Medium-Term Plan “VISION 2027”
May18, 2022

Japan Elevator Service Holdings （TSE Prime Market: 6544）
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VISION20272【Basic Strategy】
Over the 28 years since its founding in 1994 through 2022, Japan Elevator Service has grown tobecome the leading independent elevator service company in Japan, with over 75,000 elevators
under maintenance contracts.
We aim to build upon the experience cultivated to date to accelerate growth and double thenumber of elevators under contract to more than 150,000 over the coming five years. As befits
our TSE Prime market designation, we also aim to address social and environmental issues,
respond to social change, and achieve sustainable growth in operations and corporate value.
【Key Indicators】

GrowthProfitability

Shareholder returns

Elevators undercontract of 150,000,
Sales of ¥60bn+

OPM 20% (excludinggoodwill amortization)

Dividend payout ratioof 40% or more

Growth and profitability metrics to be met by FY2027/3
OPM excludes goodwill amortization (a transitory item), premised on progress with aggressive
M&A【Growth Strategy】
 Growth in Maintenance and Preservation Services sales driven by expanded domestic market
share (organic & M&A)
 Tap demand for modernization through increase in number of elevators under contract
 Raise profitability by improving business productivity and efficiency through staff training,
digitalization

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VISION2027

3

Raise corporate value through growth, prosper together with all stakeholders
Double the number of elevators
under maintenance contracts in Japan

Over 150,000
Operating profit margin

Net Sales

Over 60 billion yen20%

OperationalgrowthProfitability

ESGShareholder
returns

Reduce environmental burden
Diversify staff
Enhance governance

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Dividend payout ratio

40% or more

VISION2027：Growth Targets (Elevators under Contract, Sales)

4

Raise elevators under contract to over 150,000 by 2027
Trends in elevators under contract, sales
Maintenance Contracts

Sales(100million)

Over 60 billion yen

After Listing
CAGR
15%+

297

56
20,00077
25,600104 118
32,00035,000135 153

38,80043,400

179

213

320

Over 150,000

245
150,000

48,80054,80067,50079,000

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VISION2027：Growth Targets (Share Growth in Japan)5 Carried out upfront investment, focused especially on recruitment, to acquire share inWest Japan and other new regions
 Kansai JIC (tentative name) completion slated for March 2024, should drive growth insales, margins, service capacity
 Operating framework has been put in place to enable full-scale nationwide expansion from
historical base of Tokyo, Saitama, Chiba, Kanagawa. Aim to double number of elevators
under contract to 150,000 over the next five years
Number of elevators under contract in Japan(excluding independent service providers)

Regional weighting for elevators undercontract at JES (East Japan vs West Japan)

From Japan Elevator Association research(Survey of number of elevators in field in FY2020)

West Japan
Approx.

34％

Elevators under maintenance contracts
in JapanWest Japan
Approx.

46％

East Japan
Approx.

54％

Approx. 150k

West Japan
Approx.

As of end-Mar FY2027/3

19％

East Japan
Elevators under maintenance contracts
in Japan

Approx. 79k

As of end-Mar FY2022/3

East Japan
Approx.

81％

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Approx.

66％

VISION2027：Growth Targets(Our Share of Market Served by Independent Service Providers)6

Establish overwhelming lead among independent service providers through organic
share capture plus M&A-driven operational expansion
Current Situation
Maintenance Ratio Affiliated to Independent

VISIONJES Group share amongst independent
maintenance companies
Target Share:

50%
Independent

Expand market share
JES Group

Approx. 20%

Approx.

OthersManufacturer-affiliatedApprox. 80%

Source: Mitsubishi UFJ Research & Consulting

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VISION2027：Profitability Targets (Operating Profit Margin)

7

Productivity-driven profitability improvements through increase in elevators undercontract, staff training, digitalization
1.

OPM (%) trends

OPM (¥100mn)

Operating Margin（%）

20

15

1415

13
11CAGR25%+

947
4136

527
20
14-Sales growth through increase in elevators undercontract
Win contracts on 100,000 elevators, chiefly in East Japan
area
Obtain market share of 10%, chiefly in West Japan area
Potential for growth in Modernization revenue inproportion with growth in elevators under contract

2. Raise productivity, service capacity- Increase in number of elevators per employee on increasein number of elevators under contract- Improve service capacity through staff training using
internal training systems- Higher productivity, service capacity on completion ofKansai JIC (tentative name)
３． Cost reductions- Use recycled or refurbished products to contribute to ESG- Reduce indirect fixed costs, procurement costs as increasein elevators under contract boosts economies of scale

Improved profitability in parallelwith number of elevators under contract

6OPM: 20%
(When elevators under contract reaches 150,000;
ex. goodwill amortization)
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VISION2027：Shareholder Return Targets

8

Stable increase in EPS and DPS; dividend payout ratio of 40% or more
Adjusted EPS (¥)

Dividend payout ratio (%)

27.5

30.7

45.6

21.0

41.3

42.8

43.6

15.8
10.6
4.2

17/3

33.1
18/3

19/3

20/3

21/3

22/3
23.6

Adjusted DPS (¥)

Keep dividend payoutratio above 40%

14.0
12.0
9.0
6.5
3.5
1.0
17/3

18/3

19/3

20/3

21/3

22/3

17/3

18/3

19/3

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20/3

21/3

22/3

Disclaimer and Caution Concerning Forward-looking statements

9Disclaimer
 Japan Elevator Service Holdings (the “Company”) has prepared these materials for your reference, sothat you may understand the current status of the Company
 While these materials have been prepared based on generally-known economic and social conditions
and certain assumptions that we have determined to be reasonable, the information contained herein
is subject to change without prior notice for reasons such as changes in the business environment

Caution concerning forward-looking statements

 The data and information in this presentation contains forward-looking statements. These statements
are based on certain assumptions underlying current expectations, forecasts, and risks, and carrywith them uncertainties which could cause actual results to substantially differ from the projected
figures These risks and uncertainties include general industry and market conditions, as well as generaldomestic and international economic conditions, such as changes in interest rates and exchange rates
 The Company has no obligation to revise the forward-looking statements contained in thispresentation at a later date, even if new information and/or future events emerge

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