Introduction

Mission Statement

This world in which we live is constantly on the move,
driven by the complex intertwining of national economies
and the business activities of countless companies.
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.

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 weare today. We need to be disciplined, and we need to be humble; we needto remember that even those things we regard as everyday events are infact precious and can be experienced only once.

We want to make these things the driving force
behind our corporate growth.

Love others
Love starts with showing consideration for our family—our parents, ourThat is why our Mission Statement is “Love.”brothers 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 tothe community, the country, and the world in which we were raised, andwe do our best to give back to each of these however we can. Groups
naturally form wherever people gather. The company is one such group.
Through the company, we give back to the community, the country, andthe world. This is what it means to love the company.
02

TAKAMIYA Report 2023

TAKAMIYA Report 2023

03

Introduction

Message from the President

business, both earnings and profits declined due to theimpact of customer restraint in purchasing due to pricerevisions implemented in response to soaring raw material
prices. On the other hand, the rental business andoverseas business posted increases in both earnings andprofits. In the rental business, we recorded the highest
utilization rate since the pandemic due to increased
dependence on rental equipment resulting from customer

restraint in purchasing. In the overseas business, while
there were lockdowns in the Philippines, rental sales of
temporary equipment in South Korea were favorable, andmanufacturing in Vietnam for Japan proceeded as planned.
Over the last two years, the entire construction industry
has been slowed down by the pandemic. Although theoutlook remains uncertain, the business environment is
steadily recovering.

Takamiya Platform to Realize Business Transformation

Kazumasa Takamiya
Representative Director,
President and Chairman

We will push forward to Keep Transforming toevolve into a new Takamiya as we work toward
completing the Medium-Term Management Plan
Business Environment in the Current Fiscal YearIn May 2021, the Group announced a new Medium-Term
Management Plan with the management vision, “Create
new value through transformation and aim for sustainablegrowth by becoming a partner to our customers.” This
Medium-Term Management Plan will be promoted by the“Takamiya Platform.” The Takamiya Platform is an
important initiative for the Company, as it aims to guidethe Company in transforming from a conventional flowbusiness model to a stock-type business model. We areworking to build a structure that is resilient to changes inour external environment and capable of producing stableearnings. We will provide previously unheard-of added
value by combining temporary equipment (hardware)focusing on Iq System, our next-generation scaffolding,with digital services (software) that use digitaltransformation (DX). Temporary equipment, such as our Iq
System, is superior to other products in terms ofhardware, and we had the belief that this superiority

Feature: Source of Value Creation: TAKAMIYA Platform

P.20-21

Net Sales / Operating Income
Net Sales (left scale)(¥ million)

50,000In the fiscal year ended March 31, 2023, the constructionindustry, in which the Takamiya Group is involved, continued
to be impacted by the COVID-19 pandemic, as it was in
the previous year. Although there were some delays in thestart of construction due to the soaring raw material
prices, exchange rate fluctuations, and labor shortages,
business continued to perform well, centered in the Tokyo
metropolitan area, partly due to private sector renovation
work resulting from the need to reinforce and maintaininfrastructure and buildings in preparation for increasingly
severe disasters. The shortage of labor is not a new
problem and is not a problem unique to the construction

04

TAKAMIYA Report 2023

industry, but this year was a year in which it really became
apparent. Overseas, there are issues such as the prolonged
conflict between Russia and Ukraine and financial
instability. However, in the Philippines, a country in which
the Group is developing its business, the prolonged
lockdown was lifted and we are seeing signs of a gradual
recovery such as the commencement of Japan International
Cooperation Agency (JICA)-related infrastructure projects.
Unfortunately, in the fiscal year ended March 31, 2023,
we were unable to improve our performance as we
expected. Profits were generally in line with our plans, but
we failed to achieve our net sales forecast. In the sales

would increase the spread of our products. However, wehave come to realize that superiority alone is not enoughto acquire a convincing share of the market, and that wewill be caught up in a price competition with conventional
products and next-generation scaffolding developed byother companies that followed our lead. Hardware
superiority alone will not be enough to differentiate us.
Therefore, we will differentiate ourselves from competitors
by delivering undeniably convenient and highly safe
services (software) in the form of added value. By utilizing
this platform, our customers will be able to expand thearea, territory, and scale of their business and improvetheir business revenue. For our customers, this platform
will become the standard infrastructure in the temporary
equipment business, and will enable Takamiya to transform
itself into a stock-type business model, shifting itself awayfrom a model as a rental company or manufacturer that
conducts a flow business to a platform company.

