TAKAMIYA Report 2021
Fiscal Year Ended March 31, 2021

CONTENTS

03

11

Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

The Mission Statement “Love” is our driving force.
We introduce the history we have walked throughand businesses we have developed guided by“Love.”We explain our strategy on how we will provide
value to society over the medium to long term,
and initiatives to lay the groundwork forsustainable growth.

Knowing Takamiya First-Hand

Introduction

Takamiya’s Value Creation Story

Mission Statement

03

Message from the President

11Management Philosophy

04

Takamiya’s Value Creation Process

17

Takamiya’s History

05

Business Environment and Risks & Opportunities

19

Businesses Developed

07

Takamiya’s Business Model

21

Financial and Non-Financial Highlights

09

New Medium-Term Management Plan

23

Message from the Chief Financial Officer

29

Source of Sustainability

31

35

41

Business Strategies

Foundations for Value Creation

We explain operating results, strategies, and topics

We explain our corporate

by business in the past year.

governance system.

Business Strategies

My heart goes out to the victims of COVID-19 andtheir loved ones. I also pray for the earliest
recovery and relief of those who are suffering or
facing adversity due to the disease, and would liketo express my deep gratitude and respect for the
medical professionals who are on the front lines
fighting to contain this pandemic.
Since the outbreak of COVID-19, our lifestyles
have changed dramatically. Corporations need their
management to respond flexibly to changes in theexternal environment. To date, Takamiya Co., Ltd.
( t h e “ C o m p a ny ” ) a n d i t s s u b s i d i a r i e s ( t h e“Takamiya Group” or the “Group”) has weathered
many storms in the form of major changes in thebusiness environment by transforming itself. We
recently announced the 2021 Medium-Term
Management Plan, which is the epitome of change,
including basic policies not only to build a stocktype (commission-based) business model that is
unaffected by the external environment and tocreate new profit-generating businesses, but also
to institute reform in every aspect, such asorganizational structure and workstyles. These
policies will complete the transformation of thecorporate group.
I hope that through this TAKAMIYA Report, we
will be able to share the direction that the Groupwill be moving in and the future that it hasenvisaged.

Kazumasa Takamiya
Representative Director, President and Chairman

Editorial Policy

Foundations for Value Creation

Sales Business

35

Corporate Governance41

Rental Business37

Messages from the Outside Directors

45

Overseas Business39

Directors, Corporate Auditors and Executive Officers

46

The content of this report ranges from the Takamiya Group’s history to its strategy for medium- to long-term value creation, the path to achieving its mission
and vision, and financial and non-financial information. Our aim is to provide all stakeholders, in particular shareholders and investors, with a better
understanding of the Takamiya Group.
We hope this report will help you deepen your understanding of the Takamiya Group, which is transforming into a new corporate group, with “Love” set as
the Mission Statement.
We will continue to disclose information in an easy-to-understand manner, reflecting the opinions and requests of various stakeholders.

Note regarding Forward-Looking Statements

Financial Information
11-Year Financial Summary

The performance forecasts and other forward-looking statementsin this report are assumptions made by the Company based on
information available at the time of publication, and involve inherent
risks, uncertainties, and various other factors that could cause
actual results to differ materially from forecasts herein.

Corporate and Share Information
47

Corporate Information / Share Information

49

Domestic and International Network

50
Scope and Period Covered
This report is a collection of information that is highly relevant to
the Takamiya Group. It covers the fiscal year ended March 31, 2021
(from April 1, 2020 to March 31, 2021) unless specified otherwise,
and also includes information on subsequent periods (on and after
April 1, 2021) for latest updates.

01

TAKAMIYA Report 2021

Map of Disclosure Tools
Websitefor Investors

Websiteon Corporate
Information

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

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

Our Approach to ESG

Annual Securities Report
Result Briefing Materials

TAKAMIYA
ReportTakamiya in a Nutshell

Historical Data

Corporate Governance
ReportFinancial Information

Non-financial Information

TAKAMIYA Report 202102

Knowing Takamiya First-Hand
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

MissionStatement

Foundations for Value Creation

Financial Information

Corporate and Share Information

Management
Philosophy

Love yourself
From birth, we have all been given our own life to live.
It is only natural that we seek to keep on improving ourselves, to be better
tomorrow than we are today. We need to be disciplined, and we need to be
humble; we need to remember that even those things we regard as
everyday events are in fact precious and can be experienced only once.

Love others
Love starts with showing consideration for our family–our parents, ourbrothers and sisters. Loving others means showing consideration for ourfriends, our neighbors, and all the people of the world, and wishing foreach other’s happiness.

Love the company
Companies are an innate part of the local community. We are grateful to thecommunity, the country, and the world in which we were raised, and we do ourbest to give back to each of these however we can.
Groups naturally form wherever people gather.
This world in which we live is constantly on the move, driven by the complex

The company is one such group. Through the company, we give back to theintertwining of national economies and the business activities of countlesscommunity, the country, and the world. This is what it means to love thecompanies.

company.

Individual companies are made up of the untiring endeavors of their members.
What motivates people?
Their own ambitions. Consideration for their families.
We believe these are where it all starts.
We want to make these things the driving force behind our corporate growth.
That is why our Mission Statement is “Love”.

03

TAKAMIYA Report 2021

TAKAMIYA Report 202104

Knowing Takamiya First-Hand
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Advent of the era of
productivity improvement,
required not only atconstruction sites but also invarious industries including
agriculture

Using foresight—staying ahead of the issues facing society and coming changes of the times, Takamiya
has been providing value to society by innovating its businesses and creating frameworks whenevernecessary.
Here, we showcase our history of transformation.

Labor shortage

Corporate and Share Information

External
environment

From new construction todisaster prevention,
maintenance and repair

b
sta

te
ys

E

as

e
th

ac
f
e

d

HardwareSpreading andexpanding Iq System+

Iq System introduced

Software

SoftwareExpanding functions

Japan World Exposition, Osaka
Anticipated the era of
temporary equipment rental
business

Hardware
SoftwareEntered environmental business
HardwareStrengthened the foundation
to provide added value

Sale of temporary
scaffolding

Platform

Next-generation scaffolding

Rival companies engaged inprice competition

Rental of scaffolding

Iq System
HardwareHardwareJapan’s economic boom

n

ta
s
o

S

hin

lis

Construction investment shifted

q
gI

rd
a
d

t

Labor shortage atconstruction sites
Securing excellent humanresources and improving
productivity became
challengingm1981 Established the
Scaffolding System
Engineering Office
1982 Commenced automationof the equipment centers
1988 Introduced a CAD
systemlooking ahead to changes

YT Lock System
For scaffolding
installation on mountainslopesLift Climber
For large-scale
maintenance and repair
projects for high-rise
condominiums andbuildings

Strengthening functions
Development and manufacturing
Sales
RentalExpanded into
Agriculture
Business

Design and installation
Management and logistics

Five Arrows
Development andmanufacturing

Design and installation

Sales

RentalManagement andlogistics

Establishing a
stock-type business
Page 211974 –

2000 –

2010 –

2015 –

2021 –

Established Scaffolding Rental Business
Having started its business in 1969 as a scaffolding seller, the Company quickly shifted to theEntered Environmental Business in pursuitof safety, environment, and workability

Iq System revolutionized the industry
and created a business framework

Ventured into new business domains
leveraging our business frameworks

Accelerating transformation
by creating new frameworks

Rental Business. During construction for the Japan World Exposition, Osaka in 1970, manyIn the 2000s, construction investment shifted fromconstruction companies procured large amounts of equipment in Osaka, and sold it off

highways and new infrastructure to disaster

immediately after use. Anticipating the era of the temporary equipment rental business, weprevention, repair, maintenance and improvement.

decided to change our business structure. We went on to establish frameworks and systems

Anticipating further changes, we entered thethat have become a standard in the industry today, such as a security deposit system forEnvironmental Business. Since then, we haveproducts and minimum rental periods. From the 1980s, aiming to expand its business scale,positioned the Environmental Business as an

the Company developed operations in Tokyo and across the country. Furthermore, in a bid toimportant part of our growth plan and introduced
several strategic products, such as the YT Lockequipment maintenance. In the 1990s, the Company established its own quality control

System, designed for scaffolding installation on

standard to improve safety.

mountain slopes, where accidents can easily happen,

We have advanced into various fields based on
our core business in scaffolding. In 2015, weentered the Agriculture Business. Agriculture,
which is a primary industry, faces many issues,
such as the aging population of agricultural
workers and the abandonment of farming for
economic reasons. In light of these issues, weused the metalworking technologies we havecultivated 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 amanufacturer and offer value in new domains,such as through the development and sale ofanti-seismic damping frames to protect homesfrom earthquakes.

In addition to revising our business model to stayahead of the times, we are carr ying out atransformation to continuously increase ourcorporate value through the development of highvalue-added products and services. We willcontinue to take on the challenge of creating newvalue, and aim to become a corporate group thatdrives qualitative development of the industry.

strengthen its business foundation ahead of others, the Company worked on mechanizing

In 2010, we acquired manufacturing functions for the
purpose of revolutionizing scaffolding, which had notchanged in 50 years. We developed and launched thenext generation of scaffolding in-house. Iq System nextgeneration scaffolding increased the story height fromthe 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 toestablishing scaffolding product development andmanufacturing departments through the acquisition of
Hory Korea Co., Ltd., we established the Scaffolding
Construction Department. In this way, we have createda system in which each of our functions generates
synergies with the others, enabling us, for example, toaddress labor shortages at construction sites while
conducting promotions for our next-generation
scaffolding.

and the Lift Climber, which targets large-scale
maintenance and repair projects for high-rise
condominiums and office buildings.

05

Financial Information

Growing need for
productivity improvement

Takamiya’s History

Transformationof business
model

Foundations for Value Creation

TAKAMIYA Report 2021

TAKAMIYA Report 2021

06

Knowing Takamiya First-Hand
Knowing Takamiya First-HandBusinesses Developed
Overseas Business

12.8

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Sales Business

Page 35(figures below
the decimal point
are rounded)

Page 39

29.0%

Takamiya productsthat provide value to society

Number of licensed construction business operators(¥ billion)

Iq System

51,567.6
40,00063,160.0

41,928.2

20,000

0

2000

2005

2010

2015

2020

Maintenance and repair work80

New construction work
Maintenance and repair work
Ratio of maintenance and repair work

26.4

70.5
60

40

20

13.8

19.6

28.0

24.0
56.4

53.4
12.8

47.0

15.8

(%)

28.1

30.0

BENKEI

16.8

10.0

56.7
34.6

40.6

43.0

2015

2018

0

0

2000

2005

2010

(FY)

Source: “Construction Industry Handbook for 2000-2020”
by Japan Federation of Construction Contractors(Ten thousand persons)

6,000

Number of workers in the construction industry
Number of workers in all industries

6,457

6,446

6,356

6,257

6,376

4,000

Rental Business

2,000

663

653

568

498

500

1995

2000

2005

2010

2015

0

Source: “Construction Labour Statistics”
by Ministry of Health, Labour and Welfare

07

TAKAMIYA Report 2021

167,707(FY)

162,041585,959

600,000

120,000

542,264

498,806

467,635 473,952

300,000

60,00002000This half-size quake-resistant and vibrationdamping wall allows free house planning forpeople who want to live safely in an open spaceeven on a narrow lot, or who want a large-opening
room with few walls. The compact, narrow bearing
wall enables both the design and safety of open
spaces such as large opening windows and builtin garages. This is a new type of quake-resistantand vibration-damping wall that expands thepossibilities of home design while offeringstrength and security.

2005

2010

2015

2020

(FY)

Source: “Results of the Survey on the Number of Licensed
Construction Business Operators - Current Statusof Licensed Construction Business Operators (asof the end of March 2021)” by MLIT

Population of ASEAN
ASEAN(Thousand persons)Japan

800,000

667,301
595,854443,726

524,124

357,042400,000

200,000

117,817 124,505 127,524 128,542 126,476

0

1980

1990

2000

2010

2020

(FY)

Source: World Population Prospects 2019

G-Castle

Number of workers in the construction industry
8,000

MUSASABIThe use of stainless steel faceplates reduces thedeterioration of the product and increases
diversion rate. It enables fast assembly andformwork removal, and thus immediate
installation at the next construction area. Carryingout four cycles (formwork erection, pouring
c o n c r e t e , c u r i n g , fo r m wo r k r e m ova l , a n drearrangement) enables process control andshortens the construction period. It also enables
construction with a small number of people
without relying on skilled workers.

174,289 180,000

161,895

161,644

600,000
20.0

12.4

40.6

Its floors are unified, making it easy to work on,
and the systemization of beams, etc. makes it
possible to visually check the safety of the site.
With the same ease of use and wide range ofapplicability as conventional scaffolding systems,
V-MAX is applicable to all types of construction
work, lifting light to heavy loads, not to mention
work on the footings, railings, and floorboards ofbridges, using the three installation methods ofpartial assembly method, unitization method, andpanel method.

59.8

900,000

0

V-MAX

SPIDER PANEL is a panel-type hanging scaffolding
used for maintenance and repair work on aged
highways and other transportation infrastructure.
The panel is used to repair bridges and highway
floor slabs. It features a retractable platform tocreate a flat work surface with no gaps or
unevenness, and other functions to ensure safety
and workability in every detail. This is an advanced
panel-type hanging scaffolding that allows all work
to be performed on the temporary panels.

Source: “Construction Investment Forecast for FY2020”
by Construction Research and Statistics Office,
Policy Bureau, Ministry of Land, Infrastructure,
Transport and Tourism (MLIT)(¥ trillion)

The YT Lock System has been developed toprovide a safe and efficient working platform withthe same high quality at all times regardless ofthe skill level of the workers. The unitization ofcomponents makes it easy and economical toassemble, remove, reinst all and divert
components. The system is used for bridge
construction sites as components for piers areavailable, and also as a scaffolding and falseworksystem in urban civil engineering works.

SPIDER PANEL(FY)

Number of licensed construction business operators (Operators)
Number of scaffolding and civil engineeringbusiness operators(Operators)

YT Lock System

Using lightweight pipes and featuring a locking
function, Iq System achieved higher workability
and safety compared to conventional wedge typescaffolding systems as well as economic
efficiency equivalent to them. Adopting a story
height of 190 cm reduces the burden on workers
as they can work and pass through without
bending down. In addition, this next generation
scaffolding system comes with preset handrails
that are 101 cm in height, providing a level ofsafety that is one step ahead.

80,00056,646.8%
Market environment

Construction investment

66,194.8

Corporate and Share Information

Percentageof net sales

Market environment

60,000Financial Information

58.1

Page 37

Adding spacious room, excellent natural lighting and durability, thisproprietary greenhouse is ideal for controlling the environment for
growing crops and for year-round cultivation. We have an
extensive lineup of steel framed, high eaves greenhouses
and pipe greenhouses according to the produce forcultivation and design standards. This reliable andhighly functional greenhouse is offered by structurald e s i g n p r o fe s s i o n a l s w h o m a n u fa c tu r etemporary equipment for construction,building materials for housing andsolar panel installation frames.

Number of construction industry fatalities(Persons)

2,000

Number of construction industry fatalities
Number of fatalities in all industries
Percentage of construction industry fatalities

1,889
38.7

33.6

30.5
32.8

31.8

30.0

1,195

1,000

972
731

845
15.0

497

365

327

269

2010

2015

2019

0
“Percentage of net sales” is calculated based on net sales
before intersegment eliminations.

