Takamiya Co., Ltd. · TSE:2445
Takamiya — FY2018 Earnings Presentation
52 slides from Takamiya's earnings presentation, May 28, 2019
Slide 1: Results Briefing Materials for the Fiscal Year Ended March 31, 2019
Results Briefing Materials for the Fiscal Year Ended March 31, 2019 Director and Managing Executive Officer Hideki Yasuda May 28, 2019 Notice: This document is an excerpt translation of the original Grand Front Osaka Tower-B Bldg. 27F, 3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan Japanese document
Slide 2: Company Overview of Takamiya Co., Ltd.
Company Overview of Takamiya Co., Ltd. Trade name Takamiya Co., Ltd. Incorporation June 21, 1969 Representative Representative director, Kazumasa Takamiya Capital 732,130,000 yen Number of employees Consolidated : 1,204; Non-consolidated : 668 (As of end-December, 2019) Registered head office Grand
Slide 3: Change in company name
Change in company name Logo and corporate name changed The Company has set out its vision as "To create new values through transformation, towards a company group leading th e industry-wide qualitative development", and changed its co mpany name to "TAKAMIYA Co., Ltd." effective from April, 2 019, a
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 temporary equipment manufacturers, trade firms, etc.) housing manufacturers, agricultural corporations, etc.) Sale・Rental・Construction Purchase Hory Korea Co., Ltd HORY VIETNAM Co., Ltd. Suppliers (raw materials manufacturers, Sale Sale・ Rental・Construction Custome
Slide 6: Topics: Notices on anniversary dividend and officers
1. TOPIX Notice Regarding 50th Anniversary May 9, 2019 Commemorative Dividend Notice Regarding Movement of Officers Notice Regarding Movement of Officers May 9, 2019 Notice Regarding 50th Anniversary Commemorative Dividend 2019/05/28 Page 6
Slide 7: 2. Consolidated Financial Results (Cumulative Period)
2. Consolidated Financial Results (Cumulative Period) Consolidated Results FY Ended March 31, 2019 FY Ended March 31, 2019 FY Ended March 31, 2018 % change Forecast Results Results （Unit：million yen） Sales ratio Sales ratio Sales ratio (YoY) Net sales 41,000 － 42,182 － 36,114 － +16.8% Gross profit －
Slide 8: 3.1 Net sales comparison with previous year
3. Comparison with the previous year 3.1 Net sales Increased by 6,067 million yen （Unit：million yen） Net sales Both sales and rental business seg 50,000 ments remained at high level, and in 45,000 +1,163 +1,702 the overseas business segment Hor +2,137 40,000 +1,062 y Korea received orders for large-
Slide 9: 3.2 Operating income comparison with previous year
3. Comparison with the previous year 3.2 Operating income Increased by 1,022 million yen （Unit：million yen） Operating income Increased sales in the sales business 3,500 segment, and growing revenues from +758 △125 rental fees in the rental business seg 3,000 △88 ment due to steady growth of amount 2
Slide 10: 4. Sales business
4. Sales business 4.1 Comparison with the previous year Net sales Increased by 1,062 million yen. Net sales Segment income Sales of the Iq System substantially incre ＋1,455 ased YoY, and environment (agri-related) ＋1,270 119 ＋175 business also grew up （Internal sales） 1,782 +302 （Internal sales） Seg
Slide 11: 4.2 Net Sales by Field
4. Sales business 4.2 Net Sales by Field Consecutive completion of greenhouse installations contributed to substantially higher revenues in the environment-related business segment. On the other hand, sales of used equipment paused because of selling off of fully depreciated assets having passed its
Slide 12: 4.3 Prevalence of the Iq System
4. Sales business 4.3 Prevalence of the Iq System Several competitors have entered into this field in full swing and demands for the next generation scaffolding moved into high gear, leading to increased sales by 67% YoY. （Unit：million yen） Sales performance of the Iq system 3,245 2,510 Iq System ：5
Slide 13: 5. Rental Business
5. Rental Business 5.1 Comparison with the previous year Net sales Increased by 2,137 million yen. Net sales Segment profit Shipment related to projects of traffic infrastructure ＋1,733 ＋404 and urban civil engineering maintained steady gro wth, and prevalence of the next generation scaffol ding mov
Slide 14: 5.2 Trend of average equipment utilization rates
