Financial Results Briefing
Year ended December 31, 2024
Future figures stated in financial forecasts and elsewhere in this material are forward-looking statements based on currently available information and involve risks and uncertainties. Investors are therefore asked not to make investment decisions based solely on these forecasts. Please note that actual results may differ materially from the forecasts due to various key factors. These factors that may impact actual results include economic circumstances surrounding the Company's business domains and fluctuations in foreign exchange rates against the U.S. dollar and other currencies.
Thank you for the introduction. I am Kawase from OKABE. Thank you very much for your cooperation.
Thank you very much for taking time out of your busy schedules to attend our financial results briefing today.
I would also like to take this opportunity to express our sincere appreciation to everyone for doing business with OKABE.
I would now like to begin the financial results briefing for the fiscal year ended December 2024 of OKABE.
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Okabe Group's Business Domains
(Year ended December 31, 2024 - Consolidated)
Diversification
business
- Manufacturing and sales of lift tables and other products
- Manufacturing and sales of marine materials and products
- Sales of nuts and bolts for automobiles, etc.
6,321
(9%)
Net sales | |
67,806 | 61,485 |
million yen | |
(consolidated for the year | (91%) |
ended December 31, 2024) |
Construction-related products business
- Temporary building and formwork products
- Civil engineering products
- Building structural products
- Building materials
- Building products and materials
LTD.
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First, let me explain the business areas of our group.
As its core business, the Company operates a construction-related products business mainly in Japan, but also in the US and Indonesia.
In addition, the Company manufactures and sells industrial machinery products such as lift tables, and in the marine business, manufactures and sells fish reefs and bolts and nuts for automobiles, which are positioned as diversified products business.
The sales composition ratio is as shown on the slide.
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Domestic and Overseas Sales Ratios
(Year ended December 31, 2024 - Consolidated)
Overseas business | Domestic business | |||
- Manufacturing and sales of building products and materials in the United States and in Indonesia
Sales of nuts and bolts for automobiles 18,843
(28%)
Net sales
67,806
million yen
(consolidated for the year ended December 31, 2024)
48,963
(72%)
- Manufacturing and sales of construction-related products
- Manufacturing and sales of lift tables and other products
- Manufacturing and sales of marine materials and products
LTD. | 3 |
The ratio of domestic and overseas sales is approximately 72% for domestic sales and 28% for overseas sales.
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Today’s Agenda
- Summary of Consolidated Financial Results for the Year Ended December 31, 2024
- Consolidated Forecasts for the Year Ending December 31, 2025
- Topics
- Release of Formwork Method with Single Pipe
- Increasing Use of Select Base
- Promotion of Blue Carbon Business
- Shareholder Return Measures
LTD. | 4 |
As you can see on the slide, we have three items as today’s agenda.
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I. Summary of Consolidated Financial Results for the
Year Ended December 31, 2024
LTD. | 5 |
First of all, I would like to provide an overview of our consolidated financial results for the fiscal year ended December 31, 2024.
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Summary for 2024
Positive factors Negative factors
LTD.
Construction-related products business
Japan | Sales of new method-related products that aid the reduction of labor expanded. |
The lineup of earthquake resistance-related products was enhanced. | |
Overseas | Impact of exchange rates due to the weak yen |
Diversification business | |
Japan | The percentage of custom-made products and other high value-added |
products increased in the category of industrial machinery products. |
Construction-related products business
Sales of products were delayed following the postponement of a plan for | |
Japan | a large project. |
The floor area of reinforced concrete building starts decreased. | |
The labor shortage | Demand for products that prevent landslides declined due to the delay of |
became worse. | a plan for a public project. |
Overseas | A slide in steel prices resulted in a fall in selling prices. |
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I will provide a summary of the status of FY2024.
First, as positive factors, in the domestic construction-related products business, we expanded sales of products related to a new construction method that contributes to weight reduction of materials and simplification of construction methods, the single-stage formwork fastening method, and strengthened our lineup of earthquake-resistant products, our mainstay products.
In the US construction-related products business, the yen’s depreciation was a positive factor. In the diversified products business, the profit ratio of industrial machinery products improved compared to the previous fiscal year due to an increase in the ratio of high value-added products such as custom-ordered products.
On the other hand, as negative factors, in the domestic construction-related products business, product sales were pushed back due to the postponement of plans for large-scale properties against the backdrop of the worker shortage caused by revisions to legislation related to work-style reform and the so-called 2024 problem, a decrease in the floor area of reinforced concrete properties for which construction starts have been postponed, and a decline in demand for landslide prevention products due to delays in public construction plans.
In the related products business in the US, sales decreased compared with the same period of the previous year due to a drop in selling prices following a decline in steel prices.
