タカミヤ（2445） – [Delayed] Results Briefing Materials for the Fiscal Year Ended March 31, 2022

Results Briefing Materials for the Fiscal Year Ended March 31, 2022Takamiya Co., Ltd. (2445:Tokyo)Grand Front Osaka Tower-B Bldg. 27F,3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, JapanTEL：+81-6-6375-3900 FAX：+81-6-6375-8825Notice: 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 original Japanese document, the latter shall prevail.Agenda Topics Description of consolidated performance of the Fiscal Year Ended March 31, 2022 Progress of “2021 Medium-Term Management Plan” Prospects for the future2022/06/02 Page 2TopicsMar. 18, 2022Notice of Change of DirectorsApr. 22, 2022Notice regarding transition to a Company with Audit and Supervisory Committee and Change of directorsMay. 20, 2022Notice regarding partial changes to the articles of incorporationMay. 23, 2022 (Voluntary disclosure)Notice regarding acquisition of shares of YameKaisei Co., Ltd.In addition to the above, various releases and IR information can be viewed on our website.https://www.takamiya.co/en/2022/06/02 Page 3Company Overview of Takamiya Co., Ltd.Trade nameIncorporationRepresentativeCapitalNumber of employeesRegistered head officeBusiness locationsTakamiya Co., Ltd.June 21, 19691,052 million yenRepresentative director, Kazumasa TakamiyaConsolidated : 1,222; Non-consolidated : 722 (As of the end March 2022)Grand Front Osaka, Tower B, 27F, 3-1 Ofuka-cho, Kita-ku, Osaka, JapanBranches: Tohoku-Sendai, Ibaraki, Tokyo, Niigata, Nagoya, Osaka, Chushikoku, Kyushu-Fukuoka (total: 8) Business offices: Sapporo, Morioka, Fukushima, Kashima, Ichihara, Hokuriku, Fukui, Nagano, Shizuoka, Keiji, Kobe, Hiroshima, Okinawa (total: 13)Equipment centers：Aomori-Higashidori, Iwate-Morioka, Miyagi-Sendai No. 2, Fukushima-Hirono, Ibaraki-Chuo, Ibaraki-Tsukuba, Ibaraki-Dejima, Ibaraki-Kashima, Chiba-Okido, Chiba-Ichihara, Saitama-Kuki, Kanagawa-Aikawa, Niigata-Yokogoshi, Niigata-Nagaoka,Shinsyu-Ngano, Nagano-Iida, Ishikawa-Kanazawa, Fukui-Sabae, Tokai-Kisosaki, Shizuoka-Yoshida, Shiga-Omihachiman, Osaka-Hirakata, Osaka-Settsu, Wakayama-Momoyama, Hyogo-Tojo, Hyogo-Kobe, Hiroshima-Shiwa, Kagawa-Sanuki , Okinawa-Naha(total: 29)Factory: Gunma, Gifu(total: 2)Consolidated subsidiaries[Japan total:7] IWATA Co., Ltd.. ; AOMORI ATOM Co., Ltd. ; TOTAL TOSHISEIBI Co., Ltd.; NEXTECH Co., Ltd..,; Nakaya Kizai Co., Ltd; HIRAMATSU Co., Ltd. ; Cadian Co Ltd. [Overseas total:3] DIMENSION-ALL INC. ; Hory Korea Co. Ltd ; HORY VIETNAM Co., Ltd. (total:10)Stock listingJun. 2005: JASDAQ Securities Exchange Note: The Company was delisted from the JASDAQ market in January 2008.Dec. 2007: Tokyo Stock Exchange Second SectionDec. 2014: Assigned on Tokyo Stock Exchange First Section2022/06/02 Page 41. Summary of consolidated performance 1.1 Business overview In the first half of the year, new orders and repeat orders for the Iq System were strong in the sales business, and there was demand for price revisions in consideration of rising steel prices. In the overseas business, the economic recovery in South Korea and sales in Vietnam to Japan were favorable. In the rental business, the utilization of rental asset of equipment for civil engineering work, which has a high rate of return, was lower than expected. As a result, sales increased by 2.5% and operating income decreased by 30.8% compared to the previous fiscal year, resulting in higher sales and lower profits, but the results exceeded the initial plan. In the second half, sales of temporary equipment such as Iq System increased in the sales business, and sales in Vietnam to Japan were favorable in the overseas business. As a result, sales and profits increased in the sales business and overseas business. In the rental business, the utilization rate of rental assets declined due to the delay in the start of construction work at the civil engineering site and the return of equipment at the end of the fiscal year. As a result, sales increased by 2.6% and operating income increased by 88.6% compared to the previous fiscal year, resulting in higher sales and profits.2022/06/02 Page 51. Summary of consolidated performance 1.2 Cumulative period (from April 1 to March 31,2022)Consolidated Results（Unit：million yen）Net salesGross profitSG&AOperating incomeOrdinary incomeProfit attributable to owners of parent－－1,8001,5801,000Earnings per share（Diluted earnings per share）21.47 yenAnnual dividends per share 14.00 yenDepreciationEBITDA－－FYE Mar. 31,2022 Forecast before correctionFYE Mar. 31,2022ForecastFYE Mar. 31,2022 ResultsFYE Mar. 31,2021Results% changeSales ratioSales ratioSales ratioSales ratio(YoY)42,000100.0%42,300100.0%4.2％3.7％2.3％－－－－－－－－2,1502,1701,14024.28 yen14.00 yen－－39,80011,1819,4991,6821,95496520.73 yen（20.10 yen）－4,7846,4665.1％5.1％2.6％－－－－－－100.0%28.1%23.9%4.2%4.9%2.4%－－38,81210,9969,4101,5861,569857100.0%28.3%24.2%4.1%4.0%18.41 yen（17.89 yen）－－－+2.5%+1.7%+0.9%+6.0%+24.5%－－2.2%+12.6%12.0%16.2%4,8156,40212.4%16.5%△0.7%+1.0%2022/06/02 Page 61. Summary of consolidated performance (April 1 – March 31, 2022) 1.3 Factors of increase/decrease in net sales and operating income(Unit : million yen)(Unit : million yen)(FY ended/ending March 31)Net sales988 million yen increased(up 2.5% YoY) Sales increased in sales and overseas businesses. Sales decreased in the rental business.Operating income95 million yen increased (up 6.0% YoY) Income increased in sales and overseas businesses. Income decreased in rental business.