Annual Report 2017
SRG TAKAMIYA CO., LTD.

Contents
The SRG TAKAMIYA Group’s History of Growth
The Competitive Advantage of SRG TAKAMIYABusiness Details
Growth Strategy
Management Message
Message from the President:
Medium-and Long-term Group Strategies
Message from the Executive Vice President:
Domestic Business Strategies
Message from the Senior Managing Executive Officer:
Financial Strategies
Strategies by Business Segment
Rental Business
Sales Business
Overseas BusinessCorporate GovernanceDirectors, Corporate Auditors and Executive Officers
Consolidated Six-year Summary
Main Products
Strategic Products
Corporate Information

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SRG TAKAMIYA CO., LTD. got its start selling wooden
scaffolding for construction sites, and through aproactive program of M&A and other measuresanticipating the changing times has expanded its
business scope and functions to include rental of
temporary equipment and materials, as well as
equipment development, manufacture, and sale.
Under the new medium-term management plan
launched in April 2017, we are implementing measures tomeet robust demand in Japan, and looking ahead tochanges in the business environment following the 2020
Tokyo Olympics and Paralympics. We are also cultivating
new businesses that will be growth drivers over the longer
term, including agriculture and overseas businesses.
The SRG TAKAMIYA Group will continue to enhance
its strengths, and steadily build a foundation forsustainable growth. Thank you for your understanding
and support.

Kazumasa Takamiya
Representative Director, President and Chairman

Annual Report 2017

1

EstablishedStarted a rental service forconstruction scaffolding

Japan
Started a rental
business•Started selling•Building construction
wooden scaffolding •Bridge construction•Urban civil engineering
Expanded(construction ofbusinesstreatment facilities)
fields•Demolition work

1969

1974

Embarked upon theenvironmental prevention
field
Moved into the market fordisaster prevention /disaster planning•Soil improvement work
•Landslide prevention work
•Maintenance / repair•Ultra high-rise building
construction andrenovation•Plant construction andrenovation

The SRG TAKAMIYA Group’s History of

14,017

2,889
Net Sales (¥ million)
EBITDA (¥ million)

2

SRG Takamiya

2006.3

Established HORY VIETNAM Co., Ltd.
Acquired Hory Corporation
Acquired Hory Korea Co., Ltd.

Acquired DIMENSION-ALL INC.

Merged Hory Corporation

Established the Construction Department.

Expandedbusinessareas

Moved into the manufacture and sales businessStarted the scaffolding set-up business withthe expectation of an increase in demand for
scaffolding set-ups.

Started the production andsales of next-generation
scaffolding by applying theknow-how gained in therental business todevelopment activities

Expanded network overseas toreduce production costs

Started the development /sales of products
designed for Japan / theASEAN region

Overseas•Scaffolding set-ups•Development and sales of temporary
equipment and materials•Development and sales of building
materials for residences•Development and sales of solar panel frame•Development and sales of building materials

2010•Systemized scaffolding(Ⅰq System)

2012

GrowthAcquired overseas rental businesses for theenhancement of overseas business activities•Agricultural greenhouses

2015

2018

SRG TAKAMIYA CO., LTD. has been making changes in industries
by enthusiastically implementing M&A activities and productdevelopment with a long-term viewpoint.
Invested heavily in
next-generation
scaffoldings and factories

Established anoverseas segment

36,763Hory contributes toour business activities
on a full scale

Gained manufacturingfunctions with theacquisition of Hory Group

34,261

6,932
6,747

23,201

14,530

4,126
3,280

2010.32012.32015.32017.3
Annual Report 20173

The Competitive Advantage of SRG TAKAMIYABusiness Details
As a specialist of light-duty temporary equipment, the SRG TAKAMIYA Group is capable of comprehensive
services from development / production to rental service, sales and construction.
Our group supports various workplaces including not only building construction sites but also landslide
prevention works and agricultural greenhouses using metal processing technologies that we have acquired
through the development of temporary equipment. In addition, we contribute to the development of industries
by improving the safety and the workability using high-value-added products and services through technologicalinnovation.
While we have stably expanded our business within Japan with our two core businesses, rental service andsales business, thus far, in the fiscal year ended March 2017, we established the overseas segment as part ofpreparations for the development of full-scale overseas business.
With DIMENSION-ALL in the Philippines, which is our overseas hub that we acquired in 2015 as aconsolidated subsidiary, we nurture our overseas business of rental and sales services as the center ofbusinesses that lead growth in the next generation.
Net Sales by Segment*

Net Sales (¥ million)
50,000Overseas
Business
9.8%

40,000Rental Business
51.8%
FY Mar. 2017

Sales Business
38.4%

34,26134,3502015.32016.336,76330,00020,00010,0000*Figures include internal sales and transfers.

2017.3Operating Income (¥ million)

Profit Attributable to Owner of Parent (¥ million)

4,000

2,500
3,098

2,070
2,983

3,000

2,153

2,000
1,516

2,429
1,500

2,000
1,000
1,000

0

500
2015.32016.32017.302015.32016.32017.3

Light-duty Temporary Equipment and Materials
Much of the equipment and materials used at construction sites is rented. Of this, the SRG TAKAMIYA Group specializes in providing
light-duty temporary equipment and materials that includes scaffolding erected for use by workers during construction.

Work Scaffolding
Scaffolding primarily set up around theexterior walls of buildings

4

SRG Takamiya

Falsework
Used to support heavy loads in buildings andcivil engineering projects such as bridges

Suspended Scaffolding
Scaffolding suspended for use in inspections,repairs and other work of road bridges

Functions
By utilizing the following five functions for light-duty temporary equipment, the SRG TAKAMIYA Group is not only able tooffer comprehensive services and secure supplies of superior equipment, but also can gain and share know-how.

Construction

We have a wide range ofrental equipment andmaterials for use on
various worksites, fromgeneral scaffolding tofalsework for use withbridge construction.

Sales of temporary
equipment, materials
for residences, used
temporary equipment
and materials centeredon the Hory brand.

Sales

RentalWe are developing andmanufacturing unique products
using metal processing
technologies that we haveacquired through the developmentof temporary equipment.

Assembly anddismantling ofscaffolding

Development /Production

CAD Drawings

We create CAD drawings andmake strength calculations for
scaffolding, perform tracing thatconverts paper frame drawings to
CAD data and create drawings
with 3D technologies.

Network

As of March 31, 2017

Utilizing our networks in Japan and overseas, we provide wide-scale high-value-added services.

Japan

Overseas[SRG Group][SRG Group]
Branches and offices: 20
Factories: 2
Stock yards: 28
Health and Safety Partner
Association: 50 companies

Hory Korea Co., Ltd.
HORY VIETNAM Co., Ltd.
DIMENSION-ALL Inc.
Cadian Vietnam Co., Ltd.
Cadian Myanmar Co., Ltd.
SRG Global Holdings Co., Ltd.

Annual Report 2017

5

The Competitive Advantage of SRG TAKAMIYA
Growth Strategy
The SRG TAKAMIYA Group promotes the following business strategies with a positive attitude, while improving
its sustainable company values by utilizing the synergies, while are the combination of these strategies.

Positive attitude

We cultivate our uniquemethods for productdevelopment by effectively
using our high-leveltechnologies including metal
processing technologies that
we have acquired through atemporary equipment
business.

Synergies

Expansion ofbusiness areas
and the range ofour products

Enhancementof productdevelopment
capabilities

We control quality andsafety in a thoroughmanner with our uniquestandards on safety andmaintenance.

Thoroughquality andsafety control

We extend the length of ourbusiness areas and the range ofour products into a growing
market to precisely meet thedemands from customers.

Expansion andimprovement ofour business
functionality

Expansion of
network

We accumulate / utilize theinformation within our groupon our customers andindustries that we haveobtained through our rental,
sales and construction
services.

We continue expanding ourgroup business within
Japan and overseas bydiligently conducting M&A
activities.

Key for rental business profit–utilization of depreciated assets
Because temporary equipment can be used even after the completion of a fiscal amortization period (eight years by the straight-line
method), it generates profits stably as long as we conduct adequate maintenance and own such equipment as our assets. In thestock-type business model, the funds gained by using depreciated assets are used for re-investment in equipment that is morehigh-functional and efficient.
In the late 1990s, when the whole industry was suffering from overstock, our company had secured a great quantity of equipment
by purchasing that had been released by other companies at reasonable prices. We have gained profits from the rental service byutilizing such equipment.

Change of depreciation

Prices of equipment (purchase expense)
Margin ratio (low)Margin ratio (high)

SRG Takamiya

assets generates
high profits.

End of depreciation
Sales of scrap
for recycling
8th year6

Use ofdepreciatedActual durable period: more than 20 years

Positive attitude
Scaffolding can be used for years, even after the completion of a fiscal amortization period (eight years), without
upgrade. Therefore, rental service companies usually secure their profits by using depreciated equipment without
making further investment.
Our company, however, has developed our business with a positive attitude by making strategic investment such as
the following by anticipating the maturation of the market.

Examples of strategic investment:
Investment for introducing equipment, forwhich high demand is expected in the
future, and those with high versatility.

Improvement of the efficiency of assets(ROA / ROIC)

Investment in product development thatenhances added value such as productquality and safety

Creation of the market

Investment in the expansion of businesshubs by M&A activities overseas

Re-monetization* by promoting the use ofdepreciated equipment overseas* Re-monetization: the term means to gain profits by promoting the use of depreciated assets in overseas markets using newly expanded business hubs.

These investments have increased EBITDA, which means the profits after depreciation and investment capacity have risen(refer to page 15). The new medium-term management plan includes the aims to increase free-cash flow by controlling
large-scale investments in assets for lease (temporary equipment), to improve our balance sheet, to re-design research anddevelopment activities and factories in Japan and overseas, and to efficiently invest in the sales business and other new
service fields. By setting these aims, we determine the timing of a positive promotion for a next business growth while
establishing new profit bases including overseas business.

