Takachiho Koheki Co., Ltd. · TSE:2676

Takachiho Koheki — Investor Presentation (March 2025)

41 slides from Takachiho Koheki's investor presentation, March 2025

1. Slide 1: Medium-Term Management Plan 2025-2027

   Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Medium-Term Management Plan 2025-2027 Security. Solutions. Synergy. ~ Moving to the

2. Slide 2: Table of Contents

   Table of Contents Review of Previous Business Domain 01 Medium-Term Management Plan 05 Electromechanics 02 Vision for 2030 06 Business Strategy Overview of New 03 Medium-Term Management Plan 07 Sustainable Management Business Domain 04 Business Security 08 Capital Strategy Note: The figures in this

3. Slide 3: 1. Review of Previous Medium-Term Management Plan

   1. Review of Previous Medium-Term Management Plan ©TAKACHIHO KOHEKI CO.,LTD. 3

4. Slide 4: Summary of Previous Medium-Term Management Plan (Numerical Targets)

   1. Review of Previous Medium-Term Management Plan Summary of Previous Medium-Term Management Plan (Numerical Targets) The targets of the Medium-Term Management Plan are expected to be achieved, driven by the growth in the Electronics Business. Evaluation Targets Results (incl. forecasts) Net sales p

5. Slide 5: Achievements and Challenges

   1. Review of Previous Medium-Term Management Plan Achievements and Challenges Stable revenues growth driven by KPI achievement in loyal customer strategy and growth of service businesses, while challenges remain in creation of future core businesses. Growth of Service Creation of Loyal Customer Stra

6. Slide 6: 2. Vision for 2030

   2. Vision for 2030 ©TAKACHIHO KOHEKI CO.,LTD. 6

7. Slide 7: Vision for 2030: Creating a Safe and Secure Society

   2. Vision for 2030 Vision for 2030 Creating a Safe and Secure Society Becoming the 1st Choice Solution Provider and Creating a Future Together with Our Customers Takachiho Koheki’s Strengths Takachiho Koheki’s Business Segments • Discerning eye for market needs • Technical expertise delivering new v

8. Slide 8: Medium- to Long-Term Growth Vision

   2. Vision for 2030 Medium- to Long-Term Growth Vision <Takachiho Koheki’s Vision for 2030> ◼ Purpose Using the power of technology and Consideration for all, Creating the “Essentials of the Future” Creating a safe and secure society in different environments. Becoming the 1st Choice Solution Provide

9. Slide 9: 3. Overview of New Medium-Term Management Plan

   3. Overview of New Medium-Term Management Plan ©TAKACHIHO KOHEKI CO.,LTD. 9

10. Slide 10: Overview of New Medium-Term Management Plan

    3. Overview of New Medium-Term Management Plan Overview of New Medium-Term Management Plan <Medium-term slogan> Security. Solutions. Synergy. ~ Moving to the Cutting Edge of Evolution with Business Security and Electromechanics ~ Basic Policy: “Business growth through focused investments in focused

11. Slide 11: Medium-Term Management Targets (Basic Policies and Numerical Targets)

    3. Overview of New Medium-Term Management Plan Medium-Term Management Targets (Basic Policies and Numerical Targets) (Millions of yen) Note: The figures in this document are based on the number of shares prior to the stock split that will become effective on June 1, 2025. “Business growth through fo

12. Slide 12: Segment Classification Revision (From Q1 of FY3/26)

    3. Overview of New Medium-Term Management Plan Segment Classification Revision (From Q1 of FY3/26) With solid progress in expanding the cloud services business, certain segments will be consolidated and renamed to clarify the target market. (Current Segment) (New Segment) (Business Description) *Cha

13. Slide 13: Overview of Business Strategy

    3. Overview of New Medium-Term Management Plan Overview of Business Strategy Business Security Electromechanics 1 Evolution of Loyal Strengthen integration of two business domains to further enhance Customer Strategy customer loyalty KPIs Providing multi-product services across organizations (1) Num

14. Slide 14: Medium-Term Management Targets (Net Sales and Operating Profit by Segment)

    3. Overview of New Medium-Term Management Plan Medium-Term Management Targets (Net Sales and Operating Profit by Segment) (Millions of yen) Business Security* Electromechanics Net sales CAGR approx. 7% Net sales CAGR approx. 12% Operating profit ratio 9.3% (+1.3 pts) Operating profit ratio 7.9% (+0.