＋2.5%(YoY)+6.0%(YoY)2022/06/02 Page 71. Summary of consolidated performance (April 1 – March 31, 2022) 1.4 EBITDA (Operating income + Depreciation)EBITDA64 million yen increased(up 16.2% YoY) The main factor is an increase in operating income. As for depreciation, rental asset depreciation decreased and capital investment depreciation increased.(FY ended/ending March 31)(Unit : million yen)+16.2%(YoY)2022/06/02 Page 81. Summary of consolidated performance (April 1 – March 31, 2022) 1.5 Performance by segmentNet sales(FY ended/ending March 31)Segment Operating income(Segment operating profit margin)Unit : million yenFY2021FY2022FY2021FY2022% change(YoY)% change(YoY)SalesBusinessRentalBusinessOverseasBusiness11,99013,629+13.7%1,404(11.7%)1,633(12.0%)+16.3%24,00923,283(3.0)%5,3006,410+20.9%1,793(7.5%)(99)(－)1,221(5.2%)277(4.3%)(31.9)%－%2022/06/02 Page 92. Sales business2.1 Factors of increase/decrease YoYNet sales:1,639 million yen increased Sales of temporary equipment such as the Iq System were firm. In the environment-related field, sales of high-performance green houses for agriculture have been weak as a result of the completion of sales in the first half of the year. Sales of second-hand goods increased due to increased sales in Japan and overseas.Operating income:228 million yen increased The effect of increased sales of temporary equipment exceeded the increase in SG & A expenses, resulting in an increase in profits. Due to the increase in personnel, SG & A expenses increased. The operating profit margin is at the same level as the previous year..(Unit : million yen)(Unit : million yen)+13.7％(YoY)+16.3％(YoY)(FY ended/ending March 31)2022/06/02 Page 102. Sales business2.2 Net sales by product fieldSales of Iq Systems were strong for temporary equipment, and second-hand sales also contributed. In the environment-related field, sales of high-performance green houses were weak. Sales related to building materials decreased.Iq System, G-Walk, etc.Mounting devices of solar panel,Agricultural greenhouse1,819 1,786 4Q3Q2Q1Q8,191 2,373 1,800 2,121 1,897 2021956 353 224 191 188 20219,817 2,657 2,158 2,890 2,112 2022693 149 191 166 187 2022* Amounts less than one million yen are rounded.(Unit : million yen)806 271 294 448 20211,021 462 167 223 169 2021410 275 489 612 20221,332 358 296 415 263 2022FY ended/ending March 31Seismic dumper,Housing building materialTemporary equipmentEnviroment-relatedSecond hand, sales of leased assetsBulding materials-relatedSales of second hand2022/06/02 Page 112. Sales business2.3 Sales of Iq SystemSales of the Iq System Increased by 8.0% (up 259 million yen) YoY. Sales performance of Iq SystemRapidly increase due to a large order4,294 (Unit : million yen)3,270 3,244 3,504 2,510 1,939 201720182019202020212022(FY ended/ending March 31)+8.0％(YoY)Iq System Cumulative sales20.9 Billion yen※Our sales only2022/06/02 Page 122. Sales business2.4 Number of sales destinations for Iq SystemsThe number of sales destinations for Iq Systems has steadily increased. As the number of customers increases, repeat demand is expected to increase.Number of new Iq System sales companies / cumulative number of sales companies(Unit : companies)346417273225131451774648487371417 companies201720182019202020212022newcumulative(FY ended/ending March 31)Cumulative number of Iq System sales destinations※Our sales only2022/06/02 Page 132. Sales business2.5 Prevalence of Iq SystemThe spread of next-generation scaffolding in the industry is firmPrevalence of the Iq System(Our sales + Rental assets)(Unit：ten thousand ㎡)648724815365454532201720182019202020212022NOTE : This graph is made with own calculation methods, that calculated from selling and assets.