 million
Slide 24: Forecasts and strategies for the future
Forecasts and strategies for the future November 21, 2018 SRG TAKAMIYA Co., Ltd. Grand Front Osaka, Tower B, 27F, 3-1 Ofuka-cho, Kita-ku, Osaka 530-0011, Japan
Slide 25: 1.1 Vision and Profit Target
1. Medium-Term Management Plan 2018 1.1 Vision and Profit Target Create new value through transformation and aim to become a corporate Vision group that drives qualitative development of the industry Fiscal Year Ending March 31, 2021 Sales target Consolidated net sales 500 billion yen Fiscal Year En
Slide 26: 2. Future prospects
2. Future prospects Domestically, the Company aims at increasing earnings by reduced investment and higher operational efficiency, and enhancement of new business and overseas business. ▶Northern Osaka Earthquake（June） ▶Consumption tax to 10%（Oct.） ▶Tokyo Olympics（July） ▶torrential rain in western J
Slide 27: 3. Business strategy image
3. Business strategy image ・Enhanced sales of the Iq System ・ Expansion of temporary equipment rental ・Agribusiness, Structural equipment ・New product development Domestic Sales Overseas Sales ・Diffusion of Next Generation Scaffolds ・ Manufacture and sale of solar panel stand ・ Mother factory for pr
Slide 28: Customer needs, Market trend
3. Business strategy image TAKAMIYA Domestic and international Gunma Factory customers Customer needs, Market trend Product development Gifu factory ・Iq System Vietnam Factory ・Oct-brace Korea factory Contract manufacturing * optimizing production bases Larger market shares in Japan and Southeast As
Slide 29: TAKAMIYA BRAND
3. Business strategy image Firstly rental business segment enters into markets in Vietnam, Korea and Philippines. TAKAMIYA Larger market shares of TAKAMIYA products BRAND in Southeast Asia Subsequently, sales business segment starts to supply products to these markets. November 21, 2018 Page 29
Slide 30: 4. Forecasts and policy for the future
4. Forecasts and policy for the future To capture demands caused by shifting from framework scaffolding to the next generation scaffolding (sales target of 11 billion yen in 3 years) Sales To establish agri-business and structural equipment business, develop new products, and create new business To
Slide 31: Reference materials
Reference materials November 21, 2018 SRG TAKAMIYA Co., Ltd. Grand Front Osaka, Tower B, 27F, 3-1 Ofuka-cho, Kita-ku, Osaka 530-0011, Japan
Slide 32: 1. Sales business
1. Sales business Construction-related Construction-related Construction-related Construction-related Joint(clamp) Next generation scaffolding Hanging type scaffolding Safety member General-purpose equipment used in （Iq system) (Spider Panel) Preceding handrails, any work sites New scaffolding with
Slide 33: 2. Sales business
2. Sales business Architecture Bridge Underground work Plant High-rise buildings, high-rise Expressways, railroads, elevated Shield tunneling construction such Construction and maintenance of condominiums, warehouses, highways, bridges, etc. as subways, pipe lines, and utility treatment plants, inci
Slide 34: 3. Overseas bases and business activities
3. Overseas bases and business activities Hory Korea Co.,Ltd HORY VIETNAM Co.,Ltd DIMENSION-ALL INC. * The Philippines Carrying out manufacture/sales/rental of Carrying out manufacture of clamps for Carrying out sales/rental of formwork and temporary equipment for construction works Japanese markets
Slide 35: 4. Change in Domestic Construction Investment
4. Change in Domestic Construction Investment * Source: Research Institute of Construction and Economy, "Quarterly Outlook of Construction and Macro Economy", June 2018 2017 Up 4.6％ 2018 Up 2.1％(Forecast) 560,200 571,700 535,700 512,984 511,410 509,828 452,914 169,900 177,700 429,649 419,282 432,923
Slide 36: 5. Changes in invested amount for domestic building reform/renewal
5. Changes in invested amount for domestic building reform/renewal * Source: Ministry of Land, Infrastructure Transport and Tourism, "Estimate of Construction Investment, FY2018", June 2018 Up 4.1％ YoY 127,000 131,000 125,800 117,800 110,200 99,300 39,300 41,500 38,400 90,300 40,500 83,500 84,800 77
Slide 37: 6. Change in Domestic Construction Investment
6. Change in Domestic Construction Investment Government investment Private investment Renovation and renewal investment （Unit:billion yen） 400,000 341,100 350,000 329,800 311,900 297,076 300,000 287,376 282,794 250,000 225,608 228,616 223,800 230,400 230,600 212,752 200,000 150,000 127,000 125,800
Slide 38: 7. Utilization rate of construction materials and equipment
7. Change in utilization rate of construction materials and equipment and in net sales of 50 companies in the scaffolding and construction materials leasing business （Unit:%） （Unit:million yen） Net sales Framework Scaffolding Falsework Members 80.0 25,000 70.0 20,000 60.0 50.0 15,000 40.0 10,000 30.
