Q2 FY1/2023 Financial Results

August 26, 2022
Stock Code：7590
1

01

PERFORMANCE STATUS

2

01 FINANCIAL RESULTS for Q2Q2 FY1/2023 Performance Highlights
Net sales(Million yen)

Operating income

12,000(Million yen)

11,270 11,022

1,400

1,163

1,200
11,00011,022

million yen

97.8％ YoY

786

9,706
10,000

1,000

million yen

67.6％ YoY

9,000
8,000

0
FY1/2023

FY1/2021

FY1/2022

FY1/2023

Q2

Q2

Q2

Q2

Q2

Q2

Net income(Million yen)

89.5％ YoY

1,098

400

269 million yen

200*Currency swap to reduce future
reduction of foreign exchange gains

754

679

million yen➢ Increase in consolidated tax rate

37.9％, up by 8.7ppt.

0

865

800

78.5％ YoY

600

➢ Foreign exchange gains(Million yen)

1,000

1,227

1,000
800

400

FY1/2022

1,200

million yen

600

FY1/2021

1,400

1,098

786

200

7,000

Ordinary income

816

800

600

679

535

400

200
0

FY1/2021

FY1/2022

FY1/2023

FY1/2021

FY1/2022

FY1/2023

Q2

Q2

Q2

Q2

Q2

Q2

3

01 FINANCIAL RESULTS for Q2

Sales segment status
PRO use6,724 million yen
107.2％ YoY[Factors for increase]① Increased brand awareness via TV andweb advertising② Increase in acceptance rate and unit
price
③ GLD video production started inearnest④ EX market remained flat compared tolast year, up 7.2% for the Company

HOME use

3,280 million yen
100.0％ YoY[Factors for increase/decrease]① Decline in customers of home
improvement stores② Steady sales of sunshaderelated products③ Growth in online store sales④ Overall sales in the home
improvement store: 85-90%, Our
company: 100%

International business

1,005 million yen
58.8％ YOY

[Factors for decrease]① Lower demand for gardening
in the U.S., reflecting growing
more interest in travel andoutdoor activities② Consumer sentiments in
Europe decreased due to theprice hikes of utility bills andessential goods(Million yen)

8,000
6,000

6,273

6,724

5,882

5,732

FY1/2019

FY1/2020

FY1/2021

FY1/2022

FY1/2023

Q2

Q2

Q2

Q2

Q2

3,280

3,280

5,483

4,000
2,000
0
(Million yen)

5,000

4,000

3,052

3,000

2,640

3,028

2,000
1,000
0

FY1/2019

FY1/2020

FY1/2021

FY1/2022

FY1/2023

Q2

Q2

Q2

Q2

Q2

(Million yen)

2,000
1,500

1,709
1,079

1,005

896

939

FY1/2019

FY1/2020

FY1/2021

FY1/2022

FY1/2023

Q2

Q2

Q2

Q2

Q2

1,000
500

0

4

01 FINANCIAL RESULTS for Q2

Sales segment status
Q2 FY1/2023

Ratio tosales

Q2 FY1/2022

Ratio to
sales

YoY

PRO use

6,724

61.0%

6,273

55.7%

107.2%HOME use

3,280

29.8%

3,280

29.1%

100.0%

International business

1,005

9.1%

1,709

15.2%

58.8%

Others

11

0.1%

6

0.0%

182.8%

Total

11,022100.0%

11,270100.0%

97.8%(Million yen)

≪Sales composition ratio by segment≫International
business

International
business

15.2%

HOME
use

FY1/2022
Q2

PRO
use
55.7
%

9.1%

HOME
PRO
use
FY1/2023 use
29.8%

Q2

61.0%

29.1%

5

01 FINANCIAL RESULTS for Q2

Sales Trend of the PRO Use Business: Growing even under the COVID-19 Crisis
Initiatives for sales growth
•
•
•
•
•

