FY1/2021 Financial Results

March 4, 2021
Stock Code：7590
1

01

PERFORMANCE STATUS

2

02 FINANCIAL RESULTS

FY1/21 Performance Highlights
41st fiscal period
Jan-2021

40th fiscal period
Jan-2020

Net sales

18,486

17,357106.5%

Gross profit

8,259

7,547

109.4%

SG&A

7,103

7,015

101.3%

Operatingincome1,156

531

217.7%

9ppt.

Ordinary
income1,152469

245.6%

2ppt.

Net income
attributable toowners of parent

952

203

469.0%

Ordinary income(Million yen)

1,152 million yen YoY : 245.6%
Net income

952 million yen

YoY:

469.0%● Proportion of in-house manufactured products(consolidated)

70% →

72%

Up by

2ppt.

● EC sales ratio in the HOME use business(domestic + overseas)

17% →

26%

Up by

● SG&A ratio

40.4% → 38.4%

Improved by

YoY

3

02 FINANCIAL RESULTS

Net Sales
1Q(Million yen)

18,486 million yen
YoY: 106.5％

2Q

3Q

4Q

20,00018,00016,00017,223 17,489 17,759 17,357
3,840

3,788

3,988

3,753

18,486
4,269

12,000

57.9%≪HOME use business: composition ratio≫

Sales of HOME use business: 7,330 million yen

Ratio to net sales: 35.1% ⇒ 39.6%

4,049

4,304

4,161

4,197

4,510

4,500

4,775

4,720

4,589

5,082

7.7% ⇒ 9.2%

0

PRO

62.5%

use

HOME

4,000

・Domestic: 27.4% ⇒ 30.4%

41.8%

use

【2H
composition
ratio】

6,000

2,000

・Overseas:

HOME

10,000
8,000

PRO
use

14,000● Significant growth in HOME use
business due to increased demand forgardening from 2Q【1H
composition
ratio】

4,833

4,621

4,887

4,817

4,624

Jan-17Jan-18Jan-19Jan-20Jan-21

37.6%

use

4

02 FINANCIAL RESULTS

Sales segment status(Million yen)

≪Sales composition ratio by segment≫

41st fiscal
period40th fiscal
periodJan-2021

Jan-2020

YoY

PRO use11,144

11,28098.8%

HOME use

5,623

4,757

118.2%

International
business

1,707

1,331

128.2%

OthersTotal

International

International

10

△12

183.3%

18,486

17,356106.5%

9.2%

7.7%
HOME
use

27.4%

Jan-20

PRO
use

HOME
use
Jan-21 PRO
use
30.4%

65.0%

60.3%

≫Increased HOME use demand due to the establishment of gardening trend through a new lifestyle≪Sales by sales channel (HOME use)≫● HOME use business (Total)● HOME use (Domestic)●HOME use (Overseas)

HC：112.6% YoY

HC：110.4% YoY

HC：126.3% YoY

EC：182.6% YoY

EC：182.2% YoY

EC：183.2% YoY

502 FINANCIAL RESULTS
Market changes toward post-COVID world

Domestic market

・Demand for gardening is increasing as people spend moretime at home.
・Our web shop (Aoyama Garden)： 191% YoY
Sales increased and profit margin improved due to growth in ecommerce sales● YoY sales in home center, e-commerce, catalog sales(Million yen)

39th fiscal
periodJan-2019

40th fiscal
periodJan-2020

41st fiscal
periodJan-2021

YoY

Home center

4,196

3,613

3,987

110.3%

E-commerce +Catalog sales

629

629

1,146

182.2%

Sales
composition of
E-commerce/Catalog

15.0%

17.4%

28.7%

＋11.3pIncrease in EC ratio with high profit contribution
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02 FINANCIAL RESULTS
Market changes toward post-COVID world

Overseas market

・Sales increase due to growth in TV shopping and e-commerce sales evenduring lockdown
Our own web shop "VEGTRUG.com" increased by 485% YoY
・Increase in market share due to the early resumption of operation of theChinese plant (from February 17, 2020)

・Expand product lineups other than mainstay products for further sales growth● YoY sales in overseas sales(Million yen)

39th fiscal
periodJan-2019

40th fiscal
periodJan-2020

41st fiscal
periodJan-2021

YoY

Home center

1,137

604

763

126.3%

E-commerce +mail-order
sales

350

404

740

183.2%

Sales
composition of
E-commerce/mail-order

20.1%

30.4%

43.3%

＋12.9p7

02 FINANCIAL RESULTS

Profit & Loss status●Proportion of in-house manufactured products(consolidated)

70%

Gross profit margin:72%

Up by 2ppt.

