max co., ltd
TRANSCRIPT
MAX Co., Ltd.Financial Results Briefing for FY 2021 (April 1, 2020 to March 31, 2021)
Medium-term Management Plan for the Period FY 2022–FY 2024
ParticipantsMitsuteru Kurosawa, PresidentAkio Kitaya, Executive Officer / General Manager, Finance & Accounting Dept.
Announcement DateApril 28, 2021
Financial Results for Entire Company and Individual Segments in FY 2021
Financial Results for the Entire Company in FY 20211. Financial Results for the Entire Company in FY 20212. Changes in Financial Results for the Entire Company: FY 2017 to FY 20213. Changes in Financial Results for the Entire Company by Quarter4. Factors for Increase/Decrease of Operating Income5. Other Financial Information6. Recognition of External Environment
Financial Results for Individual Segments in FY 20217. Financial Results for Individual Segments in FY 20218. Changes in Segment Results by Quarter9. Industrial Equipment Segment: Financial Results for FY 202110. Industrial Equipment Segment: Changes in Financial Results by Quarter11. Office Equipment Segment: Financial Results for FY 202112. Office Equipment Segment: Changes in Financial Results by Quarter13. HCR Equipment Segment: Financial Results for FY 202114. HCR Equipment Segment: Changes in Financial Results by Quarter15. Changes in Quarterly Net Sales by Overseas Region
Table of ContentsMedium-term Management Plan for the Period FY 2022–FY 2024
16. Basic Strategy and Priority Targets of the Medium-term Management Plan (FY 2022–FY 2024)17. Medium-term Management Plan for the Entire Company (FY 2022–FY 2024)18. Mid-term Management Plan by Segment (FY 2022–FY 2024)19. Changes in External Environment and Impact on the Group20. Industrial Equipment Segment (FY 2022–FY 2024 Plan)21. Office Equipment Segment (FY 2022–FY 2024 Plan)22. HCR Equipment Segment (FY 2022–FY 2024 Plan)23. Growth Strategy for Rebar Tying Tools Business24. Strategic Investment for Mid- to Long-Term Business Growth25. Dividend Policy: Payout Ratio and Dividends to Net Assets Ratio 26. Dividends Policy: Dividends per Share
Financial Results for FY 2021: Reference Materials27. Industrial Equipment Segment: Product Breakdown of the Domestic/Overseas Industrial Equipment Product Operations28. Office Equipment Segment: Product Breakdown of the Domestic/Overseas Office Operations29. Changes in Quarterly Segment Net Sales by Overseas Region (North America)30. Changes in Quarterly Segment Net Sales by Overseas Region (Europe)31. Changes in Quarterly Segment Net Sales by Overseas Region (Asia Excluding Japan)
Financial Results for Entire Company and Individual Segments in FY 2021
Financial Results for the Entire Company in FY 2021
Compared to previous FY Compared to plan*
Results in FY under review
Results in previous FY
% increase/decrease
Full-year plan
Achievement rate
Net sales 64,029 69,671 -8.1 63,500 100.8
Gross profit 27,325 29,127 -6.2 ー ー
Corresponding ratio 42.7 41.8 ー ー
Operating income 6,685 7,586 -11.9 6,500 102.9 Corresponding ratio 10.4 10.9 10.2
Ordinary income 6,826 7,405 -7.8 6,300 108.4Corresponding ratio 10.7 10.6 9.9
Net income attributable to shareholders of parental company 5,153 5,510 -6.5 4,700 109.6Corresponding ratio 8.0 7.9 7.4
Net income per share (yen) 105.80 112.67 ー 96.10 ー
ROE 6.7 7.4 ー 6.1 ー