45.0

1,514
1,500

500

%

(%)

0

2000

2005

(FY)

Source: “Statistics of Industrial Accidents in theConstruction Industry” by Japan Construction
Occupational Safety and Health Association
TAKAMIYA Report 2021

08

Knowing Takamiya First-Hand
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Financial and Non-Financial Highlights
Financial Highlights*1

Non-Financial Highlights

Net Sales/Operating Income/Operating Income Margin

Profit Attributable to Owners of Parent

Annual Dividends per Share/Dividend on Equity (DOE)

Net sales (left scale)Operating income (left scale)Operating income margin (right scale)

Annual dividends per share (left scale)DOE (right scale)(¥ million)(%)(¥ million)

50,000

10

2,500

8

2,000

42,182

8.0

5

20

6

1,500

1,516

4.1

4.7

10,000

2,429

2017

1,690

2018

2,713

2019

3,703

2020

1,586

4

15

500

0

0

(FY ended March 31)

ROE/ROA

2019

2020

12.6

12.0

23.4

25.0

2018

2019

2020

54,41456,454(¥ million)(%)(Persons)

40

30,000 29,287 29,497 29,124 29,633

300

5

32.3

237

1,010

31.8

30.8

27.2

32.3
25.4

22.3

21.8

1,221

2019

2020

2017

2021

(FY ended March 31)

5

2018

2019

2020

30

30

20

20

10

10

0

0

31

0

2017

2021

2017

2018

2019

2020

2017

2021

(FY ended March 31)

Investments in Rental Assets/Depreciation

2018

2019

2020

151

0

40

48.1

38

EBITDA*3(¥ million)(¥ million)

8,000

10,000

5,000

30

7

2

2

6,932

5,447

4,000

4,804

4,815

6,000

2,500

18

0

3,757
2,467

–1,093

2,091

7

7
6

0

2019

2020

2021

(FY ended March 31)

TAKAMIYA Report 2021

2020

2017

2018

2019

2020

2021

(FY ended March 31)

2018

2019

2020

2017

2021

(FY ended March 31)

12

12

7

7

5

2018

2019

2020

2021

(FY ended March 31)

Average Length of Service(Non-consolidated)

Turnover Rate*4 (Non-consolidated)

Number of Accidents(Occupational Injuries, Non-consolidated)(Years)(%)(Cases)

10

12

3,653
9.36

9.47

9.61

9.86

5

10.22
8

7.7

8.2

7.8

4

6.9

1,590

–1,243–1,728–1,382–3,836
2017

0

2017

2021

(FY ended March 31)

–65

–195
–222

–5,000Notes: 1. Figures below millions of yen are discarded. However, indices shown in ratios are rounded to the unit displayed.
2. ROE = Profit attributable to owners of parent÷Average equity ROA = Ordinary income÷Average total assets
3. EBITDA = Operating income + Depreciation

09

2019

3

–2,873

0

2018

0

2018

11

6.5

6

3

4

2

2

1

6

–1,909–2,5002,000

11Free cash flows

70

4,000

2,768

2,000

2017

1,163
879

6,402

6,353

15

10

2017

9

1,925

1,714

12

20

0

2021

3,771

3,653

7,491

11

25
20

20

(FY ended March 31)

5,035

8,508

8,000

6,000

4,777

2020

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities(¥ million)

4,662

2019

Cash Flows

Investments in rental assets
Depreciation

4,502

2018

35

34

47.6

34.3

0

2017

(FY ended March 31)(Persons)

60

47.8

2

2021

■ Maternity leave ■ Childcare leave
Shorter hours for childcare

1

2021

2020

(%)

100

(FY ended March 31)

2019

40

10

0

2018

Number of Employees Taking Maternity/
Childcare Leave/Shorter Hours for Childcare (Non-consolidated)

52.7

2

30

32

10

3

10,00032.3

Paid Leave Utilization Rate
(Non-consolidated)

200

164

0

33

31.0

20

2.7
0

30.9

22.6

(FY ended March 31)

27,620206

20,000

43
31.0

34.9

0

2018

32.4

14

4

224

30

26.0

4.7

3.1

35

Number of Female Managers(Consolidated)(%)

20,000

6.2

1,000

1,204

500

2017

(FY ended March 31)

20

5.0

4.5

39

38

0

2021

2
5

40

20.5

0

2017

2021

9.8

10

40

1,298

3

Interest-Bearing Debt/D/E Ratio

30.5
40,00040

1(FY ended March 31)

59,282

14.7

15

(%)

50

Interest-bearing debt (left scale)
D/E ratio (right scale)

60,00052,760 52,813(Persons)

50

2

0

2018

(¥ million)

20

11

5

Total assets (left scale)
Equity ratio (right scale)

(%)

11

10

(%)

20

Total Assets/ Equity Ratio

ROA

14

14

10

857

2017

2021

*2

ROE

1,000

2

40

Number of new hires (left scale)
Ratio of female employees (right scale)

1,500

1,144

42

Number of New Hires/
Ratio of Female Employees (Non-consolidated)(Persons)

50

3.6

3.5

1,637
1,252

0

60

4

3.9

3.7

3.6
6.4

20,000(%)

38,812

36,763 36,114
6.6

30,000

(%)

25

2,370

Number of Employees/Ratio of Female Employees/
Ratio of Employees with Non-Japanese Nationalities (Consolidated)
Number of employees (left scale)
Ratio of female employees (right scale)
Ratio of employees with non-Japanese nationalities (right scale)(¥)

46,06540,000

Ratio of Iq System repeat customers

2018

2019

2020

0

0

2021

(FY ended March 31)

2017

2018

2019

2020

2021

(FY ended March 31)

0

2017

2018

2019

2020

2021

(FY ended March 31)

2

1

1

2019

2020

0

0

2017

2018

2021

(FY ended March 31)

4. Turnover rate = Number of regular employees who retired during the fiscal year÷Number of regular employees at the beginning of the fiscal year

TAKAMIYA Report 2021

10

Takamiya’s Value Creation Story
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Message from the President

Achieve sustainable growth over the longterm by staying ahead of changes in theconstruction industry and establishing a new
foundation for stable earnings
We always strive to be the early bird in the construction industry to spot major changes, and pursue value
creation as a longstanding pioneer of the times. This fiscal year, we have formulated the new 2021 MediumTerm Management Plan, and have embarked on a three-year period for completing the transformation that wehave been pursuing to date. We will revamp our business structure and enhance our performance to steadily
meet the expectations of all our stakeholders.

Driving the shift in our business model with the proliferation of our next-generation scaffolding, Iq System

Kazumasa Takamiya
Representative Director, President and Chairman

11

TAKAMIYA Report 2021

I n t h e f i s c a l ye a r e n d e d M a r ch 3 1 , 2 0 2 1 , t h econstruction sector was riddled with problems causedby the impact of COVID-19, such as project cancellations
and postponements, delays in delivery of equipments,
and a shortage of workers. At the same time, it wasalso a year that saw rapid progress in the introduction ofi-Construction and other forms of ICT and workstylereforms such as teleworking. However, changes likethese are just part of the undulations that theconstruction industry constantly experiences. Right
now, the construction sector is entering an era of hugechange that is only seen once every 50 or 100 years.
The Company was founded in 1969, when theJapanese economy was right in the middle of its periodof rapid economic growth. The 1960s-70s was a period
in which great strides were made with the constructionof roads, bridges, tunnels, and other forms of social
infrastructure as well as a construction boom of highrise buildings. Thus, the construction industry made animmense contribution to the post-war rebuilding ofJapan. During this period, we contributed to society andconstantly grew by responding accurately to demand
within the industry by selling or renting out temporary
equipment, i.e. scaffolding.
Now, more than half a century later, the construction
sector is assigned a new mission, which is themaint enance and management of aging social
infrastructure. Tackling the aging of infrastructure
through maintenance and repairs aimed at extending its
life is an urgent task. In particular, the momentum for
infrastructure reconstruction has instantly accelerated
since 2013, when the Basic Act for National Resilience
was formulated in the wake of the Great East Japan
Earthquake. Preventative maintenance, i.e. systematic
maintenance performed before problems occur, is also
on the rise. Furthermore, greater emphasis is being
placed on measures to prevent or mitigate disasters inline with climate change seen in recent years. The
amount of investment in the government and private

sector is ranging at ¥60 trillion to address this set ofsocietal issues.
While demand for social infrastructure reconstruction
is robust, the construction sector is facing a serious
labor shortage as a result of the low birthrate and aging
population. A big challenge for the industry is how toraise productivity with limited manpower, while ensuring
work safety.
With the current environment surrounding theconstruction industry changing substantially, we arelooking ahead to the next era and taking on the issuesof the sector head on. The goals of the 2018 MediumTerm Management Plan, which reached the final year in
the fiscal year ended March 31, 2021, were to securestable earnings through our conventional businessmodel of renting out scaffolding, while also revamping
our earnings structure by 2020. By pursuing these goals,
we have been aiming to establish a competitive
advantage over rival companies, while remaining
unaffected by the level of construction demand, which
is subject to frequent changes. We have also been
striving to engineer a transformation to a businessstructure that will enable us to enjoy sustained growthover a long term.
The foundation for delivering change to our earnings
structure is the Iq System, our next-generation
scaffolding, which offers higher levels of safety,
workability, and lower costs than conventional products.
Until 2018, we focused on investment in the Iq System,and pushed ahead with the replacement of conventional
scaffolding with the Iq System. Just as we intended,next-generation scaffolding is spreading in the market,
and we have expanded our market share to roughly
30%, the top share in this segment. We predict thatmost scaffolding will be replaced by next-generation
scaffolding within the next five years.
As a result of this major shift in our business model,
we achieved our best financial performance ever in thefiscal year ended March 31, 2020.

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Takamiya’s Value Creation Story
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Message from the President

In the fiscal year ended March 31, 2021, the impactof the COVID-19 pandemic caused our performance to
dip compared with the previous year, but we still madesteady progress with our business restructuring.
This fiscal year, we have formulated the 2021
Medium-Term Management Plan, and are focusing on

making ourselves more profitable and on creating new
businesses that generate earnings. Through these
efforts, we will establish a new yet stable earnings
foundation, aim for operations that are resilient tochanges in the external environment, and pursue
sustainable growth over the long term.

Aiming to make a new contribution to the construction industry and achieve our sustainable growth
The switch from conventional scaffolding to the nextgeneration Iq System of scaffolding, which has been
taking place over the last few years, is no more than thefirst chapter in our transformation. The proliferation ofscaffolding with higher added value than before, whichis the hardware, will form the foundation for ourtransition. By adding software to the mix, we will build acompletely new business model, and thus aim tooverhaul our business portfolio itself as a next step. This
will prevent rival companies from imit ating ourhardware, and establish a business model that is uniqueto us. This transformation is the centerpiece of thestrategy we are aiming to pursue.
The new 2021 Medium-Term Management Planstates our management vision, “create new value
through transformation and aim for sustainable growth
by becoming a partner to our customers.” The Plan is aroadmap for the sustainable growth of the Company
while endeavoring to make a new contribution to thechanging construction industry.
The first of the four basic strategies in the 2021
Medium-Term Management Plan is “develop services
that blend hardware and software, with a focus on the
Iq System.” This is a strategy for increasing software
value and developing a structured business through thefive arrows of development and manufacturing, sales,
rental, design and installation, and management andlogistics to augment Iq System, that is the hardware.
Our main focus here is on bringing together the
knowhow that we have accumulated over many years ofselling and renting out temporary equipment to provide
services that offer value from the standpoint of thecustomer.
For some time, we have been working to provide
services through Iq Sharing, our sharing business. With
this business, customers that have purchased the Iq
System can store their purchases at our equipment
centers operating throughout the country, and shareequipments such as scaffolding with other customers.
This allows customers to minimize the quantity theyhold, and to borrow when they are short of equipments.
This boosts the utilization rate for rental assets andmakes customers more profitable.
With an eye to further expanding use of Iq Sharing,
we have established Takamiya Lab. West in the City ofAmagasaki in Hyogo Prefecture. It will serve as a hub
for the development of services that blend hardware
with software. We plan to utilize this hub to explore new
possibilities in the temporary-structure business andultimately develop a stock-type (commission-based)business model that is resilient to the external
environment and capable of generating earnings on an
ongoing basis.

Our unique structured service for building a new foundation for stable earnings
The most important task in operating the Iq Sharing
service is to put together a structure that enables
customers to share temporary equipment by being able
to deliver and collect them anywhere in the country. To
that end, we need to establish a quality management
structure for always maintaining temporary equipmentin the best possible condition and build a system foraccurately identifying the number of temporar yequipment we are storing on behalf of customers andallowing equipment centers to mutually exchange
temporary equipment to meet customer demand fordelivery or collection.
We plan to install webcams in the equipment centers
so that customers can see their temporary equipment
live. We also intend to establish a structure that enables
them to identify in real time, via a computer system, thequantity of temporary equipment currently being rented

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TAKAMIYA Report 2021

out to construction sites and the number currently instock at equipment centers. By offering a system thatallows the quantity and cost of temporary equipment
required for the structure of the building on theconstruction site, equipments can be arranged quickly
and easily in line with work progress. The automatic
calculation of required equipments employs 3Dtechnology, and we also use the 3D laser scanner tointroduce a back-to-back ser vice covering frommeasuring buildings and facilities to producing blueprints.
I believe that these offerings will make a substantial
contribution to improving customers’ business efficiency
and profitability, and financial stability. Furthermore, weare considering leveraging our development andmanufacturing functions to jointly develop new productswith customers based on their needs.

Going forward, we will not only strengthen our IT
systems, but will also push ahead with the developmentof a smartphone app. The app will make it easier forcustomers to obtain information about the temporary
equipment they possess. We are also going to put
together a mechanism for enabling equipment to be
traded freely. The structured services that we are aiming
to offer not only encompass the Iq System and its
equipment, but also have the potential of enabling the
trading of various temporary equipments.
What we are focusing on at the moment to expand
structured ser vices, is investment in digit altransformation (DX). The virtual laboratory installedinside the Takamiya Lab. West research hub will be
e m p l oy i n g c u tt i n g - e d g e t e ch n o l o g i e s s u ch a s
augmented reality (AR) and virtual reality (VR) to createa system that enables construction sites to beexperienced virtually from any location. Equipment arepermanently on display at showrooms where customers
can directly touch the equipment they tried out virtuallyfor a deeper understanding.
One of the most noteworthy features of Takamiya
Lab. West is its location. In the past, equipment centerswere normally located far from the centers of large
cities so as to keep costs down. In contrast, the locationof the facility is in Amagasaki, a city close to the centerof the Kyoto-Osaka-Kobe conurbation, so transporting
equipment to construction sites in the center of theconurbation, where many large-scale projects are
situated, takes much less time. In addition, warehouseautomation will also significantly cut equipment loading
times, enabling equipment to be shipped out at thefastest possible speed. Looking ahead, we will beestablishing facilities similar to Takamiya Lab. West inother regions, and will also consider gradually moving
our equipment centers, counting 30 or so nationwide, tomore accessible locations.

Strengthening business for contributing to the maintenance/repair of aging infrastructure
The second of the basic strategies set forth in the 2021
Medium-Term Management Plan is to “strengthen
products for maintenance/repairs and infrastructure
redevelopment.” As I mentioned at the beginning, withwork to maintain and repair aged infrastructure set toincrease more and more, we are striving to develop
products that ensure safety onsite and improve
workability.
For example, our SPIDER PANEL panel-type hanging
scaffolding is scaffolding in the form of a panel
combined with a hanging shelf, joists, and work
platforms. It is used frequently in works, inspection andpaint work on expressways and bridges. Unlike
conventional hanging scaffolding , it provides aworkspace with no gaps, thus enhancing safety andworkability. The Lift Climber, meanwhile, is a mastclimbing work platform used for large-scale maintenanceand repair works such as on high-rise condominiums.
Workers can board the work yard, which is in the formof an elevator, to put the finishing touches to theexterior walls. Because scaffolding doesn’t need to be
erected around the entire building, no harm is done toits appearance even when maintenance work is being
performed. We also offer a type of scaffolding called theYT Lock System, which can be simply and safely
assembled even at unusual construction sites such as
mountain slopes.

