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

Japan Elevator Service — H1 FY Mar 2023 Earnings Presentation

34 slides from Japan Elevator Service's earnings presentation, Nov 14, 2022

  1. Slide 1: First Half Results for FY Mar 2023

    November 14, 2022 First Half Results for FY Mar 2023 Japan Elevator Service Holdings (TSE Prime Market : 6544) < 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 ori

  2. Slide 2: Contents

    Contents 2 １ Summary ２ FY Mar 2023 First Half Results 3 FY Mar 2023 Financial Forecasts ４ Topics Copyright © japan elevator service holdings all rights reserved

  3. Slide 3: Summary

    3 Summary Copyright © japan elevator service holdings all rights reserved

  4. Slide 4: Summary

    Summary 4 【Overview of 1H FY Mar-2023 】 • Elevators under maintenance contract at the end of Sep was 85,400, up 6,400 compared to previous fiscal year end • Net sales in Maintenance and Preservation Services business was ¥11,184M (+110.6% YoY), Modernization Services business ¥4,287M (+123.1%) • Rec

  5. Slide 5: Summary: Overview for the Quarter

    Summary: Overview for the Quarter 5 Overview Maintenance ・End-Sep 2022 elevators under maintenance contracts (Japan): around 85,400 and Preservation ・1H net increase: around 6,400 Services: ・Recorded highest organic growth against previous year when we made series of acquisitions One-time ・1H elevat

  6. Slide 6: FY Mar 2023 First Half Results

    6 FY Mar 2023 First Half Results Copyright © japan elevator service holdings all rights reserved

  7. Slide 7: FY Mar 2023 First Half Results (Summary)

    FY Mar 2023 First Half Results (Summary) 7 (million yen) FY Mar 2022 2Q FY Mar 2023 2Q Forecast YoY (as of Comments Ratio to Ratio to (%) May 12, Actual sales Actual sales 2022) (%) (%) Maintenance & Preservation Services net sales up ¥1,072mn Net sales 13,906 100.0 15,987 100.0 115.0 15,500 Moderni

  8. Slide 8: FY Mar 2023 First Half Results (Sales by Business)

    FY Mar 2023 First Half Results (Sales by Business) 8 (million yen) FY Mar 2022 2Ｑ FY Mar 2023 2Ｑ Forecast YoY (as of Comments (%) May 12, Ratio Ratio 2022) Actual Actual (%) (%) Growth in net sales accompanying Maintenance and Preservation Services 10,112 72.7 11,184 70.0 110.6 11,100 increase in el

  9. Slide 9: Factors Contributing to Changes in Operating Profit (YoY)

    Factors Contributing to Changes in Operating Profit (YoY) 9 Increase Decrease factor （¥mn） factor Copyright © japan elevator service holdings all rights reserved

  10. Slide 10: FY Mar 2023 Second Quarter Results (B/S)

    FY Mar 2023 Second Quarter Results (B/S) 10 (million yen) FY Mar2022 2Q FY Mar 2022 FY Mar 2023 2Q YoY Ratio Ratio Ratio Comments Actual Actual Actual (%) (%) (%) (%) Current assets 8,639 38.9 9,822 38.8 10,270 38.0 104.6 Cash and deposits 1,862 8.4 2,179 8.6 2,271 8.4 104.2 Notes and accounts 3,628

  11. Slide 11: 1H: Impact of Delayed Booking of Preservation Work Revenue

    1H: Impact of Delayed Booking of Preservation Work Revenue 11  Global semiconductor shortage caused delayed completion on preservation projects in 1H  Shortage in parts supply caused sales of preservation project delayed to 2H or next-year beyond, but client contracts are still firm; project order

  12. Slide 12: FY Mar 2023 Financial Forecasts

    12 FY Mar 2023 Financial Forecasts Copyright © japan elevator service holdings all rights reserved

  13. Slide 13: FY Mar 2023 Financial Forecasts (Summary)

    FY Mar 2023 Financial Forecasts (Summary) 13 1H 2H Full year Unit: million FY Mar 2023 FY Mar FY Mar 2023 FY Mar FY Mar 2023 FY yen; % FY FY Mar 2023 Result FY 2023 Forecast 2023 Forecast Mar Mar 2022 Forecast Mar 2022 Forecast Forecast 2022 YoY (initial) YoY (initial) YoY Net sales 13,906 15,500 15

  14. Slide 14: FY Mar 2023 Financial Forecasts (Sales by Business)

    FY Mar 2023 Financial Forecasts (Sales by Business) 14 1H 2H Full year FY Mar FY Mar FY mar Unit: million yen; % FY FY Mar 2023 FY 2023 FY Mar 2023 FY 2023 FY Mar 2023 2023 Mar 2022 Result Mar 2022 Forecast Forecast Mar 2022 Forecast Forecast Forecast (initial) (initial) Amount Amount Amount YoY Amo

  15. Slide 15: Topic: Impact of Delayed Booking of Maintenance Work Revenue

    Topic: Impact of Delayed Booking of Maintenance Work Revenue 15  Ongoing global chip shortage to cause delayed project completions again in 2H  Meanwhile, solid rise in elevators under management underpinning firm number of contracts for maintenance work; current outlook for end-Mar 2023 orders is

  16. Slide 16: FY Mar 2023 Financial Forecasts (Depreciation, Capex)

    FY Mar 2023 Financial Forecasts (Depreciation, Capex) 16 (100 million yen) FY Mar 2022 FY Mar 2023（Forecast） Comments Depreciation 9.2 12.2 Investment in Capex 28.4 33.8 remote inspection service PRIME Trends in depreciation and capex (100 million yen) 40 33.8 30.0 30 28.4 25.8 23.8 Depreciation Cap

