TAKAMIYA Report
Fiscal Year Ended March 31, 2023

2023

Contents
Introduction

Draw the Future and It Will Come

Mission Statement

02

Management Philosophy

03

Message from the President

04

Our Path to Value Creation and Our Strengths

Takamiya provides comprehensive services for a wide variety of products,
including temporary equipment, ranging from development and manufacturing
to sales, rental, design, installation, management, and logistics.
We use technological innovation to create products and services with highadded value and develop platforms that provide solutions to our customers.
As a provider of one-stop services for all construction work, including on-site
safety and workability, we contribute to the growth of the construction industry.

Takamiya’s History

10

Takamiya’s Value Creation Process

12

Identifying Material Issues (Key Issues)

14

Business Environment and Risks & Opportunities

16

Takamiya’s Business Model

18

Special Feature: Providing Value Created through Building Platform

20

Takamiya’s Businesses

26

Sales Business

28

Rental Business

30

Overseas Business

32

Medium-Term Management Plan

34

Message from the CFO

38

Initiatives to Achieve Value Creation
Human Resources

40

Environment

44

Safety / Trust of Customers

45

Dialogue between Outside Directors

46

Directors, Audit and Supervisory Committee Members, and Executive Officers

50

Corporate Governance52

Facts / Data

Editorial Policy
The content of this report ranges from the TakamiyaGroup’s history to its strategy for medium- to long-termvalue creation, the path to achieving its mission andvision, and financial and non-financial information.
Our aim is to provide all stakeholders, in particularshareholders and investors, with a better understandingof the Takamiya Group.
We hope this report will help you deepen your understandingof the Takamiya Group, which is transforming into a newcorporate group, with “Love” set as the Mission
Statement.
We will continue to disclose information in an easy-tounderstand manner, reflecting the opinions and requestsof various stakeholders.

Note Regarding Forward-Looking Statements
The performance forecasts and other forward-looking
statements in this report are assumptions made by theCompany based on information available at the time of
publication, and involve inherent risks, uncertainties, andvarious other factors that could cause actual results todiffer materially from forecasts herein.
Scope and Period Covered
This report is a collection of information that is highly
relevant to the Takamiya Group. It covers the fiscal year
ended March 31, 2023 (from April 1, 2022 to March 31,2023) unless specified otherwise, and also includes
information on subsequent periods (on and after April 1,2023) for latest updates.

Financial and Non-Financial Highlights

56

11-Year Financial Summary

58

Corporate Information / Share Information

60

Domestic and International Network

61

Map of Disclosure Tools
WebsiteShareholder / Investors (IR)https://www.takamiya.co/en/ir/

TAKAMIYA
ReportWebsiteCorporate Information

https://www.takamiya.co/en/corporate/

Results Briefing Materials

WebsiteAnnual Securities Report

Product Information

Historical Data

https://www.takamiya.co/en/

Financial Information

Non-Financial Information

TAKAMIYA Report 2023

01

Introduction

Mission Statement

This world in which we live is constantly on the move,
driven by the complex intertwining of national economies
and the business activities of countless companies.
Individual companies are made up of the untiring
endeavors of their members.
What motivates people?
Their own ambitions. Consideration for their families.
We believe these are where it all starts.

Management Philosophy
Love yourself
From birth, we have all been given our own life to live. It is only natural that
we seek to keep on improving ourselves, to be better tomorrow than weare today. We need to be disciplined, and we need to be humble; we needto remember that even those things we regard as everyday events are infact precious and can be experienced only once.

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

Love others
Love starts with showing consideration for our family—our parents, ourThat is why our Mission Statement is “Love.”brothers and sisters. Loving others means showing consideration for ourfriends, our neighbors, and all the people of the world, and wishing foreach other’s happiness.