On the other hand, given the increase of natural
disasters, we are also focusing on products for disasterprevention and mitigation. Oct-brace (buckling-constraint
brace) is a structural device with a seismic damping
function that can be used for logistics warehouses withlarge floor areas and for buildings of any height, fromhigh-rise buildings to low-rise structures. It is super easy
to install, and can help reduce costs, and as a result isbeing increasingly adopted at large logistics warehouses.
Furthermore, our Tiger Dam water inundation prevention
system, which can be used in place of sandbags, is not
only highly effective in blocking water, but can also be
installed rapidly. It uses water bags that do not generate
any industrial waste. As an indispensable disasterprevention product to tackle the frequent occurrence ofsudden torrential downpours caused by global warming,
the system has been adopted by the Tokyo Fire
Department and the Metropolitan Police Department.
By expanding our lineup of products for maintenance/
repairs and infrastructure redevelopment as well as
products for disaster prevention/mitigation, we hope toestablish such products as a growth domain to follow in
the footsteps of the Iq System. By also employing the
Iq Sharing system for these products, we will position
them within the sharing business, and highlight theadvantage that they can be managed efficiently bycustomers.

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Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Message from the President

Further expanding our business portfolio
The third basic strategy in the 2021 Medium-Term
Management Plan is to “nurture businesses beyond thetemporar y equipment sector.” By creating new
businesses to supplement our core business of
temporar y equipment, we intend to expand ourbusiness portfolio to further stabilize our earnings
foundation.
At the heart of this strategy is the development of theAgriculture Business. In recent years, while the numberof farmers is progressively declining, more young
people are adopting farming. To cement this as apermanent trend, it is crucial that we enhance theproductivity of agriculture and turn it into a profitablebusiness. To that end, we have developed our
proprietary greenhouse. Leveraging the production
technology we have developed through the manufactureof temporary equipment, the lineup features pipehouses, which are simple and easy to handle, and steelframe houses, which offer sophisticated functionality.
We are engaged in agriculture ourselves to develop
and manufacture greenhouses that are suited to actual
farming conditions. Recently, we launched the Hanyu
Aisai Project in Hanyu City, Saitama Prefecture to test
cultivation. As a demo cultivation facility, we haveconstructed the G-Castle Neo48, one of our original
products. This project takes advantage of IoT to test

cultivation methods for boosting cucumber yields andcultivation systems for growing high-quality strawberries
and cherry tomatoes. Inside the greenhouse, we use
sensors to monitor temperature and humidity, and strive
to accumulate and visualize the data obtained. By
employing the data in the control of various types ofequipment, it is possible to engage in commercial
agriculture without relying on years of experience. It
also helps raise farming productivity.
As for the fourth basic strategy, which is to“redevelop overseas business bases,” we are targeting
the Southeast Asian market which provides abundantbusiness opportunities in large-scale infrastructure
projects, and intend to supply equipment for theseprojects. The market of particular focus is thePhilippines. Recently, the country has been dealing with
the COVID-19 pandemic, and progress has come to a
standstill, but there are plenty of big projects in thepipeline, which present us with huge opportunities. In
the meantime, we will work with companies in the
country to roll out our traditional business model ofrenting out or selling equipment in order to achievemarket penetration. In the future, we will horizontallydeploy the knowhow we pick up in the Philippines tocountries such as Indonesia and India so as to expand
the markets we operate in.

Tackling ESG-oriented management issues and further strengthening our corporate foundation
While we step up offensive management by steadily
implementing our basic strategies as I have explained, I
believe that it is important also to maintain defensive
management in order to mitigate risks associated with

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TAKAMIYA Report 2021

business expansion. In this regard, we are working tostrengthen our corporate foundation in both theoffensive and defensive realms by further promoting
ESG-oriented management.
In the environmental sphere, the stock-type businessmodel that we are aiming for will naturally lead to a
reduction in environmental impact. The amount ofscaffolding nationwide in Japan has now reachedapproximately 100 million m 2 , and around 60% is
actually in use at any given time. In other words, 40% is
s i tt i n g i d l e a s s u r p l u s e q u i p m e n t . W i t h m o r eswitchovers to next-generation scaffolding, i.e. the Iq
System, the utilization rate will increase. This will reduce
the space required for equipment and curb therelocation of surplus equipment, which will, in turn,naturally reduce energy usage.
We also operate solar-power businesses to help easethe burden on the environment. In particular, we are
currently promoting the solar carport business, which
installs solar panels on rooves covering car parking,targeting facilities such as golf courses. In the future,when electric vehicles (EVs) have become widespread,
we intend to equip the solar carports with power
storage functions, and expect this will boost demand
not just from owners of home parking spaces, but also
from operators of commercial parking lots.
In the social arena, on the other hand, the mostimportant task for successfully implementing our basics t r a t e g i e s i s t o r e i n fo r c e o u r h u m a n - r e s o u r c efoundation. Our Mission Statement is “Love,” and ourManagement Philosophy is to Love yourself, Love
others, and Love the company. When it comes tohuman resource development, while we emphasize
relationships of trust between people, we are also
focused on creating an environment where each andevery employee can work autonomously. By promoting
teleworking amid the COVID-19 pandemic, encouraging
communication in the office taking thorough infectionprevention measures, improving personnel-related
systems, and changing employee attitudes, we aim todevelop people who can come up with new ideas,organize and perform them, as well as highly-specialized
personnel.
In particular, managers play a large role in promoting
free thinking in the workplace, so we view the creationof mechanisms for developing and evaluating managers
as an important task. Specifically, we have establishedthe Project Leader Conference, composed of young
leaders, to develop the managers of the future. I also
take part in meetings of the Conference, communicate

the view of the management and share my thoughts on
strategy. This is one of our efforts to develop leaders
who can think and act independently.
We are addressing overtime hours at branches as a
HR issue. Right now we are taking measures tovisualize the quantity of overtime hours and improving
the situation. The overtime issue is an urgent task froma health and productivity management perspective, andwe are taking steps to rectify the problem.
We also intend to further step up efforts tostrengthen governance. We will promote transparency
in management and proactively disclose information inline with Japan’s Corporate Governance Code. Having
recently established the Nomination and Compensation
Committee, we will further enhance transparency in theprocesses of selecting directors and corporate auditorsand determining the compensation to directors andexecutive officers. Internal control over overseas
subsidiaries will inevitably be another governance issue
as we further expand overseas. We will tackle this issue
as we execute the 2021 Medium-Term Management
Plan.
The general meeting of shareholders for the fiscal
year ended March 31, 2021 was held in an open spaceat the Osaka Head Office. In the past, we have held themeeting at hotels, but this year we decided that we
wanted shareholders and investors to see our
employees at work in the office, so that they could
deepen their understanding of Takamiya as a company.

Striving to establish a new earnings structure by steadily implementing the Medium-Term Management Plan
As explained so far, the environment surrounding theconstruction industry is changing dramatically. We aredetermined to tackle and resolve the issues the sector
is facing with a strategy that looks ahead beyond thisera. One of our foremost missions is to ensure thesafety of the people who work at construction sites andmake it easier for them to carry out their work. By
fulfilling this mission, we will achieve sustainable growthover the medium to long term while gaining both social
value and economic value.
We more or less reached the numerical targets in thesecond year of the 2018 Medium-Term Management
Plan, but ultimately failed to achieve them in the final
f i s c a l ye a r. I a p o l o g i ze fo r fa i l i n g t o m e e t t h eexpectations of stakeholders. We are firmly resolved toachieve the target operating income of ¥5.0 billion in thefiscal year ending March 31, 2024 under the 2021
Medium-Term Management Plan. As we push forward
to improve our performance, the key to success is thedevelopment of new services through the blend of the
hardware and software revolving around the Iq System,
the core. By bringing the ongoing transformation sincethe 2018 Medium-Term Management Plan to fruition,
we will firmly establish the stock-type business model
alongside a new earnings structure.
Traditionally, we held a B to B business model,
serving the construction industry. Maybe it was difficult
to understand, especially for individual investors.
However, through the implementation of the 2021
Medium-Term Management Plan, I believe that ourbusiness model will change into one that is easier tounderstand. For example, we will transition to a stocktype business, expand the Agriculture Business, andmake inroads into overseas markets. We will also meetyour expectations by improving our performance. I
sincerely appreciate the support of all our stakeholders
given from a long-term perspective.

TAKAMIYA Report 2021

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Takamiya’s Value Creation Story
Knowing Takamiya First-Hand

Takamiya’s Value Creation Processof the times and innovate its business portfolio and frameworks. We will repeat this process
and provide products and services that resolve social issues, so as to continuously improve
our corporate value.

Solu
tion
sP
ro
d

Takamiya has created new business models through foresight—staying ahead of the changes

Takamiya’s Value Creation Story

ices
serv
d
an
ts
c
u
Sales

Business Strategies

Construction
company

Foundations for Value Creation

Financial Information

Realize the Vision

RentalOutputBusiness environment and social issues
Realization of a safe and secure society
Infrastructure redevelopment
Preparation for natural disasters

Scaffolding
construction
company

Design andinstallation

Safety and security at construction sites

Iq System

Management
and logistics(To achieve the de facto
standard)

Business Environment and
Risks & Opportunities
Page 19

Temporaryequipment rental
company

Development andmanufacturing

Scaffolding
manufacturing
company

Human capital
Number of employees
Consolidated
Non-consolidated*FY ended March 31, 2021

Manufacturing capital

4

Manufacturing bases

Logistics
company

29

Total assets
Interest-bearing debt

¥56,454¥27,620

Target22(Branches: 8 locations, sales offices: 14 locations)

Subsidiaries

14companies*(Japan: 9 companies, overseas: 5 companies)*Including non-consolidated subsidiaries

17

TAKAMIYA Report 2021

Use backcasting to identify
our Target%

Sales Business¥38,812¥11,990

millionmillionRental Business¥24,009

millionPages 37-38

Return on investment

Upfront investment

Return on investment

Upfront investment

Return on investment

Next medium-term
management planPrevious medium-term
management plan

Current medium-term
management plan

In order to realize our Vision, we
will seamlessly repeat the cycle ofmaking necessary investment inmanagement resources (upfront
investment) and collecting returns
from past investments inmanagement resources.

Overseas Businessmillionlocations63.80

Pages 35-36

Upfront investment

millionNetwork
Sales bases

Net sales

Result*FY ended March 31, 2021

billion*Business value

VisionCurrent state

Financial capitalcompanies%

Cumulative sales

Create our Vision in formulating a Medium-Term
Management Plan with Takamiya’s uniqueperspective and approach

locationslocations%*Company sales on a non-consolidated basis(Gunma Factory, Gifu Factory, South Korea Factory, Vietnam Factory)

Equipment centers

Share of next-generation
scaffolding

Utilization rate
for rental assets

Takamiya’s Medium- and Long-Term Business Approach

9.44
31
346
63
¥17.5

million m2

Repeat rate

Equipment
manufacturer

1,221
711

Coverage(Square meters)

Cumulative numberof customers

Leverage for achieving transformation
Input

Corporate and Share Information

Financial strategy¥5,300

millionPages 39-40

Operating income¥1,586

million*FY ended March 31, 2021

Social value

Management foundation

Page 31 Source of Sustainability

Corporate governance

Page 41 Foundations of Value Creation

Businesses Developed

Pages 07-08

Takamiya’s Management
Philosophy

Page 03 Mission Statement Page 04 Management Philosophy

Financial and
Non-Financial Highlights

Pages 09-10

Sustainability

Pages 33-34

Strengthen capital

Page 29 Message from the Chief Financial Office

TAKAMIYA Report 2021

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Takamiya’s Value Creation Story
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Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Business Environment and Risks & Opportunities
Risks & Opportunities

Changes inChanges inthe social

Response•Capital investment of private companies decreases amid
economic downturns•Hold versatile equipment and technologies which can be applied to a wide range ofworks including public infrastructure construction works, because government
investment (mainly civil engineering works) tend to increase amid economic
downturns•Construction investment amounts have an impact on us,
because our main business is related to temporary
equipment for construction works•Nurture businesses beyond the temporary equipment sector•Expand business overseas (ASEAN) which is not directly affected by construction
demand in Japan•Demand for new construction of infrastructure is shrinking,resulting in oversupply of large-scale falsework equipments
for bridge construction in highways and railroads•Sell to ASEAN countries where demand for construction of infrastructure is
expected•More than 50 years have passed since the construction ofdomestic transport infrastructure such as highways, anddemand for maintenance and repair is increasing•Expand the lineup of temporary equipment required for maintenance and repair
work of infrastructure, and renew equipment to more versatile types

Opportunity Accelerated spread of next-generation scaffolding•Demand for scaffold which enables safe and easy workwithout bending forward will increase. Demand for lighter
scaffold will also increase in order to improvetransportation efficiency and decrease work burden for
installation.

•Replace all tube pipes held with high-tension steel pipes to make them lighter•Completed replacing equipment with next-generation scaffold Iq System withsuperior workability and safety•Make equipment lighter by switching material from steel to aluminum

Risk

Obsolescence of temporary equipment held

•Development of innovative method of construction may
eliminate the demand for temporary equipment including
scaffold•Nurture businesses beyond the temporary equipment sector•Shift to business models which do not rely on hardware

Risk

Delays in promotion of DX due to the shortage of IT
professionals•We may lose our market share if we cannot secure IT
professionals and cannot provide DX-related services in atimely manner•Promote the hiring of IT professionals and the training of employees

Opportunity New demand•Online transactions will become the norm, and being
well-prepared may increase the number of new
customers and the amount of transactions with them

•The Group has been working on building/construction information modeling (BIM/
CIM) which are essential for DX in construction, and opportunities for receiving
orders will increase due to the expansion in demand

Opportunity Decreasing agricultural population•Facilities that are easy to adopt, automatic control, andknow-how of cultivation are required to facilitate newhiring•Demand of facility and equipment for productivity
improvement increases, necessitating increase in yield
per acreage•Develop pipe houses for agriculture and products for agriculture, utilizing our metal
processing technology and steel pipes for scaffolding•Implement demo cultivation with our products, and collect know-how and data toleverage them

•Raw materials costs and transportation costs may surge
due to the rise in the prices of fossil fuels driven by the
reduction of CO2 emissions•Make components smaller and lighter through the systemization of scaffold, thereby
reducing the number of shipments (the number of trucks)•Shift from suburban equipment centers to urban equipment centers (new openings/
relocation)

Domestic economic trends
Risk

Capital investment trends of private companies

Trends in domestic construction
investment amount

Risk

Opportunity Increase and decrease in domestic construction

Transition from new construction
to maintenance and repairs

Risk

the economic
environment

Reasons

environment

investment amount
Decrease in demand for new construction oftransportation infrastructure

Opportunity Increase in demand for maintenance and repair of

infrastructure

Productivity improvements atconstruction sites

Digital Transformation (DX)

Problems faced by the agricultural
sectorResponse to climate change

Natural disasters

Risk

Surge in raw materials and fuel costs

Risk

Surge in transportation costs

Opportunity Demand for new construction and renewal of plants•Demand for construction including renewal and new
opening of facilities increases due to the usage restrictionof fossil fuels and energy efficiency as well as increase inusage of alternative energy including hydrogen andelectricityE.g.) power plants, hydrogen production plants, supply
bases (gas stations), net zero energy buildings (ZEB)
and net zero energy houses (ZEH)

Slowdown in business and economic activities•We may be forced to shut down our operations due tonatural disasters such as earthquakes and typhoons, andthe spread of infectious diseases such as viruses

Opportunity Response to recovery and reconstruction from disaster•Demand for temporary equipment necessary forconstruction works rises to quickly recover damages intransportation infrastructure due to natural disasters

Risk

Domestic demographic trends
Risk

Changes inlaws andrules
19

TAKAMIYA Report 2021

Amendment of Ordinance on
Industry Safety and Health(related to scaffolding)

Shortage of personnel and manpower

Opportunity Demand for new products•Diversify risks by locating equipment centers across the country, and establish thesystem to supply temporary equipment necessary for recovery and reconstruction
works•New hiring becomes difficult due to the advancement of
the declining birth rate
•Securing talents with skills and qualifications such asscaffolding installation becomes difficult•Enhance employee benefit programs as well as improve working conditions andenvironments mainly through workstyle reform•Train and develop personnel by running projects for problem solving in the Company•Amendment of laws and guidelines to secure the safetyof workers in construction sites can be an opportunity togenerate demand for new products•Promote development, manufacturing, and sales expansion of products with highsafety and workability, such as Iq System next generation scaffolding and SPIDERPANEL panel-type hanging scaffolding system

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Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Takamiya’s Business Model
Earnings under our conventional business model have been greatly affected by changes in the business environment.
By establishing foundations and business models that generate stable earnings under any environment, we have been

Future Business Model
Customers

steadily transforming into a corporate group capable of flexibly coping with environmental changes and generateearnings.

