This photo shows Kumbhalgarh Fort, one of the Hill Forts of
Rajasthan, the world heritage in India, where Taikisha has affiliates.
The First Half of FY2020
Financial Results Briefing
Nov 17,2020
Copyright 2020 Taikisha Ltd., All Rights Reserved.
Today's explanation contents
1. Greeting
・Explanation about the settlement of accounts
2.・Initiatives of each strategy in mid- term business plan (FY2019-FY2021)
3. Questions and answers
Representative Director, President Corporate Officer
Koji Kato
Director, Managing Corporate Officer / Chief
Executive, Administrative Management
Headquarters
Masanori Nakagawa
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- Business environment and Achievements for the First Half of FY2020
- Earnings Forecast for FY2020
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1. Business environment and Achievements
for the First Half of FY2020
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1Business environment and Achievements for the First Half of FY2020
Business environment of H1
In Japan
In the field of Building HVAC, there was a movement to postpone investment due to the impact of the state of emergency during the first quarter of FY2020.
Also, regarding the field of Industrial HVAC, due to the effects of the economic downturn caused by the spread of COVID-19 infection and the growing uncertainty about the future, capital investment by manufacturers continued to be cautious.
Overseas
Capital investment by each manufacturer continued to adjust in both the fields of Industrial HVAC and the automobile paint finishing system.
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1Business environment and Achievements for the First Half of FY2020
Consolidated performance of H1
(Hundred millions of yen)
Original | Results of | Change | |||
expectation | H1 FY2020 | ||||
Orders-received | 900 | 945 | 45 | ||
Net sales of completed | 805 | 815 | 10 | ||
construction contracts | |||||
Ordinary income | 39 | 37 | -1 | ||
(Ratio) | 4.8% | 4.6% | -0.3% | ||
Profit attributable to | 29 | 30 | 1 | ||
owners of parent | |||||
(Ratio) | 3.6% | 3.8% | 0.2% |
Due to the impact of the spread of COVID-19 infection, the earnings forecast was disclosed at the timing of the announcement of the first quarter financial results on August 11.
As a result, the achievements were almost as expected compared to the original expectation for the first half.
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2. Earnings Forecast for FY2020
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- Earnings Forecast for FY2020
Consolidated Earnings Forecast for FY2020
(Hundred millions of yen)
Results | Expectations | Original | ||||
expectation | ||||||
of H1 | of H2 | of FY2020 | ||||
Orders-received | 945 | 1,074 | 2,020 | |||
Net sales of completed | 815 | 1,214 | 2,030 | |||
construction contracts | ||||||
Ordinary income | 37 | 82 | 120 | |||
(Ratio) | 4.6% | 6.8% | 5.9% | |||
Net income | 30 | 49 | 80 | |||
(Ratio) | 3.8% | 4.1% | 3.9% |
【Outlook for the business environment】(Green Technology System Business)
Construction demand for the field of building HVAC has become more declining due to the spread of remote work, and there are movements to postpone or shrink investment plans in the short term. But demands for such as large-scale redevelopment, renewal, and data centers are expected to remain firm in the medium to long term.
In the field of Industrial HVAC , capital investment is expected to continue in the correction phase in the short term due to the economic downturn caused by the spread of COVID-19 infection both in Japan and overseas.
On the other hand, although there are concerns about the speed, we believe that demand will recover in the medium to long term due to the spread of 5G and the full-scale implementation of CASE, both in Japan and overseas.
(Paint Finishing System Business)
The outlook remains uncertain due to the re-expansion of COVID-19 infection, and capital investment is expected to continue in a correction phase.
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1. Explanation about the First Half of FY2020
- Highlight of the First Half of FY2020
- Results of Green Technology System Business
- Results of Paint Finishing System Business
- Main projects in Order/ Sales / Carried forward
- Earnings Forecast for FY2020
- Shareholders Returns
2. Initiatives of each strategy in mid-term business plan (FY2019-2021)
- The mention numerical value is in principle consolidated basis. In the case ofnon-consolidated basis, it is noted on the title of the page.
- Achievements numerical value is in principle a business amount of money for the external customers. Only about operating income and ordinary income according to the segment, it becomes the numerical value including the intersegment turnover.
- The forecasted figures are based on available information as of the date of this announcement. It includes economic trends, intense competition in the industry, market demand, exchange rate, reforms of the tax system and various systems, and various other risks and uncertainties. Therefore, please note that actual results may differ from our expectations.
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1. Explanation about the First Half of FY2020
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- Highlight of the First Half of FY2020
1-① .Orders-received by Business (Previous year comparison)Component
(Hundred millions of yen) | |||||||
2019.9 | 2020.9 | Change | 2020.9 | Building | |||
Orders-received | 1,184 | 945 | -239 | ||||
results | |||||||
(Japan) | (666) | (449) | (△216) | Paint | 161 | ||
(Overseas) (17.1%) | |||||||
(Overseas) | (518) | (495) | (△22) | ||||
300 | |||||||
Green Technology | 786 | 594 | -191 | ||||
(31.8%) | |||||||
Building HVAC | 235 | 161 | -74 | Industrial | |||
Industrial HVAC | 550 | 433 | -117 | Paint | (Japan) | ||
(Japan) | 238 | ||||||
(Japan) | (360) | (238) | (△122) | Industrial | |||
49 | (25.2%) | ||||||
(Overseas) | (189) | (194) | (5) | ||||
(5.2%) | (Overseas) | ||||||
Paint Finishing | 398 | 350 | -48 | ||||
194 | |||||||
(Japan) | (69) | (49) | (△20) | ||||
(20.6%) | |||||||
(Overseas) | (328) | (300) | (△27) |
(Green Technology System Business)
In the field of Building HVAC, there was reactionary decline due to orders for large-scale projects in the same period of FY2019 and postponement of investment in the short term due to the spread of COVID-19 infection.
