Japan Elevator Service Holdings Co., Ltd. · TSE:6544

Japan Elevator Service — FY2026 Earnings Presentation

44 slides from Japan Elevator Service's earnings presentation, May 21, 2026

  1. Slide 1: Presentation Material for the Fiscal Year Ended March 2026

    < Caution > This document is a 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. Presentation Material for the Fiscal Year Ended March 2026 M

  2. Slide 2: Table of Contents

    2 Table of Contents 1. Review of Business for the FY Mar 2026 ・・・・・・・・・・・・ 3 2. Business Strategy for the FY Mar 2027 ・・・・・・・・・・・・・ 7 3. Earnings Review and Outlook ・・・・・・・・・・・・・・・・・・・・・・ 12 4. Medium-term Business Plan VISION2027 ・・・・・・・・・・ 17 5. References ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

  3. Slide 3: Domestic Maintenance Contracts

    Domestic Maintenance Contracts 3 ⚫ Elevators under maintenance contracts at the end of 14%CAGR 126,840 March 2026 was 126,840 units Since listed ⚫ Net increase of 13,320 that compares record breaking net adds previous year 113,520 ⚫ Our estimated market share advanced more than one percentage point

  4. Slide 4: Results Overview: Nine Years of Record Breaking Results Since Listing

    Results Overview 4 Nine Years of Record Breaking Results Since Listing • Good Business environment • Modernization unit price up • Exceeded forecast of ¥6.6B due • Strong progress in maintenance • Up 27.7% YoY to break record to increase in sales and profit & repair and modernization • OP margin bef

  5. Slide 5: Shareholder Return Policy - 2026 Dividend Forecasts

    Shareholder Return Policy - 2026 Dividend Forecasts - 5 ⚫ Our shareholder return policy is based on a dividend payout ratio of at least 40% and aims for stable increases in EPS and DPS ⚫ Reflecting steady business growth, the Company maintains its dividend forecast of 21 yen for the fiscal year endi

  6. Slide 6: Forecast Exceeds VISION2027 Target

    Forecast Exceeds VISION2027 Target 6 ⚫ The number of maintenance contracts increased steadily, supported by a stronger organization that included expanding branch networks and recruiting personnel ⚫ The number of modernization projects exceeded expectations, driven by robust demand resulting from a

  7. Slide 7: Growth Opportunities in Maintenance & Repair Business

    Growth Opportunities in Maintenance & Repair Business 7 Trends in Maintenance Contracts ⚫ Unlike overseas markets, where independents sometimes make with OEMs and JES up the majority, OEMs and OEM-affiliated companies account for 80% of the market in Japan's elevator maintenance market ■OEM & OEM-af

  8. Slide 8: Growth Opportunities in Modernization Business

    Growth Opportunities in Modernization Business 8 ⚫ The demand for renovation is emerging in buildings constructed during the peak period from the 1990s to the early 2000s. Furthermore, as OEMs are phasing out the supply of parts for elevators manufactured after 1990 and expanding the scope of this p

  9. Slide 9: Expansion of Network and Workforce to Support Share Gain

    Expansion of Network and Workforce to Support Share Gain 9 ⚫ The number of locations increased from 148 at the FY Mar 2025 to 156 as at FY Mar 2026. Th Company established a new service office in Oita, a new market for the company, and opened regional head offices, branches, and service offices in v

  10. Slide 10: Expansion of Service Capabilities for Share Gain

    Expansion of Service Capabilities for Share Gain 10 New Elevator Business to Expand Our Service Offerings and to Increase the Number of Contracts ⚫ In the new business market, price increases and delivery delays have become apparent due to labor shortages and soaring raw material costs ⚫ Recognizing

  11. Slide 11: Progress at Overseas Business

    Progress at Overseas Business 11 ⚫ Japan is one of the largest elevator markets, so growing our market share there is our top priority. ⚫ Given Japan's market size and growth potential, overseas business could be our second growth driver once we have fully capitalized on opportunities there ⚫ We wil

