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
2
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Business environment and Achievements for the First Half of FY2020
Earnings Forecast for FY2020
3
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1. Business environment and Achievements
for the First Half of FY2020
4
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
5
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
6
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2. Earnings Forecast for FY2020
7
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
8
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
9
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1. Explanation about the First Half of FY2020
10
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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%)
11
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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%)
12
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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%)
13
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
15
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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%
16
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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 （%）
17
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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
18
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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)
19
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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
20
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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.
21
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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
23
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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
25
Copyright 2020 Taikisha Ltd., All Rights Reserved.
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
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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
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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
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
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2. Initiatives of each strategy
in mid-term business plan (FY2019-2021)
39
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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
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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
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
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