In the field of industrial HVAC in Japan, there was reactionary decline due to orders for large-scale projects in the same period of FY2019, and capital investment continued to be adjusted due to the downturn caused by the spread of COVID-19 infection.
On the other hand, the field of industrial HVAC in overseas was also affected by the economic downturn, but due to orders for large-scale redevelopment projects in Thailand, etc., the orders-received increased.
(Paint Finishing System Business)
2019.9 results
Paint (Overseas) Building
328 235
(27.8%) (19.9%)Paint
(Japan)
69Industrial
(5.9%) (Japan)
As for Paint Finishing System Business, although we received orders for large-scale projects from non- Japanese customers in Europe FY2020, orders-received decreased, because capital investment continued to adjust due to the effects of the economic downturn, and we received abundant orders in North America in the same period of the previous year.
Industrial 360 (Overseas) (30.5%)
189
(16.0%)
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- Highlight of the First Half of FY2020
1-②.Orders-received by Business (Expected comparison) | Component | |||||||||
(Hundred millions of yen) | ||||||||||
Original | Result of | Change | 2020.9 | Building | ||||||
expectation | H1 FY2020 | results | ||||||||
Paint | 161 | |||||||||
Orders-received | 900 | 945 | 45 | |||||||
(Overseas) | (17.1%) | |||||||||
(Japan) | (407) | (449) | (42) | 300 | ||||||
(Overseas) | (493) | (495) | (2) | (31.8%) | Industrial | |||||
Green Technology | 550 | 594 | 44 | Paint | ||||||
(Japan) | ||||||||||
Building HVAC | 104 | 161 | 57 | (Japan) | 238 | |||||
49 | Industrial | (25.2%) | ||||||||
Industrial HVAC | 446 | 433 | -12 | |||||||
(5.2%)(Overseas) | ||||||||||
(Japan) | (249) | (238) | (△10) | |||||||
194 | ||||||||||
(Overseas) | (197) | (194) | (△2) | (20.6%) | ||||||
Paint Finishing | 350 | 350 | 0 | |||||||
(Japan) | (54) | (49) | (△4) | Original | ||||||
(Overseas) | (296) | (300) | (4) | expectation |
(Green Technology System Business)
In the field of Building HVAC, the orders-received exceeded original expectation, because the projects that were expected to be issued in the second half or later in view of the movement of customers to postpone the investment period due to the spread of the COVID-19 infection were received ahead of schedule in the first half.
The orders-received of industrial HVAC in Japan fell below original expectations because of the postponement of investment plans due to the economic downturn caused by the spread of the
COVID-19 infection.
(Paint Finishing System Business)
The orders-received of Paint Finishing System Business was almost as expected.
Building
Paint 104(Overseas) (11.6%)
296
(32.9%)Industrial (Japan)
Paint | 249 |
(27.7%) | |
(Japan) |
54Industrial
(6.0%)(Overseas)
197
(21.9%)
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- Highlight of the First Half of FY2020
2-① .Sales by Business(Previous year comparison) | Component |
(Hundred millions of yen) | |||
Net sales of completed | 2019.9 | 2020.9 | Change |
1,049 | 815 | -233 | |
construction contracts | |||
(Japan) | (642) | (474) | (△168) |
(Overseas) | (407) | (341) | (△65) |
Green Technology | 761 | 573 | -188 |
Building HVAC | 251 | 175 | -75 |
Industrial HVAC | 510 | 397 | -112 |
(Japan) | (334) | (258) | (△75) |
(Overseas) | (176) | (139) | (△36) |
Paint Finishing | 288 | 242 | -45 |
(Japan) | (57) | (40) | (△16) |
(Overseas) | (230) | (201) | (△29) |
2020.9
results PaintBuilding
(Overseas) 175
201 (21.5%)Paint(24.7%)
(Japan)
40 | Industrial | |
(5.0%) | ||
Industrial | (Japan) | |
258 | ||
(Overseas) | ||
139 | (31.7%) | |
(17.1%) |
(Green Technology System Business)
In the field of Building HVAC, the volume of large-scale redevelopment projects increased in the same period of FY2019, so the net sales decreased in reaction.
In the field of industrial HVAC in Japan, significant progress of several large-scale projects in the same period of FY2019, so the net sales decreased.
In the field of industrial HVAC in overseas, although the amount of carried forward was higher than at the beginning of the first half of FY2019, there were few projects that contributed to the completion of the first half accounting period of the current term, so the net sales decreased.
(Paint Finishing System Business)
As the amount of carried forward was less than at the beginning of FY2019, the total amount of net sales decreased.
In both businesses, construction activities were restricted overseas during the lockdown, but the impact was minor.
2019.9 results
Paint (Overseas) Building
230 251 Paint (22.0%)(23.9%)(Japan)
57
(5.5%)
Industrial Industrial (Overseas) (Japan)
176 334
(16.8%) (31.8%)
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- Highlight of the First Half of FY2020
2-②. Sales by Business (Expected comparison)
(Hundred millions of yen) | |||
Original | Result of | Change | |
expectation | H1 FY2020 | ||
Net sales of completed | 805 | 815 | 10 |
construction contracts | |||
(Japan) | (480) | (474) | (△5) |
(Overseas) | (325) | (341) | (16) |
Green Technology | 565 | 573 | 8 |
Building HVAC | 166 | 175 | 9 |
Industrial HVAC | 399 | 397 | -1 |
(Japan) | (264) | (258) | (△5) |
(Overseas) | (135) | (139) | (4) |
Paint Finishing | 240 | 242 | 2 |
(Japan) | (50) | (40) | (△9) |
(Overseas) | (190) | (201) | (11) |
The net sales in both the Green Technology System Business and the Paint Finish System Business were almost as expected.