Propose packaged products for gardening and house exteriorStrengthen promotion via DX (digital transformation): “Garden simulation app”, “Garden space movie”, “Web showroom”
Established network with contractors; Launched support services
Expanded floor space and established new buildings for 4 factories in Japan, Reinforced production system throughexpansion of overseas factories: Invested 800 million yen
Increase brand awareness via TV and web advertising *”Channel Takasho”: 56,000 PVs in June → 108,000 PVs in July

(Million yen)

(Million yen)

14,00015,00015,521
13,00012,337

11,0009,000

14,469COVID-19 crisis

11,281
10,5905,000

10,00011,144
8,000

7,000

5,475

13,151

12,000

5,882

5,732

6,273

6,724

7,344

7,916

6,000
4,000

H1 Trend
2,000

3,000
39nd fiscal period 40nd fiscal period 41nd fiscal period 42nd fiscal period 43nd fiscal period 44nd fiscal period 46nd fiscal period
Plan
Plan

6

01 FINANCIAL RESULTS for Q2
PRO use: Sales trends by product category
Growth in garden-related products as people spend more time in gardens;
Steady growth in lighting, flooring material, and enclosed veranda(Million yen)
3,500

2,929

3,000
2,513

3,320
40th

40期
period

2,629

41st

41期
period42nd

42期
period

Q2 of

43rd
43期2Q
period2,500*Red graph represents the full-year plan for the 43rd period.
2,000
1,500

1,383

1,484 1,516

1,572

1,558
1,328

1,264 1,279
1,003 1,062

1,000

862

753

500

537 630

781 919

1,493
1,346 1,326
701

448

0
フェンス関連Fencesライト関連
Lights

フロア材関連Flooring
materials

ガーデンルーム関連
Enclosedveranda

人工竹関連
Artificial
bamboo7

01 FINANCIAL RESULTS for Q2

Lighting Domain: TAKASHO DIGITEC grew driven by its lighting effect products
5-year trends(Million yen)

2,500
2,100
1,955

2,000
1,721
1,500

1,416

1,414

418

382

568

1,786

548

635

998

FY1/2023
Q2

FY1/2022
Q2

YoY

700

1,000

500

(Million yen)

1,400
1,238 1,320
1,153
1,032

Lighting

803

604 132.9%

LED sings

373

363 102.7%

1,176

967 121.6%

Total

0
14th period 15th period 16th period 17th period 18th period 19th period
Lighting

LED signs

Plan8

01 FINANCIAL RESULTS for Q2

Lighting and LED signs: Example of works and market size
● Lighting (detached house, commercial facility, public facility)● LED signs● Market size of LED signs:
・Outdoor advertisement
market: about 320 billion yen
・Digital signage market: 150
billion yen● Market size of lighting:
About 1 trillion yen

901 FINANCIAL RESULTS for Q2

Sales segment status

Sales by Channel: HOME Use Business■ Sales by channel≪Domestic≫(100 Million yen)(100 Million yen)

30.0

8.0

25.0

21.7

24.2

23.6

20.0

6.5

15.0

6.0

10.0
5.0
0.0

FY1/2021 FY1/2022 FY1/2023

Q2
Q2≪Home center≫

7.1
6.5

5.0
4.0
3.0

5.0

2.0

4.5

1.0

4.0

FY1/2021 FY1/2022 FY1/2023

Q2

Q2

Q2

≪E-commerce≫

Sales through 4 major e-commerce portals in Japan(Million yen)

200

121%

133%

150
100

・Sales of Amazon:
113% YoY
Our sales exceeded the growth inoverall EC market by 20ppt.

157%

50
AmazonQ2 FY1/2021

MonotaROQ2 FY1/2022

0.0

4.0

3.4

FY1/2021 FY1/2022 FY1/2023

7.4
5.6
4.5

FY1/2021 FY1/2022 FY1/2023

Q2
Q2
Q2
≪Home center≫

Q2

Q2

Q2

≪ E-commerce ≫(Ref.) Current performance of major EC portals
120.0%

113%

120%
102%

100.0%

112%

106%

80.0%
60.0%

113%

0
AOYAMAGARDEN

7.0

5.5

Q2

9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

7.5

8.0
6.0

6.0

≪Overseas≫(100 Million yen)

9.0

7.5
7.0

(100 Million yen)

ASKUL

≪HC
≫

40.0%
20.0%

AmazonMonotaRO
2021

ASKUL
2022

RakutenYahoo!