Synergies
We enhance the advantages of the existing services and steadily develop new business with a wide range of ourbusiness fields and products, the five main functions in our business, our metal processing technology with high quality
and know-how, and by fully utilizing our internal and external networks.

Example of synergy between the main functions

Construction

Development

We preferentially introduce our new products to a construction site with theaim to promote these products. We can also apply the feedback from thesite workers to development activities.

Example of a synergy between the internal and external networks
SRG
TAKAMIYA's
Construction
Department

Scaffolding
companies

SRG
TAKAMIYA's
regional
rentalsubsidiaries

The domestic group networks and the network between scaffolding
companies allow us to steadily promote products with high added value
throughout Japan, which includesⅠq System, a next-generation scaffolding.
The network also makes it possible for us to respond efficiently and rapidly
to services in new areas including agriculture.

Annual Report 20177

Management Message
Medium-and Long-termGroup Strategies

Revising our business model tobe a corporate group withsustained growth
Kazumasa Takamiya
Representative Director, President and Chairman

Solid foundation established under theprevious management plan
Under the previous three-year management plan
(FY3/15-FY3/17), even though we were forced to revise theearnings targets, we laid the foundations for growth over the
medium and long term.
Specifically, we achieved positive growth in the rental
business forⅠq System, a next-generation scaffolding
developed to change the status quo in the industry, and havesteadily established a market for next-generation scaffolding.
Further, the agriculture business, launched as a new growthbusiness, has already begun producing results with major
projects for agricultural greenhouses, and we have highexpectations for future expansion. We also continued laying
the foundations for full-fledged overseas businessdevelopment, which we intend to cultivate as a growth driver
over the medium to long term.
One of the reasons we were unable to achieve our initialplan targets was the slow growth in construction volume. At
the time we formulated the plan, construction demand had
just begun a robust expansion as a result of Abenomics, andover the medium term we anticipated even greater demand
as a result of the 2020 Tokyo Olympics and Paralympics, aswell as revised earthquake resistance standards following
recent disasters. Accordingly, SRG and others in the industry
had high expectations for growth. However, the increasingly
severe shortage of skilled workers constrained expansion inconstruction volume, which had a major impact on ourearnings. Sales of the next-generation scaffoldingⅠq Systemsuffered as customers delayed purchases, and we fell well8

SRG Takamiya

short of our initial targets. Demand for solar panel frame
partially recovered during the plan period, but overall the paceof market contraction exceeded our expectations. The fact isthat our outlook for the business environment was off themark.
Nevertheless, the issues we are facing became clear
during this three-year period. Capital investment also finallybegan to rise in the latter half of FY3/16. We identified theissues for longer-term growth, and have already begun taking
steps to address them.

Next-generation scaffolding leading an
industry transformation
SRG’sⅠq System scaffolding has steadily become establishedin the market, capturing around 30% of the entire market for
next-generation scaffolding (SRG’s estimate). The industry as
a whole has begun shifting to equipment compliant with newsafety standards, and we anticipate that replacement demandcentered on next-generation scaffolding to finally begin in
earnest.
Anticipating long-term changes in the industry, in 2013
SRG began replacing its conventional lease assets with
Ⅰq System, and nearly completed the switchover during theprevious management plan. Such proactive investment
resulted in a large depreciation burden, but we plan to curb
large-scale investment in lease assets (temporary equipment
and materials) for the next three years. We believe that
increased sales demand for next-generation scaffolding, andthe recovery of investments made up to this point, will expand
earnings and allow us to improve our financial balance.

Vision and Targets for the 2014 Medium-Term Management Plan*■ Net Sales, Ordinary Income (¥ million)
Net sales

Vision50,000∙ Become the de facto standard, and aim to be a corporate groupdriving the qualitative development of the industry.

40,000∙ Emphasize profitability, and aim for a consolidated ordinary income
ratio of 8% or higher.

30,000Net sales

Ordinary income

Ordinary income

2014 Medium-Term Management Plan

32,443
3,006

34,261
3,325

34,35036,763

5,000
4,000
3,000

2,731
2,337

20,0002,000

10,0001,000

Earnings Targets∙ Consolidated ordinary income of ¥3.1 billion in FY3/17* Revised May 10, 20160

2014.32015.32016.32017.30

Evaluation of the 2014 Medium-Term Management Plan
Basic Policy

Evaluation

Result (○)/Issue (△)

Strengthen group managementfoundations○○ Integrated sales and rental marketing divisions○ Integrated business offices and locations, absorption/merger of subsidiaries○ Increased the number of directors and executive officers

Establish a high-earnings structure△○ Introduced high-utilization equipment and materials, mainlyⅠq System○ Transferred to overseas, sold or scrapped low-utilization equipment and materials○ Lowered costs through vertical group integration → Achieved in Japan(★ Continued as Group-wide activity including overseas subsidiaries)△ Up-front investments for business expansion squeezing earnings

Generate new growth businesses△△ Developed agricultural materials, structural equipment and materials(construction materials) (Full-scale contribution to earnings is an issue going forward)○ M&A with overseas formwork rental company DIMENSION-ALL (Philippines)

Investment Policy

Evaluation

Result (○)/Issue (△)

Replace lease assets (conventional
scaffolding toⅠq System), increase amountof high-utilization equipment and material○○ Replacement of conventional scaffolding toⅠq System nearly completed○ High utilization rate maintained with introduction of equipment and materials forrenovation work, general purpose materials

Expand production facilities, move
manufacturing offshore△△ Domestic factories being restructured, and manufacturing of general purpose
equipment and materials moved overseas (★ Continued)

Complement and expand groupfunctions (M&A, alliances)△○ Overseas formwork rental company DIMENSION-ALL (Philippines) acquired△ Forming alliances to gain expertise to enter new fields (★ Continued)

Financial Policy

Evaluation

Result (○)/Issue (△)

Proactive reinvestment of earnings○○ Broke away from existing service-oriented business model○ Reinvested in high-utilization, high-efficiency equipment and materials to hasten
recovery period○ Made proactive capital investments

Target equity ratio of 25%

×○ Procured long-term capital with low interest
× Earnings fell short of plan → Equity ratio 23.4%

Maintain double-digit ROE○○ Earnings fell short of plan → Leverage management → Final ROE 12.6%

Shareholder Returns Policy

Evaluation

Maintain current dividend level,
provide dividends consistent withearnings△

Result (○)/Issue (△)○ Maintained stable dividends△ Dividend not increased○ Share buy-back conducted (FY3/17)○ Total return 63.2% (Largest during business plan period, FY3/17)

Note: Measures marked with a star (★) are being continued over the medium and long term.

Annual Report 20179

Growth strategies in the new medium-term
management plan
The 2017 medium-term management plan that began from
April 2017 aims to allow for a flexible and agile response to
the continually changing business environment, and further
solidify our business foundation with a focus on growth from2020 and beyond.
During the plan period, the Japanese construction market
is expected to experience robust demand in preparation forthe 2020 Tokyo Olympics and Paralympics. Some observers
think the strong demand will continue, but considering that
fundamental problems such as labor shortages,
overconcentration in the Tokyo metropolitan area, andregional disparity will remain, we do not think construction
investment is likely to grow over the medium and long term.
Despite the demand trend, we are aiming to generate a new
earnings base, and consider 2020 as the deadline by whichto achieve it.
In the rental business in Japan, we plan to further
enhance operational efficiency, place emphasis on productswith high demand and profitability, and establish a market forsales while maintaining stable earnings.
In the sales business, we will strengthen the management
structure for manufacturing facilities in Japan and overseas,
and clarify roles and positioning. In Japan, we will focus
management resources on product research anddevelopment, and establish a framework to produce highvalue-added products with global appeal. Outside Japan, we
will restructure facilities, consolidate manufacturing of general
purpose products in Vietnam, and strengthen our sales andmarketing in ASEAN countries. In South Korea we will focus
on the rental business, and like in Japan, emphasize the
manufacture and sale of high-value-added products.
A promising market where we anticipate growth isagriculture business. SRG is applying the metal processing
technologies it has acquired from scaffolding development tooffer cost-competitive, highly weather-resistant products,

placing emphasis on providing framework structures thatenhance agricultural efficiency, including cooperation withoutside partners and utilization of the Internet of Things (IoT).
SRG is a new entrant to this market, but we believe that we
can utilize our strengths to create environments thatstrengthen Japanese agriculture.
The basic policy of the new medium-term management
plan is to establish an earnings model that combines a stocktype business generating stable earnings (focused on therental business), a flow-type business that fluctuates but withprospects for growth (mainly manufacturing and sales), andthe agriculture business offering growth potential. The
absorption-type merger with Hory Corporation planned forJanuary 2018 will also further strengthen our unified structure,from developing and manufacturing to rental, sales, designand construction, as well as lower costs by integrating themanagement structure, and enhance the speed ofdecision-making.
Through these measures, SRG aims to shift from its
previous focus on the rental business to a manufacturing andsales company with a core in metal processing technologies,
and become a corporate group with strong profitability andgrowth over the medium and long term.

Main strategies for the fiscal year ended
March 2018
The fiscal year ending March 2018 is a major turning point for
implementing the basic strategies. We plan to concentrate on
addressing the ongoing issues from the previous
management plan, and get a solid head start.
In the rental business, shipments for civil engineering
projects (one of the reasons for the revenue shortfall) are
expected to rise from summer 2017. Accordingly, we will
ensure efficiency in preparations for equipment and materials,
and increase rental income. In addition, through services
combining equipment rental and temporary construction(material and construction orders), we will actively pursue new

Basic Strategy: Business Model Combining Stock and FlowSRG aims to combine a stock-type business generating stable earnings (focused on the rental business), a flow-type businessthat fluctuates but with prospects for growth (mainly manufacturing and sales), and the overseas business offering growthpotential, in order to establish a corporate group able to generate high earnings and growth over the medium and long term.

