Takeuchi Mfg.co., Ltd. · TSE:6432

Takeuchi Mfg.co — FY2023 Earnings Presentation

43 slides from Takeuchi Mfg.co's earnings presentation, Apr 22, 2024

  1. Slide 1: Presentation Materials for the Fiscal Year Ended February 2024

    Presentation Materials for the Fiscal Year Ended February 2024 April 22, 2024 TAKEUCHI MFG. CO., LTD. (Securities code: 6432) © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

  2. Slide 2: Agenda

    ▶ FY2023 Consolidated Results ▶ FY2024 Consolidated Forecast ▶ Progress of the Third Medium-Term Business Plan ▶ Reference Materials 1 © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

  3. Slide 3: Summary of FY2023 Earnings Results

    Summary of FY2023 Earnings Results (1) Sales volume growth in both the US and Europe  North American sales volume increased +6.1% (1st H: +3.6%, 2nd H: +8.8%, YoY) Although the housing market entered an adjustment phase due to continued high interest rates and housing prices, latent demand for hous

  4. Slide 4: Net Sales, Orders Received, and Order Backlogs by Half Year

    Summary of FY2023 Earnings Results (3) Net Sales, Orders Received, and Order Backlogs by Half Year ■ Net sales (bn) Orders exceeding ■ Orders received (bn) production capacity 92.9 87.3 105 105.1 ■ Order backlogs (bn) >> backlogs increase 86 130.8 63.4 107.4 66.6 116.7 Decline 74.2 Normalization of

  5. Slide 5: Consolidated Financial Highlights for FY2023

    Consolidated Financial Highlights for FY2023 FY2022 FY2023 (Millions of yen) Sales Full year Sales ratio 1st half 2nd half Full year Change (%) ratio ■ Net sales 178,966 - 105,176 107,451 212,627 - +33,661 +18.8% ■ Operating profit 21,221 11.9% 16,969 18,327 35,296 16.6% +14,075 +66.3% ■ Ordinary pr

  6. Slide 6: Quarterly Net Sales and Operating Profit

    Quarterly Net Sales and Operating Profit (Millions of yen) 53,039 52,137 53,655 53,795 50,000 46,892 46,039 42,414 43,619 40,896 40,000 33,332 33,989 32,674 Net sales 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 9,674 10,000 8,542 8,426 8,652 Operating 8,000 7,268 5,755 5,355 profit 6,

  7. Slide 7: Earnings by Region for FY2023

    Earnings by Region for FY2023 FY2022 FY2023 +(Millions of yen) Full year Sales ratio 1st half 2nd half Full year Sales ratio Change (%) ■ Japan 2,036 1.1% 1,094 1,015 2,109 1.0% +73 +3.6% ■ North America 98,506 55.0% 56,610 58,554 115,164 54.2% +16,658 +16.9% ■ Europe 73,906 41.3% 44,318 45,129 89,4

  8. Slide 8: Geographic Segment Information and Results for FY2023

    Geographic Segment Information and Results for FY2023 FY2022 FY2023 (Millions of yen) Full year Profit ratio 1st half 2nd half Full year Profit ratio Change (%) Japan Net sales 60,658 － 36,166 39,238 75,404 － +14,745 +24.3% Segment profit 13,209 21.8% 12,458 18,266 30,724 40.7% +17,514 +132.6% USA N

  9. Slide 9: Factors of Increase/Decrease in Operating Profit (FY2023)

    Factors of Increase/Decrease in Operating Profit (FY2023 Full year) Exchange rates considering unrealized profits* Cost of sales +2,256M Transportation costs: -7,118M (Millions of yen) USD 128.17 yen →138.98 yen - Other than US : +1,369M └ Decrease in unit price: -6,971M GBP 161.56 yen →167.65 yen -

  10. Slide 10: Consolidated Balance Sheets

    Consolidated Balance Sheets (As of February 29, 2024) As of Feb. 28, 2023 As of Feb. 29, 2024 Composition Composition (Millions of yen) Balance ratio Balance ratio Change (%) Cash and deposits 43,995 27.7% 55,175 27.8% +11,180 +25.4% Notes and accounts receivable - trade 35,739 22.5% 44,572 22.5% +8