Component
2020.9
results PaintBuilding
(Overseas) 175
201(21.5%) Paint(24.7%)
(Japan)
40 | Industrial | |
(5.0%) | ||
Industrial | (Japan) | |
258 | ||
(Overseas) | ||
139 | (31.7%) | |
(17.1%) |
Original expectation
Paint Building
(Overseas) 166
190 (20.6%)
Paint(23.6%)
(Japan)
50
(6.2%)Industrial Industrial (Japan) (Overseas) 264
135 (32.8%)
(16.8%)
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- Highlight of the First Half of FY2020
3-① .Profit by Business(Previous year comparison )
(Hundred millions of yen) | |||
2019.9 | 2020.9 | Change | |
Operating income | 75 | 31 | -43 |
(Ratio) | 7.2% | 3.9% | -3.3% |
Green Technology | 72 | 42 | -29 |
(Ratio) | 9.5% | 7.4% | -2.1% |
Paint Finishing | 5 | -10 | -16 |
(Ratio) | 1.9% | -4.5% | -6.3% |
Ordinary income | 76 | 37 | -39 |
(Ratio) | 7.3% | 4.6% | -2.8% |
Green Technology | 74 | 44 | -30 |
(Ratio) | 9.8% | 7.8% | -2.0% |
Paint Finishing | 5 | -10 | -15 |
(Ratio) | 1.8% | -4.4% | -6.2% |
(Green Technology System Division)
The ordinary income decreased because of a significant decrease in the amount of the net sales of completed construction contracts.
(Paint Finishing System Division)
The amount of net sales in relatively profitable areas decreased due to the impact of the economic downturn, resulting in a current account deficit.
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- Highlight of the First Half of FY2020
3-②. Profit by Business (Expected comparison)
(Hundred millions of yen) | |||
Original | Results of | Change | |
expectation | H1 FY2020 | ||
Operating income | |||
31 | 31 | 0 | |
(Ratio) | 3.9% | 3.9% | 0.1% |
Green Technology | 42 | 42 | 0 |
(Ratio) | 7.4% | 7.4% | △0.0% |
Paint Finishing | -10 | -10 | △0 |
(Ratio) | -4.2% | -4.5% | -0.3% |
Ordinary income | 39 | 37 | -1 |
(Ratio) | 4.8% | 4.6% | -0.3% |
Green Technology | 44 | 44 | 0 |
(Ratio) | 7.8% | 7.8% | △0.0% |
Paint Finishing | -8 | -10 | -2 |
(Ratio) | -3.3% | -4.4% | -1.0% |
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- Highlight of the First Half of FY2020
4. Consolidated Income Statements
(Hundred millions of yen)
(Hundred millions of yen)
2018.9 | 2019.9 | 2020.9 | |
Net sales of completed | 988 | 1,049 | 815 |
construction contracts | |||
Gross profit on completed | 135 | 177 | 129 |
construction contracts | |||
(Ratio) | 13.7% | 16.9% | 15.9% |
Selling, general and | 101 | 102 | 97 |
administrative expenses | |||
(Ratio) | 10.3% | 9.7% | 12.0% |
Operating income | 33 | 75 | 31 |
(Ratio) | 3.4% | 7.2% | 3.9% |
Ordinary income | 38 | 76 | 37 |
(Ratio) | 3.9% | 7.3% | 4.5% |
Profit attributable to | 9 | 53 | 30 |
owners of parent | |||
(Ratio) | 0.9% | 5.1% | 3.8% |
1,500
1,000
500
0
20% | |||
16.9% | 15.9% | ||
988 | 1,049 | 15% | |
13.7% | 815 | ||
10% | |||
7.3% | |||
3.9% | 7.2% | 4.5% | 5% |
3.4% | 3.9% | ||
0%
2018.9 2019.9 2020.9
Sales
Gross profit on completed construction contracts ratio (%)
Operating income ratio (%)Ordinary income ratio (%)
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- Highlight of the First Half of FY2020
5.Net sales of completed construction contracts / Ordinary income by Division
Green Technology System Business
9.4% | 9.8% |
7.8% |
(Hundred millions of yen)
Paint Finishing System Business
1.8%
900 | 74 | 80 | 600 | |
65 | 761 | |||
691 | 60 | |||
600 | 573 | 300 | ||
44 | ||||
40 |
-9.5%
297 288
-4.4%80
60
242 40
20
300 | 0 |
20 |
0 | 0 | (300) | |
2018.9 2019.9 2020.9
5
-10
-28
2018.9 2019.9 2020.9
ratio
0
‐20
‐40
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- Highlight of the First Half of FY2020
6. Orders-received / Net sales of completed construction contracts / Construction carried forward
(Hundred millions of yen)
2,000
Orders-received
2,000 |
Sales
2,000
Carried forward
1,7901,872 1,859
1,500
1,000
1,185 | 1,500 | ||
1,184 | |||
25221.3% | 23519.9% 945 | 1,000 | |
