Annual Report
2020
Takamiya Co., Ltd.
Head Office Grand Front Osaka Tower-B Bldg. 27F, 3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan

www.takamiya.co/en/

Takamiya Co., Ltd.

Introduction

Management Philosophy

First, please allow me to offer my sincerest condolences to the familiesof all who have lost loved ones due to the current COVID-19 pandemic,
and my sympathies to those who have contracted the disease. Also,
I would like to express my deep gratitude and respect for the medical
professionals who are on the front lines fighting to contain this pandemic.
As we move toward an era of coexisting with COVID-19, majorchanges are required of corporate management. The Company willcontinue to take on challenges in its business activities with agility andflexibility while taking precautions against infection to the maximum
extent possible.
Even in the face of a severe situation such as a pandemic, we cannot
stop evolving. We will not limit ourselves to conventional business or
earnings structures. Rather, we will transform our business modelwith the aim of becoming a corporate group that drives the qualitative
development of the construction industry.
The fiscal year ending March 31, 2021 is the final year of our 2018
Medium-Term Management Plan. In this report, we present our results
and outlook for “Transformation,” which is the central theme of the plan.

Kazumasa Takamiya
Representative Director, President and Chairman

Contents
Editorial Policy
The content of this report ranges from theValue Creation Story
Management Philosophy

1

At a Glance2achieving its mission and vision, and financial andHistory of Value Creation4

non-financial information. Our aim is to provide

Takamiya’s Value Creation Process

6

all stakeholders, in particular shareholders andTakamiya’s Unique Business Approach

8

Message from the President

102018 Medium-Term Management Plan

16

as a corporate group. With “Love” set as our

Message from the Chief Financial Officer

18

Mission Statement, we began moving step bySpecial Feature 1 Pursuing a New Business Model through Sharing

20

step through our transformation into a corporate

Special Feature 2 Building a Solid Development and Production System

22

Financial and Non-Financial Highlights

24

Takamiya Group’s history to its strategy formedium- to long-term value creation, the path toinvestors, with a better understanding of the
Takamiya Group.
On June 20, 2019, we marked our 50th year

group unlike any that has ever existed. We
hope your expectations for the Takamiya Groupwill grow as we progress toward this goal. We

Sales Business

26

transformation unique to Takamiya, while working

Rental Business28

to disclose information in an easy to understandOverseas Business30

various stakeholders.

32

Note regarding Forward-Looking Statements

Environment and Society

36

The performance forecasts and other forward-

Corporate Governance38

looking statements in this report are assumptions

Messages from the Outside Directors

42

made by the Company based on information

Directors, Corporate Auditors and Executive Officers

43

inherent risks, uncertainties, and various otherfactors that could cause actual results to differ
materially from forecasts herein.

Love the company

From birth, we have all beenLove starts with showing

Companies are an innate part of thegiven our own life to live. It isconsideration for our family–our

local community. We are grateful

only natural that we seek toparents, our brothers and sisters.

to the community, the country, andkeep on improving ourselves,

Loving others means showing

the world in which we were raised,

to be better tomorrow thanconsideration for our friends, ourand we do our best to give backwe are today. We need to beneighbors, and all the people of

to each of these however we can.

disciplined, and we need to be

the world, and wishing for eachGroups naturally form wherever

humble; we need to remember

other’s happiness.

people gather. The company is one

that even those things we regard

such group. Through the company,

as everyday events are in fact

we give back to the community,

precious and can be experienced

the country, and the world. This is

only once.

what it means to love the company.

Foundations for Value Creation
Human Resources

available at the time of publication, and involve

Love others

Strategies by Businesswill continue to create new value and pursue amanner that reflects the opinions and requests ofLove yourself

Data Section
Our Main Products

44

Corporate Information

45

Annual Report 2020

1

Value Creation Story

At a Glance
Net Sales¥

46,065 million

(up

9.2%)

Operating Income¥

3,703 million(up

Percentage of Net Sales
by Segment
Overseas Business

Sales Business

15.0%

31.4%

36.5%)

Rental Business

53.6%
History of the Scaffolding
Rental BusinessSpread of Next-Generation
Scaffolding (Square meters)

Approximately

8.48
millionsquare meters

45 years

Return on Equity (ROE)

Equity Ratio

Depreciation

14.7%

30.5%

¥

(up

(up

2.7 points)

4.5 points)

Return on Assets (ROA)

Dividend on Equity (DOE)

EBITDA

6.2%

3.9%

¥

(up

Types of Rental Assets

Rental Assets Utilization Rate
FY Ended March 31, 2020

60.2%

2,000 types

Global NetworkJapan

FY Ended
March 31, 2018

Number of Employees

10 companies(up

94 employees)
FY Ended
March 31, 2018

Branches and sales offices

21 locations

52.9%

Gender Ratio of New HiresFY Ended March 31, 2020

FY Ended March 31, 2020 (2/2 people)

New hires in April 2020: 43 people

47.6%

100%

FY Ended
March 31, 2019

Male: 28

Female: 15

65% 35%

A DIMENSION-ALL(Philippines: Sales and rental)

B Hory Korea(South Korea: Manufacturing and sales)

C HORY VIETNAM(Vietnam: Manufacturing and sales)

D Cadian Vietnam

Factories
Rate of Employees Returning
to Work after Childcare Leave

Paid Leave Utilization Rate

1,298

45.1%

FY Ended
March 31, 2019

Overseas

Consolidated subsidiaries

Cumulative Users of Iq System

400 companies

8,508 million

1.2 points)

Approximately

Approximately

4,804 million

2 locations(Non-consolidated)(CAD drafting, sales and rental)

Equipment centers

28 locationsB

FY Ended March 31,
2019 (9/9 people)

47.8% 48.1%

100%

CD

A

FY Ended March 31,2018 (2/8 people)

25%
2

Takamiya Co., Ltd.

Annual Report 20203

Value Creation Story

1974–

2000–

2010–

2015–

Established Scaffolding
Rental BusinessEntered Environmental
Business

Revolutionary Changes
in the Industry

Providing Added Value
beyond Scaffolding

1982 Commenced
automation of theequipment centers

1988 Introduced a CAD system

ChangeEvolution2000 Entered disasterprevention market

Rental Business

Created many “industry first” systems and new frameworks

30-Day Guarantee
SystemCost of
Equipment Loss

Computerization

Established a 30-day
minimum borrowing period
for temporary equipment

Introduced a reimbursement
system to cover damage torental equipment

Introduced a computerized
system for issuing invoices

In addition to revising
our business model
to stay ahead of thetimes, we are carryingout a transformation tocontinuously increase ourcorporate value throughthe development of highvalue-added products andservices. We will continue
to take on the challengeof creating new value,
and aim to become acorporate group that drives
qualitative development of
the industry.

Transform

Automation of the equipment centers

Scaffolding Construction Department
Sales Business
Development and manufacturing
AI/IoT

Smart Agriculture

1981 Established the
Scaffolding System
Engineering Office

We have advanced into various fields
based on our core business in scaffolding.
In 2015, we entered the Agriculture
Business. This primary industry faces many
issues, such as the aging population ofagricultural workers and the abandonmentof farming for economic reasons. In light ofthese issues, we used the metalworking
technologies we have cultivated though
the development of temporary equipment
to create and sell agricultural greenhouses
that are highly weather resistant. Also,
we have worked to strengthen our role
as a manufacturer and offer value in new
domains, such as through the development
and sale of anti-seismic damping frames toprotect homes from earthquakes.

Agriculture Business

Established1969–

In the 2000s, construction investment shifted from highways
and new infrastructure to disaster prevention, repair,maintenance and improvement. Anticipating further changes,
we entered the Environmental Business. Since then, we havepositioned the Environmental Business as an important part ofour growth plan and introduced several strategic products, suchas the YT Lock System, designed for scaffolding installation
on mountain slopes, where accidents can easily happen, andthe Lift Climber, which targets large-scale maintenance andrepair projects for high-rise condominiums and office buildings.
Currently, we are broadening the concept of the Environmental
Business to include the provision of equipment for maintenanceand repairs of public infrastructure, as well as the resolutionof the labor shortage in industry and measures to address theaging population of workers, and the establishment of “Safety,”“Environment” and “Workability” as themes for all our projects.

Creating New
Frameworks

Sharing

Launched in 1969 as a seller of scaffolding, the Company quickly
shifted to the Rental Business. During construction for the Japan
World Exposition, Osaka in 1970, many construction companies
procured large amounts of equipment in Osaka, and sold it off
immediately after use. Anticipating the era of the temporary
equipment rental business, we decided to change our businessstructure. We went on to establish frameworks and systems
that are standard in the industry today, such as a security
deposit system for products and minimum rental periods. During
Japan’s economic boom, as rival companies engaged in pricecompetition we made efforts to strengthen our foundation bystaying ahead of the times in ways such as automating servicing
of temporary equipment. Through these initiatives, our businessexpanded nationwide.

In 2010, we acquired manufacturingfunctions for the purpose of revolutionizing
scaffolding, which had not changed in 50
years. We developed and launched the next
generation of scaffolding in-house. Iq Systemnext-generation scaffolding increased thefloor height from the conventional 170
cm to 190 cm while providing excellent
workability. It is steadily solidifying its position
as the de facto standard for scaffolding.
In addition to establishing scaffolding
product development and manufacturing
departments through the acquisition of
Hory Korea Co., Ltd., we established the
Scaffolding Construction Department. In thisway, we have created a system in which
each of our functions generates synergies
with the others, enabling us, for example,
to address labor shortages at construction
sites while conducting promotions for our
next-generation scaffolding.

Iq System

Strategy Transition

Providing Value to Society

History of Value Creation

Agriculture Business
Overseas Business4

Takamiya Co., Ltd.

Annual Report 2020

5

Value Creation Story

Takamiya’s Value Creation Process

Achievement of Our Mission and Vision

Outcomes

Takamiya’s value creation is defined by its ability to look ahead—to anticipate change andinnovate its business portfolio and frameworks to create new business models. By repeating

Value for Society

this process, we will continuously improve our corporate value, while taking on the challengeof resolving more social issues.

Business Environment and Social Issues
Asia• Expo 2025 Osaka, Kansai* leading to a boom in demand forconstruction and a subsequent slowdown• Aging of domestic housing stock and public infrastructure• Declining birthrate and aging population• Decreasing and aging population of agricultural workers• Growth of Asian economies• Increase in construction andother projects

Japan• Maintenance and repair needs forhousing and infrastructure• Needs for productivity improvements
at construction sites, etc.
• More stringent safety standards
at worksites• Needs for quality and productivity
improvements in agriculture• Needs for disaster prevention, disastermitigation and weatherproofing• Frequent occurrence and growing magnitude of natural disasters• Climate change and the depletion of natural resources• Diversification of and fluctuations in risks• Technological innovation• Increasingly borderless society

Risks for Takamiya• Intensifying competition• Delay in development of distinctive
products and services• Competitors establishing defacto standards• Changes in rules, standards, etc.

Human Resource
Capabilities
Number of
employees

1,298Technological
Capabilities• High material and labor costs• Long-term slowdown inconstruction demand• Labor shortage

Expertise in scaffolding
Metalworking technologies

Asia

CAD drafting technology• Increase in construction andother projects• High material and labor costs• Accidents at worksites, etc.

Both in Japan and Overseas

Engagementwith stakeholders
including investors• Needs for productivity improvementsthat use AI and IoT, etc.

• Environmental pollution andgreenhouse gas emissions

8
Sales
13
offices
Equipment
28
centers

Branches

Staying ahead of changes
in the business environmentand social issues

Continuous transformationof our business portfolio
and frameworks

Upfront
investments

Takamiya Co., Ltd.

Share of next-generation
scaffolding

31%*

Upfront
investments

Return on
investment

Return on
investment

Return on
investment

Rental assets
utilization rate
Next medium-term
management plan

Medium-term
management plan

Medium-term
management plan

60.2%

Expansion to other domains and areas

locations

Agriculture Business
Manufacture,sales and rental oflight-duty temporary
equipment in Japan

Timely Provisionof Products Using
Our Network

Return on
investment

Return on
investment

Return on
investment

Core businessmillion m2*Company survey, as of March 31, 2020

Upfront
investments

Manufacture, sales and rental of light-duty
temporary equipment overseas

Create New
Frameworks beyond
Conventional Thinking

Development, manufacture and sales of products in new domains

Corporate Governance

6

8.48

Upfront
investments

Previous medium-term Current medium-term
management planmanagement plan

locations

FuturevisionUpfront
investments

Upfront
investments

Provision of Advanced
Products and Services

Iq System coverage(Square meters)

Current
state

Upfront
investments

locations

OutputBased on our projections regarding the business environment,
as well as engagement with stakeholders, we formulate
medium-term management plans that describe the future as itshould be (target goals), based on our hopes for the Company(future vision). By repeating a cycle of preparation(investments) during the previous management planfollowed by return on investment and simultaneous
preparation for future growth during the
Backcasting
current management plan,
we continue to transform ourbusiness portfolio andframeworks in orderto create value.
Target goals
Backcasting

Five Functions

Network• Needs for high-value-added
products and services• Contributions to economic development in areas
such as ASEAN• Disaster prevention and mitigation

Business Model• Changes in government policies• Partnerships• Safe and efficient worksites

GlobalInput
Opportunities for Takamiya• Lower costs and improved productivity in agriculture• Effective use of resourcesJapan*2025 Japan World Exposition• Improved quality in theconstruction industry

Compliance

Annual Report 20207

Value Creation Story

Takamiya’s Unique Business Approach
Current State

Target Goals

Future Vision

Based on the strengths we have cultivated,
we search for possible ways to evolve.

We create value by formulating plans to achieve
our target goals drawn from our future vision.

Using our future vision as our starting point,
we think of new value creation while carefully
perceiving changes in our operating environment.

The origin of value creation is not an extension of the status quo.

Backcasting
Strengths
Human Resource
Capabilities

Technological
Capabilities

Backcasting

Human resources with extensive expertise in scaffolding

Scaffolding expertisein a wide rangeof areas

Outstanding
metalworking
technologies

Scaffolding-related
CAD drafting
technology

Anticipate future
requirements
and formulate
medium-term
management plan

Synergies among our five functions

AssetsDevelopment andmanufacturing

Design andinstallation

Sales

Return on
investment

New value
creation

Investments

Optimization

RentalSuccessive generationof innovations
that bring about
the qualitative growthof the industry

Management
and logistics

Backcasting

Combine functions with customer orientation

Provide Frameworks
The Company provides unique value by
connecting the various functions it has
refined through its business activities. This
enables us to offer one-stop frameworks
that are highly convenient for customers.
Beginning with the market launch ofinnovative products, we provide logistics
as well as support from holding andmanagement of products to the processes
necessary before and after usage.
Customers can use our services exactly as
if we were a department in their company.
Going forward, we are considering the useof these frameworks in entirely new areas,in addition to our Agriculture Business andother established businesses.

8

Takamiya Co., Ltd.