New productmanufacturing
and sales
Agriculturebusiness

Flow-type business

Stock-type business

10 SRG Takamiya

GrowthOverseas rentals

Domestic rentals

Stabilityproduct marketing and product development expertise.
Further, we will utilize the Construction Department andscaffolding company network to expand operations including
agriculture and other growth markets, not just temporary
construction.
In the sales business, SRG will expand revenue andearnings by strengthening sales of next-generation scaffolding
in response to full-fledged demand, and the full-scale launchof shipments to new sectors such as structural materials andagriculture business.
Outside Japan, SRG will strengthen its management
structure, and enhance marketing activities to further expand
orders. We will also actively develop markets overseas for fully
depreciated equipment with low demand in Japan, mainly in
ASEAN countries, and gain renewed profit. We are steadily
recovering the up-front investments that had put pressure on
earnings, and aim to regain profitability in the fiscal year
ending March 2018.

The foundation supporting enterprise value
As SRG reforms its business structure and accelerates
overseas business expansion, corporate governancebecomes increasingly important. From the standpoint ofstrengthening the management structure, we are revising thecorporate governance structure including appointment of asecond outside director, seeking to enhance clarity andobjectivity in management and raise corporate value.
Proactive investment in overseas also increases the needto address collection risk and other types of risk
management. Business outside Japan will continue to be
managed directly by the president in order to quickly respondto issues. In addition, we are establishing a global risk
management structure, and cultivating local staff.
The most important management asset to expand
enterprise value is people. As we shift to becoming a
manufacturer, we plan to expand our workforce to include adiverse range of personnel, such as employees with a wealthof agricultural knowledge who can offer technical solutions.
We will cultivate and train personnel so that all group
employees, including next-generation management
candidates, fully understand the group’s policies, and are able
to generate high degrees of value with fresh ideas
unconstrained by conventional thinking.
SRG is also working to provide a positive work
environment, including actively encouraging employees totake advantage of extended leave benefits, maternity andchildcare leave, and shorter working hours for childcare. As aresult of these measures our turnover rate is as low as 7.7%,
keeping human asset outflow to a minimum. We will continue
to make active use of female and older employees, establish
a management structure open to all nationalities, offer varied
working styles including telecommuting, and implement othermanagement reforms that enhance employee motivation.

manufacturing and sales have become an increasingly largepart of our business as a result of strategic investments forlong-term growth, including the acquisition of manufacturer
Hory Corporation, overseas M&A, and the launch of
Ⅰq System, a next-generation scaffolding. We plan to further
expand in this area under the new management plan.
While making appropriate investments for growth, SRG
will continue to provide shareholder returns consistent withearnings, based on our policy of stable dividends.
Going forward, SRG will develop and offer products withhigh added value that meet industry standards for safety andefficiency, in order to boost earnings capacity and enhanceenterprise value. We will also further strengthen our
foundations and structures to continue offering new value,
seek innovations to address the issues facing society withflexible ideas, and strive to be a corporate group that
continues to grow over the long term, from 2020 and beyond.
I would like to thank all stakeholders for their support intaking a longer-term perspective toward our strategies.
July 2017

Kazumasa Takamiya
Representative Director, President and Chairman

Aiming to be a corporate group with
continued growth
The SRG TAKAMIYA Group’s business up to now has mainly
been rental of temporary equipment and materials to theconstruction industry. Over the last few years, however,

Annual Report 201711

Management Message
Domestic Business Strategies

Contributing to stable growthin the medium and long term
and nurturing newly
growing businesses
Akiyoshi Takamiya
Representative Director,
Executive Vice President

Medium-term success in domestic businessenvironment
With the Tokyo Olympics and Paralympics being held in 2020,
the domestic construction industry is expected to show
steady investment growth in construction business mainly inmetropolitan areas. Investment in private equipment andpublic investment including re-establishment of deteriorated
infrastructures is also expected to increase. In addition,
because the utilization rate of equipment for civil engineeringand bridge construction will be improved thanks to theconstruction work for Hokuriku Shinkansen Line, themedium-term business environment is expected to shift
positively for the Company.
On the other hand, the chronic shortage of workers
followed by the increase of labor costs is a structural issue.
Also, considering current condition, in which markets
concentrate in urban cities, and the decrease in population, it
is a fact that we cannot expect large-scale growth in thedomestic market. However, for the Company, the domestic
business is always an important core to generate stableprofits. It is not too much to say that the future movement ofdomestic business strategies is the key to the growth of thewhole group through vigorous promotion of the agriculturebusiness, which we hope to be a next generation business,and maintenance and repair businesses, the growth of which
are greatly anticipated.

Promotion of de facto standardization of
Ⅰq System in markets we have developed
Ⅰq System, a next-generation scaffolding, is an essential
factor to establishing a stable profit base for the future. It has
been rapidly drawing attention as the total number of sites
using it had reached 2,868 as of the end of March 2017.
One of the reasons for its popularity is its high safety
standard. Although governments have established stricter
regulations on safety in order to decrease the number ofaccidents and fatalities in the construction industry, companies
have add parts to traditional equipment to enhance safety
rather than purchase new equipment because the durable
period of scaffolding is very long. This fact has caused a
decline in work efficiency and safety at work sites. Now, toimprove such situation, we have developedⅠq System,

12 SRG Takamiya

a next-generation scaffolding that responds to typicalconditions in construction sites, and have introduced thesystem into the market. We have worked on improving safety
conditions, and have been successful in enhancing ouroperational ratio and reducing expenses as the workability
and efficiency have improved.
In addition, our Construction Department has showcased
the advantages ofⅠq System to our customers atconstruction site and launched promotions. It can be said thatthe competitive superiority of the Company has been
generated by effectively activating the Construction
Department in order to be able to provide the customers withnot only scaffolding but also excellent workers; in addition, thedepartment collects the data and opinions from actual
construction sites. We also strive to expand our network withscaffolding companies from a medium-term standpoint as weforesee the current shortage of workers will become evenharsher; now there are 50 companies throughout the nation in
our network (as of March 31, 2017). We are planning to raise
the number to 100. The Company has promoted theadvantages ofⅠq System through the rental service and has
steadily expanded the market. It is expected that othercompetitors will follow us as it has become more important tolisten to the opinions from worksites and the owners ofconstruction sites that demand improvement for safety andwork efficiency. We believe the advantages of the Company
are solid. It is expected that, while the number of orders for■ Promotion of De Facto Standardization ofⅠq System
Expansion of
external sales

Creation of a market
through the rental service
and construction

Promoting thesystem in therental service

Strategies during
the period of themedium-term
management plan
Strategies taken up
to the launch of theprevious mediumterm managementplanrental items that are used for building construction andrenovation is increasing, the sales to scaffolding companies
will increase thanks to the increasing demand for rental
services. In the new medium-term management plan, we aim
to boost our sales while developing the market by promoting
our rental services for construction businesses.

Promotion of products with high added value
In addition toⅠq System, a next-generation scaffolding, we
promote strategic products for the construction market suchas Spider Panel, an advanced hanging-type scaffolding, andLift Climber, a mast climbing work platform used atlarge-scale renovation sites like high-rise apartment buildings,
which will support the growth of the Company for the medium
and long term.
We are also aiming to expand the market for agriculturebusinesses and structural equipment including seismic
dampers. For the agriculture market, we have developed alow-cost product that has strong weather-resistant functionthat is called G-Castle, an agricultural greenhouse with a steel
framework. The Construction Department has been working
to establish systems to be used for the building of agricultural
greenhouses and repair work. The seismic damper includes
WUTEC-SF, an earthquake-resistant and seismic damping
framework for wooden buildings that has been designed
using our advanced metal processing technologies. Whilealuminum products with seismic damping effects are rarely
seen in the industry, we believe producing such products
generates a competitive superiority as a manufacturer.
Currently, we are devoting ourselves to the development of anew product called Oct-brace, a large-scale seismic damperthat can be used for metal frames. Reducing the weight ofseismic damper can reduce the use of the metal frames of abuilding, which will save on overall construction expenses.
All our products enhance the safety and efficiency ofconstruction work. Hereafter, we believe it is important tocontinue developing such products with high added value inorder to shift from rental business to development andmanufacturing and sales business.

Enhancement of profitability andestablishment of strong advantages
Profitability in a mature domestic market depends on how fast
we can provide value-added products. We are required tocontinue developing products with high added value that havenever been previously existed, while researching what
contributions we can make to technologies for maintenanceand repair and construction.
In the rental business, we aim to promote a
proposal-based rental service, which proposes appropriate
equipment to customers among various products from the
manufacturer viewpoint. With the cooperation with theConstruction Department, we aim to provide one-stop
services by utilizing the assets of each group company byproposing appropriate equipment using the architectural
drawings and creating temporary equipment plans in order togain more orders while following up customers on-site bygiving technical advice. Moreover, we strive to get moreorders from demands for repair and infrastructure
maintenance and establish a solid base in the Kanto area, inwhich most of our orders are concentrated.
By providing added value that can rarely be seenelsewhere, we believe our business will take benefit in a betterway than ever. Applying the fundamentals that have been
established already to an excellent business environment thatwill last until the 2020 Tokyo Olympics and Paralympics, wewill continue enhancing our values so as to be continuallychosen by our customers.
July 2017

Akiyoshi Takamiya
Representative Director and Executive Vice President

Agriculture business–aiming to reinvigorate traditional Japanese agriculture
The know-how that the Company has accumulated and our metal
processing technologies can be effectively applied to
manufacturing/construction of agricultural greenhouses and plantshelves. It is beneficial for us to enter into the business because we
can utilize the product supplies system of temporary equipment basedon the consideration about purchase activities and production costs.
Data shows that the average age of people engaging in
agriculture is 68 and nearly 30 percent of current farmers will quit theirbusiness in the next 10 years. Also, entry into the business is difficult
due to the high expenses required for initial investment.

G-Castle series
A greenhouse with a metal framework,
designed using our unique structural
calculations, realizes low cost but highweather resistance.

Pipe house
This agricultural greenhouse is highly
durable against natural disasters,
maintaining a full-scale cultivation
cycle throughout the year.

