Takuma Co., Ltd.

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

August 8, 2023

Table of Contents

1. Overview of Q1 FY2023 (Ended 3/2024) Financial Results

2. Financial Forecast for FY2023 (Ended 3/2024)
3. Reference Material

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

11. Overview of Q1 FY2023 (Ended 3/2024) Financial Results

2. Financial Forecast for FY2023 (Ended 3/2024)
3. Reference Material

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

2

Q1 FY2023(Ended 3/2024)

Financial Highlights

Orders received were up owing to two EPC orders for a biomass power plant and an increase in orders for after-sale services for a municipal
solid waste treatment plant. Net sales and profit were down, mainly due to changes in the EPC project mix, depreciation at the new Harima
Factory, and increases in personnel and R&D expenses.
 Orders received: Increased owing to two EPC orders for a biomass power plant and an increase in orders for after-sale services such as operation management
and maintenance for a municipal solid waste treatment plant in the Domestic Environment and Energy Business.
 Net sales and profit: Decreased due to changes in the EPC project mix in the Domestic Environment and Energy Business, increased depreciation at the new
Harima Factory associated with operations, and increased operating expenses such as personnel and R&D expenses.

(Millions of yen)

Q1 FYE 3/2022(FY2021)Q1 FYE 3/2023(FY2022)Q1 FYE 3/2024(FY2023)

YoY change

Orders received

35,53132,85534,548+5.2%

Order backlog

395,571447,219475,938+6.4%

Net sales

27,11230,94029,821-3.6%

Operating profit

1,045

2,194

1,142

-47.9%

Operating margin

3.9%

7.1%

3.8%

-3.3ptOrdinary profit

1,268

2,536

1,538

-39.4%

Quarterly profit attributable to owners of parent

792

1,730

936

-45.9%

Basic earnings per share (yen)

9.76

21.56

11.71

-45.7%* 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, BTO: Both of one approach we use in our plant construction and operation businesses (EPC + O&M). DBO: Design, build, and operate; BTO: Build, transfer, and operate* Primary equipment improvement work: Large-scale improvement work for the effective utilization of existing municipal solid waste treatment plants through maintenance and improvement of functions and extension of useful life
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

3

Q1 FY2023(Ended 3/2024)(Millions of yen)

Financial Highlights

Q1 FYE 3/2022(FY2021)Q1 FYE 3/2023(FY2022)Q1 FYE 3/2024(FY2023)

YoY change

Orders received
Total

35,53132,85534,548+5.2%

Domestic Environment and Energy

28,65824,293

26,166+7.7%

Overseas Environment and Energy

231

287

753

+162.3%

Package Boiler

5,063

5,389

6,028

+11.9%

Equipment and Systems

1,664

2,967

1,701

-42.7%

Total

27,11230,94029,821-3.6%

Domestic Environment and Energy

22,39325,61924,025-6.2%

Overseas Environment and Energy

124

284

425

+49.7%

Package Boiler

3,192

3,354

3,550

+5.8%

Equipment and Systems

1,572

1,771

1,913

+8.0%

Total

1,045

2,194

1,142

-47.9%

Domestic Environment and Energy

1,610

2,752

1,555

-43.5%

Overseas Environment and Energy

-98

-70

-31

-

Package Boiler

-129

-67

25

-

Equipment and Systems

169

145

192

+32.8%Net sales

Operating profit* Adjustments are omitted.

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

4

Domestic Environment and Energy Business

Orders received /Order backlog

Orders received were up owing to two EPC orders for a biomass power plant and an increase in orders for after-sale services for a municipal
solid waste treatment plant.
 Orders received were up year on year owing to two EPC orders for a biomass power plant and an increase in orders for after-sale services such as operation
management and maintenance for a municipal solid waste treatment plant.
 The order backlog is on the rise owing to steady orders for long-term O&M (such as DBO and BTO projects). Around 50% of the backlog is long-term O&M.

Orders received(Millions of yen)
Q1

Order backlog (Q1)

Approx. ¥1.8 billion increase(Millions of yen)

Approx. ¥17.7 billion increaseQ4

160,591

164,865

432,025130,280

123,154

141,500

379,819

383,408

FYE 3/2021

FYE 3/2022

449,787

321,651

69,70020,293

FYE 3/2020

FYE 3/2021

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

28,65824,293

26,166FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

FYE 3/2020

FYE 3/2023

FYE 3/20245

Net Sales /Operating Profit

Domestic Environment and Energy Business

Sales and profit were down due to changes in the EPC project mix as well as depreciation at the new Harima Factory associated with operations
and increases in personnel and R&D expenses.

Net sales(Millions of yen)
Q1

Operating profit

Approx. ¥1.5 billion decrease

Approx. ¥1.1 billion decrease(Millions of yen)

Q4
Q1

Q4

Q1 Operating Margin

25,000120,770
108,657

108,123

115,985

12.0%

10.7%

10.2%

116,000
20,000

8.9%

10.0%

7.2%

14,87515,00010,61911,4758.0%

6.5%

10,9066.0%

10,00020,933

27,20322,39325,61924,025

4.0%

5,000

1,858
FYE 3/2020

FYE 3/2021

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

2,776

1,610

2,752

1,555

0

2.0%

0.0%

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

6

Domestic Environment and Energy Business

Breakdown by
Product / Service

Orders received were up, owing mainly to an increase in after-sale services (operation management and maintenance) at a municipal solid
waste treatment plant. Net sales were down due mainly to a decrease in large-scale energy plant projects.