  17. Slide 17: Dividends

    Dividends 17 FY2021/3 FY2022/3 FY2023/3 YoY Actual Actual Plan Annual dividend amount ¥12 ¥14 ¥15 +¥1 Up Year-end dividend ¥12 ¥14 ¥15 +¥1 Total dividend amount ¥1,062million ¥1,242million ¥1,331million +¥89million Payout ratio (consolidated) 43.6％ 45.6％ YoY 44.4% △1.2P 107% DOE (consolidated) 13.4％

  18. Slide 18: Topics

    18 Topics Copyright © japan elevator service holdings all rights reserved

  19. Slide 19: Enhancing Corporate Structures Ahead of National Rollout

    Enhancing Corporate Structures Ahead of National Rollout 19  We are increasing locations and headcount in preparation for greater domestic market share  Added 4 locations in the first half to 128, including offices opened in new areas of Akita, Kumamoto  Headcount up 150 from end of March, mainly

  20. Slide 20: Net Increase in Maintenance Contracts

    Net Increase in Maintenance Contracts 20  Net increase by end-Sep 2022 of approx. 6,400, maintenance contracts at a solid 85,400 approx.  Group cumulative net increase in 1H down YoY owing to high M&A-driven net growth in prior year. However, organic net growth (excl. M&A) considerably above prior

  21. Slide 21: Topics: Promotion of Refurbishment Business

    Topics: Promotion of Refurbishment Business 21 Refurbished products are products collected during parts replacement, then repaired and refurbished. Components that pass our QA testing are certified as JES Authorized Refurbished Parts. JES Group is focusing on obtaining recycled parts and promoting g

  22. Slide 22: New Domains (LiftSPOT)

    New Domains (LiftSPOT) 22  LiftSPOT is a service that combines digital signage with security cameras, helping prevent crime in elevators while providing a display for advertising and other content (patent acquired for security camera with ad display function).  Audio-enabled digital signage media

  23. Slide 23: ESG Initiatives

    ESG Initiatives 23 We started disclosing ESG initiatives at the results briefing in May 2022. It is crucial to enhance governance structures, strengthen human capital, and give due consideration to climate change and other environmental issues, so as to achieve sustainable growth as well as raise ec

  24. Slide 24: References

    24 References Copyright © japan elevator service holdings all rights reserved

  25. Slide 25: Medium-Term Plan: VISION2027

    Medium-Term Plan: VISION2027 25  Basic Strategy  Key Indicators • Aim to accelerate growth and double the number of elevators Raise corporate value through growth, under contract to more than 150,000 over five years from prosper together with all stakeholders now on Double the number of elevators

  26. Slide 26: VISION2027: Growth Targets: Share of Domestic Market

    VISION2027：Growth Targets : Share of Domestic Market 26 Aiming to double the domestic market share FY Mar 2022 VISION2027 JES JES Approx.7% Target over13% Independent Independent Approx.20% Approx.25% JES Others JES Approx. 13% Others Approx.12% Domestic Domestic Share Share Manufacturer-affiliated

  27. Slide 27: VISION2027: Growth Targets: Share Growth in Japan

    VISION2027：Growth Targets: Share Growth in Japan 27  Carried out upfront investment, focused especially on recruitment, to acquire share in West Japan and other new regions  Kansai JIC (tentative name) completion slated for March 2024, should drive growth in sales, margins, service capacity  Oper

  28. Slide 28: VISION2027: Profitability Targets (Operating Profit Margin)

    VISION2027: Profitability Targets (Operating Profit Margin) 28 Productivity-driven profitability improvements through increase in elevators under contract, staff training, digitalization 1. Sales growth through increase in elevators under OPM (%) Trends contract OPM (¥100mn) Operating Margin（%） • Wi

  29. Slide 29: VISION2027: Shareholder Return Targets

    VISION2027: Shareholder Return Targets 29 Stable increase in EPS and DPS; dividend payout ratio of 40% or more Adjusted EPS (¥) Dividend Payout Ratio (%) 30.7 45.6 27.5 43.6 42.8 41.3 21.0 15.8 10.6 4.2 33.1 FY17/3 FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 23.6 Adjusted DPS (¥) Keep dividend payout 14.0 ra

  30. Slide 30: Reference: Our Growth

    Reference: Our Growth 30 ¥29.7bn End of Sep. 2022 Elevators under maintenance contracts Approx. 79,000 Elevators under ¥24.5bn Elevators under maintenance contracts maintenance contracts Approx. 54,800 in Japan Approx. 85,400 Listed Listed TSE Mothers TSE 1st section Net sales Elevators under mainte

  31. Slide 31: Reference: Future Business Development

    Reference: Future Business Development 31 (Aiming to Build Up Global Standard Business) Domestic Overseas (mainly Southeast Asia) Bu sine ss Now Onwards Now and Onwards Steady increase in Aiming to reach a Maintenance number of Conduct research for local needs and market business scale on par mainte

  32. Slide 32: Reference: Financial Highlights (1)

    Reference: Financial Highlights (1) 32 Net sales Operating profit (Million yen) (Million yen) 29,751 4,113 3,612 24,521 21,339 2,717 17,900 15,326 2,034 1,351 FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 Ordinary profit Profit attributable to owners of parent (Million yen) (

  33. Slide 33: Reference: Financial Highlights (2)

    Reference: Financial Highlights (2) 33 Net assets / total assets (Million yen) Net assets Total assets 25,338 20,473 14,297 10,624 11,484 10,505 11,756 5,177 2,870 3,937 FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 Net assets per share Net income per share (Yen) 131.42 (Yen) 30.73 115.97 27.51 21.03 15.75 63.

  34. Slide 34: Disclaimer and Caution Concerning Forward-looking Statements

    Disclaimer and Caution Concerning Forward-looking Statements 34 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-kno

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