Takuma Co., Ltd.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

August 6, 2024

Business Segment
Our business is centered on engineering, procurement, and construction (EPC) and after-sales service of waste treatment facilities, biomass
power plants, etc. based on the primary themes of “environment” and “energy”.
Key Businesses

Business Segment

Municipal Solid Waste Treatment Plant Business
Overseas Environment
and Energy

Municipal solid waste treatment plant EPC and after-sales
service for municipalities

Equipment andSystems

2%

6%

Package Boiler

12%

Water Treatment
Plants, etc.

8%

Energy Plant Business
Municipal Solid Waste
Treatment Plants
(EPC)

23%

(EPC+After-sales service)

19%

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Large boiler, biomass power plant, and industrial waste
treatment plant EPC and after-sale service for private enterprises

Water Treatment Plant Business

Sewage treatment facility EPC and after-sale service formunicipalities

Power Retail Business

FY2023
Net sales
149.1 billion yen

Energy Plants

Domestic
Environment andEnergySupply of electric power procured from delivered waste
power plants, biomass power plants and other facilities topublic facilities and private companies

Municipal Solid Waste
Treatment Plants(After-sales service)

30%

Overseas
Environment andEnergyEnergy from Waste plant and Energy plant EPC and after-saleservice

Package Boiler

Manufacture and sale of and after-sale service related to heatsource equipment such as general-purpose boilers andvacuum-type water heaters

Equipment andSystems

Sale of and after-sales service related to building equipment(air conditioning, water supply and drainage work, etc.) andproducts for the semiconductor manufacturing industry

1Terminology
Definition

Term
EPC

Engineering, procurement, and construction; one approach we use in our plant construction business.

O&M

Operation and maintenance; one approach we use in our plant operation business.

DBO

Design, build, and operate; one approach we use in our plant construction and operation businesses (EPC + O&M).

DBM

Design, Build, and Maintenance.
These projects take the form of EPC + long-term maintenance agreements.

BTO

Build, transfer, and operate; one approach we use in our plant construction and operation businesses (EPC + O&M).

Primary equipment
improvement project

A method that aims to restore functionality and extend the lifespan of facilities by updating and improving
deteriorated equipment while maintaining the existing buildings, etc. which have a long useful life, from thestandpoint of reducing life cycle costs.

FIT

A feed-in tariff for renewable energy.

FIP

Feed-in Premium; a system in which a certain premium (subsidy amount) is added to the price at which electricity
is sold in the market.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2

Table of Contents

1. Overview of Q1 FY2024 (Ending 3/2025) Financial Results
2. Financial Forecast for FY2024 (Ending 3/2025)
3. Appendix

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

3

Table of Contents

1. Overview of Q1 FY2024 (Ending 3/2025) Financial Results
2. Financial Forecast for FY2024 (Ending 3/2025)
3. Appendix

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

4

Q1 FY2024 (Ending 3/2025)

Summary

Q1 FY2024 Results
Orders received

Net sales

Operating profit¥106.9 billion¥32.3 billion¥1.8 billion

Orders received were up owing primarily toan order for a municipal solid waste
treatment plant DBO project and primaryequipment improvement project.

Sales were up for municipal solid waste
treatment plants in the Domestic
Environment and Energy Business andthree other segments.

Profit was up owing primarily to a change
in the EPC project mix in the Domestic
Environment and Energy Business.

Domestic Environment and Energy Business
Municipal solid waste treatment plants
Energy Plants
Water Treatment Plants, etc.

Domestic Environment and Energy Business
Municipal solid waste treatment plants
Energy Plants
Water Treatment Plants, etc.

Domestic Environment and Energy BusinessChange in EPC project mix

Overseas Environment and Energy Business
Package Boiler Business
Equipment and Systems Business

Overseas Environment and Energy Business
Package Boiler Business
Equipment and Systems Business

Overseas Environment and Energy Business
Package Boiler Business
Equipment and Systems Business+¥72.4 billion(+209.7%) YoY

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

+¥2.5 billion(+8.4%) YoY+¥0.7 billion(+63.6%) YoY

5

Q1 FY2024 (Ending 3/2025)

Financial Highlights

Orders received were up owing to an order for a municipal solid waste treatment plant DBO project and primary equipment improvement
project in the Domestic Environment and Energy Business.
Both net sales and profit were up owing primarily to a change in the EPC project mix in the Domestic Environment and Energy Business.
Quarterly profit attributable to owners of parent was up with the recording of a gain on sales of investment securities.

(Millions of yen)

Q1 FYE 3/2023(FY2022)Q1 FYE 3/2024(FY2023)Q1 FYE 3/2025(FY2024)

YoY change

Orders received

32,85534,548106,979

209.7%

Order backlog

447,219475,938

557,265

17.1%

Net sales

30,94029,82132,327

8.4%

Operating profit

2,194

1,142

1,869

63.6%

Operating margin

7.1%

3.8%

5.8%

2.0pt

Ordinary profit

2,536

1,538

2,234

45.3%

Quarterly Profit attributable to owners of parent

1,730

936

2,096

123.8%

Basic earnings per share (yen)

21.56

11.71

26.26

124.3%

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

6

Q1 FY2024 (Ending 3/2025)(Millions of yen)Orders received
Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Net sales
Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Operating profit
Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Financial Highlights by Segments

Q1 FYE 3/2023(FY2022)Q1 FYE 3/2024(FY2023)Q1 FYE 3/2025(FY2024)

YoY change

32,85534,548106,979

209.7%

287

753

628

(16.6%)

24,293

26,166

97,406
5,983

272.3%(0.8%)

5,389

6,028

1,701

3,059

30,94029,82132,327

8.4%

483

13.7%

2,967

79.9%

25,61924,02525,482

3,354

3,550

3,782
2,672

39.7%

2,194

1,142

1,869

63.6%

(39)

-

284

1,771

425

1,913

2,752

1,555

2,350

(67)

25

84

(70)
145

(31)
192

134

6.1%

6.5%

51.1%

231.1%(30.5%)* Adjustments are omitted.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

7

Domestic Environment and Energy Business

Orders received /Order backlog

Orders received were up owing primarily to an order for a municipal solid waste treatment plant DBO project and primary equipment
improvement project.
 Orders received: Up owing to orders for 1 waste treatment plant DBO projects, 1 primary equipment improvement project.
➡ See “Main Orders Received (Topics) ” on p. 12
 The order backlog is on the rise owing to steady orders for long-term O&M (such as DBO and BTO projects).

Orders received(Millions of yen)
Q1

Order backlog (Q1)

Approx. ¥71.2 billion increase(Millions of yen)

Approx. ¥82.1 billion increaseQ4

531,947
198,700

160,591

164,865
130,280

131,567

379,819

383,408

FYE 3/2021

FYE 3/2022

432,025

449,787

97,40669,700FYE 3/2021

28,65824,293

26,166FYE 3/2022

FYE 3/2023

FYE 3/2024

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

FYE 3/2025(Forecast)

FYE 3/2023

FYE 3/2024

FYE 3/20258

Net Sales /Operating Profit

Domestic Environment and Energy Business
Both sales and profit were up owing primarily to a change in the EPC project mix.
Net sales(Millions of yen)

Q1

Operating profit

Approx. ¥1.4 billion increase

Approx. ¥0.79 billion increase(Millions of yen)

Q4

Q1

Q4

Q1 Operating Margin

25,000

12.0%

10.7%

10.2%
120,770

108,657

115,985

119,190

9.2%

10.0%

20,000109,400

7.2%

14,87515,00011,4758.0%

6.5%
11,228

10,90612300
6.0%

10,0004.0%

27,203

FYE 3/2021

22,393

FYE 3/2022

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25,619FYE 3/2023

24,025FYE 3/2024

25,482FYE 3/2025(Forecast)

5,000

2,776

1,610

2,752

1,555

2,350

2.0%

0.0%

0

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)9

Domestic Environment and Energy Business

Breakdown by
Product / Service

Orders received were up owing to an increase in municipal solid waste treatment plants (EPC and after-sales services).
Net sales were up, owing primarily to an increase in municipal solid waste treatment plants (EPC).
Net sales

Orders received
Water Treatment Plants, etc.
Energy Plants (EPC and after-sales services)
Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)974(100M yen)
1,000

18
36

Water Treatment Plants, etc.
Energy Plants (EPC and after-sales services)
Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)

Water Treatment Plants, etc.
Energy Plants (EPC and after-sales services)
Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)(100M yen)

(100M yen)

300

256
22

800

488

Order backlog

200

600

95

240
27
70

254
25
59

6,000

5,000

4,000

5,319
4,320
121

742

4,497
115

400

242
200

15
66

136
0

24

Q1
FYE 3/2023* Adjustments are omitted.

