Tadano Ltd. · TSE:6395
Tadano — FY2023 Earnings Presentation
37 slides from Tadano's earnings presentation, March 2024
Slide 1: FY 2023 Financial Explanatory Briefing
FY 2023 Financial Explanatory Briefing - FY 2023 Financial Results and Mid-Term Management Plan (24-26) March 2024 Tadano Ltd.
Slide 2: Notes
<Notes> ⚫ Forward-looking statements contained in this material are based on information available as of the date this report was prepared. A variety of factors may cause actual results to differ from projections. ⚫ This is an English translation of the presentation material made in the Japanese lan
Slide 3: FY 2023 Results and FY 2024 Forecast
FY 2023 Results and FY 2024 Forecast 3
Slide 4: FY 2023 Results and FY 2024 Forecast
FY 2023 Results and FY 2024 Forecast (Unit: millions of yen) FY 2023 Results: Jan.-Dec., 2024 • Net sales and income increased. Net sales reached Jan.-Dec., 2023 Percent Forecast Change record high. Amount Percentage Amount Percentage • Despite increases in raw material prices and others, Net sales
Slide 5: Tadano Group Mid-Term Management Plan (24-26)
Tadano Group Mid-Term Management Plan (24-26) Reaching new heights - Entering a new era - 5
Slide 6: Table of Contents
Table of Contents 1. Mid-Term Management Plan (21-23) Review 2. Mid-Term Management Plan (24-26) (1) Tadano Group's Corporate Philosophy (2) Medium-Term Direction (3) Mid-Term Management Plan (24-26) Basic Policy 3. Basic Strategy (1) Advancing decarbonization (2) Venture into new areas (3) Manufact
Slide 7: 1. Mid-Term Management Plan (21-23) Review
1. Mid-Term Management Plan (21-23) Review 7
Slide 8: Mid-Term Management Plan (21-23) Review: Performance
1. Mid-Term Management Plan (21-23) Review (1/2) 〈Performance〉 ◼ Sales reached a record high due to future-oriented investment effects, improved selling prices, and the impact of Japanese yen depreciation. ◼ Operating income missed the target due to production constraints caused by severe procuremen
Slide 9: Mid-Term Management Plan (21-23) Review: Major Initiatives
1. Mid-Term Management Plan (21-23) Review (2/2) 〈Major Initiatives〉 ◼ Implementing strategy for growth European Operations Reorganization ESG/SDG Initiatives ⚫ Developed and launched 6 new global models and ⚫ Efforts to medium- to long-term environmental targets introduced Japanese versions for 3 e
Slide 10: 2. Mid-Term Management Plan (24-26)
2. Mid-Term Management Plan (24-26) 10
Slide 11: Tadano Group's Corporate Philosophy
2. (1) Tadano Group's Corporate Philosophy 〈Corporate Philosophy〉 Creation, Contribution, Cooperation 〈Vision〉 Pursuing Further Excellence for the World and the Future 〈Core Values〉 Safety, Quality, and Efficiency based on Compliance In 1955 In 2023 11
Slide 12: Medium-Term Direction: Business Portfolio
2. (2) Medium-Term Direction 〈Business Portfolio〉 ◼ Strengthening existing businesses and developing new businesses Sales ＝Medium-term direction of each area Bubble size: Profit amount Secure stable profit through solidification Improve product strength and profitability RT Global expansion by acqui
Slide 13: Mid-Term Management Plan (24-26) Basic Policy
2. (3) Mid-Term Management Plan (24-26) Basic Policy ◼ As a leading company in the industry, we provide new value for customer’s safety and global environment. Slogan Major KPIs Cash Allocation Sales: 330 billion yen Future-oriented invest.: 30+α billion yen Reaching new heights Operating income: 30
Slide 14: 3. Basic Strategy
7 ws TADANO 3. Basic Strategy
Slide 15: Advancing decarbonization (1/2): Expand environmentally friendly products
3. (1) Advancing decarbonization (1/2) 〈Expand environmentally friendly products〉 ◼ Promoting Tadano Green Solutions Global promotion of electrified RT “EVOLT” Enhance decarbonized product lineup • Japan in 2023, North America in 2024, and then • e-PACKs, EV truck-mounted aerial work platforms, Euro
Slide 16: Advancing decarbonization (2/2): Power source direction toward net-zero
3. (1) Advancing decarbonization (2/2) 〈Expand environmentally friendly products〉 ◼ Medium- to long-term direction of power sources toward achieving net-zero emissions by 2050 E/G Output [kW] ⚫ Dots: represents current lineup with horizontal axis indicating size (GVW) and vertical axis indicating in
Slide 17: Venture into new areas (1/2): Global promotion of AWP
3. (2) Venture into new areas (1/2) 〈Global promotion of AWP〉 ◼ Accelerating growth of AWP business with acquisition of Nagano (completed on February 1st) • The new company name is Tadano Utilities Ltd. As a group, we will drive <Tadano’s flagship truck-mounted type > the strategy forward • Integrat
Slide 18: Venture into new areas (2/2): Changing the "common"
3. (2) Venture into new areas (2/2) 〈Business expansion by changing the "common"〉 ◼ Initiatives to change the “common” of existing products and know-how • Providing a variety of approaches for products with high prices or limited production volumes, such as environmentally friendly products or high-
Slide 19: Manufacturing reforms that leverage strengths (1/2)
3. (3) Manufacturing reforms that leverage strengths (1/2) 〈Optimization of development and manufacturing to maximize profitability〉 ◼ Achieving optimal manufacturing by leveraging strengths of development and production bases in Japan, Germany, and the United States ◼ Overcoming challenges of multi
Slide 20: Manufacturing reforms (2/2): AT production transfer and European turnaround
