Financial Results Presentation
for the First Quarter
Ended June 30, 2024 (FY2024)
August 7, 2024

FUJITEC CO., LTD.
(TSE Prime Section: 6406)

Note：This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japaneseoriginal, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Executive SummaryFirst Quarter Ended June 30, 2024 (FY2024)
 Both sales and income increased year on year. Net sales increased 11.4% to ¥56,185
million, and operating income increased 3.9% to ¥3,971 million, both reaching record
highs for the first quarter.
 Orders decreased 3.6% to ¥61,553 million. New Installation business orders decreased
27.8% year on year with strong growth in Japan and South Asia offset by declines in
East Asia and the Americas & Europe. Aftermarket business increased 14.4% year on
year, with increases in all segments.
 Sales increased significantly in Japan, South Asia, and the Americas & Europe for the
New Installation business. In the Aftermarket business, sales in South Asia declined
due to delays caused by customers; however, sales increased significantly in otherregions.
 Operating income increased in Japan and the Americas & Europe. Profitability
improved in both New Installation and Aftermarket businesses.

Highlights for FY2024 Q1
 Formulated and made management structure progress (including a new Management
Committee) for Move On 5.
 Pursued a turnaround strategy in China, including structural reforms to optimize ourbusiness execution structure.
 Pursued structures to ensure growth, including a new branch in India, human resources
development, etc.
Copyright 2024 Fujitec All Rights reserved

Tokyu Plaza Harajuku Harakado(Tokyo, Japan)

2Consolidated Financial Results for the Q1
Ended June 30, 2024 (FY2024)

3

Earnings Highlights for FY2024 Q1
Sales and profits increased year on year, with net sales and all profit measures reaching record
highs for any first quarter. Operating income increased, mainly due to robust sales and improved
profitability in Japan.

(Rounded down to nearest million yen)

FY2023 Q1

FY2024 Q1

YoY change (%)

50,45356,185

11.4

Japan

17,852

21,20918.8

Overseas32,601

34,975

7.3

Operating income

3,820

3,971

3.9

Ordinary income

4,571

5,380

17.7

Profit attributable toowners of the parent

3,546

3,897

9.9

Net income per share

45.48 yen

49.95 yenー

133.17 yen

146.68 yen

Net sales

JPY/USD ex. rate
Copyright 2024 Fujitec All Rights reserved4Earnings by Segment for FY2024 Q1• Sales increased in Japan, South Asia, and the Americas & Europe. In the Americas & Europe, New Installation
business sales increased in all regions except Canada, and Aftermarket business sales increased in all regions.
In East Asia, sales slowed due to a decrease in New Installation orders caused by the prolonged real estate
slump in China.
• Operating income increased due to robust sales and improved profitability in Japan and the Americas &Europe.
In East Asia, operating income declined due to lower New Installation sales in China and an increase in provision
for losses on construction contracts in Hong Kong, where orders were strong. In South Asia, operating income
declined in Singapore due to an increase in provision for losses on construction contracts and temporary
decrease of service sales due to customer factors.
（Rounded down to nearest million yen）

Net sales

Operating income

FY2023 Q1

FY2024 Q1

Change (%)

FY2023 Q1

FY2024 Q1

Japan

18,70821,851

16.8

202

1,659

1,456

East Asia

17,615

16,067

(8.8)

1,312

370

(942)

South Asia

7,982

8,615

7.9

2,251

1,689

(561)

Americas &Europe9,693

12,915

33.2

204

297

93

Subtotal

53,99959,449

10.1

3,970

4,016

46

Adjustments(3,546)(3,264)

ー

(149)

(45)

104

Total

50,45356,185

11.4

3,820

3,971

150

Copyright 2024 Fujitec All Rights reserved

Change5Orders Received in FY2024 Q1
Orders received decreased by 3.6% year on year. New Installation business orders remained
steady in Japan and South Asia, and decreased in East Asia and the Americas & Europe.
Aftermarket business orders remained robust in all regions.
Orders Received, YoY Change(In 100 million yen)

Figures in graph: composition ratio

600

500

New
Installation
Business(27.8%)

43.4%

New
Installation
Business

32.4%

200

 Japan

20.8%

Robust increase. Orders for commercial
facilities and offices grew significantly.