261
28
69

100

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64

66

2,000

2,868
2,281

2,415

1,174

1,208

1,468

Q1
FYE 3/2023

Q1
FYE 3/2024

Q1
FYE 3/2025

428

161
1
Q1
FYE 3/2024

72

75

704

758

3,000

75

277

Q1
FYE 3/2025

0

93

1,000

0

Q1
FYE 3/2023

Q1
FYE 3/2024

Q1
FYE 3/2025

10

Domestic Environment and Energy Business

Main Orders Received

In Q1 of FY3/2025, orders were received for 1 municipal solid waste treatment plant DBO project and 1 primary equipment improvement project.
Year
FYE
3/2023

Municipal
solid
waste
treatment
plantsFYE
3/2024FYE
3/2025Water
treatment
plantsFYE
3/2024FYE
3/2025

Delivered to:

Notes

Capacity

Scheduled Completion

Q1

Senboku Environmental
Improvement Facilities Association

EPC

Primary equipment
improvement project

300 t/day

3/2024

Q3

Okinoshima-cho

After-sales service

Long-term O&M

25 t/day

4/2023-3/2038 (15 years)

Q4

Kohoku Wide Area Administrative
Affairs Center

EPC & After-sales service

BTO

124 t/day

3/2030 (18 years of operations
starting 4/2028※)

Q3

Ashikaga City

EPC & After-sales service

DBO

152 t/day

3/2028 (20 years of operations
starting 4/2028)

Q4

Sapporo City

EPC & After-sales service(Crushing facility)

DBO

140 t/5h

3/2028 (20 years of operations
starting 4/2028)

Amagasaki City

EPC & After-sales service

DBO

447t/day

3/2031 (20 years of operations
starting 4/2031)

Clean Authority of TOKYO

EPC

Primary equipment
improvement project

1,800t/day

1/2029

Q2

Ochiai Water Reclamation Center

EPC(Sand filtration system)-

128units

2/2028

Q3

Osaka Prefecture Chuo Mizu Mirai
Center

EPC (sludge treatment plant)& After-sales service

DBM

Q1

-

-

-

Q1

sewage sludge
incineration

100 t/day-

7/2027 (About 11 years of long-term maintenance starting 7/2027)-* Start of overall facility operations, including heat recovery facility
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11

Domestic Environment and Energy Business

Main Orders Received(Topics)

Received order for waste treatment facility DBO projectfrom Amagasaki City


Incineration, recycling, and human waste treatment facilities integrated into one building

20 years of operations to be launched in April 2031

Will be Japan’s highest level of power generation efficiency in waste power generation,
significantly reducing CO2 emissions

Contract amount: ¥72.5 billion (excluding tax) *New Amagasaki City waste treatment facility- Conceptual image

Received order from Clean Authority of TOKYO for primaryequipment improvement project at waste treatment facilityLarge-scale renewal of plant equipment at the Shin-Koto Waste Incineration Plant to extend
the service life of the facility

Will reduce CO2 emissions by 6% or more compared to the current level by improving power

generation efficiency and curbing electricity consumptionContract amount: ¥25.0 billion (excluding tax)Contract period: June 2024 to January 2029

* Total amount of orders received by the group represented by the company.
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Shin-Koto Waste Incineration Plant

12

Domestic Environment and Energy Business

Main Orders Received

No EPC orders for Energy Plants in Q1 FY3/2025.
Year

Delivered to:EnergyplantsEPC

Power generation business (Biomass, FIT)

1,990kW

6/2024

Power Aid MIE LLC.

EPC

Power generation business(Biomass and others, Non-FIT)

1,990kW

WinterFYE 3/2025

Yonezawa Bio Energy LLC.

EPC

Power generation business (Biomass, FIT)

7,100kW

11/2025

Soga Biomass Power Generation Co.

EPC

Power generation business (Biomass, FIT)

1,990kW

11/2024Company A

EPC(Fuel conversion)

Self-consumption (Biomass and others, Non-FIT)

Q3

Katsuta Co., Ltd.

EPC

Industrial waste treatment

150t/day

2/2026

Q4

Regional power Co.

EPC

Power generation business (Biomass, Non-FIT)

9,990kW

8/2026Furusato FIC Energy LLC.

EPC

Power generation business (Biomass, FIT)

1,990kW

1/2026

Mogami Biomass Power Generation2 (KK)

EPC

Power generation business (Biomass, FIT)

7,100kW

10/2026

Shin Tokai Paper Co., Ltd. Shimada Plant

EPC

Self-consumption(Biomass and others, Non-FIT)-

1/2027Company B

EPC

Power generation business (Biomass, FIT)

7,100kW-Green Power Tono (KK)

EPC

Power generation business (Biomass, FIT)

1,990kW

11/2026

Tochigi High Trust Co., Ltd.

EPC

Industrial waste treatment

93.6t/day

2/2027

Hachimantai Next Energy Co.

EPC

Power generation business (Biomass, FIT)

7,100kW

12/2026

Q4

Company C

EPC

Power generation business (Biomass, FIT)

1,990kW

-

Q1

-

-

-

-

-

Q2

Q1

FYE
3/2024Q2

Q3

FYE
3/2025

ScheduledCompletion

Capacity

Sanyo-Onoda Green Energy Co.
Q1

FYE
3/2023

Notes*Self-consumption: Steam (heat) and electricity produced by a plant installed within the factory are used within the factory without being supplied externally.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

-

-

13

Domestic Environment and Energy Business

Quarterly trend in
Orders received /Net sales (Reference material)

Orders received vary significantly depending on the timing that projects are recorded. Net sales tend to increase going into the fourth quarter.
Orders received (quarterly)

Net sales (quarterly)

The amount of each EPC project is large, so orders received tend to varysignificantly depending on the timing of the contract.

Although net sales vary depending on progress on construction of EPC
projects for the period, municipal solid waste treatment plants(after-sales service) increases going into the fourth quarter, so overall net
sales also tend to increase going into the fourth quarter.

Water Treatment Plants, etc.
Energy Plants (EPC and after-sales services)
Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)(100M yen)
1,200

Water Treatment Plants, etc.
Energy Plants (EPC and after-sales services)
Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)(100M yen)
400

1,000

300

800
200

600
400

100
200
0
▲ 200

0
Q1

Q2

Q3

Q4

Q1

FYE 3/2023

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Q2

Q3

FYE 3/2024

Q4

Q1

Q2

Q3

FYE 3/2025

Q4

Q1

Q2

Q3

FYE 3/2023

Q4

Q1

Q2

Q3

FYE 3/2024

Q4

Q1

Q2

Q3

Q4

FYE 3/2025

14

Overseas Environment and Energy Business

Orders received /Order backlog

Orders received were on par with the same period of the previous year due to continued acquisition of maintenance orders. We will continue
going after new construction and renewal projects in addition to maintenance services.
Orders received（Millions of yen）
Q1

Order backlog (Q1)

Approx. ¥0.12 billion decrease（Millions of yen）

Approx. ¥0.34 billion decrease

Q4

7,000

7,000

6,356

5,922

6,000

6,013

6,000

5,000
5,000

4,000
4,000

4,000

3,000

2,280

2,035

3,000

2,000

1,460

2,000

883

1,000

221

231

287

FYE 3/2021

FYE 3/2022

FYE 3/2023

753

628

1,000

713

534

0

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

FYE 3/2024

FYE 3/2025(Forecast)

0

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2025

15

Overseas Environment and Energy BusinessNet sales /Operating profit

Net sales and operating profit were on par with the same period of the previous year owing primarily to progress on new plant projects
previously ordered in addition to maintenance orders.
Net sales
Approx. ¥0.05 billion increase（Millions of yen）
Q1

Operating profit
Approx. ¥7 million deterioration（Millions of yen）

Q4

Q1

Q4

Q1 Operating Margin

300

6000

150.0%

300

5,000

184

200

5000

100.0%

100

4000

0

50.0%

3000

2,440

-100

-200

2000

1,188

1,351

1,005

-300

1000

241

124

FYE 3/2021

FYE 3/2022

284

425

483

(53)
(140)
(22.2%)

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(98)
(218)

(172)
(24.9%)(39)
0.0%(7.4%)(8.1%)-50.0%-400(79.3%)0

FYE 3/2023

(31)

(70)

FYE 3/2024

FYE 3/2025(Forecast)-500

FYE 3/2021

FYE 3/2022-100.0%FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)16

Package Boiler Business

Orders received / Order backlog

Orders received were on par with the same period of the previous year due to a continued moderate recovery in demand.