Orders received

Net sales

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

400

300

(100M yen)
5,000

256

286
242
15

200

66

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

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

300

Order backlog

223

261

4,320

240

22

4,000

3,834

121
742

27

4,497
115
758

200

28

95

70

3,000

69

2,281

2,415

1,174

1,208

Q1
FYE 3/2023

Q1
FYE 3/2024

2,000

72

100
100

136

161

1,000

64
0

Q1
FYE 3/2022

75

24

1

Q1
FYE 3/2023

Q1
FYE 3/2024

66
0

0

Q1
FYE 3/2022

Q1
FYE 3/2023

Q1
FYE 3/2024

Q1
FYE 3/2022* Adjustments are omitted.
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

7

Domestic Environment and Energy Business

Municipal solid waste
treatment plants
Main Orders Received

There were no orders for EPC or long-term O&M (after-sale services) in the first quarter of FYE 3/2024.
Year

FYE
3/2022

Municipal
solid waste
treatment
plant

Delivered to:

Notes

Capacity

Q1

Uwajima Public Association

After-sales service

Long-term O&M

120 t/dayQ2

Hakodate City

EPC & After-sales service

DBO

300 t/dayOkayama City

EPC & After-sales service

DBO

200 t/day

Shida Public Association

EPC & After-sales service

DBO

223 t/day

Q1

Senboku Environmental
Improvement Facilities Association

EPC

Primary equipment
improvement work

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※1

124 t/day

3/2030 (18 years of operations
starting 4/2028※2)

Q1

-

-

-

Q4

FYE
3/2023FYE
3/2024

Scheduled Completion-

4/2021-3/2031(10 years)

3/2029 (22 years of operations
starting 4/2022)
3/2027 (20 years of operations
starting 4/2027)
12/2026 (20 years of operations
starting 1/2027)-*1. BTO is an acronym for “Build, Transfer, Operate.” It refers to a business method based on a private finance initiative (PFI) in which a private business operator procures funds and engages in EPC of the facility, transfers ownership of the facility to the
public upon completion, and then the private business operator operates the facility.
*2. Start of overall facility operations, including heat recovery facility

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

8

Domestic Environment and Energy Business

Energy plants
Main Orders Received

Orders were received for two EPC projects at a biomass power plant (FIT) in the first quarter of FYE 3/2024.

Year

Delivered to:
Q1
Q2

Company A
Kumamoto Clean Energy Co.

EPC
EPC

Power generation business (Biomass, FIT)
Power generation business (Biomass, FIT)

Q3

Sanko Inc.

EPC

Industrial waste treatment

Aizu Komorebi Power Plant LLC.
Chugoku Mokuzai Co., Ltd.
Noshiro Plant
Chugoku Mokuzai Co., Ltd.
Nagaragawa
Regional power Co.

EPC

FYE
3/2022Q4Q1

FYE
3/2023FYE
3/2024

Q2

Capacity

ScheduledCompletion

1,990kW
1,990kW

Autumn 2023

93.6 t/day

7/2024

Power generation business (Biomass, FIT)

7,100kW

11/2024

EPC

Self-consumption (Biomass, Non-FIT)

2,090kW

3/2024EPC

Power generation business (Biomass, FIT)

9,990kW

3/2025

Power generation business (Biomass, FIT)

9,990kWPower generation business (Biomass, FIT)

50,000kW

Sanyo-Onoda Green Energy Co.

EPC
After-sales service(Long-term O&M)
EPC

1,990kWPower Aid MIE LLC.

EPC

Company B
Soga Biomass Power Generation Co.

EPC
EPC
EPC
(Fuel conversion)

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

3/20252023-2043(20 years)
6/2024WinterFYE 3/2025
11/2024

Industrial waste treatment

150t/day

2/2026

9,990kW

8/2026

1,990kW
7,100kW

1/2026-

Nihonkaisui TTS Kanda Power Co.

Energyplants

Notes

Company C
Q3

Katsuta Co., Ltd.

EPC

Q4

Regional power Co.

EPC

Q1

Hurusato FIC Energy LLC.
Company D

EPC
EPC

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

1,990kW
7,100kW
1,990kW--

9

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

Domestic Environment and Energy Business

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.

Water Treatment Plants, etc.
Energy Plants
Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)(100M yen)
1,000

Energy Plants(100M yen)

Municipal Solid Waste Treatment Plants (After-sales service)
Municipal Solid Waste Treatment Plants (EPC)

400

800

300

600
200
400
100

200

0

0
Q1

▲ 200

Q2

Q3

Q4

Q1

FYE 3/2022

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Q2

Q3

FYE 3/2023

Q4

Q1

Q2

Q3

FYE 3/2024

Q4

Q1

Q2

Q3

FYE 3/2022

Q4

Q1

Q2

Q3

FYE 3/2023

Q4

Q1

Q2

Q3

Q4

FYE 3/2024

10

Overseas Environment and Energy Business

Orders received /Order backlog

Orders received were up owing to maintenance orders. We will continue going after new construction and renewal projects in addition tomaintenance services.