(¥ million)

5,000

46,06542,18240,00030,000Operating Income (right scale)

3,703

41,89439,80038,812

4,000

2,713

3,000

2,253
20,000

1,586

2,000

1,682

10,000

0

1,000

2019

2020

2021

2022

2023

0
(FY Ended March 31)

TAKAMIYA Report 2023

05

Message from the President

Responses and Challenges during the “First Year of the Platform”
The fiscal year ended March 31, 2023 was the initial yearof our platform development, so we designated it as the"first year of the platform.” During the year, we madesteady progress in transforming into a platform company.
The Group’s transformation initiatives to build a platform
have been accepted by our customers centered on the
Kansai area, have been accepted by our customers, andwe are steadily moving forward with the proactive
development of services. OPERA and Iq-Bid, ourproprietary digital tools we have developed, can beaccessed from anywhere via smartphone and otherdevices. We are also expanding content to maximize user
friendliness, including enhancing Takamiya Lab. West
functions. We have received positive feedback, indicatingthat our customers are well-aware that we are building thebasic foundations for a platform. Many people were
initially concerned about using the internet and online
shopping, but these functions are now accepted as an
indispensable part of our daily lives. Furthermore, the day
when using platforms and their content is a natural andnormal part of daily life is not far off. Platform-related sales
increased from ¥600 million in the previous fiscal year to¥1.6 billion, and the number of users is steadily
increasing. We expect the speed of user increase to
P. 14-15

accelerate in the future, but we also need to visualize
various data and present it as evidence so the platform
can be used with a sense of security. This will enable
users to check the status of platform usage and get a feelfor its convenience and profitability. Also, by visualizing our
initiatives, we will provide a sense of security to ourcustomers. In addition to using the visualized information
in-house to expand the functionality of the platform, we
will accelerate these initiatives in ways such as byintroducing AI (Artificial Intelligence).
In July 2023, we identified Takamiya’s material issues(key issues) in order to further clarify the issues that weface in promoting our platform development. We sought
the opinion of various stakeholders, including outside
experts, so as to get a multi-faceted view of our initiatives,and after much internal discussion, we narrowed down thelist to eight items. During the process of formulating ourmaterial issues, we received much feedback fromstakeholders that will boost our platform development, as
well as comments concerning their expectations for theCompany. Growing as a company, Takamiya will work todeliver value to society broadly and act with moreawareness of the need to train human resources that will
support our growth and of environmental considerations.

Identification of Material Issues (Key Issues)

Progress of the Medium-Term Management Plan
Outline of the Medium-Term Management Plan

Create new value through transformation
Management
Visionand aim for sustainable growth bybecoming a partner to our customers.

Medium-Term Management Plan Targets (Reviewed in May 2023)

FY Ending March 31, 2024

06

TAKAMIYA Report 2023

Net sales

Operating income

Operating income
margin¥48 billion¥3.8 billion

7.9%

Heading into the Final Year of the Current Medium-Term Management Plan
The ongoing fiscal year ending March 31, 2024 is the final
year of the current Medium-Term Management Plan. Dueto delays in the recovery of the business environment, wewere unable to make the progress we had anticipatedover the past two years. As a result, we have concluded
that it will be difficult for us to achieve our initial
performance goals, and we have revised our target of ¥5.0
billion in consolidated operating income down to ¥3.8
billion. Reviewing the progress made with each of thebasic strategies of the Medium-Term Plan - for the firststrategy, “Develop services that blend hardware andsoftware, with a focus on the Iq System,” in other words
the establishment of a platform, which is the core of ourstrategies, progress is on schedule, as mentioned earlier.
With regard to the second strategy, “Strengthen products
for maintenance/repairs and infrastructure redevelopment,”in preparation for the full-scale maintenance and repair worksof aging social infrastructure such as road bridges, tunnels,
river management facilities, sewerage pipes, and port andharbor quays that were constructed during the period of
rapid economic growth, we are pushing ahead withproduct development to meet this trend and are promoting
the provision of services in pursuit of offering convenience tocustomers. The hanging scaffolding products, which wehave developed as our core products for such maintenance,
repairs, and infrastructure redevelopment, have been wellreceived by our customers, despite the tough businessenvironment. We are also promoting growth of the
agriculture business and sales expansion of photovoltaicrelated products as a way to nurture businesses beyond
the temporary equipment sector. These businesses also
P. 34-39

