FY2022/3 Financial Results

Japan Elevator Service Holdings

(TSE Prime Market: 6544)

May 18, 2022

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Contents

2

  • Summary
  • FY2022/3 Financial Highlights

3 FY2023/3 Financial Forecasts

  • Key Topics
  • Medium-TermPlan "VISION 2027"
  • ESG Initiatives

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3

Summary

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Summary

4

【Overview of FY2022/3】

  • Japanese economy still weighed down by COVID-19, but achieved record net sales of ¥29.75bn (+121.3% YoY), OP of ¥4.11bn (+113.9%) by providing support services for social infrastructure
  • Net increase in elevators under contract in Japan of approx. 11,500 to approx. 79,000
  • Maintenance and Preservation Services business recorded sales of ¥21.13bn (+120.9% YoY) on firm growth in elevators under contract
  • Modernization Services business overcame impact from COVID-19 and focused sales activity on proposals tailored to client needs, underpinning strong growth to ¥8.02bn (+126.7% YoY)
  • We have been proactively recruiting staff, especially maintenance engineers, in preparation for operational and geographical expansion
    Headcount at year-end 1,618 (+220 YoY), with maintenance engineers topping 1,000 to reach 1,003 (+122 YoY)
  • Full-yeardividend per share target ¥14

【Outlook for FY2023/3】

  • With the Ukraine situation raising uncertainty over the global economic outlook, we also expect a tough environment for the Japanese economy.

Corporate cost-cutting will probably gain momentum, underpinning demand for our highly price-competitive services.

  • We forecast sales of ¥32.0bn, OP of ¥4.7bn.
  • In April 2022, we established Japan Elevator Services Chushikoku Co., Ltd., opening new service offices in Hiroshima, Okayama, Tottori, Shimane, and Kagawa

We aim to expand market share in each prefecture in Shikoku in collaboration with acquired subsidiaries.

  • We plan to expand into new regions based on the market situation, opening the Akita service office in the Tohoku region and the Kumamoto service office in the Kyushu region.
  • We hired a record 116 new recruits in April 2022 (including 103 maintenance engineers), and aim to bolster our human resources to support longer-term growth.

【Vision 2027】

  • Set strategic targets for FY2027/3
  • Step up ESG initiatives to enable sustainable growth

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Summary: Overview of FY2022/3

5

Overview

Maintenance

・End-March 2022 elevators under maintenance contracts (Japan): around 79,000

and Preservation

・Full-year net increase: around 11,500 (non-consolidated : around 7,400; M&A: around 4,100)

Services:

・Contribution from M&A with Toyota Facility Services, Ehime Elevator Services, Kanto Elevator System

One-time

・Full-year elevators serviced (Japan): around 1,150

modernization:

・Much higher than 920 serviced in FY2021/3 (Japan)

Quick Renewal:

・Development completed for 16 types of elevator

・Covers all elevators in scope for our maintenance services among those elevators for which parts supply

has been stopped

LiftSPOT:

・Machines under contract at end-March 2022: around 9,500

・Aim to raise number of units installed, especially for high ad-effect buildings, to achieve growth in ad

revenue

Multi-story car

・Over 18,800 car park spaces across the group

parks:

・Full-year net increase: around 10,400 spaces

・Large increase in spaces on M&A with EVOTECH in addition to operational expansion into Kyoto, Osaka,

Hyogo

M&A:

・Acquisitions announced in FY2021/3: 7 companies

1: Toyota Facility Service

2: Ehime Elevator Service

5:JAPAN UNIECO ELEVATOR SERVICE (Vietnam)

3: Shikoku Shoukouki Service

6:Kanto Elevator System

4: Shikoku Elevator Service

7:EVOTECH (Maintenance, and repairment of mechanical parking equipment)

Headcount:

・Employee count at end-March 2022: 1,618 (including acquired companies)

・Full-year net increase: 220, 134% higher than the 164 increase in FY2021/3 on proactive hiring of

maintenance engineers

・Expanded recruitment, especially of maintenance engineers (including experienced hires), in preparation

for nationwide expansion

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Japan Elevator Service Holdings Co. Ltd. published this content on 25 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2022 00:12:06 UTC.