However, since the business is of great importance, we believe
we can reinvigorate traditional Japanese agriculture by effectively
utilizing our business resources including our technologies and humanresources. By proposing products such as agricultural greenhouses
and related services, we can contribute to producing a businessenvironment that enhances the power of Japanese agriculture.
[Three advantages of our agricultural greenhouse]
1) Price advantage: We can realize low prices by using our
know-how in structural calculations, which has been acquired
through development activities for temporary equipment and ourunique metal processing technology.
2) Weather resistance: By implementing structural calculations andquality evaluations that respond to damage by various weather
conditions including strong winds and snow, we achieve highweather resistance considering the actual environment in which the
products are used.
3) Construction speed: Utilizing of the networks of the construction
department and its partner scaffolding set-up companies has beenpromoted in order to achieve speedy construction workthroughout Japan.

Annual Report 201713

Management Message
Financial Strategies

Enhancement of our financial
characteristics by shifting
our business direction frominvestment to recovery
Hideki Yasuda
Director and Senior Managing Executive Officer
Division General Manager
Business Management Division
General Manager

Review of the fiscal year ended March 2017
In the fiscal year ended March 2017, the last year of the 2014
medium-term management plan, net sales were ¥36,763
million (up 7.0% year on year), operating income was ¥2,429
million (down 18.6%), ordinary income was ¥2,337 million(down 14.4%) and profit attributable to owners of parent was¥1,516 million (down 29.6%). ROE was 12.6%.
In the rental business, we vigorously promoted theadvantages of our next-generation scaffolding calledⅠq Systemand the safe and reliable scaffolding service provided using
the nationwide network with scaffolding companies in order toincrease the already strong demand for building construction
implemented by the private sector. For temporary equipment
for construction for civil engineering and bridges, some areas
saw suspension of work and delay in the start of constructionin the first half of the year. But the operations re-started in thesecond half, resulting in an increase in overall revenues.
Unfortunately, a decline in profit was unavoidable due to thestrong promotion of temporary equipment.
The sales business received large orders forⅠq System inthe second half of the year thanks to promotional activities by
the rental services, and also the number of inquiries
increased. Profit and sales have improved due to the
reduction of production costs.

In overseas operations, on the other hand, an increase
was seen in the management costs for the establishment of
the sales management system for solar-related products andthe enhancement of a new rental business within South
Korea. In addition, issues have occurred such as a loss ofbusiness opportunities due to delays in the investment inrental assets in the Philippines, an increase of the costs forthe establishment of the control system for stocks and credits
after receiving orders, etc. Although these issues were solved
later in the year, it resulted in a decrease in profits andoperating losses.

From investment to recovery
Investment was the main focus of the financial strategies in
the 2014 medium-term management plan. Since we decided,at the time of the establishment of the plan, to start recovery
activities after concluding three year investments, we wereable to explain to banks about the promotion of
next-generation scaffolding and the switch in rental assets at
an early stage. This has allowed us to establish a relationshipwith the banks in which we both plan together to realizesmooth funding.
Although the fiscal year ended March 2017 recorded
positive operating cash flows, some investors may be■ Consolidated Financial Highlights(¥ million)

2015.3(Actual)2016.3(Actual)2017.3(Actual)2018.3(Forecast)

Net sales

34,26134,35036,76338,300Operating income ①

3,098

2,983

2,429

2,850

Ordinary income

3,325

2,731

2,337

2,600

Profit attributable to owner of parent

2,070

2,153

1,516

1,700

Depreciation ②

3,649

4,137

4,502

—

EBITDA (①+②)

6,747

7,120

6,932

—

Earnings per share (yen)

46.17

48.12

35.14

39.82

Dividends per share (yen)

16.0

10.0

10.0

11.0

ROE (%)

19.8

18.5

12.6

—

14 SRG Takamiya

Notes:
1. Recorded figures are rounded down to the nearest
million yen (except per-share information).
2. We conducted two-for-one stock splits on January 1,
2015. Earnings per share is calculated by deeming
stock splits to have occurred at the beginning of the
fiscal year ended March 31, 2015. The dividend forthe fiscal year ended March 31, 2015 included acommemorative dividend of ¥2.5 to commemorate
the designation of our stock to the First Section of theTokyo Stock Exchange.

concerned about negative operating cash flows. This isactually result of the investment in rental assets we have
implemented mainly in next-generation scaffolding. Usually
the expenses for investment are recoded as negative ininvestment cash flow. But the Company records the expenses
in the operating cash flow because we regard rental assets as
the same as operational assets. As investments in rental
assets have been ended, the operating cash flow is expected
to become positive largely.
The period of the 2017 medium-term management plan
will be one of recovery after investment. We aim to improve
our balance sheets while enhancing the capital adequacy
ratio in order to build strong financial structures.
For the next three years, we will control large-scale
investment in scaffolding, but will still continue investment
activities while narrowing down investment targets to fields
with high future growth potential such as agriculture andoverseas operations for costs for research & development,enhancement of production lines, shifts to overseas
production, and so on.
In the business environment of the fiscal year ending
March 2018, which is the first fiscal year of the new
medium-term management plan, business activities willrapidly accelerate in the third quarter period because of thelaunch of large-scale jobs in constructions of civil engineering
projects and the restoration of infrastructure in the Kanto areathat are scheduled between summer and early autumn.

■ Investment Results (¥ billion)
Investment in assets for lease

80
72
55
40

54

20
0

20

22

2015.32016.310
2017.3■ Depreciation and the Profit Ratio
Depreciation expenses each year generate adecrease in costs. The more rental assets are
depreciated, the more increase will be seen in
the profit ratio for the rental business.

DepreciatedassetsIncreasein profit
ratiosevery year
Rental profits

Depreciation

We have realized profit in the past by efficiently renting out‘depreciated equipment’ using an overwhelming amount ofequipment in stock. (See page 6 for the profit model of therental business.)
We may have realized a large profit if we continued ouroperations using depreciated assets without investing in
next-generation scaffolding. However, then we would nothave gained further growth in a mature market.
The merger with Hory Corporation planned in January
2018 will accelerate the shift to companies to development
and manufacturing. By combining a stock-type business,
which can generate profits stably for a long period, with aflow-type one that can make income for a short-period oftime, we are attempting to shift to a balanced business modelthat can achieve high growth and steady profits. (See the“Business Model Combining Stock and Flow” on page 10.)Focus on management indicators
The Company focuses on EBITDA, data obtained by adding
operating income to depreciation costs. In the stock-typebusiness models, the profit ratio increases as costs
reduce due to the progress of the depreciation of rental
assets (refer to the image on left). In other words, when
EBITDA is large, the investment power for the future is strong.
We are also striving to bring ROE above 10%, which has
been included in the financial policy.

Eagerly take on challenges to achieve highgoals

Capital investment

100

60

Investment control for the change of businessmodelsAs timepassesDepreciation
completed after eight
years (amortization
period in accounting)

It is our responsible as a listed company to continuously growby effectively utilizing funds from stockholders while
enhancing the Company values. We understand the fact thatthe performance goals in the previous medium-term
management plan were not achieved, and now we haveestablished and started the new medium-term management
plans on analysis of these results.
Although we expect the business environment to bestable up until the Tokyo 2020 Olympic and Paralympic
Games, it is necessary to develop new fields for further
development and to shift our operations. Expanding ourbusiness into the fields of agriculture and overseas operations
is part of this goal. Although it is expected that issues may
arise for a short period of time, we believe that we canestablish a position in the market, just as we always do, by
overcoming obstacles in the medium and long term.
We hope that stockholders and investors will appreciate
our positive attitude against such challenges as we seek new
possibilities and set high goals.
July 2017

Hideki Yasuda
Director and Senior Managing Executive Officer
Division General Manager
Business Management Division
General Manager

Annual Report 201715

Strategies by
Business
Segment

Rental Business

Rental business for temporary equipment that
improves operational efficiency and profitability
The Company offers its rental services for temporary equipment to various construction sites such as buildings,
bridges, renovation of ultra high-rise buildings, and tunnels and other underground facilities. The advantage of ourcompany is to be able to respond to diverse needs adequately by combining our business functions ofdevelopment and production, construction, and designing with the rental service. Also, we contribute to the safety
and efficiency of the sites by thoroughly maintaining the quality of equipment.
We attempt to continuously improve operational efficiency and profitability by replacing mainly withⅠq System,
a next-generation scaffolding that we have developed as our main product and other high-value-added andversatile products.

Results for the fiscal year ended March 2017
Business Details
Started soon after our establishment, the rental
business has been a core service for the Company.
The rental business started by targeting building
construction, then vigorously expanded into newindustrial fields through business transfers from othercompanies and business acquisitions. As a result, we
now own equipment that supports most construction
sites including underground work, ultra high-risebuildings, highways and bridges. In 2010, weestablished the construction department, which has
allowed us to accept orders for bothconstruction of scaffolding and equipment, and to
expand the range of the service details.

Competitive Advantage
Throughout the country, we propose one-stop
services for from planning temporary construction
work, creating blueprints and arranging equipment,
construction and safety management. We covervarious construction fields from shield construction for
pipeline work to large-scale repair work for ultra
high-rise apartment buildings, renovation work for
highways and plant construction work. We also
respond demands to help prevent natural disasters
such as work to prevent landslides and building ofseawalls.
The distribution costs of our service is lower
because most of our equipment including scaffolding
are manufactured within our group, and management
expenses are controlled as much as possible byreducing weight of the equipment we own and using
them for various purposes.