44.7% improved by 1.2ppt. YoY ●E-commerce ratio in the HOME use business(domestic + overseas)

17%(Million yen)

Gross profit
Operating income
Ordinary income
Net income attributable toowners of parent

26%

Up by 9ppt.

41st fiscal period

40th fiscal period

Jan-2021

Jan-2020

8,259
1,156
1,152
952

7,547

109.4%

531

217.7%

469

245.6%

203

469.0%*The amount of 66 million yen is included in extraordinary income/loss for the current period.

YoY

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02 FINANCIAL RESULTS

Profit & Loss status: SG&A Analysis
SG&A: 38.4% Improved by 2.0p YoY(Million yen)

Personnel expenses
Shipping cost
Sales promotion andadvertising expenses
Commissions paid
Travel expenses
Total

41st fiscal period

40th fiscal period

Jan-2021

Jan-2020

2,924
1,176
555
513
105
7,103

2,812

104.0%

1,108

106.1%

621

89.4%

518

99.0%

228

46.0%

7,015

101.3%YoY

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02 FINANCIAL RESULTS

Balance sheet status(Million yen)

Current assets
Fixed assets
Total assets
Current liabilities
Long-term
liabilities
Net assets
Total liabilities
and net assets

41st fiscal period

40th fiscal period

Jan-2021

Jan-2020

12,187
7,503
19,6988,823

ChangeMain change factors

11,0991,087● Emergency fund procurement:
1,000 million yen

7,534

△31

● Depreciation andamortization: 248 million yen

18,634

1,063

9,282

△470

● Decrease in short-termborrowings: 758 million yen

1,350

657

692

● Long-term borrowings for
emergency fund: 1,000 million
yen

9,523
19,698

8,693

829● Increase in retained earnings:
807 million yen

18,634

1,063
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02 FINANCIAL RESULTS
Balance sheet status: Interest-Bearing Debt Analysis● Emergency fund for COVID-19:(Million yen)

Working capital

Equipment fundInvestments andacquisitions

Loans receivableTotal

1 billion yen, Actual debt balance: 4,071 million yen, down by 1,055 million yen

41st fiscal period

40th fiscal period

Jan-2021

Jan-2020

4,896〔3,896〕
126

Change42nd fiscal period(Forecast)Jan-2022

4,948

△52

4,511

76

50

147

48

97

△49

3

－
5,071
〔4,071〕

5

△5

－

5,126

△55

4,661
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02 FINANCIAL RESULTS

Cash flow status●Operating cash flows•

Increasein income before income taxes
・税金等調整前当期純利益の増加
and minority百万円
interests: 750 million yen

750•●Investing cash flows●Financing cash flows

・固定資産取得による支出の減少• Decrease in payments for acquisitionof fixed
assets:267
百万円267 million yen

・長期借入金による増加額• Increasein long-term loans: 1,050 million yen

1,050百万円• Decrease due to repayment of short-term
・短期借入金の返済による減少額
loans: 941 million yen
941百万円・たな卸資産の減少

Decrease in inventories: 343 million yen

343百万円(Million yen)

Cash flows from operating
activities
Cash flows from investing
activities
Free cash flows
Cash flows from financing
activities
Cash and cash
equivalents
Balance at the end of thequarter

41st fiscal period
Jan-2021

1,899
△438
1,461
△307
3,942

40th fiscal period
Jan-2020

Change

987

912

△783

△345

204

1,257

△606

△299

2,790

1,152
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02 FINANCIAL RESULTS

Major management indicators status
41st fiscal period

40th fiscal period

Jan-2021

Jan-2020

ROA（％）

6.0

2.8

＋3.2p

ROE（％）

10.6

2.4

＋8.2p

Shareholders’ equity ratio
（％）

47.9

46.2

＋1.7p

Net assets per share (Yen)

646.89590.37＋56.52 yen

Net income per share (Yen)

65.84

13.93

＋51.91 yen

Change40th fiscal period

41st fiscal period

Jan-2020

Jan-2021

Stock price

492 yen

780 yen789 yen

PER

35.32 times

11.85 times

11.85 times● PER of TAKASHO stock

March 2, 2021

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02 FINANCIAL RESULTS

FY1/22 Short-term Plan
41st fiscal period
Jan-2021

Ratio to sales

42nd fiscal period
Jan-2022

Ratio to sales

YoY

Net sales

18,484100.0%

19,680100.0%

106.5%

Gross profit

8,259

44.7%

8,770

44.6%

106.2%

SG&A

7,103

38.4%

7,575

38.5%

106.6%

Operating income

1,156

6.2%

1,195

6.1%

103.3%

Ordinary income

1,152

6.2%

1,190

6.0%

103.3%Net income
attributable toowners of parent

952

5.1%

900

4.6%

94.5%

(Million yen)

EPS (Yen)

65.36

61.73

Dividend pershare (Yen)

20.00

20.00

* Figures for FY1/21 includes 66 million yen in extraordinary gains and losses. After deducting extraordinary gains and losses, net income will be 846 million yen.