(FY ended/ending March 31)2022/06/02 Page 142. Sales business2.6 Iq System market shareNext-generation scaffolding and Iq System penetration in the industry is going wellScaffolding market shareMarket share of next-generation scaffoldingTraditional scaffoldingAbout 70％Iq SystemAbout 11％Other next generation scaffoldingAbout20％Iq SystemAbout 36％Other next generation scaffoldingAbout 64％※Our research2022/06/02 Page 153. Rental business3.1 Factors of increase/decrease YoYNet sales:725 million yen decreased The utilization rate of rental asset remained high mainly for maintenance and repair work in the Tokyo metropolitan area, including the Iq System. However, after the completion of the large-scale civil engineering work in the previous fiscal year, the utilization rate of civil engineering-related rental assets was sluggish due to the impact of delays at the site. As a result, rental income decreased, resulting in a year-on-year decrease.Operating income:571 million yen decreased Although SG & A expenses were reduced, profits decreased due to a decrease in sales and an increase in the fixed cost ratio such as depreciation. The reason for the decrease in SG & A expenses was the treatment of goodwill impairment of a consolidated subsidiary in the previous fiscal year.(Unit : million yen)(Unit : million yen)(3.0)%(YoY)(31.9)%(YoY)(FY ended/ending March 31)2022/06/02 Page 163. Rental business3.2 Trend of average utilization rates of rental assets* Trend of utilization rates of rental assets looks like a mountain with its peak at the 3Q each year * Utilization rate = rented amount / overall holdingsWhile the Iq System remained at the highest utilization rate ever, the utilization rate of civil engineering-related equipment was sluggish.The utilization rate of all rental assets will increase slightly, but the result will be lower than the same period of the previous year.Utilization rates of rental assetsIq SystemAssets for rent as a wholeRecord high utilization rate(FY ended/ending March 31)76.1%75.9%62.3% 63.6%68.7%58.8%66.1%58.0%64.5%67.1%62.5%63.7%61.1%55.7% 56.4% 56.0%50.6% 47.5% 50.7%76.8%70.5%54.7%65.2%50.4%Average occupancy rate during the period：71.68％Iq SystemAll rental assets：60.44％Average occupancy rate during the periodIq System ：63.80％All rental assets：54.68％Average occupancy rate during the period：69.05％Iq SystemAll rental assets：50.82％1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2020202120222022/06/02 Page 173. Rental business3.3 Ratio of Sales by AreaThe Kanto block is doing well, including maintenance and repair work in the Tokyo metropolitan area.Civil engineering-related work has been completed in the Chubu block.FY2020FY2021FY2022TohokuKantoChubuKansaiKyusyu3.9%13.5%3.2%11.6%26.6%28.3%37.0%36.9%19.0%20.0%3.7%10.8%31.3%12.7%41.5%NOTE: Chugoku/Shikoku block is included in Kansai block.(FY ended/ending March 31)2022/06/02 Page 184. Overseas business4.1 Factors of increase/decrease YoYNet sales:1,110 million yen increased Sales in South Korea increased. Sales of Vietnam to Japan increased. In the Philippines, outing and movement restrictions were being continued, but we were able to increase sales performance during the period when the movement restrictions were lifted. However, the situation is still severe.Operating income: 377 million yen increased The main factor is the effect of increased sales.(Unit : million yen)(Unit : million yen)+20.9%(YoY)0+377 million yen(YoY)(FY ended/ending March 31)2022/06/02 Page 194. Overseas business4.2 Sales Ratio by SegmentOverseas15.0%Sales31.4%FYE Mar 31,2020Net sales46,065 million yenOverseas12.8%Sales29.0%FYE Mar 31,2021Net sales38,812 million yenOverseas14.8%Sales31.5%FYE Mar 31,2022Net sales39,800 million yenRental53.6%Rental58.1%Rental53.7%* “Sales Ratio by Segment” is based on net sales before inter-segment elimination.2022/06/02 Page 205. Change in Consolidated Balance SheetEquity ratio declined 31.8% (end of the previous term: 32.3%)[Asset]Current assetsCash and depositsInventoriesNon-current assetsAssets for rent, netNotes and accounts receivable – tradeBuildings and structures, net[Liability]Current liabilityNotes and accounts payable – tradeShort-term loans payableNon-current liabilityBonds payableLong-term debt[Net asset]：8,836+804：10,836 (841)：6,580 +1,476：12,179 (1,032)：5,659 +1,511：6,940 +1,271：2,612 (866)：4,230 +952:11,942 +588(Unit : million yen)Investments and other assetsIntangible assetsProperty, plant and equipmentNet assetsNon-current liabilities(FY ended/ending March 31)Current assetsCurrent liabilities59,28226,40821,73056,45459,08119,55424,90726,68320,03519,05418,13128,7999393,134Assets18,497Liabilities/Net assets202027,4808263,240Assets18,768Liabilities/Net assets202119,70819,34028,331787 3,282AssetsLiabilities/Net assets20222022/06/02 Page 21Shareholders’ equity：18,666 +319* The figures in parentheses are comparisons for the same period of the previous year(Unit : million yen)6. Cash flow statementExpenditure increased due to an increase in investment CF, but the cash balance increased due to a decrease in financial CF expenditure.