Orders received（Millions of yen）
Q1

Approx. ¥0.04 billion decrease（Millions of yen）

Approx. ¥0.1 billion decreaseQ4

20,00018,000Order backlog (Q1)

17,524

16,83018,40018,66618,800

9,000

8,418

8,315

FYE 3/2024

FYE 3/2025

8,000

16,000

6,391

7,000

14,000

6,000

6,887

5,694

12,0005,000

10,000

8,000

6,000

4,978

5,063

5,389

6,028

5,983

4,000

3,000

4,000

2,000

2,000

1,000

0

FYE 3/2021

FYE 3/2022

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FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)

0

FYE 3/2021

FYE 3/2022

FYE 3/2023

17

Package Boiler BusinessNet sales / Operating profit

Net sales and operating profit were up owing primarily to progress on projects for which orders were already received and completion oflarge-scale projects.
Net sales（Millions of yen）
Q1

Operating profit

Approx. ¥0.23 billion increase

Approx. ¥0.05 billion increase（Millions of yen）

Q4

Q1

Q4

Q1 Operating Margin

1,177

1200

20,00018,00016,931

16,49817,312

18,492

18,600

12.0%

1,000

915

1000

800

672

640

16,000

10.0%

8.0%

14,0006.0%

600

12,000400

0.7%

10,000

200

25

8,000

2.2%

84

2.0%

0.0%

0

6,000

4,000

3,212

3,192

3,354

3,550

3,782

-200

2,000

-400

(97)
(3.0%)0

FYE 3/2021

FYE 3/2022

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FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)

4.0%

(129)

(67)

-2.0%

(2.0%)-4.0%(4.1%)-6.0%-600

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)18

Equipment and Systems Business

Orders Received / Order Backlog

Orders received increased primarily from orders in the building equipment business.

Orders received
Approx. ¥1.3 billion increase（Millions of yen）
Q1

Order backlog (Q1)
（Millions of yen）

Approx. ¥0.43 billion decreaseQ4

16,00014,00014,32814,00012,00011,432

10,998FYE 3/2024

FYE 3/2025

12,00010,166

10,000

8,917

10,000

8,403

9,000
6,872

8,000

8,000

6,000
6,000

4,000

2,602

2,000

2,967
1,664

3,059

4,372

5,440

4,000

1,701
2,000

0

FYE 3/2021

FYE 3/2022

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FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)

0

FYE 3/2021

FYE 3/2022

FYE 3/2023

19

Equipment and Systems BusinessNet sales / Operating profit

Net sales were up owing to progress on projects for which orders were already received. However, operating profit was down due primarily tochanges in the project mix.
Net sales（Millions of yen）
Q1

Operating profit

Approx. ¥0.75 billion increase（Millions of yen）
Q1

Q4

Q4

Approx. ¥0.05 billion decrease
Q1 Operating Margin

12,0002500

10,500

10.1%

9,437

10,000

8,590

8,271

12.0%

10.8%

10.0%

8,360

2000

8.2%

8,000

8.0%

1500

5.7%

6,000

876

1000

4,000

2,000

1,682

1,572

1,771

1,913

2,672

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

700

500

95
FYE 3/2022

826

656

0

FYE 3/2021

5.0%

FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)

169

145

192

341

134

6.0%

4.0%

2.0%

0.0%

0

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2025(Forecast)20

Table of Contents

1. Overview of Q1 FY2024 (Ending 3/2025) Financial Results
2. Financial Forecast for FY2024 (Ending 3/2025)
3. Appendix

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

21

FY2024 (Ending 3/2025)

Results Forecast

No changes from the initial forecasts announced on May 14, 2024. Aiming for record-high orders received of ¥230.0 billion.
While sales are expected to be down, profit will be up owing mainly to changes in the EPC project mix.
 Orders received: Demand will be stable for renewal, and service life improvement of waste treatment plants and other projects, and we will go after these orders.
 Net sales: Down due to a decrease in sales in the Domestic Environment and Energy Business.
 Profit and loss: Profit up owing mainly to a change in the EPC project mix. ➡ See “Profit Variance Analysis Forecast” on p. 23(Millions of yen)

FYE 3/2023(FY2022)FYE 3/2024(FY2023)

FYE 3/2025(FY2024)
Beginning of year
forecast

YoY change

Orders received

168,558

160,568

230,000

43.2%

Order backlog

471,211482,612569,61218.0%

Net sales

142,651

149,166

143,000(4.1%)

Operating profit

13,813

10,229

11,2009.5%

Operating margin

9.7%

6.9%

7.8%

0.9pt

Ordinary profit

14,684

11,166

12,000

7.5%

Profit attributable to owners of parent

9,621

8,754

8,800

0.5%

Profit per share (yen)120.22109.43111.56

1.9%

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

22

FY2024 (Ending 3/2025)

Profit Variance Analysis Forecast

Although we expect an increase in SG&A expenses such as personnel and R&D expenses, we also expect an increase in profit due to higher grossprofit in the EPC Business and recurring revenue model businesses.
Breakdown of ordinary profit variance (forecasts)(Billions of yen)

SG&A
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Gross profit

23

FY2024 (Ending 3/2025)(Millions of yen)Order received
Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Net sales
Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Operating profit
Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Results Forecast by Segment

FYE 3/2023(FY2022)FYE 3/2025(FY2024)
Beginning of year
forecast

FYE 3/2024(FY2023)

YoY change

168,558

160,568

230,000

43.2%

5,922

2,280

4,000

75.4%

9,000

7.1%

130,280

131,567

198,700

51.0%

18,40018,66618,800142,651

149,166

143,000

1,351

2,440

5,000

104.9%

14,328

115,985

8,403

119,190

109,400

0.7%(4.1%)(8.2%)

17,312

18,492

18,60010,50011.3%

13,813

10,229

11,200

9.5%

(172)

184

300

62.5%

8,360

14,875
915

826

9,437

11,22812,300

1,177

1,000

341

700

0.6%

9.5%

(15.1%)

105.0%* Adjustments are omitted.
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

24

Human resources investment, Capital investment and R&D
Actively invest in further business expansion in the future.
 Human resources investment: Strengthen hiring and training of human resources, especially in Engineering, Construction and Maintenance divisions.
 Capital investment: Expected to decrease YoY as capital investment at the new Harima Factory was completed in FY2023 (ended 3/2024).
 Depreciation: Up due to operations at the new Harima Factory. Expected to gradually decrease going forward.
 Research and development expenses: We engaged in R&D, primarily in relation to decarbonization technology. Expenses are expected to increase compared to theprevious year due to experiments and installation of testing equipment.
Human resources investment
Number of employees (people, consolidated)
Hires (people, non-consolidated)(Millions of yen)

Capital investment

FYE 3/2022

FYE 3/2023

FYE 3/2024

3,816

3,925

4,145

4,247

4,278

45

62

79

69

83

60-70
FYE 3/2025(Forecast)Research and development expenses(Millions of yen)

Selling, general and administrative expenses (consolidated)

894

958

1,002

1,054

-

-

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

1,564

2,420

3,844

7,100

3,527

1,154

1,047

1,006

1,150

1,629

2,200

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

16,261

16,326

16,254

17,741

19,309FYE 3/2025(Forecast)

917

Depreciation

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

FYE 3/2021

875

Number of employees (people, non-consolidated)

FYE 3/2025(Forecast)