 East Asia

(65.7%)

Increased in Hong Kong, but decreasedin China, affected by prolonged realestate slump.

400

300

New Installation Business(27.8%)

Aftermarket
Business

Aftermarket
Business

55.5%＋14.4%

65.9%

 South Asia 38.2%
Increased significantly in Singapore andIndia Americas & Europe (111.2%)*
Decreased in the U.S., Canada, and the
U.K.

100

0

Other

Other

Aftermarket Business+14.4%
 Japan

9.4%

Increased due to volume growth andcontract price revisions formodernization and maintenance.

 East Asia

31.4%

Increased significantly in Hong Kongand South Korea, increased in China
and Taiwan.

 South Asia 1.7%
Increased slightly. Orders in India
increased, but orders in Singapore
were affected by the delays in service
orders due to customer factors.

 Americas & Europe 19.5%*
Increased in all regions except the U.K.

(3.6%)

63.8 billion yen
FY2023 Q1Copyright 2024 Fujitec All Rights reserved

61.5 billion yen
FY2024 Q1

Figures: YoY change*Corrections in accounting entries between New Installation and Aftermarket businesses for past year orders in
Canada. Prior to correction, New Installation were -69.8％ and Aftermarket orders were +7.2%.

6

Breakdown of Net Sales for FY2024 Q1
New Installation business sales increased significantly in Japan, South Asia, and the Americas &Europe. Aftermarket business sales increased in Japan, East Asia, and the Americas & Europe.
Major Change Factors+57+11.4%(In 100 million yen)

575

36

•
1

561

550

NI
9.6%

NI
39.3%
525

19

504
500

NI
39.9%

Japan
＋13.6%
East Asia ＋11.7%
South Asia (0.4%)
Americas & Europe＋20.0％
Japan＋28.1%
East Asia (23.1%)
South Asia ＋25.0%
Americas & Europe＋60.4%

•
AFT
59.3％

•
AFT
12.4%

AFT
58.7%

•
Figures below graph bar: YoY change
Figures in graph: composition ratio

0
FY2023 Q1

Japan+28.1%
Increased due to robust orders.
• East Asia
(23.1%)
Orders were sluggish in China due toreal estate slump.
• South Asia
+25.0％
Increased in Singapore and India.
• Americas & Europe +60.4％
Increased in all regions except Canada.

New Installation
Business

Copyright 2024 Fujitec All Rights reserved

Aftermarket
Business

Other•
FY2024 Q1

Japan+13.6％
Increased mainly due to modernization
sales.
East Asia+11.7％
Modernization projects increased in
Hong Kong.
South Asia
(0.4％)
Service sales decreased temporarily in
Singapore due to customer factors.
Americas & Europe +20.0％
Increased in all regions.

NI: New Installation Business
AFT: Aftermarket Business7

Breakdown of Operating Income for FY2024 Q1
Operating income increased in New Installation and Aftermarket businesses. In Japan, operating
income increased significantly in New Installation and Aftermarket businesses due to increased
net sales and improved profitability.

Major Change Factors(In 100 million yen)

•

+1.5
+3.9%
＋5

50

Other

NI

AFT

(9)

Japan
+9
East Asia (3)South Asia (3)Americas & Europe
+2

SG&A

+6

•

+6

45

NI
40

•

(1)

38

30

Japan
+11
East Asia (5)South Asia (1)Americas & Europe
+1

•

39
Japan
(4)
East Asia (1)South Asia (2)Americas & Europe
(2)

•

•

AFT

Business earnings+5•

Figures below graph bar: YoY change
Figures above graph bar: composition (in 100million yen)0

FY2023 Q1
OP margin
7.6%(%)

FY2024 Q1

7.1%

•

Japan
＋11
Increased due to increased sales and pricerevision
East Asia(5)
Decreased due to decreased new
installation sales in China
South Asia
(1)
Decreased due to increased provision forlosses on construction contracts in Singapore
Americas & Europe＋1
Improved profitability contributed by the U.K.
and Argentina
Japan＋9
Increased due to increased sales and pricerevision
East Asia(3)
Decreased due to increased provision forlosses on construction contracts in Hong
Kong
South Asia
(3)
Affected by the delay in recognition ofservice sales due to customer factors
Americas & Europe＋2
Outsourcing costs increased in the U.S.
and Canada(In 100 million yen)