3. (3) Manufacturing reforms that leverage strengths (2/2) 〈AT production transfer and turnaround of European Operations〉 ◼ Production system that maximizes German and Japanese strengths ✓ Focusing European operations on their strengths and leverage group synergies • Product development and manufact
Slide 21: Establishing foothold (1/4): Sales leveraging regional strengths
3. (4) Establishing foothold to support transformation (1/4) 〈Sales leveraging regional strengths〉 Europe Pan-America • Strengthening competitive ATs and rechallenging RTs • Establishing firm market position • Development of environmentally friendly products • Expansion of environmentally friendly p
Slide 22: Establishing foothold (2/4): Strengthening service capabilities
3. (4) Establishing foothold to support transformation (2/4) 〈Strengthening service capabilities〉 ◼ Striving for long-term customer loyalty (towards recirculating business) Reliability to use Long life to use • Strengthening condition-based maintenance • Guarantee of machine life and improvement in
Slide 23: Establishing foothold (3/4): Automation and energy saving in production
3. (4) Establishing foothold to support transformation (3/4) 〈Automation and energy saving in production〉 ◼ Overcoming challenges in worker shortage and succession of technical know-how Automation and energy saving Guarantee safety and quality in manufacturing process through promotion of IT • Autom
Slide 24: Establishing foothold (4/4): Strengthening human resources base
3. (4) Establishing foothold to support transformation (4/4) 〈Strengthening human resources base linked to management strategy〉 <MTP Strategy> <Talents Tadano is looking for> • Advancing decarbonization ✓ Personnel with a high level of expertise and who promote innovative ideas • Venture into new ar
Slide 25: 4. Initiatives for Sustainable Growth
4. Initiatives for Sustainable Growth 25
Slide 26: Management in consideration of capital cost and stock price (1/2)
4. (1) Management in consideration of capital cost and stock price (1/2) Priority policies Initiatives MTP target Management • ROIC as KPI taking into consideration of • Business portfolio management capital cost • Investment decisions based on WACC • Ensuring financial soundness (balance between eq
Slide 27: Management in consideration of capital cost and stock price (2/2)
4. (1) Management in consideration of capital cost and stock price (2/2) ◼ Allocating funds to future-oriented investments for growth and stable management and returning surplus funds to shareholders on an ongoing basis (1) Cash generated from business activities will be allocated to future-oriented
Slide 28: Addressing sustainability issues (1/2)
4. (2) Addressing sustainability issues (1/2) ◼ Under the Corporate Philosophy of “Creation, Contribution, and Cooperation,” we are committed to contributing to preservation of the global environment and realization of a sustainable society. We will pursue further excellence for the world and the fu
Slide 29: Addressing sustainability issues (2/2)
4. (2) Addressing sustainability issues (2/2) ◼ The Tadano Group set long-term environmental targets for 2030 compared to 2019 baseline of a 25% reduction in CO2 emissions from business activities, a 35% reduction in CO2 emissions from product, and a 50% reduction in industrial waste emissions from
Slide 30: 2040 Envisioned by Next Generation Leaders
5. 2040 Envisioned by Next Generation Leaders* *”2040 Envisioned by Next Generation Leaders” is a cross-company project involving 22 employees from next generation at Tadano. Through various measures, they have brainstormed ideas for more convenient mechanisms and products, envisioning future of Tad
Slide 31: 2040 Envisioned by Next Generation Leaders
2040 Envisioned by Next Generation Leaders* Contributing to global environmental Benefits of Lifting Equipment for all conservation and realization of sustainable society Prevention of load collapse Island landing system Telescopic belt conveyor Providing operations remotely High mobility marine cra
Slide 32: References
7 TADANO References 32
Slide 33: Mid-Term Management Plan (24-26) Demand Forecast
References: Mid-Term Management Plan (24-26) Demand Forecast ◼ Global demand is expected to remain high. • Increase in Chinese manufacturers’ exports has calmed down, but it remains high. • Demand for mobile cranes will remain steady, although it varies by region. Global Demand (excluding China) * F
Slide 34: Demand Forecast: Demand trend by region
References: Mid-Term Management Plan (24-26) Demand Forecast ◼ Expand ATs through reorganization of European operations and increase RT’s share in “Other” region Demand trend by region (excluding China) Japan: On par with FY 2023 North America: Conservative outlook due to presidential election • RT
Slide 35: Mid-Term Management Plan (24-26) Business Performance Forecast
References: Mid-Term Management Plan (24-26) Business Performance Forecast Net sales +50 billion Operating income +12 billion • +30 billion yen by existing businesses due to sales price • Expenses increase due to future-oriented investment, etc. improvements, AT sales increase and others • Operating
Slide 36: References: Highlights
References: Highlights EVOLT eGR-250N Awarded at the 66th Best 10 "Tadano Group Day 1 Ceremony” Held at New Products Main Awards Nagano Industry At the 66th Best 10 New Products Awards sponsored by Nikkan Kogyo On February 1, 2024, Tadano acquired Nagano Industry Co., Ltd. Shimbun*, the Tadano EVOLT
Slide 37: Reaching new heights - Entering a new era -
Reaching new heights - Entering a new era -