[Cash flows from operating activities](Unit : million yen)FYE Mar.31, 2021FYE Mar. 31,2022(Unit : million yen)Profit before income taxesDepreciationPurchase of assets for rentDecrease (increase) in notes and accounts receivable – trade ： 934 (1,611)Decrease (increase) in inventoriesIncrease (decrease) in notes and accounts payable – trade： 1,666 +207： 4,784 (31)： (611) +297： (2,966) (1,370)： 1,204 +2,004： (2,955) (1,746)： (69) +119Profit before income taxesNet cash provided by (used in) operating activitiesNet cash provided by (used in) investing activitiesNet cash provided by (used in) financing activitiesEffect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalents：：：6,610 +790(6,333)(871)(501)(450)Cash and cash equivalents at beginning of periodCash and cash equivalents at end of period[Cash flows from investing activities]Purchase of property, plant and equipmentProceeds of Intangible assets[Cash flows from financing activities]Proceeds from long-term loans payableRepayments of long-term loans payableRedemption of bonds1,4585,035(1,328)(2,873)107896,9227,7121,6664,294(2,979)(588)778047,7128,5162022/06/02 Page 227. Changes in number of shareholders and shareholder compositionFYE Mar. 31, 2019FYE Mar. 31, 2020FYE Mar. 31, 2021FYE Mar.31 , 20222,923 4,092 3,463 4,052 Shareholders at the end of the periodShareholder compositionGovernment and local public entitiesFinancial institutionsFinancial instruments business operatorsOther Japanese companiesForeign institutions and othersIndividuals and othersTreasury stock(proportion of those including investment trust)(proportion of those including pension trust)0.00 %19.89 %0.30 %20.50 %4.55 %49.03 %5.73 %10.00 %0.45 ％0.00 %22.77 %0.66 %20.78 %6.85 %48.92 %0.02 %11.98 %0.93 %0.00 %23.43 %0.41 %23.38 %7.67 %45.09 %0.02 %11.96 %0.81 %0.00 %22.12 %0.61 %23.88 %6.78 %46.59 %0.02 %10.64 %0.68 %2022/06/02 Page 238. Status of shareholder returnFYE Mar. 31, 2018FYE Mar. 31, 2019FYE Mar. 31, 2020FYE Mar. 31, 2021FYE Mar. 31, 2022Dividend11 yen－4.0 yen－7.0 yen1Q2Q3Q4QTotal amount of dividendsDividend payout ratio37.6%Total return ratioDividend on equityROE37.6％3.7%9.8%11 yen－4.0 yen－7.0 yen28.8%28.8％3.5%12.0%14 yen－6.0 yen－8.0 yen26.5%26.5%3.9%14.7%14 yen－6.0 yen－8.0 yen76.0%76.0%3.6%4.7%Treasury shares0 million yen0 million yen0 million yen0 million yen0 million yen471 million yen471 million yen651 million yen651 million yen652 million yen14 yen－6.0 yen－8.0 yen67.4%67.4%3.5%5.2%2022/06/02 Page 24Progress of “2021 Medium-Term Management Plan”2022/06/02 Page 259. Progress of Medium-Term Management Plan9.1 Outline of Medium-Term Management PlanManagementVisionCreate new value through transformation and aim for sustainable growth by becoming a partner to our customers.“Build a Stock-type business model (commission-based) .”Profit TargetsConsolidated operating income of ¥5.0 billion for the year ending March 31, 2024(35% increase compared to the fiscal year ended March 31, 2020)2022/06/02 Page 269. Progress of Medium-Term Management Plan9.２ Performance trendsManagement Vision Create new value through transformation and aim for sustainable growth by becoming a partner to our customersProfit Targets FYE Mar.31, 2024・Net sales：60 billion yen・Operating income：5 billion yen・Operating income margin：8.0%（Unit：Million yen）Net SalesOperating incomeOperating income margin6.4%8.0%4.1%4.2%5.1%8.0%60,000 (FY ended/ending March 31)42,182 46,065 38,812 39,800 45,000 2,713 3,703 1,586 1,682 2,300 5,000 20192020202120222023…2024…2018 Medium-Term Management Plan 2021 Medium-Term Management Plan2022/06/02 Page 279. Progress of Medium-Term Management Plan9.３ Investment policy: Changes in capital investment and depreciationOriginal plan Capital investment for the fiscal year ending March 2023: 3.9 billion yen Cumulative investment for three years: 11.8 billion yenRental asset investment & Capital investmentDepreciation5,170 Original plan Depreciation expense for the fiscal year ending March 2023: 5.2 billion yen(Unit：million yen) Cumulative depreciation for 3 years: 15.3 billion yenRental asset investmentCapital investment6,818 3,984 4,050 1,517 3,649 1,558 5,434 2,911 7,850 3,990 6,954 3,218 2,467 2,768 2,091 2,523 3,736 3,860 4,950 4,777 4,804 4,815 4,784 2018 Medium-Term Management Plan 2021 Medium-Term Management Plan 2018 Medium-Term Management Plan 2021 Medium-Term Management Plan Rental asset investment & Capital investment The forecast for capital investment in three years is 20.2 billion yen, a decrease of 2.9 billion yen from the original plan. In the fiscal year ended March 31,2022, COVID 19 will curb investment overall.Depreciation Depreciation expenses were 4.7 billion yen, a decrease of 100 millionyen from the initial plan, due to the restraint of investment in the fiscal year ended March 2022.2022/06/02 Page 289. Progress of Medium-Term Management Plan9.