15. Slide 15: 4. Business Domain (Business Security)

    4. Business Domain (Business Security) ©TAKACHIHO KOHEKI CO.,LTD. 15

16. Slide 16: Business Security Market

    4. Business Domain (Business Security) Business Security Market With total security solutions and one-stop services from consulting to after-sales support, we aim to become “Takachiho Koheki, the go-to provider for Business Security” Total Security Solutions Advanced technology and Shoplifting (loss

17. Slide 17: Positioning in Security Field

    4. Business Domain (Business Security) Positioning in Security Field With a lineup of both physical and cyber security solutions, along with strong technical service capabilities, we have established a unique position in the security field. Business Security Lineup: Extensive (Physical x Cyber) Spec

18. Slide 18: Business Security Growth Strategy

    4. Business Domain (Business Security) Business Security Growth Strategy Realizing Safety and Security in Physical and Cyberspace through Total Security Solutions ◼ Net sales by segment* (Millions of yen) ◼ Operating profit by segment* (Millions of yen) 16,800 13,800 3,200 Global 3,000 5,400 Retail

19. Slide 19: 5. Business Domain (Electromechanics)

    5. Business Domain (Electromechanics) ©TAKACHIHO KOHEKI CO.,LTD. 19

20. Slide 20: Electromechanics Market

    5. Business Domain (Electromechanics) Electromechanics Market With strengths in both electronic and mechanical components , we provide comprehensive product lineup and technical services in a one -stop solution. Electronics Mechanics (Semiconductors / Electronic components) (Mechanical components) S

21. Slide 21: Electromechanics Growth Strategy

    5. Business Domain (Electromechanics) Electromechanics Growth Strategy Expanding Sales Scale in the Semiconductor Business and Increasing Value Added by Strengthening Technology Development Capabilities ◼ Net sales by segment (Millions of yen) ◼ Operating profit by segment (Millions of yen) 18,200 1

22. Slide 22: Semiconductors Business (Electronics) Growth Strategy

    5. Business Domain (Electromechanics) Semiconductors Business (Electronics) Growth Strategy The semiconductor business aims for further growth by strengthening its sales structure, acquiring new distribution contracts, and expanding globally. Customers Suppliers Our Company (Domestic/Overseas) Manuf

23. Slide 23: Unique Electromechanics Solutions

    5. Business Domain (Electromechanics) Unique Electromechanics Solutions Enhancing the Convenience, Safety, and Design of Customer Products through Unique Electronics x Mechanics Solutions Case 1: Smart Light Control Film [Target Customer] Housing equipment manufacturer, Medical and Nursing care faci

24. Slide 24: 6. Business Strategy

    6. Business Strategy ©TAKACHIHO KOHEKI CO.,LTD. 24

25. Slide 25: Basic Strategy 1: Evolution of Loyal Customer Strategy

    6. Business Strategy Basic Strategy 1: Evolution of Loyal Customer Strategy Introduction of matrix organization to strengthen internal cross-border cooperation Provide multi-product services across organizations to deepen customer engagement ◼ Loyal Customer Strategy KPIs Loyal Customers Offering Re

26. Slide 26: Basic Strategy 2: Growth of service business

    6. Business Strategy Basic Strategy 2: Growth of service business Evolve from conventional “selling goods” to “designing business” thinking Create new solutions with customer support to increase value added Design business to create new solutions Address Address • Product x Product Customer Social c

27. Slide 27: Basic Strategy 3: Strengthen new business and global expansion

    6. Business Strategy Basic Strategy 3: Strengthen new business and global expansion Strengthen new businesses to reach 5% of the Group’s ordinary profit in five years Toward commercialization of new businesses Cloud-based crime-prevention information service Cyber-security <EMLINX> • Development of