Orders received
Approx. ¥460 million increase（Millions of yen）
Q1

Order backlog (Q1)
（Millions of yen）

Approx. ¥4.8 billion increase

Q4

6,356

7,000

7,000

5,922
6,000
6,000

5,000
5,000

4,000

4,000

3,000
3,000

3,000

2,035
2,000

1,351
1,000

2,000

753

883

694
221

231

287

FYE 3/2021

FYE 3/2022

FYE 3/2023

1,460
898

1,000

713

534

0

FYE 3/2020

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FYE 3/2024(Forecast)

0

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/202411

Net sales /Operating profit

Overseas Environment and Energy BusinessNet sales were up owing to progress on new plant projects ordered in FYE 3/2023 in addition to maintenance services. Operating profit also
improved.

Net sales
Approx. ¥140 million increase（Millions of yen）
Q1

Operating profit
Approx. ¥30 million improve（Millions of yen）

Q4

Q1

Q4

Q1 Operating Margin

2500

200

2,000

150.0%

100

2000

100.0%

0

1,351

1500

1,188

1,143

-100

-53

-65

-98

1,005

-140

1000

-172

-200

-202
500

321

241

284

425

-300

-20.3%-218-22.2%FYE 3/2021

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0.0%

-7.4%
-24.9%-50.0%124
FYE 3/2022

50.0%

-400

-79.3%0

FYE 3/2020

-31

-70

FYE 3/2023

FYE 3/2024(Forecast)-500

FYE 3/2020

FYE 3/2021

FYE 3/2022-100.0%FYE 3/2023

FYE 3/2024

12

Package Boiler Business

Orders received / Order backlog

Orders received were up owing primarily to increasing orders for large-scale projects. The order backlog increased owing primarily to anincrease in orders and an increase in projects with longer delivery periods.

Orders received（Millions of yen）
Q1

Order backlog (Q1)

Approx. ¥630 million increase（Millions of yen）

Approx. ¥1.5 billion increase

Q4

8,418

9,000

18,40020,00017,92518,00017,524

16,83018,0008,000

16,000

6,391

7,000

14,000

6,000

5,455

6,887

5,694

12,0005,000

10,000

4,000

8,000

6,000

5,012

4,978

5,063

5,389

6,028
3,000

4,000

2,000

2,000

1,000

0

FYE 3/2020

FYE 3/2021

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FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

0

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

13

Package Boiler BusinessNet sales / Operating profit

Net sales were up owing to progress on projects for which orders were already received. The operating profit and loss also improved.

Net sales（Millions of yen）
Q1

Operating profit

Approx. ¥190 million increase

Approx. ¥90 million improve（Millions of yen）

Q4

Q1

Q4

Q1 Operating Margin

1200

12.0%

20,00017,86818,00016,931

16,49817,31218,000

966

915

1000

10.0%

672

800
16,000640

8.0%

14,000
600

6.0%

400

4.0%

12,00010,000

25

200

8,000

0

0.0%

6,000

4,000

3,429

3,212

3,192

3,354

3,550

-200

2,000

-400

2.0%

-83
-2.4%

-97

-129

-3.0%

-67

0.7%
-2.0%

-2.0%
-4.0%

-4.1%

0

FYE 3/2020

FYE 3/2021

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FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

-600

-6.0%

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

14

Equipment and Systems Business

Orders Received / Order Backlog

Although demand for semiconductor industrial equipment is expected to increase in the medium to long term, it is currently stagnant, soorders received were down.

Orders received（Millions of yen）
Q1

Order backlog (Q1)

Approx. ¥1.2 billion decrease（Millions of yen）

Approx. ¥4.5 billion increaseQ4

16,00014,00014,328

11,432

14,00012,00012,00010,166

10,000

8,917

10,000

8,000

8,000

6,872

6,790

8,000

5,440

6,000

6,000

2,967

4,000

2,602
2,000

1,570

1,664

4,353

4,372

FYE 3/2020

FYE 3/2021

4,000

1,701
2,000

0

FYE 3/2020

FYE 3/2021

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FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

0

FYE 3/2022

FYE 3/2023

FYE 3/202415

Equipment and Systems BusinessNet sales / Operating profit

Net sales were up owing to progress on projects for which orders were already received. Operating profit was up owing to improvement inlosses posted in the building equipment business.