16117.1% |
9881,049
19019.3% 25123.9%815
1,500
1,000
58432.6%
40622.7%
512 27.4%442 23.8%
38420.5% 33518.0%
500
44337.4% | 360 | 30.5% | 23825.2% | |
189 | 16.0% | 20.6% | 500 |
31331.7% 33431.8%
17521.5%
258 31.7%
500
23313.0% | 81 | 4.3% | 74 | 4.0% |
188 | 15.9% | 69 | 5.9% | 194 | 5.2% |
5.1% | 49 | ||||
60 | 328 27.8%300 | 31.8% | |||
24020.3% |
18718.9% | 17616.8% | 139 | 17.1% | ||
46 | 4.7% | 57 | 5.5% | 40 | 5.0% |
25025.3% | 230 22.0%201 | 24.7% |
50228.1%64234.3% 61132.9%
0
2018.9 2019.9 2020.9
0
2018.9 2019.9 2020.9
0
2018.9 2019.9 2020.9
Building HVAC | Paint Finishing (Japan) |
Industrial HVAC (Japan) | Paint Finishing (Overseas) |
Industrial HVAC (Overseas) | |
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- Highlight of the First Half of FY2020
7. Overseas net sales of completed construction contracts by Region
44.3% | 41.8% | |
38.8% | ||
600
(Hundred millions of yen)
1,200
1,000
800
988
1,049
815
437 | 7 | |
400 | 38 | |
56 |
407 4
48 | 341 | 6 |
46 | 14 |
600
400
550 642
474
48 |
200 124
80
56 | 47 |
51 | |
8666
6275
200
437 407 341
0
81
10278
0
2018.9 2019.9 2020.9
Japan | Overseas | ―Overseas Ratio |
2018.9 | 2019.9 | 2020.9 |
Other Southeast Asia | North America | |
Thailand | China | |
Others | India | |
Other East Asia |
●Main countries and regions ※The numerical value does not include the internal trading. ・Other SoutheastAsia-- Singapore , Malaysia, Indonesia, Philippines, Vietnam , others
・Other EastAsia--Taiwan, Korea ・North America--USA, Canada, Mexico ・Others-- Russia, South America, others
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- Highlight of the First Half of FY2020
8. Sales of overseas main five companies
(Hundred millions of yen) | |||
Taikisha (Thailand)Co.,Ltd. Group | Wu-Zhou Taikisha Engineering Co., Ltd. | ||
TKS Industrial Company Group | |||
(Thailand) | Group(China) | (USA) |
200 | |||
150 | 122 | ||
100 | 25 | 86 | |
66 | |||
12 | |||
12 |
200
150
100
39 | 45 |
200
150
100 | 75 |
54 | |
58 |
50 | 97 | 73 | 54 |
0
50
0
36 | ||
27 | 29 | 37 |
11 | 7 | 8 |
50
0
54 58 75
2018.9 2019.9 2020.9
Geico S.p.A. Group
(Italy)
200
150
100 77
50 | 73 | 42 | 46 |
42 | 46 | ||
0 | 4 | ||
2018.9 | 2019.9 | 2020.9 | |
200
150
100
50
0
2018.9 | 2019.9 | 2020.9 |
Taikisha Engineering India
Private Ltd.(India)
35 | 41 | ||||
32 | 41 | 13 | |||
3 | 0 | ||||
0 | |||||
13 | |||||
2018.9 | 2019.9 | 2020.9 |
2018.9 2019.9 2020.9
Paint Finishing System
Industrial HVAC
The numerical value does not include the internal trading.
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1 | Highlight of the First Half of FY2020 | |
9. Consolidated Balance Sheet | (Hundred millions of yen) | |
2020.3 | 2020.9 | Change | ||||
Current assets | 1,689 | 1,534 | -155 | |||
Cash and deposits | 576 | 508 | -67 | |||
Notes receivable, Accounts | 967 | 831 | -135 | |||
receivable from completed | ||||||
construction contracts and other | ||||||
Securities | 35 | 10 | -25 | |||
Costs on uncompleted | ||||||
construction contracts・Raw | 34 | 41 | 6 | |||
materials and supplies | ||||||
Other intangible assets | 79 | 145 | 65 | |||
Allowance for doubtful accounts | -3 | -2 | 0 | |||
Non-current assets | 464 | 543 | 79 | |||
Property, plant and equipment | 104 | 105 | 0 | |||
Goodwil | 7 | 48 | 40 | |||
Other intangible assets | 28 | 32 | 3 | |||
Investment securities | 243 | 274 | 30 | |||
Deferred tax assets | 6 | 5 | -0 | |||
Other | 73 | 78 | 4 | |||
Allowance for doubtful accounts | -0 | -0 | 0 | |||
Total assets | 2,153 | 2,077 | -75 |
・On July 30, 2020, Taikisha Ltd. conducted a capital participation in Nicomac Clean Rooms Far East LLP a manufacturer and marketer of clean room panels in India and it became a consolidated subsidiary. As a result, goodwill increased by 4 billion yen from the end of the previous fiscal year.