10

01 FINANCIAL RESULTS for Q2

Overseal Sales Subsidiary:
Current and Future Status (VEGTRUG: 3 companies’ total)
Profits

Net sales【Factor for recovery from H2 onward】① Cultivate untapped areas in Europe② Further develop online sales
channels③ Promote introduction of products tostores45nd fiscal period

44nd fiscal period

45nd fiscal period

44nd fiscal period

43nd fiscal period

43nd fiscal period【Factors for decline in H1】① Decline in demand for gardening in the U.S.
reflecting the growing interest in travel andoutdoor activities② In Europe, people refrain from shopping
due to the price hikes of utility bills andessential goods③ Adjustment of delivery dates with
suppliers

42nd fiscal period

41nd fiscal period

42nd fiscal period

41nd fiscal period

40nd fiscal period

40nd fiscal period

0500

1,000 1,500 2,000 2,500 3,000 3,500(Million yen)

-300

-200

-100

0
(Million yen)

100

200

300

11

01 FINANCIAL RESULTS for Q2

Profit & Loss status
Gross profit margin :① E-commerce ratio in the HOME use business (domestic

44.9% Improved by 0.1ppt. YoY● Remained at the same level as in the previous year,
despite the rising cost trend due to soaring raw
material and ocean freight rates.

+ overseas)

28%

30%

Up by 2ppt.

② Reduction of cost of sales through forward
exchange contracts③ Sales of inventory with low valuation unit price(Million yen)

FY1/2023
Q2

FY1/2022
Q2

YoY

Gross profit

4,951

5,049

98.1%

Operating income

786

1,163

67.6%

Ordinary income

1,098

1,227

89.5%

679

865

78.5%

Net income attributable toowners of parent

12

01 FINANCIAL RESULTS for Q2

Profit & Loss status
SG&A to sales ratio:

37.8%

Up by

3.3p

Increase in upfront investment costs, such as for recruiting
human resources and holding physical exhibitions

Q2 FY1/2023

Q2 FY1/2022

YoY

1,650

1,519

108.6%

Shipping cost

648

733

88.5%

Sales promotion andadvertising expenses

399

319

125.1%

Commissions paid

381

328

116.3%

Depreciation andamortization

222

198

111.8%

4,165

3,885

107.2%(Million yen)

Personnel expenses

Total

13

01 FINANCIAL RESULTS for Q2

Balance sheet status(Million yen)

Current assets

Q2 FY1/2023

17,755Q2 FY1/2022

13,569Change

4,186

8,352

7,628

724

Total assets

26,10821,198

4,910

Current liabilities

11,256

10,0881,168

Fixed assets

Fixed liabilities

Net assets
Total liabilities andnet assets

791

684

107

14,06010,425

3,635

26,10821,1984,910

Main change factors● Increase in cash anddeposits

2,091 million yen● Acquisition of property,
plant and equipment

683 million yen● Increase in short-term debt

882 million yen● Increase in leaseobligations

130 million yen● Increase in capital andsurplus2,457 million yen

14

01 FINANCIAL RESULTS for Q2

Balance sheet status● Working capital increased due to delay in settlement timing caused by disruption in container transportation.

Up by 821 million yen YoY● Interest-bearing debt ratio was

35.1% in Q2, 39.4% in Q2 of the previous fiscal year

Q2 FY1/2023

Q2 FY1/2022

ChangeFY1/2023 Forecast

Working capital

4,755

3,872

883

4,756

Equipment fund

129

165

△36

111

Investments andacquisitions

－

24

△24

－

4,884

4,063

821

4,866

(Million yen)