４ Financial Policy【Target】 Equity ratio：35% ROA：6% ROE：12％【 achievement 】 All financial policy goals have not been met.Equity ratio Decrease due to increase in total assetsROA Although total assets have increased, productivity has improved, especially rental asset management efficiency.ROE Improved profitability and increased equity capitalEquity ratioROAROEProfit marginTotal asset turnoverFinancial leverage202132.3%2.7%4.7%2.2%0.73.1202231.8%3.4%5.2%2.4%0.73.1※ ROE = Net income ÷ Equity (average at the beginning and end of the period) x 100= Net profit margin x Total asset turnover x Financial leverageProfitNet SalesTotal assets=××Net SalesTotal assetsEquity capital2021 Medium-Term Management Plan202435.0%6.0%12.0%4.8%0.92.82022/06/02 Page 299. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq System Hardware：Product strengthProviding high-value-added temporary equipment that improves safety, workability, and workability at construction sites, centered on the “Iq System” Software：Ability to solve problemsProviding functions to build the management foundation of the Group,“Development / Manufacturing”, “Sales”, “Rental”, “Design / Installation”, and “Management / Logistics”In order to be selected by customers, it is necessary to provide not only product strength (hardware) but also Ability to solve problem (software) that responds to problems in the customer business.2022/06/02 Page 309. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq SystemRental know-howManufacturer functionProduct developmentVarious productsDevelopment / Manufacturing70 billion yen rental assetsScaffolding and Construction Equipment Association of Japan Certified factoryRentalManagement Logistics29 equipment supply bases all over JapanSalesDesign InstallationAgricultural green house3D CADBIM・CIM75 construction companies all over JapanTakamiya Lab. WestIq SharingOPERAWeb order systemPlatform members can use Takamiya’s business foundation as if it were their own2022/06/02 Page 319. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq SystemShare the Takamiya Group’s business foundation with customers and other providersTakamiya’s platform (business foundation)“Development / Manufacturing”, “Sales”, “Rental”, “Design / Installation”, and “Management / Logistics”UserTAKAMIYAPlatform usage feePaymentProducts / ServicesPaymentProducts / ServicesPaymentUserMemberWe will brush up the platform, raise it to an overwhelming level, and evolve it into a service that is attractive to users.Developing business with highly convenient high value-added services as our own platform2022/06/02 Page 329. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq System Expand business areasIq SharingIf you deposit the purchased Iq System with Takamiya, Managed by Takamiya’s 29 equipment supply bases throughout Japan⇒No operating costs or labor costs for equipment management bases⇒Available anywhere in Japan, regardless of where you purchased it⇒Shortages can be rented or purchased on the spotBusiness area expanded all over Japan Equipment maintenance by Scaffolding and Construction Equipment Association of Japan ⇒ You can use the equipment with confidence2022/06/02 Page 339. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq System Expansion of business scale（Before）Selection of construction site according to the amount of equipment owned.⇒By renting the shortage and necessary amount from Takamiya in addition to the equipment you own, you can receive orders regardless of the amount you own.（From now on）It is now possible to provide equipment to large-scale construction sites and multiple construction sites where it was difficult to enter the market.For example, if you need 200 tons of scaffolding to build a condominium, and you have 300 tons of scaffolding. Build an apartment building using 200 tons.100 tons are left over. All 300 tons will be used, 100 tons will be rented from Takamiya, and 2 apartments will be built.Surplus100100100Rental100100100100The scale of the business will expand, leading to profits.2022/06/02 Page 349. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq System Expansion of business domain（Before）The rental company provides rental services with the rental assets it owns.（From now on）Rental company turns into a lumber industry using the construction service provided by Takamiya.The range of work that can be undertaken will expand, and the amount of orders will increase.RentalcompanyRentalcompanyContractor who constructs scaffoldingIt will change so that rental services can be provided and scaffolding can be constructed. Expansion of business domain2022/06/02 Page 359. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq System Urban temporary equipment supply baseA research and development base that develops and provides new technologies and services to evolve the platform and enhance user convenience and competitiveness.