2020.3 | 2020.9 | Change | ||
Current liabilities | 939 | 818 | -120 | |
Notes payable, accounts payable | ||||
for construction contracts and | 576 | 395 | -180 | |
other | ||||
Advances received on | ||||
uncompleted construction | 143 | 177 | 33 | |
contracts | ||||
Provision for loss on construction | 2 | 1 | -1 | |
contracts | ||||
Other | 216 | 244 | 27 | |
Non-current liabilities | 86 | 108 | 21 | |
Total liabilities | 1,025 | 926 | -98 | |
Total net assets | 1,128 | 1,151 | 22 | |
Capital stock | 64 | 64 | 0 | |
Capital surplus | 50 | 50 | 0 | |
Retained earnings | 908 | 915 | 6 | |
Treasury shares, at cost | -25 | -25 | -0 | |
Valuation difference on | 83 | 105 | 21 | |
available-for-sale securities | ||||
Deferred gains or losses on | -0 | -0 | -0 | |
hedges | ||||
Foreign currency translation | 3 | -4 | -8 | |
adjustment | ||||
Accumulated remeasurements of | -3 | 0 | 3 | |
defined benefit plans | ||||
Non-controlling interests | 46 | 45 | -0 | |
Total liabilities and net assets | 2,153 | 2,077 | -75 |
22 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Results of Green Technology System Business
1. Orders-received / Net sales of completed construction contracts
Orders-received
24.1% | 32.7% | |||||
21.3% | ||||||
1,000 | 884 | |||||
800 | 252 | 786 | ||||
28.5% | ||||||
600 | 235 | 30.0% | 594 | |||
161 | 27.2% | |||||
400 | 443 | 50.1% | 360 | 45.9% | ||
238 | ||||||
40.1% | ||||||
200 | ||||||
188 | 21.3% | 189 | 24.1% | 194 | 32.7% |
0
2018.9 2019.9 2020.9
Building HVAC | Industrial HVAC (Japan) |
Sales | (Hundred millions of yen) |
27.1%
24.3%
23.1%
1,000 | ||||||
800 | 691 | 761 | ||||
600 | 190 | 27.6% | 251 | 33.0% | 573 | |
175 | 30.6% | |||||
400 | 313 | 45.3% | 334 | 43.9% | ||
25845.1%
200
187 | 27.1% | 176 | 23.1% | 139 | 24.3% | ||
0 | |||||||
2019.9 | 2020.9 | ||||||
2018.9 |
Industrial HVAC (Overseas) ―Overseas Ratio
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- Results of Green Technology System Business
2. Order of the market classification(Non-consolidated)
(Hundred millions of yen)
450
400
350
300
250
200
150
100
50
0
2019.9 2020.9
255
147 | 154 | ||||||||||
80 | 55 43 | 83 | |||||||||
20 | 18 | 13 | 13 12 | 41 | |||||||
7 | 2 | 4 | 4 | 10 | |||||||
Electronic and | Office | Pharmacy Accommodation | Precision | Commercial | School, | Station, airport Others | |||||
electrical industry | building | machinery | educational |
institution
24 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Results of Green Technology System Business
3. Order of the market classification(Consolidated)
(Hundred millions of yen)
450
400
350
300
250
355
2019.9
2020.9
200
150
100
50
0
191 | 159 146 | ||||||||||||
144 | |||||||||||||
61 48 | 94 | ||||||||||||
24 | 22 | 16 | 15 12 | 34 38 | |||||||||
3 | 7 | 5 | |||||||||||
Electronic and | Office | Pharmacy | Precision | Accommodation | Commercial | School, | Others | Uncategorized | |||||
electrical industry | building | machinery | educational | orders-received | |||||||||
institution | by small-scale | ||||||||||||
affiliates |
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- Results of Green Technology System Business
700
600
500
400
300
200
100
0
4. Renewal construction(Consolidated)
Orders-received | Sales | (Hundred millions of yen) | ||||||||||
(%: Renewal Ratio) | ||||||||||||
632 | 700 | |||||||||||
550 | 600 | |||||||||||
500 | 510 | |||||||||||
307 | 500 | |||||||||||
49% | 247 | 433 | ||||||||||
239 | 397 | |||||||||||
45% | 400 | 292 | ||||||||||
235 | ||||||||||||
300 | 58% | 47% | 214 | |||||||||
252 | 54% | 251 | ||||||||||
235 | 54% | |||||||||||
190 | 81 | |||||||||||
110 | 81 | 161 | 200 | 175 | ||||||||
32% | ||||||||||||
44% | 325 | 34% | 303 | 118 | 83 | 271 | 81 | |||||
198 | 100 | 44% | 208 | 47% | 183 | |||||||
142 | 154 | 170 | ||||||||||
73% | 107 | 94 | ||||||||||
43 | 0 | |||||||||||
2018.9 | 2019.9 | 2020.9 | 2018.9 | 2019.9 | 2020.9 | |||||||
Building HVAC(Renewal) | Industrial HVAC(Renewal) | |||||||||||
Building HVAC(New) | Industrial HVAC(New) | |||||||||||
26 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Results of Paint Finishing System Business
1. Orders-received / Net sales of completed construction contracts
600
500
400
300
200
100
0
Orders-received | Sales | (Hundred millions of yen) | ||||||||||||
85.9% | 83.2% | |||||||||||||
82.5% | 84.2% | |||||||||||||
80.1% | ||||||||||||||
79.9% | ||||||||||||||
600 | ||||||||||||||
500 | ||||||||||||||
398 | 350 | 400 | ||||||||||||
69 | ||||||||||||||
300 | 17.5% | 297 | 288 | |||||||||||
49 | 14.1% | |||||||||||||
300 | 242 | |||||||||||||
60 | 20.1% | 46 | 15.8% | 57 | ||||||||||
19.9% | ||||||||||||||
40 | 16.8% | |||||||||||||
200 | ||||||||||||||
328 | ||||||||||||||
240 | 82.5% | 300 | 85.9% | 250 | 84.2% | 230 | ||||||||
79.9% | 100 | 80.1% | 201 | |||||||||||
83.2% | ||||||||||||||
0 | ||||||||||||||
2018.9 | 2019.9 | 2020.9 | 2018.9 | 2019.9 | 2020.9 | |||||||||
Paint Finishing (Japan) | Paint Finishing (Overseas) | ―Overseas Ratio |
27 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Results of Paint Finishing System Business
2. Order ratio from non Japanese customers
600
500
400
64.4%
26.6%
16.0%
398
350
(Hundred millions of yen)
Japanese customer
300
200
300
292
252
125
Non Japanese customer
- Non Japanese ratio
*The order of the overseas Japanese-joint
100
0
48
225
106
venture (including all of Japanese customer investment companies) is included in the total value of the Japanese customer.