FYE 3/2020

1,036

961

1,136

1,797

1,600

2,000

-

25

Shareholder Return
The annual dividend for FY2024 (ending 3/2025) is to be increased by 8 yen to ¥56 per share. The total return ratio is expected to be 95.7%
through share repurchase of up to JPY 4 billion and cancellation of treasury shares.
1 Enhancing shareholder returns and improving capital efficiency through stable dividends and share repurchase

Shareholder return
policy2 Dividend Policy: Establish as a target amount whichever is higher calculated based on dividend payout ratio of 50% or dividend on equity (DOE)

ratio of 4.0%

3 Share Repurchase Policy: Share repurchase totaling approximately JPY 12 billion over three years to improve capital efficiency

Purchase of treasury stock andTotal return

Dividend per share and Payout ratio
56

60.00

Q2

Q4

Payout ratio

(yen)
50.00

43
40.00

31
30.00

20.00

10.00

4

5.4%

2

0.00

FYE
3/2013

6

5.6%

3

3

FYE
3/201499.3% 5

11
11.6%

6

4

5

FYE
3/2015FYE
3/2016

13
12.6%

16

16.9%

7

9

6

7

22
20.5%

12

34.3%

36
38.8%

18

36
39.3%

18

48

80.0%

70.0%

Purchase of treasury stock
Total return ratio

60.0%

50.2%

4,000

4,000

120.0%

43.9%
35.8%

24

50.0%

95.7%

3,500

28

90.0%

30.0%

1,999

80.0%

70.0%

2,000

18

100.0%

3,000

2,500

24

110.0%

40.0%

20.0%

1,500

60.9%

38.8%

49.3%

747

1,000

48.7%

1,252

43.9%

60.0%

50.0%

40.0%

30.0%

10.0%

20.0%

10

13

18

18

19

24

28

500

10.0%

0.0%

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

(Millions of yen)

FYE
3/2017FYE
3/2018FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/2022FYE
3/2023FYE
3/2024FYE
3/2025(Forecast)

0.0%

0

FYE
3/2020FYE
3/2021FYE
3/2022FYE
3/2023FYE
3/2024FYE
3/2025(maximum)26

Table of Contents

1. Overview of Q1 FY2024 (Ending 3/2025) Financial Results
2. Financial Forecast for FY2024 (Ending 3/2025)
3. Appendix

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

27

History
In 1912, we invented the first boiler in Japan using purely Japanese technology. While improving boiler technology, the company cultivatedcombustion and water treatment technologies and utilized them to enter the environmental field, such as waste incineration plants. Since then,we have provided technologies and services for solving customer and societal challenges, primarily in the fields of environment and energy.
1958
Business expanded into the environmental
facility sectors, including waste incineration
and water treatment plants
1963Japan's first 24 hour operating waste
incineration plant delivered

Domestic

1938
Takuma Boiler
Manufacturing Co., Ltd.,was founded

2014
Takuma‘s first biomass power
plant under Japan’s FIT
program was launched.
Thereafter, many more plants
were delivered

1972
Company renamed TAKUMA CO., LTD.

1912
The Takuma boiler
was launched by
Tsunekichi Takuma.

Overseas

1949
Bagasse-fired boiler, thefirst product of its kind to
be exported*Biomass boiler

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2010
Energy from Waste plant delivered inEurope (U.K.)

1986
The first overseas delivery of a waste
treatment facility completed (U.S.A.)28

Performance Trends
In the latter half of the 2000s, we focused on after-sales service, which would provide its earnings base. There has been steady demand forrenewal and service life improvement of waste treatment plants and an increase in demand for biomass power plants, resulting in stable net
sales and profits.
Net sales

1999(Hundredmillionsof yen)Ordinary profit

2012

Establishment of Act on Special Measures against Dioxins

Feed-in tariff system for renewable energy(FIT system)(Hundred millionsof yen)

2,000

300
250

1,500

200

1,000

150
100

500

0

50
1999 2000

2001

2002 2003 2004 2005 2006 2007 2008 2009

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022 2023

0
▲ 50

▲ 500
Net sales▲ 1,000

2010

Ordinary profit

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

▲ 100
▲ 150

29

Business Model

Domestic Environment and Energy Business

Revenue comes primarily from engineering and construction (EPC) and after-sales service (operational management, maintenance, O&M, etc.)
of plants.
Approx. 2-5 years

Completion

Business Model

EPC Plant design, procurement of necessary
equipment, on-site construction andcommissioning• The EPC portion is recorded as sales according toprogress on the project.

• More tends to be recorded in the latter half of a
project as construction progresses.

Approx. 20-30 years

after-sales service

Recurring revenue
model businesses Plant operation management, maintenance, and improvement project O&M (for completely outsourcing operation and maintenance)• Normal maintenance and improvement work recorded as revenue as work is completed and progress is made• Operation management (mostly one to several years) recorded as revenue over contract term

• The O&M portion is recorded as orders when contracts are signed, and after plants are completed, they are recorded as net sales overthe business period.

Illustration of Recording of Net
Sales/Order Backlog in DBO
Business

DBO Business* (simultaneous orders for EPC and O&M)

Net sales

Orderbacklog

EPC
O&M

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

30

Business Model

Domestic Environment and Energy Business
Illustration: Sales Progress / Sales Composition
Illustration: Sales Composition ofDomestic Environment and Energy Business

Illustration: Sales Progress of Project Orders
100

Order backlog(1 years ago)

80

EPC
Business
60

Order backlog(3 years ago)

Order backlog(2 years ago)

Order backlog(4 years ago)40

20

design/procurement

design0

order

construction

trial
operation

Recurring
revenue modelbusinesses

after-sales service(excluding DBO)

DBO

1-year later

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2-year later

3-year later

completion

31

Takuma Group Management Principles and Long-Term Vision
Management Principles
Takuma will strive for social contribution, corporate value enhancement, longterm corporate development and the satisfaction of all stakeholders by providing
goods and services that are needed and recognized as valuable in society.

We will address social andenvironmental issues (ESG issues)
through businesses that leverage
the Group’s strengths, viewing
the resolution of these issues as
an opportunity for growth,

while also increasing ourcompany’s economic value.

Vision2030
We aim to maintain our role of being an indispensable presence in society as aleading company in the field of renewable energy utilization andenvironmental protection and reach an ordinary profit level of JPY 20.0 billion.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Keywords for realizing Vision2030
A great partner toour customers

Innovation oftechnologies andservices
Solving issues facedby our customers
and society

32

Business Portfolio

Vision2030: Our Vision for 2030

Achieve further expansion with recurring revenue model businesses as the core driver of growth for Vision2030.
Work on expanding the EPC business at the same time as recurring revenue will increase to achieve ordinary profit of JPY 20.0 billion by FY3/2031.
Vision2030: Growth of net sales
13th MTP

14th MTP

15th MTP

Ordinary profit(JPY billions)
Ordinary profit

Ordinary profit
JPY 11.1 billion
ROE 8.3%

JPY 20.0 billion
ROE at least 12.0%

JPY 14.0 billion
ROE at least 9.0%

200.0

165.0

22.0

149.1
9.4
18.4
2.4

56.3

62.8

FY3/2024*Adjustments omitted

Vision 2030

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

11.8

19.7
4.0

13.0

10.0

FY3/2027

Package Boiler Business
Overseas Environment and Energy Business

Domestic Environment and Energy Business

85.0

FY3/2031

Positioning

6.5%

Ongoing business

11.0%

Ongoing business

5.0%

Expand primarily in Thailand, Taiwan, and emerging countries,
developing it into a pillar of the Group’s business

70.0

62.0

68.0

Equipment and Systems Business

Share(Steady expansionof revenue)(Steady expansionof revenue)

Future business(Medium- to long-term
perspective)

77.5%

EPC
Business

Maintain and expand position
as a leading company

35.0%Core business

Recurring
revenue modelbusinesses

Further expansion as a core
driver of growth

42.5%

Growth business(Growth driver)33

14th Medium-Term Management Plan

Positioning and Policies

Challenges for achieving Vision 2030 include a lack of human resources. In the 13th Medium-Term Management Plan, we paved the way toward growth to resolvethese challenges by assessing the business environment and strengthening recruitment. The 14th Medium-Term Management Plan is positioned to materialize thegrowth story for realizing the vision by prioritizing investment of management resources into receiving orders for municipal solid waste treatment plants (renewals
and primary equipment improvement) and establishing a revenue model that maximizes the use of recurring revenue while formulating and implementing measures
to solve various challenges.
2021