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02

BUSINESS DEPLOYMENT

15

02 BUSINESS DEPLOYMENT

Established

August 1980

Listing market

Tokyo Stock Exchange 1st Section

Capital1,820,860,000 yen

No. of employees 760 in the whole Group
Group companies Japan: 5, overseas: 12
Our group proposes
total garden style

PRO garden exterior field
Proposals for detached houses (new construction, renovation) and house builders

Contract field
Proposals for non-residential buildings such as public works and commercial facilities

Home center, GMS field
Proposalsfor home centers and specialty stores
ホームセンター、専門店向け提案

E-commerce
Develop online sales from the website

International
Overseas expansion of PRO use and HOME use businesses

16

02 BUSINESS DEPLOYMENT

我々はガーデンのライフスタイルメーカーとして

We create comfortableand pleasant family
幸せな家族のくらしとlifestyles with healthy garden spaces
笑顔で健康的な空間をつくります

We aim to be a global, one-of-a-kind company that
constantly creates new value, and contributes to theculture of urban environments and gardens.

We are a company that provides a better garden life
globally.

Industrialization and modernization of gardens and exteriors.
Creating a pleasant and healthy life in mentally andphysically.

17

02 BUSINESS DEPLOYMENT

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02 BUSINESS DEPLOYMENTMarket : Garden and exterior in general homes and non-residential facility
Domestic market size

Non-residential
marketHotels, inns and stores¥13
trillion

Restaurants, commercial facilities, etc.

CONTRACTPRO market

Home centers, specialty storesE-commerce, mail order, etc.

DIY

¥700
billion

Garden & Exterior
Detached houses: 850,000 units

DIY market

PRO

Overseas Market Size

¥700
billionOverseas＋ markets¥16.5
trillion

UK, EU, USA, AUS
INDIA, KOREA

19

02 BUSINESS DEPLOYMENTBusiness Deployment
In-house product plant, in-house software plant, in-house commerce, planning company,
construction and maintenance

Manufacturing &creating space

As a hybrid company,
We offer lineups of merchandises that produce a total garden
App
Manufacturing ←→ software development

SoftwareGS
Create videos

HumangrowthShare
IT
Strategy

Global strategy

MarketgrowthCreating Health, Happiness and the Environment
Publication of Garden Lifestyle Information on the Web
Nationwide deployment of the industry's only specialty garden exterior
showroom
Provision of web tools such as VR, AR apps, and home video
Building a Unique Sales Network RGC and Meister System

Building sales channels for professional routes and DIY routes
Overseas growth rate of approximately 128% for DIY routes (compared to the previous year)20

03 BUSINESS DEPLOYMENTDevelopment of DX (Digital Transformation)
AR/VR Garden Simulation App

Garden space video

Total package

21

02 BUSINESS DEPLOYMENT

Proposal for Total Packages
Propose total packages tailored to various age, values, regions, and tastes
Up to 500 thousand yen

From 1 million yen

Up to 1.5 million yen

From 2 million yen

Up to 1.5 million yen

From 3 million yen

Up to 150 thousand yen

Gate
PackageUp to 500 thousand yen

Entrance
PackageUp to 500 thousand yen

GardenPackage22※ * Source:「2018年住宅・土地統計調査」より
2018 Housing and Land Survey

02 BUSINESS DEPLOYMENTHouse

GardenTotal number of houses:

53,660,000 units*
Vacant house: 8,760,000 units*
Large potential demand

Propose a garden package deals

1% of the total number of houses × garden (0.3 million yen)
→ Market of about

160 billion yen

Changes in the way of people living due to COVID-19→ making people seek a more ideal, rich, fun,and comfortable life. Demand expanding in the DIY lifestyle market.
23

02 BUSINESS DEPLOYMENTCharacteristics of HOME use business
Development of own
brand

PBs of leading home centers in Japan andoverseas

Style BusinessDirectly deployed from China's own plants
In-house [HOME use G&EX specialist plant] Site area of 25 thousand tsubo

Previous plant
20 thousand tsubo

New plant
5,000 tsubo

STEEL

WOOD

ALUMINIUM

PLASTICLED SOLAR LIGHT

SEWING24

02 BUSINESS DEPLOYMENT

Initiatives of HOME use business

Domestic market

Demand for living in the garden grew due to the stay-at-home trend
Changes in the value of flowers, greenery and household life, gardening, and living

25

02 BUSINESS DEPLOYMENT

Establishment of gardening culture driven by stay-at-home trend26

02 BUSINESS DEPLOYMENT

Major changes in the times

End of mass production and consumption

Era of land

Era of wind

An age centered on material civilization
with objects, symbolized by civilization.