■ Exchange rates
FY under review 1 USD = 105.79 JPY / 1 EUR = 123.22 JPY
Previous FY 1 USD = 109.13 JPY / 1 EUR = 121.26 JPY
Planned 1 USD = 105.86 JPY / 1 EUR = 122.59 JPY
Financial Results for the Entire Company in FY 2021
(unit: millions of yen, %)
1
*Plan announced on January 29, 2021
4,726 4,654 5,064 5,510 5,153
2
(unit: millions of yen, %)9.6
8.9
10.3 10.6 10.7
7.1 6.8 7.27.9 8.0
26,58226,454
27,731 29,127
27,325
66,967 68,138
70,118 69,671
64,029
6,455 6,076
7,253 7,405
6,826
39.7 38.8 39.5
41.8 42.7
9.4 9.0
10.210.9
10.4
Changes in Financial Results for the Entire Company: FY 2017 to FY 2021
Net sales Gross profit Operating income Ordinary income Net income
■ FY 2017 ■ FY 2018 ■ FY 2019■ FY 2020 ■ FY 2021 ― Corresponding ratio
2
6,323 6,139
7,150 7,586
6,685
3
16,856 17,351 18,067 17,843 17,249 17,635 17,488 17,297
14,574 15,466 16,648 17,340
6.51.5 4.1
-0.1 2.3 1.6-3.2 -3.1
-15.5 -12.3-4.8
0.2
-85
-80
-75
-70
-65
-60
-55
-50
-45
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
Net sales for the entire company
Rate of change in net sales YOY for the entire company
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
(unit: millions of yen, %)
Changes in Financial Results for the Entire Company by Quarter 3
2Factors for Increase/Decrease of Operating Income
7,586 6,685
216 253
2,718
493 385
902
(unit: millions of yen)
FY 2020 FY 2021
Foreign exchange gain/loss on sales
Foreign exchange gain/loss in cost
Quantitydecrease
Increase in selling
price
Decrease in cost
Decrease in
SG&A expenses
Effect of exchange rates +¥37 million -¥900 million
4
■ Non-operating income/expenses and extraordinary income/loss
■ Facilities investment, depreciation, R&D expenses
5Other Financial Information
(unit: millions of yen)FY 2021 FY 2020 YOY
Non-operating income/expenses 141 -180 +321
Non-operating income (excluding foreign exchange effect)
324 335 -10
Non-operating expenses (excluding foreign exchange effect)
-89 -103 +14
Foreign exchange gain/loss -94 -412 +317
Extraordinary income/loss 205 26 +178
Extraordinary income 256 553 -297Extraordinary loss -50 -526 +476
FY 2021 FY 2020 FY 2021 annual plan Implementation rate
Facilities investment 4,967 2,853 6,193 80.2
Depreciation 2,522 2,466 2,713 93.0
R&D expenses 3,128 3,120 3,136 99.7
(unit: millions of yen, %)
*1 *2
*3
5
*1 Refund of customs duties from previous year: ¥226 million*2 Gain on sales of investment securities: ¥315 million, refund of customs duties from previous year: ¥217 million, etc. *3 Loss on abandonment of non-current assets such as the cost of dismantling the former building of the Osaka Branch: ¥212 million yen, loss on valuation of investment securities: -¥289 million, etc.
• Down 9.9% YOY for the period from January to December 2020(Owner-occupied: -9.6%, Rental: -10.4%, Built-for-sale: -10.2%)
→ Negative effect on the industrial equipment product operations (wooden structure related) and residential environmental equipment operations
Number of new housing construction starts
• 1 USD = 105.79 JPY, 1 EUR = 123.22 JPY(Previous FY: 1 USD = 109.13 JPY, 1 EUR = 121.26 JPY)→ Regarding foreign exchange sensitivity for the consolidated financial results, we have achieved a balance of foreign currency sales/procurement, so there is little effect on operating income.