Takamiya’s Frameworks

Balance individual functions to maximize framework value

One stop Horizontal development across all products

Thoroughly raising the efficiency of individual functions

Development and manufacturing

RentalSales

Development and stable supply of productsthat directly reflect customer opinions

Optimal product logistics
Enables provisional rollout at worksites

Enables ownership/holding of productsthat revolutionize worksites

Management and logistics
DesignEnables simulation of scheduled temporary
construction and equipment preparation

Sales offices and equipment centersin more than 40 locations across Japan

Scaffolding installation
Reduction of customer workload atconstruction sites by engaging incontract assembly and disassembly

Annual Report 20209

Value Creation Story

Message from the President
Establishing new business frameworks
to trigger radical innovation in
the construction industry
We have reached the final year of our 2018
Medium-Term Management Plan, in which weoutlined our vision to “Create new value throughtransformation and aim to become a corporategroup that drives qualitative development of theindustry.” We have made great progress with
our results to this point. We will create new valuethat exceeds anything we have achieved before,and pursue a transformation that only Takamiya
can bring about.

Kazumasa Takamiya
Representative Director, President and Chairman

Surviving in the Era of COVID-19
with a Focus on the Changing Times

private sector over the last few years have reached a totalof over ¥60 trillion, and continue to increase.
While demand for redevelopment of infrastructure ishigh, we cannot afford to be overly optimistic. One reason
for this is the shortage of manpower in the industry.
Recently, the impact of the COVID-19 pandemic haschanged the employment situation, so perceptions of alabor shortage have faded. However, we do not foreseea labor surplus or decreasing construction demand.
There will be a greater need to secure excellent humanresources and improve productivity.
Takamiya has been working on an initiative to address
this issue. Called “Iq System,” it is next-generation
scaffolding featuring high safety and workability that
surpasses existing products. Iq System supports aworksite environment in which workers can carry out
installation safely and securely, and also raises efficiency
in ways such as reducing product management andtransport costs, thereby contributing to productivity
improvement. In the construction industry, the term
“next-generation scaffolding” has steadily spread asawareness increases, giving rise to new changes. The
Iq System market has grown largely according to plan,with no major deviations from our initial forecast for 2020,
and we have secured the top share of the market. Also,
we forecast that next-generation scaffolding will be in
the majority within the next five years. We can see thepositive response to the first moves we took based on
industry trends and economic conditions.

The global COVID-19 pandemic has dramatically altered
the world. It is also causing major changes to theenvironment in which businesses operate. Given theneed for new lifestyles that enable people to coexist with
COVID-19, major changes are needed in the businessenvironment and in corporate management.
The fiscal year ending March 31, 2021 is the final yearof our 2018 Medium-Term Management Plan, which waslaunched in April 2018 under the theme of “Transformation.”
This theme expresses our determination to support thequalitative development of our industry by renewing ourbusiness model in anticipation of the changing times.
The megatrend in the construction industry is a shift in
focus from new construction to renovation, maintenanceand repair. Reconstruction of office buildings has alreadyprogressed, and going forward, large-scale repairs,
maintenance and improvements of infrastructure suchas bridges and highways is expected to commence. In
Japan’s Kansai area, infrastructure development andreconstruction of existing buildings are expected to move
forward in tandem toward Expo 2025 Osaka, Kansai,
Japan and the development of integrated resorts (IR).
Also, construction for disaster resistance is a pressing
issue amid concerns regarding the anticipated Nankai
Trough Earthquake and frequent abnormal weather.
Investments in this area from governments and theIndustry-related Projects
l Tokyo 2020 Olympic andParalympic Gamesl Chuo Shinkansen (maglev): Service commences
between Shinagawa and Nagoyal Hokuriku Shinkansen: Service commences
between Kanazawa and Tsuruga

l Hokuriku Shinkansen: Full-scale work commences
between Tsuruga and Shin-Osaka (2031 or later)l Chuo Shinkansen (maglev):
Service commences
between Nagoya andShin-Osakal Planned opening of Osaka IR
l Opening of Expo 2025 Osaka, Kansai, Japan

2020

2025

2030

2035

Infrastructure repair work and improvement projects
l Tokaido Shinkansen large-scale repair and improvement work (up to 2023)
l Hokuriku Shinkansen: Service commences over entire line (by 2031)
l Tokyo Metropolitan Expressway large-scale renewal construction (up to 2028)
l Hanshin Expressway large-scale renewal construction (up to 2029)l Honshu-Shikoku Bridge Expressway large-scale renewal (up to 2029)

10

Takamiya Co., Ltd.

Annual Report 202011

Value Creation Story

However, we are focusing on even larger changes. We
are aware that further forward-looking transformation will
be necessary, following on the added value of labor-saving
and improved safety in installation that we have provided
in supplying scaffolding to construction sites.

Creating New Business Models
by Combining Enhanced Functions
Currently, the Company is focusing on the transformationof the very nature of its business. This entails theprovision of frameworks that provide exceptional
convenience for our customers. If we define the value theCompany has offered to this point as “providing safety atconstruction sites,” then our next transformation could
be defined as “providing a one-stop source of all services
related to the construction business.”
Let me explain in more detail. The Company started withtemporary equipment rentals. We have slowly expanded
our resources and now operate under five functions:development and manufacturing, design and installation,
rental, sales, and management and logistics. Specifically,(1) product development that revolutionizes construction
sites and development and manufacturing functions forstable supplies, (2) sales functions, (3) rental functions
that optimize product distribution, (4) design and installation
functions that calculate the necessary amount of equipment
at worksites with the aim of facilitating customer utilization
while thoroughly reducing workload in ways such as
undertaking operations until assembly, and (5) management
and logistics functions handled by sales offices andequipment centers in every part of the country. Because
we have now achieved a high level of functionality in theseareas, we are well-placed to combine them to provide the“framework business.”
We have already started to provide frameworks with
Iq System. In our “Iq Sharing” service, after customers
install Iq System, they can manage equipment using
our equipment centers and share equipment with othercustomers. (For more information, please see pages 20–
21.) Our conventional Iq System has become the de facto
standard in the industry through in-house development
and manufacturing, promotional activities during theprovision of installation contracting services, and growthof rental and sales. By combining these functions with
our management and logistics functions, we can design“efficient use of the customer’s equipment.” Making bestuse of the Company’s frameworks will lower costs for thecustomer and become essential for business continuity.
The framework business has the advantage of being
applicable to all purposes—it is not limited to specific

12

Takamiya Co., Ltd.

products or fields. It is possible to use frameworks forequipment other than Iq System equipment. In the
Agriculture Business, for example, we have alreadystructured and applied a framework including ourdevelopment and manufacturing, sales, and design andinstallation functions, but we believe there is room forprogress. Going forward, the Company will need toconsider what could increase customer convenience andhow to use our frameworks accordingly. Of course, ourpolicy of raising the efficiency of each individual function
remains unchanged. We will continue working to establish
equipment centers in urban areas to increase the ease oftransporting equipment, as well as to reduce costs andincrease productivity at manufacturing worksites, among
other efforts. Going forward, however, we will not raise
the efficiency of single functions in isolation. We will thinkfrom the point of view of what investments and initiatives
will maximize the value of our framework business andgive it optimal form. Therefore, our theme for the fiscal
year ending March 31, 2021 is “Optimization.”With our transformation, customers will be able toconduct their businesses very efficiently by making
use of the frameworks we provide. Also, we will shift
away from businesses that generate profits throughupfront investments and management of tangible assets(amortized rental assets). We will avoid price competition
when tangible assets are largely amortized, andinstead focus on investments such as human resource
development that will lead to the next innovation.
Beyond these initiatives, I am confident that we will truly
achieve the “qualitative development of the industry”
as set forth in the Company’s current Medium-Term
Management Plan.

businesses—and are focusing our efforts on transforming
the Takamiya Group. In the fiscal year ended March 31,
2020, we had a particular focus on improving productivity.
This is because productivity is key to strengthening capacity
in the manufacturing field. Specifically, in addition to raising
the manufacturing capacity of our four operating factories,
we expanded the Vietnam factory (completed the third
phase of expansion) in pursuit of optimization. At the sametime, progress in turning the Vietnam factory into the main
manufacturing base for products sold in Southeast Asia
advanced our efforts to raise efficiency.
As mentioned previously, the fiscal year ending March
31, 2021 is the last year of the current Medium-Term
Management Plan, so we are preparing for the next
Medium-Term Management Plan. In the next plan, we aim
to generate innovation by creating new frameworks. As
one of our initiatives to achieve this, we are conducting
the Project Leader Conference, with the participationof our new generation of leaders. The Conference
involves, for example, simulations of automation forloading operations at new equipment centers. By
thoroughly verifying matters such as the extent to which
computerization (use of IT and AI) raises efficiency and theissues that may arise from computerization, it is possible
to consider the projects that we should invest in going
forward. In order to make computerization a reality, we
also need to strengthen our IT personnel. The training
and strengthening of human resources is a management
issue for achieving our transformation, and we are moving
forward with related initiatives.

In the Sales Business, by deploying a strategy of sellingto small enterprises in order to increase the uptake of
Iq System as the industry standard we succeeded inachieving double-digit growth in both income and profit.
The shift to next-generation scaffolding by our competitors
and the acceleration of next-generation scaffolding use in
the industry have raised the possibility that new customer
acquisition could decline in the future. On the other hand,
we expect growth in demand from existing customers
in the form of repeat orders for renewals or for extra
services. We have expanded our sales targets from large
corporations to include small enterprises, resulting in an
overwhelming increase in the number of customers. Thisshould lead to stable repeat order demand in the future.
We have also focused efforts on developing new
products and further strengthening our manufacturing
capacity. Going forward, we will refine our capabilities
as a manufacturer through joint development withcustomers of products needed at worksites, thedevelopment of highly versatile products, and bystrengthening our information gathering capability andestablishing a global procurement system that quickly
addresses customer needs.
In October 2014, we started our sales and installation
business for agricultural greenhouses (the Agriculture
Business). We will work to expand the market byhighlighting the merits of our products—low cost, highweather resistance and fast installation—through inhouse cooperation between construction departments, inaddition to leveraging our strengths in metalworking.

Business Results

Preparations for Our Transformation Are
Steadily Progressing according to Plan
Looking at our performance for the fiscal year ended
March 31, 2020, Iq System became a driving force in boththe Sales and Rental businesses and drove our results
to record highs, in line with our 2018 Medium-Term
Management Plan targets. In key measures involving
investments in rental assets, we made a partial revision
regarding overseas investments. Our other policies are
generally progressing according to plan, and the utilization
rate for rental assets has improved substantially.
In the current Medium-Term Management Plan, we arecontinuing to strategically invest management resourcesin the plan’s four basic policies—strengthen managementfoundations, drive innovation in the earnings base, accelerate
overseas business development and create new growthn Net sales (left scale) n Operating income (right scale) l Operating income margin(¥ million)
60,0009.0%(¥ million)
8.7%
6.4%

50,0004.7%
40,00030,00036,76334,35034,261
3,098

8.0%

8.0%
6.6%

5,000

46,06542,182
3,703

36,114

2,983

4,000

2,000

1,690

10,000

0

4,000

3,000

2,713

2,429
20,00050,000

6,000

1,000

2015

2016

2017

2018

2019

2020

0

(Plan)(FY ended/ending March 31)

2014 Medium-Term Management Plan

2021

2018 Medium-Term Management Plan

Note: Performance targets for the fiscal year ending March 31, 2021 are from the 2018 Medium-Term Management Plan announced on May 30, 2018.

Annual Report 202013

Value Creation Story

We expect the Rental Business to produce the moststable earnings among all of the Company’s businesses.
This business has achieved double-digit growth in bothincome and profit, as well as two consecutive fiscal yearsof earnings growth while restraining capital expenditures.
Behind this was the high utilization rate for rental assets
due to strict operations management, in addition to anincrease in new customers for Iq System, and firm repeat
rental demand. Specifically, we succeeded in expanding
earnings by conducting operations while managing
product component proportions from the design stageof scaffolding, as well as strengthening preparation
capabilities to shorten the time from equipment return tothe next shipment.
Going forward, we will work to further expand our earning
capabilities by responding to growing demand throughinitiatives, including AI and IoT, for even higher productivity
and quality, as well as by introducing new frameworks.
In the Overseas Business, we are largely at the
upfront investment stage. However, in the fiscal year
ended March 31, 2020, we were finally able to secure
earnings throughout the period. In the ASEAN region,
demand for manufacturing, sales and rental of temporary
equipment is growing due to factors including investmentin the Philippines in areas such as construction of public
infrastructure and urban development, and Vietnam’s
moves to attract foreign corporations. In this environment,
focusing on sales activities to build local corporate andpersonal networks has made it possible for us to obtain
information at the initial stage of projects.
Given the global impact of the COVID-19 pandemic andother factors, we expect difficult conditions to continue
for the Overseas Business in the fiscal year ending March
31, 2021. However, we plan to strengthen sales andmarketing at our sales base in the Philippines.

ESG Initiatives Consistent with
Our Management Philosophy
Our Mission Statement is “Love,” and our Management
Philosophy is comprised of “Love yourself,” “Love others,”and “Love the company.” Companies are an innate part ofthe local community and country, and through our company,
we give back to them however we can. That is what
“Love the company” means. Also, people seek to improve
themselves and show consideration for their families,
friends and neighbors. This is what “Love yourself” and“Love others” mean. The Company’s stance toward ESG isrooted in this Management Philosophy. For the Company,
work itself is social contribution. For example, since ourfoundation as a company based on the Rental Business,

14

Takamiya Co., Ltd.

we have declared our intent to aim for “the rationalizationof asset-holding” throughout society. Also, by constantly
offering products with outstanding workability and safety,
the Company tackles social issues head-on, such as thelabor shortage caused by Japan’s declining birthrate and an
aging population. Also, consideration for the environment is
an inseparable part of our business. We contribute in ways
such as providing products for the repair and maintenanceof infrastructure as well as for use in storm and flood
damage countermeasures and to prevent building collapse
due to earthquakes.
For human resources, based on our Management
Philosophy we regard the creation of an environment
in which our employees can work with independence
as the most important issue. We are also conducting
various measures to cultivate our human resources,
as it is critical to develop employees who can
independently generate new ideas and make and carryout proposals, as well as personnel who have a highdegree of expertise. The aforementioned Project Leader
Conference, which focuses on our young leaders, is one
such measure. Obtaining information from a position
close to management enables our young leaders to act
independently, which leads to their development. In
addition, we are moving forward with initiatives such as
the introduction of an incentive system for individuals, andallowing employees to dress casually when doing office
work, which is a rarity in the construction industry.
Work-style reform is also necessary, as increasing
productivity is a characteristic of the Company’s business.
While we had already been conducting such initiatives,current trends in work-style reform will lend impetus
to our efforts. Going forward, we will advance uniqueinitiatives that are not limited by conventional thinking. We
will continue to strengthen our management with a focus
on human resources.
The enhancement of corporate governance is also critical
for reinforcing the management foundation. Given thegrowing importance of governance, the Company has inplace a system under which the Board of Directors, which
includes Outside Directors, provides strategic guidance
and management supervision and a Board of Corporate
Auditors, whose members, including Outside Auditors,
audit Directors’ execution of duties. We strive to strengthen
cooperation in audits between the Corporate Auditors andthe Internal Audit Office. In June 2020, a new auditor was
appointed. I anticipate that he will be able to apply theknowledge he has gained serving as General Manager of
the IT System Department in strengthening governance.
We are also making efforts for speedy disclosure of
information. In addition to increasing the accuracy of
information, we want to conduct more proactive disclosure.