Orders received

400

Net sales

Ordinary profit

350

13th
MTP
2022

Planting seeds

2023

Preparation for further growth

2024

14th
MTP
2025

Development

2026

2027

15th
MTP
2028

Obtainment

2029

Materialization of the growth story

Vision20302030
25

20.0
20

(JPY billions)
300

250

192.2
10.6
134.0

200

150

14.6
168.5
142.6

11.1
160.5
149.1

230.0
12.0

180.0 12.0

143.0

14.0
190.0

152.0

Obtaining
results

165.0

200.0

15

10

100

5

50

0

0

2021

2022

2023

Business Strategy

Further strengthening of existing
businesses
Addressing future changes in theenvironment

Management foundation enhancement
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2024

2025

2026

2027

2028

2029

2030

Basic Policy

1 Maintaining and expanding our market position in the EPC

Business

2 Establishing a revenue model that fully utilizes recurring revenue
3 Steadily expanding revenue in the Package Boiler Business andEquipment and Systems Business

4 Building a track record for the future in international business
5 Promoting strategic M&As and creating new businesses
1 Securing and development of human resources

2 Knowledge management

3 Compliance and risk management34

14th Medium-Term Management Plan

Financial Targets (Summary)In addition to ordinary profit, new targets for orders received and return on equity (ROE) are set in the 14th Medium-Term Management Plan.
:Main target

13th MTP

14th Medium-Term Management Plan

Vision2030(3-year total)

3-year total

FY2024FY2025

FY2026

Ordersreceived

521.3

600.0

230.0

180.0

190.0

Net sales

425.9

460.0

143.0

152.0

165.0

Operatingprofit

33.9

35.6

11.2

11.2

13.2

Ordinary
profit

36.4

38.0

12.0

12.0

14.0

20.0

ROE

8.3%

at least 9%

8.0%

8.0%

9.1%

at least 12%(JPY billions)(FY3/2024)(FY3/2027)

FY2031

200.0(FY3/2031)

ROE = Profit / Equity capital
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

35

14th Medium-Term Management Plan
(JPY millions)

Orders received
Total

Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Net sales

Total
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

Operating profit
Total

Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and Systems

FY2024

Financial Targets Forecasts by Segment

FY2025

FY20263-year total

230,000

180,000

190,000

4,000

4,000

4,000

198,700

146,700

600,000

155,000

500,400
58,10012,00018,80019,30020,000143,000

152,000

165,000

460,000

5,000

4,000

4,000

13,0009,000

109,400

18,60010,500118,900

11,500130,000

31,000358,300

10,50019,10010,50019,70057,400

11,200

11,20013,20035,60011,80032,80012,30012,60014,40039,300

1,000

1,050

1,100

3,150

300
700

0

700

0

900

300

2,300

*Adjustments omitted

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

36

14th Medium-Term Management Plan

Illustration: Orders Received/Net Sales(Reference material)

240,000
230,000
220,000
Order(EPC)(FYE 3/25)

Net sales target

200,000

200,000
190,000
180,000

180,000

Order
backlog(EPC)(on or after
FYE 3/28)

Order(EPC)(FYE 3/27)

Order(EPC)(FYE 3/26)

165,000

160,000
152,000
140,000

120,000

Order
backlog(EPC)(FYE 3/25)

143,000

Order
backlog(EPC)(FYE 3/26)

Orderbacklog(EPC)(FYE 3/27)

Sales (EPC: Order on or after FYE 3/28)
売上(EPC：2027年度～受注)
Sales (EPC: Order on FYE 3/27)
売上(EPC：2026年度受注)
Sales (EPC: Order on FYE 3/26)
売上(EPC：2025年度受注)
Sales (EPC: Order on FYE 3/25)
売上(EPC：2024年度受注)
Sales (EPC: Order backlog on or before FYE 3/24)
売上(EPC：～2023年度受注残)Orderbacklog(EPC)(on or before
FYE 3/24)

Net Sales (excluding EPC)
売上合計(EPC以外)

100,000

80,000(JPY millions)

Order
受注

Sales
売上

Order
受注

FYE 3/25
2024

Sales
売上

FYE 3/26
2025

14th MTP
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Order
受注

Sales
売上

FYE 3/27
2026

Sales
売上

Sales
売上

Sales
売上

Sales
売上

FYE
3/28
2027

FYE
3/29
2028

FYE
3/30
2029

FYE 3/31
2030

15th MTP

37

14th Medium-Term Management Plan Business Strategies

Basic Policy ① and ②

In the Domestic Environment and Energy Business, which is a pillar supporting growth, we will increase EPC orders and link them to operation
management and maintenance to achieve a virtuous cycle between the EPC Business and recurring revenue model businesses.
▍ Priority measures bybusiness/field

Municipal solid
waste treatment
plantsDomestic
Environment
and Energy

Basic policy 1

Maintaining and expanding
our market position in the
EPC Business Expansion of orders for renewal and primary equipment
improvement projects
 Review of measures to address market changes• 3 or more renewal project orders per year
• Steady response to primary equipment improvement
projects• Support for decarbonization models and private sector
utilization

Basic policy 2

Establishing a revenue modelthat fully utilizes recurring
revenue Maintenance and expansion of orders for operation
management, maintenance, and long-term O&M
projects• Steady orders for regular maintenance work and DBO
projects• Cost reduction and quality improvement with datautilization

Energy plants

 Ongoing orders for new small and medium-sized biomass
power generation plants and renewal of plants for private
consumption and industrial waste treatment plants

 Ongoing maintenance orders for delivered projects
 Enhancement of solution proposals, such as functional
improvements and energy savings

Water treatment
plants Acquisition of orders for sewage sludge incinerators andsand filtration facilities
 Expansion of share through technological superiority

 Ongoing maintenance orders, including regular
maintenance work

Power retailbusiness-

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

 Expansion of revenue by expanding relative powersources, securing new customers, and expanding
service lineup

38

14th Medium-Term Management Plan Business Strategies

Basic Policy ③ and ④

We will focus on expanding our product lineup, developing overseas operations, and securing and developing human resources to maintain andexpand orders in each business.
▍ Priority measures bybusiness/fieldBasic policy 3

Steadily expanding revenue in the Package Boiler Businessand Equipment and Systems Business

Package Boiler Ongoing orders for renewal projects from expansion of product lineup, including low-carbon and decarbonization products
 Strengthening of maintenance business and overseas development

Equipment and Systems

 Building equipment business (air conditioning, water supply and drainage sanitation equipment work): Strengthening of sales
capabilities, securing and development of engineers, and cost reductions
 Semiconductor industrial equipment business: Maintenance and expansion of domestic sales and strengthening of overseas
sales

Basic policy 4

Overseas Environment andEnergyCopyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Building a track record for the future in international business Acquisition of orders for biomass power plants through expansion of supported fuels
 Acquisition of orders for energy from waste plants, primarily in Thailand and Taiwan

39

14th Medium-Term Management Plan Business Strategies

Basic Policy⑤ M&As and Alliances/ New Businesses

We will gather information with a focus on the business fields below to actively look into projects that match our business strategy.
Priority field

Segment(Business field)

Purpose/category
Functional enhancement

Expansion of business domain

Strengthening of existing businesses
and expansion of personnel

Expansion of peripheral businesses
and creation of new businesses

In-house production of key devices

Municipal solid
waste treatment
plantsDomestic
Environment andEnergyWater treatment
plantsEnergy plants
Power retailbusiness

Overseas Environment and Energy

Package Boiler

Equipment and Systems
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Manufacturers and engineering
companies

Expansion of service lineup and personnel

Local partners in EPC BusinessSupplementation of producing functions

New heat source systems

Securing of human resources andarea expansion(Equipment business)40

Domestic Environment and Energy
Municipal solid waste treatment plants

Situation by Segment

Business
Environment

Demand for renewal and service life improvement will continue due to the aging of waste treatment facilities. We expect renewal demand tocontinue for the time being. DBO orders are on the rise utilizing know-how from the private sector. We expect this to continue.
Number of waste incineration facilities in operation(1,016 facilities, by operating year)

Market size for renewal demandand DBO percentage(Facilities)