• Down 9.3% YOY for the period from October 2019 to September 2020 (Offices: +2.5%, Shops: -21.6%, Factories: -24.0%, Warehouses: +16.0%)• Slight insufficiency in the supply of skilled rebar workers (for construction sites)→ Positive effect on the industrial equipment product operations (concrete related)
Floor area of construction starts of non-residential structures / Supply and demand for skilled construction workers
Recognition of External Environment
Currency exchange rates
• The annualized rate is 1,584,000 units in January 2021, 1,421,000 units in February 2021, and 1,739,000 units in March 2021
(Previous year—January: 1,617,000 units, February: 1,567,000 units, March: 1,269,000 units)
Number of new housing construction starts in the U.S.
■ Reference indices
6
Behavioral restrictions are implemented in various countries/regions in conjunction with the spread of COVID-19. On the other hand, related to the Industrial Equipment segment, operations of construction and civil engineering sites in Europe and the United States are continued in general.
Telework and remote work are increasing in response to the spread of COVID-19. The number of new housing construction starts related to the Industrial Equipment segment remains below the previous year's level.
Overseas
Domestic
Financial Results for Individual Segments in FY 2021
Compared to previous FY Compared to planResults in FY under
reviewResults in
previous FY% increase/decrease Full-year plan Achievement
rate
Industrial Equipment segment Net sales 44,300 45,409 -2.4 43,850 101.0
Segment profit 6,652 5,454 +22.0 6,450 103.1
Segment profit rate 15.0 12.0 14.7
Office Equipment segmentNet sales 17,061 21,515 -20.7 17,000 100.4
Segment profit 2,738 4,895 -44.1 2,770 98.9
Segment profit rate 16.1 22.8 16.3HCR Equipment segment
Net sales 2,667 2,746 -2.9 2,650 100.7
Segment profit 36 -224 - 30 122.2
Segment profit rate 1.4 -8.2 1.1Adjustment amount -2,741 -2,538 - -2,750 -
Total for entire companyNet sales 64,029 69,671 -8.1 63,500 100.8
Operating income 6,685 7,586 -11.9 6,500 102.9
Operating margin 10.4 10.9 10.2
Financial Results for Individual Segments in FY 2021
(unit: millions of yen, %)
7
Previously, expenses related to research and development for which commercialization is uncertain were allocated to the Office Equipment segment and the Industrial Equipment segment. Since the first quarter of this fiscal year, as with expenses related to the headquarters management department, these expenses have been recorded as Group-wide expenses in the adjustment to segment profit or loss. For the segment information for the previous consolidated fiscal year, we have listed numbers created in accordance with classifications after the change.
8Changes in Segment Results by Quarter■ Net sales by Industrial Equipment segment ■ Net sales by Office Equipment segment ■ Net sales by HCR Equipment segment
- Segment profit rate for Industrial Equipment segment ー Segment profit rate for Office Equipment segment ー Segment profit rate for HCR Equipment segment
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
8
(unit: millions of yen, %)
-7.4 -14.8
-9.5 -14.0
-10.3 -8.6 -3.0 -11.1
-3.8
3.4 2.5 2.6
-15
-5
5
10,578 11,135 11,706 11,343 10,984 11,531 11,410 11,482
9,831 11,057 11,486 11,925
5,531 5,556 5,668 5,849 5,570 5,400 5,363 5,180 4,156 3,765
4,443 4,695
746 659 692 650 693 704 714 634 586 642 718 720 0
5,000
10,000
15,000
9.9 10.4 11.8 9.6 12.3 13.5 13.2
9.1
13.7
15.9
15.0 15.3
22.1 22.0 22.2 22.1 24.2
22.3 22.0 22.5
17.6
11.2
17.4 17.3
5
15
Industrial Equipment Segment: Financial Results for FY 2021
(unit: millions of yen, %)
20,250 20,127 18,764
13,347 14,380 15,513
11,164 10,901 10,021
FY 2019 FY 2020 FY 2021
■ Domestic industrial equipment product operations
■ Overseas industrial equipment product operations
■ Residential environmental equipment operations
ー Segment profit rate
Domestic industrial equipment product operations ▶
Despite strong sales of consumables for TWINTIER rebar tying tools, sales of tools for wooden structures fell due to factors such as the decrease in the number of new housing construction starts in Japan and the stagnation of sales activities to business partners.