While considering the rejuvenation of our management
team, we are making progress with delegating
authority to Division General Managers so as to avoid
concentrating power in top management. Division
General Managers responsibly take part in corporate
governance by sharing information as they conductbusiness management. Interdepartmental management
has also been strengthened and management policies
are being strictly enforced. Increasing the number ofindividuals with knowledge related to management has
also facilitated developments toward the next MediumTerm Management Plan. Given the substantial progressof management training, we anticipate that the numberof management personnel able to oversee the Company
will increase.

Creating Products and Services That
Have Never Existed Before—
That Is the Essence of Takamiya
We are often asked what our main business is. Is it
scaffolding rental? Scaffolding development? Scaffolding
installation? Sales and marketing? As I mentioned
previously, our transformation is aimed at having all
our businesses generate synergies while growing andadvancing as individual businesses, and to create new
products and services that have never existed before.

Because we are developing our business with a focus
on the future, it may be difficult to understand or assess
the Company in one-year increments. If stakeholders
observe our business over a three- to five-year time span,
I believe they will be able to more clearly discern our
growth trajectory.
The Company is transforming its business model withan eye to long-term growth. However, we will hold fast to
the fundamental policies that have served us well to thisday, and will not deviate from our course. Maintaining ourcourse, we will drive qualitative development of the entire
construction industry by creating products and services
that have never existed before, and aim to actively
develop business so as to be of service to society. In thefiscal year ending March 31, 2021, the final year of ourcurrent Medium-Term Management Plan, we will work toformulate the next Medium-Term Management Plan.
Going forward, Takamiya will continue taking onchallenges to increase its corporate value, such as
its earnings power and brand power, by offering newframeworks in addition to developing and providing highvalue-added products that are useful to society. I sincerely
ask all of our stakeholders for their continued support as
we move forward to meet and exceed their expectations.

Kazumasa Takamiya
Representative Director, President and Chairman

Annual Report 202015

Value Creation Story

2018 Medium-Term Management Plan

Performance Targets (Targets for the FY Ending March 31, 2021)

50 billion¥4 billion
8.0%• Net sales(FY Ended March 31, 2019 to FY Ending March 31, 2021)• Operating income margin

Create new value through transformation and aim to become acorporate group that drives qualitative development of the industry• Equity ratio
• ROE
• ROA

Basic Policy• Business model¥• Operating income

VisionTransformation of Our Business Foundations

Focus on rental

Shift to becoming a manufacturer
Provision of frameworks• Business area
Focus on the Japanese market

30% or higher
10% or higher
5.0% or higher

Development of Asian markets• Human resources
Following instructions

Acting autonomously
Cooperation

Key ESG Issues

Investment Policy• Drive innovationin the earnings base

• Restrain investment in rental assets in Japan• Create new growthbusinesses• Invest to strengthen technology development capabilities• Accelerate overseas
business development• Expand overseas production bases• Invest to raise the efficiency of the equipment centers

Related SDGs

• Co-creation of value
for society• Maintaining and strengthening
our management foundations to
support continuous value creation

Pages 36-37

Related SDGs

Pages 32-25• Actively invest in the Overseas Business
Related SDGs

• Contributing to a reduction inenvironmental impact• Governance that enhances trust from society• Invest to foster human resources and work-style reform• Strengthen managementfoundations

Pages 38-43

Progress of the 2018 Medium-Term Management Plan
2014 Medium-Term
Management Plan

Core creation:
Iq System

Step 01

Step 02

Step 03

Investment

Raiseefficiency

Theme for FY Ending March 31, 2021

PolicyStep 02

Upfront investment+
Establish revenue baseRaiseefficiency

Complete conversion to
next-generation scaffolding
Enter the Agriculture Business
Develop infrastructure ofoverseas business locations

16

Takamiya Co., Ltd.

Create frameworks through optimization

Investment

Raiseefficiency

PeopleInvestment
Tangible
assetsMoney

Core creation:
Iq System• Investment in human resource development, including
projects for hiring and for training young employees• Switch to highly versatile equipment• Increase in scale of production facilities,
including expansion of the Vietnam factory(third phase of construction completed)• Investment in cutting-edge equipment centers• Building of ICT infrastructure• Switch to business system centered on sales• Increase in speed of equipment servicing• Introduction of incentive system linked tohigher productivity• Improvement of fund procurement andfinancial position• Improvement in operational efficiency of rental assets• Preparations to reinforce the IT foundation byintroducing an ERP (key integration) system• Optimization of global procurement and production
bases, and decrease in costs by shifting overseas

Theme for FY Ending March 31, 2021
Information

Step 03

Step 01

Step 02

Step 012014 Medium-Term
Management Plan

Results

Results up to March 31, 20202018 Medium-Term Management Plan

Intangible
assetsCombine the management resources we have been investing in and raise efficiency

Createframeworks

Step 03

Create frameworks

Fully raise the efficiency of the functions of established businesses to create
new products and services that bring innovative changes to our businessAnnual Report 202017

Value Creation Story

Message from the Chief Financial Officer
Evolving our growth strategy to achieve our transformation

My duty as CFO is to provide the thrust needed to achieve
top management’s vision. As the Company formulates
growth strategies to reform its business model, I arrange
the necessary management resources and steadily playa leading role in promoting the implementation of thosestrategies across all departments.

Hideki Yasuda
Director and Managing Executive Officer
Division General Manager of Business Management Division
General Manager of Corporate Planning Department

Review of Results for the Fiscal Year
Ended March 31, 2020
Takamiya set records for performance in the fiscal year ended
March 31, 2020. Net sales were ¥46,000 million (up 9.2%
year on year), and profit attributable to owners of parent was¥2,370 million (up 44.8% year on year). This performance
was driven by work on civil engineering projects related toconstruction to extend the Hokuriku Shinkansen, as well as
the widespread popularization of next-generation scaffolding.
Sales and rentals of Iq System have been favorable, and theutilization rate for rental assets reached a record high. With
customers who have purchased from us procuring items
they are short of through rental, and an increase in multiple
purchases by new customers, it is clear that Takamiya is
close to its goal of making Iq System the de facto standard
for next-generation scaffolding.

Investment Policy and Efforts
in the Final Year of the Current
Medium-Term Management Plan
The COVID-19 pandemic is having a major effect on society
and the global economy. It is causing uncertainty regarding
corporate growth strategies and investment policies. Under
the current Medium-Term Management Plan, we hadalready decided on our next growth investments having
restrained domestic investment in anticipation of a decline indemand following the Tokyo 2020 Olympic and Paralympic
games. This has enabled us to keep our policies in the final
year of the plan unchanged, despite the difficult operating
environment. Also, our plan to strengthen our financial
position is progressing smoothly. In September 2019, we
conducted a public stock offering and disposed of treasury
stock. This increased shareholders’ equity to ¥18,100 million(up approximately ¥4,000 million year on year), and our

18

Takamiya Co., Ltd.

equity ratio rose to 30.5% (up 4.5 points year on year) for the
fiscal year ended March 31, 2020. As the increase in equity
capital has greatly improved our financial position, we haveestablished conditions in which we can properly balance
cash flows while implementing our investment plan, without
being overly concerned about the current financial climate.
The Company aims to transform its business modelwith a focus on added value. We will move from thephase in which growth was driven by upfront investment
in rental assets to a phase of investment for providing
services to customers and for maximizing capitalefficiency. Therefore, while the ratio of investment inrental assets has been high, we will gradually increase
the ratio of capital investment. Our efforts during the fiscal
year ended March 31, 2020 established the foundation for
the next Medium-Term Management Plan, and we aim to
evolve toward a lean and responsive business model.
Renewing the earnings foundation
As for our financial policy, we have set the equity ratio, ROE
and ROA as our key performance indicators. All three exceeded
the targets of the current Medium-Term Management Planin the fiscal year ended March 31, 2020, one year ahead ofschedule. In particular, we have been emphasizing ROA fromthe perspective of efficient use of management resources.

Accelerating overseas business development
Accelerating overseas business development will play animportant part in optimizing the manufacturing system.
The third phase of expansion at the Vietnam factory has
been completed. As a manufacturing base, it will maintainlow costs by focusing on mass production of mainstay
products. At the same time, we are now able to create amanufacturing and procurement system that is optimized
from a global point of view and includes high-added-value
manufacturing involving R&D concentrated in Japan. We willcontinue to conduct investments in overseas manufacturing
facilities while monitoring the risks involved.
From the perspective of sales and marketing, growth in
the Philippines market, where there is strong demand forconstruction, is important. Going forward, it is essential that
we establish a successful model in the Philippines that canbe used widely in other Asian markets. We will therefore
concentrate management resources on the development of
products that will be a hit in Southeast Asia.
Creating new growth businesses
The Business Development Division is leading thesearch for potential business opportunities, including
Capital Investment and Investment in Rental Assets
n Investment in rental assets n Capital investment(¥ million)
7,676

Financial Policy

9,476
2,249
6,420
973

2,099

2018 Medium-Term
Management Plan Targets

FY ended
March 31, 2019

FY ended
March 31, 2020

Equity ratio

30% or more

26.0%

30.5%

ROE

10% or more

12.0%

14.7%

ROA

As a result, we have raised the marginal utilization rate forrental assets. We achieved a record high average equipment
utilization rate by replacing our portfolio of rental assets
with high-utilization alternatives such as the Iq System. We
will continue to allocate investments for greater efficiency,such as the automization of our equipment centers. The
cutting-edge equipment center that we plan to establish in
Amagasaki, Hyogo Prefecture in the fiscal year ending March
31, 2021 will be fundamental to our efforts. It will incorporate
AI and automation to shorten time until shipping, among
other improvements.
An issue we must tackle going forward is strengthening
our manufacturing function. There is room for improvementin areas such as cost reductions and the stable operationof plants. Therefore, we will make investments invisualization of manufacturing operation status andthe incorporation of IoT. It has been 10 years since weentered the market as a manufacturer, and I feel we havebuilt the foundation for full-fledged initiatives in this area.

5% or more

5.0%

6.2%

1,867
5,577

2015

7,227

2016

5,447

2017

6,818

7,000

4,050

4,000

2,467

2,768

3,000

2019

2020

2021

5,624
3,984
1,517
3,757

2018

(FY ended/ending March 31)
2014 Medium-Term Management Plan

(Plan)

2018 Medium-Term Management Plan

opportunities from overseas, under concepts such as“raising efficiency,” “labor-saving” and “greater safety atconstruction sites.” To do so, we must create a stronger
system that includes the collection of diverse ideas fromwithin the Company. Also, given the frequent occurrenceof natural disasters, it is important to firmly establish theAgriculture Business, which is gaining attention from themarket, as a pillar of earnings.
Strengthening the management foundations
Going forward, we will step up investment in IT
infrastructure. In the fiscal year ended March 31, 2020,
we introduced an ERP system. We will use it for databaseintegration, analysis, and the visualization of management
information, enabling fast, detailed management decisions
and improving the current level of management literacy.
In addition, amid the COVID-19 pandemic, we haveidentified order receipt procedures that have not yet been
computerized, so we must invest in improvements.
Investing in human resources is another extremely
important matter. We have driven growth by emphasizing
employee autonomy and creating an environment in which
it is rewarding to work. However, the COVID-19 pandemic
has made it difficult to share experiences in person. Society
is awash in work-style reform measures, but we must notchase trends. Rather, our work-style reforms should, in amanner unique to Takamiya, enable employees to achieveself-actualization and feel that their contributions to society
are meaningful, based on the Company’s Mission Statementof “Love.” We will take measures to clearly define thisconcept and to connect it to personnel evaluations.

Maintain a Sound Financial Position and
Aim to Increase Corporate Value
The Company’s high investment capacity is due entirely
to the support of businesses that are producing earnings.
One strength, a strength that is a notable feature of theRental Business, is our ability to generate steady profits
while recording a certain amount of depreciation. EBITDA
is an important profitability indicator that we use tomeasure the stability of the Company’s cash flows. We
have achieved record high EBITDA of ¥8,500 million. Of
course, we are continuing to pay attention to securing
adequate funding to maintain our liquidity. Working withfinancial institutions, we have prepared a system thatallows for flexible, efficient procurement of funds that
addresses the era of COVID-19. By maintaining the current
equity ratio level while procuring funds at appropriate
times, we will maintain a sound financial position.
Currently, the Company emphasizes raising corporate
value. As such, while making returns to shareholders
through stable dividend payments is our top priority, we
will continue to make investments for growth.
We humbly ask for your continued support from along-range perspective as we move forward with theCompany’s transformation.
Annual Report 202019

Special Feature

01

Pursuing a New Business Modelthrough Sharing

Value Creation Story

Structure of the Sharing Business
Optimization of holding costs• Equipment can be purchased even
without having an equipment center• Can alleviate ballooning costs forequipment maintenance, stocking andshipment from warehouses

Equipment purchase/ownership

Customer

Customer

Takamiyaequipment
centers

Optimization of utilization rates• Customers can share their equipmentwith each other according toutilization rates

Utilization
rate of 50%
CustomerInnovation in the Temporary Equipment
Industry with the Convenience of Sharing
Currently, results are in line with the targets of the 2018 Medium-Term Management
Plan. However, the key to accelerating the transformation of the Company andcreating a new business model will be the sharing business. To achieve the themeof “Optimization” for the fiscal year ending March 31, 2021, we plan to grow the
sharing business as the fourth pillar of our business model in addition to sales, rental
and installation.
The market for the rental of temporary equipment is already mature. Rental
scaffolding has become mainstream, but an increasing number of customers own
some equipment in order to reduce costs. For that reason, we must evolve into a total
service business that offers not only products, but that also adds intangibles such as
frameworks and ideas.
For temporary equipment, tasks such as securing storage space, controllinginventory, and maintaining equipment require a great deal of labor. The concept of the
sharing business—Iq Sharing—is that Iq System equipment purchased by customers
is collectively maintained and managed by Takamiya. We deliver the necessary
equipment when it is needed, and support customers with various other services.
By transforming the centers where we store and rent out equipment into a businessfoundation that generates new value, we are confident that we can heighten Iq
System’s position as the de facto standard of the next-generation scaffolding industry.
We will continue creating new businesses and business models that lead to thequalitative development of the industry.

Utilization
rate of 150%

Customer

Optimization of Management Resources, and Building a New Service System
As a manufacturer, the Company has created Iq System,
an innovative product that has grown to become the defacto standard. Also, as a scaffolding rental company, we
have worked to maintain high utilization rates such as byinvesting in the automation of equipment centers, andshortening turnaround time for equipment shipping. Our
sharing service pursues further value for customers by
combining our existing management resources.
Iq Sharing is a framework that allows customers touse our equipment centers to share equipment they
have purchased. In recent years, an increasing number ofcustomers have purchased equipment for their own use.
However, once they do, their equipment utilization rates
are subject to fluctuations in their in-house construction
volumes. This makes it difficult to achieve a 100%
utilization rate. By optimizing their equipment holdings
and renting the equipment they lack from the Company’sequipment centers, customers can improve the efficiencyof their asset management.
Also, many of our customers, including companies
involved in construction work that requires scaffolding,
do not have their own equipment centers. By using theCompany’s equipment centers, our customers can stockand ship equipment at their convenience, as if our centerswere their own. Furthermore, at our equipment centers
we conduct acceptance inspections (for number of items,
maintenance and repairs). Customers can achieve a 100%
utilization rate without being concerned with lead time for
product reconditioning. Using our centers also reduces theneed for inspection personnel as well as costs and laborfor managing the acceptance inspection process.
In addition, we are planning a system by whichcustomers can monitor the shipped amount of shareable
equipment for management and storage, as well as theamount of rental equipment being used at worksites.
This visualization of processes helps customers keep
track of equipment utilization rates while efficiently
procuring the components that they tend to run out of.
Going forward, we will accelerate the improvement of
our equipment centers and evolve them into a service
that is indispensable to the industry by setting new
standards from the customer’s perspective in ways suchas improving equipment turnaround times.