  11. Slide 11: Consolidated Statements of Cash Flows (FY2023)

    Consolidated Statements of Cash Flows (FY2023, Results) (Millions of yen) (7,771 ) Cash and cash equivalents at end of +24,640 (4,714 ) period (991 ) Cash and cash equivalents at end of period 54,682 43,519 +11,162 million yen As of February 28, Operating CF Investment CF Financial CF Effect of exch

  12. Slide 12: Agenda

    ▶ FY2023 Consolidated Results ▶ FY2024 Consolidated Forecast ▶ Progress of the Third Medium-Term Business Plan ▶ Reference Materials 11 © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

  13. Slide 13: FY2024 Earnings Forecasts (Full Year)

    FY2024 Earnings Forecasts (Full Year) (1) Net sales forecast… Increase Despite a decline in Europe, performance will remain strong in North America  North American sales volume increased +17.2% (1st H: +15.6%, 2nd H: +18.9%, YoY)  The housing market has softened temporarily, but housing demand is

  14. Slide 14: Expected Consolidated Financial Highlights for FY2024

    Expected Consolidated Financial Highlights for FY2024 FY2023 FY2024 (forecast) (Millions of yen) Full year Sales ratio 1st half 2nd half Full year Sales ratio Change (%) ■ Net sales 212,627 - 112,000 112,000 224,000 - +11,372 +5.3% ■ Operating profit 35,296 16.6% 21,000 17,500 38,500 17.2% +3,203 +9

  15. Slide 15: Earnings Forecast by Region for FY2024

    Earnings Forecast by Region for FY2024 FY2023 FY2024 (forecast) (Millions of yen) Full year Sales ratio 1st half 2nd half Full year Sales ratio Change (%) ■ Japan 2,109 1.0% 680 620 1,300 0.6% (809) (38.4)% ■ North America 115,164 54.2% 64,580 66,240 130,820 58.4% +15,655 +13.6% ■ Europe 89,448 42.1

  16. Slide 16: Factors of Increase/Decrease in Operating Profit (FY2024 Forecast)

    Factors of Increase/Decrease in Operating Profit (FY2024 Full Year Forecast) (Millions of yen) Exchange rates considering unrealized profits* Cost of sales +671M Transportation costs: +1,641M USD 138.98 yen →142.88 yen - Other than US : +461M └ Increase in unit price: +2,100M GBP 167.65 yen →185.01

  17. Slide 17: Agenda

    ▶ FY2023 Consolidated Results ▶ FY2024 Consolidated Forecast ▶ Progress of the Third Medium-Term Business Plan ▶ Reference Materials 16 © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

  18. Slide 18: Slogans, Numerical Targets

    Slogans, numerical targets Net sales（left） Operating profit (right) Increase Sales by 100 billion Yen Net sales +59.0% by Power Up, Speed Up, and Scale Up 250.0 CAGR +16.7% (Average growth rate) 240.0 (Increase consolidated net sales from 140.8 billion yen to 240.0 billion yen) 224.0bn 212.6 38.5bn

  19. Slide 19: Our Position in the Marketplace

    Our Position in the Marketplace Track Loaders Compact excavators Hydraulic excavators 6 tonnes 15 tonnes 20 tonnes 30 tonnes Product weight Volume zone for large Sales zone for our products construction machinery Typical applications of our products Strengths of Takeuchi’s products Urban and small-s

  20. Slide 20: Medium- to Long-Term Outlook (Existing Solid Product Demand)

    Medium- to Long-Term Outlook (Existing Solid Product Demand) Housing Electricity Gas Sewer Communica- Transpor- Infrastructure is aging in many countries, tion networks tation and maintenance work is required. Infrastructure (Lifelines)  US Faced the aging problem in the 1980s, as infrastructure de