Invisible like wind
Information, knowledge,
communication and education

Keywords

Health, environment,
culture"Age of Civilization"“Consumption of tangible goods""Age of Culture"“Consumption of intangible goods"27

02 BUSINESS DEPLOYMENT

Value provided by the TAKASHO
Changes in life styles under the post-COVID era
Health (Garden Therapy), Culture (emotion, art), Environment (greenery, natural, SDGs)

Flower

Green

With a garden lifestyle that creates
customized wealth and happiness for eachpeopleGardenIT

Lifestyle

Make a country with highlevel of hippinessIn more happy countries28

02 BUSINESS DEPLOYMENTWorld Happiness Report

In addition to surveys that gauge each country's citizens' perception of how happy they
are, these measures are based on factors such as GDP, life expectancy, generosity,
social support, freedom, and corruption.

Consumer awareness shifts from physical quantity to happiness and health

Designing ahouse andgarden at the

To the health industry

same time

Even in the world’s 3rd largest GDP

Japan ranked 62nd in the World Happiness Report29

03

MEDIUM-TERM MANAGEMENT PLAN

30

03 MEDIUM-TERM MANAGEMENT PLAN

Business Strategy
No.1 in growing exterior products and gardens

From Only 1 to No.1 G&EX Comprehensive Manufacturer
Manufacturing plants: Further increase in capacity utilization
Software plants: Space Proposal, Establishment of a new team specializing invirtual space design and production for AR and VR● Established an experiential showroom in Nagoya: located in Tokyo, Nagoya,
Osaka, Tohoku, and Hiroshima● Deploying GEMS: IoT in the Garden (Low-volt lights, cameras, and sound linked toan app)● Garden Service Network● Garden story31

03 MEDIUM-TERM MANAGEMENT PLAN

Establishment of web showrooms through physical stores and online

VR from anywhere
in your favorite time

Experience real space32

03 MEDIUM-TERM MANAGEMENT PLAN

Nagoya Showroom
Physical & Online
Hybrid type233

03 MEDIUM-TERM MANAGEMENT PLAN

FY1/22 Plan/Long-term Plan
【Million yen】

Net
sales
売上高

100 billion yen

Operating
営業利益
incomeOrdinary
経常利益
income12,000Net
income
純利益

10,00080,00050

60,000

ProfitNet sales

100,000

8,000

billion yen

6,000

40,0004,000

20,0002,000

00
2021年1月期
FY1/2021(Million yen)

2022年1月期
FY1/2022

FY1/2023
2023年1月期

FY1/2024
2024年1月期

FY1/2025
2025年1月期

FY1/2030
2030年1月期

FY1/2050
2050年1月期

FY1/21

FY1/22

FY1/23

FY1/24

FY1/25Results

Plan

Plan

Plan

Plan

Net sales

18,486

19,68021,31022,80024,700Operatingincome

1,156

1,195

1,391

1,660

2,110

Ordinary
income

1,152

1,190

1,350

1,610

2,050

Net income

952

900

972

1,159

1,476

* Figures for FY1/21 include extraordinary gains and losses of 66 million yen. Net income after the deduction of extraordinary gains and losses is 886 million yen.

34

04

SDGs

35

SDGs Initiatives
TAKASHO contributes to society with our sustainable development goals under the philosophy of "always
anticipating change, creating new value, and contributing to the creation of urban environmental and garden
culture".

Apr. 2016
Established the Japan Garden Therapy Association
By Nobuo Takaoka as Chairman

Garden Therapy
Extend healthy life
Prevention of disease enhancing
self-healing capabilities
Stimulates the five senses
and activates the brain

36

The purpose of this report is to provide information on the Company's financial results for the
fiscal year ended January 2021, and not to solicit investments in the Company’s shares.
This material has been prepared based on data as of January 20, 2020.
Opinions, forecasts and other statements contained in this material are based on our judgment
at the time of preparation of the materials. We do not guarantee or promise the accuracy orcompleteness of the information, and they may be changed without notice in the future.
"Net income" in this document represents "Net income attributable to owners of parent."[IR Contact]
Atsushi Inoue, Corporate Officer, Corporate Management
Headquarters Vice Director
E-mail:soumubu@takasho.co.jp
TEL:073-486-2540

37