TADANO : Materials from May 2019 Financial Explanatory Briefing (Tokyo)

Financial Results Briefing

In 2019, Tadano will celebrate the 100th anniversary of its founding.

May, 2019

Milestone Year

•100th anniversary of founding

•Kozai Plant is planed to start operating

•Planned Acquisition of Demag Mobile Crane Business

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Unit: 100 million yen

Long‐Term Goals

•Becoming No.1 Worldwide in the Lifting Equipment Industry

•Attaining a sales of ratio of 80% outside of Japan

•Becoming a company with stable and high profitability(Attaining an average operating margin of 20%)

2

Mid-Term Management Plan(17-19): Current

Deviations from Short-and Mid term Goals

Difficulty in Sales, Sales ratio outside Japan and operating margin against the final target of the mid-term plan (17-19)

	FY 17	FY 18	FY 19	FY 19		FY 22
	・・・	Mid-Term
	Forecast	Targets
				Targets
Sales	1,737	1,884	2,000	2,400		3,000
Japan	975	913	970	960		1,000
outside Japan	761	970	1,030	1,440		2,000
Outside Japan
43.8%	48.5%	51.5%	60.0%		66.7%
Sales Ratio
Operating	155	158	175	360		500
income
Operating	8.9%	8.4%	8.8%	15.0%		16.7%
Margin
Inv. Turnover	3.2	3.0		4.8
Ratio
ROA	6.5%	6.3%		13.0%

3

Progress of globalization

Outside Japan

Sales (Millions of yen)

Sales ratio

250,000

海Outside外比率Japan％Sales復帰へ

60.0%

ratio return to 50%

200,000

50.0%

150,000

40.0%

100,000

30.0%

50,000

20.0%

0

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

10.0%

(Forecast)

0.0%

Net Sales Outside Japan

Net Sales Japan

Outside Japan Sales ratio

4

Sales Trends by Market Outside Japan

Sales (Millions of yen)

Record high sales expected

120,000

for North America

100,000

80,000

60,000

40,000

20,000

0

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

(Forecast）

Others

Middle East

Asia

Caribbean, Central and South America

North America

Europe

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Factors of operating profit margin decline

～Comparison FY15（highest) and FY18～

FY15 : 14.8％ ⇒ FY18 : 8.4％

• COGS ratio : 3.1％P worse（69.9％⇒73.0％）  Product Line Structure

 Unable to Develop Pricing that Reflects Added Value

 Strategic Pricing

• SGA ratio : 3.4％P worse （15.3％⇒18.7％）  Increase in absolute amount : ¥ 3.2 billion

（31.9 billion yen⇒35.1 billion yen）

Includes Growth Investment of 2.9 billion yen

6

Struggle of the European business

Units台	Mkt.シェアShare
4,000	16%
3,500	14%
3,000	12%
2,500	10%
2,000	8%
1,500	6%
1,000	4%
500	2%
0		0%

WTI

※ AC：All Terrain Crane

Background of FY17/FY18

•Delayed product development

⇒Resolved

•Delayed delivery from Suppliers

⇒Generally resolved, but some problems remain

•Quality problems

⇒Shipping stabilization Continue for Market response

•ATF 600:Prolongation of Testing ⇒Continuing for long time

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Change of Crane market structure

Units

12,000

10,000

8,000

6,000

4,000

2,000

Trends in Crane demand(Including Japan)

Total

RC

TC AC

0
2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
								※ RC：Rough Terrain Crane	AC：All terrain Crane	TC: Truck Crane

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Change of Crane market structure

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Composition ratio by model（Including Japan）

RC

AC

TC

2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
								※ RC：Rough Terrain Crane	AC：All terrain Crane TC: Truck Crane

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