Copyright 2024 Fujitec All Rights reserved

NI: New Installation Business
AFT: Aftermarket Business8

Operating Income Change Factors in FY2024 Q1: Japan
Operating income in Japan increased significantly due to top-line growth driven by increased sales
and price revisions.
(In 100 million yen)

+14.6
+720%
Increase in New
Installation
and Aftermarket
businesses

12Increase in personnel costs
due to bonus increase

FY2023 Q1

Increase in
net sales

Copyright 2024 Fujitec All Rights reserved

Price
revisions

Decrease invariable costs

Increase inpersonnel
costs

Increase in
expenses

Royalty

Decrease inprovision forlosses on
construction
contracts

FY2024 Q1
9Highlights: Implementation and Progress in Move On 5
Three pillars of“Move On 5”

 Announced the new mid-term business plan Move On 5
in MayEstablishment of Execution and Accountability
Structure for Each Initiative As part of the implementation structure for the new mid-termbusiness plan Move On 5, we established 21 subcommittees
based on the three pillars of the overall strategy.
 In each subcommittee, we assigned roles for owner, responsible
part, and secretariate to accelerate progress.

Selection andconcentrationof regional/
business mix








Japan Strategy
East Asia Strategy
China Business Turnaround
India and South Asia Strategy
Europe & Americas Strategy
Strategy for other regions

High quality
and high
profitability








Procurement & Supply Chain
Optimization
Standard Models Development
Standard Methods
Maintenance Productivity Improvement
BPR Consideration
SGA Reduction by Cost








Working Capital Optimization
Regional Supervisory Function
R&D Function Enhancement
ESG & Environmental Management
Safety and Reliability Advancement
Themes for Four headquarters

Improvement of Progress Monitoring System
 Established a new meeting body (Management Committee) tomonitor progress and issues through subcommittees and to
discuss response measures.
 Management Committee members include domestic andinternational operating officers, regional and corporate heads,
and subcommittee owners.

Copyright 2024 Fujitec All Rights reserved

Subcommittee

Robustbusinessfoundation

10

Highlights: Initiatives in China and India, etc.
Initiatives in the Chinese Market
 Business implementation and cost structure reform
1) Workforce reduction in Chinese operations: Approximately
10% (about 300 employees)
2) Branch network reorganization: Consolidated branches from23 to 17
 Accelerated strategy implementation using external consultants
 Introduced agency network and incentive system in response tomarket changes

Construction of the Quality Lab (Tentative Name)
Building Project To enhance quality and reduce costs further, we are building a parts
analysis and evaluation center for elevators, tentatively named the
Quality Lab Building Project (at headquarters) We are also buildinga research, development, and production site (Big Wing) in Hikone
City, Shiga Prefecture, Japan. Construction is progressing asplanned and is scheduled for completion in February 2025.
Left image:Construction progress(as of July 2024)

Business Expansion in the Indian Market
 Opened a sales office in Ahmedabad (northwestern India).
We plan to increase the number of branches across India toaccelerate business growth.

Human Resource Development in the Indian Market
 Fujitec India launched the human resources development
organization FUJITEC JIM. Students will learn specialized skills
related to elevator production, installation, and maintenance,joining Fujitec India as full-time employees after one year of
training. FUJITEC JIM has been certified by the Ministry of
Economy, Trade and Industry as a Japan-style Manufacturing
School (JIM: Japan-India Institute for Manufacturing).

Right image:Completion image

Distribution of Safety Pictograms
 We translated safety information
into safety pictograms to clearly
indicate the risks and precautions
during work for all field engineers(24 countries and regions; 12
languages).