28. Slide 28: Basic Strategy 4: Implement 6.0 billion yen growth investment

    6. Business Strategy Basic Strategy 4: Implement 6.0 billion yen growth investment Set up a 6.0 billion yen growth investment to accelerate business growth through focused investments in focused businesses Strengthen our business foundation Accelerate Create new businesses and business models Proact

29. Slide 29: 7. Sustainable Management

    7. Sustainable Management ©TAKACHIHO KOHEKI CO.,LTD. 29

30. Slide 30: Environment and Governance

    7. Sustainable Management Environment and Governance Realizing Environmentally Conscious and Sustainable Society Create a people- and planet-friendly future by solving social issues through business and contributing to the sustainable development of industry and society 1. Responding to Environmenta

31. Slide 31: Initiatives to Strengthen Human Capital

    7. Sustainable Management Initiatives to Strengthen Human Capital Realizing the Purpose Achievements of Medium-Term Management Plan Using the power of technology and consideration for all, creating the “Essentials of the Future” in different environments. Net income 2.0 billion yen, ROE 10% or highe

32. Slide 32: Initiatives to Strengthen Human Capital

    7. Sustainable Management Initiatives to Strengthen Human Capital The Employee Opinion Survey score has been steadily improving, with a target of 4.0 points or higher by FY3/28. ◼ Past initiatives and future plans to address issues identified in the Employee Opinion Survey Previous medium-term New m

33. Slide 33: 8. Capital Strategy

    8. Capital Strategy ©TAKACHIHO KOHEKI CO.,LTD. 33

34. Slide 34: Capital Policy

    8. Capital Strategy Capital Policy To balance growth investment and shareholder return while maintaining financial soundness, the Company is steadily improving profitability of capital and its balance sheet. Profitability of Capital Shareholder Return Financial Soundness FY3/26 Dividend payout ratio

35. Slide 35: Capital Policy / Business Portfolio Management

    8. Capital Strategy Capital Policy / Business Portfolio Management Positioning businesses based on two axes: “Market Attractiveness (Sales Growth)” and “the Company’s Strengths (Profitability / ROIC)” ◼ Actively investing in the focused businesses using investment framework ◼ Implementing structural

36. Slide 36: Capital Policy / Cash Allocation

    8. Capital Strategy Capital Policy / Cash Allocation Executing growth investment by leveraging operating cashflow, improving working capital, and utilizing interest-bearing debt • Investment funds are sourced from cash on hand, operating cashflow, working capital Investment improvements, and bank bo

37. Slide 37: Shareholder Return (Dividends and Shareholder Benefit System)

    8. Capital Strategy Shareholder Return (Dividends and Shareholder Benefit System) 1. Dividend Based on the capital policy of “Balancing Growth Investment and Shareholder Return”: Policy • Driving business growth by proactive investments while maintaining financial soundness • 100% dividend payout ra

38. Slide 38: Appendix

    Appendix ©TAKACHIHO KOHEKI CO.,LTD. 38

39. Slide 39: Upcoming IR Schedule

    [Appendix] Upcoming IR Schedule Medium-Term Management Plan Briefing (From Fiscal Years Ending March 2026 to March 2028) Scheduled to be held online on Friday, March 28, 2025, from 10:30 to 11:30 (JST) Financial Results Announcement for Fiscal Year Ending March 31, 2025 (Full-year) Scheduled for Tue

40. Slide 40: Company Profile

    [Appendix] Company Profile Company Name Takachiho Koheki Co., Ltd. Securities Code TSE Prime (code: 2676) Established March 13, 1952 Head Office Address YOTSUYA TOWER 7F, 1-6-1 Yotsuya, Shinjuku-ku, Tokyo Representative Takanobu Ide, President and Chief Executive Officer Number of Employees Consolid

41. Slide 41: Precautions Regarding this Document

    Precautions Regarding this Document • This document contains forward-looking statements. Such statements are not guarantees of future results and involve risks and uncertainties. Please note that future results may differ due to changes in the business environment and other factors. • This document

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