Overseas industrial equipment product operations ▶
Although sales activities were subject to restrictions due to the influence of COVID-19, sales of tools for concrete structures increased, especially sales of TWINTIER rebar tying tools. This was caused by continued operations at construction sites using rebar tying tools in Western countries.
Residential environmental equipment operations ▶
Sales of DRYFAN bathroom heaters, ventilators and dehumidifiers, which are the mainstay of the business, increased in housing stock market for renovation and replacement, but decreased in the market for new construction. Sales of heat-exchange ventilation systems decreased due to the effect of customers switching to suppliers other than the Company in the previous fiscal year.
10.5 12.0
15.0
9
44,763 45,409 44,300
TWINTIER rebar tying tools DRYFAN bathroom heaters, ventilators and dehumidifiers
12
4,364 5,097 5,437 5,350 4,534 5,398 5,069 5,124 4,134 4,623 4,993 5,013
3,624 3,428 3,194 3,100 3,745
3,470 3,548 3,615 3,445
3,957 3,794 4,317
2,588 2,609 3,074 2,892 2,704 2,662 2,792 2,742 2,251
2,477 2,698 2,594
11.2 5.2 5.9
1.7 3.8 3.6 -2.5
1.2
-10.5 -4.1
0.7 3.9
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Industrial Equipment Segment: Changes in Financial Results by Quarter
(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
■ Net sales in the domestic industrial equipment product operations
■ Net sales in the overseas industrial equipment product operations
■ Net sales in the residential environment operations
- Rate of change in net sales YOY for Industrial Equipment segment
10
3せい
(unit: millions of yen, %)
8,300 8,179 7,452
5,137 4,521 3,926
9,168 8,813
5,683
FY 2019 FY 2020 FY 2021
■ Domestic office operations■ Overseas office operations■ Auto-stapler operations ー Segment profit rate
Domestic office operations ▶ Sales decreased for stationery-related products and BEPOP label-making machines.
Overseas office operations▶
Sales of BEPOP label-making machines and related products in the European market increased due to demand for signs. However, there was a decrease in sales of stationery-related products, which are mainly sold in the Southeast Asian market.
Auto-stapler operations ▶ Sales of machinery and consumable products fell due to decreased orders from business partners as the result of more people working at home, etc.
22.1 22.8
16.1
11
22,606 21,515
17,061
Full-metal staplers BEPOP label-making machines
Office Equipment Segment: Financial Results for FY 2021
12
1,957 1,926 2,080 2,335 1,965 2,025 1,927 2,261 1,674 1,679 1,912 2,186
1,283 1,306 1,280 1,266 1,315 1,148 1,043 1,015
831 971 983 1,139
2,290 2,323 2,307 2,248 2,289 2,226 2,393 1,903
1,650 1,115 1,548 1,369
1.4 -2.8
2.9 -0.5 0.7 -2.8
-5.4 -11.4
-25.4 -30.3
-17.2 -9.4
-90.0
-85.0
-80.0
-75.0
-70.0
-65.0
-60.0
-55.0
-50.0
-45.0
-40.0
-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Office Equipment Segment: Changes in Financial Results by Quarter
(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
■ Net sales in the domestic office operations ■ Net sales in the overseas office operations
■ Net sales in the auto-stapler operations
- Rate of change in net sales YOY for Office Equipment segment
12
HCR Equipment Segment: Financial Results for FY 2021
(unit: millions of yen, %)
2,748 2,746 2,667
FY 2019 FY 2020 FY 2021
■ Net sales by HCR Equipment segmentー Segment profit rate
HCR Equipment segment ▶Sales declined due to restrictions on sales activities in response to the spread of COVID-19. However, segment profit increased due to strong sales of high value-added wheelchairs, as well as to decreased fixed expenses and improved profitability.