“Takamiya Lab. West ”In addition to the function of the conventional temporary equipment supply base Excellent access to major cities in Kansai. 30 minutes to Osaka city By using a truck scale and fast lane, the time required for loading and unloading equipment is shortened. The number of round trips also increases. Monitor using cameras to improve the quality and efficiency of equipment acceptance and maintenance. Safety education and various training Product display / scaffolding construction experience Automated warehouse, automated cleaning machine Solar power generation for private consumption Electric forkliftAmagasaki City, Hyogo Prefecture2022/06/02 Page 369. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq SystemTakamiya Lab. West Significant reduction in travel time and waiting time before1 hour to the equipment supply baseTruck waiting time is 1 hour1 hour to the construction site30 minutes to Takamiya Lab. WestTruck waiting time 30 minutes30 minutes to the construction site開始地点 From now on開始地点Transportation time for temporary equipment3hours1 hour 30 minutesIncreased number of round trips2022/06/02 Page 379. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq SystemIncrease revenue on the platformShare fixed costs with platform users⇒ Increased profit marginTakamiya’s business profitFixed cost(Platform operating costs)Operating expenses of equipment supply baseUsage fee from C companyUsage fee from B companyUsage fee from A companyTakamiya’s business profitFixed cost(Platform operating costs)Operating expenses of equipment supply baseBy sharing the platform used in the Takamiya Group’s sales and rental businesses with platform users, the burden of fixed costs will be reduced. By increasing the number of platform users, it is expected that profits and profit margins will increase due to usage fees.2022/06/02 Page 389. Progress of Medium-Term Management Plan①Develop services that blend hardware and software, with a focus on the Iq System• As the number of platform users increases, the distribution volume of Iq System will increase, and the Iq System and Takamiya platform will become the de facto standard in the temporary industry.Current framework scaffolding and next generation scaffoldingFuture framework scaffolding and next-generation scaffoldingnext generation scaffoldingnext generation scaffoldingExpected market size150 billion yen＋ Cloth board, baseboard, etc.Expected to replace next-generation scaffolding in the futureframework scaffolding framework scaffolding 2022/06/02 Page 399. Progress of Medium-Term Management Plan②Strengthen products for, maintenance / repairs and infrastructure redevelopment Transition of maintenance and repair work(Unit : Trillion yen)13.213.814.013.58070605040302010013.212.712.813.213.013.215.315.815.516.414.916.817.412.512.413.814.3199920002001200220032004200520062007200820092010201120122013201420152016201720182019New constructionMaintenance and repair workMaintenance and repair work2※Created from JAPAN FEDERATION OF CONSTRUCTION CONTRACTORS ”Construction industry handbook2021”2022/06/02 Page 4028.4%30%35%25%20%15%10%5%0%9. Progress of Medium-Term Management Plan②Strengthen products for, maintenance / repairs and infrastructure redevelopment SPIDER PANELPanel-type hanging scaffoldingV‐MAXSystem type hanging scaffoldingLift ClimberEpoch-making mechanical scaffold available for skyscrapers.YT Lock SystemCan be erected along slopes and also used as a gantry. hanging scaffolding （SPIDER PANEL, V-MAX） Sales performance105.3% increase from the same period of the previous year (+453 million yen)（Unit : million yen ）883 430 257 105.3% increase from the same period of the previous year202020212022(FY ended/ending March 31)2022/06/02 Page 419. Progress of Medium-Term Management Plan③Nurture businesses beyond the temporary equipment sectorAgri businessHanyu Aisai ProjectG-Castle Neo48G-Castle ProⅠInside “Hanyu Challenge Farm”, Hanyu City, Saitama PrefectureApproximately 3 hectares (leased landSales performance of the Agri businessSale of high-performance green houseTransfer of green house sales business1,082 1,163 1,273 954 182 93 13Times201720182019202020212022（Unit：million yen）2022/06/02 Page 429. Progress of Medium-Term Management Plan③Nurture businesses beyond the temporary equipment sectorM&A to expand the Agri businesscompany nameYame kaisei Co., Ltd.EstablishedEstablished in 1962, in operation since 1961Capital Stock60 million yenHead office1024 Ota, Hirokawa-cho, Yame-gun, FukuokaBusiness DetailsAgricultural building work, sales of agricultural materialsPurposeTo strengthen and expand the Agri business in the Kitakyushu areaYame Kaisei Co., Ltd. is engaged in the agricultural