16 SRG Takamiya

In the 2014 medium-term management plan, the rental
business went almost as initially planned. As the demand
from the construction field increased, the rental orders for ourequipment, mainly forⅠq System, a next-generation
scaffolding, was high. The demand for temporary equipment
for civil engineering and bridge construction was slow due toa slowdown in construction work in some areas and delays in
the launch of work in the early part of the year; however, laterin the term, orders started to gradually increase. This resulted
in a record number of shipment orders for equipment.
On the other hand, because of price controls as part ofthe promotion ofⅠq System, profit was less than estimates in
the initial plan. The reason was because management costs
have increased as new and old equipment were mixed
together as it was a transition time for rental assets, inaddition to the increase in the depreciation costs due tovigorous promotion of temporary equipment, and the slump in
local subsidies.
In regards to the promotion ofⅠq System, we proposed
our rental service as well as the scaffolding set-up service thatare safe and reliable through the Safety and Health
Cooperative Association, a network throughout Japan ofscaffolding companies. The promotion has been successful
so far as total number of the construction sites that have used
our rental service reached 2,868 (as of the end of March2017) and the monthly average operational ratio is 61.9%.
As a result, sales in the rental business were ¥22,213
million (up 8.3% year on year) and operating income was¥2,267 million (down 16.4%).

MESSAGE
Message from the Officer in Charge
We are aware that our rental business is the main source of profits for our group.
The fiscal year ended March 2017 saw a large expansion of the market sharefor the next-generation scaffolding as well as an increase in the number of repeat
customers from construction companies. The future demand forⅠq Systemappears to be positive and the penetration of the product will be accelerated.
Also, the increase in the demand for rental products will have a healthy impact on
the sales business as a synergetic effect. For the whole rental business, it isexpected that a positive environment will be generated with some large-scale
projects including the construction work for the Hokuriku Shinkansen Lineand redevelopment in metropolitan areas, which will be a solid source of profits
for our group. It is important that penetration strategies are created by theconstruction department in order to accelerate this briskness. When we launch
new products into the market (not limited toⅠq System), the construction
department plays an important role. We attempt to increase our profitability byenhancing our advantages as a manufacturer including technology proposals,enhancement of the quality of work of the Construction Department and safety.

Tsutomu Abe
Director and Executive Officer / Division General Manager of Sales & Marketing Division and General Manager of Rental Department

Shinkansen Line and repair of infrastructure. We will also aim

Acceleration of de facto standardization fornext-generation scaffolding by steadily
gaining demand

for steady demand with a proposal-base rental service, inAs the market for post-disaster reconstruction in the Tohoku

become more aggressive as competitors have started

region has reached a saturation point, most of the sites offull-scale entry into the market. The demand forⅠq System,

orders have been concentrated in metropolitan areas, related

the floor height of which is 190cm (20cm higher thanto construction work for the 2020 Tokyo Olympic andtraditional scaffolding), is steadily growing, and the number ofParalympics and restoration activities for decrepit

orders from our customers has been increasing. We promote

infrastructure. In the fiscal year ending March 2018, highde facto standardization ofⅠq System by creating a market as

which we select equipment that is most suited for each site
among a variety of product ranges.
For the next-generation scaffolding, the market will

demand forⅠq System, next-generation scaffolding, is

we continue developing our rental service while promoting the

expected along with the steady growth of the number of new

product through the activities of the construction department.

construction and repair work in the construction field mainly in

We have almost completed switching lease assets frommetropolitan areas. The utilization rate of all the equipment will

conventional scaffolding to next-generation scaffolding in themaintain at a high level, even in the civil engineering anddomestic markets, and we strive to enhance profitability whilebridge construction field, the distribution of equipment will bemaking adjustments to determine fair prices. We are also

implemented on a full-scale to respond to the demand related

determined to achieve our profit goals.

to construction sites for the development of the Hokuriku■ Cumulative Rental and Average Ratio of Availability ofⅠq System (site / %)■ Net sales and Operating Income (¥ million)
Net sales

Net sales

Operating Income

Operating Income

30,0006,000

25,00020,00015,00018,686

20,51322,213Cumulative rental

1,984

5,000

61.9

56.8

2,868 60

38.2
3,000
2,267

2,000

1,000
2017.3*Sales and operating income include internal sales and transfers.

40

1,500

2,000
1,000

5,000
2016.3

Average ratio*

80

3,000

2,711

2015.3

Average ratio

4,000

10,0000

Cumulative rental

4,000

0

0

20

530
2015.32016.32017.30* Comparison data from the time of the installation ofⅠq System

Annual Report 201717

Strategies by
Business
Segment

Sales Business

Vigorous development activities for value-added
products using our metal processing technologies
By utilizing our metal processing technologies we have gained through past business activities, we carry out a wide
range of activities including development, manufacturing and sales for our unique products such asⅠq System,
a next-generation scaffolding, small temporary equipment like clamps, seismic dampers, solar panel frame andagricultural greenhouses.
The core service of the SRG TAKAMIYA Group is development and manufacturing that can realize various
needs of worksites, and is one of our strengths that create new values. We promote the sales of theⅠq System toachieve de facto standardization as well as receive more orders from agriculture business, which is considered to
be a growing industry.

Results for the fiscal year ended March 2017
Business Details
The sales business mainly develops temporary
equipment that is used at new construction sites andrenovation work includingⅠq System, a next-generation
scaffolding, and Spider Panel, advanced
hanging-type scaffolding. As a new business, wevigorously implement promotional activities for
agriculture-related materials including greenhouses,
etc. and trading of seismic damping parts used forindividual residential houses and low-and mid- andhigh-rise buildings, which have drawn attention as ameasure against earthquakes, with the aim of making
the service a core business. Also, we sell commercial
products with high profitability such as second-handproducts in addition to depreciated assets that we own.

Net sales of the sales business were ¥16,489 million (up 3.9%
year on year) and operating income was ¥2,357 million (up53.9%), both of which were higher than the initial plan.
For construction products, we have achieved the goals
set in the fiscal year plan thanks to large orders placed at theend of the term for the popularⅠq System of next-generation

scaffolding. The total area in whichⅠq System was used has
increased to 3,650,000 m2, and the market share of the

Ⅰq System is now approximately 5.0%.*
In the environment-related business, the number of orders
for solar panel frame grew steadily in contrast to our
expectation; however, the results for the agriculture businesswere lower than what we initially expected despite theincrease in the number of inquiries and orders. The net salesCompetitive Advantage

of used products increased compared to the previous fiscal

In industries in which most of manufacturers carry out
rental services, it is rare that a rental company has thefunctions of a manufacturer. Therefore, the Company
has a variety of advantages. One of the advantages isthat we can directly hear various needs of customers
and apply them to product improvement anddevelopment activities. Moreover, we introduce newly
developed products to our rental business and themthrough promotion activities. Because a certain
quantity of rental assets is purchased in the rental
business, this allows us to estimate the quantity of
production in a year, so production activity becomessafer and has advantages in cost performance.

year, but the gross margin ratio has declined due to the

18 SRG Takamiya

decrease in the sales of depreciated assets. Other factors
such as cost reductions thanks to stable production activities
at factories and the sales of products with high profitability
had a positive impact on profit.
* The ratio was determined using the total area, in which Ⅰq System has
been used (3,650,000m2) against the area of traditional studs(scaffolding frames) 73,410,000 m2. Calculated by the Company inaccordance with the “Survey on the Construction-Related Industry
March 2017” by the Ministry of Land, Infrastructure and Transport.

MESSAGE
Message from the Officer in Charge
In the fiscal year ended March 2017, we saw a fall in the profit ratio for usedequipment sales; however, on the whole, the results exceeded what was initiallyplanned in the business plan. The biggest challenge in the sales business is an
expansion of the market ofⅠq System, a next-generation scaffolding. We areconducting operational activities to gain de facto standardization of the systemwith the aim to increase sales and profits every year. It has been possible in thepast to reduce costs through stable production activities for rental assets within
the Group, but after the fiscal year ending March 2018, when external sales will
become our main activity, a reduction in sales will have a negative impact onGroup result. The path of the shift from traditional scaffolding to next-generation
scaffolding is almost visible now. We strive to maintain the top position andproduce results. In new fields, we will expand operational areas in order to gainorders for agriculture-related equipment. For structural equipment, we havesucceeded in the development of seismic dampers that can be used for buildings
and warehouses, and we continue striving to contribute to business by increasing
the number of operational items.

Hidehiko Yamashita
Executive Officer/General Manager of HORY Product Sales Department and Sales & Marketing Division

structure part, which can be used not only for distribution

Propose value-added products andservices by enhancing development,
manufacturing and sales

warehouses with large floor areas and low-and mid-risebuildings, but also for ultra high-rise buildings. We aim tocontinue producing high-value-added products such as theabove.
Due to the merger of Hory Corporation, one of ourIn the fiscal year ending March 2018, the temporary
equipment industry will see an even greater boost in sales

subsidiaries, scheduled in January 2018, all the business of

mainly ofⅠq System; the background to such a boost is thethe Group will be shifted to manufacturing and sales

increase in demand for rental services. We will continue

according to our long-term plan. To make this happen, theenhancing the sales business for strategic products, includingroles of each region including overseas factories must be

Spider Panel, an advanced hanging-type scaffolding, andclarified to optimize the category of products. In domestic

other equipment with high workability and safety.

activities, management resources are concentrated on the
research and development activities for products, and we

In the environment business, we are promoting thedevelopment of agriculture-related products such as

clarify hubs that produce high-value-added products whilegreenhouses highly resistant to snowfall and strong winds yet

establishing a production system that focuses on costwith low costs, and also the number of inquiries for

reduction. The sales plan of this business for external

steel-framed greenhouses is increasing. Promotional activities

customers in the fiscal year ending March 2018 is expected

are to be launched to secure more orders.

to increase; however, contributions to earnings will be small

Moreover, we aim to realize production of Oct-brace,
structural equipment that is larger than WUTEC-SF, a seismic

because of the prior investment in factories with the aim of
reducing future costs.

damper for wooden houses. This product is a functional■ Sales ofⅠq System and Total Area Used (¥ million /10,000m2)■ Net Sales and Operating Income (¥ million)
Net sales

20,000Net sales

15,86515,000Operating Income

Operating Income

18,538

Sales

Sales

4,000

4,000

3,000

3,000

2,000

2,000

2,618

10,000

232

2,529

300

200
97

5,000

1,000

2016.3

400

1,344

1,531

2015.3

Total area*

365

16,4892,357

0Total area

2017.3*Sales and operating income include internal sales and transfers.