-11.3 -8.2
1.4
13
Multifunctional wheelchairs:Modern Series
Tilting and reclining wheelchairs: Kuruun
12
746659 692 650 693 704 714
634 586642
718 720
-13.4 -16.6 -11.9
-20.6
-7.0
6.8 3.1
-2.4
-15.5 -8.7
0.6
13.5
-90.0
-85.0
-80.0
-75.0
-70.0
-65.0
-60.0
-55.0
-50.0
-45.0
-40.0
-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
0
200
400
600
800
1000
1200
1400
1600
1800
1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4
(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
■ Net sales by HCR Equipment segment - Rate of change in net sales YOY for HCR Equipment segment
14HCR Equipment Segment: Changes in Financial Results by Quarter
12
1,953 1,805 1,975 1,403
2,041 1,961 1,849 2,154 2,240 2,367 2,019 2,097
2,003 1,972 1,768 1,793
2,044 1,909 1,692 2,129 1,646
1,938 2,047
2,505
2,028 2,167 2,075 2,128
2,147 1,968
2,039 1,591
1,324 1,599
1,416 1,603
17.1 7.8 10.3
-0.6 4.1-1.8 -4.1
10.3
-16.41.1 -1.8
5.6
-140.0
-120.0
-100.0
-80.0
-60.0
-40.0
-20.0
0.0
20.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
■ Net sales in North America ■ Net sales in Europe ■ Net sales in Asiaー Total overseas net sales (rate of change YOY)
Changes in Quarterly Net Sales by Overseas Region
Note: Includes overseas net sales for auto-stapler operations.
Ratio of overseas net sales
(%)
5,984 5,944 5,8185,324
6,2325,838 5,580 5,874
5,2105,904
5,482
6,205
15
35.5 34.3 32.2 29.8 36.1 33.1 31.9 34.0 35.7 38.2 32.9 35.8
32.9 33.8 35.6
Medium-term Management Plan for the Period FY 2022–FY 2024
Basic Strategy and Priority Targets of the Medium-term Management Plan (FY 2022–FY 2024)
■ Performance indices■ Basic strategy of the new Medium-term Management Plan
Strengthening ManagementInfrastructure• Improve business productivity by utilizing digital technology• Realize a healthy and comfortable workplace at the company• Strengthen ESG and brand power
Growth of Overseas Business• Accelerate the growth of the rebar tying tools
business• Overseas expansion of AF (Agriculture/Food)
business• Active investment in priority regions
Launch of New Businesses
• Medium- to long-term R&D investment• Investment in domestic and overseas
development sales
Business Model Transformation
• Strengthen the infrastructure of highly-profitable businesses
• Promote activities in new markets
Plan for FY 2024
Net sales ¥72.9 billionOperating income ¥9.0 billion
Operating margin 12.3%
ROE 8.0%
The Group will accelerate the growth of our overseas businesses and the transformation of our business model in order to realize our management policy of "continuing to be a company supported by the customers." We will also strive to launch new businesses that will serve as our future core and to strengthen the management infrastructure for supporting those businesses.