Sharing BusinessThis is a framework that allows customers to use our equipment centers toshare equipment they have purchased. By optimizing their equipment
holdings and borrowing the equipment they lack from the Company’sequipment centers, customers can improve the efficiency of their asset
management. With the Company shouldering the maintenance of equipment
and management of delivery and collection, customers can achieve a 100%
utilization of equipment at low cost.

Conventional Business Model

Purchase of
temporaryequipment

Sales
Customers

Sales

Development
andmanufacturing

RentalDevelopment
andmanufacturing

Iq System
RentalDesign andManagement

installationand logistics

Customers

Enforcement and Expansion of the Sales
Business and the Rental BusinessIn order to improve the competitive advantage of the Sales and the Rental of temporary equipment which are difficult

21

Management
andlogistics

Designandinstallation

Establishing a Platform as the Business Foundation,
by Blending Hardware and Softwaredifferentiate, we have added and expanded various services. With the enforcement of individual functions, the Sales

We provide optimized service platforms centering around Iq System, tailored to customer needs. By maintaining theBusiness and the Rental Business have greatly expanded as a flow (pay per purchase/use) business. However,constant provision of services and business relationships with customers who purchased Iq System, we havecoordination between them as well as monetization of other services have been challenging. The introduction of Iq

established a new business model combining flow (pay per purchase/use) and stock (commission-based) businesses.

System has enabled the establishment of a new business model through the coordination between them.

The platform will grow as our competitive advantage and become the new source of earnings.

TAKAMIYA Report 2021

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Takamiya’s Value Creation Story

New Medium-Term Management Planfrom the customer’s perspective and create new value in a sustained manner to complete our transformation
which aims to build systems and structures that permanently enhance our corporate value.

Review of the 2018 Medium-Term Management Plan
Summary of consolidated performance
In the 2018 Medium-Term Management Plan, we set the management vision, “Create new value through transformation
and aim to become a corporate group that drives qualitative development of the industry,” and have tackled the four policies: strengthen management foundations; drive innovation in the earnings base; accelerate overseas business development; and create new growth businesses.
2018 Medium-Term Management Plan (FY ended March 31, 2019 to FY ended March 31, 2021)(¥ million)

Results for the FY ended March 31, 2018

Results for the FY ended March 31, 2019

Results for the FY ended March 31, 2020

Results for the FY ended March 31, 2021

Percentage ofnet sales (%)

Percentage ofnet sales (%)

Percentage ofnet sales (%)

Percentage ofnet sales (%)

Net sales

36,114100.0

42,182100.0

46,065100.0

38,812100.0

Gross profit

10,43128.8

12,13228.8

14,01430.4

10,996

28.3

SG&A

8,740

24.2

9,418

22.3

10,311

22.4

9,410

24.2

Operating income

1,690

4.7

2,713

6.4

3,703

8.0

1,586

4.1

Ordinary income

1,610

4.5

2,662

6.3

3,541

7.7

1,569

4.0

Profit attributable to owners ofparent

1,252

3.5

1,637

3.9

2,370

5.1

857

2.2

Earnings per share

29.26

38.22

[Diluted earnings per share] (¥)[28.38]—Annual dividends per share (¥)

11.00

—

11.00

—

14.00

—

14.00

—

4,662

12.9

4,777

11.3

4,804

10.4

4,815

12.4

6,353

17.6

7,491

17.8

8,508

18.5

6,402

16.5

Depreciation and amortization(Based on the statements of cash flows)

EBITDA(Earnings before interest, taxes and depreciation)

52.74

—

[37.06][51.28]Foundations for Value Creation

Financial Information

Corporate and Share Information

2021 Medium-Term Management Plan

Under the new 2021 Medium-Term Management Plan, we will carefully refine each of the Group’s businesses

Consolidated results

Business Strategies

18.41

—

[17.89]—Management Vision

Create new value through transformation and aim
for sustainable growth by becoming a partner toour customers.
Profit Targets
Consolidated
operating income¥5.0

Basic Strategies

1
Develop services that blend
hardware and software, witha focus on the Iq Systembillion (FY ending March 31, 2024)

2
Strengthen products formaintenance/
repairs and infrastructure
redevelopment

Achieving the de facto standard−Iq System
In the 2014 Medium-term Management Plan, we strove to increase the recognition of next-generation scaffolding, andsucceeded in spreading the knowledge of its benefits in the industry. In the previous Medium-Term Management Plan started
in 2018, we started the full-scale promotion of next-generation scaffolding, and Iq System maintained the leading share in theindustry (based on our own research), making steady progress toward the achievement of the de facto standard.
Share of next-generation scaffolding

Prevalence of the Iq System (our sales + rental assets)*Based on our own research(Thousand m )2

Iq System: 9,440,000 m2

10,000

Our rental assets sold: 7,240,000m2
8,000

6,480

6,000

4,540

4,000

7,240

+

Sold by other companies: approx. 2,200,000m2

Iq System

5,320

31%

3,650
2,440

2,000

1,030

3
Nurture businesses
beyond the temporary
equipment sector

4
Redevelop overseas
business bases

0

2015

23

2016

2017

2018

2019

2020

2021

(FY ended March 31)

2014 Medium-Term Management Plan

2018 Medium-Term Management Plan

Increased recognition of
next-generation scaffolding

Full-scale spread ofnext-generation scaffolding

TAKAMIYA Report 2021

Other next-generation
scaffolding brands

TAKAMIYA Report 2021

24

Takamiya’s Value Creation Story
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

New Medium-Term Management Plan

1

2

Develop Services that Blend Hardware and Software, with a Focus on the Iq System

Not limited to our next-generation scaffolding Iq System’s hardware functions, which is the competitive edge of its
product features, we will also provide software features such as scaffolding management, operation, and consulting.
Through such blending of hardware and software, we will create new services and establish a competitive edge to make
Iq System the de facto standard of next-generation scaffolding.
Pages 21-22 Takamiya’s Business Model
We have established Takamiya Lab. West in Amagasaki City of Hyogo Prefecture to take on the central role in thisstrategy, and we will aim to build a stock-type business model, seeking for a new possibility in the temporary equipment
business.

Takamiya Lab.
New potential of the temporary equipment business

Strengthen Products for Maintenance/Repairs and Infrastructure Redevelopment

The proportion of maintenance and repair (renovation/renewal) work in the original-contractor construction revenue is on
an increasing trend in the Japanese construction market. Development of major infrastructure including the Shinkansen,
highways, and railways progressed during Japan’s economic boom. Some 50 years have passed since then, and theirmaintenance and repair works are being carried out in various parts of Japan. As products targeting these works, we will
strive to expand sales mainly for the panel-type hanging scaffolding SPIDER PANEL, and hanging scaffolding systems
V-MAX, which offer superior workability and safety for highway maintenance and repair works. In addition, our YT Lock
System realizes the tool-less assembly of platforms for large cranes and other heavy equipment in maintenance andrepair works for dams and electricity transmission facilities particularly in hilly and mountainous areas. In the Rental
Business, the use of Lift Climber, our mast climbing work platform that we have primarily supplied for high-rise
condominium buildings, is expanding into the civil engineering sector. We will strive to expand sales in both theconstruction and civil engineering sectors.
Maintenance and repair works
Maintenance and repair work

(%)

50

80

40

13.2

13.8

14.0

30

13.5
13.2

12.7
12.8

40

Site under preparation

Sakishima

13.2

13.0

13.2
12.5

12.4

13.8

14.9

14.3

15.3

15.8

15.5

16.4

16.8
20

20

10

Kobe
xpres

shin E

0

0

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

sway

Southern area: candidate site
for integrated resort, Han

Yumeshima Northern area: site for Expo

Route

Maishima

Strategic products for maintenance/repairs and infrastructure redevelopment
Joint development

Sales

Iq Sharing

Iq System

RentalDesign and installation
Management and logistics

Create new services from Takamiya Lab.

TAKAMIYA Report 2021

Ratio of maintenance and repair works

100

60

Takamiya Lab. West

Development and manufacturing

25

New construction work(¥ trillion)

28.1

No. 5

Equipment centers of scaffolding rental companies are generally located insuburban areas remote from urban areas, because the centers require alarge plot of land for the storage of scaffolding. Customers have had to visit
equipment centers in the suburbs to pick up scaffolding and return toconstruction sites in urban areas.
Opening equipment centers in urban areas instead of suburbs, which
was regarded as a matter of course in temporary equipment business, will
generate significant benefits for customers, as it reduces burdens for thetransportation of equipment, and not only saves transportation expenses,
but also shortens time required, allowing higher frequency of pickup anddelivery using trucks. The Company can also benefit from urban locations
as it facilitates the securing of personnel amid the decrease in the labor
population due to a declining birthrate and an aging population. We willproactively adopt other services that may benefit customers.
Takamiya Lab. West, a new type of equipment center is to be opened in
Amagasaki City, which offers good access to urban areas in Osaka andHyogo Prefecture and newly developed areas in the Osaka Bay area. Actual
products will be on display at the Lab. where customers can easily drop byfrom their offices. Customers do not need to go all the way to the suburbs
for the verification of product samples under development and trial
installation.

Online order receipt
BIM for temporary equipment
Fastest delivery andcollection
Panel-type hanging scaffolding system

Mast climbing work platform for large-scale repair works mainly on high-rise condominiums

Can be erected along slopes and also used as a gantry

SPIDER PANEL

Lift Climber

YT Lock System

TAKAMIYA Report 2021

26

Takamiya’s Value Creation Story
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Takamiya’s Value Creation Story

New Medium-Term Management Plan

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

2021 Medium-Term Management Plan
Basic Policy
Build a stock-type business model

Diversification of
earnings base

Expand earnings in the agriculture business
Create new businesses using business resources (five arrows)

Nurture Businesses beyond the Temporary Equipment Sector

3

Net Sales of the Agriculture Business
Regarding business areas other than the temporary(¥ billion)
equipment sector, we will promote the full-scale growth
Sales of high-function
150
of our agriculture business. In Hanyu City of Saitama
greenhouses
120
Prefecture, we have built a demonstration farm featuring
Acquired greenhouse
95.4
sales businessG - C a s t l e N e o 4 8 a n d G - C a s t l e Pr o 1 , a g r i c u l tu r a l
90greenhouses manufactured and sold by Takamiya, where60
we tried out the actual cultivation of fruit and vegetables30
18.2
to evaluate their performance. At the demo farm, along
9.30
w i t h t h e p e r fo r m a n c e eva l u a t i o n o f Ta k a m i ya ’s
2017
2018
2019
greenhouses, customers are invited for taking a tour ofthe facility. We verify environmental control devices andideal cultivation methods inside
The site is about five minutes by car from
Hanyu Interchange.
the greenhouses to incorporate
Saitama Aquarium
the results in sales promotion.
We have introduced sensing
Hanyu Suigo
technology to collect a variety of
Hanyu Interchange,
Park
Tohoku Expressway
KIYASSEdata related to cultivation. Data
HANYU
collected are subjected toSitesecondary use, including
providing to customers, as part ofo u r e ff o r t s t o e x p a n d t h i s Approx. 30,000 m (leased land) located in Hanyu
business.
Challenge Farm, Hanyu-City, Saitama Prefecture

116.3

108.2

Establishment of
manufacturer functions

Establish manufacturing frameworks

Innovation ofmanagement system

Raise productivity of all management resources
Realize greater productivity through AI/ICT (promotion of digitaltransformation)
Realize a win-win relationship between management and employees
Promote work style reform

Establishment ofoverseas business bases

Strengthen subsidiary management system

Strengthen product planning and development frameworks

Rebuild business strategies
Build earnings base

2020

2021

(FY ended March 31)

Investment Policy
Three-Year Cumulative Investment

akantoToward Kit

Investment in service development (equipment,
systems, etc.) to raise the added value of
products
G-Castle
Neo48

Takamiya Lab.
3D measurement, BIM(development of new services that blend hardware and software)od TokyTowar

2G-Castle
Pro1billionof which, related to equipment centers

Work style reform

Investment in development and cultivation ofhuman resources to support sustainable growth(approx. 240,000 m2)¥11.8

Online order receipt¥6.6 billion

Office reform
HR systems reformof which, related to systems

Investment in systems development forlabor-saving and smaller number ofworkers through digitalization¥1.4 billion

Use of robots
Factory automation

Investment in products (rental assets) for growing
markets such as maintenance and repair market(strengthen products for maintenance/repairs and infrastructure
redevelopment)

Product development
Adoption of overseas products¥11.4

billionFinancial Policy

4

Redevelop Overseas Business Bases

In the redevelopment of overseas business bases, theimpact of COVID-19 has been significant, particularly at
our subsidiary in the Philippines, and recovery is yet to be
seen. Nevertheless, the Philippines remains a promisingmarket with a high economic growth rate, and weanticipate that construction investment will eventually
return to pre-COVID-19 levels. By then, we will pursue thedevelopment of management systems and businessbases and strengthen the overseas business to achieve
further growth.

27

TAKAMIYA Report 2021

Operatingincome margin

Nominal GDP and Population in the Republic of the Philippines
Nominal GDP (US$ billion)

96

250

98

271

99

284

101

292

8

Population (Million persons)

103

304

105

313

107

109

111

113

392

430

332

355

116

474

% or more

EBITDA※¥10.0

billion*Operating income +6

ROA% or moreROE

12% or more

Equity ratio

35% or more

Depreciation

118
523

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Shareholder Return Policy

Enhancement of corporate value through business growth
Pay dividends in accordance with earnings while maintaining the current
level of dividends
TAKAMIYA Report 2021

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Financial Information

Corporate and Share Information

Message from the
Chief Financial Officer

Hideki Yasuda
Director and Managing Executive Officer
Division General Manager of Corporate Strategy Division

Accelerating investment in transformation
to revamp our earnings structure
Under the 2021 Medium-Term Management Plan we will be propagating the determination to recoup past
investments in the form of profits among the work force, and by bringing the targets we have declared to
fruition, we will materialize the vision expressed in the Medium-term Management Plan.

