Takamiya : Results Briefing Materials for the Third Quarter of the Fiscal Year Ending March 31, 2021

Result Briefing Materials for the Third Quarter of the Fiscal Year Ending March 31, 2021

Takamiya Co., Ltd. (2445:Tokyo)

Grand Front Osaka Tower-B Bldg. 27F,

3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan TEL：[phone] FAX：[phone]

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.

In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Agenda

◼

Topics

◼ Description of Consolidated Financial Results for the Third quarter of the Fiscal Year Ending March 31, 2021

Topics

February 1, 2021

Notice of Change of Directors

February 16, 2021

Notice Regarding the Selection of Our Company's Shares as Securities to be Lent

In addition to the above, various releases and IR information can be viewed on our website.https://www.takamiya.co/en/

Company Overview of Takamiya Co., Ltd.

Trade name Incorporation Representative Capital Number of employees Registered head office Business locations Consolidated subsidiaries Stock listing

Takamiya Co., Ltd. June 21, 1969 Representative director, Kazumasa Takamiya 1,050 million yen Consolidated : 1,238; Non-consolidated : 725 (As of end-December, 2020) Grand Front Osaka, Tower B, 27F, 3-1 Ofuka-cho, Kita-ku, Osaka, Japan Branches: Tohoku-Sendai, Ibaraki,Tokyo, Niigata,Nagoya, Osaka, Chushikoku, Kyushu-Fukuoka (total: 8) Business offices: Sapporo, Morioka, Fukushima, Tsukuba, Kashima, Ichihara, Hokuriku, Fukui, Nagano, Shizuoka, Keiji, Hiroshima, Okinawa (total: 13) Equipment centers：Aomori-Higashidori, Iwate-Morioka, Miyagi-Sendai No. 2, Fukushima-Hirono, Niigata-Yokogoshi, iigata-Nagaoka, Ibaraki-Chuo, Ibaraki-Tsukuba, Ibaraki-Dejima, Ibaraki-Kashima, Chiba-Okido, Chiba-Ichihara, Saitama-Kuki, Kanagawa-Aikawa, Shinsyu-Ngano, Shizuoka-Yoshida, Ishikawa-Kanazawa, Fukui-Sabae, Tokai-Kisosaki, Shiga-Omihachiman, Osaka-Hirakata, Osaka-Settsu, Wakayama-Momoyama, Hyogo-Tojo, Hyogo-Kobe, Hiroshima-Shiwa, Kagawa-Sanuki , Okinawa-Naha(total: 28) [Japan total:7] IWATA Co., Ltd.. ; HIRAMATSU Co., Ltd. ; AOMORI ATOM Co., Ltd. ; TOTAL TOSHISEIBI Co., Ltd. ; NEXTECH Co., Ltd. ; Cadian Co., Ltd. ; Nakaya Kizai Co., Ltd [Overseas total:3] Hory Korea Co. Ltd ; HORY VIETNAM Co., Ltd. ; DIMENSION-ALL INC. (total:10) Jun. 2005: JASDAQ Securities Exchange Note: The Company was delisted from the JASDAQ market in January 2008. Dec. 2007: Tokyo Stock Exchange Second Section Dec. 2014: Assigned on Tokyo Stock Exchange First Section

1.1 Business overview

• ✓ In the sales business segment, recent situations of uncertainty for the future pushed down many companies' mindset, and there was a tendency that some customers withhold their final decisions to purchase temporary equipment.

• ✓ Rental business segment experienced lower growth of utilization of assets for rent due to, for example, returning equipment following completion of large-scale construction sites, and lower amount of shipment of equipment to customers as compared to the previous year because of interrupted or delayed construction work and postponed commencement of work.

• ✓ In the overseas business segment, DAI (consolidated subsidiary in the Philippines) faced limitation on its business activities due to curfew and restrictions on movement in the metropolitan area, leading to substantial decrease in revenues.