Innovative Value for Customers Created by Takamiya

Akiyoshi Takamiya
Representative Director, Executive Vice President
Supervisor of Product Development Division, Sales & Marketing Division20

Takamiya Co., Ltd.

Achievement of a paradigm
shift in which simply
purchasing Iq System makes
it possible to commence a
scaffolding rental business.

Ability to generate earnings
beyond those gained fromoperating the equipment
in-house by investing surplus
funds in Iq System.

Better reflection of worksite
needs in our productdevelopment through closer
contact with customers.

Annual Report 202021

Special Feature

02

Building a Solid Development
and Production System

Value Creation Story

Optimization and IT Use at Manufacturing Sites
As a specific initiative, we are using IoT in the picking, inspection and packaging
processes in each factory to lower costs. We are also making progress with factory
automation. We plan to install SCADA (an operations surveillance system) in the
manufacturing equipment of all domestic plants by the end of the fiscal year ending
March 31, 2021. The visualization of data on operating conditions for each machine willcontribute to continuous improvement of operating rates. SCADA will also enable evennon-specialists to prevent equipment deterioration and conduct predictive maintenance.
This will give us a real-time grasp of production and prevent the occurrence of defects
while reducing unnecessary investments. Furthermore, we are making progress with
automating some processes at our dedicated Iq System factory in Gifu.

Establishment of Overseas Manufacturing Bases

Pushing forward with Automation and Computerization,and Strengthening Manufacturing Functions
The Company’s manufacturing functions enable it to directly develop proprietaryproducts that customers require and launch them in the market. The shift in
our focus from rental to manufacturing has progressed to the point where ourproprietary products have become de facto standards. In our current Medium-Term
Management Plan, we aim to transform to a business model in which we offer“frameworks” to our customers. The key to achieving that is to construct a system
for the efficient, low-cost manufacture of outstanding products developed from thecustomer’s perspective. I think that achieving high-level development and production
capacity will further solidify the Company’s “frameworks” business.
To this end, it is important to strengthen cooperation between the Product Development
Division and Manufacturing Division, and move quickly from development tomanufacture. In the fiscal year ended March 31, 2020, we started work on achieving
cost reductions and productivity improvements through factory automation thatincorporates IoT and AI, and will work to continuously improve labor productivity.
Automation and computerization will be ongoing themes for the Company.
On another note, the establishment of overseas production bases is progressing.
The third phase of expansion at the Vietnam factory has been completed. We will
optimize production lines at our four factories, one each in Vietnam and South Korea,
and two in Japan, in Gunma and Gifu. Progress in overseas manufacturing will be
expedited by the cultivation of new suppliers in Japan and overseas and the buildingof an optimum global procurement network by a dedicated department that weestablished last year.
The Manufacturing Division will continue to play a role in Takamiya’s transformation
through the development and manufacture of outstanding products.

Yasunori Nishioka
Director and Executive Officer, Division General Manager of Manufacturing Division
Supervisor of Scaffolding Quality Assurance Division

22

Takamiya Co., Ltd.

The Vietnam factory’s mass production system is now fully operational. The third
phase of expansion was completed in September 2019, and the factory has been
operating at full capacity since March 2020. Depending on growth in demand going
forward, fourth and fifth phases of expansion are possible. Previously, more than 90%of the products manufactured at the Vietnam factory were for Japan. However, thefactory will shift to a system of local production for local consumption, enabling us
to strengthen our capacity to supply products to the AESAN region. The factory will
also start manufacturing high-value-added products in addition to the general-purpose
items it has been producing up until now. Meanwhile, efforts are underway to reducetakt time and workload, thereby shortening lead time to commercialization and lower
costs. The plan is to double labor productivity in the near future.

Strengthening the Development System
The products and technologies supplied by the Product Development Division spanvarious fields, such as building materials, environment, temporary construction,
intellectual property management and product information provision. In the fiscal
year ended March 31, 2020, in the Agriculture Business we determined productspecifications for a high-eave, steel-frame Dutch light greenhouse and standardized
the use of square pipes in our arch pipe greenhouses. In building materials, weraised the efficiency of preparations for seismic damping component deployment
proposals. In intellectual property, we are seeing results such as an increase in thenumber of applications filed.
Product development departments are also working on productivity improvements
such as factory automation and the implementation of CAD/CAM, which are essential
in product manufacturing. Awareness of product Q (Quality), C (Cost), D (Delivery) andS (Safety) is indispensable. Going forward, we will proceed under the basic policies
of strict compliance with development project schedules and the quantification ofeffectiveness to improve business efficiency. We will also proactively take measures
to improve our technological capabilities, including switching to 3-D printers equippedwith new features, starting the planning of a new research and testing facility equippedwith numerically controlled examination equipment and employing data analysis
methods such as AI and IoT, which enable visualization of data. In addition, we will
improve the skills of our technicians and increase our mass production capabilities.
Going forward, broadening our knowledge will be a cornerstone for the Company.
In addition to the technologies we have developed in the temporary construction field,
such as metalworking and construction technologies, we plan to acquire knowledge inother fields, and to construct a system that will enable us to lead the industry in an eraof accelerating change.
Annual Report 202023

Financial and Non-Financial Highlights
Financial Highlights

Non-Financial Highlights
Operating Income/Operating Income Margin

Net Sales

Ordinary Income

n Operating income (left scale)l Operating income margin (right scale)

Investments in Rental Assets/
Depreciation

Numbers of Employees/Employeeswith Non-Japanese Nationalities

Number of Employees Taking Maternity orChildcare Leave, or Shorter Hours for Childcaren Investments in rental assets
l Depreciationn Employees with non-Japanese nationalitiesn Maternity leave n Shorter hours for childcare
n Childcare leave(Persons)(¥ million)(¥ million)(%)(¥ million)(¥ million)(Persons)

50,000

6,000

10

4,000

8,000

1,500

46,06542,18240,00034,35036,7636.6

4,000

30,0003,000
20,000

2,983

6.4
4.7

2,429

2,000

10,000
0

8.0

5,000

36,114

3,703

2017

2018

2019

0

2020

8

3,000

2,731

2,000

1,144
5,447
4,137

4,502

4,662

2

2016

2017

2018

2019

2020

1,000
0

4,804

1,000

232

275

364

1,204
419

371

(FY ended March 31)

2017

2018

2019

0

2020

2,768

500

2016

2017

2018

2019

2020

0

2016

(FY ended March 31)

2017

2018

2019

(¥)

2,500

2,370

(¥)

60
50

2,000
1,637

1,516
1,252

20

26.5

15

29.26

30

10

20

500

2017

2018

2019

2020

0

2016

(FY ended March 31)

2017

2018

2019

10.0

10.0

11.0

(¥ million)40

10,000

0

2020

2016

2017

2018

2019

n Total assets (left scale)l Equity ratio (right scale)n Interest-bearing debt (left scale)l D/E ratio (right scale)(%)(¥ million)

50,091

59,282
52,76052,81354,41415

12.6

40,000

12.0

23.5

5.8

23.4

25.0

5

6.2

7,120

30,00026.0

29,287

2020

29,497

29,124

237.4

223.6

2016

2017

2018

2019

0

20,000029,633(FY ended March 31)

2017

2018

2019

2020

0

(FY ended March 31)

Notes: 1. Figures are rounded down to the nearest million yen. However, indices shown in ratios are rounded to the unit displayed.
2. ROE = Profit attributable to owners of parent v Average equity
ROA = Ordinary income v Average total assets

24

Takamiya Co., Ltd.

(Persons)

5

2

7

2018

2019

2020

2

2

2

(%)

50

2,000
0

2016

2017

2018

2019

164.1

(%)

300

200

3,000
-1,081

70
879
1,163
-1,093-1,736-3,0002018

2019(FY ended March 31)

0

0

2016

2017

2020

0

-6,000

2016

2018

1

2019

2020

(Years)

10

9.21

9.36

9.47

9.61

25

1
20

11

20

30
20

11

10
0

2016

2017

2018

2019

2020

0

(FY ended March 31)

Turnover Rate
(Non-consolidated)4

Average Length of Service(Non-consolidated)(¥ million)

0

2017

0

1

1

(FY ended March 31)

n Cash flows from operating activitiesn Cash flows from investing activitiesn Cash flows from financing activitiesn Free cash flows

100

2016

2020

1

2

1

2,844

0

40

2

205.5

10,000

2016

2017

12

12

Number of Outside Directors/
Ratio of Outside Directors to All Directors

3

Cash Flows

10

2020

5

4

7,490

9.86

(%)

10

1,925

1,590

8

3,653

3,771

6

6

4

4

2

2

7.7

8

8.2

7.8
6.9

6.6

1,714
-1,909-222-195-1,728-1,243-2,817

0

3

6,353

6,000

20,000

3.1

6

2016

(Accidents)(FY ended March 31)

26,636
226.4

6,932

6,000

20
5.0

4.5

(¥ million)

40
30

9.8

10

(%)

30.5

14.7

8,000

(FY ended March 31)

l ROE l ROA

60,00030

4,000Interest-Bearing Debt/
D/E Ratio

18.5

8

10

(FY ended March 31)

Number of Accidents(Non-consolidated)

20

11.0

Total Assets/
Equity Ratio

20

(%)

10

(FY ended March 31)

ROE/ROA2

15

n Number of Outside Directors (left scale)l Ratio of Outside Directors to all Directors (right scale)

14.0

20.8

5

10
2016

28.8

28.5

38.22

35.14

30

8,508

48.12

40

1,000

0

37.6

11

20
7

(FY ended March 31)

EBITDA3

52.74

2,153

1,500

25

0

2020

n Annual dividends per share (left scale)l Dividend payout ratio (right scale(¥ million)

18
14
3

10

(FY ended March 31)

Annual Dividends per Share/
Dividend Payout Ratio

7

30

8

2,000

2016

38
34

20
2,467

0

Earnings per Share (EPS)

4,777

979

1,010

3,757

4,000

1,610

40
1,298

1,690

(FY ended March 31)

Profit Attributable to
Owners of Parent

2,662

4

7,227

6,000

2,337

6

2,713

1,000
2016

3,541

8.7

-3,836
-65

2017

2018

2019

2020

(FY ended March 31)

0

2016

2017

2018

2019

(FY ended March 31)

2020

0

2016

2017

2018

2019

2020

(FY ended March 31)

3. EBITDA = Operating income + Depreciation
4. Turnover rate = Number of regular employees who retired during the fiscal year v Number of regular employees at the beginning of the fiscal year

Annual Report 202025

Strategies by Business

Sales Business

Future Strategy

The construction market is shifting from new construction to repair andmaintenance work. In addition to establishing Iq System as the de facto
standard for next-generation scaffolding, we are developing our next
mainstay products.
As the Group’s most important growth driver, the Sales Business plays acentral role in promoting cooperation among all Company divisions, Group
companies and between operations inside and outside Japan.

Hidehiko Yamashita
Executive Officer
General Manager of Sales Department
Sales and Marketing Division

What We Do
We leverage our metalworking technologies and expertise in scaffolding to carryout a wide range of businesses that develop, manufacture and sell proprietaryproducts including light-duty temporary equipment such as Iq System nextgeneration scaffolding, clamps, agricultural greenhouses, and damping devices.
One of Takamiya’s strengths is the ability to develop and manufacture
products that meet the needs of worksites.

Strengths• Most customers in the industry as the leader in next-generation
scaffolding• Rental business platform• One-stop operations from development and manufacture to design
and installation• Ability to apply metalworking techniques in other fields• Low cost manufacturing at overseas production bases• Ability to create new businesses

demand for safety and efficiency at construction sites due
Opportunities • Increasing
to shortage of construction workers• Frequent occurrence of natural disasters• Shortage of agricultural workers due to the aging population andother factors• Increase in public works for economic revitalization• Restructuring of supply chainsfor productivity improvements
Weaknesses •• Need
High-mix, low-volume production• Management resources scattered due to wide variety of
product categories• Weak linkage between domestic and overseas production bases• Shortage of new/hit products

Threats• Severe economic outlook• Declining private capital investment sentiment due to COVID-19
pandemic• Aggressive price competition from rival companies• Difficulty in securing production line workers

Iq System next-generation scaffolding is the growth driver for the Sales Business. In
the fiscal year ended March 31, 2020, Iq System sales were approximately ¥4,300
million, up 31.3% year on year. We have over 30% of the market share in nextgeneration scaffolding, and are approaching a total of 400 customers. In the current
Medium-Term Management Plan, the three-year sales target for this system is¥11,000 million. Sales for the first two years of the plan totaled over ¥7,500 million,
putting us in good position to achieve our target. The popularity of next-generation
scaffolding is growing—manufacturers and rental companies that have competitive
products are carrying out full-fledged replacements with next-generation products.
However, Iq System appears to be well on its way to becoming the de facto standard.
Our next task is to further improve convenience for our customers. Going forward,
demand is forecast to increase in bridge repair and highway repair work. We are
jointly developing construction methods and products with construction company
customers, applying their opinions directly to product development. In March 2020,
we announced the launch of a product that we developed with Obayashi Corporation.
Also, we have prioritized the development of peripheral components and materials for
Iq System. We are also making progress rolling out A-walk ultra-light-weight aluminum
scaffolding boards, and AL-SPEEDER aluminum skirting boards. In addition, we are
stepping up expansion of peripheral services that target Iq System users. We will
create frameworks for reducing customer workloads by introducing Iq System. An
example of this is the July 2020 announcement of a BIM service in conjunction with
Iq System. With this service, customers can easily calculate the necessary amountof Iq System using a 3-D design model, and also verify safety. In this way, we canfurther solidify Iq System’s top share of the market. Also, we will grow the Structural
Products Division, the main product of which is Oct-brace, with an eye on market
trends such as the increasing demand for earthquake-proofing.
In the Agriculture Business, we have entered a phase of full-fledged businessexpansion. Although we have made substantial improvements in profitability fromprojects that had issues up until now, we still need to establish an area strategy and a
product supply system. Going forward, we will contribute to more resilient agriculture in
Japan by launching new structural and other products that make use of our metalworking
technologies, in addition to steadily increasing the number of orders for pipe houses.

Close-Up

Results for the Fiscal Year Ended March 31, 2020
Sales were up 13.2% year on year to a record ¥15,299 million. Operating income
was up 15.8% to ¥1,934 million.
In temporary equipment, Iq System next-generation scaffolding was the main
driver, making a strong contribution to growth in sales and earnings. While there
were regional differences, demand for next-generation scaffolding is escalating,
and we forecast that competition with rival companies will intensify. Because
inquiries are increasing for suspended scaffolding systems, which are necessary
for repairs and improvement work on public works, we believe that we should
continue to focus on these products.
In environment-related (solar panel installation frames, agricultural greenhouses)
and construction material-related products, performance surpassed that of theprevious fiscal year.