Review of Results for the Fiscal Year Ended March 31, 2021

Review of the 2018 Medium-Term Management Plan

In the fiscal year ended March 31, 2021, net sales were
¥38.8 billion (down 15.7% year on year), and profit
attributable to owners of parent was ¥0.86 billion (down
63.8% year on year). Due to the spread of COVID-19, oursales and marketing activities stalled at the beginning of the
fiscal year as personnel started working from home, and as
a result, we were unable to win enough orders to cover theabsence of the large-scale projects for the extension of the
Hokuriku Shinkansen (bullet train), which were recorded in
the fiscal year ended March 31, 2020. In the Rental
Business, large-scale repair and maintenance work ofcondominiums, in particular, were frequently halted or
postponed, and the fiscal year came to a close without
seeing a peak in the third quarter onward, normally ourbusiest period. As for the Sales Business, with concerns
about the future outlook, many customers held off frommaking purchase decisions from the beginning of the fiscal
year. In the Overseas Business, business activities werelimited in the Philippines, where we have a sales subsidiary,
due to a lockdown. We strived to make it a fiscal year that
outperforms the fiscal year ended March 31, 2020, when
we recorded historical highs, and gain even more
momentum, but unfortunately the spread of COVID-19
hindered those plans.

The fiscal year ended March 31, 2021 was the final year ofour 2018 Medium-Term Management Plan. Under previous
Medium-term Management Plans, we invested a greatamount of money in rental assets in order to promote alarge-scale switchover to next-generation scaffolding, andwe positioned the 2018 Medium-Term Management Plan as
the phase to recoup that investment. Our aim was ontarget, and in the fiscal year ended March 31, 2020 weachieved our highest earnings ever. As for our financial
policy, we hit our targets for all our key performanceindicators (KPIs), namely equity ratio, ROE, and ROA, a year
earlier than planned.
Although the fiscal year ended March 31, 2021 saw lower
revenues and profits, which meant that we failed to hit the
KPI targets in the final fiscal year of the plan, I feel that interms of investment, we made solid preparations for
executing the 2021 Medium-Term Management Plan. For
example, we purchased land in Amagasaki City, Hyogo
Prefecture for the Takamiya Lab. West. One factor did notturn out as planned: in the Overseas Business, there was adelay in investment to boost rental assets in the Philippines.
We intend to resume investment while closely monitoring
the situation.

29

TAKAMIYA Report 2021

Investment Policy in the 2021 Medium-Term Management Plan

Getting the Frontlines on Board with ROI-Oriented Management

In our new 2021 Medium-Term Management Plan, we
expect economic recovery in the first fiscal year of the plan,i.e. the fiscal year ending March 31, 2022, to be moderate in
the wake of the resurgence of the COVID-19 pandemic.
However, for the final fiscal year of the plan, namely thefiscal year ending March 31, 2024, we are targeting
operating income of ¥5.0 billion, as investments aimed at
establishing the stock-type (commission-based) businessmodel will start bearing fruit by then. This means that we areeyeing operating income that is 35% higher than that for the
fiscal year ended March 31, 2020, when we achieved ourhighest earnings ever.
The current Medium-term Management Plan states ourmanagement v ision “cr e a t e new value thr oughtransformation and aim for sustainable growth by becoming
a partner to our customers.” To that end, we will aggressively
invest in the development of services that blend hardware(the tangible) and software (the intangible), with the main
focus being the Iq System next-generation scaffolding.
Of the total investment amount of ¥23.2 billion stated in
the current Medium-term Management Plan, a little under
half (¥11.0 billion) is investment in rental assets. Investment
in Takamiya Lab. West and in factories accounts for justunder ¥7.0 billion. We have earmarked the remaining amountfor IT systems investment. Among these investment
targets, at Takamiya Lab. West, which drives the current
Medium-term Management Plan, the first phase of
construction is set to be completed during 2021, with
operations ready to commence at the beginning of 2022.
During the second phase of construction, we will be
investing in automation and IT systems for the administrativeand logistics functions. Through this investment, we will
substantially shorten inbound and outbound turnaround at
warehouses. It will also fund a virtual exhibition and training
facility, where customers will be able to experience ourservices and learn how to use them safely, which will help
speed up our establishment of the stock-type businessmodel. We will also invest in factory automation (FA) toenhance the Iq System production capacity.
To boost productivity, it is essential to improve our officeenvironment. Although remote working gained traction
during the COVID-19 pandemic, we also value theimportance of teamwork. In addition to putting in place astructure for remote working, we are also emphasizing therole that offices play as locations for taking a breather orrecharging one’s batteries, as we believe that such relaxation
can bring about enhanced productivity. So we have madethe Nagoya Branch, which will be relocated during this fiscal
year, a model office for experimenting Takamiya’s workstylereforms. If the reforms prove to be effective, we plan to rollthem out to the Osaka and Tokyo offices later.

Our financial policy requires an equity ratio of at least 35%,
an ROE of at least 12%, and an ROA of at least 6%. In
particular, the equity ratio target has been revised upwardfrom that in the previous Medium-term Management Planof at least 30%. So we are now setting our sights evenhigher than that. We also emphasize ROA as an indicator of
how efficiently we have been deploying our corporate
resources. With the completion of Takamiya Lab. West, we
will further increase the marginal utilization rate for rental
assets to achieve this.
For the current Medium-term Management Plan, we have
set target of ¥5.0 billion in operating income in the final fiscal
year. Our stance is to always set lofty goals and then makeinvestments to achieve them, and I believe investors haveshown a high evaluation of this approach. In particular, by
establishing the stock-type business model, which is one ofthe objectives of the current Medium-term Management
Plan, we will bring about a major transformation of
Takamiya’s earnings structure. To steadily harvest and recoup
past investments and translate them into higher earnings, I
believe it is vital to inculcate within the Company the ideas
return on investment (ROI) and return on invested capital(ROIC). We will thereby shift to a management style that is
conscious of how much profit is being generated frominvestments made by each business division.

Further Raising Corporate Value through Transformation
We intend to return value to our shareholders by maintaining
stable dividends while increasing our corporate value
through proactive investment and ensuring that the market’s
assessment of us is reflected in our stock price. To that end,
we will be engaging in communication with shareholders
and other investors so that they can feel our growthpotential first hand. We appreciate your understanding of
Takamiya’s approach and hope you will support us over the
medium to long term.
We are positioning the period of the current Mediumterm Management Plan as a critical three-year period inwhich the Company will shift from its conventional businessmodel and show how we build our stock-type businessmodel. I believe that steadily performing what has to bedone during these three years and achieving our targets will
enable us to demonstrate massive growth in the three years
that follows. We appreciate your support and expectation in
our transformation to create new value.

TAKAMIYA Report 2021

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Financial Information

Corporate and Share Information

Source of Sustainability
Environment

Product Safety

Basic Approach

Basic Approach

When we founded the business, the majority of scaffolding used at construction sites in Japan was made of wood. The idea ofrental business came up from our thoughts on how we can save on wooden scaffolding which would be disposed after several
times of use. We started our rental business triggered by the import of steel scaffolding from abroad. The Group’s underlying
ideal is to use limited resources effectively and help realize a sustainable society.

Quality First is a fundamental idea at manufacturing sites. Our main product, scaffolding for construction, supports importantworks that are foundations of social life, such as buildings and apartments, construction of transportation infrastructure, andmaintenance and repair. We strive to improve quality every day, with the notion that maintaining our product quality contributes
to safe construction, which in turn leads to supporting the foundations of social life.

Contribution to the Environment through BusinessInitiatives for the Improvement of Safety

POGERO: A solar carport to create a sustainable future
As members of the community that aims for a decarbonated society,corporations are expanding the introduction of renewable energy. Some
corporations have started to introduce solar power systems on their premises
and on the roofs of their buildings, in order to utilize electricity for selfconsumption. On the other hand, the size of the site premises and the structureof existing buildings sometimes make it difficult to install solar power systems.
POGERO, our solar carport is a solar power system which enables the effective
use of parking spaces on premises. With the adoption of hot-dip zinc-coatedsteel sheets and design with a durable structure to withstand a windspeed of
38 m/s and snow accumulation of 99 cm, POGERO supports introduction plansof renewable energy by corporations toward the realization of a low-carbon
society and the implementation of BCP.

Our own quality control standard
A certain quality control standard formulated by the industry applies to temporary equipment
provided in the Rental Business.
In addition to following the quality control standard of the industry, we adopt and operate
our own quality control standard that is a level higher than the industry standard. We strive tomanage the quality of our rental assets aiming to prevent problems related to products before
they happen, with the help of regular performance tests by a third-party organization. Thus, wealways strive to provide safe and reliable equipment to customers.

Tiger Dam: Minimizing damage caused by typhoons and torrential rains
In recent years, Japan has experienced substantial damage from frequentlandslides and floods, particularly those caused by linear rainbands, inaddition to heavy rains and typhoons. In case of linear rainbands that start
off with an intense downpour right from the beginning, it is especiallydifficult to take measures against flooding with conventional sand bags.
Featuring the simple structure of filling a tube with water, Tiger Dam, ourdam system with easily fillable water bags to replace conventional sandbags, enables a small number of people to erect a portable dam 45 cm high and 15 m long in a short time. With length andheight flexibly adjusted by connecting and piling up products, it can protect vast areas from flooding. Removal is also easy,
involving draining water from each unit and folding. The product is reusable, making it environmentally friendly.

Environment-Friendly Business Activities
Reducing waste and gradual use of renewable energy
Gunma Factory, our mother factory, attempts to recycle andreduce left-over materials and grinding sludge generated in the
production process and waste generated in factory operation.
The factory is tackling the utilization of renewable energy stepby step and striving to reduce CO2 emissions by adopting a solar
power system for self-consumption.

Utilizing solar power systems for electricity storage and electric forklifts
While it is difficult to make all of our forklifts powered by electricity because
we have to lift heavy loads frequently, we have made efforts to reduce CO2
emissions by introducing electric forklifts that do not rely on fossil fuels fortransportation in the factory and for the transportation of equipment. In the
future, we will work on the utilization of stored electricity by solar power
generation for electric forklifts.

31

TAKAMIYA Report 2021

Thoroughly implement safe installation
We consider onsite safety as an important element of quality just like product quality. At
scaffolding installation sites we manage, we set our safety control indicators, and provide highquality installation, aiming for zero accidents based on thorough safety control.

Trust of Customers
Basic Approach
Staying worthy of the trust of customers is the most important theme of the Company. Customer needs are becoming
sophisticated day by day in such aspects as safety, efficiency, and response to digital transformation (DX) in construction. In
order to satisfy the needs, we provide services using the five arrows: development and manufacturing; sales; rental; design
and installation; and management and logistics. We aim to become the company of choice by brushing up the five arrows andresponding to the trust of customers.

Initiatives to Earn the Trust of Customers
Develop products with customers
We receive inquiries on products and services everyday. Feedback received through the Sales and Marketing Division are shared withrelated departments in the Company, and reflected in the process of brushing up our products and services. Some customers bringus requests and consultation related to the development and improvement of products. In order to materialize customer requests,
the Sales and Marketing Division implements interviews in detail including the background of requesting development, key attributes
required for the products, and preferred prices, and shares them with the Product Development Division to reflect in product design.
We pursue the commercialization of products through repeated dialogue with customers attended by the Product Development
Division. Fully engaging the five arrows, we also make proposals to customers in the process, such as easy-to-stow or easy-to-handle
features, packing style in transportation, mass production for supply as rental products.

TAKAMIYA Report 2021

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Foundations for Value Creation

Financial Information

Corporate and Share Information

Source of Sustainability
Human Resources
Basic Approach to Human Resources

Initiatives for Improving Employee Engagement

Based on our Mission Statement of “Love,” we conduct people-centered management under a Management Philosophy thatviews human resources as the essence of corporate strength. We recognize human resources as an exceedingly important
asset and a source of realizing the sustainable improvement of corporate value. Keeping individual employees highly motivatedand challenging higher goals ambitiously will enable a corporation to grow sustainably. We believe that the basis for achieving
sustainable growth is for a corporation to provide opportunities for the development of skills and careers of individual
employees and support them in achieving self-actualization so they can deliver their full potential, as well as develop a fair andconvincing personnel system and pay.

In order to achieve corporate goals and implement management strategies, it is ideal that a corporation shares management
vision with employees, based on which employees voluntarily act toward the goals while identifying and solving issues. On theother hand, if employees only deal with immediate tasks, it is difficult for them to sustain their motivation in the long run.
Instead of a mere give-and-take relationship, we aim to establish a high-level relationship (engagement) where bothmanagement and employees can understand each other and benefit from in a win-win situation. We are laying the groundworkfor individual employees to formulate tasks to tackle and independently work toward the accomplishment of the tasks.

Initiatives for Promoting Diversity
Hiring and deploying diverse resources will broaden choices for management, and drive growth and innovation. We believe that
respecting diversity, accepting diverse perspectives and personalities, and flexible thinking thus enabled will be the path to thesustainable improvement of corporate value.
Achieving Diverse Workstyles
We have been promoting working at home for the childrearing generation and the technology integration team. We
have also been encouraging employees, particularly those insales positions, to return directly home after work, and haveexperimented with flexible working hours. However, due tothe current impact of the COVID-19 pandemic, we are now
implementing these measures for all employees as a formof emergency response. Although we have been able tocontinue business relatively smoothly due to our established
IT environment, we have identified some issues needingattention in terms of our business continuity plan (BCP).
Going for ward, we will further promote digit altransformation (DX) and business process innovation. We
will also introduce communication tools and platforms
through which we can share our vision and measure results,
regardless of where employees work.

We changed our personnel system 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 carriedout once every two years, and more employees are applying
each year.
As for the way employees are evaluated, we are shifting
to a system that emphasizes results such as improving
efficiency or productivity rather than focusing on hours
worked or how earnestly tasks are executed. The current
situation where workstyle reform is progressing rapidly
presents the optimum opportunity to defy conventional
thinking. Through trial and error, the Company will promote
workstyle reform that enables employees to choose
workstyles and produce the best results.

Topics
Office Reform
Working from home has rapidly become familiar in our society since the spread of the COVID-19 pandemic. We had
introduced working from home for employees with difficulty in commuting to offices due to child care or nursing care.
Triggered by the COVID-19 pandemic, we have reviewed our business processes including the introduction of paperless
operations, the development of workflows, and the revision of operation flows, and succeeded to promote working fromhome also for those with no such specific necessity.
However, while working at home is free from burdens related to commuting and allows one to work flexibly, we haveidentified increased occasions for employees to feel stressed, such as insufficient consultation and communication onwork, difficulty in switching between work and private life, and lack of change in the scenery because one stays at home
for a significantly longer period of time.
Taking this opportunity, we have reviewed the value of offices and positioned them as places to rest and heal from areversed perspective. We believe that proactively solving insufficient communication or
stress will lead to health and productivity management, creation of new ideas, and in
turn, improve productivity.
With the concept of creating offices where our employees want to go, we will renew
our business sites one by one from April 2021, aiming to create spaces designed forcommunication, such as bar counters for eating and drinking, space for recreation
including yoga and games, space for online communication to connect with employees
across the country anytime, and open laboratory space for flexible interaction with
Our current Head Officebusiness partners.

33

TAKAMIYA Report 2021

Capability Development and Development ofAutonomous Employees
Development of autonomous employees requires animproved environment. We are working on such matters asproviding information to facilitate logical thinking, creating a
corporate culture that encourages taking on challenges,
establishing an appraisal system with tangible results,
developing measures to assist in creating ideas, andcreating a mechanism to assist in self-improvement.
Recently, we introduced a system to enable autonomous
career development and workstyle selection by providing acertain allowance (incentive) for those employees whotransferred to a new workplace of their choice and gained
new skills. We believe that these initiatives, coupled with
the individual values of employees, will generate diverse
ideas and lead to a respect for diversity that we promote.
One-on-One Meeting
We have introduced a one-on-one meeting system startingfrom the fiscal year ending March 31, 2022. By providing
regular meetings between supervisors and subordinates,
we aim to support the setting and achieving of individual
objectives, manage productivity through regular monitoringof progress, and increase the involvement of managers inworkplace management and human resource development.
We are developing a fair and convincing personnel systemand pay by providing occasions to think about and discusscareers in the future, setting objectives and monitoring
progress, providing support for achieving objectives, andgiving feedback on evaluation results. Discussions may also
include any other topic of choice, issues and concerns, aswell as career aspirations.
Visualization of Management Information
We are promoting disclosure of information such as
materials for timely disclosure, in order for employees toknow what we are doing in order to realize our management
vision which we disclose to society. In order for employees
to gain live corporate information, we will disclose how ourstrategies are carried out and the progress of projects tosolve management issues. Sharing the process of realizing
our management vision helps convey the management
approach, brings out questions and opinions, triggering
employees to consider it as their own affair. This will help
raise personnel who voluntarily participates in management.