1.2 Cumulative period (from April 2020 to June 2020)

Consolidated Results （Unit：million yen）	3Q of FYE Mar.31, 2021 Forecast (Non-Disclosure) Sales ratio	3Q of FYE Mar. 31, 2021 Results	3Q of FYE Mar.31, 2020 Results Sales ratio	% change (y/y)
Sales ratio
Net sales	－	－	28,757	100.0%	34,291	100.0%	(16.1)%
Gross profit	－	－	8,571	29.8%	10,475	30.5%	(18.2)%
SG&A	－	－	6,998	24.3%	7,702	22.5%	(9.1)%
Operating income	－	－	1,573	5.5%	2,772	8.1%	(43.3)%
Ordinary income	－	－	1,425	5.0%	2,614	7.6%	(45.5)%
Profit attributable to owners of parent	－	－	856	3.0%	1,750	5.1%	(51.1)%
Earnings per share （Diluted earnings per share）	－	－	18.39円 （17.87円）	－	39.40円 （38.30円）	－	－
Annual dividends per share	－	－	－	－	－	－	－
Depreciation and amortization	－	－	3,639	12.7%	3,562	10.4%	+2.2%
EBITDA	－	－	5,213	18.1%	6,335	18.5%	(17.7)%

1.3 Factors of increase/decrease in net sales and operating income

Net sales decreased by 5,534 million yen (down 16.1% YoY)

✓ All business segments experienced decrease in revenues.

Operating income decreased by 1,199 million yen (down 43.3% YoY)

✓ All business segments experienced decrease in profit.

* Increased inter-segment offset is due to decreased transactions within our Group.

(Unit : million yen)

(FY ended/ending March 31)

(16.1)%

(y/y)

1.4 EBITDA(Operating income + Depreciation)

Decreased by 1,122 million yen

(down 17.7% YoY)

✓ Mainly due to decreased operating income.

✓ Depreciation increased slightly.

(Unit : million yen)

(FY ended/ending March 31)

(17.7)%

(y/y)

1.5 Performance by segment

✓ All the business segments experienced lower revenues and profit because of the new coronavirus and economic environment deterioration.

Unit : million yen	Net sales	Segment profit (sales ratio)
3Q 2020	3Q 2021	% change y/y	3Q 2020	3Q 2021	% change y/y
Sales Business	11,246	7,995	(28.9)%	1,414 (12.6%)	839 (10.5%)	(40.6)%
Rental Business	19,485	18,577	(4.7%)	2,301 (11.8%)	1,832 (9.9%)	(20.4)%
Overseas business	5,532	3,868	(30.1)%	300 (5.4%)	(43) (-%)	(114.6)%

(FY ended/ending March 31)

2.1 Factors of increase/decrease YoY

Net sales: decreased by 3,251 million yen ✓ All the business segments experienced lower revenues. As opposed to sales for a large-scale environment-related project during the previous term, sales of the Iq System and peripheral (temporary) equipment could not, despite receiving inquiries, be realized because of not having led to contracts, resulting in decrease YoY.

Operating income: decreased by 575 million yen ✓ Decreased revenues in all the business segments led to decrease also in profit. ✓ As for SG&A expenses, movement restrictions and other measures ware taken, resulting in decreased relevant expenses. In addition, more expenses were allocated to the 50th Anniversary Commemorative events during the previous term, so the present term showed decrease YoY.

(Unit : million yen)

(FY ended/ending March 31)

(28.9)%

(y/y)

2.2 Net sales by product field

All the business segments experienced lower revenues, especially those related to temporary equipment and environment.

10,158

4Q3Q2Q1Q

FY ended/ending March 31

* Amounts less than one million yen are rounded. (Unit : million yen)

2020 2021 Temporary equipment 896

Bulding materials-related

Iq System, G-Walk, etc.

Seismic dumper, Housing building material

3,141 894 1,042

2020 2021 Enviroment-related

1,101

Sales of second hand

Mounting devices of solar panel,

Agricultural greenhouseSecond hand, sales of leased assets

2.3 Sales of Iq System

Sales of the Iq System decreased by 28.1% ((906) million yen) YoY. Despite receiving many inquiries, it takes longer time than before to enter into contracts.

Sales performance of Iq System

4,294

(Unit : million yen)

3,270

2016

2017

(FY ended/ending March 31)

2018

2019

2020

3Q of 2021

※Our sales only

2.4 Prevalence of Iq System

Popularization of the new-generation scaffolding in the industry maintains steady growth.

Prevalence of the Iq System

(Our sales + Rental assets)

(Unit：million ㎡)

2016

2017

(FY ended/ending March 31)

2018

2019

2020

3Q of 2021

NOTE : This graph is made with own calculation methods, that calculated from selling and assets.