Sales and Operating Income
n Sales (left scale) l Operating income (right scale)(¥ million)
16,00015,29912,44913,512

12,000
1,934

Takamiya Co., Ltd.

2,000

1,670

8,000
1,192

1,000

4,000

0

2018

2019

2020

(FY ended March 31)

26(¥ million)
3,000

0
Yume Farm ZEN-NOH SAGA

Iq System Sales(¥ million)

4,294

3,270

2,510
1,939
1,538

2016 2017 2018 2019 2020
(FY ended March 31)

Iq System

Completion of Cultivation Facilities Incorporating
Environmental Control Functions
Yume Farm ZEN-NOH SAGA is a large-scale high-yield cultivation demonstration
test facility located in Saga City, Saga Prefecture, Japan. Established by the
National Federation of Agricultural Cooperative Associations, it is the third farming
demonstration project for high-yield technology and management. In the Agriculture
Business, we received an order for and completed construction of a high-eave, steelframe Dutch light greenhouse incorporating environmental control functions. We
supplied an integrated system in an agricultural setting from design to construction thatmakes maximum use of our strengths—the metalworking technology that we havecultivated through manufacturing temporary equipment, in particular Iq System nextgeneration scaffolding, as well as our expertise in structural calculation, the stability ofa material supply system that takes costs into consideration, and our product durability.
Going forward, in addition to developing greenhouse structures that provide
an ideal cultivation environment, we will work to lower the costs of our existingproducts and frameworks. Also, as we work to further increase Takamiya’s presencein agriculture, we will participate in the creation of frameworks for Smart Agriculture
and the development of more diverse and sophisticated enterprises that encompass
downstream sectors including processing, distribution and sales.

Annual Report 202027

Strategies by Business

Rental Business

Future Strategy

In the construction scaffolding market, the full-fledged transition from
prefabricated scaffolding to next-generation scaffolding is underway.
High evaluations of Iq System’s performance and proactive promotion
activities have secured the top share in the next-generation scaffolding
market. We will continue our role in sharpening the Company’s competitiveedge by capturing market trends and increasing added value through theprovision of new types of equipment and scaffolding installation services
and proposal-based sales and marketing (a new service), which help
improve productivity at construction sites.

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

What We Do
Through rental services, we provide light-duty temporary equipment for all
kinds of worksites, including buildings, bridges, ultra-high-rise buildings, tunnels
and underground worksites. Our in-house functions for contract scaffolding
installation work and scaffold plan drafting are strengths that enable us toprovide comprehensive customer-oriented services.

Strengths• Iq System• Scaffolding Construction Department and network of partner contractors• Product lineup and technological capabilities applicable in any field,
including building, civil engineering and plant• Early completion of investment in renewal of assets for rent
• Equipment centers near urban areas• Joint development of construction methods and products withconstruction companies• Creditworthiness as a listed company

demand for safety and efficiency at construction sites due
Opportunities • Increasing
to shortage of construction workers• Increase in large-scale projects near urban areas• Urgent need to redevelop aging infrastructure• Rising logistics costs and shortage of drivers• Paradigm shift in the industry due to the spread of ICT

share in the Kanto region, Japan’s largest market
Weaknesses •• Low
Electronic order platform not yet in place• Time lag in ascertaining status of utilization and inventory• Most equipment centers are located in suburban areas• Many servicing procedures rely on manual labor• Long standby times for drivers when shipping equipment

Threats• Severe economic outlook• Declining private capital investment sentiment due to COVID-19
pandemic• Postponement of projects relating to Expo 2025 (Osaka/Kansai)• Price competition among rival companies amid reduced demand• Difficulty in securing equipment servicing staff

Results for the Fiscal Year Ended March 31, 2020
Sales were ¥26,118 million (up 11.1% year on year), and operating income was¥3,025 million (up 22.8%).
The increase in sales was driven by a rise in the number of construction
sites requesting Iq System next-generation scaffolding, in addition to thehigh utilization rate for assets for rent, particularly for Iq System, due toshipments to large-scale construction projects such as the extension of the
Hokuriku Shinkansen. Segment income increased substantially as we refrained
from investing in rental assets and took steps to raise the efficiency ofoperations. Overall, the efforts we focused on under the current Medium-Term
Management Plan steadily yielded results.

Sales and Operating Income
n Sales (left scale) l Operating income (right scale)(¥ million)
30,00026,1183,025

21,38220,000

3,000

2,464
2,000
1,705

10,000
1,000

2018

2019

2020

(FY ended March 31)

Takamiya Co., Ltd.

Close-Up(¥ million)
4,000
23,519028

In the Rental Business, we achieved a record high equipment utilization rate in thefiscal year ended March 31, 2020. Our mainstay product Iq System has received
positive evaluations from many workers on construction sites, and repeat orders are
increasing. Rental volume and utilization rate continue to reach record highs every year.
For other equipment and the civil engineering field, the large Hokuriku Shinkansenrelated project contributed to the record-high annual average utilization rate.
Initiatives that were identified as being important in the current Medium-Term
Management Plan made a significant contribution. These initiatives included
shortening the turnaround time (from return to next shipment) of equipment andoptimizing distribution of equipment by region and in accordance with the type of
construction. Favorable conditions in the operating environment, such as orders forlarge-scale construction sites, also had a positive effect on our performance. Under
the theme of “Optimization” set forth for the fiscal year ending March 31, 2021,
we will continue to pursue total efficiency in tangible and intangible aspects in ways
such as digitalizing the ordering process, in addition to transitioning to IoT and AI andcomputerizing operations that have relied on human resources until now.
The Company’s strength is in providing comprehensive customer-oriented services.
We have the advantage of being a one-stop service provider, with in-house functions
for development and manufacturing, sales, rental, design and installation, andmanagement and logistics for light-duty temporary equipment. In particular, theRental Business can quickly cover material shortages by supplying items fromequipment centers located throughout the country to sales outlets that handle our
products. Customers who have been renting our equipment for a specified period canalso consider purchasing it. In addition, customers benefit by contracting us to carryout installation of the equipment they rent from us, firstly because of the reduction
in workload that our new products provide, and secondly because the process
alleviates labor shortages at their construction sites.
To further increase value for customers, we have established readily accessible
equipment centers close to urban areas. In the Kansai region of Japan, we madeupfront investments to purchase land in the coastal area near Yumeshima, an artificial
island where Expo 2025 (Osaka/Kansai) is scheduled to be held, and in the Osaka
Bay area. Also, we have established equipment centers near Naha Airport in Okinawa
Prefecture and Nagaoka City in Niigata Prefecture to provide ready access to highlocal construction demand.
Going forward, we will leverage our ability to apply the opinions of customers who
use our products onsite to product development and improvement, further increase
synergies with the Sales Business, and help the Company maintain its competitive edge.

0
SPIDER PANEL

Iq System

Iq System Average
Utilization Rate
(%)

71.7
68.5

60.1

2018

2019

2020

(FY ended March 31)

Initiatives to Support Demand for Hanging
Scaffolding Systems
With the trend in construction investment shifting from new construction
projects to maintenance and repair work, and an increase in demand for repair
work for transport infrastructure, we have been receiving an increasing numberof inquiries regarding VMAX and SPIDER PANEL hanging scaffolding systems.
Transportation infrastructure projects are usually very long term, so demandis high and expected to remain so for several decades. Hanging scaffolding
systems are often used in high places. In order to work safely, it is important tocheck points for attention beforehand, and carry out installation work carefully.
As an initiative to spread safe work practices, the Company launched theHanging Scaffolding System Association in March 2020. We are also providing
support through information and other services to make scaffolding construction
safer and more efficient.

Annual Report 202029

Strategies by Business

Overseas Business

Future Strategy

The fiscal year ending March 31, 2021 is the final year of the current 2018
Medium-Term Management Plan, and the impact of the COVID-19 pandemic
has made the outlook uncertain.
Even so, the future of the Overseas Business is promising, given the progress
we are making in establishing a foundation in ways such as network building.
Going forward, we are considering developing products for the ASEAN
region, as well as new businesses. In addition to raising our presence inAsia, we will work to turn the Overseas Business into a growth driver for
the Group under the next Medium-Term Management Plan.

Ryuji Arai
Senior Executive Officer
Division General Manager of Overseas Business Division andDivision General Manager of Global Procurement Division

What We Do
The Overseas Business primarily operates in three countries in the ASEAN
region: the Philippines, Vietnam and South Korea. We will continue to expand
our sales businesses as a pillar for sustained growth, a key element of
which will be working to strengthen our earnings base through the organic
coordination of our production base in Vietnam, our rental sales base in
the Philippines, and our operations in South Korea, which provide bothmanufacturing and sales functions.

Strengths• Adoption and deployment of domestic expertise and business models• Linkage among overseas Group companies• Track record of transactions with major local construction companies• Employment of local staff• Improved production capacity through factory expansion

development, period of population growth
Opportunities •• Economic
Active investment in infrastructure development• Diverse and talented human resourcesmanagement system issues
Weaknesses •• Business
Different perceptions of governance due to differences in habits
and customs• Marketing to attract new customers

Threats• The impact of the COVID-19 pandemic• Uncertain outlook for recovery of economic activity even after phased
removal of lockdowns• Prolonged travel restrictions• Local laws (related to taxation and accounting)• Public security, political climate

Results for the Fiscal Year Ended March 31, 2020
In the Overseas Business, net sales were ¥7,306 million, down 3.0% year on
year, and operating income was ¥410 million, up 1,583.8%.
In the solar-related business of Hory Korea Co., Ltd., overall profit margins
recovered substantially while sales declined due to the end of large-scale
projects with low profit margins. In the temporary equipment rental business inSouth Korea, we decided to forgo the investment in rental assets that we had
initially planned, due to the impact of the political and economic situation. In thePhilippines, where construction investment is brisk, we worked to strengthen
the foundations of the sales business by increasing the amount of rental assets
held, establishing a system for stable supply, and strengthening relationships withcustomers. In the temporary equipment sales business, intersegment sales haveincreased and the gross profit margin has improved due to the establishment of
stable, efficient production systems at HORY VIETNAM Co., Ltd. and Hory Korea.

30

Takamiya Co., Ltd.

Sales and Operating Income
n Sales (left scale) l Operating income (right scale)(¥ million)
8,000

6,000

7,535

7,306

5,832

In the ASEAN region, where economic development is extremely robust, we forecast
an increase in demand for public infrastructure improvements and anticipate further
market expansion. Under the current Medium-Term Management Plan, we have madeprogress in establishing a foundation for ensuring steady earnings while improving ourpresence in the ASEAN region through efforts including setting up a system for stablesupply with the aim of making the Overseas Business a globally competitive driverof growth in the coming era. In the manufacturing division, we completed the third
phase of expansion at the Vietnam factory in the fiscal year ended March 31, 2020,
which dramatically increased production capacity. This expansion made it possible tooptimize production lines in Japan, South Korea and all other Group manufacturingbases, enabling us to address demand in regions where the bases of our overseas
subsidiaries are located. In procurement, we will establish a system for offering
competitive products that includes procedures such as promoting cooperation with
suppliers in and outside Japan to reduce costs. We will also continue to conductpersonnel exchanges among overseas bases to strengthen collaboration.
To continue growing, it is important to steadily roll out the core system employedin Japan at overseas bases as well. Human resource development is equally critical.
In order to hire and cultivate the local human resources needed for management
positions, we will strengthen the human resource foundation by establishing a
global human resource development system that goes beyond the framework of theexisting Takamiya Group personnel system, as well as by devising new salary models
and incentives.
In the Philippines, DIMENSION-ALL, which the Company acquired in 2015,
has steadily expanded its market share. We forecast active investment in public
infrastructure and urban development in the Philippines, so we believe that thecountry will become a driver for the Overseas Business. In South Korea, in lightof recent economic conditions we opted for caution in our investment decisions,
including forgoing investment in rental assets. Going forward, we will continue tomonitor the local economic situation and strengthen our sales and marketing structure
to capture demand in South Korea by building alliances with major regional companies
and deploying new temporary equipment that incorporates the Takamiya Group’s
expertise through the rental and sales businesses.
We forecast a challenging business environment in the fiscal year ending March 31,
2021 due to the impact of the COVID-19 pandemic. Nonetheless, we will steadily promote
all possible measures. In the long term, we plan to grow the Overseas Business by actively
entering alliances and M&As with local enterprises to expand the business foundation andextend the scope of our operations outside of the ASEAN region. Our ultimate aim is build
a business that provides the majority of the Takamiya Group’s sales and earnings.

Close-Up(¥ million)
600

410

400

4,000

2,000

0

200

149

24

2018

2019

2020

(FY ended March 31)

0
San Juan Project

DIMENSION-ALL in use in projects

Increasing Our Presence in the Philippines
In the Philippines, DIMENSION-ALL gained considerable trust by completing
the San Juan Project, the longest and most challenging bridge civil engineering
project in the country’s history. The project was the first order received by thecompany following its acquisition by Takamiya. Since then, DIMENSION-ALL
has become a market leader in the Philippines in many civil engineering works
and infrastructure projects, and consistently receives orders in connection
with construction work related to government investment in infrastructure
construction and urban development.
In order to respond to this demand, we are solidifying our rental foundation whileworking to expand our sales business to meet demand for temporary equipment
in areas where projects are concentrated. Also, in order to fortify the business
management system, we will actively invest to expand the scope of business inways such as strengthening administration and introducing computer systems.

Annual Report 202031

Foundations for Value Creation

Human Resources
Basic Approach
At Takamiya, we conduct people-centered management under a Management Philosophy that views human resources as the essence ofcorporate strength. We recognize human resources as an exceedingly important management resource. Based on our Mission Statement of“Love,” we share this approach to human resources with the employees of all Group companies.
One of the basic policies of the current Medium-Term Management Plan is to strengthen management foundations. We will improve
corporate value through proactive investment in human resource development and work-style reform.

MissionStatement“Love”The Company’s Mission Statement is “Love.” It was conceived in 1975, six years after
the establishment of the Takamiya Group’s predecessor Shinkansai Co., Ltd. We havecontinued to uphold our Mission Statement for 45 years.
Our Mission Statement is the foundation of the Company’s approach to humanresources. It involves three aspects: “Love yourself” means taking on challenges
motivated by dreams and ambition, and seeking to improve ourselves. “Love others”
involves showing consideration for those around us and giving back to them through ourown growth. Finally, “Love the company” means thinking about how to contribute tosociety through the Company’s business. In other words, each employee’s independence
is linked in a chain of social contributions.
We share this approach with all Group employees, and incorporate it into theCompany’s corporate culture. We will build an organization that continues to grow bynurturing our Mission Statement of “Love.”