The Japan-style Manufacturing School certifies and supports human resources development organizations established by Japanese companies entering India,
based on the Manufacturing Skill Transfer Promotion Program agreed upon between the leaders of Japan and India.
Copyright 2024 Fujitec All Rights reserved

11Reference Information

12

Consolidated Balance Sheet(Rounded down to nearest million yen)March 31, 2024
Current assets

June 30, 2024

ChangeComments

190,484

192,162

1,677

Cash and deposits

80,56079,830(730)

Notes and accounts receivabletrade, and contract assets

85,141

84,354(787)

Decrease in Japan

Inventory

20,91824,113

3,195

Increase in Japan and East Asia

Other

7,653

8,231

577

Allowance for doubtful losses(3,789)(4,367)(577)

65,91769,6583,740

Property, plant and equipment

39,54741,0981,550

Intangible fixed assets

6,036

6,197

161

Investments and other assets

20,33422,362

2,028

Total assets

256,402261,821

5,418

Current liabilities

84,30487,2942,990

Non-current liabilities

6,921

7,196

275

165,177

167,329

2,152

57.9%

57.1%

(0.8pt)1,901.28 yen

1,915.07 yen

13.79 yenFixed Assets

Net assets
Shareholders’ equity ratio
BPS

Copyright 2024 Fujitec All Rights reserved

Capital investment: +1,874, Depreciation (1,130), Currency
exchange, etc.: +806

Advances from customers: +2,166, Provision for bonuses: +1,734

Foreign currency translation adjustments: +6,368, Non-controllinginterests: +1,076, Retained earnings: (5,465)

13

Major Orders
New Installation•

Dogenzaka 2-Chome South District Redevelopment (Tokyo, Japan)
27 elevators, 1 escalator

New Installation•

Ching Wah Court (Hong Kong)
30 elevators
Ching Wah Court (Hong Kong)

New Installation•

Contract for the purchase of elevator equipment and installation of escalators
for the first stage of the Shenyang Metro Line 3 (Shenyang, China)
138 escalators** Upon completion of the order, the total number of escalators supplied to the city’s subway will reach 339 units.

Modernization•

Inflight Catering Centre 1 (Singapore)
11 elevators

Copyright 2024 Fujitec All Rights reserved

Shenyang Metro Line 3(Shenyang, China)

14

Major Completed Projects
Modernization
Three Garden Road
(Hong Kong)
44 elevators and
10 escalators

New Installation
Tokyu Plaza Harajuku
Harakado(Tokyo, Japan)
6 elevators and
16 escalators

Modernization
425 Lexington Avenue(New York, US)
14 elevators

New Installation
Headquarters Building of Fubon Financial Holdings(Taiwan)
29 elevators and 4 escalators
Copyright 2024 Fujitec All Rights reserved

Photos courtesy of customers

15Company Profile
Company name

Fujitec Co., Ltd.

EstablishedFebruary 1948
(Listed in First Section of the TSE in February 1974, switched to TSE Prime Market in April 2022)

Head office

Big Wing 591-1 Miyata-cho, Hikone City, Shiga Prefecture

Business

R&D, manufacture, sale, installation, and maintenance for elevators and escalators

Capital12.533 billion yen (78,900,000 issued shares)

Officers

President and CEO Masayoshi Harada
Directors: 9 (of which 6 are Outside Directors)
Audit & Supervisory Board Members: 4 (of which 2 are Outside Audit & Supervisory Board Members)

Employees

Consolidated: 12,004 (non-consolidated: 3,350)

Affiliated companies

40 (of which 25 are consolidated subsidiaries)(Japan, Americas, East Asia, South Asia, Europe, Middle East)

Copyright 2024 Fujitec All Rights reserved

16

Cautionary Note on Forward-looking Statements, etc.
This document contains forward-looking statements regarding Fujitec business and industry trends basedon current plans, inferences, expectations, and predictions by Fujitec. These forward-looking statements
are subject to various risks and uncertainties.
Known risks, unknown risks, uncertainties, and other factors may lead to results that differ from the forwardlooking statements contained herein. Fujitec cannot guarantee the accuracy of forward-looking statements
and predictions, and actual results may differ significantly from the future prospects presented herein.
All forward-looking statements in this document are made as of August 7, 2024, based on information
available to Fujitec at that time. Fujitec will not update or revise any of the forward-looking statements in thisdocument or reflect future events or circumstances in them.

August 7, 2024

Financial Results Presentation
for the First Quarter Ended June 30, 2024 (FY2024)
TECKY
Copyright 2024 Fujitec All Rights reserved

17