2018.92019.92020.9
28 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Main projects in Order/ Sales / Carried forward
1. Orderfrom project more than 5 hundred millions of yen
Number of cases over 5 hundred millions of yen / construction, market classification
Orders- received
23 cases
445 hundred millions of yen
Office building | 1 | ||
School, educational institution | 1 | ||
Japan | Commercial | 1 | |
Accommodation | 1 | ||
132 | 13 | Station, airport | 1 |
cases | Electronic and electrical industry | 4 | |
hundred millions of | |||
Precision machinery | 1 | ||
yen | |||
Iron manufacture machinery | 1 | ||
Pharmacy | 1 | ||
Automobile | 1 | ||
Office building | 1 | ||
Overseas | Electronic and electrical industry | 1 | |
Other factory | 1 | ||
10 | |||
312 | Automobile | 4 | |
Cases | |||
Truck | 1 | ||
hundred millions of | |||
yen | Railway | 1 | |
Motorcycle | 1 | ||
29 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
4Main projects in Order/ Sales / Carried forward
2. Salesfrom project more than 5 hundred millions of yen
Number of cases over 5 hundred millions of yen / construction, market classification
Office building | 4 | |||
Sales | Japan | School, educational institution | 1 | |
16 | Accommodation | 1 | ||
144 | ||||
27 cases | Cases | Electronic and electrical industry | 6 | |
hundred millions of yen | Pharmacy | 3 | ||
285 | Transportation equipment | 1 | ||
hundred millions of | Overseas | Office building | 1 | |
yen | 11 | |||
141 | Commercial | 1 | ||
Cases | ||||
hundred millions of yen | Automobile | 9 | ||
30 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
4Main projects in Order/ Sales / Carried forward
3. Carried forwardfrom project more than 1billion yen
Planned | ||||||
Number of projects over 1 billion yen / construction, market classification | project to be | |||||
completed | ||||||
in FY2020 | ||||||
Office building | 7 | |||||
Administrative facility | 1 | |||||
Japan | 16 | Accommodation | 1 | |||
367 | Medical and social welfare | 1 | ||||
Carried | hundred | cases | Electronic and electrical industry | 2 | 1 | |
millions of yen | Pharmacy | 2 | ||||
forward | Research and development | 1 | ||||
39 cases | Construction machine | 1 | ||||
Office building | 2 | |||||
1,066 | Station, airport | 2 | ||||
Overseas | Electronic and electrical industry | 2 | ||||
hundred millions | Pharmacy | 1 | ||||
of yen | 698 | 23 | ||||
Other factory | 1 | |||||
hundred | cases | |||||
Automobile | 12 | 3 | ||||
millions of yen | ||||||
Truck | 1 | |||||
Railway | 1 | |||||
Motorcycle | 1 | |||||
31 | Copyright 2020 | Taikisha Ltd., | All Rights Reserved. |
- Earnings Forecast for FY2019
Expectations by Business
2020.3 | ||||||||||
Green Technology | Paint Finishing | Total | ||||||||
H1 | H2 | Total | H1 | H2 | Total | H1 | H2 | Total | ||
Order- | 786 | 819 | 1,605 | 398 | 265 | 663 | 1,184 | 1,084 | 2,269 | |
received | ||||||||||
Sales | 761 | 812 | 1,573 | 288 | 391 | 680 | 1,049 | 1,204 | 2,253 | |
Operating | 72 | 63 | 135 | 5 | 22 | 27 | 75 | 78 | 154 | |
income | ||||||||||
Ordinary | 74 | 64 | 138 | 5 | 22 | 28 | 76 | 83 | 159 | |
income | ||||||||||
Net | - | - | - | - | - | - | 53 | 37 | 91 | |
income | ||||||||||
(Hundred millions of yen)
2021.3
Green Technology | Paint Finishing | Total | ||||||
H1 | H2(E) | Total(E) | H1 | H2(E) | Total(E) | H1 | H2(E) | Total(E) |
594 | 705 | 1,300 | 350 | 369 | 720 | 945 | 1,074 | 2,020 |
573 | 726 | 1,300 | 242 | 487 | 730 | 815 | 1,214 | 2,030 |
42 | 63 | 106 | -10 | 22 | 12 | 31 | 78 | 110 |
44 | 63 | 108 | -10 | 23 | 13 | 37 | 82 | 120 |
- | - | - | - | - | - | 30 | 49 | 80 |
-
Results of FY2019 H1:1US$=¥110.11, 1€=¥124.47, 1THB=¥3.48
②Results of FY2020 H1:1US$=¥108.44, 1€=¥119.85, 1THB=¥3.44
- FY2020 Estimation︓1US$=¥106.00, 1€=¥117.00, 1THB=¥3.49
Effects of foreign exchange differences between ① and ②on
Sales : △9.3 hundred millions of yen, Ordinary income : +0.3hundred millions of yen.
Effects of foreign exchange differences between ②and ③on
Sales : +4.6 hundred millions of yen, Ordinary income: +0.1 hundred millions of yen.