16
Plan for next FY Medium-term Management Plan
FY 2021 FY 2022%
increase/decrease
FY 2024
Compound Annual Growth Rate (CAGR)for the period
FY 2021–FY 2024
Net sales 64,029 67,400 5.3 72,900 4.4
Operating income 6,685 7,100 6.2 9,000 10.4
Ordinary income 6,826 7,100 4.0 9,100 10.1
Net income attributable to shareholders of parental company
5,153 5,250 1.9 7,000 10.7
Operating margin 10.4 10.5 12.3 ー
ROE 6.7 6.6 8.0 ー
Medium-term Management Plan for the Entire Company (FY 2022–FY 2024)
(unit: millions of yen, %)
17
■ Forecasted exchange rates
FY 2021 1 USD = 105.79 JPY / 1 EUR = 123.22 JPY
FY 2022 (plan) 1 USD = 105.00 JPY / 1 EUR = 125.00 JPY
Plan for next FY Medium-term Management Plan
FY 2021 FY 2022%
increase/decrease
FY 2024
Compound Annual Growth Rate
(CAGR)for the period
FY 2021–FY 2024
Industrial Equipment segment Net sales 44,300 45,650 3.0 50,200 4.3
Segment profit 6,652 6,750 1.5 8,450 8.3
Segment profit rate 15.0 14.8 16.8 ー
Office Equipment segmentNet sales 17,061 19,000 11.4 19,500 4.6
Segment profit 2,738 3,400 24.1 3,550 9.0
Segment profit rate 16.1 17.9 18.2 ー
HCR Equipment segmentNet sales 2,667 2,750 3.1 3,200 6.3
Segment profit 36 50 36.4 200 76.0
Segment profit rate 1.4 1.8 6.3 ー
Adjustment amount -2,741 -3,100 ー -3,200 ー
Total for entire companyNet sales 64,029 67,400 5.3 72,900 4.4
Operating income 6,685 7,100 6.2 9,000 10.4
Operating margin 10.4 10.5 12.3 ー
(unit: millions of yen, %)
18Mid-term Management Plan by Segment (FY 2022–FY 2024)
• Heightened needs for reducing labor load (Health & Safety) and improving efficiency in the construction and civil engineeringmarkets
• Market for the domestic business of the Industrial Equipment segment is shrinking due to the decrease in the number of new housing construction starts in Japan
• Decrease in domestic skilled construction workers
Industrial Equipment segment
Changes in External Environment and Impact on the Group
• The Office Equipment segment is shrinking due to an increase in telecommuting and a transition to paperless office.
Office Equipment segment
• Expansion of domestic nursing care market due to the increase in the elderly population
• Increase in at-home nursing care
HCR Equipment segment
Changes in External Environment and Impact on the Group
19
• Establishment of communication with customers using digital technology instead of face-to-face sales and demonstrations
Changes impact on all segments
18,764 19,550 20,950
15,513 16,400 19,100
10,021 9,700 10,150
FY 2021 FY 2022 FY 2024
15.0 14.816.8
Business growth centered on domestic and overseas rebar tying tools business
Industrial Equipment Segment (FY 2022–FY 2024 Plan)
44,430 45,65050,200
Priority Policies
Overseas industrial equipment product operations • Increase the number of sales staff in the rebar tying tools business
and build a network of concrete material dealers• Establish new sales offices in Europe, the United States, and
Australia
Domestic industrial equipment product operations• Develop the civil engineering market for rebar tying tools business
Domestic/overseas rebar tying tools operations• Continue to expand the lineup and develop next-generation products
Residential environmental equipment operations• Expand the stock business and enhance construction
systems for reform and replacement of bathroom heating, ventilation and dehumidifiers
AF (Agriculture/Food) operations• Develop Western markets for the branch induction binder TAPENER
20
■ Domestic industrial equipment product operations
■ Overseas industrial equipment product operations
■ Residential environmental equipment operations
ー Segment profit rate
(unit: millions of yen, %)
7,452 7,950 8,100
3,926 4,350 4,900
5,683 6,700 6,500
FY 2021 FY 2022 FY 2024
16.117.9 18.2
Maintain and improve the profitability of the segment through business growth of labelling and signage products such as BEPOP label-making machines, label printers for food labeling, and LETATWIN tube markers in Japan and overseas