70

Order placed
Scale(tons/day)

60

6,000

Facility renewal andimprovement work wasconcentrated in the 1990s

50

Around 400 facilities became
operational over a 10-year
period40

Stable renewal demandof around 15-20 facilities
per year is expected toemergePlant life is 15-20 years

100

Scale of orders received is
expected to be around3,000-4,000 tons/day

4,000
50

2,000
1,000

10
0

DBO
percentage

DBO percentage is on the rise

3,000

30
20

5,000

Order scale

DBO
percentage
(%)

0
1985

1990

1995

2000

2005

2010

2015

2020

2025

Source: Prepared by the Company based on the “2022 Survey of Municipal Solid Waste Treatment” by the Ministry of the Environment.
*Includes facilities under construction and where operations have been suspended.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2030

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

0*Based on internal research *DBO percentage does not include PFI method such as BTO (four BTO projects since 2010)41

Domestic Environment and Energy
Municipal solid waste treatment plants

Situation by Segment

Business
Strategy

Focus on winning ongoing orders through comprehensive proposals tailored to diversifying needs.
Results

Steadily landing orders for EPC/O&M. The long-term O&M (contract period of 10 years or more) ratio in the order backlog for municipal solid waste treatment
plants is over 60%. Along with maintaining and expanding the EPC Business, we expanded our recurring revenue model businesses.

Future policy

We aim to win at least three renewal orders per year on an ongoing basis and steadily meet the demand for service life extension by enhancing our proposal
capabilities through differentiation in areas other than price based on our technological strengths and expanding our ability to respond to projects by increasing
resources and improving operational efficiency.

EPC orders
Aiming to build up orders throughexpansion of resources in addition tosteady orders(Projects)
Primary equipment improvement work
New construction/renewal

2

5
1

4

FYE
3/2013FYE
3/20142

2

FYE
3/2015FYE
3/20163
FYE
3/2017

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

(100M yen)

57%

59%

60%

2,217

2,329

64%

2,426

2

3

3

2

Order backlog

2,454

2
2
FYE
3/2018Long-term O&M ratio
increasing with constantinflux of orders for DBO
and O&M

After-sale services
EPC

3

1

4

3

1
FYE
3/2019FYE
3/20201
1

FYE
3/2021FYE
3/2022FYE
3/20232
FYE
3/2024FYE
3/2021

1,215

1,273

1,133

FYE
3/2022FYE
3/2023FYE
3/2024Long-term O&M percentage(Municipal solid waste treatment
plant business)42

Domestic Environment and Energy
Municipal solid waste treatment plants

Situation by Segment

Business
Strategy

Aim for sustainable growth of recurring revenue model businesses by strengthening O&M proposals and proposals for regular maintenance work.
Results
Future policy

The Company received orders for long-term O&M (contract period of 10 years or more) at 27 facilities (as of the end of FY3/2024). By the end of FY3/2025, 20 of
the facilities under contract will be in operation. Operations at the remaining facilities will be launched one after another. Orders at non-contracted facilities also
increased as a result of promoting proposal-based sales.
Through proposal-based sales, we will maintain and expand orders for after-sale services every year. In addition, we aim to achieve growth of recurring revenue
model businesses by enhancing O&M proposals for non-contracted facilities and initiatives to reduce costs through data utilization.

Number of municipal solid waste treatment facilities
in operation at beginning of FY2024

Directly managed
and others

Approx. 40%(Facilities)

DBO

Strengthen long-term
O&M and O&M
proposals to noncontracted facilities

13

11%

Long-term O&M

6

5

4%

facilities

22 facilities

25 facilities

16 facilities
15

10 facilities

10

5 facilities

5

Operation management

Approx. 40%

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

in operation

20

O&M(Less than 10 years)

120

20 facilities
Aiming for more orders forlong-term O&M

25

5%
Approx.

Number of long-term O&M(more than 10 years, including DBO and BTO projects etc. ) contracts (results and forecasts)

1 facility02007 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

*Accumulation based on contract period of existing projects. The total does not come to 27 facilities because the contracts forsome projects will expire before others begin operations.

43Domestic Environment and Energy
Energy plants

Situation by Segment

We contribute to stabilizing our customers’ businesses and maximizing their revenues through biomass power plants and large-scale plants that
supply electricity and heat to their factories.
Business
Environment

Demand for small- and medium-sized biomass power plants, mainly from domestic fuels (such as unused timber), continues, driven primarily by policies topromote renewable energy and decarbonization. In particular, we expect to see demand for renewal of existing plants (fuel conversion) in the paper and lumber
industries and demand for new small- and medium-sized power plants (FIT, Non-FIT, FIP).

Future policy

In the EPC Business, the aim is to continue winning orders, particularly for small- to medium-sized biomass power generation plants, including renewal ofexisting plants and proposals for new power plants. In after-sales service, we aim for recurring revenue model business growth by proposing solutions forenergy savings, functional improvement, and service life extension, in addition to maintenance.

Japan’s energy-derived carbon dioxide emissions*3

Orders received (cumulative)(Projects)

Aiming for steadyordersFIT
Non-FIT

19
7
4
3

FYE
3/2013

14

25
19

32
24

5

6

8

FYE
3/2014FYE
3/2015FYE
3/20163931
8FYE
3/2017

48
35

54

40

60

46

63

47

69

51

13

14

14

16

18

FYE
3/2018FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/202276

Transportation
19%

54

60

Public10%

10% (approx. 100 million
tons) of emissions

Utility
thermal39%

There is demand forswitching from fossil fuels tobiomass fuels (fuelconversion).

Manufacturing
15%

22

24

FYE
3/2023FYE
3/2024* Source: 2022 results from “Comprehensive Energy Statistics” by Ministry of Economy, Trade and Industry
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

84

Agriculture,
forestry,and fisheries
2%

Industry-owned thermal

4%

Other Industry-owned steam
conversion
6%
5%

44

Domestic Environment and Energy
Water Treatment Plants

Situation by Segment

Contribute to the effective use of energy and decarbonization of sewage treatment facilities through greenhouse gas-reducing and highly
energy-saving products.
Business
Environment

In addition to renewal and service life improvement demand due to aging sewage treatment plants, demand for reduction of greenhouse gas emissions and effective utilizationof biomass sewage sludge is growing in the sewage treatment field.
Our step grate stoker type sewage sludge incineration and power generation system received two awards in FY2022 for CO2 reduction, energy saving, and energy creation.

Future policy

Focus on securing ongoing orders with mainstay products (step grate stoker type sewage sludge incineration and power generation system and sand filtration systems) thathave high environmental performance and meet customer needs.
Also promote establishment of a system for receiving orders for DBO projects, which are expected to continue increasing.

Sewage treatment flow and theCompany’s main products

Reaction tank facility

Initial settling pond

Low power agitator
Bio Blade Mix

Final settling pond

Inflow/
Pre-treatment

Sand filter

Disinfection tank

Discharge

Drawn-off sludge

Separated liquid
treatment facility
Fixed-bed
anammox process

Digestertank

Sludgetreatment facility
Rotating drum-typeconcentrator

Upflow moving-bed sand filtration systems
Uniflow Sand Filter
Features: Supports high-speed filtration,
simple and space-saving
Over 2,800 systems delivered

Incinerator

Step grate stoker type sewage sludge incineration and power
generation system
Generator

Features: Energy creation through power
generation, low power
consumption, reduction ofgreenhouse gas emissions
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Return water

Features: Energy creation through power generation, low power consumption,
reduction of greenhouse gas emissions
Awards: Director-General Prize of the Agency for Natural Resources and Energy, of the2022 New Energy Grand Prize
Institute Award (Technical Division), of the Japan Institute of Energy 2022 Award

45

Domestic Environment and Energy
Power Retail Business

Situation by Segment

Contribute to stabilizing customers’ electricity rates and reducing greenhouse gas emissions through the procurement and supply of electricity
generated from renewable energy and non-fossil fuels.
Business
Environment

Demand is increasing for renewable energy and CO2-free electricity for decarbonization. Demand is also increasing for local production of electric power for
local consumption.

Future policy

Leverage strength in stable power procurement to promote the supply of electric power to areas near power sources and to environmentally conscious
customers. We will also promote expansion of our lineup of related services such as supply and demand management services and environmental valuetransactions to expand our customer base.

