Takuma Co., Ltd.

May 24, 2024

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Table of Contents

1.

Financial Results of FY2023 (Ended 3/2024)

P.2

2.

Financial Forecast for FY2024 (Ending 3/2025)

P.19

3.

14th Medium-Term Management Plan (FY2024-2026)

P.25

4.

Reference Material

P.52

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

1

Table of Contents

1.

Financial Results of FY2023 (Ended 3/2024)

P.2

2.

Financial Forecast for FY2024 (Ending 3/2025)

P.19

3.

14th Medium-Term Management Plan (FY2024-2026)

P.25

4.

Reference Material

P.52

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2

FY2023 (Ended 3/2024)

Summary

FY2023 Results

Orders received

¥160.5 billion

-¥7.9 billion (-4.7%) YoY

Orders received were down due primarily to a decrease in orders received in the Overseas Environment and Energy Business and the Equipment and Systems Business, despite orders received for Energy Plants and Water Treatment Plants in addition to DBO projects for municipal solid waste treatment plants.

Domestic Environment and Energy Business

Municipal solid waste treatment plants

Energy Plants

Water Treatment Plants

Overseas Environment and Energy Business

Package Boiler Business

Equipment and Systems Business

Net sales

¥149.1 billion

+¥6.5 billion (+4.6%) YoY

Sales up for municipal solid waste treatment plants (after-sale services) in the Domestic Environment and Energy Business and three other segments.

Domestic Environment and Energy Business Municipal solid waste treatment plants

Energy Plants

Water Treatment Plants

Overseas Environment and Energy Business

Package Boiler Business

Equipment and Systems Business

Operating profit

¥10.2 billion

-¥3.5 billion (-25.9%) YoY

Profit was down mainly due to the change in

the EPC project mix in the Domestic Environment and Energy Business

Domestic Environment and Energy Business Change in EPC project mix

Cost of O&M measures

Operating expenses (Personnel, R&D, etc.) Depreciation (New Harima Factory, etc.)

Overseas Environment and Energy Business

Package Boiler Business

Equipment and Systems Business

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

3

FY2023 (Ended 3/2024)

Financial Highlights

Orders received were down due primarily to a decrease in orders received in the Overseas Environment and Energy Business and the Equipment and Systems Business, despite orders received for DBO projects for municipal solid waste treatment plants.

Net sales were up in all segments, but profit was down due mainly to the change in the EPC project mix in the Domestic Environment and Energy Business as well as an increase in depreciation at the new Harima Factory associated with operations, increases in personnel and R&D expenses.

FYE 3/2022

FYE 3/2023

FYE 3/2024

YoY change

(Millions of yen)

(FY2021)

(FY2022)

(FY2023)

Orders received

192,244

168,558

160,568

(4.7%)

Order backlog

445,304

471,211

482,612

2.4%

Net sales

134,092

142,651

149,166

4.6%

Operating profit

9,928

13,813

10,229

(25.9%)

Operating margin

7.4%

9.7%

6.9%

(2.8pt)

Ordinary profit

10,647

14,684

11,166

(24.0%)

Profit attributable to owners of parent

7,434

9,621

8,754

(9.0%)

Basic earnings per share (yen)

91.53

120.22

109.43

(9.0%)

  • EPC: Engineering, procurement, and construction; one approach we use in our plant construction business. * O&M: Operation and maintenance; one approach we use in our plant operation business.
  • DBO: Design, build, and operate; one approach we use in our plant construction and operation businesses (EPC + O&M).

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

4

FY2023 (Ended 3/2024)

Profit Variance Analysis

Profit was down due to the change in the EPC project mix in the Domestic Environment and Energy Business as well as an increase in depreciation at the new Harima Factory associated with operations, increases in personnel and R&D expenses.

Breakdown of ordinary profit variance

(Billions of yen)

SG&A

Gross profit

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

5

FY2023 (Ended 3/2024)

Financial Highlights by Segments

(Millions of yen)

FYE 3/2022

FYE 3/2023

FYE 3/2024

YoY change

(FY2021)

(FY2022)

(FY2023)

Orders received

Total

192,244

168,558

160,568

(4.7%)

Domestic Environment and Energy

164,865

130,280

131,567

1.0%

Overseas Environment and Energy

2,035

5,922

2,280

(61.5%)

Package Boiler

16,830

18,400

18,666

1.4%

Equipment and Systems

8,917

14,328

8,403

(41.4%)