Love the company
Companies are an innate part of the local community. We are grateful tothe community, the country, and the world in which we were raised, andwe do our best to give back to each of these however we can. Groups
naturally form wherever people gather. The company is one such group.
Through the company, we give back to the community, the country, andthe world. This is what it means to love the company.
02

TAKAMIYA Report 2023

TAKAMIYA Report 2023

03

Introduction

Message from the President

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

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

Takamiya Platform to Realize Business Transformation

Kazumasa Takamiya
Representative Director,
President and Chairman

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

Feature: Source of Value Creation: TAKAMIYA Platform

P.20-21

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

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

04

TAKAMIYA Report 2023

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

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

(¥ million)

5,000

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

3,703

41,89439,80038,812

4,000

2,713

3,000

2,253
20,000

1,586

2,000

1,682

10,000

0

1,000

2019

2020

2021

2022

2023

0
(FY Ended March 31)

TAKAMIYA Report 2023

05

Message from the President

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

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

Identification of Material Issues (Key Issues)

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

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

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

FY Ending March 31, 2024

06

TAKAMIYA Report 2023

Net sales

Operating income

Operating income
margin¥48 billion¥3.8 billion

7.9%

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

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

Medium-Term Management Plan / Message from the CFO

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

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

TAKAMIYA Report 2023

07

Message from the President

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

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

Human Resources

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

08

TAKAMIYA Report 2023

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

Environment / Safety / Trust of Customers

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

Dialogue between Outside Directors / Corporate Governance

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

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

TAKAMIYA Report 2023

09

Our Path to Value Creation and Our Strengths

Takamiya’s History
FY ended
March 31, 2023

Using foresight—staying ahead of the issues facing society and the coming changes of the times—Takamiya has
been providing value to society by innovating its businesses and creating frameworks whenever necessary. Here,
we showcase our history of transformation.

¥41,894
millionTakamiya
Platform
Development and manufacturing

Net Sales
Sales

PartnerBusiness and Value Chain Expansion

DesignPartner

TAKAMIYA

PartnerPartner

Installation
Takamiya Platform

RentalPartners and Takamiya’s Customers

Management and logistics
1970

10

1980

1990

2000

2010

2020

1974–

2000–

2010–

2015–

2021–

Established the scaffolding rental businessEntered environmental businessin pursuit of safety, environment,
and workability

Iq System revolutionized
the industry and createda business structure

Ventured into new businessdomains leveraging
our business structure

Accelerating transformation
by creating new structures

Having started its business in 1969 as a scaffolding seller, the Company quickly
shifted to the rental business. During construction for the Japan World Exposition,
Osaka in 1970, many construction companies procured large amounts of equipment in
Osaka, and sold it off immediately after use. Anticipating the era of the temporary
equipment rental business, we decided to change our business structure. We went on
to establish frameworks and systems that have become a standard in the industry
today, such as a security deposit system for products and minimum rental periods.
From the 1980s, aiming to expand its business scale, the Company developed
operations in Tokyo and across the country. Furthermore, in a bid to strengthen its
business foundation ahead of others, the Company worked on establishing the
Scaffolding System Engineering Office, automating its equipment supply locations,and introducing a CAD system. In the 1990s, the Company established its own quality
control standard to improve safety.

In the 2000s, construction investment shifted fromhighways and new infrastructure to disasterprevention, repair, maintenance, and improvement.
Anticipating further changes, we entered theenvironmental business. Since then, we havepositioned the environmental business as animportant part of our growth plan and introduced
several strategic products, such as the YT Lock
System, designed for disaster prevention works onmountain slopes, where accidents can easily
happen, and the Lift Climber, which targets
large-scale maintenance and repair projects forhigh-rise condominiums and office buildings.

In 2010, we acquired a company that
manufactures temporary equipment for
construction with the intention of revolutionizing
scaffolding, which had not changed in 50 years.
We developed the next generation of scaffolding
in-house and launched it in 2013. Iq Systemnext-generation scaffolding increased the story
height from the conventional 170 cm to 190 cm
while providing excellent workability. It is steadilysolidifying its position as the de facto standard for
scaffolding. We also established the Scaffolding
Construction Department to handle scaffolding
installation in-house, and have built a system inwhich each of our functions creates synergy withthe others, such as responding to the labor
shortage at construction sites while promoting ournext-generation scaffolding.

We have advanced into various fields based on
our core business in scaffolding. In 2015, weentered the agriculture business. Agriculture,
which is a primary industry, faces many issues,
such as the aging of agricultural workers and theabandonment of farming for economic reasons.
In light of these issues, we used the metalworking
technologies we have cultivated through thedevelopment of temporary equipment to createand sell agricultural greenhouses that are highly
weather resistant. Also, we have worked tostrengthen our role as a manufacturer and offer
value in new domains, such as through thedevelopment and sale of anti-seismic damping
frames to protect homes from earthquakes.