  12. Slide 12: Results for FY Mar 2026 (Overview)

    Results for FY Mar 2026 (Overview) 12 Amid sustained growth in revenue and profits since the listing, profit margins have shown a marked improvement ⚫ Sales and profits both exceeded the earnings forecast revised upward in November 2025 ⚫ Gross profit margins continued to improve, driven by a signif

  13. Slide 13: Factors for Change in Operating Profit before Amortization

    Factors for Change in Operating Profit before Amortization 13 (million yen) Increase Decrease 18,000 16,000 -1,943 -1,651 14,000 8,226 -874 -24 12,000 Operating -1,333 19.6% profit before Amortization 10,000 18.0% 8,000 6,000 11,301 Incremental profit Δ2,400 8,900 =29.2% 4,000 Incremental sales Δ8,2

  14. Slide 14: Forecasts for the Fiscal Year Ending March 2027 (Summary)

    Forecasts for the Fiscal Year Ending March 2027 (Summary) 14 Record-high sales & profits are expected due to steady growth in the number of maintenance contracts ⚫ In maintenance and repair, net growth in maintenance contracts is expected to continue. In modernization, growth in shipments and unit p

  15. Slide 15: Capital Expenditures and Depreciation Forecasts

    Capital Expenditures and Depreciation Forecasts 15 (Billions of yen) FY2026 (Actual) FY2027 (Forecast) Items C a p i t a l Investments related to PRIME, a Expenditure 1.94 1.90 remote inspection service, etc. Depreciation 1.58 1.80 Capital Expenditures and Depreciation (Billions of yen) 4.00 3.65 3.

  16. Slide 16: Cash Flow Management

    Cash Flow Management 16 Sharing free cash flow with stakeholders for sustainable growth ⚫ Capital investment peaked in FY 2023 and then begin to decline ⚫ Free cash flow should be on an upward trend due to business expansion as number of maintenance contracts increases and improve profitability EBIT

  17. Slide 17: Medium-term Management Plan: VISION2027

    Medium-term Management Plan: VISION2027 17 ◼ Basic Strategy ◼ Key Indicators Raise corporate value through growth, • As a company qualified for the TSE Prime Market, we aim to achieve sustainable growth and increase corporate value, prosper together with all stakeholders adapting to changes in the s

  18. Slide 18: VISION2027: Elevator Maintenance Market in Japan

    VISION2027: Elevator Maintenance Market in Japan 18 Elevator maintenance market is growing modestly (est. 1-2%) ⚫ Number of contracts grew to 1.18 million units as of March 2026 from 1.10 million as of March 2022 (20,000 net increase per year) ⚫ Share of independents grew modestly to 24% against 76%

  19. Slide 19: VISION2027: Growing Demand for Modernization

    VISION2027: Growing Demand for Modernization 19 Number of New Elevators Installed in Japan (units) 50,000 45,000 ⚫ New elevator construction was high 40,000 ⚫ These elevators are over 20 years old in operation 35,000 ⚫ Parts supply by OEMs is also being phased out 30,000 25,000 20,000 15,000 10,000

  20. Slide 20: VISION2027: Profitability Scenario

    VISION2027: Profitability Scenario 20 Reconciliation of 60 billion yen in Net Sales and Operating Margin of 20% with Growing Maintenance Contracts 1. Achieve net sales of 60 billion yen by expanding the market and increasing share in Japan ⚫ As of March 31, 2026, our domestic maintenance market shar

  21. Slide 21: VISION2027: Plan Progress - Investment

    VISION2027: Plan Progress ~ Investment 21 Domestic M&A and Capital Expenditures have Peaked, Positive FCF Trend Expected Capital Expenditure (CAPEX) Investment trends ◆ CAPEX peaked at 36.5B in FY2023 M&A for the development ◆ Future CAPEX will primarily consist of recurring investments of the base