Net sales

Total

134,092

142,651

149,166

4.6%

Domestic Environment and Energy

108,657

115,985

119,190

2.8%

Overseas Environment and Energy

1,005

1,351

2,440

80.6%

Package Boiler

16,498

17,312

18,492

6.8%

Equipment and Systems

8,590

8,360

9,437

12.9%

Operating profit

Total

9,928

13,813

10,229

(25.9%)

Domestic Environment and Energy

10,906

14,875

11,228

(24.5%)

Overseas Environment and Energy

(218)

(172)

184

-

Package Boiler

672

915

1,177

28.6%

Equipment and Systems

656

826

341

(58.7%)

* Adjustments are omitted.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

6

Domestic Environment and Energy Business

Orders received / Order backlog

Orders received were up owing to orders for Energy Plants and Water Treatment Plants in addition to a DBO projects for a municipal solid waste treatment plant, despite contract cancellations for some energy plant projects.

  • Orders received: Up owing to orders for 2 waste treatment plant DBO projects, 8 Energy Plants (6 FIT projects, 1 self-consumption project, and 1 industrial waste treatment project), a large-scale renewal of a sand filtration system for a sewage treatment plant, and a sludge treatment facility DBM project.
  • The order backlog is on the rise owing to steady orders for long-term O&M (such as DBO and BTO projects). Around 55% of the backlog is long-term O&M.
  • DBM: Design, Build, and Maintenance. These projects take the form of EPC + long-term maintenance agreements.
  • BTO: Build, transfer, and operate; one approach we use in our plant construction and operation businesses (EPC + O&M).

Orders received

(Millions of yen)

Approx. ¥1.2 billion increase

Order backlog

(Millions of yen)

Approx. ¥12.3 billion increase

160,591

164,865

123,154

130,280

131,567

Order backlog

447,646

Long-term O&M (10 years or more)

433,351

377,143

337,322

460,023

Long-term

O&M

Approx. 55%

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

7

Domestic Environment and Energy Business

Net Sales / Operating Profit

Sales were up, but profit was down due to a change in the EPC project mix as well as an increase in depreciation at the new Harima Factory associated with operations, increases in personnel and R&D expenses.

  • Net sales: Up owing to an increase in municipal solid waste treatment plants(after-sales service).
  • Operating profit: Down due to changes in the EPC project mix, increased depreciation at the new Harima Factory associated with operations, and increased operating expenses such as personnel and R&D expenses as well as the recording of costs for measures at a waste treatment plant (gasification melting furnace) under O&M contract in Q2.

Net sales

(Millions of yen)

Approx. ¥3.2 billion increase

120,770

115,985

119,190

108,123

108,657

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

Operating profit

(Millions of yen)

Approx. ¥3.6 billion decrease

operating profit

operating margin

12.8%

9.8%

9.5%

10.0%

9.4%

14,875

10,619

11,475

10,906

11,228

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

8

Domestic Environment and Energy Business

Breakdown by Product / Service

Orders received were up for municipal solid waste treatment plants (after-sale services) and Water Treatment Plants, etc. Sales were up, mainly owing to an increase in a municipal solid waste treatment plant.

Orders received

Water Treatment Plants, etc.

Energy Plants

Municipal Solid Waste Treatment Plants (After-sales service) Municipal Solid Waste Treatment Plants (EPC)

(100M yen)

Net sales

Water Treatment Plants, etc.

Energy Plants

Municipal Solid Waste Treatment Plants (After-sales service) Municipal Solid Waste Treatment Plants (EPC)

(100M yen)

Order backlog

Water Treatment Plants, etc.

Energy Plants

Municipal Solid Waste Treatment Plants (After-sales service) Municipal Solid Waste Treatment Plants (EPC)

(100M yen)

2,000

1,400

5,000

4,600

1,600

1,200

800

400

0

1,648

103

329

787

425

1,302

107

322

529

340

1,315

280

257

578

196

1,200

1,000

800

600

400

200

0

1,086

83

291

405

301

1,159

121

335

418

282

1,191

111

288

453

335

4,000

3,000

2,000

1,000

0

4,333

128

771

2,217

1,215

4,476

115

758

2,329

1,273

284

728

2,454

1,133

FYE 3/2022

FYE 3/2023

FYE 3/2024

* Adjustments are omitted.

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FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2022

FYE 3/2023

FYE 3/2024

9

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TAKUMA Co. Ltd. published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 01:08:05 UTC.