- Influence for the earnings forecasts for FY2020 when all exchange rates fluctuate by 1% is;
Orders/Sales︓Approximately 10 hundred millions of yen, Ordinary income︓Approximately 0.3 hundred millions of yen
32 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Earnings Forecast for FY2020
Earnings Forecasts by Business
Orders-received
Sales
(Hundred millions of yen)
2,500
2,000
1,500
1,000
500
0
2,418 | 2,269 | ||||||
467 | 19.3% | 477 | 21.0% | 2,020 | |||
355 | |||||||
17.6% | |||||||
694 | 28.7% | 632 | 27.9% | ||||
558 | 27.6% | ||||||
423 | 17.5% | 495 | 21.8% | 387 | 19.2% | ||
136 | 5.7% | ||||||
136 | 6.0% | 122 | 6.0% | ||||
696 | 28.8% | 527 | 23.3% | 598 | 29.6% | ||
2019.3 | 2020.3 | 2021.3(E) |
2,500
2,000
1,500
1,000
500
0
2,254 | 2,253 | 2,030 | |||||
461 | 20.5% | ||||||
549 | 24.4% | 360 | 17.7% | ||||
613 | 27.2% | 634 | 28.2% | 558 | 27.5% | ||
416 | 18.5% | 389 | 17.3% | 382 | 18.8% | ||
117 | 5.2% | 139 | 6.2% | 134 | 6.6% | ||
645 | 28.6% | 540 | 24.0% | 596 | 29.4% | ||
2019.3 | 2020.3 | 2021.3(E) |
Building HVAC | Paint Finishing(Japan) |
Industrial HVAC(Japan) | Paint Finishing(Overseas) |
Industrial HVAC(Overseas) | |
33 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Earnings Forecast for FY2020
Total(Japan/Overseas)
Orders-received
2,500 | 2,418 | 2,269 | ||
2,000 | 2,020 | |||
1,298 | ||||
1,245 | ||||
1,500 | 1,035 | |||
1,185 | 1,184 | |||
1,000 | 7561,120 | 666 | 945 | |
449 | ||||
1,023 | ||||
500 | 985 | |||
46.3% | 45.1% | 48.8% | ||
428 | 518 | 495 | ||
0 | 36.2% | 43.8% | 52.5% | |
H1Total | H1Total | H1Total | ||
2019.3 | 2020.3 | 2021.3 (E) |
2,500
2,000
1,500
1,000
500
0
(Hundred millions of yen) (%: Overseas ratio)
Sales
2,254 2,253
2,030
1,192 | 1,323 | |
1,052 | ||
988 | 1,049 | 815 |
5501,061 | 642 | 474 978 |
930 | ||
47.1% | 41.3% | 48.2% |
437 | 407 | 341 |
44.3% | 38.8% | 41.8% |
H1Total | H1Total | H1Total |
2019.3 | 2020.3 | 2021.3(E) |
34 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Earnings Forecast for FY2020
Green Technology System Division (Japan/Overseas)
2,000 | Orders-received | 2,000 | ||
1,585 | 1,605 | |||
1,500 | 1,500 | |||
1,300 | ||||
1,000 | 1,162 | 1,109 | 1,000 |
(Hundred millions of yen) (%: Overseas ratio)
Sales
1,491 1,573
1,300
1,075 1,184
884 | 786 | 913 |
691 761
918
696 | 594 | |||
500 | 596 | 400 | 500 | |
423 | 495 | |||
387 | ||||
18826.7% | 18930.9% | 19429.8% | ||
0 | 21.3% | 24.1% | 32.7% | 0 |
H1Total | H1Total | H1Total | ||
2019.3 | 2020.3 | 2021.3(E) |
585 | 573 | ||
504 | 433 | ||
416 | |||
176 | 389 | 382 | |
18727.9% | 24.8% | 13929.4% | |
27.1% | 23.1% | 24.3% | |
H1Total | H1Total | H1Total | |
2019.3 | 2020.3 | 2021.3(E) |
35 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
- Earnings Forecast for FY2020
Paint Finishing System Division (Japan/Overseas)
Orders-received
1,000 | 833 | 1,000 | ||||
136 | 663 | 720 | ||||
122 | ||||||
136 | ||||||
500 | 696 | 398 | 500 | |||
527 | 350 | |||||
300 | 69 | |||||
60 | 49 598 | |||||
83.6% | 328 | 79.5% | 30083.1% | |||
240 | ||||||
79.9% | 82.5% | 85.9% | ||||
0 | 0 | |||||
H1Total | H1Total | |||||
H1Total | ||||||
2019.3 | 2020.3 | 2021.3(E) |
(Hundred millions of yen) (%: Overseas ratio)
Sales
762 | 730 | |
117 | 680 | |
134 | ||
139 | ||
645 | 540 | |
297 | 288 | 242 596 |
46 | 57 | |
84.6% | 79.5% | 4081.6% |
250 | 230 | 201 |
84.2% | 80.1% | |
83.2% | ||
H1Total | H1Total | H1Total |
2019.3 | 2020.3 | 2021.3(E) |
36 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
6Shareholders Returns
Purchase / Retirement Disposal of Treasury Shares
Purchase | Record | ||||
Date | Number | Unit | Amount | ||
Price | (million | ||||
(thousand) | |||||
(yen) | yen) | ||||
2005/12 | 40 | 1,933 | 77 | ||
2006/2 | 597 | 1,780 | 1,062 | ||
2006/7,8 | 500 | 1,401 | 700 | ||
2011/8 | 300 | 1,576 | 472 | ||
2012/11 | 600 | 1,614 | 968 | ||
2013/12 | 800 | 2,170 | 1,736 | ||
2015/5 | 680 | 3,245 | 2,206 | ||
2016/11 | 356 | 2,805 | 999 | ||
2017/11,12 | 136 | 3,654 | 499 |
Retirement Record
Date | Number(thousand) | Unit | Amount |
Price | (million | ||
(yen) | yen) | ||
2008/8 | 1,200 | 1,593 | 1,912 |
2018/2 | 1,700 | 2,443 | 4,154 |
Disposal Record | (by ESOP) | |||
Date | Number(thousand) | Unit | Amount | |
Price | (million | |||
(yen) | yen) | |||
2013/2 | 180 | 1,860 | 334 |
37 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
6Shareholders Returns
Net income & Cash Dividends
(億円/円) | (%) | |||||||||
120.0 | 45 | |||||||||
100.0 | 40 | |||||||||
35 | ||||||||||
80.0 | 30 | |||||||||
60.0 | 25 | |||||||||
20 | ||||||||||
40.0 | 15 | |||||||||
20.0 | 10 | |||||||||
5 | ||||||||||
0.0 | 0 | |||||||||
2012.3 | 2013.3 | 2014.3 | 2015.3 | 2016.3 | 2017.3 | 2018.3 | 2019.3 | 2020.3 | 2021.3 | |
(E) | ||||||||||
Net income(hundred millions of yen) | 43.7 | 62.0 | 41.5 | 60.8 | 70.8 | 63.0 | 72.5 | 88.4 | 91.3 | 80 |
Cash dividends per share(yen) | 35 | 50 | 45 | 52 | 67 | 70 | 75 | 91 | 100 | 90 |
Dividend payout ratio(%) | 29.3 | 29.2 | 38.8 | 30.1 | 32.8 | 38.2 | 35.3 | 35.1 | 37.3 | 38.3 |
The basic policy is to implement steady dividends by targeting a consolidated dividend payout ratio of 35%.Regarding the estimated annual dividend ended March 31, 2021, it is 90 yen per share. (dividend payout ratio of 38.3%)
38 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
2. Initiatives of each strategy
in mid-term business plan (FY2019-2021)
39 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Long-term Vision/Quantitative Targets/Investment theme
40 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Basic Policy and Direction/Strategy
41 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Achievement①〜
Strategy︓Respond to social needs through business operations➀
Exterior appearance "Barrier Cube"
Evacuation Shelter
42 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Achievement③〜
Strategy︓Respond to social needs through business operations②
43 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Achievement③〜
Strategy︓Expansion of overseas business domain through capital alliance
At the end of July 2020, Taikisha Ltd. (hereinafter "Company") conducted a capital participation in Nicomac Clean Rooms Far East LLP, a manufacturer and marketer of clean room panels in India (hereinafter "Nicomac").