  21. Slide 21: US Housing Starts

    US Housing Starts Source: U.S. Census Bureau, Department of Commerce (Thousand units) Annualized averages 1,606 1,551 1,397 1,423 1,342 1,247 1,292 1,177 1,205 1,107 US housing still strong 1,001 despite slowdown 900 928 in 2023 784 586 612 554 Start of financial crisis in Sept. COVID-19 2008 led to

  22. Slide 22: Medium- to Long-Term Outlook (Projected Product Demand)

    Medium- to Long-Term Outlook (Projected Product Demand)  Green Transformation (GX) (Social and economic transformation toward decarbonization)  From fossil fuel-derived energy to renewable energy (Innovation of power generation infrastructure) Increasing demand for infrastructure construction  Ex

  23. Slide 23: Power Up: Investment in Human Capital

    Power Up Investment in Human Capital Basic Policy: ̶ Human capital is the source of corporate strength, and distributing to human capital is an investment in the future. ̶ Securing the human resources necessary to achieve the goal of the Medium-Term Business Plan  Investment amount in Human Capital

  24. Slide 24: Speed Up: Product Development

    Speed Up Speed Up Product Development  Connected Improving customer satisfaction by adding features to TFM and Takeuchi Connect  Autonomous Implementation of “a feature to perform some tasks automatically”  Sharing & Services  Electric Expansion of battery powered excavator lineup Development of

  25. Slide 25: Acceleration of Product Development

    Speed Up Acceleration of Product Development  Expanding lineup of battery-powered compact excavators 1-tonne class and 3.5-tonnes class → Demonstrations with prototype models have begun in Japan/Europe/North America Note: Start of sales is yet to be determined 1 tonne 2 tonnes 3.5 tonnes TB10e TB20

  26. Slide 26: TB20e Among First Certified GX Construction Machines (MLIT)

    TB20e Among First Certified GX Construction Machines (MLIT)  Challenges in electrifying construction machinery 1. Battery cost reduction – More expensive than diesel (generally 2-3 times) 2. Battery performance improvement – Longer operating time, shorter charging time 3. Charging infrastructure de

  27. Slide 27: Expansion of Production Capacity and Sales Volume

    Scale Up Expansion of Production Capacity and Sales Volume  Production Capacity 148% Track loaders ■ Track loaders 138% US Factory started production of track loaders ■ Excavators (compact, hydraulic) using SKD* method in September 2022. 140% 125% * Semi knock down: a production method in which the

  28. Slide 28: Initiatives in the US and Europe

    Initiatives in the US and Europe Dealer Summit at Takeuchi US (held in Texas) ◇ When: March 25-26, 2024 ◇ Number of participants: 52 companies (85 people) + 25 Takeuchi US staff Dealer of the year INTERMAT Paris 2024 Held once every 3 years; cancelled in 2021 due to pandemic Takeuchi France exhibit

  29. Slide 29: Capital Investment Plan

    Capital Investment Plan ◇ FY2024 Capital Investment Plan Breakdown Home Office ¥3.5 bn Jigs, molds, and equipment maintenance (Millions of yen) Capital investment Aoki Factory and renewal 1.3 bn 10,000 Depreciation Home office parts center renewal & expansion 1.0 bn Factory expansion & production st

  30. Slide 30: Management with Cost of Capital and Stock Price in Mind

    Management with Cost of Capital and Stock Price in Mind Cost of Equity ① Roughly capture the return (%) expected by shareholders/investors We recognize cost of equity to be 8% CAPM Risk-free rate Beta value Market risk premium 1% 1.2 6% ② Set cost of equity at the hurdle rate of ROE (ROE＞Cost of equ

  31. Slide 31: Shareholder Return and Dividend Payout Ratio

    Shareholder Return and Dividend Payout Ratio Basic Policy: Strive to maintain a stable dividend payout with a target consolidated dividend payout ratio of 30% in mind, while securing the internal reserves necessary to strengthen the management structure and develop future businesses Share buybacks:

  32. Slide 32: Agenda

    ▶ FY2023 Consolidated Results ▶ FY2024 Consolidated Forecast ▶ Progress of the Third Medium-Term Business Plan ▶ Reference Materials 31 © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