Slide 39: 8. Change in Financial Results
8. Change in Financial Results Net sales Operating income 9,783 9,190 8,828 8,783 737 4Q 995 9,460 9,049 3Q 9,072 8,764 667 806 2Q 11,008 861 299 1Q 9,377 9,114 796 8,436 9,010 586 1,121 872 693 831 8,761 9,725 545 7,925 7,791 8,142 434 253 272 259 255 FY Ended FY Ended FY Ended FY Ended FY Ending F
Slide 40: 9. Change in Overseas Market
9. Change in Overseas Market (Billion dollars) Country (Million people) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Nominal GDP 6,203 5,155 4,850 4,394 4,949 4,872 5,167 5,362 5,498 5,641 Japan Population 127 127 127 126 126 126 126 126 125 125 Nominal GDP 1,222 1,305 1,411 1,382 1,411 1,498 1
Slide 41: 10. Change in Consolidated Financial Results
10. Change in Consolidated Financial Results FY Ended FY Ended FY Ended FY Ended FY Ended March FY Ended March FY Ended March FY Ended March FY Ended March FY Ended March FY Ended March March 31, March 31, March 31, March 31, 31, 2008 31, 2009 31, 2010 31, 2011 31, 2012 31, 2013 31, 2018 2014 2015 2
Slide 42: 11. Change in Consolidated Balance Sheet
11. Change in Consolidated Balance Sheet FY Ended March FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March FY Ended March FY Ended March FY Ended March FY Ended March 31, (Unit:million yen) 31, 2008 2009 2010 2011 2012 2013 31, 2014 31, 2015
Slide 43: 12. Quarterly Change in Results by Segment (Per Quarter)
12. Quarterly Change in Results by Segment (Per Quarter) （Unit:million yen） FY Ended March 31, 2018 FY Ending March 31, 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Segment sales 3,887 3,631 2,522 2,409 2,877 3,764 － － business (Of which) Inter-segment sales 2,804 2,902 2,531 2,428 2,853 3,702 － － Segment pro
Slide 44: 13. Quarterly Change in Results by Segment (Cumulative Period)
13. Quarterly Change in Results by Segment (Cumulative Period) （Unit:million yen） FY Ended March 31, 2018 FY Ending March 31, 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Segment sales 3,887 7,518 10,040 12,449 2,877 6,641 － － business (Of which) Inter-segment sales 2,804 5,707 8,239 10,667 2,853 6,555 － － Se
Slide 45: 14. Stock Price of SRG TAKAMIYA (2445:Tokyo)
100,000 200,000 300,000 400,000 500,000 600,000 0 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Average daily trading volume Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 14. Stock Price of SRG TAKAMIYA (2445:Tokyo) Apr-14 Jul-14 Oct-14 Jan-15 A
Slide 46: 15. IR Contact
15. IR Contact 社名 : SRG TAKAMIYA Co., Ltd. Grand Front Osaka, Tower B, 27F, 3-1 住所 : Oofuka-cho, Kita-ku, Osaka, 530-0011, Japan URL : https://www.srg.jp/en/ (For Investor) : https://www.srg.jp/en/ir/ Japan Phone : +81-(0)6-6375-3918 FAX : +81-(0)6-6375-8827 CONTACT : Takashi Kawabata, PR / IR Secti
Slide 47: SRG Takamiya
G SRG Takamiya SUPER RENTAL GROUP