Participation in In-house Projects
In addition to regular position-based training, the Group
organizes the Project Leader Conference to promotemanagement thinking and a for ward-looking approach
among a cross-departmental selection of mid-level andyoung employees who will be the leaders of the next era. A
number of projects are ongoing with selected members
taking up internal management issues. Members learn
management thinking through direct dialogue with the
President while engaging fellow employees from otherdepartments in the project. These projects have proven to
be extremely beneficial as opportunities for human resource
development and are increasing the motivation ofparticipants.
Development of Global Personnel
Human resource development is key for expanding theOverseas Business. To communicate with local businesses,
in addition to linguistic abilities, a great amount of expertiseis necessary ranging from an understanding of the businessto overall management. Furthermore, as M&As and allianceswith major overseas enterprises are integral to accelerating
overseas business development, it is essential to ensure
management skills in communicating with local staff andrefining the administration system post-acquisition. To that
end, we strive to improve the practical skills of employees
through on-the-job training from the beginning of theircareers. We also provide plenty of occasions for employees
to obtain various skills and take on challenges independently
without fear of failure.
Incentive System for Employee Stock Ownership Plan
Since April 2021, we have raised the incentive amount for
stock purchase through the employee stock ownership planfrom 5% to 10%. We support the asset formation of
employees through the employee stock ownership plan, andat the same time, we aim to enhance the engagement of
employees through holding Company stock.
We believe it is vital that employees and a corporation arealigned in the same direction for the sake of respecting
individual values and improving corporate value. We arepromoting initiatives so that the accomplishment of theCompany translates into the happiness of employees.

TAKAMIYA Report 2021

34

Business Strategies
Knowing Takamiya First-Hand

Sales Business
Sales Business

The construction market is experiencing increasing
demand for repair and maintenance work. In addition to
our efforts to establish the Iq System as the de facto
standard for next generation scaffolding, we will
strengthen sales of SPIDER PANEL, a panel-type hanging
scaffolding, and V-MAX, a hanging scaffolding system, as
our next mainstay products for the renovation of
expressways and viaducts. At the same time, we will
focus on proposal-based sales in anticipation of the
expanded demand for YT Lock System as a falseworksystem.

Takamiya’s Value Creation Story

Business Strategies

Corporate and Share Information

Net sales were down 21.6% year on year at ¥11,990 million, and operating income was down 27.4% year on year at¥1,404 million, reflecting the impact of restrained purchasing due to COVID-19 in the first half of the fiscal year.
Even under such an environment, the cumulative number of new Iq System users exceeded 400 companies. We willcontinue to develop peripheral components and equipment to establish the Iq System as the de facto standard and sell
the aluminum alloy board A-walk to break the mold of the industry, while taking care to fully absorb the robust demandfor hanging scaffolding in the maintenance and repair market.
Net Sales, Operating Income, and Operating Income Margin(¥ million)(%)

20,00020.0

15,00029.0%

15,29913,512

10,00015.0

11,990
12.4

12.6

11.7

10.0

5,000

5.0

0

Executive Officer
General Manager of Sales Department
Sales and Marketing Division

Financial Information

Results for the Fiscal Year Ended March 31, 2021

Percentage of Net Sales

Hidehiko Yamashita

Foundations for Value Creation

Net sales

1,670

1,934

1,404

2019

2020

2021

Operating income

Operating income margin

0(FY ended March 31)

Business Strategies in the Medium-Term Management Plan
Fully leveraging our competitive edge in the development
and manufacturing fields, we aim to achieve sales targetof ¥20.0 billion (of which, ¥10.0 billion from sales of the Iq
System) by establishing the Iq Sharing business,formulating a product strategy in line with customer
needs and expanding our sales and marketing network.

What We Do
We leverage our metalworking technologies and expertise in scaffolding to carry out a wide range of businesses
that develop, manufacture and sell proprietary products including light-duty temporary equipment such as Iq
System next- generation scaffolding, clamps, agricultural greenhouses, and damping devices. One of Takamiya’s
strengths is the ability to materialize what is needed at worksites by developing and manufacturing products.

Boasts the largest number of customers in the industry as
the leader in next-generation scaffolding
Rental business platform
One-stop operation 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
Improved transportation efficiency throughwarehouse stock located nationwide

S

W

Strengths

Weaknesses

O

T

Opportunities
Increasing demand for safety and efficiency atconstruction sites due to shortage of construction
workers
Frequent occurrence of natural disasters
Shortage of agricultural workers due to the aging populationand other factors
Increase in public works for economic revitalization
Restructuring of supply chains

35

TAKAMIYA Report 2021

Need for productivity improvements
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

Establishment of the sharing businessWe propose the effective use of temporary equipment
through the Iq Sharing System, which enables customers to
reduce their equipment management costs, labor costs, andother expenses.
We will establish a system to ship our equipment from ourequipment centers throughout Japan, which are facilities
certified by the Scaffolding and Construction Equipment
Association of Japan, as well as maintenance services for the
Iq System and other aluminum-made products throughthorough quality control, thereby maintaining high asset value.
Expansion of warehouse stock
We plan to expand our inventory of products for sale byutilizing Takamiya Lab. West to be opened in Amagasaki City,
Hyogo Prefecture. In addition, we will expand our warehousestock in the Kanto coastal area, Tohoku, Kyushu, andHokkaido, and establish a direct delivery system fromoverseas factories in Vietnam and South Korea to thewarehouses in Japan, aiming to improve transportation
efficiency.

Establishment of platform business
By fully leveraging our temporary equipment infrastructure,
we provide consulting services on temporary equipment to
identify customer needs.

TopicsHanyu Aisai Project: Conducting Cultivation
Demonstrations in Agricultural Greenhouses
We have launched the Hanyu Aisai Project in Hanyu
City, Saitama Prefecture. In the first phase of the
project, we built an agricultural house, G-Castle
Neo48, a new product, as our demo cultivation
facility to test how it improves the yield and qualityof crops.
The Hanyu Aisai Project incorporates IT and IoTtechnologies to demonstrate cultivation methods
that improve the yield of crops and cultivation
systems that help grow high-quality crops. We will
also work on the development of highly functional
cultivation facilities for farm producers, whichenables labor-saving in farm work, kaizen activities,
and the introduction of labor management systems.
Data on the environment inside the greenhouse is
obtained using sensors to be accumulated andvisualized. By controlling various facilities using thedata obtained, we aim to achieve agriculture that
does not need to rely on years of knowledge.

Making palletizing the norm in the industry by developing
various pallets
We will develop various types of pallets for our products, build
an inventory management model using those pallets at ourequipment centers, and standardize pallet transportation fortransporting temporary equipment. We will also conductproposal-based sales of these pallets to peer companies.

TAKAMIYA Report 2021

36

Business Strategies
Knowing Takamiya First-Hand

Rental Business
Rental BusinessIn the construction scaffolding mark et, amid thewidespread popularization of next-generation scaffolding,
the Company’s Iq System maintains its top share. As an
increasing number of peer companies adopt the Iq
System as next-generation scaffolding, we will propose tothem the panel-type hanging scaffolding SPIDER PANEL
with superior safety features to build on our track record.
Seeing a synergistic effect in proposal-based sales thatleverage our strengths in development, manufacturing,sales, rental, and construction, we will further capitalize
on our competitive edge in the industry.

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Net sales were down 8.1% year on year at ¥24,009 million, and operating income was down 40.7% year on year at¥1,793 million.
In the fiscal year ended March 31, 2021, while public works projects remained strong, some private projects
experienced decreases in shipments of temporary equipment at the construction sites due to interruptions and delays inconstruction as well as postponement of construction starts caused by the spread of COVID-19. On the earnings front,
the operating income margin declined due to an increase in equipment maintenance fees as a result of the return of
temporary equipment following the completion of the Hokuriku Shinkansen extension work, and an increase in costs fortransporting temporary equipment following the relocation of equipment centers.
Net Sales, Operating Income, and Operating Income Margin(¥ million)(%)

30,00030.026,11823,51958.1%

24,00920.0

20,000

11.6

10.5

10,000

3,025

2,464

0

Tsutomu Abe

Corporate and Share Information

Results for the Fiscal Year Ended March 31, 2021

Percentage of Net Sales

2019
Net sales

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

Financial Information

2020

Operating income

Operating income margin

7.5

10.0

1,793

0

2021
(FY ended March 31)

Business Strategies in the Medium-Term Management Plan
We will implement the following measures in theMedium-Term Management Plan in order to respond tochanges in demand for construction work, supply
temporary equipment in a safe and efficient manner, andmake the most of the Company’s competitive edge.

What We Do
Through rental services, we provide light-duty temporary equipment for all kinds of worksites, including
buildings, bridges, ultra-high-rise building renovations, tunnels and underground worksites, as well as scaffolding
and falseworks in times of disaster. Our in-house functions for contract scaffolding installation work and scaffold
plan drafting are strengths that enable us to provide comprehensive customer-oriented services.
Iq System
Scaffolding Construction Department and network of partner
contractors
Product lineup and technological capabilities applicable inany field, including buildings, civil engineering and plants
Early completion of investment in renewal of assets for rent
Equipment centers near urban areas
Joint development of construction methods and productswith construction companies
Creditworthiness as a listed company
Coordination among Group companies
Credibility to customers
Strengths

S

O

Increasing demand for safety and workability atconstruction sites due to shortage of construction
Opportunities
workers
Increase in large-scale projects near urban areas
Urgent need to redevelop aging infrastructure
Construction to increase the number of lanes forexpressways
Rising logistics costs and shortage of drivers
Paradigm shift in the industry due to the spread of ICT
Increase in demand for capital investment post-COVID-19
Supply of equipment to respond to natural disasters

37

TAKAMIYA Report 2021

W

Low share in the Kanto region, Japan’s largest
marketElectronic order platform not yet in place
Understanding the operating status and inventory
status of rental assets that involve a time lag
Most equipment centers are located in suburban
areas
Many servicing procedures rely on manual laborLong standby times for drivers when shipping
equipment

Weaknesses

T
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
Pressure on profits from rising steel prices

Establishment and expansion of sharing centers
To make the Iq System the de facto standard for nextgeneration scaffolding, we will establish a temporar yequipment sharing business. We will create a new businessmodel for streamlining the use of temporary equipment by
establishing a sharing center in Amagasaki City, Hyogo
Prefecture. We are also planning to establish one in the Tokyo
metropolitan area in the near future.
Introduction of web-based ordering system
We will launch a web-based rental order system. The systemprocesses information in real time from order receipt toshipment, leading to labor saving and operational efficiency,
thereby responding quickly to customer needs.
Response to Linear Shinkansen-related work
In preparation for the full-scale Linear Shinkansen-related
work, we opened an equipment center near the railroad line
to be constructed in Iida City, Nagano Prefecture. We will
support the overall construction work by making the most of
our know-how, through the timely supply of temporary
equipment according to the progress of the construction plan,
as well as technical support and labor.
Expansion of works and construction systems
To meet the increasing demand for maintenance and repair
works, we will focus on securing and training construction
managers. We will also secure partner contractors andworkers to ensure a safer construction management system.

3D design and digital construction management by introducing
building/construction information modeling (BIM/CIM)
We will build an efficient and high-quality building production
and management system by sharing information at eachstage of planning, research, design, construction, andmanagement in the building production system using thelatest ICT.
Digital transformation (DX) for managing sales organizations
Customer relationship management (CRM) and salesforce
automation (SFA) will be introduced to improve operational
efficiency and labor productivity. We aim to improve earnings
and reform the way sales employees work by visualizing theirknow-how and quantifying customer information.

Topics
Initiatives to Improve Safety and Workability ofHanging Scaffolding Systems
In order to respond to the expected increase in demand for repair
works on transportation infrastructure such as highway viaducts
and bridges, we are focusing on expanding the adoption of thehanging scaffolding system V-MAX and the panel-type hanging
scaffolding SPIDER PANEL. The Hanging Scaffolding System
Association, which was established last fiscal year, is making
daily efforts to improve the products and installation methods for
hanging scaffolding, as well as to improve the safety, health, andrationalization of construction work and the construction
environment. With major
general contractors, we will
jointly develop additional
components to improvesafety and workability, andbuild a system that can
provide support both intangible and intangible
aspects.

TAKAMIYA Report 2021

38

Business Strategies
Knowing Takamiya First-Hand

Overseas Business
Overseas BusinessIn the fiscal year ending March 31, 2022, the outlook
remains uncertain due to the impact of the COVID-19
pandemic. In particular, the Philippines continues to face a
difficult situation as a countrywide lockdown has been inplace for more than a year, but we are working toestablish a foundation that will contribute to the Group’s
earnings once COVID-19 is contained.
We also intend to actively build a network in Asia todevelop products tailored to the local market.

Takamiya’s Value Creation Story

Business Strategies

Percentage of Net Sales

Net Sales, Operating Income, and Operating Income Margin(¥ million)

(%)

8,000

7,535

12.8%

4,000

10.0

2,000

0.3

Operating income

Three-year policyFirst, we will secure our foothold. Specifically, we will
create a system to collect correct management information,
strengthen our financial base, and build an alliance networkin the Asian region. Based on the network, we intend toactively develop and manufacture products for the Asianmarket.

Business management system issues
Local management
Different perceptions of governance due todifferences in habits and customs
Marketing to attract new customers

S

W

Strengths

WeaknessesO

T
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
Political relations

5.0

5.6
24

410

2019
Net sales

The Overseas Business primarily operates in three countries in the ASEAN region: the Philippines, Vietnam andSouth Korea. We will continue to strengthen our earnings base as a pillar for sustained growth through theorganic coordination of our production base in Vietnam, our rental sales base in the Philippines, and ouroperations in South Korea, which provide both manufacturing and sales functions.

15.0

5,300

0

What We Do

TAKAMIYA Report 2021

20.0

7,306

6,000

Business Strategies in the Medium-Term Management Plan

39

Corporate and Share Information

In the Overseas Business, net sales were ¥5,300 million, down 27.0% year on year, and an operating loss of ¥99 million
was recorded. Hory Korea Co., Ltd. is making progress in improving its financial position in line with improved profitability
in its rental business. We believe that we will be able to bring the company back on the growth stage during this MediumTerm Management Plan period by making further improvements on the financial front. In the Philippines, its economic
activity has been hampered by the COVID-19 lockdown that has continued for more than a year. The situation continues tobe severe with many construction sites having suspended their operations. In the past year, we have worked tostrengthen our financial position so that it will lead to an improvement in earnings after COVID-19 is contained.

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

Opportunities
ASEAN’s economic development, period of
population growth
Active investment in infrastructure development in ASEAN
Demand for plants and solar energy to cope with energy
shortages and decarbonization
Increased safety awareness at construction sites in South
Korea
Diverse and talented human resources

Financial Information

Results for the Fiscal Year Ended March 31, 2021

Ryuji Arai

Adoption and deployment of domestic expertise andbusiness models
Linkage among overseas Group companies
Recognition of the Company in South Korea and thePhilippines
Track record of transactions with major local construction
companies
Employment of local staff
Improved production capacity through factory
expansion
Network in ASEAN

Foundations for Value Creation

Securing our footholdHory Korea
From securing a foothold to entering the
growth stage―Hory Korea has been reforming its corporate
structure over the past two years. Through educating andraising awareness of employees on the basic concepts ofwhat is a company, what is corporate management, and what
is cash flow management, we expect to see improvements in
our profitability and financial position, achieving a financial
position with substantially enhanced soundness in the current
fiscal year. Over the next three years, we plan to establish
businesses that will drive new growth, bringing the company
into the growth stage.