5. Rental Business 5.2 Trend of average equipment utilization rates Growing amount of equipment rented for civil engineering pushed up the whole transactions, and substantially exceeded the previous year's results, thereby achieving the highest level ever also during the fourth quarter. average equi
Slide 15: 5.3 Ratio of Sales by Area
5. Rental Business 5.3 Ratio of Sales by Area Proportions changed due to the fact that net sales in Kanto block maintained remained mostlylevel whereas those for civil engineering related construction work increased in other blocks. FY Ended March 31, 2017 FY Ended March 31, 2018 FY Ended March 31,
Slide 16: 5.4 Transitions of depreciation and investment
5. Rental Business 5.4 Transitions of depreciation and investment Investment in assets for rent passed its peak, and depreciation of assets for rent remained mostly level. Depreciation Investment in assets for rent, General investment 6,468 4,663 4,777 4,800 4,700 4,503 7,676 2,240 4,137 798 883 3,6
Slide 17: 6. Overseas business
6. Overseas business 6.1 Comparison with the previous year Net sales Net sales Segment profit Increased by 1,703 million yen. ＋248 During the 2Q, Hory Korea achieved higher rev ＋1,454 enues thanks to order-taking for large-scale sol +58 ▲183 ar-related projects, as well as slight increase in revenue
Slide 18: 6.2 Sales Ratio by Segment
6. Overseas business 6.2 Sales Ratio by Segment FY03/2019 has seen significant increase thanks to order-taking for large-scale solar-related projects in Korea. Overseas Overseas Overseas Business Business Business 9.8% 14.7% Sales 16.9% Sales Business Business Sales 30.3% Business 31.4% FY Ended 38.
Slide 19: 7. Change in Consolidated Balance Sheet
7. Change in Consolidated Balance Sheet Equity ratio is 26.0% (up 1.0% YoY). 【Assets】 Investments and other assets Intangible assets Property, plant and equipment Current assets Net assets Non-current liabilities Current liabilities 52,760 52,813 54,414 Current assets ： 11,401million yen Cash & Depo
Slide 20: 8. Three-year performance
8. Three-year performance Investments in capital of subsidiaries and affiliates are those in the sub-subsidiary in Vietnam. Loans are shifted to long-term funding in view of future economic trends and other factors. Cash flows improved because of investment within the range of depreciation. （Unit：mi
Slide 21: 9.1 Three-year performance: Sales business
9. Three-year performance 9.1 Sales business Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Fiscal Year Ending March 31, 2019 （Unit：million yen） Segment sales Segment profit Segment profit ratio 4,611 4,185 3,652 4,040 3,887 3,631 3,764 3,439 3,431 15.8% 17.3% 2,522 2,877 15.1% 12
Slide 22: 9.2 Three-year performance: Rental Business
9. Three-year performance 9.2 Rental Business Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Fiscal Year Ending March 31, 2019 （Unit：million yen） Segment sales Segment profit Segment profit ratio 6,173 5,908 6,308 6,023 5,011 5,538 5,490 5,230 5,228 5,610 5,312 5,279 12.7% 12.8% 1
Slide 23: 9.3 Three-year performance: Overseas business
9. Three-year performance 9.3 Overseas business Fiscal Year Ended March 31, 2017 Fiscal Year Ended March 31, 2018 Fiscal Year Ending March 31, 2019 （Unit：million yen） Segment sales Segment profit Segment profit ratio 1,913 1,991 2,028 2,071 1,263 1,389 1,405 1,443 1,006 930 997 1,123 5.6% △2.5% △3.2
Slide 24: 10. FY Ending March 31, 2020
10. FY Ending March 31, 2020 In the previous fiscal period overseas business segment achieved temporary increase in revenues but is expected to see decrease during FY03/2020. However, domestic sales/rental business segments are expected to ongoingly maintain steady growth. In addition, temporary inc
Slide 25: 11. Status of shareholder return
11. Status of shareholder return Dividend return policy: To return dividends to shareholders in accordance with the revenue, while maintaining stable dividend level. During FY03/2020, the Company plans to provide commemorative dividend (2 yen). FY Ended March 31, FY Ended March 31, FY Ended March 31
Slide 26: Progression of Mid term management plan
Progression of Mid term management plan Representative Director, President and Chairman Kazumasa Takamiya 2019/05/28 Grand Front Osaka Tower-B Bldg. 27F, 3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan TEL：+81-6-6375-3900 FAX：+81-6-6375-8825