0

1,000

569

0

2015.3100

2016.32017.30*The total area is calculated by the Company based on owned rental assets andsales performance.

Annual Report 201719

Strategies by
Business
Segment

Overseas Business

Enhancement of our profit systems in overseas market–the key to future growth
We launched our overseas business in the fiscal year ended March 2017. The pillar of future growth is to be built
by comprehensively managing the rental and sales businesses in the overseas market.
By effectively utilizing overseas business hubs including DIMENSION-ALL INC. in the Philippines, aconsolidated subsidiary that we acquired in 2015, the SRG TAKAMIYA Group is looking to enhance its profit
system using both businesses of rental and sales while establishing business fundamentals including priority
investment for business expansion.

Results for the fiscal year ended March 2017
Business Details
As features of our overseas operations, eachsubsidiary runs its business mainly by doing businesswith local construction companies. In South Korea, asolar panel frame is one of the main businessproducts in addition to the sales of temporary
equipment. In the Philippines, aluminum frames areleased out to major construction companies in local
areas. Vietnam has been a production hub for
products, with metal fittings being the main product;
however, the country will be a hub for equipment(including temporary equipment) supplied to theGroup.

Net sales from overseas business were ¥4,198 million (down
12.6% year on year) and operating loss was ¥189 million(operating income in the previous fiscal year was ¥179
million), considerably lower than the result of the previous
fiscal year. The overseas sales ratio was 9.8%.*
One of the reasons why we could not achieve our goals
was because the management systems of overseas
subsidiaries were not sufficient enough. We failed to expand
our business operations as planned because we prioritizeddebt-collection. Hory Korea Co., Ltd. has re-designed the
management systems within South Korea by suspending theacceptance of orders for solar-related business. In addition,

Competitive Advantage

management costs increased due to the launch of rental

Consolidated subsidiaries in South Korea and thePhilippines, which are the hubs of our sales activities,
mainly undertake business with local companies. In
the ASEAN region, which is the target market of thesesubsidiaries, infrastructure investment has been very
active. The utilization rate for equipment required forthe construction of infrastructure is forecast to beunstable in Japan; however, since such equipment isin short supply in the ASEAN, profits can begenerated by transferring depreciated equipment to
the region. Having our production hub in Vietnam, we
also aim to reduce costs by producing products thatare in demand in local areas using Japanese
production technologies and latest equipment. With
our price-competitiveness generated through theabove-mentioned activities, we earnestly undertake
our business activities with local manufacturers andJapanese companies.

services. DIMENSION-ALL INC., our subsidiary in thePhilippines, posted a large deficit in business operations.
Although issues with the management of stock and debts
were solved later in the year, it had a big impact on the resultsof each business. HORY VIETNAM Co., Ltd., on the other
hand, maintained steady manufacture of and sales of clamps
to countries in Southeast Asia.
* The ratio was calculated using the figures including internal sales andtransfers.

Start full-scale measures with enhanced
business foundation to contribute to results
In order to improve the sales performance and profits, we are
striving to establish business structures to develop andmanufacture products that meet local demand. We will also
strengthen sales activities with a supply hub in the ASEAN

20 SRG Takamiya

MESSAGE
Message from the Officer in Charge
The overseas operations in the fiscal year ended March 2017 resulted in adecrease in the operation results of the group due to the prioritization of inventory
management and debt collection. However, our operation systems have become
more profitable for the group as we consolidate the control systems and promote
investment in business expansion. Business localization is the next aim for theCompany. It is commonly seen that Japanese companies establish local
subsidiaries and dispatch Japanese staff from Japan. However, we plan to hire
local employees at our overseas subsidiaries while cementing alliance with local
companies and implementing M&A activities as we continue enhancing
governance capabilities. As a start, we will reform the operation structure with themembers of the Korean subsidiary, who already have strong operational skills,
and strengthen the operation activities in the ASEAN region while establishing a
product supply structure in at factories in Vietnam. We will steadily develop the
profit base of our group for the year 2020 and after with relationships with local
companies that can be deepened through participation in business matching
events in each country.

Yuki Mukaiyama
Director and Executive Officer/ Division General Manager of Business Development Division

In Korea, we will not only strengthen the operations withinregion, that is, in Vietnam, by carrying out all production
activities focusing on versatile products like clamps. In Souththe country, but also implement strong sales activities for

Korea, we will make sure that management structures aretemporary equipment in the ASEAN region as well as cement

strong enough in order to boost sales activities before lifting

the alliance with major companies in the country.

the suspension the acceptance of orders for solar-related

In addition to these activities, the collection of upfront

products, and we will also focus on the rental service to gain

costs, which was a burden on the profit result, has been very

more orders for rental products within South Korea. Insmooth. We aim to return to profitability in the fiscal year

production, value-added products will be viewed just as they

ending March 2018, and to achieve a sales ratio over 10%.

are in Japan.
In the Philippines, the number of inquiries for temporary
equipment has been increasing thanks to strong demand in

Korea

Marketing Manufacturing

the construction industry. We strive to re-monetize the orders

Hory Korea Co., Ltd.

by transferring products to the country, which are popular in

A wholly owned subsidiary of Hory Corporation. The
company produces temporary equipment andmaterials such as theⅠq System, strengthening sales
in the South Korean market.

the Philippines but not in Japan, while continuing to enhance
the management systems of DIMENSION-ALL. Thus, we aim
to enhance our profitability by responding to the strong

Vietnam

Manufacturing

demand in the construction field while maintaining cost

HORY VIETNAM Co., Ltd.

competitiveness by supplying rental equipment within the

A wholly owned subsidiary of Hory Corporation.
The company produces clamps and otherproducts, supplying these to Japan andSoutheast Asian countries.

Group.

Philippines

Marketing

DIMENSION-ALL INC.
Expanding sales and rentals of
temporary equipment andmaterials in the Philippine
market, the company has large
construction companies ascustomers, and is building astrong position in the market.

■ Net Sales and Operating Income (loss) (¥ million)
Net sales

Net sales

Operating income (loss)

Operating income (loss)

6,000

600
4,806
4,198

4,043
4,000

300

179

Vietnam

44
2,000

0
▲189

0

2015.3Marketing Designing

Cadian Vietnam Co., Ltd.

2016.32017.3ThailandSRG Global Holdings Co., Ltd.
Myanmar▲300

MarketingMarketing Designing

Cadian Myanmar Co., Ltd.

Manufacturing
Marketing
Designing
Consolidated
Non-consolidated

Annual Report 201721

Corporate Governance (As of June 28, 2017)
Basic Policy on Corporate Governance
The Group believes that ensuring full compliance, guaranteeing operational transparency and efficiency, and maximizing its
corporate value for shareholders and other stakeholders are all central to corporate governance.

Overview of Corporate Governance System
Organization

Company with a Board of Corporate Auditors

Chairman of the Board

Kazumasa Takamiya

Number of Board Members

Ten, including two outside directors

Number of Corporate Auditors

Three, including two outside corporate auditors

Board of Directors Meetings
in the FY Mar. 2017

Held: Regularly 12 times, extraordinary five times, written resolutions two times
Director attendance rate: 98%, corporate auditor attendance rate: 86%

Board of Corporate Auditors Meetings
in the FY Mar. 2017

Held: Regularly 12 times, extraordinary three times
Corporate auditor attendance rate: 89%

Main Meetings Attended by Corporate Auditors

Board of Directors Meetings, Management Meetings

Appointment of Independent Directors

Two outside directors and two outside corporate auditors

Accounting auditor

Ernst & Young ShinNihon LLC

Corporate Governance System
Management & decision-making

Instruction

ReportReportCooperation

Board of Corporate
Auditors

Appointments and dismissals

Cooperation

Accounting
auditorAppointments and dismissals

Accounting audit

Affiliatedsubsidiaries

Cooperation

Business
Division

Cooperation

Audit

Oversight

Internal auditing

President andRepresentative
Director
Oversight

Internal Audit
OfficeBusiness execution
Selection, dismissal, supervision

Audit

General meeting of shareholders

Board ofDirectors

Appointments and dismissals

Appointment of Outside Executives
We appoint outside directors and outside corporate auditors. Each outside executive carries out objective and neutral
auditing and monitoring of directors’ business execution from their respective positions, thus ensuring satisfactory corporate
governance.
Although there are no specifically defined standards or policies regarding independence when appointing outside
directors and external corporate auditors, during appointment, we first evaluate that they have a perspective sufficiently
separated from our management personnel based upon their career and relationship with our company, and that they havethe independence to carry out their duties as external executives.
Mutual cooperation involves periodically receiving reports from the corporate auditors and the manager of the Internal
Audit Office, and making comments as needed, with the aim of strengthening this cooperation.

Reason for Appointing Outside Director
Kouji Shimokawa (Independent Director)
President & CEO of
Global Human Communications Co., Ltd.
Representative Partner of
Shimokawa & Partners Accounting Corporation

Noboru Furuichi (Independent Director)

22 SRG Takamiya

We have appointed Mr. Shimokawa as an outside director in the expectation that
the Company can use his knowledge and experience cultivated in management
accounting as a qualified tax accountant.
With his experience as a financial advisor at a securities firm and his excellent
decision making skills in business, Mr.Furuichi is capable to fulfilling the role as the
Independent Director in an adequate manner using his knowledge and experience.

Reason for Appointing Outside Corporate Auditor
Yoshihiro Sakatani(Independent Corporate Auditor)
President and Representative Director ofJapan Management Consulting Co., Ltd.

Teiji Jouko(Independent Corporate Auditor)
YODOYABASHI & YAMAGAMI Legal
Professional Corporation
The External Auditor of G-7 Holdings Inc.
The External Auditor of Onamba Co., Ltd.

We have appointed Mr. Sakatani as an outside corporate auditor in the expectation that hewill utilize his qualifications as a certified public accountant and tax accountant and his deep
knowledge and understanding of corporate accounting, to perform his duties appropriately
as an external corporate auditor from an objective and neutral standpoint, based on his
professional insight into finance and accounting.

