Takamiya Co., Ltd. · TSE:2445
Takamiya — SRG TAKAMIYA — Q2 FY2018 Earnings Presentation
45 slides from Takamiya's earnings presentation, November 2017
Slide 1: Results Briefing Materials for Q2 FY Ending March 2018
SRG TAKAMIYA Co., Ltd. Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 31, 2018 1
Slide 2: Topics
Topics Sep. 1, 2017: Announced "Notice of Short Form Merger". Effective from January 1, 2018, the Company will take over its wholly-owned subsidiary, Hory Corporation (head office: 3-10-5, Nihonbashi, Chuo-ku, TOKYO). Inter-segment sales and reason for take over will be as described later in this
Slide 3: Consolidated Financial Results (Cumulative Period)
Consolidated Financial Results (Cumulative Period) 2Q FY Ending March 31, 2018 2Q FY Ending March 31, 2018 2Q FY Ended March 31, 2017 Consolidated Results Forecast（Non-disclosure） Results Results % change （Unit:million yen） (YoY) Sales ratio Sales ratio Sales ratio Net sales 18,280 － 17,875 － 17,520
Slide 4: 2Q FY Ending March 31, 2018: General Review
2Q FY Ending March 31, 2018: General Review Actual result of both sales and rental businesses was lower than the plan, whereas overseas subsidiaries marked surpluses. Sales/Rental businesses Overseas business Although slightly lower than as planned, steady All overseas subsidiaries marked surplus. S
Slide 5: Factors which caused net sales being less than planned
Factors which caused net sales being less than as planned at the beginning of the period （単位:百万円） 【Sales business】 18,000 +616 17,875 • Although sales of the Iq System has 17,520 (745) maintained steady growth, other 17,000 +575 construction-related sales decreased. (91) • Sales of used equipment de
Slide 6: Factors which caused operating income being less than planned
Factors which caused operating income being less than as planned at the beginning of the period （単位:百万円） 1,000 966 (248) 【Sales business】 • Although the Iq System has shown steady 900 growth, decrease in net sales caused lower profit. +367 804 • Affected by decreased sales of used equipment 800 (455
Slide 7: Change in Consolidated Balance Sheet
Change in Consolidated Balance Sheet Investments and other assets Intangible assets Property, plant and equipment Current assets Net assets Non-current liabilities 【Assets】 52,760 51,243 Current assets （単位:百万円） 50,091 Decrease in Cash & Deposit:1,172million yen 43,520 Decrease in Notes and accounts
Slide 8: Sales business (Per Quarter)
Sales business (Per Quarter) Fiscal Year Ended March 31, 2017 Fiscal Year Ending March 31, 2018 (Unit : million yen) Segment sales Segment profit Segment profit resio 4,611 4,185 4,040 3,887 3,652 3,631 15.8% 12.9% 17.3% 10.6% 11.9% 11.2% 386 729 541 700 462 405 % change (YoY) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 9: Sales business: Net Sales by Field
Sales business : Net Sales by Field (Unit: million yen) 11,767 1,812 1,842 2,953 1,069 406 453 4Q 2,881 5,419 228 515 946 502 3Q 288 470 680 3,336 2,647 406 423 551 301 2Q 319 259 2,597 2,772 234 485 523 336 379 211 1Q FY Ended FY Ending FY Ended FY Ending FY Ended FY Ending FY Ended FY Ending March
Slide 10: Sales business: Recent prevalence of the Iq System
Sales business : Recent prevalence of the Iq System Sales of the Iq System maintained steady growth. Further growth in the future would be expected in the context of raised awareness of safety due to increased number of accidents. Recent prevalence of the Iq System（Unit : m2） 424 * Calculated as tha
Slide 11: Rental Business (Per Quarter)
Rental Business (Per Quarter) Fiscal Year Ended March 31, 2017 Fiscal Year Ending March 31, 2018 （Unit:million yen） Segment sales Segment profit Segment profit resio 5,538 6,173 5,490 5,011 5,230 5,228 12.3% 13.3% 7.5% 7.1% 7.9% 678 823 3.6% 377 388 188 412 % change (YoY) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Seg
Slide 12: Rental Business: Change in Shipment Value of Rental Equipment
Rental Business : Change in Shipment Value of Rental Equipment Amount of equipment on-site was substantially lower than the previous year, whereas delivery is increasing towards busy season. Shipment value of Shipment value of rental equipment rental equipment (Apr.) Great East Japan Earthquake * De
Slide 13: Rental Business: Ratio of Sales by Area
Rental Business: Ratio of Sales by Area 2Q FY Ended March 31, 2017 2Q FY Ending March 31, 2018 3.5% 3.3% 11.4% Tohoku 25.2% 13.4% Kanto 35.4% Chubu 39.4% Kansai 13.5 Kyusyu 44.6% % 10.2% 【Example of sites with orders received】 ・Renovation of a power plant ・Renovation of a public housing ・Renovation
Slide 14: Rental business: Iq system, Change in value of holdings