Net sales（Millions of yen）
Q1

Operating profit

Approx. ¥140 million increase

Approx. ¥40 million increase（Millions of yen）

Q4

Q1

Q4

Q1 Operating Margin

12,000
2500

12.0%

10.8%

10,500

10.1%

10,000

10.0%

8,590

8,271

7,840

2000

8,360

8.2%

8,000

8.0%

1500

5.7%

6,000

6.0%

876

1000

4,000

2,000

1,720

1,682

1,572

1,771

3.1%

1,913

53

0

FYE 3/2021

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FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

656

4.0%

384

500

FYE 3/2020

826

95

169

145

192

0

2.0%

0.0%

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

16

1. Overview of Q1 FY2023 (Ended 3/2024) Financial Results

2. Financial Forecast for FY2023 (Ended 3/2024)
3. Reference Material

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

17

FY2023(Ended 3/2024)

Results Forecast

No changes from the initial forecasts announced on May 12, 2023. Our aim is to maintain orders received at a high level. Net sales are expected
to be up, profit will be down due to changes in the EPC project mix, increased R&D and human resources investment, and other factors.
 Orders received: Demand will be stable for new construction, renewal, and service life improvement of waste treatment plants, biomass power generation plants, and otherprojects, and we will go after these orders.
 Net sales: Sales will be up with the increase in the Equipment and Systems Business.
 Profit: Profit will be down due to a change in the EPC project mix, increased R&D and human resource investment, and an increase in depreciation associated with the startof operations at the new Harima Factory.

(Millions of yen)

FYE 3/2022

FYE 3/2023

FYE 3/2024(Beginning of year
forecast)

YoY change

Orders received

192,244

168,558

170,000+0.9%

Order backlog

445,304

471,211495,211+5.1%

Net sales

134,092

142,651

146,000+2.3%

Operating profit

9,928

13,813

11,300-18.2%

Operating margin

7.4%

9.7%

7.7%

-2.0ptOrdinary profit

10,647

14,68412,000-18.3%

Profit attributable to owners of parent

7,434

9,621

8,300

-13.7%

Profit per share (yen)91.53

120.22103.81-13.6%

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18

FY2023(Ended 3/2024)(Millions of yen)

Results Forecast by Segment

FYE 3/2022

FYE 3/2024(Beginning of year
forecast)

FYE 3/2023

YoY change

Order received
Total

192,244

168,558

170,000+0.9%

Domestic Environment and Energy

164,865

130,280

141,500+8.6%

Overseas Environment and Energy

2,035

5,922

3,000

-49.3%

Package Boiler

16,83018,40018,000-2.2%

Equipment and Systems

8,917

14,3288,000-44.2%

Total

134,092

142,651

146,000+2.3%

Domestic Environment and Energy

108,657

115,985

116,000+0.0%

Overseas Environment and Energy

1,005

1,351

2,000

+48.0%

Package Boiler

16,49817,31218,000+4.0%

Equipment and Systems

8,590

8,360

10,500+25.6%

Total

445,304

471,211495,211+5.1%

Domestic Environment and Energy

433,351447,646

473,146+5.7%

Overseas Environment and Energy

1,457

6,028

7,028

+16.6%

Package Boiler

4,852

5,940

5,940

+0.0%

Equipment and Systems

5,676

11,6449,144-21.5%Net sales

Order backlog* Adjustments are omitted.
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19

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 Construction, Engineering, and Maintenance divisions.
 Capital investment: Capital investment for FYE 3/2022-FYE 3/2024 will be higher than usual due to capital investment at the new Harima Factory.
 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

FYE 3/2024(Forecast)

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

3,619

3,816

3,925

4,145

4,247

-

Number of employees (people, non-consolidated)

852

875

894

958

1,002

-

Hires (people, non-consolidated)

43

45

62

79

69

50-60

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

Capital investment

638

1,564

2,420

3,844

7,100

3,600

Depreciation

797

917

1,036

961

1,136

1,900

Research and development expenses

960

1,154

1,047

1,006

1,150

2,000

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024(Forecast)

15,856

16,261

16,326

16,254

17,741

Number of employees (people, consolidated)(Millions of yen)

(Millions of yen)

Selling, general and administrative expenses (consolidated)
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

-

20

Shareholder Return
We expect to achieve our medium-term target (36 billion yen in ordinary profit for the three-year period) despite the expected decrease inprofit. Accordingly, we plan to increase the annual dividend by 5 yen to 48 yen per share.
Determined based on a comprehensive consideration that includes financial results and conditions in keeping with the policy ofmaintaining stable dividends.

Dividend
Purchase of treasury
stock

An option to be conducted flexibly based on the stock price and other factors.

Purchase of treasury stock andTotal return

Dividend per share and Payout ratio
(yen)
50.00

Q2

Q4

48

Payout ratio

43

45.00

40.00

31

35.00

25.00

20.00

10.00

5.00

0.00

36

36

38.8%

39.3%

34.3%

30.00

15.00

2

3.9%

4

5.4%

2

2

2

FYE
3/2012FYE
3/20136

5.6% 3

9
9.3%

3

5
4

FYE
3/2014FYE
3/2015(Millions of yen)

11
11.6%

13
12.6%

16
16.9%

9

22
20.5%

12

2,500

46.2%

100.0%

50.0%

1,999

90.0%

2,000

35.8%

80.0%

40.0%

60.9%

24

70.0%

49.3%

1,500

18

18

24

30.0%

1,252

38.8%

18

60.0%

50.0%

747

1,000

20.0%

48.7%

40.0%

30.0%

6

7

5

6

7

10

13

18

18

19

24

FYE
3/2016FYE
3/2017FYE
3/2018FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/2022FYE
3/2023FYE
3/2024(Forecast)

500

20.0%

10.0%

20.5%
0.0%

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

Purchase of treasury stock
Total return ratio

60.0%

10.0%

0

0.0%

FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/2022FYE
3/202321

1. Overview of Q1 FY2023 (Ended 3/2024) Financial Results

2. Financial Forecast for FY2023 (Ended 3/2024)
3. Reference Material

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

22

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”.
Municipal Solid Waste Treatment Plant Business

Overseas
Environment andEnergy1%

Equipment
andSystems
6%
Package
Boiler12%

Water Treatment

Plants, etc.