Human Resource Development
Promoting internal management personnel development projects
focused on mid-level and young employees
To survive in an era of accelerating change, a corporation must become an
indispensable presence by fitting into the social environment and meeting needs.
Our determination to take a lead in society through the anticipation of change
is incorporated in the theme of “Transformation” in the 2018 Medium-Term
Management Plan.
As the Group transforms its line of business and the nature of its business itself,
its operations are becoming more diverse, and tasks are changing. An example
would be the incorporation of AI and robotic process automation (RPA).
In making a transformation that exceeds the bounds of conventional change, it
becomes important to develop forward-looking human resources who can thinkbeyond conventional concepts and accepted ideas. To achieve the vision of theMedium-Term Management Plan, everyone from those in top management ranks
and administrative personnel to mid-level and young employees must take a forwardlooking approach to transformation.
Therefore, in addition to regular position-based training, in the fiscal year ended
March 31, 2020, the Group launched the Project Leader Conference to promotelearning of management concepts and a forward-looking approach to a crossdepartmental selection of mid-level and young employees who will be the leaders of
the next era. Under the President’s direction, two to three people were selectedfrom each division for a total of 20 mid-level and young employees. They proposed
projects for pursuing what they perceived to be issues of concern. We have justdetermined which projects to promote from among short-listed proposals andproposals from the President.
These projects involve learning management concepts while engaging fellow
employees from other departments in face-to-face talks with the President andproject members. Projects are extremely beneficial as opportunities for humanresource development and for increasing the motivation of participants.

Project Leader Conference
Sharing Economy Business
Development ProjectWorking to increase the market penetration of
the new sharing economy business through study
meetings for customers
New Product Development ProjectConducting development, prototype test builds, andmarketing tool development for hit products tofollow Iq System
Human Resource Development andWork-Style Reform Project
Formulating position-based human resource
development plans, promoting various measures
for work-style reform, and conducting checks andimprovements of personnel systems in general
Business Efficiency and Productivity
Improvement Project
Verifying work flows and implementing individual
policies for raising business efficiency throughinter-departmental cooperation

Developing Human Resources Capable of Working Overseas

Takamiya’s Diversity in Numbers

Human resource development is key for growing the Overseas Business. To
communicate with local businesses, in addition to foreign language ability, a greatamount of specialized knowledge is necessary, from an understanding of thebusiness to overall management. Furthermore, due to the fact that M&As andalliances with major overseas enterprises are necessary for speeding up overseas
business development, management skills are essential to achieving mutual
understanding with local staff and refining the administration system after companies
have been acquired. For that reason, we conduct practical on-the-job training fromthe new employee stage.
At many overseas companies, a results-oriented approach and diversity are
well-established. Takamiya’s Overseas Business Division also proactively conducts
mid-career hiring with an emphasis on skills, without regard for gender, age, or
nationality. Meanwhile, to promote loyalty to the Company, we provide a full rangeof education programs that match each individual so that employees can cultivate
a variety of skills over time. Also, we believe that it is important for employees
to take on challenges independently and without fear of failure. We create many
opportunities for them to take on such challenges. In particular, the Overseas
Business Division employees can build their own businesses, providing them witha sense of accomplishment. Through these training programs and the feeling ofaccomplishment that comes from building one’s own business, we will establish aframework that raises employees’ sense of belonging to the Company.

(As of March 31, 2020)

Promoting Diversity

Proportion of Male and Female Employees
MaleFemale

65.5%

34.5%

(445 men)(234 women)

Total

679

employees

Employee Age Distribution
60s

Under 20

0.7%

0.4%

(5 employees)(3 employees)

50s

20s

14.0%

30.3%

(95 employees)(206 employees)

Diversity Plan
The Group has launched a diversity plan that actively utilizes diverse human resources.
Our aim is to identify promising human resources and new approaches that will
improve our ability to address various social needs. In promoting this plan, it isimportant to maintain an environment that provides equal opportunities for diverse
individuals. By creating a framework for sharing in achievements, we will form a selfperpetuating organization that creates a competitive advantage for the Company.
The ratio of male to female Group employees is 7:3, and the ratio of domestic
to overseas employees is 7:3. In order to offer further opportunities for active
involvement by diverse human resources, it is imperative that we revise ourpersonnel systems to enable employees to evaluate their own achievements against
goals they have set for themselves. We have been using a system that includes
career enhancement through job rotation and assignment of positions to match
aptitude. This system increases employee motivation by allowing employees tochoose work that suits them. Also, we are broadening opportunities for female
employees by revising the system so that female employees who conventionally did
clerical work can request to change to planning positions. We established full-time
positions for employees who want to use their expertise in technical or development
positions, and amended the system in which employees can request a change
to an occupational field where they can develop their career without aiming for amanagerial position.

Total

679

employees
40s

30s

23.4%

31.1%

(159 employees)(211 employees)

Marital Status
SingleMarried

49.0%

51.0%

(333 employees)(346 employees)

Total

679

employees

Number of Children per Employee Household

Appointment of Overseas Employees
Because we have been stepping up business expansion overseas, the number ofoverseas employees has been increasing year by year. In the fiscal year ended March
31, 2019, we increased the number of staff members in manufacturing departments
in conjunction with the expansion of the factory in Vietnam. Regarding the rental
business in the Philippines, we have increased the number of staff members at
equipment centers in addition to increasing the volume of rental assets held locally,in order to capture opportunities for business expansion provided by local economic
policies and aggressive infrastructure improvement projects. We will continue striving
to expand our management level human resources in the ASEAN region.

4 children

5 children(2 households)(1 household)

0.8%

0.4%

3 children

1 child

13.1%

38.6%

(34 households)(100 households)

Total

259

households
2 children

Average 1.77 children
per household

47.1%(122 households)
Note: Excludes single-employee and otherhouseholds with no children

32

Takamiya Co., Ltd.

Annual Report 202033

Foundations for Value Creation

Comments from Employees Who Have Used the Systems

Work-Style Reform
Information Disclosure That Encourages Independence
In encouraging the independence of our employees, it is important to have a sharedvision. To achieve this, employees need to understand the situation inside and outside
the Company as well as their own position within the Company, and to be in synchwith the Company’s direction and vision.
Even if the vision is in place, it has no meaning if it has not been inculcated in
employees. Also, there are limits to what people can convey, so it is important tomaintain employees’ attention. The Company does this through proactive disclosurethat encourages employees to take notice of the situation and act autonomously.
Specifically, we disclose information in various ways, including the Company
newsletter and digital signage, and make use of the Company intranet and website.
The Company newsletter has taken root as a tool to explain the way top
management thinks, the Company’s direction, and the vision of the Medium-Term
Management Plan, as well as the circumstances that led to the plan’s establishment.
From an external perspective, using digital signage for disclosure has beenfavorably received by customers. Internally, the screen savers of employees’
personal computers constantly display relevant Company information.
Information disclosed includes clocking-off times and overtime for eachdepartment, average wage by age group, average age for management
appointments, and birth rates. Employees are becoming increasingly aware of
the status of their own department or section and their own positions by getting
to understand various circumstances in the Company and relevant data. We willcontinue to proactively disclose internal information and plan to implement policies
for increasing employee engagement.

Providing Diverse Work Styles
We changed our personnel systems in 2017, introducing a Career Path Selection/
Job Change System to allow employees to determine their own career paths andpromote personal growth. Career path changes are carried out once every two years,
and the number of applicants is increasing.
Regarding the paid leave system, we have established various systems to increase
the usage rate for annual paid vacation days. In 2011, we introduced “Refresh 10,”in which employees are eligible to take an extended vacation when the final digit of
their age is “0.” In 2014, we introduced “Refresh 5,” in which employees are eligible
to take a week-long vacation when the final digit of their age is “5.”Moreover, we have been promoting working at home for the child-rearing
generation and the technology integration team. We have also been encouraging
employees, particularly those in sales positions, to return directly home afterwork, and have experimented with flexible working hours. However, due to theimpact of the COVID-19 pandemic, we are now implementing these measures forall employees as a form of emergency response. Although we have been able tocontinue business relatively smoothly due to our established IT environment, wehave identified some issues needing attention in terms of our business continuity
plan (BCP). Going forward, we will further promote digital transformation (DX) andbusiness process innovation. In addition, we plan to study and move forward withmeasures such as working from home, flexible working hours and the establishmentof satellite offices. We will also introduce communication tools through which we
can share our vision and measure results, regardless of where employees work. As
for the way employees are evaluated, we must shift to a system that emphasizes
results such as improving efficiency or productivity rather than focusing on hours
worked or how earnestly tasks are executed.
Amid the COVID-19 pandemic, work-style reform is progressing rapidly in thecorporate world. Strange as it may seem, these trouble times present the best
chance so far to defy conventional thinking. Through trial and error, the Company will
promote work-style reform in which employees choose work styles that enable themto get the best results.

34

Takamiya Co., Ltd.

Participation in In-House Project
I participated in the Human Resource Development and Work-Style Reform Project,
one of the in-house Project Leader Conference projects that promote learning ofmanagement concepts and taking a forward-looking approach. I played a part in theNovember 2019 introduction of “casual day,” on which employees can wear casualclothing instead of business suits at the office
Under the theme of “women’s active participation in the workplace,” I am currently
working with my talented team members to conduct a survey aimed at understanding
women’s perception of their current status and identifying issues that they face.

Digital signboard disclosing Company
information internally

Achieving Diverse Work Styles

Average Age forManagement Appointments
Position

Average age forappointment

Section manager

39.7

Deputy general manager

46.6

General manager

45.7

Executive officer

46.8

Director

51.1

Average for all management
appointments

42.4

Yuki Sakauchi
Team Leader
Counting Section, Scaffolding System
Engineering Department

Average Overtime Worked(Hours per day)I gained experience in equipment center work, doing order receipt and placementin the Customer Service and Operating Support Section, and sales administration.
I now work in the Counting Section. At the start of the Job Change System, I changed
to a Generalist Career Path from a Specialist Career Path in administration on therecommendation of those around me. Since then, opportunities to discuss various
ideas and proposals for team improvement have increased. That made me think about
whether there was anything more I could do, and what would be necessary to givemy ideas concrete form. Also, since my commuting time is just under two hours andbecause I am considering the possibility of providing nursing care while continuing mycareer in the future, I am making use of the work-at-home system. During ordinary
times, I use the system one or twice a week, selecting days when I have a lot of work
to do. I feel that working at home is efficient for tasks that require concentration.
Employees working at home exclusively and those working reduced hours accountfor 40% of employees in the Counting Section. To avoid a large imbalance in duties
between employees who commute and those who do not, the Company has set up asystem for members nationwide that can be adjusted to provide employees working
at home with support. Working at home is expected to increase. We aim to leverage
our system from many angles to achieve a balance with producing results.

For the fiscal year ended March 31, 2020

1 hour 27 minutes
Career Path Selection/
Job Change System
Generalist Career Path
Aims to provide experience in a wide range of
positions and work locations and management
training at an early stage
Specialist Career Path
Aims to increase proficiency and specializedbusiness experience in a specific field, or highquality service closely related to a specific region
Specialist Career Path (Administrative)
Aims to increase proficiency and specializedbusiness experience in a specific field

Achieving Diverse Work Styles
I resigned from my duties as a specialist in administration, and reentered theCompany on a Generalist Career Path. Changing my career path helped me tounderstand the difficulty of being forward-looking in one’s work. However, when I
succeed, I am very happy. More women are changing jobs in the Company, and I feelthere are more opportunities for women to actively participate in the workplace.

Akiko Tamura
PR & IR Department

Use of the Paid Leave System
When I turned 30, I used the “Refresh 10” system to take a trip overseas. I used
to think that taking an extended vacation would cause trouble for one’s coworkers,
so going on an overseas vacation was not easy for company employees. However,Takamiya’s corporate culture places importance on a fulfilling personal life, and myseniors at the workplace were understanding and wished me well. Because I wasable to rest fully, I was motivated to get back to work and put in my best effort.

Using the Idea Proposal System
Takamiya employees from management on down are required to present threebusiness efficiency improvement ideas every month. Employees from aroundthe country compete over a one-year period, and rankings are announced at the
beginning of the next year. Those with superior ideas receive rewards in the form oftravel vouchers and paid leave. When people use my idea and the benefits manifest
as numerical results, it’s a great feeling. At the same time, the knowledge we gain
about other departments’ work through this system is useful in our own work, and I
don’t hesitate to apply it.

Annual Report 202035

Foundations for Value Creation

Environment and Society

Lift Climber: A mast climbing work platform that

Basic Approachprovides peace of mind

Through its business activities, Takamiya contributes to society and the environment under the themes of “Safety,” “Environment,” and“Workability.” Our products are used for environmental conservation in ways such as measures that minimize the impact of natural disasters
and infrastructure maintenance and improvement that extends the useful life of social capital. In addition to the high level of safety of our
products, their outstanding workability helps alleviate labor shortages at construction sites. We will continue to address social issues throughour business.

Takamiya’s Contributions to Society and the Environment through Its Business

Environment• Sales and rental of temporary equipment andenvironmental equipment to maintain and improve
infrastructure used to prevent damage from natural
disasters and for extension of the useful life of social
capital such as highways and railways

Current
state
Safety andWorkability• Sales and rental of products designed for safety in theconstruction industry

Backcasting to think ofstrategies for contributing tosociety through business• Sales and rental of highly workable products that address
the labor shortage in the construction industry caused
by a decreasing birthrate and aging of the population

Products That Contribute to Addressing Social Issues

Improvement of Safety and Workability
Iq System: Contributing to improvements in safety andefficiency in the construction industry
For approximately half a century, the height of scaffolding floors in Japan was
170 cm, in line with the average height of an adult male 50 to 60 years ago.
Because the average height has since grown to 172 cm, many workers must
crouch down while working with safety shoes and helmets on, leading to workrelated injuries and accidents.
By making the floor height 190 cm for Iq System next-generation scaffolding,we have secured a larger space that allows for working without crouching.
We have also improved safety by eliminating gaps at the feet. In addition, Iq
System is designed to be light-weight and compact when stored. This also
contributes to easing the severe shortage of drivers as transport requires fewer
trucks than in the past.

SPIDER PANEL: Addressing the maintenance andrepair needs of infrastructure
SPIDER PANEL is a panel-type hanging scaffolding that minimizes gaps andunevenness and improves safety and workability. Hanging scaffolding is installed
through suspension with chains, and plays an important role in the growing
volume of maintenance and repair work on infrastructure including railways andhighways. With maintenance and repair needs rising, and a shortage of workers
in the construction industry, supply cannot keep up with demand.
Takamiya will provide a working environment that helps construction workers
to perform their duties efficiently and safely and contribute to improvements inworksite productivity and safety.

36

Takamiya Co., Ltd.

Sustainable
society

This mast climbing work platform is essential for repairs on high floors, suchas during large-scale repair work on apartments. Lift Climber can be used atheights up to 210 m, and because the work platform moves along two pillars,
it ensures that sunlight reaches the building and helps to prevent crime.
Designed with worker safety in mind, Lift Climber is also easy to use at theworksite. Furthermore, it can be readily erected, disassembled and transported,which lowers total costs by shortening construction time.

Addressing Environmental Issues
G-Castle Series: Agricultural greenhouses withoutstanding weather resistance
The shortage of farmers is becoming a serious issue, and the national and local
governments are implementing assistance measures in response to the serious
challenge of food self-sufficiency. In addition, there have been many cases ofagricultural greenhouses being destroyed by disasters such as typhoons, with
farmers abandoning reconstruction work and quitting agriculture.
We are actively pursuing the development, manufacturing, design andconstruction of agricultural greenhouses to address these issues. In the fieldof agriculture, although progress has been made in intangible aspects such astechnological improvements, in tangible aspects, there is a shortage of suppliers
that provide low-priced greenhouses with outstanding structural design. We
are addressing this issue by taking advantage of the technologies and expertise
fostered through the development and manufacturing of construction-use
temporary equipment to provide one-stop services ranging from the supply tothe assembly of products with outstanding weather resistance. We will continue
contributing to the field of agriculture in various ways, including productivity
improvements that incorporate intangible measures such as environmental control.