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Net Sales by Segment and by Product Category (with YoY Change)
(Million yen)
Construction-related business | Temporary building and |
formwork products | |
Civil engineering products | |
Building structural products | |
Building materials | |
products | Building products and |
Subtotal – segment | |
materials (overseas) | |
Diversification business
Total
2023 results | 2024 results | Change | Change (%) |
(amount) | |||
7,288 | 7,057 | (231) | (3.2%) |
7,428 | 6,892 | (536) | (7.2%) |
20,450 | 20,207 | (243) | (1.2%) |
11,799 | 11,011 | (788) | (6.7%) |
17,160 | 16,318 | (841) | (4.9%) |
64,128 | 61,485 | (2,642) | (4.1%) |
14,024 | 6,321 | (7,703) | (54.9%) |
78,152 | 67,806 | (10,346) | (13.2%) |
*1 Water Gremlin Holdings, Inc., Water Gremlin Company, and Water Gremlin Aquila Company S.p.A., which primarily engage in the manufacturing and sale of automotive products (including battery terminal products), were excluded from the scope of consolidation. However, the profits and losses of these three companies are included in the consolidated results for FY2023.
*2 Following a contraction in automotive products, they fall under the diversification business from FY2024 onwards. The same change applies to figures for FY2023.
LTD. | 7 |
Looking at our performance by business segment.
In the construction-related products business, net sales decreased 4.1% from the previous fiscal year to JPY61,485 million.
In the diversified products business, net sales decreased 54.9% from the previous year to JPY6,321 million, mainly due to the exclusion of sales of battery terminal products and fishing weight products.
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Operating Profit by Segment (with YoY Change)
(Million yen) | 2023 results | 2024 results | Change | Change (%) |
(amount) | ||||
Construction-related | 4,066 | 3,448 | (618) | (15.2%) |
products business | ||||
Diversification business | 16 | 746 | 730 | ‒% |
Total | 4,082 | 4,194 | 111 | 2.7% |
*1 Water Gremlin Holdings, Inc., Water Gremlin Company, and Water Gremlin Aquila Company S.p.A., which primarily engage in the manufacturing and sale of automotive products (including battery terminal products), were excluded from the scope of consolidation. However, the profits and losses of these three companies are included in the consolidated results for FY2023.
*2 Following a contraction in automotive products, they fall under the diversification business from FY2024 onwards. The same change applies to figures for FY2023.
LTD. | 8 |
Next, looking at operating income by business segment.
Operating income in the construction-related products business decreased 15.2% from the previous year to JPY3,448 million.
Diversified products business increased by JPY730 million from the previous year to JPY746 million, mainly due to the elimination of operating income and losses related to battery terminal products.
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Overview of Consolidated Results (with YoY Change)
(Million yen) | 2023 results | 2024 results | Change | Change (%) |
(amount) | ||||
Net sales | 78,152 | 67,806 | (10,346) | (13.2%) |
Operating profit | 4,082 | 4,194 | 111 | 2.7% |
(Operating profit margin) | 5.2% | 6.2% | 1.0 Pt | ‒ |
Ordinary profit | 4,303 | 4,422 | 119 | 2.8% |
Profit (loss) attributable to | (5,472) | (874) | 4,598 | ‒ |
owners of parent | ||||
- Water Gremlin Holdings, Inc., Water Gremlin Company, and Water Gremlin Aquila Company S.p.A., which primarily engage in the manufacturing and sale of automotive products (including battery terminal products), were excluded from the scope of consolidation. However, the profits and losses of these three companies are included in the consolidated results for FY2023.
LTD. | 9 |
As a result, net sales for the fiscal year were JPY67,806 million, a decrease of 13.2% from the previous year.
Operating income was JPY4,194 million, up 2.7% from the previous year. Ordinary income was JPY4,422 million, up 2.8% from the previous year. Net loss attributable to owners of the parent was JPY874 million.
For the second consecutive fiscal year, the Company recorded a net loss, due to an extraordinary loss of JPY5,918 million, which included a settlement payment resulting from a basic agreement reached on a lawsuit in the US, and a loss on valuation of investment securities.
Since our business performance, excluding extraordinary losses and other extraordinary factors, has been generally in line with our expectations and is expected to continue to grow steadily, we will use our withdrawal from unprofitable businesses as a turning point to further enhance our corporate value.
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Consolidated Financial Position (with YoY Change)
(Million yen) | End of 2023 | End of 2024 | Change |
(amount) | |||
Assets | 89,885 | 86,993 | (2,891) |
Liability | 27,824 | 27,452 | (372) |
(Interest-bearing liabilities) | 6,918 | 6,130 | (788) |
Net assets | 62,060 | 59,541 | (2,519) |
Equity ratio | 69.0% | 68.4% | (0.6 Pt) |
LTD. | 10 |
Next, I would like to explain the consolidated financial position.
Total assets decreased JPY2,891 million to JPY86,993 million and net assets decreased JPY2,519 million to JPY59,541 million in the fiscal year compared to the end of the previous fiscal year.
The equity ratio decreased 0.6 points from the end of the previous fiscal year to 68.4%.
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