In addition to revising our business model tostay ahead of the times, we are carrying out atransformation to continuously increase ourcorporate value through the development ofhigh-value-added products and services. We willcontinue to take on the challenge of creating newvalue, and aim to become a corporate group thatdrives qualitative development of the industry.

Japan World Exposition, Osaka

Japan’s economic boom

Construction investment shiftedLabor shortage

Growing need for productivity improvement

Anticipated the era of the rental business for
temporary equipment for construction work

Rival companies engaged inprice competition

From new construction to disaster prevention,
maintenance, and repair• Labor shortage at construction sites• Securing excellent human resources andimproving productivity became challenging

Advent of the era of productivity improvement, required not only atconstruction sites but also in various industries including agriculture

TAKAMIYA Report 2023

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11

Realizing Our Vision

Our Path to Value Creation and Our Strengths

Takamiya’s Value Creation Process
Takamiya has created new business models through foresight—staying ahead of the changes of the times andinnovating its business portfolio and frameworks. We will repeat this process and provide products and services
that resolve social issues, so as to continuously improve our corporate value.

Business Environment and Social Issues

Business Activities

Value to Society
Construction
company

Realization of a safe and secure society
Infrastructure
redevelopment

Preparation for
natural disasters

OutputSafety andsecurity atconstruction sites

Business value¥41,894 million

Net sales
Business Environment and Risks & Opportunities
P. 16

Scaffolding
construction
company

RentalTemporaryequipment rental
company

Sales

Medium-Term
Management Plan
P. 34-37

Leverage for Achieving Transformation

Takamiya’s
Value Chain

Input

Management
and logistics

Sales bybusinesssegment

Message from the CFO

Sales Business¥13,157 million

Rental Business¥24,714 million

Overseas Business¥8,986 million

P. 38-39

Human capital
Number of employees

1,266
Non-consolidated
736
ConsolidatedIntellectual capitalIntellectual property rights

Scaffolding
manufacturing
company

Development
andmanufacturing

Equipment supply locations
Sales bases
Subsidiaries

Logistics
company

4 locations
29 locations
21 locations
14 companies

P. 26-33

Share ofnext-generation
scaffolding

Financial capital
Total assets¥62,749 million

Interest-bearing debt

¥30,143 million

Reinforcement of diverse personnel

Environmentally friendly operations

to support our sustainable growth

Creation and promotion of products andservices that contribute to the achievement ofa recycling-based society

Creation of attractive working environmentsthat ensure both physical and mental healthResponsible procurement and respectfor human rights

Continuous product safety and quality

Iq System

4.65 million kWh* Only for our sales

9.49 million m

Utilization rate forrental assets

71.50%

Sophistication of corporate governance

Information security and privacy management

465 companies

Cumulative square
footage of Iq
Systems sold2

Social value
CO2 emissions

194,305 t-CO2

P. 14-15

Environment

Natural capital
Power consumption

37%

Cumulative
number ofcustomers

On-sitescaffolding
assembly
company

TAKAMIYA Material
issues (Key Issues)¥2,253 million

Operating income

435 cases

Manufacturing capital / Network
Manufacturing bases

Takamiya’s Businesses

Design andinstallation

Managementfoundation

Human Resources /Environment
P. 40-44

Corporate Governance
P. 52-55

P. 44

Mission Statement /Management Philosophy
P. 02-03

Strengthen capital • Reinvestment
12

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13

Our Path to Value Creation and Our Strengths

Identifying Material Issues (Key Issues)
In addition to the risks and opportunities that could
have a significant impact on its medium- to long-term
management strategies, in August 2023 the Company
identified eight material issues that are important for
its stakeholders and that could have a major impact on
its management and business activities. We willcontinue to implement long-term initiatives to resolve
social issues and meet stakeholder expectations
through our future business activities, leading tosustainable enhancement of corporate value.

Identified Materiality

Takamiya Stakeholders

Item

Extraction of social
issue items

Societyand theEnvironment

Employees

1

Environmentally friendly
operations

Questionnaire for officers andother stakeholders to assess
the level of importance

Why We Consider These ImportantE

Within our Company and throughout ourvalue chain, we are engaging in initiatives toreduce GHG emissions and mitigate
environmental impact relating to water
stress, air pollution, biodiversity, and landuse.