Example of services provided(local production of electric power for local consumption)

Main recent projects

Takuma Energy Co., Ltd.
Electric power
procurement

Delivered plants

Waste power generation,
biomass power generation

Cycle of local
production andconsumption of power

Waste
emissions/biomass
fuel supply

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Electric power
supplyCustomers

Local production for
local consumption/
supply of CO2-freeelectric power

Provided toMain supplierStart

Kunohe Village, Iwate

Iwate-Kenpoku Clean Co., Ltd.

Apr 2022-

Imabari City, Ehime

Imabari City Clean CenterApr 2022-

Machida City, Tokyo

Machida City BioEnergy CenterApr 2022-

Kurume City, Fukuoka

Miyanojin Clean Center

Jan 2023-

Kitahiroshima-cho,
Hiroshima

Kawakoda Micro Hydro Power
Plant*Not delivered by us

Aug 2023-

Rikyuu Co., Ltd.

Mar 2024-

Nishiyodo Incineration Plant

Apr 2024-

Fujisawa City,
Kanagawa
Offices, plants, public facilities

Osaka City, Osaka

46

Situation by Segment

Overseas Environment and Energy

Business
Environment

 In addition to population and economic growth, the trend toward decarbonization in Southeast Asia has increased demand for biomass power generation andEnergy from Waste plants.
 In Thailand, demand for Energy from Waste and for biomass power generation, including fuel conversion, is expected to grow against the backdrop of government
promotion of renewable energy.
 In Taiwan, demand for facility renewal and service life extension is expanding due to the aging of Energy from Waste plants.
 In Taiwan and Vietnam, the need for in-house processing of industrial waste generated in manufacturing plants is also increasing.
Renewable Energy Policy in Thailand*
Alternative Energy

30,000Landfill3%2037
targetDevelopment Plan (Thailand)（MW）

Number of Waste Treatment Facilities in Thailand and Method of Treatment (2022)

Increase share of renewable energy infinal energy consumption to

Improper processing(incineration)
8%

29,411

30.0% by 2037

975
1,565

25,000

2,074

5,790

20,00015,000Waste
treatment
Biogas

11,831318
527

10,0003,390

Biomass

5,000
0

2016
2017
2018
*Alternative Energy Development Plan (AEDP)
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Incinerationor other2%

facilities

Expected to shift from dumping
outside to recycling andincineration in the future

Improper processing(dumping outside)
87%

Wind
2019

2037

*Source: “General Research Report: Waste Situation in Thailand,” Bangkok Industrial Information Center,
Aichi prefecture (November 10, 2023)
Ministry of Natural Resources and Environment of Thailand

47

Situation by Segment

Overseas Environment and Energy

Business
Strategy

Focus on securing continuous orders for biomass power generation plants and Energy from Waste plants and improving the system.
Results
Future policy

Promoted the development of a system to win orders via local subsidiaries in Thailand and Taiwan, and won 3 orders in FY2021-2023.
Aim to expand collaboration with local subsidiaries and partnerships with local companies to increase orders in Southeast Asia and Taiwan. In addition to reducing costs andshortening construction periods, the Company aims to differentiate itself in terms of performance and quality, including stable operation and high-efficiency technology, and toachieve stable profitability and growth by continuing to receive at least one to two new construction orders per year.

Deliveries (cumulative)
ThailandOf these, biomass plants

Energy plants

158

120

Local subsidiaries (2 companies)
Taiwan, China,
South Korea, EnglandTaiwanTaiden Environtech Co., Ltd.

Waste treatment plants

16

Energy from Waste plant and energy
plant sales and maintenance

Main recent projects
Year

Delivered to(Honorifics omitted)

Description

Scale

ScheduledCompletion

Energy from
Waste plant

FYE
3/2022

Q3

Stoker upgrade

900 t/day

Nov 2024

Waste
treatment plant

TA-HO LU-TSAOENVIRONMENT CO.,LTD. (Taiwan)

FYE
3/2023

Q4

Company A(Vietnam)

New construction

427 t/day

Sep 2025

Energy plant

FYE
3/2023

Q4

Company B(Thailand)

New construction

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Mar 2025

ThailandSiam Takuma Co., Ltd.

Energy from Waste plant and energy
plant sales, construction supervision,and maintenance48

Situation by Segment

Package Boiler Business /Equipment and Systems

Package Boiler Business
Domestic market has matured, but we expect a certain level of demand forrenewal and other work to continue for the time being.
In addition to new heating businesses (hydrogen, biomass, electric heatsources, decarbonized products, etc.), the Company aims to expand thescale of orders by expanding its overseas business in Southeast Asia,
particularly in Thailand.

Equipment and Systems
Building equipment business

Strong demand is expected to continue due tourban redevelopment and new construction
and renewal of medical and welfare facilities.
The Company will continue to further
strengthen its sales and construction
capabilities by securing and training humanresources, thereby maintaining and expanding
the scale.

Semiconductor industrial equipment
business

The semiconductor and electronic device
manufacturing equipment market is growing overthe medium to long term due to the trend toward
digitalization. Aim to maintain and expand thescale by providing products that create andmaintain a highly clean environment required forthe manufacturing process.

Group companies

Group company
Nippon Thermoener Co., Ltd.
Manufacture and sale of and after-sale services for steam boilers, hot water
heaters, and other heating products
Main products

Sun Plant Co., Ltd.
Design and construction of air conditioning
and plumbing equipment for buildings

Sale of and after-sale services for various
semiconductor industrial systems

Main products

Characteristics
Temperature

Once-throughboilers

Vacuum-typewater heaters

Hybrid hot
water supply
systems

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Biomass
boilers

Hydrogen-fired CO2 capturing
compact oncevacuum-typewater heaters through boilers

Custom development of
optimal environments foreach building

Humidity

Ventilation

Chemicalfilters

AMC environmental
concentration analyzers

49

Strengthening the Management Foundation

Securing and Development of
Human Resources

We will promote various human resources measures to expand resources in recurring revenue model businesses and the EPC Business.

Challenges

Human resources measures linked to management strategy

 Elimination of human resources gap(quantity and quality) to achieve
Vision 2030

 Establishment of internal
environment where diverse humanresources can play active roles overthe long term Fostering of a corporate culture that
accepts change
while passing down a good
corporate climate

Securing of diverse human resources
matching our business strategy

Strengthening of foundation forhuman resources development

Further improvement of job satisfaction
and pleasant work experience Assumed number of necessary personnel*1

 Enhancement of training system byrank and field, etc.

 Effective use of senior human resources
 Establishment of a personnel system thatenables work-life balance(People)

784

943

1,200

Neutral
Sales

MaintenanceConstruction
Engineering

FY3/21

FY3/24

FY3/31(forecast)

Personnel to handle
EPC projects andmaintenance

Main KPI
Number of main career track andmanagement positions filled by women*2

At least

35*1. Non-consolidated basis, main career-track (does not include factory work positions,general positions, or secondment). Each of the figures is for the beginning of the year.
*2. Cumulative total for April 1, 2021 to March 31, 2026.
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Utilization of parenting support programs*3

At least

25%

Employee engagement

Highest rating

50% or more

*4

*3. Average for FY3/2022 to FY3/2026.
*4. The percentage of respondents giving the highest rating for each question (on a 5-point scale) on job satisfaction andpride in the company in the Employee Attitude Survey.

50

Strengthening the Management Foundation

Human Resources Investment

Strengthen hiring and training of human resources to pass on our greatest strength, our technological capabilities, and expand our resources.
Continue hiring and training efforts in the Engineering Division, as well as the Construction and Maintenance divisions.
Number of employees(People)Number of new hires

Number of employees (consolidated)(People)Number of employees (non-consolidated)

3,447

3,609

3,619

3,816

Mid-career hires (non-consolidated)
New graduate hires (non-consolidated)

3,925

4,145

4,247

4,278

69

62

29
11
824

837

852

875

894

958

1,002

FYE 3/2017

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

83

79

1,054

FYE 3/2024

18
FYE 3/2017

43

45

22

25

34
10
24

21

20

FYE 3/2018

FYE 3/2019

FYE 3/2020

53
37

48
41

25

26

28

FYE 3/2021

FYE 3/2022

FYE 3/2023

35

FYE 3/2024

51

Strengthening the Management Foundation

R&D

In addition to fine tuning existing technologies, we will strengthen R&D focusing on CCUS and carbon recycling technologies to realize adecarbonized society.
R&D roadmap for decarbonization technologies
Fuel decarbonization

Carbon recycling

Capture and use of CO2 after incineration

Direct conversion

Examples of our technology/R&D
Agricultural use of CO2 from flue gas purification•

Delivered a t-CarVe® CO2 supply system with a customer (SARA Inc. and F Bit Communications Corp.)that directly utilizes purified flue gas generated from burning woody biomass as fuel, after removing
components harmful to plant growth, in a green house.