17,06119,000 19,500
Priority Policies
Overseas office operations• Expand sales of labelling and signage products such as BEPOP
and LETATWIN in Europe, the United States, and China
Domestic office operations• Strengthening customer contact points by utilizing ICT• Expand stock business through BEPOP, label printers, and other
labelling and signage products machines
• Introduce new products to markets where demand is expected, such as demand for electric stationery and industrial applications
• Develop next-generation products
21
(unit: millions of yen, %)
■ Domestic office operations ■ Overseas office operations
■ Auto-stapler operations ー Segment profit rate
Office Equipment Segment (FY 2022–FY 2024 Plan)
FY 2021 FY 2022 FY 2024
1.4 1.8
6.3
Increase sales by launching new products and expanding into the China and ASEAN markets, and improve profitability by increasing productivity at the plant in China
2,667 2,750
3,200
Priority Policies
Improve profitability through increased productivity and in-house production at the Chinese plantContinuous introduction of new products for high value-added wheelchairs
22
■ Net sales by HCR Equipment segment ー segment profit rate
HCR Equipment Segment (FY 2022–FY 2024 Plan)
(unit: millions of yen, %)
Growth Strategy for Rebar Tying Tools Business
Establish new sales offices
Enhance after-sales support system
Increase production at the consumable products plant Sales of tools for domestic and
overseas concrete structures¥16.5 billion ¥22.0 billion
Strengthen sales capability by establishing new sales offices and building a network of concrete material dealers
Priority Policies
Japan Europe United States Production Development
Civil engineering market Civil engineering market Construction market Continue investment for enhanced production of
consumable products at the plant in
Thailand
Development of next-generation products
Establish new sales offices in Europe and Australia (scheduled)Strengthen after-sales support in Europe and the United States
Expand a network of concrete material dealers by 1.4 times
Improve awareness in upstream business such as general contractorsPromotion of reduced labor load
(results for FY 2021) (plan for FY 2024)Markets Developed in Each Region
23
→ Increase sales staff by 1.6 times
Strategic Investment for Mid- to Long-Term Business Growth
Strategic Investment for Business GrowthTotal Investment Amount Over
3-Year Period(FY 2022 to FY 2024)
Investment to strengthen sales infrastructure such as establishment of new sales offices in Europe, the U.S., and Australia in the Industrial Equipment segment and in the residential environment stock business
¥1.4 billion
Investment in digital technology for sales and operational efficiency ¥0.5 billion
Strategic investment in product development ¥1.0 billion
Brand strategy, etc. ¥0.7 billion
Total ¥3.6 billion
Achieve business growth by expanding priority businesses and actively investing in the launch of new businesses
Priority Policies
24
12Dividend Policy: Payout Ratio and Dividends to Net Assets Ratio
Based on consolidated financial results, seek to “maintain a minimum of 40% payout ratio with a target ratio of dividends to net assets of 3.0%.”
30.7 31.1
31.7
71.8
91.6
38.8
59.9
101.8
37.6
43.9 45.7
40.3 45.3
70.5
161.3
111.1
77.8
72.8
63.3 56.6
54.7
43.8 44.5 42.5 40.8
44.4 45.4
40.2
2.1 2.2 2.2 2.2 2.2 2.2 2.1 2.2 2.1 2.2 2.3 2.7 2.9 2.9 2.9 2.9 3.0 3.0 2.9 2.9 2.8 3.0
3.2 3.0 3.0 3.0 3.0 3.0 3.2
0.01.02.03.04.05.06.07.08.09.010.011.012.013.014.015.016.017.018.019.020.0
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
Maintaining a minimum of 40% payout ratio with a
target ratio of dividends to net assets of 3.0%
― Payout ratio (left axis)
― Dividends to net assets ratio (right axis)
Notes:・Non-consolidated base until FY 2005.・The plan for the payout ratio and the ratio of dividends to net assets from FY 2022 are calculated based on the Medium-term Management Plan.