8%

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

Energy Plant Business
Municipal Solid Waste
Treatment Plants
(EPC)

20%

Water Treatment Plant Business
Sewage treatment facility EPC and after-sale service formunicipalities
Supply of electric power procured from delivered power plants
and other facilities to public facilities and private companies

Municipal Solid
Waste
Treatment Plants(After-sales

24%

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

Power Retail Business

FY2022
Net sales
142.6 billion yen

Energy Plants

Domestic
Environment andEnergyservice)29%

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*EPC: Engineering, Procurement, and Construction
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

23

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 2023 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.)

24

Performance Trends
In the latter half of the 2000s, we focused on after-sales service, which would provide its earnings base. There has been steadydemand for renewal 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
50
0

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

0
▲ 50

▲ 500
Net sales▲ 1,000

Ordinary profit

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

▲ 100
▲ 150

25

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.
Completion

Approx. 2-5 years

Approx. 20-30 years

Business Model

EPC Plant design, procurement of necessary
equipment, on-site construction andcommissioning

after-sales service

Recurring revenue
model businesses Plant operation management, maintenance, and improvement work
 O&M (for completely outsourcing operation and maintenance)• The EPC portion is recorded as sales according toprogress on the project.

• Normal maintenance and improvement work recorded as revenue as work is completed and progress is made• More tends to be recorded in the latter half of a
project as construction progresses.

• 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.

• Operation management (mostly one to several years) recorded as revenue over contract term

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*EPC:Engineering, Procurement, and Construction*O&M: A comprehensive contract for Operation & Maintenance of facilities
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

26

13th Medium-Term Management Plan (2021-2023)
FY2030

FY2020Vision2030

Previous vision

Positioning and Financial Targets

12th Medium-Term management Plan

13th Medium-Term Management PlanFirst steps towards
realizing the vision 2030

Our financial foundations
were strengthened prior to
the 12th Medium-Term Management Plan

Ordinary profit
JPY 11.0 billion

Policies

 Digital technologies
 Capital investment

 Partnerships

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

 Compliance

JPY

20.0 billion

Cumulative 3-year
ordinary profit
JPY 36.0 billion
Orders received
450 billion yen（reference）

Strengthening the management foundation
 Human resources

Ordinary profit

Laying the foundations for
additional growth

 R&D
 Manufacturing
and engineering
capabilities

Pursuit of business activities that resolve challenges
 Municipal solid waste treatment plants
 Water treatment plants
 Energy plants
 Power retail business Overseas business New business Package boilers
 Equipment and systems

27Medium-to long-term Roadmap
Aiming to maintain and expand the EPC business, while striving for steady growth in each business with recurring revenue model businesses as
the core drivers. Aiming to expand business in the environment and energy field through new businesses and M&A.
Ordinary profit

Net sales image

20.0 billion yen

13th Medium-termManagement Plan

New businesses
Equipment and Systems Business/
Package Boiler BusinessFirst steps towards
realizing the Vision2030

Overseas Businesslaying the foundations
for additional growth

Expand the business primarily in Thailand, Taiwan,
and emerging countries to grow it into a pillar ofour business

EPC Business

Domestic Environment and Energy
Municipal solid waste treatment plant/Energy
plant/Water treatment plant/Power Retail Business

Recurring revenue model businesses
O&M・Power Retail Business etc.

FYE
3/2021FYE
3/2024

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

EPC
Business

Maintain and expand positionas leading company

Recurring
revenuemodelbusinesses

Further expansion as a core
driver of growth

FYE
3/203128

13th Medium-Term Management Plan••

Progress

Steady progress is being made toward achievement of targets. Cumulative 3-year ordinary profit is to go higher than target of 36.0 billion
yen.
Lead times in the EPC Business are long, between three and five years, so single-year performance varies, but orders and profits are growing
steadily over the three-year periods of the Medium-Term Management Plans.
Orders received (reference)

Ordinary profit
13th Medium-Term Plan

(Millions of yen)
12th Medium-Term Plan

Total:

11th Medium-Term Plan
10th Medium-Term Plan

Total:

25.7 billion yen

Total:

31.9 billion yen

Profit rate 8.4％

10,6699,116

11th Medium-Term Plan
Total:

14,68410th Medium-Term
Plan Total:

12,00010,3009,646

11,028371 billion yen

FYE
3/2015FYE
3/2016517.2 billion yen

191,026

FYE
3/2017

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

FYE
3/2018FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/2022FYE
3/2023FYE
3/2024(forecast)

FYE
3/2013

188,563 192,244

177,116 179,829

170,000
168,558

148,830

148,025

113,763

109,237

FYE
3/201412th Medium-Term Plan
Total:

450 billion yen

Progress rate: 80.2％

468 billion yen

10,6477,168

FYE
3/2013

Total:

33.6 billion yen

12,334

11,60513th Medium-Term Plan

(Millions of yen)

Progress rate: 70.4％

Profit rate 9.2％

Profit rate 8.7％

9,449

Total:
36.0 billion yen

99,919FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/2022FYE
3/2023FYE
3/2024(forecast)29

Situation by Segment

Domestic Environment and Energy
Municipal solid waste treatment plants

Business
Strategy Demand for renewal and service life improvement will continue due to the aging of waste treatment facilities. We expect renewal demand to continue for thetime being.
 DBO* orders are on the rise utilizing know-how from the private sector. We expect this to continue.
※DBO: Stands for Design, Build, Operate. A method of contracting private companies for the design, construction, and operation of facilities, paid for by public funds.