Slide 27: 1. Medium-Term Management Plan - Vision and Profit Target
1. Medium-Term Management Plan -Vision and Profit Target- Create new value through transformation and aim to become a corporate group that drives qualitative development of the Vision industry Fiscal Year Ending March 31, 2021Consolidated operating Profit Target income4 billion yen（Net sales：500mill
Slide 28: 2. Progress of Mid term management plan
2. Progress of Mid term management plan Relationship between assets for rent / Total investment amount Operating income 4,000 capital investment and operating income 3,098 3,200 2,983 ・Proactive investment in line with the previous mid- 2,713 2,429 term management plan could not cover increase in de
Slide 29: 3. FY03/2019: Results and outcomes
3.FY03/2019: Results and outcomes 「Medium-Term Management Plan 2018」policy FY03/2019: Results and outcomes • Shift to long-term, low-interest funding • Strengthen management base • Improvement in utilization rates of assets for rent • Innovate earnings base Basic Policy • Shorter lead time of produc
Slide 30: 4. Challenges to be Addressed
4. Challenges to be Addresse The Company will push up its results and outcomes in FY03/2019 further, continue to address the issues raised for FY03/2020 and onwards, and make these activities the foundation for the next "2021 Mid-term Management Plan" Challenges for FY Ending March 31,2020 • Improve
Slide 31: 5. Industry Environment and Future trends
5. Industry Environment and Future trends Integrated Linear Chuo Shinkansen in Olympic/Paralympic Resort in operation between Nagoya and Rush demands before rise in Games in Tokyo Hokuriku Osaka Expo in Osaka/Kansai Shin-Osaka consumption tax rate Shinkansen (bullet train) in operation Linear Chuo S
Slide 32: 6. Rental Business
6. Rental Business To improve pricing by adding more values and to ensure a solid revenue base, higher productivity and efficiency are sought. • More values can be added by "new equipment type", "installation" and "suggestion-based sales activities (new services)", all of which support higher produc
Slide 33: 7.1 Next generation scaffolding
7. Sales business 7.1 next generation scaffolding Market has shifted to the next generation scaffolding, so sales expansion should be sought by synergy with rental business. Prevalence of the ext generation Prevalence of the Iq System scaffolding and Prevalence of frame- type scaffolding （unit：Ten t
Slide 34: 7.2 Activities other than next generation scaffolding
7. Sales business 7.2 Activities other than those for the next generation scaffolding Measures for cost reduction, and reinforcing/cultivating profitable business other than temporary equipment • Manufacturing sector will, in order for cost reduction, facilitate factory Environmental equipment Sales
Slide 35: 8. Overseas business
8. Overseas business Myanmar As for sales activities Cadian Myanmar General outsourcing of CAD design and Highly value-added ・currently at a stage of prior investment drawing for construction ※Nonconsolidated products are developed and subsidiary ・for Korea, decisions will be made taking manufacture
Slide 36: 9. Overall measure and next midterm image
9. Overall measure and next midterm image Various measures should be taken with certainty, and growth of net sales during the next mid-term management plan should be realized along with higher profit rate. The arena will expand to all over Asia. Net Sales Operating income • Reconsidering organizatio
Slide 37: Reference materials
Reference materials Representative Director, President and Chairman Kazumasa Takamiya 2019/05/28 Grand Front Osaka Tower-B Bldg. 27F, 3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan TEL：+81-6-6375-3900 FAX：+81-6-6375-8825
Slide 38: 1. Sales business: Product
1. Sales business 1.1 Product Joint(clamp) Next generation scaffolding Hanging type scaffolding Safety member 建設関連 建設関連 建設関連 建設関連 General-purpose equipment used in New scaffolding with high safety Walking panel hung with chains, Preceding handrails, any work sites performance, an alternative to the
Slide 39: 2. Corresponding construction field