•

Launched joint demonstration experiment with AEON AGRI CREATE Co., Ltd. at the Machida City Bio
Energy Center (Machida City, Tokyo) to utilize CO2 from combustion gases generated at the waste
treatment facility in strawberry cultivation.

Solid carbonization

Technology for recovering CO2 from the flue gas of waste incineration facilities as solid carbon. Can beused as a raw material for chemicals, such as carbon black.

Direct use of
CO2

Separation and capture of CO2

Technology that supplies hydrogen to biogas generated by methane fermentation of food waste andconverts CO2 into methane using microorganisms. Methane can be used as fuel for city gas, etc.

Chemicals

Fuel

Methanefermentation

Ore

OxygenChemical
combustion absorption Solid carbon Biomethanation
methodmethod conversion

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Methanation at biogas recovery plant

Storage

Use

Supply of
CO2 togreenhousehorticulture

Biomethanation

Gasification

Hydrogen andammonia
combustion
technology

Food waste(Biomass resource)

CH4
MethaneBiogasCO2synthesis
H2

CH4
Methane

Usage

City gas, etc.

Biomethanation

52

Strengthening the Management Foundation

Knowledge Management“Offensive” digital transformation (DX) has had some success in areas such as automated plant operation (AI development). We will continue
efforts to create new value for further strengthening our competitiveness. Regarding “defensive” DX, the entire Group will further promote
digitalization to improve productivity and ensure smooth technology succession with limited resources (human resources and time).

Establishment of competitive advantage using “offensive” and “defensive” approaches
Offensive DX

Defensive DX

Digitalization of products and services

Digitalization of operations

Providing new value to customers through the use of digital technology in plant
construction, operation, and other businesses

Business fields
Planning, design, procurement,
construction, operation, etc.

Enhancement ofwaste pit
management

Promotion of knowledge
management(Collection, storage, sharing, andutilization of knowledge and data)• Increase in work volume• Working hour control anddiversification of work styles• Establishment of systems and data
assets that are easy to utilize

Measure• Early development of new hires• Elimination of waste and control oferrors in business processes• Maintenance and improvement oftechnical capabilities

Time
Challenges

MeasureCopyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

AI combustion
control System

Challenges

Solution Lab

General Affairs, HR, Accounting, etc.

Human Resources

3D layer model

Automatic sorting of glass bottles

Office field

Improved operational
efficiency through automationand project/task management

53Strengthening the Management Foundation

Knowledge Management

We are systematizing (visualizing) technical data, plant data, problem information, etc. as data assets to promote knowledge management.

Harima Factory
Production control

EPC

Inventory control

Process control

Technical information
management

Cost control

O&M
Order control

Quality control

Operational data
control

Inspection history
management

Cost control

Promote visualization, utilization of data assets, and operational efficiency
by linking systems in each process of business fields.
Knowledge
management• Technology transfer• Individualization→Visualization

Automation/
Standardization• Utilization of RPA• Utilization of 3D CAD andBIM/CIM

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

Database creation• Standard specifications• Problem examples• Additional cost results, etc.

Coordination

Visualization ofproject and task
management

・Adjustment of workload

54

Capital Policy
We will establish a quantitative policy based on an analysis of the current situation related to cost of capital and stock price.
We will enhance corporate value by balancing business growth and shareholder returns that meet market expectations with a solid financial
foundation.

1

2

3

Establishment of ROE targets
mindful of cost of capital

Establishment of appropriate
cash allocation

Establishment of newshareholder return policy

Establish target ROE based on therecognition that the cost ofequity over the past 10 years has
been around 6%.

Secure a working capital andbusiness risk buffer of roughly 2-3
months’ worth of sales (JPY 30-40
billion).

FY3/2027 ROE

At least 9%

FY3/2031 ROE

At least 12%
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

For cash and deposits above thatlevel (operating CF + cash andbalance in account), implement
appropriate allocation between
investment in growth andshareholder return.

4

Maintenance of solid
financial foundation

to support the EPC and long-term O&M
businesses

Dividends

Establish as a target amountwhichever is higher calculated
based on dividend payout ratio of
50% or dividend on equity (DOE)
ratio of 4.0%
Share repurchase

Equity ratio

Maintain at

the 50% level

Share repurchase totaling
approximately JPY 12 billion overthree years to improve capitalefficiency

55

Capital Policy

Cash Allocation

Focus on growth investments and shareholder returns and execute appropriate cash allocation to increase corporate value.
13th Medium-Term Management Plan period(JPY billions)Operating
CF*

+33.0

2.0

44.0

Growthinvestments
JPY 21 billion

Sale of crossshareholdings

Sale of crossshareholdings, etc.
+2.0

SPC
investments
in capital

14th Medium-Term Management Plan period+3.0

Capitalinvestment

OperatingCF*(13.0)

M&A / business
investments(10.0)+35.0

Dividends
R&D
investment (10.0)(4.0)

Actualcash anddeposits

Capital investment(5.0)
R&D investment(6.0)

Purchase oftreasury stock
Repayment of(2.0)
borrowings
(5.0)

45.0
Actualcash anddeposits

42.0

42.0

End of
FY3/2021

End of
FY3/2024

Shareholder
return
JPY 26 billion
Purchase oftreasury stock(12.0)
Dividends(14.0)

SPC
investments
in capital

3.0(11.0)

36.0
Actualcash anddeposits

SPC
investments
in capital

5.0

31.0

End of
FY3/2027*Before R&D expenditure
Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

56

Capital Policy

Enhancing shareholder returns and improving capital efficiency through stable dividends and share repurchase1

Shareholder return
policyShareholder Return

Establish as a target amount whichever is higher calculated based on dividend payout ratio of 50% or dividend on equity (DOE) ratio of 4.0%

2

Share repurchase totaling approximately JPY 12 billion over three years to improve capital efficiency

3

6.00

Interim dividend

Year-end dividend

Dividend payout ratio

Purchase of treasury stock

80.0%

Total return ratio

6,000(JPY YEN)(JPY millions)

48

5.00

120.0%

110.0%

70.0%

43

5,000

100.0%

60.0%
90.0%

4.00

36
31
3.00

22

1.00

2
3.9%

0.00

4

5.4%

2

2
2

2011

2012

6
3
3

9

9.3%
5.6%

2013

5

4

11.6%

6

13
12.6%

7

16.9%

9

43.9%
38.8% 39.3%

18

16
20.5%

4,000

18

35.8%

24

Dividend payout
ratio of 50%
or DOE of 4.0%

24

70.0%

60.9%

3-year total

40.0%
3,000

49.3% 48.7%

2,000

1,252

20.0%

20.5%

12

Approx.
JPY 12 billion

60.0%

50.0%

40.0%

38.8%

18

43.9%

1,999

30.0%

30.0%

747

1,000

20.0%

10.0%

10.0%

5

6

7

10

13

18

18

19

24
0.0%

2014

80.0%

50.0%

34.3%

2.00

11

36

2015

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

0

0.0%

2018

2019

2020

2021

2022

2023

2024

2025

2026

57

Disclaimer

Information related to performance forecasts, business plans, and related topics included in this document
is based on data currently available to the Company and on certain assumptions that are deemed to bereasonable. This information includes elements of risk and uncertainty.

Please note that actual performance may diverge significantly from these forecasts for a variety of reasons.
Takuma is under no obligation to update, revise, or announce changes to forward-looking statements inthis document following its publication, except as required by applicable laws and regulations.

Takuma holds the copyright to this document and prohibits its duplication or reuse for any purpose
without its prior consent.

Copyright 2024 TAKUMA Co., Ltd. All Rights Reserved.

58