Number of waste incineration facilities in operation(1,028 facilities, by operating year)(Facilities)

70

Market size for renewal demandand DBO percentage

External Environment

Order placed
Scale(tons/day)
Order scale

60

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 toemerge

6,000
5,000

DBO
percentage

DBO percentage is on the rise

DBO
percentage
(%)

4,000
3,000

30

Plant life is 15-20 years
20

2,000

10

1,000

50

0

0
1985

1990

1995

2000

2005

2010

2015

2020

2025

Source: Prepared by the Company based on the “2021 Survey of Municipal Solid Waste Treatment” by the Ministry of the Environment.
*Includes facilities under construction and where operations have been suspended.

2030

100

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

02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

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

Internal
Environment

 Strengthening our proposal capabilities for meeting regional needs leveraging our technology and expertise based on our extensive track record of delivery(approx. 370 facilities).
 Fine tuning existing core technologies through R&D and enhancing our strengths by incorporating the latest technologies such as AI and IoT.

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

30

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. Long-term O&M (contract period of 10 years or more) ratio in order backlog of Municipal solid waste treatment plantbusiness is about 60%. In addition to maintaining and expanding the EPC Business, we expanded our recurring revenue model businesses.

FuturepolicyWe will continue to differentiate ourselves by strengthening our proposal capabilities in areas other than price, centering on our technologicalcapabilities, and aim to land two-three renewal projects orders per year on an ongoing basis.

EPC orders

Order backlog

Aiming to build up orders throughexpansion of resources in addition tosteady orders(Projects)
Primary equipment improvement work
New construction/renewal(100M yen)

57%
51%

2

5

3

1
4

2
FYE
3/2013FYE
3/2014

2

3

2

2

FYE
3/2015FYE
3/20163

FYE
3/2017

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

FYE
3/2018

60%

3,432

3,602

2,217

2,329

2,928
2,426

2

2

59%

Long-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
3/2023FYE
3/2020FYE
3/2021

1,215

1,273

FYE
3/2022FYE
3/20223

Long-term O&M percentage(Municipal solid waste treatment
plant business)

31

Domestic Environment and Energy
Municipal solid waste treatment plants

Situation by Segment

Business
Strategy

Aiming for sustainable growth of recurring revenue model businesses by strengthening O&M proposals.
Results

As of the beginning of FY2023, we had received orders for long-term O&M (contract period of 10 years or more) at 25 facilities, 19 of which are
currently in operation. Operation management will gradually begin at remaining six.

FuturepolicyIn addition to capturing ongoing demand for annual after-sale services, we aim to grow its recurring revenue model businesses by strengthening
O&M proposals to non-contracted facilities.

Number of municipal solid waste treatment facilities
in operation at beginning of FY2023(Facilities)

DBO

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

19 facilities

13

11%

6

Approx. 40%120

22 facilities
20 facilities

20

5%
Approx.

in operation

Aiming for more orders forlong-term O&M

25

Long-term O&M

O&M(Less than 10 years)

Directly managed
and others

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

5

4%facilities

16 facilities
15

10 facilities

10

5 facilities

5

1 facility
Operation management

Approx. 40%

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

02007 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 25 facilities because the contracts forsome projects will expire before others begin operations.

32

Situation by Segment

Domestic Environment and Energy
Energy plants

Business
Environment

 Demand for small- and medium-sized biomass power generation, mainly from domestic fuels (such as unused timber), continues, driven by government policies for
decarbonization and soaring energy prices.
 Despite the risk of rising costs for stable procurement and distribution of fuels, the Company expects investment needs mainly in the paper and lumber industries.
 Plans based on FIT*1 (output: small- and medium-sized biomass power generation of 2-10 MW) are the main focus, but plans based on FIP*2 are also gradually emerging.

External Environment

Domestic biomass power generation introduction volume*3(MW)Japan’s energy-derived carbon dioxide emissions*4

Volume expected to increase to reachtarget for biomass power generation
introduction

8,000

10% (approx. 100 million

Transportation
18%
Public7%6,000tons) of emissions

Utility
thermal39%

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

Manufacturing
16%

4,000
Target2,000

Results

0
2010

2015

2020

2025

Agriculture,
forestry,and fisheries
2%

2030

*1. Feed-in Tariff *2. Feed-in Premium is where a certain premium (subsidy amount) is added to the price of electricity sold on the market.