contribute to society from ESG aspects.
In the agriculture business, sales of greenhouses forcultivation have not gone as well as expected mainly due
to the lack of subsidies due to the COVID-19 pandemic
and the shortage of workers. On the other hand,preparations for the high-demand season haveprogressed. The Hanyu Aisai Project, which uses our
products, was launched to support agricultural workers insolving the issues they are facing, by collecting data on
the cultivation environment, vegetable yields, quality, etc.
Our agriculture business not only provides products, butalso offers cultivation know-how. In May 2022, we madeYame Kaisei Co., Ltd. our subsidiary through acquisition ofits shares, thereby laying the groundwork to expand andgrow our business in the Kyushu area.
In photovoltaic-related products, we aim to reducegreenhouse gas emissions through the introduction ofrenewable energy in order to achieve carbon neutrality. Its
main product is the next-generation solar carport
POGERO, sales of which are steadily increasing.
Lastly, with regard to our forth strategy, “Redevelop
overseas business bases,” the impact of restrictions on
movement as a result of the COVID-19 pandemic has
become minimal, and we are making steady progress withour business foundation development. Business activity
levels have recovered roughly as planned in the Philippines,
South Korea, and Vietnam. Due to the progress we havemade in the development of our internal management
system, we have also improved our profitability.
Although our Medium-Term Management Plan has beenreviewed since its formulation, its realization is within sight.

Medium-Term Management Plan / Message from the CFO

Completing Our Transformation by Integrating DX and Management
I believe that transformation of the Group means to reform
Takamiya itself. In other words, transformation, which is
the main theme as well as the ultimate goal of the current
Medium-Term Management Plan, means to transform
ourselves into a platformer. Our platform will be using digital
networks to centrally manage not only order placing andreceiving, but also warehousing at bases nationwide, inventory
management, the state of production at manufacturing
divisions, and product information including the Iq System.

We have revamped our Company website and businesscards to change awareness within our Group, as we aretransforming from a company that sells and rents
scaffolding to an IT company with its own platform. Thiswas due to our realization that the working environment
had changed after the COVID-19 pandemic, and that only
companies at which the newly hired digital generationin their 20s would want to keep working will survive inthe future.

TAKAMIYA Report 2023

07

Message from the President

Our Management Philosophy views human resources
as the essence of corporate strength. Therefore, we havefocused on creating a working environment that can easilyreflect the way of thinking of the younger generation, which
will build DX that supports transformation, as well as on
workstyle reform. We have installed large signage within our
offices that allows employees to see, at a glance, how muchovertime is being worked and the percentage of paid leave
being taken. In addition to introducing new systems such assabbatical leave, we are also promoting office reforms in linewith the new era. We are transitioning from a place of work
to a place of communication. We have rearranged our officelayout to create open workspaces and introduced a range of
ICT tools to enable each and every employee to work on his
or her own initiative while considering and choosing where
and when, or which facilities he or she works at, in an effort
to not only make it easier for employees to work, but also
to increase productivity. In addition, we have started toreform our appraisal system by introducing incentives andP. 40-43

targets, making it easier for the younger generation towork independently. Meanwhile, we have also realized the
difficulty of making veteran managers understand DX. Thishas prompted us to switch to management that emphasizes
diversity, which allows managers to maximize their
management skills and make the most of their individual
abilities. We have established a system to manage thetargets that our employees have been working toward, tocreate a system that visualizes necessary information toachieve targets, so that everyone can share and utilize them.
I also believe that raising awareness of our customers
is an important issue for us. Compared to other industries,
the construction industry has been slower to adopt DX
and digitalization initiatives. The industry tends to have an
unwillingness to change. Therefore, in order to switchfrom analog to digital, customers need to understand thatthey can actually enjoy the benefits. By working to raise
the awareness of our customers, we aim to complete thetransformation of the Group.
team, such as our directors, from providing executivefunctions to providing supervisory functions. Throughthese efforts, we have begun reinforcing the governance