  22. Slide 22: About Us

    22 About Us Copyright © japan elevator service holdings all rights reserved

  23. Slide 23: Corporate Data

    Corporate Data 23 Company Name Japan Elevator Service Holdings Co., Ltd. Established October 3, 1994 Listed Market TSE Prime Market (6544) since April 4, 2022 Tokyo Tatemono Nihonbashi Bldg. 5F, 1-3-13 Nihonbashi, Headquarters Chuo-ku, Tokyo 103-0027 CEO Katsushi Ishida (Born on March 25, 1966) Numb

  24. Slide 24: Corporate Philosophy: Safety Above Anything Else

    Corporate Philosophy 24 Safety Above Anything Else. Safety is our lifeblood above anything else We are committed to monitoring 24 hours a day, 365 days a year No Cutting Corners. We do not cut corners because people don’t see, and we work for safe operation Building on Trust. Building relationships

  25. Slide 25: Competitiveness Underpinned by Tangible and Intangible Assets

    Competitiveness is underpinned by an unrivalled accumulation of 25 tangible and intangible assets The only company that combines the ‘quality’ of OEM with the ‘reasonable price’ of independents New Hire from Graduates (person) R&D as % of 167 Qualified 154 153 net sales: 111 130 Inspectors: 1.4% (Av

  26. Slide 26: Growth in Net Sales

    Growth in Net Sales 26 Net sales of 57.6B 17% CAGR for the FY Mar 2026 65.0 3.1% 57.6 35.1% 49.3 42.2 61.8% 34.9 29.7 Maintenance & repair Modernization Other 24.5 21.3 17.9 15.3 13.5 11.8 10.4 Sep Sep Sep Sep Sep Sep Sep Sep Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2006 2007 2008 200

  27. Slide 27: Organic & Inorganic Expansion

    Organic & Inorganic Expansion 27 Jan 2017 Mar 2026 (At the time of listing) (now) [Organic Expansion] 38,000 elevators 126,840 elevators served served May 2017 Japan Elevator Service Kansai 64 offices Oct 2017 JES Innovation Center (JIC) 156 offices *as of May 1 934 employees Apr 2019 Oct 2020 Japan

  28. Slide 28: JES Innovation Centers

    JES Innovation Centers 28 ⚫ Capable of rapid troubleshooting nationwide with 9 parts centers, including JIC and JIK ⚫ Capable of responding to modernization demand ⚫ Established R&D center with test tower, the only one of its kind among independent companies, redundant control centers and extensive

  29. Slide 29: Our Business: (1) Maintenance & Repair

    Our Business: (1) Maintenance & Repair 29 Maintenance 1 Legal inspection stipulated in the Building Standards Act Services 2 Periodic inspection (cleaning, oiling, adjustment, replacement of consumables, etc.) 3 Monitoring services (including examination, remote monitoring, and remote inspection for

  30. Slide 30: Our Business: (1) Maintenance & Repair - Prime

    Our Business: (1) Maintenance & Repair – Prime 30 ⚫ In Japan, systems connecting OEM’ control centers with customers’ elevators via communication lines to enable remote monitoring and inspection 24/7 began to spread in What is PRIME? the early 2000s ⚫ In 2016, the Ministry of Land, Infrastructure, T

  31. Slide 31: Our Business: (2) Modernization

    Our Business: (2) Modernization 31 Modernization ⚫ The legal depreciable life of a lift is 17 years. The Life Cycle Cost Assessment Index Services planned service life proposed by the Building Maintenance and Preservation Association is 30 years ⚫ For some models, the OEM may stop supplying parts, s

  32. Slide 32: Our Business: (2) Modernization - Quick Renewal

    Our Business: (2) Modernization~Quick Renewal 32 Quick Renewal enables flexible modernization reflecting customer needs Major components are One time modernization replaced in stages, significantly reducing construction time and 1 costs 2 Replace control panel only Phase 1 (Compatible with 16 models