Total

15

01 FINANCIAL RESULTS for Q2

Cash flow status● Operating cash flows
・Increase in trade payables paid

● Investing cash flows● Financing cash flows

・Increase in payments for purchase ofproperty, plant and equipment

・Increase in proceeds from shortterm borrowings

1,770 million yen

278 million yen

972 million yen

Q2 FY1/2023

Q2 FY1/2022

Cash flows from operating
activities

△236

1,292

△1,528Cash flows from investing
activities

△376

△279

△97

Free cash flows

△612

1,013

△1,625

Cash flows from financing
activities

416△1,402

1,818

Cash and cash equivalents
Balance at the end of thequarter

5,729

3,638

2,091

(Million yen)

Change16

01 FINANCIAL RESULTS for Q2

Major management indicators status
Q2 FY1/2023

Q2 FY1/2022

ChangeROA（％）

3.3

5.6

△2.3p

ROE（％）

5.6

9.0

△3.4p

Shareholders’ equity ratio（％）

53.4

48.7

△4.7p

Net assets per share（Yen）

794.85708.12＋86.73 yen

Net income per share（Yen）

38.75

59.34

△20.59 yen

Q2 FY1/2022

Q2 FY1/2023

Stock price

876 yen

724 yenPER

14.76 times

18.68 times● PER of TAKASHO stock17

01 FINANCIAL RESULTS for Q2

FY1/2023 Short-term Plan
43st fiscal period
Jan-2023

Ratio to sales

42st fiscal period
Jan-2022

Ratio to sales

YoY

Net sales

23,204100.0%

20,781100.0%

111.7%

Gross profit

9,945

42.9%

9,060

43.6%

109.8%

SG&A

8,377

36.1%

7,585

36.5%

110.4%

Operating income

1,568

6.8%

1,474

7.1%

106.4%

Ordinary income

1,639

7.1%

1,530

7.4%

107.1%Net income
attributable to ownersof parent

1,184

5.1%

1,001

4.8%

118.3%EPS（Yen）

67.55

65.00

Dividend per share
（Yen）

23.00

23.00

(Million yen)

18

02

BUSINESS DEPLOYMENT

19

02 BUSINESS DEPLOYMENTTAKASHO group starts to grow,transitioning from value-based
management to growth-based
management

Our human resources are well developed and our
growth environment is finally in place with the neworganization.
Taking on the challenge to the Hybrid Strategic
Management
Transition to the prime market, the top-tierstock market for global companies, from 2022

02 BUSINESS DEPLOYMENT
In-house Exhibition“The 19th Takasho Garden & Exterior Fair" held on July 28 and 29
Packaged designers’ garden

Number of physical visitors was 150% YoYLighting for hotels and Ryokans

Facade exterior21

02 BUSINESS DEPLOYMENTManagement StructureCEO

Director, Senior Managing Executive Officer

Nobuo Takaoka

Hiroshi Sohgawa
Length of service: 34 years

In charge of Overall GroupManagement

In charge of Human Resources andGeneral Affairs

Managing Executive Officer
Managing Executive Officer

Executive Officer
Average lengths of service:
19 years*Excluding those concurrently serving as directors.

49 years old

In charge of Manufacturing
and Development

In charge of PRO Use
Business Management

Ryo Nakagawa

Ryohei Utsumi
Length of service: 10 years

In charge of Overseas
Manufacturing Subsidiary
Management

In change of Overseas Sales

Executive Officer

Atsushi Inoue

Takahisa Kitayama
Since newgraduate

Executive Officer

Since newgraduate

Length of service: 24 years

In charge of Finance &Accounting

In charge of HOME Use
Business Management

Executive Officer

Daisuke Tsukada

Executive Officer

Ryosuke Furusawa

52 years old

Masayuki Anno

45 years old

Length of service: 10 years

44 years old

Length of service: 20 years

In charge of IT & Digital
Strategy Promotion

Length of service: 26 years

Since newgraduate

In charge of Market Creation

Formerly at Iris Ohyama

46 years old

Length of service: 28 years

Formerly at LIXIL and
SHINNIKKEI

49 years old

Length of service: 26 years

Managing Executive Officer

50 years old

Length of service: 9 years

Length of service: 26 years

Executive Officer

Since newgraduate

54 years old

Since newgraduate

Executive Officer

48 years old

Kenji Tsuchida

Kohei Takada

Average age: 48 years old

Since new graduate
when the Company started new
graduate hiring

Formerly at Hitachi, Ltd.