Nicomac manufactures and sells high quality panels to Indian pharmaceutical manufacturers as its main customers.
Taking advantage of this capital participation, in the Indian market, which is expected to grow economically in the medium to long term, the Company aims to strengthen its ability to respond to the Indian clean room construction market, by combining Nicomac's panel manufacturing and installation technologies with air conditioning system technologies of the Company, mainly in the pharmaceutical manufacturing environment, which requires high performance air conditioning systems.
44 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Main initiatives in progress①〜
Strategy
Enhance added value
〜Energy-saving,cost-saving and environment-responsive technology and automation technology, etc.
Main initiative in progress
Develop and commercialize the paint system that remarkably improves coating efficiency
Taikisha is promoting to develop and to commercialize the paint system that remarkably improves coating efficiency related to reduce CO₂emissions.
Upgrade and utilize
laboratories
〜Reinforce technological
development capabilities and
strengthen proposal
capabilities through the
visualization of technology
Utilize IoT・AI
〜Promote the development of
new solutions
Reconstruct Research and Development Center as demonstration center
Taikisha is considering reconstruction of Research and Development Center as inspection facility to propose customers to technologies related to Green Technology System Division.
Develop and commercialize IoT and AI-based predictive maintenance system in factories
Taikisha is promoting business activity to expand introduction of i-Navistar. (an IoT and AI-based root cause analysis system for analyzing causes of suspended operation and quality defects on automotive paint)
45 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Main initiatives in progress②〜
Strategy
Enhance productivity
Main initiative in progress
Develop the automation system to draw the design and to estimate
Taikisha is developing the automation system to draw the design and to estimate.
Expand new
businesses
〜The plant factory business and the paint finishing system business for large vehicles other than automobiles
Construct Taikishaʼs own plant factory
Taikisha is considering establishment and demonstration of mass- production and automation technology, additionally construction of the facility to propose to customers.
Develop and commercialize automated polishing system for aircraft and railway cars
Taikisha is promoting business activities and technology demonstration for order-receiving the first project.
Expand business areas | Consider establishing affiliates in new countries | |
into new countries | Taikisha is considering establishing the new affiliates in the area that |
is expected to invest. |
46 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Main initiatives in progress③〜
Strategy | Main initiative in progress |
Secure human
resources
〜Measures to make the Company more attractive including the enhancement of systems to enable flexible work styles, improvement of benefits and reduction of working hours
Reinforce human capital
and organizational
capabilities through the
utilization of diverse
human resources
Efforts for post-corona damage such as expansion of telework system
Taikisha is considering measures to improve the working styles of employees and improve work efficiency in anticipation of the post- corona damage, such as expanding the telework system suitable for Taikisha.
Introduce of telework
Taikisha is considering arrangement of making effective use of time and providing job opportunities for employees on administrative leave and retirees by introducing telework, as working from home, mobile work, working at satellite offices.
Utilize of diverse human resources
To promote womenʼs career advancement, female employees can take flexible leave according to life event. And Taikisha provides job training guidance for employees reinstated. Also, Taikisha is considering correspondence of employment until 70, which the Japanese Government promotes.
47 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Initiatives of each strategy 〜Main initiatives in progress④〜
Strategy
Reinforce corporate
governance
〜Reinforcement of the management oversight functions of the Board of Directors and capital cost- conscious management
Reinforce the internal control system both in Japan and overseas
Improve the global risk
management system
〜Legal risks, information security, compliance, etc.
Main initiative in progress
Deepen consideration about capital cost, capital and shareholders returns policy
To aim for increase corporate value, Taikisha is promoting capital cost-conscious management, consideration about capital and shareholders returns policy.
Reinforce the internal control system related IT
Taikisha is considering reinforcing internal control system to maintain and supervise IT in the entire group.
Reinforce the global information security measure
Taikisha is considering reinforcing information security measure in overseas affiliates.
48 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
Precaution about Forward Perspective
The data and future prospect in this material is based on the judgment on the announcement date and the available information. They are possible to change by various kinds of factors and can not guarantee the achievement of goals and future performance. This information is subject to change without notice.
We therefore recommend that you use this information with checking and confirming other information as well.
Taikisha assumes no responsibility whatsoever for any damages resulting from the use of this material.
Contact information for inquiry about this material
Investor Relations Section, Administrative Management Headquarters,
Taikisha Ltd.
TEL︓+81-3-5338-5052FAX︓+81-3-5338-5195
40 | Copyright 2020 Taikisha Ltd., All Rights Reserved. |
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Taikisha Ltd. published this content on 17 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2020 08:52:09 UTC