green house business and is building a customer base in Fukuoka and neighboring prefectures. We provide our original agricultural green house “G-Castle series” to Yame Kaise Co., Ltd. We have determined that business synergies with the company will enable us to expand and grow our business in the Kyushu area.2022/06/02 Page 439. Progress of Medium-Term Management Plan④Redevelop overseas business basesPhilippines：DIMENSION-ALL INC. (Rental and sales of temporary equipment for construction)※End of the fiscal year：December Although the severe situation continued in the current fiscal year due to the continued restrictions on going out and moving in urban areas as a countermeasure against COVID 19, efforts were made to curb SG & A expenses and profits improved.South Korea：HORY KOREA (Manufacturing and sales of temporary equipment for construction) ※ End of the fiscal year：MarchThe economy in South Korea is on a recovery trend, and we continue to receive orders from South Korea and neighboring countries.Vietnam：HORY VIETNAM（Manufacture of products for Japan）※End of the fiscal year：December Due to the blockade of the city, production has temporarily decreased. However, the production of general-purpose products for Japan is also stable. Procurement of raw materials and parts has not been significantly affected and is proceeding smoothly.We will turn headwinds into opportunities by conducting a comprehensive inspection of our overseas business, expanding our sales area, forming alliances with local companies, and developing human resources.2022/06/02 Page 44Prospects for the future2022/06/02 Page 45Prospects for the future / Forecast for the fiscal year ending March 2023In the sales business, we will prepare a system to increase production of Iq System to meet the demand for next-generation scaffolding. The rental business is expected to steadily receive orders for construction and civil engineering work, which is expected to start construction, and the overseas business is expected to recover from the new coronavirus infection and resume economic activities, and is expected to remain firm.（Unit：million yen）2Q ForecastYoYFul year ForecastYoYFiscal Year Ending March 31, 2023（Reference）FYE Mar 31,2022Net sales21,600+7.9%45,000+13.1%39,800Operating incomeOrdinary incomeProfit attributable to owners of parent650600350(14.4)%(33.1)%2,3002,150+36.7%+10.0%+29.4%1,450+50.2%1,6821,954965Earnings per share7.51 yen31.13 yen20.73 yen2022/06/02 Page 46Prospects for the future / Return to shareholders for the Fiscal Year Ending March 31, 2023 Expected dividend amount similar to the previous termConcept of shareholder return Improvement of corporate value and shareholder value Continuation of stable dividends Implementation of return measures according to profitsnote) The dividend for the fiscal year ended March 2020 includes a commemorative dividend of 2 yen.Dividend1Q2Q3Q4QTotal dividend amountDividend payout ratioTotal Payout RatioDOEROE2020年14.0 yen－6.0 yen－8.0 yen202120221４.0 yen－6.0 yen－8.0 yen14.0 yen－6.0 yen－8.0 yen651 million yen651 million yen652 million yen26.5%76.0%67.4%stock repurchase0 million yen0 million yen0 million yen26.5％3.9%14.7%76.0％3.6%4.7%67.4%3.5%5.2%2023Forecast14.0 yen－6.0 yen8.0 yen－－－－－－－2022/06/02 Page 47Prospects for the future / Status of orders for construction workOrders from construction companies, which are customers, are on the declineConstruction work orders received year-on-year40.00%30.00%20.00%10.00%0.00%-10.00%-20.00%-30.00%Apr. 2017Apr. 2018Apr. 2019Apr. 20202021年4月2022/06/02 Page 48Prospects for the future | Domestic construction investment is strongSource: Created from “Construction Investment Outlook” announced in April 2022 by the Ministry of Land, Infrastructure, Transport and Tourism61,324 61,826 62,490 60,900 61,660 (Unit : billion yen)61,980 Construction investment is on a downward trend, government investment is expected to decrease, and private investment is expected to increase.56,646 58,738 48,298 47,493 18,368 18,610 42,447 16,049 11,614 6,019 15,271 20,204 20,986 21,780 21,591 22,720 23,950 23,420 22,980 6,290 6,523 6,490 5,860 6,080 6,340 13,362 14,007 14,551 16,312 16,976 17,010 15,970 16,420 17,160 14,784 16,568 14,876 15,691 16,462 16,942 16,736 16,270 15,120 15,740 15,500 20122013201420152016201720192020ProspectPrivate housingPrivate construction repair2021Prospect2022Outlook2023OutlookPrivate non-housingGovernment(FY ended/ending March 31)2022/06/02 Page 49（Unit：billion yen）YoYgrowth rateYoYgrowth rateNominal construction investment61,6601.2%61,9800.5%Govemment23,420(2.2)%22,980(1.9)%Private housing15,7404.1%15,500(1.5)%Private non-housing16,4202.8%17,1604.5%Private cnstruction repair(refit/renovation)6,0803.8%6,3404.3%NOTE: Government investment includes construction