Rental business: Iq system, Change in value of holdings Both value of holdings and utilization rate are increasing, and higher utilization rate is expected also during the current term. Amount held by Iq operation rate 61.9% 59.0% 56.8% 54.8% 45.7% 8,348 8,726 8,923 6,299 3,191 （Unit : Million yen）
Slide 15: Overseas business (Per Quarter)
Overseas business ( Per Quarter) Fiscal Year Ended March 31, 2017 Fiscal Year Ending March 31, 2018 (Unit : million yen) Segment sales Segment profit Segment profit resio 1,263 1,389 1,006 997 1,123 930 5.6% 78 (2.5)% (0.4)% (25) (8.2)% (76) (3.2)% (31) (4.5)% (56) (4) % change (YoY) 1Q 2Q 3Q 4Q 1Q
Slide 16: Overseas business
Overseas business Sales Ratio by Segment Hory Korea Co., Ltd. • Enhanced management control regime 12.3 contributed to the black figure. • External sales has steadily increased, mainly due % to solar-related demand. 36.7% HORY VIETNAM Co., Ltd. 2Q FY Ending March 31, 2018 • Products for Japanese mar
Slide 17: Financial effect of merging Hory
Financial effect of merging Hory Inter-segment sales of Sales business decreases significantly. * Source : Summary of Consolidated Financial Results for the Six Months Ended September 30, 2017 17
Slide 18: Forecasts
Forecasts 18
Slide 19: SRG Takamiya Group has both stock & flow
SRG Takamiya Group has both stock & flow By combining stock-type business (rental business) which has already provided stable profitability with flow-type business (sales business) having prospect of future growth in spite of variability and with overseas business having potential of growth, the Gro
Slide 20: Purpose of merging Hory
Purpose of merging Hory (restructuring to expand/enhance flow-type business) Realizing the basic management policy, "Strengthening developmental power that is essential for 'Creation of high-value-added products and growing business'". By combining stock-type business which accelerates shift to a ma
Slide 21: Importance of various roles of Construction division
Importance of various roles of Construction division (demand/synergy arising from the division) 【Scaffolding construction】 • Construction is managed by the Company, Scaffolding Development/ while equipment and construction work are construction manufacturing provided by our cooperative contractors w
Slide 22: Advantages of expanding overseas business
Advantages of expending overseas business Thailand SRG Global Holdings ※Non-consolidated subsidiary Myanmar Cadian Myanmar CAD outsourcing ※Non-consolidated subsidiary South Korea Hory Korea Co., Ltd Manufacture・Sales・Rental Philippines DIMENSION-ALL Inc. Vietnam Sales・Rental Cadian Vietnam Vietnam
Slide 23: Forecasts and objectives for the future
Forecasts and objectives for the future More repeated order for the Iq System, a next-generation scaffolding. Enhance sales activities targeting new customers. Sales Increase number of Greenhouses, named "G-Castle". Delay in public investment and large civil engineering projects. Increased shipment
Slide 24: Changes in EBITDA and Investment Performance
Changes in EBITDA and Investment Performance It would be the time to have the return for the investment of rental equipment. EBITDA Investment Performance （Unit:million yen） （Unit:million yen） Operating income depreciation Capital Investments Investments in assets for lease 9,468 7,120 6,932 6,421 6
Slide 25: Consolidated performance forecast
FY Ending March 31, 2018 Consolidated performance forecast（Cumulative period） (Unit : million yen) FY Ended March 31, 2018 FY Ended March 31, 2017 Forecast Results % change (YoY) % change (YoY) Net sales 38,300 4.2% 36,763 7.0% Operating income 2,850 17.3% 2,429 (18.6)% Ordinary income 2,600 11.3% 2
Slide 26: Status of shareholder return
Status of shareholder return FY Ending March 31, FY Ended March FY Ended March 31, FY Ended March 31, FY Ended March 31, 2018 31, 2014 2015 2016 2017 (Forecast) Dividend ¥13 ¥16 ¥10 ¥10 ¥11 1Q － － － － － 2Q ¥5 ¥7 ¥3.5 ¥3.5 ¥4.0 3Q － － － － － ¥9 4Q ¥8 * Ordinary dividend ¥6.5 ¥6.5 ¥6.5 ¥7.0 Commemorati
Slide 27: Reference materials
Reference materials 27
Slide 28: 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 729,030,000 yen Number of employees Consolidated : 1,177; Non-consolidated : 507 (As of end-September, 2017) Regist
Slide 29: History
History • 1969 Jun. Founded as Shin Kansai Co., Ltd., currently SRG TAKAMIYA CO., LTD., in Osaka City. • 1990 Mar. Established Iwata Ltd. (currently IWATA Co., Ltd., a consolidated subsidiary) in Wakayama Prefecture. • 1994 Jul. Established Rental Nagakita Ltd. (currently SHINKEN NAGAKITA Co., Ltd.,
Slide 30: Business Diagram
Business Diagram Overseas Manufacture and sales of Manufacture and sales of Japanese and overseas manufacturers and manufacturers temporary equipment and materials Products emporary equipment and materials distributors of temporary equipment and materials, and distributors of general trading company