2. Sales business 2.1 Corresponding construction field Architecture Bridge Underground work Plant 建築（新築・維持補修） 橋梁（新築・維持補修） トンネル・地下工事 プラント High-rise buildings, high-rise Expressways, railroads, elevated Shield tunneling construction such as Construction and maintenance of condominiums, warehouses, ビル、
Slide 40: 3. Overseas bases and business activities
3. Overseas business 3.1 Overseas bases and business activities ホリーコリア株式会社 Hory Korea Co.,Ltd ホリーベトナム有限会社 HORY VIETNAM Co.,Ltd DIMENSION-ALL DIMENSION-ALL INC. INC. ※ フィリピン カランバヤード 建設用仮設機材や太陽光パネル設置架 Carrying out manufacture/sales/rental of 日本国内向けクランプや東南アジア向 Carrying out manufacture of clamps for 建設用
Slide 41: 4. Quarterly Change in Results by Segment
4. Quarterly Change in Results by Segment （Unit：million yen） FY Ended March 31, 2018 FY Ending March 31, 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales business Segment sales 3,887 3,631 2,522 2,409 2,877 3,764 3,439 3,431 (Of which) Inter-segment sales 2,804 2,902 2,531 2,428 2,853 3,702 3,388 3,449 Segment pr
Slide 42: 5. Quarterly Change in Results by Segment
5. Quarterly Change in Results by Segment （Unit：million yen） FY Ended March 31, 2018 FY Ending March 31, 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales business Segment sales 3,887 7,518 10,040 12,449 2,877 6,641 10,081 13,512 (Of which) Inter-segment sales 2,804 5,707 8,239 10,667 2,853 6,555 9,944 13,393 Segm
Slide 43: 6. Change in Financial Results
6. Change in Financial Results Net sales Operating income 10,312 737 4Q 9,783 9,190 995 8,828 8,783 707 3Q 11,135 667 806 2Q 9,072 8,764 9,460 9,049 861 299 919 1Q 796 11,028 9,010 9,377 9,114 1,121 586 8,436 872 693 831 545 7,925 7,791 8,142 8,761 9,705 434 253 272 259 255 FY Ended FY Ended FY Ende
Slide 44: 7. Change in Consolidated Financial Results
7. Change in Consolidated Financial Results FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FYEnded FY Ended FY Ended FY Ended FY Ended March 31, March 31, March 31, March 31, March 31, March 31, Marh 31, March 31, March 31, March 31, March 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 45: 8. Change in Consolidated Balance Sheet
8. Change in Consolidated Balance Sheet FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 46: 9. Change in Domestic Construction Investment
9. Change in Domestic Construction Investment * Source: Research Institute of Construction and Economy, "Quarterly Outlook of Construction and Macro Economy", Jan 2019 2018 Up 1.3％ 2019 Up 2.1％(Forecast) 560,200 567,400 579,100 512,984 535,700 511,410 509,828 432,923 452,914 169,900 176,400 174,700
Slide 47: 10. Changes in invested amount for domestic building reform/renewal
10. Changes in invested amount for domestic building reform/renewal * Source: Ministry of Land, Infrastructure Transport and Tourism, "Estimate of Construction Investment, FY2018", Jun 2018 Up 4.1％ YoY 127,000 131,000 125,800 117,800 110,200 99,300 38,400 39,300 41,500 90,300 40,500 83,500 84,800 77
Slide 48: 11. Change in Domestic Construction Investment
11. Change in Domestic Construction Investment * Source: Ministry of Land, Infrastructure Transport and Tourism, "Estimate of Construction Investment, FY2018", Jun 2018 Government investment Private investment Renovation and renewal investment （Unit：billion yen） 400,000 341,100 329,800 311,900 287,3
Slide 49: 12. Change in utilization rate of construction materials and equipment
12. 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） 70.0 Net sales Framework Scaffolding Falsework Members 25,000 60.0 20,000 50.0 15,000 40.0 30.0 10,000 20
Slide 50: 13. Change in Overseas Market
13. Change in Overseas Market (Billion dollars) Country (Million people) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Nominal GDP 6,203 5,155 4,850 4,394 4,949 4,872 5,167 5,362 5,498 5,641 5,796 5,962 Japan Population 127 127 127 126 126 126 126 126 125 125 124 124 Nominal GDP 1,222
Slide 51: 14. Stock Price of 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 TAKAMIYA (2445:Tokyo) Apr-14 Jul-14 Oct-14 Jan-15 Apr-1
Slide 52: 15. IR contact
15. IR contact HP For Investor Company ： Takamiya Co., Ltd. name Grand Front Osaka, Tower B, 27F, Address ： 3-1 Oofuka-cho, Kita-ku, Osaka, 530-0011, Japan HP ： https://www.takamiya.co/ For Investor ： https://www.takamiya.co/ir/ Japan ： +81-(0)6-6375-3918 Phone FAX ： +81-(0)6-6375-8827 CONTACT ： Tak