Maintaining a minimum of 40% payout ratio with a
target ratio of dividends to net assets of 2.5%
(unit: %)
25
Maintaining a minimum of 30% payout ratio with a
target ratio of dividends to net assets of 2.0%
Planned →Scheduled
19 21 22 22 22 22 22 22 22
24 26
31
35 36 36 36 36 36 36 36 37 39
42 42 44
46 48
50
59
0
10
20
30
40
50
60
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
2112Dividends Policy: Dividends per Share
(unit: yen)
Planned →
Note: The dividend plan from the fiscal year ending March 31, 2022 and beyond is calculated based on the current dividend policy and the Medium-term Management Plan.
26
Scheduled
Financial Results for FY 2021: Reference Materials
■ AF (Agriculture/Food)
■ Tools for concrete
structures
■ Tools for wooden
structures
Industrial Equipment Segment: Product Breakdown of the Domestic/Overseas Industrial Equipment Product Operations 27
20,12718,764
14,380 15,513
Net sales and product breakdown for the domestic industrial
equipment product operations
Net sales and product breakdown for the overseas industrial
equipment product operations
FY 2020 FY 2021 FY 2020 FY 2021
(unit: millions of yen)
10%
23%
67%70%
21%
9%
4%
77%
19%
3%
79%
18%
Office Equipment Segment: Product Breakdown of the Domestic/Overseas Office Operations 28
8,1797,452
4,521
3,926
FY 2020 FY 2021 FY 2020 FY 2021
(unit: millions of yen)
■ Other
■ Labelling and
signage products
■ Stationery-related
products
25%
41%
34%
23%
43%
34%56%
43%
1%
46%
52%
2%
Net sales and product breakdown for the
domestic office operations
Net sales and product breakdown for the overseas
office operations
12
1,779 1,650 1,819
1,239
1,899 1,777 1,708 1,993 2,075 2,233
1,942 2,030
174 155
156
164
141 185
141
161 165
144
77 68
31.8 24.136.9
-5.24.5 8.6
-6.4
53.5
9.820.7
9.2-2.6
-230.0
-180.0
-130.0
-80.0
-30.0
20.0
0
500
1,000
1,500
2,000
2,500
3,000
(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
■ Net sales by Industrial Equipment segment ■ Net sale by Office Equipment segment ー Rate of change in net sales YOY in North America
Changes in Quarterly Segment Net Sales by Overseas Region (North America) 29
12
1,579 1,551 1,383 1,436 1,597 1,494 1,312 1,710
1,262 1,588 1,690
2,104
425 420 384 358
448 414
380
419
383
351 357
401
27.313.1
3.8 -1.4 2.0 -3.1 -6.3
18.7
-19.5
1.5
21.0 17.7
-230.0
-180.0
-130.0
-80.0
-30.0
20.0
0
500
1,000
1,500
2,000
2,500
3,000
(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
30
■ Net sales by Industrial Equipment segment ■ Net sale by Office Equipment segment
ー Rate of change in net sales YOY in Europe
Changes in Quarterly Segment Net Sales by Overseas Region (Europe)
12
268 226 222 196 249 200 208 233 108 146 163 184
1,733 1,913 1,837 1,908 1,872 1,737 1,801
1,344 1,193
1,423 1,224
1,400
28 27 16 24 26
31 29
15
24
30 28
19
-1.4 -6.4 -0.7 3.4 5.9-9.2 -1.7
-25.2-38.3
-18.8-30.6
0.7
-260.0
-210.0
-160.0
-110.0
-60.0
-10.0
0
500
1,000
1,500
2,000
2,500
3,000(unit: millions of yen, %)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 2019 FY 2020 FY 2021
■ Net sales by Industrial Equipment segment ■ Net sale by Office Equipment segment
■ Net sale by HCR Equipment segment ー Rate of change in net sales YOY in Asia
31Changes in Quarterly Segment Net Sales by Overseas Region (Asia Excluding Japan)
The contents listed in this document are based on information currently available to the Company and certain assumptions that are deemed as reasonable. Please be aware that actual future business results, etc., may differ greatly depending on various factors.