Slide 31: Sales business
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, baseboards, any work sites New scaffold
Slide 32: Rental business
Rental 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, incine
Slide 33: Overseas bases and business activities
Overseas bases and business activities Hory Korea Co.,Ltd HORY VIETNAM Co.,Ltd DIMENSION-ALL INC. ※The Philippines Manufacture and sales of temporary Manufacture of clamps for Japanese Sales/rental of formwork and equipment for construction work; markets; Manufacture of clamps falsework for construc
Slide 34: Change in Domestic Construction Investment
Change in Domestic Construction Investment Source: Research Institute of Construction and Economy, "Quarterly Outlook of Construction and Macro Economy", October 2017 FY 2017 Up 1.4% FY 2018 Down 3.2% (Forecast) 51,298 51,141 50,820 53,230 51,550 45,291 12,948 14,158 16,000 14,960 15,920 Private non
Slide 35: Changes in invested amount for domestic building reform/renewal
Changes in invested amount for domestic building reform/renewal Source: Ministry of Land, Infrastructure Transport and Tourism, "Estimate of Construction Investment, FY2017", June 2017 UP 5.1% YoY 16,070 15,290 11,780 5,810 5,550 11,020 9,930 9,030 4,050 4,780 Housing 3,840 3,330 investment 9,740 10
Slide 36: Change in Domestic Construction Investment
Change in Domestic Construction Investment （Unit:billion yen） Government investment Private investment Renovation and renewal investment 35,000 32,730 31,380 29,700 28,740 28,279 30,000 25,574 25,000 22,560 22,861 22,230 21,120 21,090 19,717 20,000 15,290 16,070 15,000 11,780 11,020 9,930 9,030 10,0
Slide 37: Utilization rate of construction materials and equipment
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） 80.0 Net sales Framework Scaffolding Falsework Members 25,000 70.0 20,000 60.0 50.0 15,000 40.0 10,000 30.0 2
Slide 38: Change in Financial Results
Change in Financial Results （Unit:million yen） Net sales Operating income 36,763 34,261 34,350 3,098 2,983 9,783 737 8,828 8,783 995 2,429 667 9,460 806 4Q 9,072 8,764 17,875 3Q 861 796 2Q 9,377 9,114 8,436 9,010 1,121 804 1Q 872 693 545 7,925 7,791 8,142 8,761 434 253 272 259 FY Ended March FY Ende
Slide 39: Change in Overseas Market
Change in Overseas Market (Billion dollars) Country (Million people) 2011 2012 2013 2014 2015 2016 2017 Nominal GDP 6,157 6,203 5,155 4,849 4,382 4,939 4,841 Japan Population 128 128 127 127 127 127 126 Nominal GDP 1,202 1,223 1,306 1,411 1,383 1,411 1,498 South Korea Population 50 50 50 51 51 51 51
Slide 40: Change in Consolidated Financial Results
Change in Consolidated Financial Results FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, (Unit: million yen) 2012 2013 2014 2015 2016 2017 Net sales 23,201 28,113 32,443 34,261 34,350 36,763 Gross Profit 7,202 8,196 9,832 10,356 11,29
Slide 41: Change in Consolidated Balance Sheet
Change in Consolidated Balance Sheet FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, FY Ended March 31, (Unit: million yen) 2012 2013 2014 2015 2016 2017 Current assets 12,202 13,725 15,892 18,213 19,769 20,557 Non-current assets 20,269 20,262 21,353 25
Slide 42: Quarterly Change in Results by Segment (Per Quarter)
Quarterly Change in Results by Segment (Per Quarter) (Unit: million yen) Fiscal Year Ended March 31, 2017 Fiscal Year Ending March 31, 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Segment sales 3,652 4,611 4,185 4,040 3,887 3,631 － － business (Of which) Inter-segment sales 2,561 3,491 2,924 3,558 2,804 2,902
Slide 43: Quarterly Change in Results by Segment (Cumulative Period)
Quarterly Change in Results by Segment (Cumulative Period) (Unit: million yen) Fiscal Year Ended March 31, 2017 Fiscal Year Ending March 31, 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Segment sales 3,652 8,263 12,448 16,489 3,887 7,518 － － business (Of which) Inter-segment sales 2,561 6,052 8,977 12,535 2,8
Slide 44: Stock Price of SRG TAKAMIYA (2445:Tokyo)
Stock Price of SRG TAKAMIYA (2445:Tokyo) Average daily trading volume Stock price 600,000 • January 2015: 2-for-1 stock-split 1,200 • July 2013: Disposal of treasury shares • April 2013: 2-for-1 stock-split 500,000 1,000 Aug. 2016 Treasury stock acquisition 400,000 800 300,000 600 200,000 400 100,00
Slide 45: Contact: PR / IR Section, SRG TAKAMIYA
IRコンタクト Contact: Takashi Kawabata, PR / IR Section, Corporate Planning Division, SRG TAKAMIYA Co., Ltd. https://www.srg.jp/en/ir/index.html (English) URL: https://www.srg.jp/en/index.html (English) E-mail: ir@srg.jp Address: Grand Front Osaka, Tower B, 27F, 3-1 Oofuka-cho, Kita-ku, Osaka, 530-0011,