FY2022/3 Second Quarter Results

Japan Elevator Service Holdings

(TSE 1st Section: 6544)

November 11, 2021

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Contents

2

１

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3

Summary

First Half Financial Highlights

FY2022/3 Second Quarter Results

  • FY2022/3 Consolidated Financial Forecasts

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3

Summary

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Summary

4

【Overview of 1H FY2022/3 】

  • By providing support services for social infrastructure during spread of COVID-19, achieved growth in sales and profit; net sales ¥13.9bn (+126.8% YoY), OP ¥1.8bn (+113.1%)
  • In addition to JES parent growth, contributions from new group companies acquired in and after FY2021/3 drove increase in elevators under maintenance to approx. 74,500 at end-Sep 2021, up approx. 7,000 from end-Mar 2021
  • Maintenance and Preservation Services business recorded firm sales of ¥10.1bn (+122.7% YoY)
  • Modernization Services business overcame impact from COVID-19 to record strong growth to ¥3.5bn (+148.6% YoY).
  • We have been proactively recruiting staff, especially maintenance engineers, to prepare for nationwide expansion. Headcount rose by 60 in 1H in the prior year and by 152 in the current 1H, an increase of 253.3% YoY

【Outlook for 2H FY2022/3】

  • Despite ongoing economic uncertainties, we see steady progress in both Maintenance and Preservation Services and
    Modernization Services for 2H FY2022/3. Forecast sales of ¥14.6bn, OP of ¥2.3bn (record-high profit).
  • In current year we acquired independent companies with high market share in Ehime, Kochi, and Tokushima. Also opened new sales offices in Tohoku and Hokuriku-Shinetsu.
  • We previously had no operations in Tohoku, Chugoku, Shikoku, and Hokuriku-Shinetsu, and securing maintenance personnel is now even more crucial for expanding business in these areas.
  • From a medium/long-term perspective, we will continue proactively recruiting experienced maintenance engineers in 2H, as well as next year's new graduate intake.

【Outlook for FY2022/3】

  • We expect Maintenance and Preservation Services to perform well, driven by new staff, sales expansion into new regions via M&A, and enhancements to our management framework. We now look for elevators under maintenance contracts in FY2022/3 to exceed 10,000, above plan.
  • For Modernization Services, we forecast sales of ¥7.4bn (+118.2% YoY), considerably above our initial target.
  • We raised FY2022/3 net sales target to ¥28.5bn, ¥1.5bn above our target as of May 2021.
  • Our full-year DPS target is for ¥13 (+¥1 YoY).

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Summary: Overview for the Quarter

5

Overview

Maintenance

・End-Sep 2021 elevators under maintenance contracts (Japan): around 74,500

and Preservation

・1H net increase: around 7,000 (non-consolidated : around 4,600; M&A: around 2,400)

Services:

・Net increase was highest for a 1H at the parent, on rising need for cost savings

One-time

・1H elevators serviced (Japan): around 520

modernization:

・Much higher than 360 serviced in 1H FY2021/3 (Japan)

Quick Renewal:

・Development completed for 12 types of elevator

・Development complete for hydraulic-control elevators, so Quick Renewal now available for hydraulic

elevators

LiftSPOT:

・Machines under contract at end-September 2021: around 8,300

・Aim to raise number of units installed by effectively targeting advertisers

(aim to install over 10,000 as soon as possible)

Multi-story car

・Over 9,000 car park spaces across the group

parks:

・Net increase at 1H: around 1,200 spaces

・Opened West Japan Service Center, to support operational expansion from the Tokyo Metropolitan area to

Kyoto, Osaka, and Hyogo

M&A:

・Acquisitions announced in 1H: 4 companies

1: Toyota Facility Service

: Booked on BS in 1Q, PL in 2Q

2: Ehime Elevator Service

: Booked on BS in 2Q, PL from 3Q

3: Shikoku Shoukouki Service

: Booked on BS in 2Q, PL from 3Q

4: Shikoku Elevator Service

: To be booked on BS from 3Q, PL from 4Q

Headcount:

・Employee count at end-Sep 2021: 1,550 (including acquired companies)

・1H net increase: 152, 250% higher than the 60 increase in 1H FY2021/3 on proactive hiring of

maintenance engineers

・Aggressive hiring of maintenance engineers in preparation for national expansion

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Japan Elevator Service Holdings Co. Ltd. published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 01:26:07 UTC.