  33. Slide 33: Our Business: (2) Modernization - Escalators

    Our Business: (2) Modernization~ Escalators 33 ⚫ Escalators (ES) account for 5% of maintenance contracts and are expected to increase along with the increase in maintenance contracts ⚫ Established organization to train technical staff specialized in escalators to improve service quality ⚫ Commenced

  34. Slide 34: Our Business: (2) Modernization - New Elevators

    Our Business: (2) Modernization~ New Elevators 34 ⚫ Amid growing demand for elevator renovations, installation costs have risen due to labor shortages at construction sites and rising material costs. Lead times have also lengthened, leading to increased demand for JES-quality elevators ⚫ Prices for

  35. Slide 35: Our Business: (3) Other Services

    Our Business: (3) Other Services 35 LiftSPOT ◼ LiftSPOT is a service that combines digital signage and security camera. It helps prevent crime in elevators and provides a display for advertising and other content ◼ We obtained a patent for security camera with ad display function ◼ It has grown to b

  36. Slide 36: Our Business: (4) Overseas Business

    Our Business: (4) Overseas Business 36 Japan Elevator Service Hong Kong Company Japan Elevator Service India Private Limited Limited Established in Feb 2016 In Jul 2014 the Company established vehicle for research and investment in SE Asia Acquired 51% interest in Unieco of Vietnam in Nov 2021 Acqui

  37. Slide 37: Reference

    37 Reference Copyright © japan elevator service holdings all rights reserved

  38. Slide 38: ESG: Building a Strong Organization for Sustainable Growth

    ESG: Building a Strong Organization for Sustainable Growth 38 The business environment is becoming increasingly complex, with factors such as a declining birthrate, an aging population, rapid digitalization, and climate change leading to more extreme natural disasters. In this context, the Group has

  39. Slide 39: Environment Data

    Environment Data 39 GHG (CO2) Emissions etc. Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Waste Discharge Amount Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 SCOPE1(t-CO2e) 2,592 3,208 3,512 4,006 ★4,128.07 Non-recyclable waste discharge (t) Not calculated Not calculated 1,341 1,872 1,556 SCOPE2(t-C

  40. Slide 40: Social Data

    Social Data 40 Number of Employees Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Training Cost Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Male (person) 1,182 1,351 1,498 1,598 1,736 Training cost (Yen) 5,497,654 5,880,866 7,271,306 15,367,989 17,062,822 Female (person) 216 267 268 270 292 Per perso

  41. Slide 41: Governance Data

    Governance Data 41 Composition of the Board of Directors Mar 2022 Mar 2023 Mar 2024 Mar 2025 Mar 2026 Whistleblowing Related Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Number of Directors 9 8 8 5 5 Whistleblowing (cases) 9 15 15 11 20 Female 2 2 2 2 2 Compliance reports (cases) 0 0 7 17 12 Externa

  42. Slide 42: Financial Highlights (1/2)

    Financial Highlights (1/2) 42 Net sales Operating profit (Millions of yen) (Millions of yen) 57,601 11,010 49,375 8,624 42,216 34,907 6,821 29,751 5,010 24,521 21,339 4,113 17,900 3,612 13,544 15,326 2,717 2,034 1,351 611 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Ma

  43. Slide 43: Financial Highlights (2/2)

    Financial Highlights (2/2) 43 Net assets / Total assets (100 million yen) Net assets Total assets 401 354 325 290 253 249 204 203 167 142 136 106 114 105 117 78 39 51 20 28 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Net assets per share Earnings per sha

  44. Slide 44: Disclaimer and Caution Concerning Forward-looking Statements

    Disclaimer and Caution Concerning Forward-looking Statements 44 Disclaimer ⚫ Japan Elevator Service Holdings (the “Company”) has prepared these materials for your reference, so that you may understand the current status of the Company. ⚫ While these materials have been prepared based on generally-kn

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