To realize a sustainable society and sustainablecorporate growth, it is imperative to pursue
businesses that take environmental impacts into
consideration. We believe this is to minimize theenvironmental burden and risk through our
corporate activities, and to contribute to thesustainable development of society.

2Creation and promotionof products and services
that contribute to theachievement of arecycling-based society

E

Ensure efficient utilization of limited
resources (natural capital, human capital,social capital), and introduce and promote
products and services that contribute to theachievement of a recycling-based society.

We believe this is important as it is necessarythat we ensure effective use of limited resourcesto achieve a sustainable society. The constructionindustry is facing challenges such as labor
shortages and the deterioration of social
infrastructure. We will introduce products andservices that address these challenges and aim
to achieve a recycling-based society.

S

Engage in initiatives to track and manage thesocietal and environmental impacts of the
raw materials used in our products, andprotect the rights of those associated withraw materials.

We believe it is important to choose environmentallyconscious raw materials and to protect the rights
of workers in their production process. Products
manufactured with the right materials, processes,
and with respect for the environment have highreliability. By promoting these products, we aim
to achieve a sustainable and fair society.

Engage in initiatives to attract, nurture andretain diverse employees who possess
advanced skills.

We believe this is important as diverse talents
and capabilities are essential for sustainablecorporate growth. Based on our Mission
Statement of “Love,” we conduct peoplecentered management under a Management
Philosophy that views human resources as theessence of corporate strength, and we will
respect, reinforce, and develop diversity.

Shareholders
and Investors

To identify our material issues, we extracted social issue items to examine. While referring to internationalguidelines in the area of sustainability, including MSCI, SASB, GRI, and the SDGs, as well as information
disclosed by benchmark companies, we extracted social issue items based mainly on relevance to our businessactivities and challenges faced by society and the construction industry. We assessed these social issue items

3

based on their level of impact on and level of importance for our business and society. We then created a list of
material issue candidates based on the items deemed to have a high level of impact and importance.

STEP 2

Details

Customers
and Partners

Identification Process
STEP 1Category

Responsible procurement
and respect forhuman rights

Using the material issue candidates we selected in STEP 1, we conducted hearings in the form of questionnaires
for officers and other stakeholders closely related to the Company on their expectations for each issue item andtheir judged level of importance. We also interviewed other stakeholders including employees, clients,
institutional investors, and local administrations, seeking information on which of each of the issues should beprioritized, alongside the reasons why, based on their relevance to the Company and their impact on society.

4

Reinforcement of diverse
personnel to support oursustainable growth5

Creation of attractive
working environmentsthat ensure both physicaland mental health

S

STEP 3Creation of material issue
candidates based on the
results of hearings

STEP 4
Approval by the Board of
Directors

Based on the results of the hearings from STEP 2, we assessed each issue item based on the two axes of its
level of importance for the company and its level of importance for our stakeholders. We then integrated andassessed their overall importance to put together a final material issues proposal and create a material issues map.

The final material issue proposals created in STEP 3 were then reported to the Management Committee and theS

Board of Directors, alongside the purpose for their selection and the selection process. Following a resolution,material issues in line with changes in industry trends and new ESG issues.

Continuous productsafety and quality

S

In addition to enhancing the safety of
products, engage in initiatives to ensuresustained safety and thorough quality control
throughout procurement, manufacturing, anddevelopment processes.

As our products are used on construction sites,
their safety is directly linked to the safety ofworkers. We believe this is important as it isessential to enhance product safety to prevent
industrial and other worker accidents and toensure our products can be used with confidence.

G

Engage in initiatives aimed at highly
transparent corporate governance, thoroughadherence to corporate ethics, andcompliance with laws and regulations, aswell as initiatives to maintain internal
systems for monitoring, management, andprevention to support these efforts.

The support of our stakeholders is paramount, if
we are to enhance our corporate value over the
medium to long term. To gain the support of our
stakeholders, it is essential that we ensure highly
transparent corporate management, respect therights of our stakeholders, prevent organizational
fraud or misconduct, and ensure fairness indecision-making and operations in corporate
management.

S/G

Engage in initiatives to establish information
systems that balance versatility withconfidentiality, and to prevent information
leakage and manage privacy.