2020
Operating income margin

-99
-1.9

0

2021
(FY ended March 31)

DAI The Philippines has been in a lockdown for more than ayear due to the COVID-19 crisis, leaving its economic activity
stagnant. However, as seen in other countries, all theinvestments that are currently suspended may resume atonce after COVID-19 is contained. In order to enhance its
comprehensive capabilities as a company by then, DAI has
been visualizing management as much as possible, identifying
problems, considering improvement measures, andimplementing them through cooperation between the local
team and Japan HQ. With its growing market share andpresence in the Philippines, we expect it to become acompany that achieves a high ROI after the COVID-19
pandemic ends.

Network building and product development in Asia
Over the next three years, we will build a full-fledged networkof alliance partners in areas other than those where we
operate.
We also plan to aggressively develop and sell products
in Asia with our alliance partners who have strong
relationships with customers in the region.

TopicsIncreasing Our Presence in South Korea
Currently, there is a growing international movement to achievecarbon neutrality by 2050.
Hory Korea has been engaged in the solar panel installation
business in South Korea since 2014, and has completed theinstallation of solar panels at 54 locations in the country with a total
power generation capacity of 174.1 MW. In particular, the 65 MW
solar panel project ordered by Hyundai Engineering & Constructionand Hyundai Heavy Industries (HHI) Green Energy, developed on theformer site of Hyundai Livestock Farm in Seosan City, South Korea,
was the first large-scale solar panel power plant in South Korea.
Developing and installing a mounting system that can be kept
horizontal on soft ground in this project has greatly improved theCompany’s profile in the industry. Renewable energy facilities arebeing installed on the slopes of dams and on the premises of thermal
power stations, which used to serve as power plants. It is expectedthat corporate initiatives will accelerate toward carbon neutrality withan aim to reduce CO2 emissions. We will continue our efforts toincrease orders to support the international community in that regard.

Project name: Seosan Solar Capacity: 65,000 kW
Ordered by: Hyundai Engineering & Construction, Hyundai Heavy
Industries (HHI) Green Energy

Project name: Yecheon Pumped Storage Power Plant (dam) and Solar Power Plant
Capacity: 2,000 kW
Ordered by: Kyungwon, Taihan Techren

Project name: Yongdong Thermal Power Plant and Solar Power Plant
Capacity: 1,064 kW
Order by: Taihan Techren

TAKAMIYA Report 2021

40

Foundations for Value Creation
Knowing Takamiya First-Hand

Corporate GovernanceTakamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Board of Corporate Auditors*

Number of meetings

Takamiya’s Corporate Governance System
The Company adopts a company with a Board of Corporate Auditors system, consisting of the Board of Directors, which
includes Outside Directors, and the Board of Corporate Auditors, which includes Outside Auditors. The Board of Directors
provides strategic guidance and management supervision, and the Board of Corporate Auditors audit Directors’ execution ofduties by attending and giving their opinions at various important meetings, such as those of the Board of Directors. The
Board of Directors makes decisions on important managerial matters and supervises the execution of duties by Directors.
Having Outside Directors enables the inclusion of diverse points of view in important decision-making as well as effective
supervision of the Company’s management from their objective standpoint.
The Company has also introduced an Executive Officer system under which Executive Officers are appointed separatelyfrom Directors, who are elected in accordance with Japan’s Companies Act. The Company believes that this will enablebusiness operations determined by the Board of Directors to be executed in a prompt and efficient manner.
The Company’s Board of Directors consists of eight Directors of outstanding character, possessing insight, capabilities,
abundant experience and high ethical standards. Factors such as expertise in management, sales and marketing, technology,
overseas business, finance and accounting, and law, as well as diverse backgrounds and experience, were taken into
consideration when selecting members of the Board of Directors. We recognize that securing human resources with anemphasis on diversity, such as appointing female directors, are our ongoing tasks.
Corporate Governance System (As of March 31, 2021)
General Meeting of Shareholders
Appointment/Dismissal

Appointment/Dismissal

Board ofCorporate Auditors

Board of Directors
Audit
Selection/Dismissal/Supervision
Instruction

Cooperation

Management
anddecision-making

SupervisionInternal auditing

Business
execution

Cooperation

Affiliated subsidiaries
Accounting Auditor
Accounting audit

Board of Directors*Independent Directors

Number of members: 8 [of which, Outside Directors: 2]*

Number of meetings*

Ordinary:

16 Extraordinary: 5

Attendance rate

Directors

Corporate Auditors

99%

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, with terms of office of one year in order to ensure flexible, responsive
corporate management. In addition to the monthly regular meeting of the Board of Directors, extraordinary meetings are held whennecessary. In addition to making decisions on matters specified by laws and regulations and important matters involving
management, the Board of Directors constantly monitors the execution of management duties.

TAKAMIYA Report 2021

97%

Nomination and Compensation Committee
In order to strengthen the independence, objectivity and accountability of the functions of the Board of Directors, theCompany established a Nomination and Compensation Committee on April 21, 2021 as an advisory body to the Board of
Directors, which makes recommendations on matters related to the nomination and compensation of the Company’s senior
management and Directors. The Committee consists of six members: two Outside Directors, two Outside Corporate
Auditors, and two inside Directors, and is chaired by an Outside Director. Outside Directors and Outside Corporate Auditors
provide unreserved opinions, advice, and comments from an independent and objective perspective regarding matters not
limited to the nomination and remuneration of the Company’s senior management and Directors. As such, we believe thetransparency and objectivity of the Company’s Board of Directors are ensured.

Status of Directors and Corporate Auditors (As of June 24, 2021. Figures on the meeting attendance and attendance rate are for the fiscal year ended March 31, 2021.)
Structure of the Board of Directors

Structure of the Board of Corporate Auditors

Name

Board of Directors meeting
attendance/ attendance rate

Expertise

Kazumasa Takamiya

16 times/100%

Management

Akiyoshi Takamiya

16 times/100%

Management and sales andmarketing

Hideki Yasuda

16 times/100%

Tsutomu Abe

Board of Directors meeting
attendance/ attendance rate

Board of Corporate Auditors meeting
attendance/ attendance rate

Yasushi Shimizu

16 times/100%

9 times/100%
Note: Appointed in June
2020

Finance and accounting

Yoshihiro Sakatani

16 times/100%

11 times/100%

16 times/100%

Sales and marketing

Teiji Joko

13 times/81%

10 times/91%

Yuki Mukaiyama

16 times/100%

Overseas operations,management and new business

Tomoya Tatsumi

Note: Appointed in June 2021

Finance and accounting

Kouji Shimokawa

16 times/100%

Taxes and accounting

15 times/94%

Financing, finance andmanagement

Name

Criteria for the Appointment of Directors and Corporate Auditors

Supervision

Business divisions

Cooperation

41

Corporate Auditors

The Board of Corporate Auditors is comprised of one full-time Corporate Auditor and two part-time Corporate Auditors for a total ofthree members, and meets once a month, in principle. In accordance with the policies determined by the Board of Corporate
Auditors, the Corporate Auditors audit the Directors’ execution of business by attending various important meetings such as thoseof the Board of Directors, inspecting important documents and investigating business affairs and asset conditions.

Noboru Furuichi

Report10 Extraordinary: 1

Representative Directors

ReportCooperation

Internal Audit OfficeNomination andCompensation
Recommendation
Committee

Consultation

Audit

Attendance rate*

Ordinary:
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. We will contribute to the development of users and the industry as a whole through the stable supplyof safe, high value-added products, build an industry that is clearly recognized for its excellence by the general public andinvestors, and aim for sustainable development in a highly transparent business environment.

Corporate and Share Information*Independent Corporate Auditors

Number of members: 3 [of which, Outside Corporate Auditors: 2]

Basic ApproachAppointment/Dismissal

Financial Information

The appointment and dismissal of candidates for Directors and Corporate Auditors are determined by a meeting of the Boardof Directors after consulting with and receiving recommendations from the Nomination and Compensation Committee, basedon relevant regulations including the Regulations for Professional Organization of Officers and the Nomination andCompensation Committee Regulations. Comprehensive consideration is given to the career history, track record, knowledge,
experience and capabilities of each candidate.
Furthermore, 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 character and insight, as well as being such individuals as will contribute to thegrowth and improvement 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 field such 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 ethical standards and objective, fair and impartial judgment capabilities. The
candidates must also have the adequate experience and capabilities as Corporate Auditors and a high 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 no conflicts regarding their
independence.
For the dismissal of Officers, if an Officer has deviated from the above appointment criteria and it is deemed reasonable to dismiss him/her from an
objective viewpoint, a resolution shall be made at a meeting of the Board of Directors after having sufficient discussions while consulting with andreceiving recommendations from the Nomination and Compensation Committee attended by Independent Outside Directors and Independent Outside
Corporate Auditors.

TAKAMIYA Report 2021

42

Foundations for Value Creation
Knowing Takamiya First-Hand

Corporate GovernanceTakamiya’s Value Creation Story

Business Strategies

Fiscal Year Ended March 31, 2020
Category

The Company does not currently have a specific plan for successors for positions such as the Chief Executive Officer.
However, we recognize succession planning as an important management issue and we are nurturing candidates from the
management team (Directors and Executive Officers). We will continue to engage in constructive discussions on the approachto the appropriate implementation and supervision of succession planning at meetings of the Board of Directors and its
advisory body, the Nomination and Compensation Committee, which was established on April 21, 2021.

The Company has conducted questionnaires with Directors and Corporate Auditors regarding the effectiveness of the Boardof Directors. We analyze and evaluate the structure and operations of the Board of Directors as well as the role of Board of
Directors in management strategy decisions and the supervisory function.
In the fiscal year ended March 31, 2021, while there is room for improvement as pointed out in opinions about securing
diversity in the Board of Directors and developing successors for the Chief Executive Officer, it was deemed that the Board
largely maintains its effectiveness. Going forward, we will further improve the effectiveness of the Board of Directors basedon these analyses and evaluations.

Remuneration for Directors and Corporate Auditors
Remuneration System for Directors and Corporate Auditors
The Company has established a policy regarding the determination of the amount of remuneration for Officers or its
calculation method, which states that the officer remuneration consists of fixed remuneration according 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. Through thorough evaluation based on theinterests of shareholders, we are working to ensure the long-term sustainable growth of the entire Group and enhance
corporate value. Meanwhile, the remuneration of Outside Officers consists only of basic remuneration from the perspectiveof their roles and independence.
Bonuses, which are short-term, performance-linked remuneration, are paid within the limit of the total amount of
remuneration for Directors resolved at the General Meeting of Shareholders when the consolidated operating income target
for a single year is achieved. Stock-based remuneration stock options, which are a medium- to long-term incentive, aregranted based on the position factor set in the Company’s regulations within the limit of the total amount of stock options
provided for in a resolution by the General Meeting of Shareholders. The respective proposals for bonus payment and granting
stock options are submitted to the Board of Directors, which determines and grants the bonuses and stock options after
consulting with and receiving recommendations from the Nomination and Compensation Committee.

For the fiscal year ended March 31, 2021, remuneration for Directors and Corporate Auditors was as follows:

Corporate Auditors(excluding Outside Corporate Auditors)
Outside Officers

Total remuneration(¥ thousand)Fixed remuneration

Performance-based
remuneration

Medium- to l
ong-term incentive(stock options)

51,346

Number of eligible
individuals(Persons)

284,758

233,412

6

9,600

9,600

2

13,56013,5604

Notes:
1. The total amount of remuneration for Directors does not include the employee salary portion for those who concurrently serve as an employee.
2. It was resolved that the limit on Directors’ remuneration shall be up to an annual amount of ¥500 million (not including employee salaries for Directors) at the 49th Ordinary General
Meeting of Shareholders held on June 28, 2017 (number of Officers in relation to the said resolution: 6).
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 53rd Ordinary General Meeting of Shareholders
held on June 24, 2021 (number of Officers in relation to the said resolution: 6).
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 (number of Officers in relation to the said resolution: 3).
4. The above includes the remuneration for one Corporate Auditor who retired on June 25, 2020.

43

TAKAMIYA Report 2021

Fiscal Year Ended March 31, 2021

Fees paid for audit certification work(¥ thousand)Fees paid for non-audit certification work(¥ thousand)Fees paid for audit certification work(¥ thousand)

32,0001,700

35,80032,0001,700

35,800

The Company

Fees paid for non-audit certification work(¥ thousand)Consolidated subsidiaries
Total

Non-audit certification work paid for by the Company is the preparation of comfort letters, which is work other than those stipulated in Article 2, Paragraph 1 of the Certified

For the fiscal year ended March 31, 2021, fees paid to Ernst & Young member firms, which are members of the same EY network of the Company’s certified public accountants, was as follows:
Fiscal Year Ended March 31, 2020
Category

Fees paid for audit certification work(¥ thousand)

The Company

Fiscal Year Ended March 31, 2021

Fees paid for non-audit certification work(¥ thousand)Fees paid for audit certification work(¥ thousand)Fees paid for non-audit certification work(¥ thousand)

612

480

Consolidated subsidiaries

4,935

4,027

5,103

1,308

Total

4,935

4,639

5,103

1,788

Non-audit certification work paid for by the Company is tax consultation. Non-audit certification work paid for by consolidated subsidiaries is preparation of corporate tax
returns, tax consultation and others.

Communications with Shareholders and Investors
The Company has designated the PR & IR Department as the department in charge of investor relations and the Division
General Manager of the Corporate Strategy Division, who is responsible for IR affairs, as the contact person. In addition, thePR & IR Department works together with the General Affairs Department, Accounting Department, Legal & ComplianceDepartment and other related departments to share information and prepare disclosure materials. As opportunities for
dialogue with our shareholders and investors, we hold general meetings of shareholders, company information meetings,
financial results briefings, etc. as needed, and enhance our website to facilitate their understanding of our business.
Moreover, we release the videos and materials of our financial results briefing to the public in Japanese and English. We also
publish our convocation notices in Japanese and English on the Internet, and are enhancing the content of briefing sessions
for individual investors.
For individual investors

For analysts and institutional investors

IR website

Briefings for individual investors
January 30, 2020, Tokyo (hosted by Japan Investor
Relations and Investor Support, Inc.)
December 12, 2020, online (hosted by NIKKEI RADIO
BROADCASTING CORPORATION)
February 3, 2021, online (hosted by Japan Investor
Relations and Investor Support, Inc.)

Total remuneration by type (¥ thousand)Directors

Corporate and Share Information

Public Accountants Act (non-auditing services).

Evaluations of the Effectiveness of the Board of Directors(excluding Outside Directors)

Financial Information

Details of Audit Fees, etc.
For the fiscal year ended March 31, 2021, audit fees paid to certified public accountants and others were as follows:

Succession Plan

CategoryFoundations for Value Creation

We hold briefing sessions both online and offline with speakers
such as the Company’s Officers. The date and time of each
event are announced on our website.

Video distribution of financial results briefings: twice ayear (year-end and the second quarter)

Our website for investors in Japanese
https://www.takamiya.co/ir/

Individual meetings: conducted online

Our website for investors in English

We distribute a video presentation of our financial
results twice a year. The President and Chairman andother Company Officers provides briefings on our
performance and earnings forecasts. Materials andvideos are available on our IR website.

We have set up a page for Investors on our
website to provide timely disclosure informationsuch as the Financial Result Summary and otherinformation for investors such as Presentation
Sheets, the Annual Report, and Historical Data.