repair (refit/renovation) investmentFY2021（prospects）FY2022（prospects）Prospects for the future | Industry related projectsLarge-scale projects in Japan tend to be delayed, and infrastructure maintenance and repairs such as transportation infrastructure are progressing in various places.Hokuriku-Shinkansen between Kanazawa and Tsuruga(Plan to open)Shin-MeishinExpressway between Otsu and Joyo(Plan to open)Expo in Osaka/KansaiTOKAI-KANJO EXPRESSWAY(Plan to open)Integrated Resort in OsakaShin-Meishin Expressway between Yawata Kyotanabeand Takatsuki(Plan to open)Linear Chuo Shinkansen between Shinagawa and Nagoya(Plan to open)⇒ postponed?Osaka Monorailextensionbetween Kadoma-shiand UryudouLinear Chuo Shinkansen between Nagoya and Shin-Osaka(Plan to open)Full-scale construction of Hokuriku-Shinkansen between Tsuruga and Shin-Osaka (2031~)2022202420252026202720292037Infrastructure renovation projects Tokaido-Shinkansen: large renovation (~2023) Hokuriku-Shinkansen: fully in operation (~2031) Metropolitan Expressway: large renewal (~2028) Hanshin Expressway: large renewal (~2029） Honshu-Shikoku Expressway large renewal (~2029)Private investment may be curtailed by the effects of COVID. From 2021, public investment for economic recovery and orders for projects related to the Osaka / Kansai Expo are expected.2022/06/02 Page 50Reference Information2022/06/02 Page 51ESG informationIR•••••••Video streaming of Financial Results Briefing Disclosure of English versions of Summary of Financial Results, Results Briefing Materials, and Timely Disclosure Release (partly)Issuance and Web release of Integrated Report (Japanese/English) * 2021 version is available in Japanese and EnglishDisclosure of non-financial information (publicized on Integrated Report, and then on the Web)Proactive information disclosure based on dialogues with investors (e.g., prevalence (total area) of next generation scaffolding, rental asset utilization rate)Briefing for private investors1 on 1 meeting 2022/06/02 Page 52ESG informationHuman resource developmentPromoting “Human centered capitalism” style management and measures centered on human resources•••Promoting in-house projects centered on mid-level/young employeesIncentive reward according to the degree of KPI attainment set by each divisionPromoting active Work Style Reform by information disclosure to employees(e.g., screenshots on the right)Training according to individual stages such as new employee, mid-career employee, and pre-manager candidateMentor scheme (new employee / mid-career employee)Mental health check (Web service)Wedding anniversary holiday, refresh holiday and others to encourage taking paid leavesTelework (Work from home) * We have attempted earlier than the present National Declaration of State of Emergency•••••To improve corporate value and shareholder value permanently, development of Key human resources is one critical issue (Human centered capitalism).Human centered capitalism: The Company’s management philosophy advocating that “Human resource is the essence of corporate power”.Such information is publicized to visitors on a large signage2022/06/02 Page 53Stock Price of TAKAMIYA (2445:Tokyo)Average daily trading volume> Solid line is a 12 months moving average line of stock price.600,000500,000400,000300,000200,000100,00009002-naJ9002-yaM9002-peS0102-naJ0102-yaM0102-peS1102-naJ1102-yaM1102-peS2102-naJ2102-yaM2102-peS3102-naJ3102-yaM3102-peS4102-naJ4102-yaM4102-peS5102-naJ5102-yaM5102-peS6102-naJ6102-yaM6102-peS7102-naJ7102-yaM7102-peS8102-naJ8102-yaM8102-peS9102-naJ9102-yaM9102-peS0202-naJ0202-yaM0202-peS1202-naJ1202-yaM1202-peS2202-naJStock price (yen)1,2001,00080060040020002022/06/02 Page 54Comparison of Share Price and Nikkei 225 (based on January 2009)Nikkei 225Takamiya9002-nuJ9002-tcO0102-beF0102-nuJ0102-tcO1102-beF1102-nuJ1102-tcO2102-beF2102-nuJ2102-tcO3102-beF3102-nuJ3102-tcO4102-beF4102-nuJ4102-tcO5102-beF5102-nuJ5102-tcO6102-beF6102-nuJ6102-tcO7102-beF7102-nuJ7102-tcO8102-beF8102-nuJ8102-tcO9102-beF9102-nuJ9102-tcO0202-beF0202-nuJ0202-tcO1202-beF1202-nuJ1202-tcO2202-beF2022/06/02 Page 55HPIR contactCompany name ：Takamiya Co., Ltd.AddressHPFor InvestorCONTACTEmail：：：：：Grand Front Osaka, Tower B, 27F,3-1 Oofuka-cho, Kita-ku, Osaka, 530-0011, Japanhttps://www.takamiya.co/en/https://www.takamiya.co/en/ir/PR / IR Departmentir@takamiya.coFor InvestorThis material is intended solely to provide information about the Group, not to invite investment in the Company’s securities.Opinions and forecasts as provided herein represent the judgements made by the Company at the time of preparation of this material, and of course, in no event warrant/assure accuracy and safeness of such information, and additionally, may be subject to change without notice.2022/06/02 Page 56