Since newgraduate

In charge of Purchasing and
Logistics

Corporate Advisor
Nobuo Momose

Takahiro Arie

Formerly General Manager of SP Department, Dentsu Inc. andManaging Director of Lotte Corporation

Awarded the Instructor Of The Year twice during
his tenure at Digital Equipment Japan
Established KT Consulting Co.,Ltd.
Senior Managing Director and Senior IT
Consultant

Director of Tempology Future Systems Organization
Representative Director of Tempology Future Consortium Inc.
Outside Director of our company

Seijun Nishihata
From 21 years old, he started his career as a plant hunter, traveling around Japan andthe world to collect various plants and deliver them upon request.
He has delivered plants to botanical gardens, government agencies, corporations,aristocrats, and royalty in Japan and abroad.
In 2012, he established Sora Botanical Garden project, an activity to "plant trees inpeople's hearts.”

22

02 BUSINESS DEPLOYMENTBusiness Segments
PRO useDomestic market size

14 trillion yen

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

PRO garden exterior field
700 billion yen

Proposals for detached houses (new construction, renovation) and house builders

HOME use

CONTRACT

Domestic market sizeHome center, GMS field

700 billion yen

Proposalsfor home centers and specialty stores
ホームセンター、専門店向け提案

PRO

E-commerce
Develop online sales from the website

Overseas

Overseas market size

Overseas expansion of PRO use and HOME use businesses

14 trillion yen
DIY23

02 BUSINESS DEPLOYMENT

Features of the PRO use businessAs a "garden lifestyle product manufacturer", we offer various items for outdoor spaces

GARDEN
Shade nets

Western style
Japanese style

Artificial materials
Natural materials

Enclosed veranda
Exterior designing

Water garden
Spatial designing
Outdoor furniture
Deck tiles

Lighting

Lighting effects
Water effects

02 BUSINESS DEPLOYMENT

Features of the PRO use business
Exterior Facade: The face of home with excellent design that is comfortable and in harmony with the building

EXTERIOR
Parking space

Western style
Japanese style

Artificial materials
Natural materials
Exterior designing

Gate

Gateposts/Nameplates/Posts

FencesSpatial designing

Tiles

Lighting

Lighting effects
Water effects

02 BUSINESS DEPLOYMENT

Features of the PRO use business
Functionality and design for a variety of outdoor spaces

Framed facade

Contract
Parasol

FencesFurniture

Western style
Japanese style

Artificial materials
Natural materials

Design panel
Exterior designing

Deck
LED signs

Spatial designing
Lighting

Lighting effects
Water effects

02 BUSINESS DEPLOYMENTBusiness Development
Expand the lifestyle and hybrid management to achieve 50 billion yen in sales in 2030

Manufacturing Factory【Domestic factory】
Purchase of a production facility and introduction of the production
systemSoftware Factory
Established a subsidiary “GLD-LAB. Co., Ltd.”, engaged in 4D
spatial design and XR simulation business, on July 27, 2022

←Expand space for Digitec factory
Purchase of production facility

Total investment:

1.9 billion yen【Overseas factory】
Construction of factories and stockyards←Expansion of Digitec factory in China↓Establishment of a stockyard in Jiujiang
factory

GLD-LAB. Co., Ltd.