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

Risk Management, Internal Control and Compliance
The Group has established the basic policy and other matters concerning risk management in the Basic Rules for Risk
Management. In addition, we have established the Risk and Compliance Committee, with the Legal & ComplianceDepartment acting as the administrative office. The Committee discusses issues and measures regarding the promotion ofCompany-wide risk management in order to appropriately manage and respond to the variety of risks that surround ourbusinesses.
For internal control, we have developed a system in which internal checking operates between departments and clarifies
the division of duties by establishing internal regulations and other rules. In addition, the Basic Policy for Internal Control andthe Basic Policy for Financial Reporting outline systems to ensure that the Directors comply with laws and the articles ofincorporation when conducting operations, and also to ensure proper operations of the Company.
For the compliance system, we have outlined the Compliance Standards and the Code of Conduct in the Compliance
Manual. We have established the Risk and Compliance Committee, with the Legal & Compliance Department acting as theadministrative office, to discuss specific compliance initiatives to be implemented 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.
Additionally, we seek advice and guidance as needed from our corporate lawyers regarding our daily operations andmanagerial decisions.
TAKAMIYA Report 2021

44

Foundations for Value Creation
Knowing Takamiya First-Hand

Messages from the Outside Directors

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Directors, Corporate Auditors and Executive Officers

Corporate and Share Information(As of June 24, 2021)

Directors

Kouji Shimokawa

Noboru Furuichi

Director

Director

Monitoring the progress in the four basic
policies of the new Medium-term Plan

Aiming to realize the management vision by
supporting risk taking

The four basic policies are “Diversification of earnings base,”“Establishment of manufacturer functions,” “Innovation ofmanagement system,” and “Establishment of overseas
business bases.” Corporate value will be increased through thesynergistic effects of achieving these four policies, and merely
achieving one or some of them will be insufficient. To that end,
I am interested in whether the Company can promote all fourof these policies in the current Medium-term Management
Plan. The current Medium-term Management Plan also has
ambitious plans, such as investment in Takamiya Lab. West.
My concern is whether these bold investment plans are
conducive to enhancing corporate value, including capitalefficiency.
Drawing on my experience in corporate finance &accounting and domestic/overseas taxation, I will confirm how
the Medium-term Management Plan is proceeding from afinancial viewpoint as well to help achieve the goals of the plan.
In particular, I will pay attention to the steps Check and Act of
the PDCA cycle, so as to ensure that decisions are made andmeasures are taken that will lead to improvement whilepursuing lively discussions at the Board of Directors meetings.

The basic policy, “Build a stock-type (commission-based)business model” in the new Medium-term Management Plan,
is the core business strategy for realizing the management
vision “Create new value through transformation and aim forsustainable growth by becoming a partner to our customers.”
To achieve this, many issues need to be resolved going
forward, and the Board of Directors must fulfill its role andresponsibilities as part of that process. Personally, as an
outside director, I will put my knowledge and experience to
use and keep raising issues so that the Board of Directors canmake bold decisions following vigorous discussions, whileproperly controlling risks.

Being mindful of intangible value that is difficult
to quantify
Corporate value may be enhanced through two types of
initiatives; those that directly translate into financials, and thosethat do not, such as efforts in human resources, diversity andclimate change. While the Company’s human resource
measures show that workstyle reform is effectively promoted,
there is still room for improvement in diversity and inclusion. A
new requirement is applied for disclosure on our response to
climate change, but the Company’s disclosure operation needssome catching up to do. The Company’s challenges are to put
its ideals into practice and to be able to communicate this bothinternally and externally, and I would like to offer advice in thatregard. I will push the Company to improve its governance tobe mindful of intangible value that does not appear in financials,
in addition to, needless to say, value that can be measured
financially.

45

TAKAMIYA Report 2021

Kazumasa Takamiya

Akiyoshi Takamiya

Hideki Yasuda

Tsutomu Abe

Representative Director, President andChairman
Supervisor of Scaffolding Management
Division, Overseas Business Division,
Product Development Division

Representative Director, Executive Vice
President
Supervisor of Scaffolding Management
Division, Overseas Business Division,
Product Development Division

Director and Managing Executive Officer
Division General Manager of Corporate
Strategy Division

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

Yuki Mukaiyama

Tomoya Tatsumi

Kouji Shimokawa

Noboru Furuichi

Director and Executive Officer
Division General Manager of
Manufacturing Division
Super visor of Global Procurement
Division

Director and Executive Officer
Division General Manager of Business
Management Division

OutsideIndependent
Director
Important concurrent positions:Representative Partner of Shimokawa &Partners Accounting Corporation

Director

OutsideIndependent

Corporate Auditors

Calling for diversity and inclusion
Recent revisions to Japan’s Corporate Governance Code not
only call for the familiar issue of strengthening functions of theBoard of Directors, but also strongly demand that actions betaken to tackle sustainability issues and secure diversity.
Despite this backdrop, there is much work to be done by theCompany in securing diversity. Transformation requires letting
go of old concepts in the industry, and to that end, we must
deploy personnel with diverse values, regardless of gender ofnationality, so we can diversify our viewpoint in management.
Based on an updated understanding of trends at othercompanies and developments in society, I will continue toemphasize the importance of securing the Company’s diversity
at Board of Directors meetings so we can grow sustainably.

Yasushi Shimizu

Yoshihiro Sakatani

Teiji Joko

Corporate Auditor (Full-Time)

OutsideIndependent
Corporate Auditor
Important concurrent positions:
President and Representative Directorof Japan Management Consulting K.K.

OutsideIndependent
Corporate Auditor
Important concurrent positions:Representative Partner, Yodoyabashi &Yamagami LPC

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 andIndependent Corporate Auditors
pursuant to the regulations of the
To k y o S t o ck E x ch a n g e a n dregistered them as such at thestock exchange.

Kazunori Kawakami

Takahiro Shozaki

Takashi Masuno

Ryuji Arai

Senior Executive Officer, Regional
Manager of Sales & Marketing Division,G e n e r a l M a n a g e r o f S c a ff o l d i n g
Construction Department, Tokyo Branch
General Manager andSupervisor of Agribusiness Development
Department

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

Senior Executive Officer
General Manager of Global Production
Engineering Department, Manufacturing
Division

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

Hidehiko Yamashita

Takashi Nagumo

Mitsunori Yamato

Tetsuya Aoki

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

Executive Officer
Division General Manager of ProductDevelopment Division

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

Executive Officer, Regional Manager ofSales & Marketing Division and Osaka
Branch General Manager
Supervisor of Business Development
Division

Hiroshi Koda

Shinri Ueda

Takashi Kawabata

Eizo Aihara

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

Executive Officer
General Manager of Global Quality
Assurance Department, Manufacturing
Division

Executive Officer
General Manager of Corporate Planning
Department, Corporate Strategy
Division and General Manager of PR &IR Department

Executive Officer
General Manager of HR Department,
Business Management Division

Executive Officers

TAKAMIYA Report 2021

46

Financial Information
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

11-Year Financial Summary
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

17,49023,201

28,11332,44334,26134,35036,76336,11442,182

46,06538,812

Operating income

722

1,037

1,605

3,051

3,098

2,983

2,429

1,690

2,713

3,703

1,586

Operating income margin (%)

4.1

4.5

5.7

9.4

9.0

8.7

6.6

4.7

6.4

8.0

4.1

Ordinary income

621

1,080

1,553

3,006

3,325

2,731

2,337

1,610

2,662

3,541

1,569

Profit

302

755

807

1,768

2,070

2,153

1,516

1,252

1,637

2,370

857

Investments in rental assets

1,663

3,687

2,850

2,381

5,577

7,227

5,447

3,757

2,467

2,768

2,091

Depreciation

2,745

3,088

3,280

3,369

3,649

4,137

4,502

4,662

4,777

4,804

4,815

17

47

50

45

88

74

81

64

62

88

84

EBITDA

3,468

4,126

4,886

6,421

6,747

7,120

6,932

6,353

7,491

8,508

6,402

Cash flows from operating activities

2,483

669

1,575

2,839

(1,620)(1,081)

1,163

1,714

3,653

3,771

5,035

Cash flows from investing activities

(692)

(539)

(812)

(1,239)(1,563)(1,736)(1,093)(1,909)(1,728)(3,836)(1,382)

Cash flows from financing activities

(477)

(39)

(779)

(715)

2,927

2,844

879

(222)

(1,243)

1,590(2,873)

Cash and cash equivalents at end of
period

3,039

3,100

3,076

3,979

4,233

4,242

5,187

4,750

5,414

6,922

7,712

Total assets

29,59432,47233,987

37,245

43,52050,091

52,76052,81354,41459,28256,454Equity

5,648

6,271

6,947

9,514

11,453

11,766

12,33813,19014,17018,054

18,253

Interest-bearing debt

18,79919,534

19,384

18,694

21,635

26,63629,28729,497

29,124

29,63327,620Net interest-bearing debt

15,76016,43416,30814,715

17,402

22,394

24,10024,74723,71022,711

19,908

ROA (%)*1

2.3

3.5

4.7

8.4

8.2

5.8

4.5

3.1

5.0

6.2

2.7

ROE (%)*2

5.4

12.7

12.2

21.5

19.8

18.5

12.6

9.8

12.0

14.7

4.7

Ratio of profit to net sales (%)

1.7

3.3

2.9

5.4

6.0

6.3

4.1

3.5

3.9

5.1

2.2

Total asset turnover (times)

0.6

0.7

0.8

0.9

0.8

0.7

0.7

0.7

0.8

0.8

0.7

Financial leverage (times)

5.2

5.2

4.9

3.9

3.8

4.3

4.3

4.0

3.8

3.3

3.1

Fiscal years ended March 31
Fiscal year (¥ million)

Net sales

Research and development expenses

Notes: 1. ROA = (Ordinary income÷Average of total assets at beginning and end of fiscal year)×100
2. ROE = (Profit÷Average of shareholders’ equity at beginning and end of fiscal year)×100

47

TAKAMIYA Report 2021

TAKAMIYA Report 2021

48

Corporate and Share Information
Knowing Takamiya First-Hand

Takamiya’s Value Creation Story

Business Strategies

Foundations for Value Creation

Financial Information

Corporate and Share Information

Corporate Information

Domestic and International Network (as of September 2021)

Corporate Outline (As of March 31, 2021)

Group companies in Japan

Takamiya Co., Ltd.

Name

¥1,050.11 million

CapitalDate of establishment

June 21, 1969

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

Representative Director, President and Chairman

Number of employees

530-0011, Japan

Share Information

Kazumasa Takamiya

Representative

Consolidated

1,221

Breakdown of Shares by Type of Shareholder
46,577,000
3,463

Principal Shareholders
Number of Percentage ofshares held shares held(Thousand shares)(%)

Shareholders

7,114
5,356
4,540
2,045
1,708
1,678
1,579
1,350
1,288
1,000

Takamiya Ltd
Tojitsu Takamiya
Custody Bank of Japan, Ltd. (Trust account)
Takamiya Employee Stock Ownership Plan
The Master Trust Bank of Japan, Ltd. (Trust account)Toyoji Takamiya
Chikako Takamiya
Kazumasa Takamiya
Akiyoshi Takamiya
Quattro Co., Ltd.

Foreign institutions and others

Financial instruments firms

7.67%

0.41%

3,573 thousand shares

192 thousand shares
Individuals andothersOther Japanesecompanies

15.28
11.50
9.75
4.39
3.67
3.60
3.39
2.90
2.77
2.15

23.38%

45.10%

10,890thousand shares

21,000thousand shares

2 AOMORI ATOM Co., Ltd.

8 ECO-TRY Co., Ltd. (non-consolidated)

Head office Aomori Prefecture
Business Sale and rental of temporary equipment for

Head office Ibaraki Prefecture
Business Contract construction and scaffolding

installation works

3 TOTAL TOSHISEIBI Co., Ltd.

9 TAKAMIYA NO AISAI Co., Ltd. (non-consolidated)

Head office Tokyo
Business rental of temporary equipment for civil

Head office Tokyo
Business Production, processing and sale of agricultural

4 Nextech Co., Ltd.

Head office Osaka
Business Rental of stainless molding flask andtemporary equipment for civil engineeringworks
5 Nakaya Kizai Co., Ltd.

products

2

Gunma Factory
Main products Temporary equipment, structuralequipment, building materials,
solar panel installation frames,
agricultural materials
Gifu Factory
Main products Temporary

equipment

Head office Shimane Prefecture
Business Rental of temporary equipment for8
5

6 HIRAMATSU Co., Ltd.

23.43%

Head office Shizuoka Prefecture
Business Transportation of temporary equipment for

10,912 thousand shares

6

3

7

9

1

construction

Head Office of Takamiya Co., Ltd.

Notes:
1. The Company holds 7,020 shares of treasury stock. Treasury stock is excluded from theabove.
2. Numbers of shares held below thousands have been discarded, and percentages havebeen rounded to the second decimal place.

Stock Prices and Trading Volume

4

Group companies overseas

Stock price (¥)

Trading volume (Thousand shares)

900

9,000

600

6,000

300

3,000

4

sheets, calculation sheets, and construction
facility drawings as well as surveys

construction

Financial
institutions

Notes:
1. The Company holds 7,020 shares of treasury stock. Treasury stock is excluded from thelist of principal shareholders and is not used in calculating percentages of shares held.
2. Numbers of shares held below thousands have been discarded, and percentages havebeen rounded to the second decimal place.
3. Among the above numbers of shares held, shares related to trust services are as
follows.
Japan Trustee Services Bank, Ltd. (Trust account)
4,540,300 shares
The Master Trust Bank of Japan, Ltd. (Trust account)
1,708,900 shares

0

construction, planning, design, and installationof temporary works

engineering works, sale and rental of
temporary equipment for shield works

144,000,000

Number of shareholders

Head office Tokyo
Business Preparation of temporary equipment planning

construction

Share Data
Total number of issued shares

7 Cadian Co., Ltd.

Head office Wakayama Prefecture
Business Rental of temporary equipment for

Non-consolidated 711(As of March 31, 2021)

Total number of authorized shares

1 IWATA Co., Ltd.

5

6

7

8 9
2018

10 11 12

1

2

3

4

5

6 7
2019

8

9

10 11 12

1

2

3

4

5

6 7
2020

8

9

10 11 12

1

2 3
2021

0

10 Hory Korea Co., Ltd.

Head office South Korea
Business Manufacture, sale and rental of temporary

equipment for construction
10

11 HORY VIETNAM Co., Ltd.

Head office Vietnam
Business Manufacture and sale of temporary equipment

for construction
12 DIMENSION-ALL Inc.

Shareholder Information
Fiscal year
Securities code
Ordinary general meetingof shareholders
Record date
Share trading unit
Transfer agent and registrar
for common stockContact for transfer agent andregistrar
Method of public notice

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

Head office The Philippines
Business Sale and rental of temporary equipment for

constructionJune

13 Cadian Vietnam Co., Ltd. (non-consolidated)

Ordinary general meeting of shareholders: March 31 Year-end dividend: March 31 / Interim dividend: September 30
100 shares

Head office Vietnam
Business Preparation of temporary equipment planning

Mitsubishi UFJ Trust and Banking Corporation
Osaka Securities Agent Department, Mitsubishi UFJ Trust and Banking Corporation 3-6-3, Fushimi-cho, Chuo-ku, Osaka-shi, Osaka 541-8502, Japan
TEL: 0120-094-777 (toll-free in Japan)
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.

14
12
13 11

sheets, calculation sheets, and construction
facility drawings
14 Cadian Myanmar Co., Ltd. (non-consolidated)

Head office Myanmar
Business Preparation of temporary equipment planning

49

TAKAMIYA Report 2021

sheets, calculation sheets, and construction
facility drawings

TAKAMIYA Report 2021

50

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

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

T 06. 6375 3918