Mr.Jouko, a licensed lawyer, has been appointed for the position of the Independent Director
as he can implement audit activities in an objective / neutral manner with the viewpoint ofcompliance.

Executive Remuneration
For the fiscal year ended March 31, 2017, executive remuneration for our directors and corporate auditors was as follows:
Classification

Total remuneration(thousands of yen)

Directors(excluding outside directors)

Total remuneration by type (thousands of yen)
Annual bonuses

Retirement
benefits

Number of
executives
covered27,677

—

—

8

9,600

—

—

—

1

7,140

—

—

—

3

Basic
remuneration

Stock options

245,450

217,773

Corporate auditors (excluding
outside corporate auditors)

9,600

External directors

7,140

Auditor Remuneration
For the fiscal year ended March 31, 2017, remuneration paid to certified public accountants and others was as follows:
Previous fiscal year

Current fiscal year

Classification

Compensation paid foraudit certification work
(thousands of yen)Compensation paid for
non-audit certification work
(thousands of yen)Compensation paid foraudit certification work
(thousands of yen)Compensation paid for
non-audit certification work
(thousands of yen)

The Company

30,000—32,000

—

—

—

—

—

30,000—32,000—Consolidated subsidiaries
Total*Our consolidated subsidiaries of Hory Korea Co., Ltd., HORY VIETNAM Co., Ltd., and DIMENSION-ALL INC., paid a total of ¥3,896 thousand as remuneration
based upon audit certification work to Ernst & Young member firms, which are members of the same network as our certified public accountants.

Communications with Shareholders and Investors
We endeavor to provide shareholders and investors with timely information in a transparent, fair and consistent manner. As
well as striving to disclose information in accordance with appropriate disclosure regulations, we work proactively to disclose
information that is effective in fostering a better understanding of the Company.
We aim to expand numbers of our shareholders and investors, and through direct communications are attempting
to increase their understanding of our business activities, strategies and performance. Specifically, we are conducting
presentations and meetings on financial results for analysts and institutional investors, as well as presentations for individual
investors. We also publish the SRG Report, a newsletter for individual shareholders. Our main investor relations activities forthe fiscal year ended March 31, 2017 were as follows:
For Individual Investors•Presentations for individual investors:
six/year (total participants: 800)
We hold regular presentations at the
Security Analysts Association of Japan
as well as at branches of securities
companies, with our officials as speakers.
Our IR website indicates the timing of thisdisclosure.

For Analysts and Institutional Investors•Financial results presentations: two/year(year-end, end of the second quarter)•One-on-one meetings: approximately
100 times
At our semi-annual results presentations,the president and other executives
summarize our performance and provide
earnings forecasts. Materials and videos areavailable on our investor relations website.

IR Website•https://www.srg.jp/en/ir/index.html
To ensure the timeliness and fairnessof disclosure, we disclose materials on
our IR website in a timely manner. This
information includes analyst reports andhistorical data. We also provide in-depth
content to assist in a further understandingof our business and strategy.

Annual Report 201723

Directors, Corporate Auditors and Executive Officers (As of June 28, 2017)
Directors

Kazumasa Takamiya

Akiyoshi Takamiya

Hideki Yasuda

Tsutomu Abe

Takashi Matsui

Representative Director,
President and Chairman
Executive Manager ofOverseas Business

Representative Director,
Executive Vice President
Executive Manager ofSales & Marketing
In charge of Environmental
Business Marketing

Director andSenior Managing Executive Officer
Division General Manager ofBusiness Management Division
General Manager ofCorporate Planning Department

Director and Executive Officer
Division General Manager ofSales & Marketing Division
General Manager ofRental Marketing Department

Director and Executive Officer
Division General Manager ofScaffolding Management Division
General Manager ofScaffolding Control Department

Sadamitsu Shimizu

Yuki Mukaiyama

Yasunori Nishioka

Kouji Shimokawa

Noboru Furuichi

Director and Executive Officer
Division General Manager ofProcurement & R&D Division

Director and Executive Officer
Division General Manager ofBusiness Development Division

Director and Executive Officer
General Manager of
Manufacturing Department
President andRepresentative Director
Hory Corporation

Outside Director

Outside Director

OutsideIndependent

OutsideIndependent

Corporate Auditors

Kazumasa Yamaguchi

Yoshihiro Sakatani

Teiji Jouko

Corporate Auditor

Outside Corporate Auditor

Outside Corporate Auditor

OutsideIndependent

OutsideIndependent

Note: Kouji Shimokawa and Noboru Furuichi are Outside
Directors. Yoshihiro Sakatani and Teiji Jouko
are Outside Corporate Auditors. The Company
designated these four as Independent Directors
and Independent Corporate Auditors pursuant to
the regulations of the Tokyo Stock Exchange andregistered them as such at the stock exchange.

Executive Officers
Kazunori Kawakami

Shinri Ueda

Takahiro Shozaki

Koichi Nishihashi

Senior Executive Officer
Deputy Division General Manager
Sales & Marketing Division
General Manager ofConstruction Department
Executive Manager of East Japan Business

Executive Officer
General Manager ofScaffolding Quality Control Department
Scaffolding Management Division

Executive Officer
General Manager ofSales & Marketing Planning
Department
Sales & Marketing Division

Executive Officer
General Manager ofGeneral Affairs Department
Business Management Division

Michio Ashida

Tomoya Tatsumi

Hidehiko Yamashita

Hideo Kato

Executive Officer
President and Representative Director
HORY VIETNAM Co., Ltd.

Executive Officer
General Manager ofFinance & Accounting Department
Business Management Division

Executive Officer
General Manager of
HORY Product Sales Department
Sales & Marketing Division

Executive Officer
Tokyo Branch General Manager
Customer Service andOperating Support Section Manager
Sapporo Office Manager

24 SRG Takamiya

Consolidated Six-year Summary(¥ million)
2012.32013.32014.32015.32016.32017.3

Net sales

23,201

28,11332,44334,26134,35036,763

Cost of sales

15,99819,917

22,61023,40423,05925,771

Selling, general and administrative expenses

6,165

6,590

6,781

7,758

8,307

8,561

Operating income

1,037

1,605

3,051

3,098

2,983

2,429

Ordinary income

1,080

1,553

3,006

3,325

2,731

2,337

755

807

1,768

2,070

2,153

1,516

Investments in assets for lease

3,687

2,850

2,381

5,577

7,227

5,447

Depreciation

3,088

3,280

3,369

3,649

4,137

4,502

4,126

4,886

6,421

6,747

7,120

6,932

Total assets

32,47233,987

37,245

43,52050,091

52,760Equity

6,271

6,947

9,514

11,453

11,766

12,338Interest-bearing debt

19,534

19,384

18,694

21,635

26,63629,287

Number of employees

679

710

693

903

979

1,010

Cash flows from operating activities

669

1,575

2,839

(1,620)(1,081)

1,163

Cash flows from investing activities

(539)

(812)

(1,239)(1,563)(1,736)(1,093)

Cash flows from financing activities

(39)

(779)

(715)

2,927

2,844

879

3,100

3,076

3,979

4,233

4,242

5,187

129

763

1,600

(3,183)(2,817)70

Earnings

17.47

18.83

40.17

46.17

48.12

35.14

Net assets

146.27162.04213.24253.95269.09288.97

Dividends

20.0

20.0

13.0

16.0

10.0

10.0

ROE*4

12.7

12.2

21.5

19.8

18.5

12.6

ROA*

3.5

4.7

8.4

8.2

5.8

4.5

Operating profit margin

4.5

5.7

9.4

9.0

8.7

6.6

Equity ratio

19.3

20.4

25.5

26.3

23.5

23.4

D/E ratio

311.5

279.0

196.5

188.9

226.4

237.4

For the year

Profit attributable to owner of parent

3

EBITDA*At year-end

Cash Flow

Cash and cash equivalents at end of period
Free cash flows

Per share data (yen)Ratios (%)

5

Notes: 1. Figures are rounded down to the nearest million yen (except per share information).
2. We conducted two-for-one stock splits on April 1, 2013 and January 1, 2015. Per-share information (excluding dividends) is calculated by deeming
stock splits to have occurred at the beginning of the fiscal year ended March 31, 2012. The dividend for the fiscal year ended March 31, 2015 included
a commemorative dividend of ¥2.5 to commemorate the designation of our stock on the First Section of the Tokyo Stock Exchange.
3. EBITDA = operating income + depreciation
4. Return on equity = profit attributable to owners of parent / average equity
5. Return on assets = ordinary income / average total assets

Annual Report 201725

Main Products

Temporary Equipment and Materials

YT Lock System

V-MAX

Safety Walk

Super Light

This scaffolding can be set up
along slopes. It can also be used
as a gantry.

V-MAX is a hanging-type
scaffolding with high workability
that is used for repair work forbridges.

Safety Walk is a catwalk panel
with less gaps to preventstumbling and falling of objects.

Super Light round pipe is 25%
lighter than conventional
products.

Temporary Equipment and Materials

ClampsSafety Screen

Power Frame

AL-SPEEDER

This bolted fastening-type metal
fittings are an important part of
temporary equipment.

This sheet is placed on the side of
constructing buildings to prevent
objects from falling.

Power Frame is a wedge-type
falsework that fits to the shape ofa structure in a flexible manner.

AL-SPEEDER can be piled up.
This aluminum, light-weightmaterial has improved workability
and it can be used for any typesof scaffolding.

Materials for Residential
HousesBuilding Materials

Formwork (Nextech)

HPより

STENMETAL (Steel form)
This steel form has enhanced
cross-sectional performance with
its rib height of 72mm, and canalso be used with a wooden form.

Frame fitting jig for bearing
box release (WP)3
This jig can be used as a unit but nota single piece. It can reduce work
time largely because it doesn't need
to be connected to steel frames.

WUTEC-SF

Oct-brace

This seismic damper reduces therange of vibration of buildings up
to 80 percent.

This structural part with a seismic
damping function can be used forbuildings of any heights fromhigh-rise buildings to low-rise
structures.