  33. Slide 33: Corporate Policies and Business Philosophy

    Corporate Policies and Business Philosophy With deep sensitivity, we will develop products that Creation meet or exceed needs. Corporate With dreams and youthful drive, we will take bold Challenge Policies action toward higher goals. With a commitment to harmony and compassion, we Cooperation will s

  34. Slide 34: Corporate Profile

    Corporate Profile Name TAKEUCHI MFG. CO., LTD. Main Products Toshiya Takeuchi Compact excavators and hydraulic Representative President and Representative Director excavators ̶ We developed and began production of the 205, Uwadaira, Sakaki-machi, world’s first compact excavator (September Home Offic

  35. Slide 35: Business Performances

    Business Performances Forecast (Millions of yen) FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Change Japan 813 2,508 2,832 2,036 2,109 1,300 (809) North America 53,222 52,248 68,706 98,506 115,164 130,820 +15,655 Europe 60,313 54,988 65,749 73,906 89,448 86,780 (2,668) Asia 384 181 153 495 188 130 (58)

  36. Slide 36: Product Lineup

    Product Lineup ～ ～ 1 2 3 4 5 6 7 8 9 15 (tonnes) Compact excavators and hydraulic excavators Compact excavators Hydraulic excavators Battery operated TB20e Standard models TB219 TB2150 TB216 TB225 TB290 TB2150R [From now on] Priority will be given to electrification of TB320 TB235-2 TB250-2 TB290-2

  37. Slide 37: Market Outlook

    Market Outlook 350 S&P/Case-Shiller Home Price Index <20-city composite Jan. 2000=100> 300 250 200 *seasonally adjusted 150 Sept. Sept. Sept. Sept. Sept. May. Jan. Mar. May Jan. Mar. May Jan. Mar. May Jan. Mar. May Jan. Mar. May Jan. Mar. Sep. Nov. Nov. Nov. Nov. Nov. Jul. Jan. Mar. Nov. July July J

  38. Slide 38: Market Outlook

    Market Outlook ̶ From February to April 2020, housing demand plummeted due to the COVID-19 pandemic. ̶ Since May 2020, economic activity has resumed, achieving a V-shaped recovery and maintaining a high level after that. ̶ Since March 2022, demand for housing had been weak due to US interest rate hi

  39. Slide 39: Production Volume Trends

    Production Volume Trends By Month By Fiscal Year Decrease in operating Decrease in Decrease in 125% days due to Golden operating days due operating days due Week holidays to summer vacation to year-end vacation 120% Nov 111% Mar Apr May Jun Jul Aug Sep Oct 113% Dec Jan Feb 104% 91% 82% 102% 93% 82%

  40. Slide 40: List of Material Issues

    List of Material Issues # E S G SDGs Social Issues Theme Goal 1 ○ 13 Develop, manufacture, and sell battery-powered compact excavators 1 2 ○ 13 Mitigate climate change Reducing GHG emissions at factories 2 Improving factory energy efficiency 3 ○ 7 13 Expanding the use of renewable energy 2 4 ○ 12 Re

  41. Slide 41: Climate Change Initiatives (Response Measures)

    Climate Change Initiatives (Response Measures) :Direction of Change Large influence Medium influence Small influence Risk Items Assumptions and background for Influencing Factor 2030年の想定・背景 Business Impact/Financial Impact Measures Impact classification 2030 (2℃ scenario) （２℃シナリオ） (Parameters) (Larg

  42. Slide 42: TAKEUCHI MFG. CO., LTD.

    TAKEUCHI MFG. CO., LTD. Corporate Planning Section and ESG Promotion Section, Business Management Dept. TEL: +81-(0)268-81-1200 FAX: +81-(0)268-81-1127 E-mail: [email protected] Forecasts are based on information that was available when this document was prepared. The forecast is vulnerable to man

  43. Slide 43: © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

    © 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Takeuchi Mfg. — FY2023 Earnings Presentation on 6ix