*Our investigations

3.1 Factors of increase/decrease YoY

Net sales: decreased by 908 million yen

✓ Rented amount (utilization rate) of equipment to customers was lower than the previous year, resulting in decreased revenues from rental fees.

Operating income: decreased by 469 million yen

✓ It decreased mainly due to decrease in net sales, increase in temporary equipment maintenance cost and increase in transportation cost of temporary equipment.

✓

✓ In addition, more expenses were allocated to the

As for SG&A expenses, movement restrictions and other measures ware taken, resulting in decreased relevant expenses.

50th Anniversary Commemorative events during the previous term, so the present term showed decrease YoY.

(Unit : million yen)

(4.7)%

(y/y)

(FY ended/ending March 31)

* Trend of utilization rates looks like a mountain with its peak at the 3Q each year

* Utilization rate = rented amount / overall holdings

3.2 Trend of average equipment utilization rates

Despite increased shipment amount of the Iq System, delivery to our customers decreased as compared to the previous year because of returning equipment following completion of large-scale construction sites, and interrupted or delayed construction work and postponed commencement of work, resulting in lower growth of utilization rate which could not draw usual growth curve but maintained almost level.

Utilization rates of rental assets

(Revised) 2021 2Q

Iq System

Assets for rent as a whole

Iq System 62.8%⇒64.5%

Assets for rent a whole 56.0%⇒56.4%

76.1% 75.9%

70.5%	68.4%	66.1%	68.7%	67.1%
60.3%	61.1%
56.7%	58.0%	62.3%	63.6%	58.8%	56.4%	56.0%
48.2%	52.7%	53.8%

1Q

2Q 3Q

4Q

1Q

2Q 3Q

4Q

1Q

FY Ended March 31, 2019

FY Ended March 31, 2020

2Q 3Q 4Q FY Ending March 31, 2021

3.3 Ratio of Sales by Area

Chubu block maintained steady growth of sales relating to civil engineering works. Tohoku and Kanto blocks experienced slowdown affected by suspension/postponement of construction works.

FY ended March 31, 2019

FY ended March 31, 2020

3Q FY ending March 31, 2021

Tohoku

Kanto

Chubu

Kansai

Kyusyu

NOTE: Chugoku/Shikoku block is included in Kansai block.

4.1 Factors of increase/decrease YoY

Net sales: decreased by 1,664 million yen ✓ In the Philippines, business activities were limited due to curfew and restrictions on movement in the metropolitan area, leading to substantial decrease in revenues.

✓ In Korea, net sales decreased because of, for example, worsened economic environment and decision to withhold supplying to customers having credit uncertainty.

Operating income: decreased by 344 million yen ✓ Decreased net sales in the Philippines due to limitation on business activities had much influence.

✓ SG&A expenses were lower than the previous year due to, for example, restrictions on movement and business activities because of the new coronavirus.

(Unit : million yen)

(30.1)%

(y/y)

(FY ended/ending March 31)

4.2 Sales Ratio by Segment

Overseas business segment dropped its share of the Group's consolidated net sales due to restrictions on business activities in the Philippines and economic environment deterioration in Korea.

* "Sales Ratio by Segment" is based on net sales before inter-segment elimination.

5. Change in Consolidated Balance Sheet

Lower net sales caused lower accounts receivable - trade. Total assets decreased and equity ratio was 31.6% (30.5% at the end of the previous term).

[Asset]

Current assets

Cash & Deposit

Notes and accounts receivable - trade

Non-current assets

Assets for rent, net

[Liability]

Current liability

Notes and accounts payable - trade

Short-term loans payable

Non-current liability

Long-term loans payable

[Net asset]

Shareholders' equity

(Unit : million yen)

：8,197 (+954)

：11,879 ((2,222))

：13,758 ((1,149))

：5,511 ((915))

：7,873 (+2,473)

：9,988 ((1,834))

：18,346 (+204)

* The figures in parentheses are comparisons for the same period of the previous year

Investments and other assets	Intangible assets	Property, plant and equipment
Current assets	Net assets	Non-current liabilities
Current liabilities
54,414	59,282	58,137

22,781

20,302

26,408

21,730

25,960

22,894

19,535

28,799

19,054

16,341

27,628

28,133

18,497

18,901

14,575

819 3,184

939 3,134

967 3,077

AssetsLiabilities/ Net assetsFYE Mar.31, 2019

FYE Mar.31, 2020

AssetsLiabilities/ Net assetsAssetsLiabilities/ Net assets

3Q FYE Mar.31, 2021

(Unit : million yen)