Environmental Equipment

Agricultural Materials

Cap Ten Pile Method

H2 System

Pipe House

Weather-Resistant Pipe House

This method allows to follow thelarge-scale ground deformation
due to an earthquake and reduce
damages on piles.

This method, in which solar
modules are supported with
H-steel piles placed in one lane,
reduces the amount of frame
materials.

The agricultural greenhouse ishighly durable against natural
disasters as it uses pipes one-size
bigger than usual ones.

This agricultural greenhouse does
not deform easily under harshconditions caused by natural
disasters.

Building Materials

26 SRG Takamiya

Strategic
Products

Next-generation scaffolding,Ⅰq System
Responding to the conditions at current construction worksites,Ⅰq System, a next-generation scaffolding has made it
possible to produce a wider work space while enhancing the safety and the workability. The Company has been promoting
Ⅰq System both in the rental and sales fields to make it become the de facto standard of the scaffolding industry.

Three innovations① Outstanding safety

Increasing the floor height by 20 cm, to 190 cm, lets
workers work more comfortably without bending.
Reducing underfoot gaps also improves safety.

② High utilization rate

190cm

170cm

Compared to the conventional H-frame type, a strut
type without a fixed width has increased versatility.
This has led to a dramatic improvement in rental
utilization rates.

③ Reduced operating costs

The system can be stored compactly, with a 50%
reduction in storage space over conventional
equipment. Another major benefit is the 30%
reduction in the number of transport vehicles required.

Mast climbing work platform, Lift Climber
Lift Climber is a mast climbing work platform, necessary for renovation ofhigh-rise buildings such as large-scale repair work to apartment blocks. It canhandle heights up to 210 meters. The work platform moves up on two separate
pillars, allowing more light on the subject building than scaffolding, while at thesame time improving the level of security. Additionally, its design features ensure
safety for workers, and easy to operate on-site. The Lift Climber is also easy toassemble, dismantle and relocate, and the reduced setup period lowers total
operational costs.

Advanced hanging-type scaffolding, Spider Panel
Spider Panel has made it possible to minimize the differences in gaps and levels
at an ultimate level in order to improve safety and workability. Hanging-type
scaffolding can be installed by hanging scaffolding with chains, which plays animportant role for infrastructure restoration including for railways and highways as
this kind of work is expected to increase.

Weather-resistant agricultural greenhouse with steel frames, G-Castle Pro 2
G-Castle Pro 2, a high-grade agricultural greenhouse with low costs and highweather resistance, has been designed using our unique structural calculations. It
can resist wind speed up to 50m/s and maximum snowfall of 50kg/m2. It responds
to various locations, agricultural products and customer needs.

Annual Report 201727

Corporate Information

Corporate Outline
Name
Date ofestablishment
Headquarters

SRG TAKAMIYA CO., LTD.
June 21, 1969

CapitalRepresentative

Grand Front Osaka Tower-B Bldg. 27F, 3-1,
Ofuka-cho, Kita-ku, Osaka 530-0011, Japan

Number of
employees¥714,770,000
Kazumasa Takamiya
Representative Director, President and Chairman
Non-consolidated 452
Consolidated
1,010

Stock Information
Stock data

Breakdown of Shares by Type of Shareholders
144,000,000
45,304,000
3,395

Total number of issuable shares
Total number of issued shares
Number of shareholders

Financial institutions

Treasury stock

0.95%

5.75%

431,950 shares

Principal Shareholders
Shareholders

Number of Percentage
shares held of shares(shares)held (%)

Takamiya Ltd.
Tojitsu Takamiya
Sky Rainbow Employee Stock
Ownership Community
Akiyoshi Takamiya
Kazumasa Takamiya
Japan Trustee Services Bank Ltd.
(Trust account)Toyoji Takamiya
Chikako Takamiya
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Kanamoto Co., Ltd.

6,725,520
5,653,604

15.75
13.24

2,283,340

5.35

2,202,784
2,109,672

5.16
4.94

2,097,100

4.91

1,678,288
1,579,824
907,200
888,400

3.93
3.70
2.12
2.08

2,606,631 shares

Foreign corporations, etc.

4.16%
1,883,664 shares

Financial
institutions

15.31%
6,939,300 shares

Other Japanesecompanies

Individuals and others

20.26%

53.56%

9,177,880 shares

24,264,575 shares*Rounded to the second decimal place.

*Notes: 1. The Company holds 2,606,631 shares of treasury stock.
 reasury stock is excluded from the list of major shareholders
2. T
and is not used in calculating percentages of shares held.

Stock Prices and Trading Volume
Stock price (¥)
1,200

Trading volume (¥ thousand)
12,000Stock splits

900

9,000

600

6,000

300

3,000

0

4

5

6

7

8

9

10 11 12

1

2

2014

3

4

5

6

7

8

9

10 11 12

1

2

3

4

2015

5

6

7

8

9

10 11 12

2016

1

2

3

0

2017

*We conducted two-for-one stock splits on January 1, 2015. Stock prices are retroactively revised to incorporate the impact of these stock splits.

Shareholder Information
Fiscal year
Securities code
Ordinary general meeting of shareholders
Record date
Share trading unit
Transfer Agent and Registrar for Common
Stock
Contact for Transfer Agent and Registrar

Method of public notice

28 SRG Takamiya

From April 1 to March 31 of the following year
2445 (the First Section of the Tokyo Stock Exchange)
June
Ordinary general meeting of shareholders: March 31 /Year-end dividend: March 31 / 2nd quarter-end dividend: September 30
100 shares
Mitsubishi UFJ Trust and Banking Corporation
Osaka Securities Agent Department, Mitsubishi UFJ Trust and Banking Corporation
3-6-3, Fushimi-cho, Chuo-ku, Osaka-shi, Osaka 541-8502, Japan
Tel: 0120-094-777 (toll-free)
By electronic notification on SRG TAKAMIYA’s website: http://www.srg.jp/
However, if electronic notification is not possible due to an accident or other unavoidable
circumstances, notice will be published in the Nihon Keizai Shimbun newspaper.

Group Network
Rental Business

Sales Business

IWATA Co., Ltd.

Hory Corporation*

523-2 Shironodan, Chogetsu, Momoyama-cho, Kinokawa City,
Wakayama Prefecture 649-0611, Japan
TEL: +81-736-66-3450
FAX: +81-736-66-3451

Onward Park Bldg. 12F, 3-10-5, Nihonbashi, Chuo-ku,
Tokyo 103-0027, Japan
TEL: +81-3-3276-3920
FAX: +81-3-3276-3921

HIRAMATSU Co., Ltd.

Overseas Business4342-9 Sumiyoshi, Yoshida-cho, Haibara-gun,Shizuoka Prefecture 421-0421, Japan
TEL: +81-548-22-7588
FAX: +81-548-22-7122

Hory Korea Co., Ltd.
277-5 Myeongdong-ri, Hallim-myeon, Gimhae-si,
Gyeongsangnam-do, Korea
TEL: +82-55-342-5651
FAX: +82-55-342-5654

AOMORI ATOM Co., Ltd.
35-135 Yakiyamakawame, Odanozawa, Higashidori Village,
Shimokita-gun, Aomori Prefecture 039-4223, Japan
TEL: +81-175-45-7750
FAX: +81-175-45-7751

HORY VIETNAM Co., Ltd.
Long Duc Industrial Park, Long Duc Ward, Long Thanh District,Dong Nai Province, Vietnam
TEL: +84-61-368-1211
FAX: +84-61-368-1199

SN Builtech Co., Ltd.
Onward Park Bldg. 11F, 3-10-5, Nihonbashi, Chuo-ku,
Tokyo 103-0027, Japan
TEL: +81-3-3276-3930
FAX: +81-3-3276-3931

DIMENSION-ALL INC.
Unit 906, One corporate Centre, Meralco Avenue Corner
Julia Vargas Avenue, Ortigas Center, Pasig City, Metro Manila
Philippines
TEL: +63-2-997-4001

TOTAL TOSHISEIBI Co., Ltd.
2601, Yorozu-cho, Nakagawa-ku, Nagoya City 454-0872, Japan
TEL: +81-52-352-0347
FAX: +81-52-353-5841

Cadian Co., Ltd.

*Scheduled to be absorbed by SRG TAKAMIYA Co., Ltd. on January 1, 2018.

Grand Front Osaka Tower-B Bldg. 27F, 3-1,
Oofuka-cho, Kita-ku, Osaka 530-0011, Japan
TEL: +81-6-6375-8048
FAX: +81-6-6375-8128

NEXTECH Co., Ltd.
Grand Front Osaka Tower-B Bldg. 27F, 3-1,
Ofuka-cho, Kita-ku, Osaka 530-0011, Japan
TEL: +81-6-6375-9200
FAX: +81-6-6375-9227

Group Tie-ups
Manufacture and sales of
temporary equipment
and materials

Manufacturers andtrading companies

Hory Korea
HORY VIETNAM

Manufacture and sales of
temporary equipment
and materials
Products

Hory*

Purchase of assets for lease

Purchase of products for sale

Purchase of assets for lease

Purchase of products for sale

Purchase of assets for lease

Purchase of products for sale

Purchase of assets for lease

Sales and rental of temporary equipment
and materials

Manufacturers and trading companies

Sales, rental and construction of temporary
equipment and materials

Design and drawings

Cadian

Sales

Regional marketing
Specialist construction
AOMORI ATOM, SN Builtech,
TOTAL TOSHISEIBI, NEXTECH

Equipment transportation

HIRAMATSU

Domestic customers

Overseas customers
RentalSales, rental and construction of
temporary equipment and materials
IWATA

SRG TAKAMIYADIMENSION-ALL

Purchase of
assets for lease

Domestic and overseas construction companies,
contractors, agents (scaffolding rental companies)
Design and drawings

Transport operations

Annual Report 201729

SRG TAKAMIYA CO., LTD.
Grand Front Osaka Tower-B Bldg. 27F, 3-1,
Ofuka-cho, Kita-ku, Osaka 530-0011, Japan

Printed in Japan