Human Resources

Sustainability and Governance as the Foundation for Growth
The Group is seeking to achieve sustainability by eliminating
wasteful construction industry practices and improving
efficiency by using transformation to create a complete
platform. The construction industry must also take action
to deal with the "2024 Problem" that will be brought about
by revisions to the Labor Standards Act. The restrictions on
working hours will make it unfeasible for the constructionindustry to continue to operate in the same way as it hasin the past. However, our next-generation scaffolding, Iq
System, has a story height of 190 cm, 20 cm higher thanconventional scaffolding systems. This significantly increases
work efficiency while greatly reducing the burden placedon workers and the amount of work time involved. Our
products and platforms are improving efficiency in various
ways. Our platform is also transforming the constructionindustry as a whole, including customers, adopting abusiness system that prevents oversupply of scaffolding
and reduces the amount of storage space required forequipment, etc. This platform makes it possible for us toshare the use of scaffolding with our customers. This
improves operation rates, reduces dead stock and inventory
surplus, and helps produce more efficient construction sites.
Furthermore, to combat the issue of CO2 emissions, ourplatform has made it easy to collect large amounts of

08

TAKAMIYA Report 2023

scaffolding scrap and recycle it for use in new products as
raw materials by melting it in high temperature furnaces.
We have already begun expanding our Vietnam Factory andchanging the layouts of our factories, promoting DX in our
production management. We have prepared an inventoryof the largest and most optimal equipment for stableproduction and set up a system that minimizes excessive
raw material procurement and inventory retention. At the
aforementioned Takamiya Lab. West, our reductions totruck standby times achieved through the industry’s
fastest delivery and collection are certain to produce CO2
emissions reduction benefits. Improving the efficiency ofour business operations will also contribute to our ESG
initiatives, and we believe that similar initiatives will produce
similar results for our agriculture business and photovoltaicrelated products. This is because striving to improve ourbusiness efficiency also contributes to sustainability.
With respect to governance, in June 2022 we transitioned
to a Company with an Audit and Supervisory Committee
structure, and we are promoting the separation of our
executive and supervisory functions. We have strengthened
our middle management by positioning general managerclass personnel as part of our management team. We havealso shifted the focus of members of our managementof our Company as a whole. Furthermore, with regard to ourdividend policy, a topic of high interest to our shareholders,
we plan to continue to provide stable dividends.

Environment / Safety / Trust of Customers

P. 44-45
P. 46-49, P. 52-55

Dialogue between Outside Directors / Corporate Governance

To Our Stakeholders
Our company’s history extends back half a century, andwe are now launching a platform and transforming into an
IT company. The core of our business operations is also
shifting completely to platform business, and our aim is tobecome part of the infrastructure of the industry ofproviding temporary equipment for construction work. I
am sure that from the standpoints of those in theconstruction industry, including our customers, this may
seem like an incredibly ambitious dream. Knowing that
this report, which discloses some of our efforts, will beseen by these industry members fills me with pride andan even stronger dedication to achieving our targets.
Our new employees, who will be a tremendous aid in
our achievement of these targets, will be all hired tocreate this platform. We will no longer be taking a hiring
approach of bringing together scaffolding rental sales
managers, construction managers, and science students
to hire R&D and manufacturing department personnel. In
this way, we will move away from Takamiya being ascaffolding manufacturer and rental company, instead

using DX to transform ourselves into a platformer.
As part of our Medium-Term Management Plan, we arecarrying out our preparations for becoming a platformer
that earns the high praise of society. That is precisely why
we are able to carry out the transformations, such as
reshaping our corporate image and company format,
introducing DX, and reforming workstyles, working
environments, and offices. We were also able to definemateriality, thereby clearly defining our mission.
However, I feel profound regret that we may have notbeen able to effectively communicate these changes andreforms to our shareholders and investors. We will
redouble our efforts to disclose more various information
and actively engage in PR and IR activities than ever toaccurately communicate and provide everyone with a fuller
understanding of our initiatives. We will do our utmost toshow how Takamiya is engaging in business activities as afull-fledged platformer in a way that is clearer and easier foranyone to understand. We will work harder than ever tomeet the expectations of all of our stakeholders.

TAKAMIYA Report 2023

09