6. Full-term performance forecasts

Consolidated performance forecasts for the full-term of FY ending March 31, 2021

(Unit : million yen)	FY Ending March. 31, 2021 Forecasts	FY Ended March. 31, 2020 Results	YoY
Change amount	Change %
Net sales	40,750	46,065	(5,315)	(11.5)%
Operating income	2,200	3,703	(1,503)	(40.6)%
Ordinary income	2,000	3,541	(1,541)	(43.5)%
Profit (loss) attributable to owners of parent	1,270	2,370	(1,100)	(46.4)%
Earnings per share	27.27 yen	52.74 yen

7. Status of shareholder return

(FY ended/ending March 31)

2017	2018	2019	2020	2021 (Forecast)
Dividend	10 yen	11 yen	11 yen	14 yen	14 yen
1Q 2Q 3Q 4Q	－ 3.5 yen － 6.5 yen	－ 4.0 yen － 7.0 yen	－ 4.0 yen － 7.0 yen	－ 6.0 yen － 8.0 yen	－ 6.0 yen － 8.0 yen
Total amount of dividends	428 million yen	471 million yen	471 million yen	651 million yen	－
Dividend payout ratio	28.5%	37.6%	28.8%	26.5%	－
Treasury shares	529 million yen	0 million yen	0 million yen	0 million yen	－
Total return ratio	63.2%	37.6％	28.8％	26.5%	－
Dividend on equity	3.6%	3.7%	3.5%	3.9%	－
ROE	12.6%	9.8%	12.0%	14.7%	－

Reference Information

Takamiya Co., Ltd. (2445:Tokyo)

Grand Front Osaka Tower-B Bldg. 27F,

3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan TEL：[phone] FAX：[phone]

IR

• • Video streaming of Financial Results Briefing (4 ~ 7 days after the Briefing)

• • Disclosure of English versions of Summary of Financial Results, Results Briefing Materials, and Timely Disclosure Release (partly)

  (7 ~ 10 days after disclosing Japanese version/TDnet)

• • Issuance and Web release of annual reports (Japanese/English)* 2020 version is planned to be issued in October.

• • Disclosure of non-financial information (publicized on annual reports, and then on the Web)

• • Proactive information disclosure based on dialogues with investors (e.g., prevalence (total area) of next generation scaffolding, equipment utilization rate)

• • Briefing for private investors (6 times)

• • 1 on 1 meeting (more than 90 times)

If situations calm down for events

such as briefings, there would be

more occasions for proactive

dialogs and IR activities than the

previous term.

Human resource development

Promoting "Human centered capitalism" style management and measures centered on human resources

Such information is publicized to visitors on a large signage

• • Promoting in-house projects centered on mid-level/young employees

• • Incentive reward according to the degree of KPI attainment set by each division

• • Promoting active Work Style Reform by information disclosure to employees

  (e.g., screenshots on the right)

• • Training according to individual stages such as new employee, mid-career employee, and pre-manager candidate

• • Mentor scheme (new employee / mid-career employee)

• • Mental health check (Web service)

• • Wedding anniversary holiday, refresh holiday and others to encourage taking paid leaves

• • Telework (Work from home) * We have attempted earlier than the present National Declaration of

  State of Emergency

To improve corporate value and shareholder value permanently, development of Key human resources is one critical issue (Human centered capitalism).

Human centered capitalism: The Company's management philosophy advocating that

"Human resource is the essence of corporate power".

Stock Price of TAKAMIYA (2445:Tokyo)

Average daily trading volume

> Solid line is a 12 months moving average line of stock price.

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IR contact

HP

Company name	：	Takamiya Co., Ltd.
Address	：	Grand Front Osaka, Tower B, 27F, 3-1 Oofuka-cho, Kita-ku, Osaka, 530-0011, Japan
HP	：	https://www.takamiya.co/en/
For Investor	：	https://www.takamiya.co/en/ir/
CONTACT	：	PR / IR Department
Email	：	[e-mail]

For Investor

This material is intended solely to provide information about the Group, not to invite investment in the Company's securities. Opinions and forecasts as provided herein represent the judgements made by the Company at the time of preparation of this material, and of course, in no event warrant/assure accuracy and safeness of such information, and additionally, may be subject to change without notice.