GLD-LAB. in the Philippines

4K perspective video
production

Develop AR simulation app

02 BUSINESS DEPLOYMENTDevelopment of Digital Transformation (DX)Remote VR: Home and garden
simulation

Residential Perspective Video/VR Production
Service

MetabaGarden for MR Glass

GLD-LAB. design network

MetabaGarden Paid Registration Service

02 BUSINESS DEPLOYMENTCharacteristics of HOME use business
Development of own
brand

PBs of leading home centers
in Japan and overseas

Style BusinessDirectly deployed from China's own plants
In-house [HOME use G&EX specialist plant] Site area of 82 thousand m2

STEEL

WOOD

PLASTICLED SOLAR LIGHT

ALUMINIUM

SEWIN
G

29

02 BUSINESS DEPLOYMENT

Initiatives of HOME use business Proposing a lifestyle that matches your interests
DIY exterior

Vegetable and flower garden

Living garden / Seasonable garden
Total sales
volume:over 100,000
units

30

02 BUSINESS DEPLOYMENT

Future Development into Europe market *Enter into untapped regions● Europe-wide
Develop our business throughout Europe through drop
shipping from German warehouses via EC platforms such as
Amazon EU/Wayfair EU● Germany
Cooperation with the EU branchStart negotiations with garden centers and other stores forthe introduction● France
Start approaching Manomano (for online sales)● DenmarkContacting with Danks (retail group)● Netherlands, Belgium, France
Develop sales agents31

02 BUSINESS DEPLOYMENTStrengthen online sales in North America/Europe
Top 10 Online Sales Share Ranking in the U.S. (2020)＊Start sales at Amazon EU＊Expand sales in US/EU/UK

32

02 BUSINESS DEPLOYMENT

Product Strategy
Current status: Product mix centered on planters for enjoying home vegetable gardens

VegTrug

Greenhouse(wood)

Herb Planter

Barrel Planter

Bottom Water
SupplyPlant Stand33

02 BUSINESS DEPLOYMENT

Product Strategy
Future Development: Increase products thatcan be used throughout the garden● Planter● Greenhouse● Steel● Pergola● Furniture● Lights & Fountains● New Products34

02 BUSINESS DEPLOYMENTDevelopment of professional use products into the U.S. market
Horizontal expansion of
successful cases in Australia to
the U.S. market

Private residence in Los Angeles, California
Under construction

Delivery site in Australia

Private residence in Miami, Florida
Under construction

Private Residence in San Diego, California
Under Construction

35

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 happinessIn more happy countries
36

03

MEDIUM-TERM MANAGEMENT PLAN

37

03 MEDIUM-TERM MANAGEMENT PLAN

FY1/2023 Plan/Medium-to-Long-term Plan
100,000

100 billion yen Profit

12,000【Million yen】

10,00080,000Net sales
売上高

Operating
営業利益
incomeOrdinary
経常利益
incomeNet income
純利益

8,000

50 billion yen

60,0006,000

40,0004,000

20,0002,000
00

2022年1月期
FY1/2022

2023年1月期
FY1/2023

2024年１月期
FY1/2024

2025年1月期
FY1/2025

FY1/2026
2026年1月期

FY1/2022

FY1/2023

FY1/2024

FY1/2025

FY1/2026

FY1/2030

FY1/2050

Results

Plan

Plan

Plan

Plan

Plan

Plan

Net sales

20,781

23,20425,00027,00030,00050,000100,000

Operatingincome

1,474

1,568

2,000

2,400

3,100

5,000

10,000Ordinary
income

1,530

1,639

2,100

2,500

3,150

5,000

10,000Net income

1,001

1,184

1,450

1,700

2,200

3,600

7,200

(Million yen)

FY1/302030年1月期

2050年1月期
FY1/50

38

04

SDGs

39

SDGs Initiatives
TAKASHO and JP-HOLDINGS collaborate to launch VegTrug® Kids, afood education program through farming and eating

In October 2021, our company and JP-Holding, a leading childcare business company engaged in
the operation of children’s houses and after-school clubs, started a collaboration to launch
VegTrug® Kids, a food education program for kids through farming and eating. The program is to
educate children about the joy of farming and eating vegetables. Initially, we have introduced theprogram at 173 Ask and Genkids daycare centers operated by JP Holdings' Japan Childcare
Service and Amenity Life, and plan to introduce it to more centers to follow.
40

The purpose of this report is to provide information on the Company's financial results for the
fiscal year ended January 2023, and not to solicit investments in the Company’s shares.
This material has been prepared based on data as of August 26, 2022.
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

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