Tiger Dam: Minimizing damage caused by storm surges and floods
In recent years, Japan has experienced substantial damage from frequent landslides
and floods, particularly those caused by heavy rains and typhoons. To prevent
such disasters, our Tiger Dam system replaces sandbags with easily fillable waterbags, significantly shortening the time required to take measures against flooding.
A strong dam can be erected simply by filling a tube with water. Dam length andheight can be adjusted by connecting to multiple 15-meter units horizontally andvertically. Set-up is simple, enabling a small number of people to take flood control
measures in a short time. Removal is also easy, involving draining water fromeach unit and folding. The product is reusable, making it environmentally friendly.

Oct-brace: Damping that supports ultra-high-rise to low-rise buildings
There has been growing demand for urban development and high-riseapartments in Japan, due in part to plans to host many large-scale events in thenear future. In addition, the frequent occurrence of earthquakes has focused
attention on damping and anti-seismic measures for buildings.
Oct-brace, our buckling constraint (damping) brace is a piece of structuralequipment that can be used as a brace that does not yield as well as for seismic
reinforcement for buildings such as logistics warehouses with large floor areas andmedium-, low- and high-rise buildings. Made of lightweight aluminum, Oct-bracedoes not require maintenance. In addition, because there are few bolts, it can beinstalled quickly, lowering construction costs while contributing to the establishmentof safe urban development by resolving issues related to seismic reinforcement.

Annual Report 202037

Foundations for Value Creation

Corporate GovernanceStatus of Members of the Board and Corporate Auditors(As of June 25, 2020. Figures on the meeting attendance and attendance rate are for the fiscal year ended March 31, 2020.)

Basic Approach
Takamiya Group believes that the basic foundation for sound corporate governance involves thoroughly enforcing compliance, ensuring
the transparency and efficiency of management, and working to maximize corporate value for all stakeholders, including shareholders
and investors.
We will establish a temporary equipment industry that is clearly recognized as sound by the general public and investors and achieve
perpetual development within a highly transparent business environment by pursuing high-quality corporate activities centered on thestable supply of safe and high-added-value temporary equipment. We will also implement efforts to improve the position of our industry forthe interests of our users and the entire industry, in addition to the Group’s development.

Takamiya’s Corporate Governance System

Factors such as expertise in management, sales andmarketing, technology, overseas business, finance andaccounting, and law, as well as differing backgrounds andexperience, were taken into consideration when selecting theBoard of Directors’ members.
In addition, two Independent Outside Directors andtwo Independent Outside Corporate Auditors are always
in attendance at meetings of the Board of Directors.
A structure is in place that allows for honest opinions,advice, and comments from an independent and objective
perspective regarding management matters, in addition toimportant matters related to nomination and remuneration.
As such, the transparency and objectivity of the Company’s
Board of Directors are ensured. However, gender diversity
is insufficient. We recognize finding and selecting theappropriate individuals for positions is an issue for us. We willconsider an effective governance structure from all aspects tofurther strengthen transparency and objectivity going forward.

The Company has in place a system under which the Board of
Directors, which includes Outside Directors, provides strategic
guidance and management supervision and a Board of Corporate
Auditors, whose members, including Outside Auditors, audit
Directors’ execution of duties by attending and giving theiropinions at various important meetings, such as those of theBoard of Directors and the Board of Executive Officers. The
Company has also introduced an Executive Officer system
under which Executive Officers are appointed separatelyfrom Directors, who are elected in accordance with Japan’sCompanies Act. While the Board of Directors makes decisions
on important managerial matters and supervises Directors’
execution of duties, having Outside Directors enables theinclusion of diverse points of view in decision-making.
The Company's Board of Directors consists of eight
Directors of outstanding character, possessing insight,
capabilities, abundant experience and high ethical standards.

Structure of the Board of Directors
Name

Current Positions

Board of Directors
Meeting Attendance/
Attendance Rate

Expertise

Reason for Appointment

Kazumasa
Takamiya

Representative Director,
President and Chairman

17 times/100%

Management

Has led the Group with experience and a high level of knowledge related tocorporate management and strong leadership

AkiyoshiTakamiya

Representative Director,
Executive Vice President, Supervisor of
Product Development Division, Sales &Marketing Division

17 times/100%

Management
and sales andmarketing

Is well acquainted with the Group’s overall business operations andmanagement, particularly in the Sales & Marketing Division

Hideki
YasudaDirector and Managing Executive Officer
Division General Manager of Business
Management Division

17 times/100%

Finance andaccounting

Has abundant experience and extensive knowledge in administration,
particularly in finance and accounting

Tsutomu
Abe

Director and Executive Officer
Division General Manager of Sales &Marketing Division

17 times/100%

Sales andmarketingHas abundant experience in the construction-use temporary equipment
industry and extensive knowledge related to sales and marketing in general

Director
Supervisor of Overseas Business Division,
Business Development Division,
Global Procurement Division

15 times/88%

Overseas
operations,management andnew business

Has abundant overseas management experience including serving as therepresentative of an overseas subsidiary, and is well acquainted with new
business development

17 times/100%

Management,
finance, overseas Has abundant management experience at financial institutions, experience
operations,in international business, and management experience at a manufacturing
manufacturingsubsidiary, and is well acquainted with the Company’s manufacturing departments
and quality control

Yuki
Mukaiyama
Yasunori
Nishioka

Director and Executive Officer
Division General Manager of
Manufacturing Division
Supervisor of Scaffolding Quality
Assurance Division

Kouji
ShimokawaDirector
OutsideNoboruFuruichiDirector
OutsideTaxes andaccounting

17 times/100%

Independent

Has been responsible for a wide range of financial advisory operations at
Financing, finance securities firms for many years, and has advanced management decisionand management making capabilities, and abundant experience and knowledge that weredeemed to be useful in the Company’s management

16 times/94%

Independent

Is qualified as a tax accountant and has abundant experience and extensive
knowledge from many years of involvement in managerial accounting thatwere deemed to be useful in the Company’s management

Structure of the Board of Corporate Auditors
Corporate Governance System (As of March 31,2020)
General Meeting of Shareholders

Management and decision-making
Appointment/Dismissal

Board of Directors

Internal Audit Office

ReportInternal auditing

Appointment/Dismissal

Accounting Auditor

Appointment/Dismissal

Board of Directors
Number of members(Outside Directors)

8 (2)Independent Directors

Number of meetings
Ordinary: 12 Extraordinary: 5
Attendance rates
Directors Corporate Auditors

98%

94%

The Board of Directors is comprised of Representative Director,
President and Chairman Kazumasa Takamiya, five Inside Directors
and two Outside Directors, for a total of eight members, withterms of office of one year in order to ensure flexible, responsive
corporate management. In addition to the monthly regularmeeting of the Board of Directors, extraordinary meetings areheld when necessary. In addition to making decisions on mattersspecified by laws and regulations and important matters involving
management, the Board of Directors monitors the execution ofmanagement duties on an unscheduled basis.

38

Takamiya Co., Ltd.

Audit

Accounting audit

Board of Corporate Auditors
Number of members(Outside Auditors)

3 (2)Yasushi
Shimizu

Board of Directors
Meeting Attendance/
Attendance Rate

Board of Corporate
Auditors Meeting
Attendance/
Attendance Rate

Director—
Note: Appointed in June 2020

Supervision

Business Division
Cooperation

Cooperation
Cooperation

Representative
Directors
Supervision

Audit

Board of Corporate
Auditors

Cooperation

Current
Position

Selection/Dismissal/Supervision
ReportInstruction

Name

Business execution

Yoshihiro
Sakatani

Affiliated Subsidiaries

Independent Corporate Auditors

Number of meetings
Ordinary: 12 Extraordinary: 2
Attendance rate
Corporate Auditors

90%

The Board of Corporate Auditors is comprised of one fulltime Corporate Auditor and two part-time Corporate Auditors
for a total of three members, and meets once a month, inprinciple. In accordance with the policies determined by the
Board of Corporate Auditors, the Corporate Auditors audit the
Directors’ execution of business duties by attending various
important meetings such as those of the Board of Directors,
inspecting important documents and investigating businessaffairs and asset conditions.

Teiji
Joko

Corporate
AuditorOutsideOutsideReason for Appointment

Served as a member of the Finance & Accounting Department of the Company from April 1989
to March 2006. Has supervised information management systems of the entire Group, suchas the establishment of the Group’s core system, improvement of business operations and IT
Information
control from April 2006 up to the present as a General Manager of IT System Department, issystems
well versed in the Group’s overall business operations, and has sufficient qualifications as a
Corporate Auditor in the present day when information systems account for a significant part ofinternal control. Accordingly, the Company has appointed him as a Corporate Auditor.

16 times/94%

13 times/93%

Financeandaccounting

Is qualified as a certified public accountant, has considerable knowledge of corporate financeand accounting, and can provide advice on the Company’s management from the perspectiveof finance and accounting, as appropriate, which will contribute to the soundness of theCompany’s accounting.

15 times/88%

11 times/79%

Law

Is qualified as a lawyer and can be expected to perform objective and neutral audits fromthe perspective of compliance. It was deemed he would appropriately fulfill his duties as an
Independent Corporate Auditor.

Independent

Corporate
AuditorExpertise

Independent

Criteria for the Appointment of Directors and Corporate Auditors
The appointment and dismissal of candidates for Directors andCorporate Auditors are determined by a meeting of the Board of
Directors with Independent Outside Directors and Independent
Outside Corporate Auditors in attendance, based on relevant
regulations including the Regulations for Professional Organizationof Officers. Comprehensive consideration is given to the career
history, track record, knowledge, experience and capabilities of eachcandidate. Furthermore, the opinions of Outside Officers are requested
in advance when necessary, and the Board of Corporate Auditors’
consent is obtained in advance for the appointment of Corporate
Auditor candidates.
Selection Criteria
1. Directors
The basic requirements for Director candidates are having outstanding characterand insight, as well as being such individuals as will contribute to the growth andimprovement in the corporate value of the Company and the Group. The candidates
must have high levels of knowledge and judgment capabilities in each business field.
Outside Director candidates are required to have a high level of expertise in a fieldsuch as taxation, accounting, law or management. They must be able to actively state
opinions from an objective and external viewpoint, reflecting a diverse background.
2. Corporate Auditors
The basic requirements for Corporate Auditor candidates are having high ethicalstandards and objective, fair and impartial judgment capabilities. The candidates mustalso have the appropriate experience and capabilities as Corporate Auditors and ahigh level of expertise in a field such as taxation, accounting, law or management. In
addition to the above requirements, Outside Corporate Auditors are required to have noconflicts regarding their independence.
For the dismissal of Officers, if an Officer has deviated from the above appointment
criteria and his or her dismissal has been objectively deemed appropriate, a resolution
shall be made at a meeting of the Board of Directors with Independent Outside
Directors and Independent Outside Corporate Auditors in attendance, after sufficient
discussions have been held.
Annual Report 202039

Foundations for Value Creation

Remuneration for Directors and Corporate
Auditors

Appointment and Dismissal of the Chief Executive Officer
The Company has not established voluntary advisory committees
or set any uniform standards on the appointment and evaluation
regarding the appointment and dismissal of the President,
who is the Chief Executive Officer. However, if it has been
objectively deemed that dismissal would be appropriate in
the case of a violation of laws, regulations, or the articles ofincorporation, or a significant degradation of the Company’s
corporate value, a resolution shall be made at a meeting of
the Board of Directors with Independent Outside Officers inattendance, after sufficient discussions have been held.

The remuneration of Directors consists of basic remunerationaccording to their position, performance-linked remuneration(bonuses) as a short-term incentive linked to single-year
performance, and stock-based remuneration stock options
positioned as a medium- to long-term incentive.
The remuneration of Outside Officers consists only ofbasic remuneration from the perspective of their roles
and independence. The fixed remuneration of Directors isdetermined by the Board of Directors within the limit of total
remuneration provided for in a resolution by the General
Meeting of Shareholders. The remuneration is based on thepresentation of a payment proposal by the Representative
Director and President to the Board of Directors. He or she
prepares the proposal by extensively considering factors
including each Director’s position, the evaluation on theperformance of duties, and the performance of the Company. Heor she also seeks advice from Independent Outside Directors.
For bonuses that are short-term, performance-linked
remuneration, a proposal on the total payment amount is
submitted to the General Meeting of Shareholders if thesingle-year consolidated operating income target is achieved.
Bonuses are determined and paid within the total payment
amount provided for in the resolution. The remuneration
amount for each Director is at the discretion of theRepresentative Director and President.
For stock-based remuneration stock options, which are a
medium- to long-term incentive, within the limit of total stock
options provided for in a resolution by the General Meetingof Shareholders, a proposal for granting stock options basedon the position factor set in the Company’s regulations is
submitted to the Board of Directors, which determines andgrants the stock options.

The Company does not currently have a specific plan forsuccessors for positions such as the Chief Executive Officer.
However, we recognize succession planning as an importantmanagement issue and we are nurturing candidates from the
management team (Directors and Executive Officers). We
will continue to engage in constructive discussions on theapproach to the appropriate implementation and supervisionof succession planning at Board of Directors meetings.

Evaluations of the Effectiveness of the Boardof Directors
Since the fiscal year ended March 31, 2018, the Company has
conducted questionnaires with Directors and Corporate Auditors
regarding the effectiveness of the Board of Directors. Analyses
and evaluations on the structure and operations of the Board of
Directors and the role of Board of Directors were also conducted
to determine management strategy and supervisory function.
In the fiscal year ended March 31, 2020, the Board of Directors
raised points for improvement, such as the necessity to further
enhance discussions between departments, but it was judgedthat the Board has largely maintained its effectiveness. We
will further improve the effectiveness of the Board of Directors
based on these analyses and evaluations going forward.

For the fiscal year ended March 31, 2020, remuneration for Directors and Corporate Auditors was as follows:

Directors(excluding Outside Directors)

Corporate Auditors(excluding Outside Corporate Auditors)

Outside Officers

Total Remuneration by Type (¥ thousand)Total Remuneration(¥ thousand)Fixed Remuneration

Performance-BasedRemuneration

Medium- to Long-Term
Incentive (Stock Options)

Number of Eligible
Individuals(Persons)

232,693

202,596

3,750

26,3478

10,000

9,600

400

0

1

13,56013,560004Notes:
1. With regard to the remuneration of Directors who concurrently hold an executive position at a consolidated subsidiary, executive remuneration from the consolidated
subsidiary is not included.
2. It was resolved that the limit on Directors’ remuneration shall be up to an annual amount of ¥500 million (though not including the employee salary for Directors) at the49th Ordinary General Meeting of Shareholders held on June 28, 2017 (number of Officers in relation to the said resolution: 10).
In addition, it was resolved that the limit on separate remuneration as stock options shall be up to an annual amount of ¥150 million at the 43rd Ordinary General Meetingof Shareholders held on June 29, 2011 (number of Officers in relation to the said resolution: 5).
3. It was resolved that the limit on Corporate Auditors’ remuneration shall be up to an annual amount of ¥50 million at the 25th Ordinary General Meeting of Shareholders
held on May 18, 1994. The remuneration amount for each Corporate Auditor is determined through discussions by the Corporate Auditors (number of Officers in relation
to the said resolution: 3).
4. The above includes the remuneration for two Directors who retired on June 26, 2019.