Other
Industry-owned thermal
conversion
8%
4%
Industry-owned steam

6%*3. Source: 6th Basic Energy Plan from “Handbook of Energy and Economics Statistics 2022” by Institute of Energy Economics, Japan*4. Source: 2021 results from “Comprehensive Energy Statistics” by Ministry of Economy, Trade and Industry

Internal
Environment

 We have delivered many boilers and plants for a wide range of fuels and waste.
 We possess combustion technology, high-efficiency power generation technology, and plant design capabilities for difficult-to-burn fuels and waste materials.
 We are strengthening research and development to address new fuels and waste.

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

33

Situation by Segment

Domestic Environment and Energy
Energy plants

Business
Strategy

Focus on steady orders for biomass power plants and other energy plants.
Results

Since the start of the FIT program in 2012, we have received orders for 78 facilities nationwide.
Maintenance orders have been received for many of the delivered projects. Long-term O&M orders have been received for three of these, contributing to aincrease in revenue.

FuturepolicyWith EPC, the aim is to continue winning orders, particularly for biomass power generation plants. In recurring revenue model businesses (after-sales service), we
will aim for growth by proposing solutions for energy savings, functional improvement, and service life extension, in addition to regular maintenance.

Orders received (cumulative)(100M yen)

(Projects)

Aiming for steadyordersFIT
Non-FIT48

19
7

Order backlog

14

25
19

32

39
35

24

54

60

40

46

64

71

78

Maintaining high level due to stableorders despite decrease in large FIT
projects

884
730

47

52

771

758

FYE
3/2022FYE
3/2023

55

31

4
3

5

6

8

8

FYE
3/2013FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

13

14

14

17

19

FYE
3/2018FYE
3/2019FYE
3/2020FYE
3/2021FYE
3/202223
FYE
3/2023FYE
3/2020FYE
3/202134

Situation by Segment

Domestic Environment and Energy
Water Treatment Plants

Since entering the water treatment field in 1962, we have contributed to solving our customers’ challenges with unique products based on our
accumulated technology and expertise.
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.

Sewage treatment flow and theCompany’s main products

Reaction tank facility

Initial settling pond

Low power agitator
Bio Blade Mix

Final settling pond

Sand filter

Disinfection tank

Inflow/
Pre-treatment

Discharge

Features: Supports high-speed filtration,
simple and space-saving
Over 2,800 systems delivered

Drawn-offsludgeSeparated liquid
treatment facility
Fixed-bed
anammox process

Digestertank

Sludgetreatment facility
Rotating drum-typeconcentrator

Incinerator

Main project
Generator

Year
Return water

Step grate stoker type sewage sludge incineration and power generation system
Features: Energy creation through power
generation, low power
consumption, reduction ofgreenhouse gas emissions
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

Upflow moving-bed sand filtration systems
Uniflow Sand Filter

Awards: Director-General Prize of the Agency for Natural Resources andEnergy, of the 2022 New Energy Grand Prize
Institute Award (Technical Division), of the Japan Institute ofEnergy 2022 Award

Water
treatment
plant

FYE
3/2022

Q3

Delivered to(Honorifics
omitted)Description

Scale

Ochiai Water
Reclamation
CenterSand filtration
system80units

Scheduledcompletion
Jan 2025

35

Domestic Environment and Energy
Power Retail Business

Situation by Segment

Contributing to stabilizing customers’ electricity rates and reducing greenhouse gas emissions through the procurement and supply ofelectricity generated at delivered plants.
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 environmentallyconscious customers.

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

Main project

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 2023 TAKUMA Co.,Ltd. All Rights Reserved.

Electric power
supplyCustomers

Offices, plants, public facilities

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-

36

Situation by Segment

Overseas Environment and Energy

Business
Environment

 Population growth and economic growth in Southeast Asia have increased demand for biomass power generation and waste treatment plants.
 Demand for the construction of bagasse* combustion boilers for sugar mills is particularly high in Thailand. Demand for biomass power generation is
expected to grow, partly due to government promotion of renewable energy.
 In Taiwan, demand for facility renewal and service life extension is expanding due to the aging of waste power plants.
*Bagasse: ﬁber remaining after sugarcane is crushed

External Environment

2037
targetRenewable Energy Policy in Thailand*(MW)

Alternative Energy Development Plan （AEDP）

29,411

30,000

Alternative Energy
Development Plan (Thailand)

975
1,565

25,0005,790

20,00015,00011,831

10,000Waste treatment
Biogas318
527

Biomass

3,390

Increase share of renewable energy infinal energy consumption to

30.0% by 2037

Wind

5,000

Hydro
Solar

0
2016

2017

2018

2019

2037

Internal
Environment

 Established subsidiaries in Thailand and Taiwan. We have a track record of plant construction and maintenance services in each country.
 Building optimal schemes for each project through partnerships with local companies.

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

37

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

Promoted the development of a system to win orders via local subsidiaries in Thailand and Taiwan, and won 3 orders in FY2021-2022.

FuturepolicyExpand partnerships with local companies to increase orders in Southeast Asia and Taiwan. Aim to achieve profitability and growth by continuing to receive atleast one to two new construction orders per year through cost reductions achieved by expanding the scope of overseas procurement, and differentiating basedon stable operation, high-efficiency technology, and enhanced maintenance services.