40

Takamiya Co., Ltd.

For the fiscal year ended March 31, 2020, audit fees paid to certified public accountants and others were as follows:

Remuneration System for Directors and Corporate
Auditors

Succession Plan

Category

Details of Audit Fees, etc.
Fiscal Year Ended March 31, 2019
Category

Fiscal Year Ended March 31, 2020

Fees Paid for Audit Certification
Work (¥ thousand)Fees Paid for Non-Audit
Certification Work (¥ thousand)Fees Paid for Audit Certification
Work (¥ thousand)Fees Paid for Non-Audit
Certification Work (¥ thousand)

32,000—32,000

1,700

—

—

—

—

32,000—32,0001,700

The Company
Consolidated subsidiaries
Total

For the fiscal year ended March 31, 2020, fees paid to Ernst & Young member firms, which are members of the same network of
the Company’s certified public accountants, was as follows:
Fiscal Year Ended March 31, 2019
Category

Fees Paid for Audit Certification
Work (¥ thousand)Fiscal Year Ended March 31, 2020

Fees Paid for Non-Audit
Certification Work (¥ thousand)Fees Paid for Audit Certification
Work (¥ thousand)Fees Paid for Non-Audit
Certification Work (¥ thousand)

—

714

—

612

Consolidated subsidiaries

4,771

1,092

4,935

4,027

Total

4,771

1,806

4,935

4,639

The Company

The audit certification work for which the Company paid fees entailed tax consultation. The non-audit certification work for which the consolidated subsidiaries paid fees entailed
preparation of corporate tax returns and consultation and others.

Communications with Shareholders andInvestors
We endeavor to provide shareholders and investors withtimely information in a transparent, fair and consistent manner.
As well as striving to disclose information in accordancewith appropriate disclosure regulations, we work proactively
to disclose information that is effective in fostering a better
understanding of the Company.
We aim to expand the number of shareholders and investors
and are attempting to increase their understanding of our
For Individual Investors

business activities, strategies and performance through directcommunications. Specifically, we hold meetings and financial
results briefings with analysts and institutional investors, aswell as make our financial results briefing videos and materials
available to the public. Moreover, we release the videos andmaterials of our financial results briefing to the public in Japaneseand English. We also publish our convocation notices in Japaneseand English on the Internet, and hold thorough briefing sessions
for individual investors. Our main investor relations activities
in the fiscal year ended March 31, 2020 were as follows.

For Analysts and Institutional

IR Website

Briefings for individual investors: Six times(Total participants: Approximately 300)

Financial results briefings: Two times (Year-end video
streaming and end of the second quarter)
One-on-one meetings: 90

https://www.takamiya.co/en/ir/

We hold regular briefings at the Security Analysts
Association of Japan as well as at branchesof securities companies, with our Officers as
speakers. Our IR website indicates the timing of thisdisclosure.

At our semi-annual results briefings, the President andChairman and other Company Officers summarize our
performance and provide earnings forecasts. Materials andvideos are available on our IR website.

To ensure the timeliness and fairness of 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 help
further understanding of our business and strategy.

Risk Management, Internal Control andCompliance
The Basic Rules for Risk Management stipulate the basic
policy and other matters concerning risk management. In
addition, we have established the Risk and Compliance
Committee, with the General Affairs Department acting as
the administrative office. The Committee discusses issues
and measures regarding the promotion of Company-wide risk
management in order to appropriately manage and respond tothe variety of risks that surround our businesses.
For internal control, we have developed a system in whichinternal checking operates between departments and clarifies
the division of duties by establishing internal regulations andother rules. In addition, the Basic Policy for Internal Control
and the Basic Policy for Financial Reporting outline systems toensure that the Directors comply with laws and the articles ofincorporation when conducting operations, and also to ensure
proper operations of the Company.
For compliance, we have outlined the ComplianceStandards and the Code of Conduct in the Compliance
Manual. We have established the Risk and Compliance
Committee, with the General Affairs Department acting as theadministrative office, to discuss specific compliance initiatives
to implement internally and to identify at early stages legal
issues emerging in the Company. Through these efforts, we
aim to further raise and promote compliance awareness,
especially concerning legal issues. Additionally, we seek
advice and guidance as needed from our corporate lawyers
regarding our daily operations and managerial decisions.

Annual Report 202041

Foundations for Value Creation

Messages from the Outside Directors

Directors, Corporate Auditors and Executive Officers (As of June 25, 2020)
Directors

Kouji Shimokawa Outside Director (Independent)
Refining Management Judgment to Increase the Speed of Growth
The theme of the Company’s current MediumTerm Management Plan is “Transformation.”
The aim of transformation is to create resilientbusiness foundations that can readily respond tochanges in customer needs that go hand in handwith changes in society. Strong managementfoundations are indispensable for continuing
corporate growth in all situations. Althoughachieving such a system is difficult, the Company
is making steady progress.
Given that the impetus of change is growing
rapidly, it is necessary to further increase thespeed of management’s response to this change.
Also, bold and quick decision making is neededin every area, and I believe that the current
management team is capable of such action.
However, while it has the capacity to promote
important policies and deliver results, I believe
there is room for improvement in management

and verification through quantitative evaluationfrom a detailed financial perspective.
The Company’s Directors conduct supervisionand execute duties concurrently. In the present
situation where the Company is undergoing amajor transformation, the Directors’ effectivenessis clear, but as a consequence, Directors tend toslightly overemphasize the execution of duties.
Having supervised the Company for many years
from an objective standpoint, I will continue toencourage vigorous discussions among membersof the Board of Directors based on detailed
management verification, while performing theduties of cultivating the top managers who will
be responsible for the next era, and creating asystem for doing so. I hope that top management
will continue to carry out high-level managementthat is forceful yet flexible and constantly work to
improve both corporate and shareholder value.

Noboru Furuichi Outside Director (Independent)

Kazumasa Takamiya

Akiyoshi Takamiya

Hideki Yasuda

Tsutomu Abe

Representative Director, President andChairman
Supervisor of Scaffolding Management
Division

Representative Director, Executive
Vice President
Supervisor of Product Development
Division, Sales & Marketing Division

Director and Managing Executive Officer
Division General Manager of Business
Management Division
General Manager of Corporate Planning
Department

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

Yuki Mukaiyama

Yasunori Nishioka

Kouji Shimokawa

Noboru Furuichi

Director
Supervisor of Overseas Business
Division, Business Development
Division, Global Procurement Division

Director and Executive Officer
Division General Manager of
Manufacturing Division
Supervisor of Scaffolding Quality
Assurance Division

Director

OutsideIndependent
Important concurrent positions:Representative Partner of Shimokawa &Partners Accounting Corporation
Chairman of the Board of GLOBALCORPORATE CONSULTING, INC.

Director

42

Takamiya Co., Ltd.

I will use all available networks to strengthen
the Company’s sales force through new marketingstrategies and channel development. I will also
work to increase the effectiveness and improvethe dynamics of the Board of Directors byenergizing Board meetings and clearly expressing
the various opinions of stakeholders. Furthermore,
I will endeavor to contribute to the Company’s
evolution into a corporation that society deems
even more necessary.
To achieve these things, I aim to be an Outside
Director that honestly and sincerely conveys
advice and opinions to top management.

Independent

Corporate Auditors

Yasushi Shimizu

Yoshihiro Sakatani

Teiji Joko

Corporate Auditor

Corporate Auditor

OutsideIndependent
Important concurrent positions:
President and Representative Director of Japan
Management Consulting K.K.
Director of Pressance Corporation Co., Ltd. (Audit
Committee Member)
Director of Watts Co., Ltd. (Audit Committee Member)
Director of SHO-BI Corporation (Audit Committee
Member)Corporate Auditor

Energizing the Board of Directors to Respond to Change
Currently, there is no end in sight to the COVID-19
pandemic. In such an environment, people’svalues are changing drastically. Work-style reform
is one example. More important, however, is theclarification of what is truly necessary to society.
The fiscal year ending March 31, 2021 is
the final year of the current Medium-Term
Management Plan. In order to achieve its goals,
the Company is working on several measures.
The vision set forth in the plan is “Create
new value through transformation and aim tobecome a corporate group that drives qualitative
development of the industry.” Amid majorchanges in society’s values, we must transformto survive.

OutsideOutsideIndependent
Important concurrent positions:
Corporate Auditor of G-7 HOLDINGS INC.
Corporate Auditor of Onamba Co., Ltd.

Note:
Kouji Shimokawa and Noboru
Furuichi are Outside Directors.
Yoshihiro Sakatani and Teiji Joko
are Outside Corporate Auditors.
The Company designated thesefour as Independent Directors
and Independent Corporate
Auditors pursuant to theregulations of the Tokyo Stock
Exchange and registered themas such at the stock exchange.

Executive Officers
Kazunori Kawakami

Takahiro Shozaki

Takashi Masuno

Ryuji Arai

Senior Executive Officer
Deputy Division General Manager Sales & Marketing
Division, General Manager of Scaffolding
Construction Department

Senior Executive Officer
General Manager of Sales & Marketing
Planning Department, Sales & Marketing
Division

Senior Executive Officer
Division General Manager of Scaffolding
Quality Assurance Division

Senior Executive Officer
Division General Manager of Overseas
Business Division and Division General
Manager of Global Procurement Division

Hidehiko Yamashita

Hideo Kato

Tetsuya Aoki

Mitsunori Yamato

Executive Officer
General Manager of Sales Department,
Sales & Marketing Division

Executive Officer
Tokyo Branch General Manager,
Sales & Marketing Division

Executive Officer
Division General Manager of Business
Development Division

Executive Officer
Division General Manager of Scaffolding
Management Division and General Manager
of Scaffolding Purchasing Department

Takashi Nagumo

Hiroshi Koda

Koichi Nishihashi

Tomoya Tatsumi

Executive Officer
Division General Manager of ProductDevelopment Division and Manager of
Building Material Design Section

Executive Officer
General Manager of Manufacturing Division
and Vietnam Factory General Manager

Executive Officer
General Manager of General Affairs
Department, Business Management Division

Executive Officer
General Manager of Finance & Accounting
Department, Business Management
Division and Manager of Finance Section

Annual Report 202043

Data Section

Our Main Products

Corporate Information

Temporary Equipment

Corporate Outline (As of March 31, 2020)
Name

Takamiya Co., Ltd.

Capital¥1,050,110,000

Date of establishment

June 21, 1969

Representative

Kazumasa Takamiya,
Representative Director, President and Chairman

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

Number of employees

Consolidated
1,298
Non-consolidated 679

Share Information (As of March 31, 2020)
Share Data
YT Lock System

VMAX

G Walk

Dimple Post X

Can be erected along slopes and also
used as a gantry.

Hanging-type scaffolding with highworkability that is used for bridge repair.

A catwalk panel with fewer gaps toprevent stumbling and falling objects.

Protects the safety and lives of workers
while they are under the beams for work
including steel construction and ridge
beam operations. It is lightweight andeasy to carry.

Breakdown of Shares by Type of Shareholder

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

Standing Bear

Power Frame

AL-SPEEDER

Bolted fastening-type metal fittings
that are important parts of temporary
equipment.

Enables safe assembly and disassemblyand significant labor-saving, withstructures that include lifting equipment,
baseboards and handrails as one unit.

Wedge-type support system that fits
to the shape of a structure in a flexible
manner.

Equipment made from light-weight
aluminum, which improves workability,
so it can be used for any type ofscaffolding and can be piled up.

Formwork

Building Materials

Foreign institutions and others

Financial instruments firms

6.85%

0.66%

3,190 thousand shares

305 thousand shares

Principal Shareholders
Percentage ofshares held(%)

Number ofshares held(Thousand shares)

Shareholders

Clamps144,000,000
46,577,000
4,092

Takamiya Ltd
Tojitsu Takamiya
Japan Trustee Services Bank Ltd. (Trust account)
Akiyoshi Takamiya
Takamiya Employee Stock Ownership Plan
Toyoji Takamiya
Chikako Takamiya
Kazumasa Takamiya
The Master Trust Bank of Japan, Ltd. (Trust account)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

6,945
5,356
4,638
2,288
2,111
1,678
1,579
1,350
1,345
907

14.91
11.50
9.96
4.91
4.53
3.60
3.39
2.90
2.89
1.95

Other Japanesecompanies

Individuals
and others

20.78%

48.92%

9,678
thousand shares

22,787thousand shares

Financial institutions

22.78%
10,607 thousand shares
Notes:
1. The Company holds 7,020 shares of treasury stock. Treasury stock is excluded fromthe above.
2. Percentages have been rounded to the second decimal place.

Notes:
1. The Company holds 7,020 shares of treasury stock. Treasury stock is excluded
from the list of major shareholders and is not used in calculating percentages ofshares held.
2. Percentages have been rounded to the second decimal place.
3. Among above numbers of shares held, shares related to trust services are as follows.
Japan Trustee Services Bank, Ltd. (Trust Account) 4,619,100 shares
The Master Trust Bank of Japan, Ltd. (Trust account) 1,334,200 shares

Stock Prices and Trading Volume
Stock price (¥)
900

BENKEI (Stainless steel column formwork)

Cap Ring Pile Method

WUTEC

Oct-brace

Column formwork using stainless steel
face plates. Improves diversion rate, andenables fast assembly and formwork
removal, as well as construction with asmall number of people.

Method that enables correspondence
to large-scale ground deformation due
to earthquakes and reduces damages
to piles.

Seismic damper enabling reduction ofvibration range of buildings up to 80%.

Structural device with a seismic
damping function that can be used forbuildings of any height, from high-risebuildings to low-rise structures.

Environmental Equipment

44

600

6,000

300

3,000

0

4

5

6

7

8

2017

9

10 11 12

1

2

3

4

5

6

7

2018

8

9

10 11 12

1

2

3

4

5

6

7

2019

8

9

10 11 12

1

2

2020

3

0

Shareholder Information

Agricultural Materials

ECHO BARRIER

H2 System

Steel Frame House Pro II

Weather-Resistant Pipe House

Soundproof sheets that reduce noise
by absorbing sound. They are used
to soundproof school and hospital
facilities.

This method, in which solar modules
are supported by a single line of H-steel
piles, reduces the amount of frame
materials.

A high-eave, steel-frame Dutch lightgreenhouse suitable for high-wiremethod crops and perfect for large-scalecultivation.

This agricultural greenhouse does notdeform easily under harsh conditions
caused by natural disasters.

Takamiya Co., Ltd.

Trading volume (1,000 shares)
9,000

Fiscal Year
Securities CodeOrdinary General Meeting of Shareholders

From April 1 to March 31 of the following year
2445 (the First Section of the Tokyo Stock Exchange)
June

Record Date

Ordinary General Meeting of Shareholders: March 31
Year-end dividend: March 31 / 2nd quarter-end dividend: September 30

Share Trading Unit
Transfer Agent and Registrar for Common Stock

100 shares
Mitsubishi UFJ Trust and Banking Corporation

Contact for Transfer Agent and Registrar

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 in Japan)

Method of Public Notice

By electronic notification on Takamiya’s website: https://www.takamiya.co/
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.

Annual Report 202045