Deliveries (cumulative)
Taiwan, China,
South Korea, England

ThailandOf these, biomass plants

Energy plants

158

Local subsidiaries (2 companies)

120

TaiwanTaiden Environtech Co., Ltd.

Waste treatment plants

16

Plant maintenance

Main project
Year

Delivered to(Honorifics omitted)

Description

Scale

ScheduledCompletion

Energy from
Waste plant

FYE
3/2022

Q3

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

Stoker upgrade

900 t/day

Nov 2024

Waste treatment
plant

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 2023 TAKUMA Co.,Ltd. All Rights Reserved.

Mar 2025

ThailandSiam Takuma Co., Ltd.
Plant construction supervisionand maintenance38

Situation by Segment

Package Boiler Business /Equipment and Systems

Package Boiler Business

Equipment and Systems

Domestic market has matured, but we expect a certain level of demand forrenewal and other work to continue for the time being.
We aim to expand the scale of orders by addressing higher efficiency,
energy-saving, and decarbonization needs such as electric air-conditioning
and biomass boilers and by expanding its overseas business.

Building equipment business
Robust demand is expected to continue
due to the aging of various facilities. The
Company will continue to further
strengthen its sales and construction
capabilities by securing and training
human resources, thereby steadily
expanding the scale of orders.

Group company

Semiconductor industrial equipment
business
The market is growing due to the trend
toward digitalization. The Company will
enhance its competitiveness throughcustomized product development incollaboration with universities andcustomers.

Group companies

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

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Hybrid hot
water supply
systems

Biomass
boilers

Hydrogen-fired
vacuum-typewater heaters

Custom development of
optimal environments foreach building

Humidity

Ventilation

Chemicalfilters

AMC environmental
concentration analyzers

39Strengthening the management foundation

Outline

Actively invest in further business expansion in the future.

Human Resources
Investment

R&D

Capital investment

FY3/2023 (results)

FY3/2024 (forecast)

FY3/2024 (forecast)69 people hired

2.0 billion yen

3.6 billion yen(non-consolidated)+44 people compared toprevious year

+850 million yen compared toprevious year

-3.5 billion yen compared toprevious year

Continuing to expand hiring andhuman resource development

Expanding investment with a focus
on fine-tuning core technologies
and decarbonization technologies

Completed investment in New
Harima Factory, which began
operations in January 2023. Will
demolish the old factory andconstruct a warehouse building in
FY3/2024.

New TAKUMA Building (Training
Center) was built for the humanresource development.
* 10/2020 completed
Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

Partnerships/
Digital technologies

Seeking investment opportunities todevelop new businesses andstrengthen the competitivenessof/achieve labor savings in existing
businesses*Total investment bout 13 billion yen

40Human Resources
Investment

Strengthening the management foundation

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, especially in Construction, Engineering, and Maintenance divisions.

Number of employees

Number of new hires

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

3,366

3,447

3,609

3,619

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

3,816

3,925

4,145

4,247
79
69
62

34
11

815

824

837

852

875

894

958

1,002

23

FYE 3/2016

FYE 3/2017

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2016

Copyright 2023 TAKUMA Co.,Ltd. All Rights Reserved.

29
11
18
FYE 3/2017

43

45

22

25

24

21

20

FYE 3/2018

FYE 3/2019

FYE 3/2020

37

34
10

53

41

25

26

28

FYE 3/2021

FYE 3/2022

FYE 3/2023

41

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

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.

Capture and use of CO2 after incineration

Direct conversion

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

Chemicals

Fuel

Methanation at biogas recovery plant
Methanefermentation

Ore

OxygenChemical
combustion absorption Solid carbon Biomethanation
methodmethod conversion

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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.
Storage

Use

Supply of
CO2 togreenhousehorticulture

Biomethanation

Separation and capture of CO2

Gasification

Hydrogen andammonia
combustion
technology

Food waste(Biomass resource)

CH4
MethaneBiogasCO2synthesis
H2

CH4
Methane

Usage

City gas, etc.

Biomethanation

42

Strengthening the management foundation

Partnerships /Digital technologies

Aiming to develop new businesses and add value to existing businesses by actively using partnerships and digital technology.

Partnerships

Utilizing digital technology

Deepening collaboration with other companies and organizations tostrengthen proposal capabilities and R&D.

Using Digital technologies such as AI, IoT, and robots,save labor and add value to plant operations.

Participation C2X

AI combustion control system
Development of Intelligent Control System (ICS)

Participated in the C2X (Carbon to X) Project, an open innovation
business platform for the realization of a decarbonized society.
Seeking to commercialize CCUS technology through cross-industry
collaboration.

Developed a system that utilizes AI technology to predict future
variability in combustion based on combustion images andoperational data and perform necessary operations. Reduces
manual operation by 99% and ensures stable combustion.
Operational
data
Combustion
image frominside furnace

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AI modelMaintain proper conditions

Judgment/
actionAbnormality
prediction
Operation
prediction

Avoid
abnormalconditions

Automatic stabilization of
combustion conditions

43

Handling of this document

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 ofreasons.
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 2023 TAKUMA Co.,Ltd. All Rights Reserved.

44