We hold a vast amount of data on customers andvarious construction sites, and we will ensure
thorough management of large volumes of data
as we make further utilization of digital tools andpromote DX. Information security and privacy
management are essential to ensure that ourservices can be used with confidence.

Finalized Material Issues Map
1

Environmentally friendly operations

2

Creation and promotion of products and services that
contribute to the achievement of a recycling-based society

5
6

14

8
6
1

Responsible procurement and respect for human rights
Reinforcement of diverse personnel to support oursustainable growth
Creation of attractive working environments that ensure both
physical and mental health

Stakeholders

4

5

7
3

7
2

7

Sophistication of corporate governance

8

Information security and privacy management

8

Our Company

Sophistication of
corporate governance4

Continuous product safety and quality

TAKAMIYA Report 2023

(Note: We provide various safety training programs,
including scaffolding safety education for users
and operators of our products, with the goal of
reducing fatal industrial accidents.)

We believe the creation of better working
environments will enable us to enhance worker
motivation, happiness, and productivity. To
enhance safety not only for our employees but
for workers at construction sites as well, we arealso implementing training such as scaffolding
safety education.

they were decided as official material issues of the Company. Moving forward, we will regularly review these63

Minimize safety and health risks for everyone
involved in our business, and create an
attractive working environment that promotes
both physical and mental well-being.

Information security andprivacy management

TAKAMIYA Report 2023

15

Our Path to Value Creation and Our Strengths

Business Environment and Risks & Opportunities
Primary Factors

Changes inthe economic
environment

Risks & Opportunities

Transition from new
construction to maintenanceand repairs

Productivity improvements atconstruction sites

Opportunity

Capital investment trends of private companies• Capital investment of private companies is affected byeconomic trends• Hold versatile temporary equipment and technologies that can be applied to a wide
range of works including public infrastructure construction works, because government
investment (mainly civil engineering works) tend to increase amid economic downturns

Risk

Opportunity

Increase and decrease in domestic construction
investment amount• Construction investment amounts have an impact on us,
because our main business is related to temporary equipment
for construction works• Enhancement of highly versatile temporary equipment and supply system• Nurture businesses beyond the temporary equipment for construction work sector• Expand business overseas (ASEAN countries) which is not directly affected byconstruction demand in Japan

Risk

Rapid depreciation of the yen• Manufacturing and transportation costs will increase due to soaring
energy and raw material prices• Pass on higher raw material prices to selling prices as appropriate

Risk

Decrease in demand for new construction of transportation
infrastructure• Demand for new construction of infrastructure is shrinking, resulting
in oversupply of large-scale falsework equipment for bridge
construction in highways and railroads• Sell to ASEAN countries where demand for construction of infrastructure is expected

Increase in demand for infrastructure maintenance and repair• More than 50 years have passed since the construction of domestictransport infrastructure such as highways, and demand formaintenance and repair is increasing• Longer construction periods at rental customers’ sites result inbetter profitability on a site-by-site basis• Expand the lineup of temporary equipment required for maintenance and repair work of
infrastructure, and renew temporary equipment to more versatile types

Accelerated spread of next-generation scaffolding• Demand for Iq System next-generation scaffolding, which enables
safe and easy work without bending forward, will increase• Demand for lighter scaffolding will also increase because it enables
not only space savings in equipment storage areas, but also
improves transportation efficiency and reduces the work burden for
scaffolding installation• Replace all tube pipes held with high-tension steel pipes to make them lighter• Completed replacing equipment with next-generation scaffolding Iq System withsuperior workability and safety• Make equipment lighter by switching material from steel to aluminum• Increase production capacity of Iq System

Risk

Obsolescence of temporary equipment held

• Development of innovative construction methods may eliminate thedemand for temporary equipment including scaffold• Nurture businesses beyond the temporary equipment sector (agriculture business, etc.)• Shift to business models that do not rely on hardware (platform business)

Risk

Delays in promotion of DX due to the shortage ofIT professionals• We may lose our market share if we cannot secure IT professionals
and cannot provide DX-related services in a timely manner• Promote the hiring of IT professionals and the training of employees• Digitize factory forms and store documents electronically• Adopt incentives for employees for DX initiatives

New demand• Online transactions will become the norm, and being well-prepared
may increase the number of new customers and the amount oftransactions with them

• The Group has been working on building/construction information modeling (BIM/CIM),
which is essential for DX in construction, and opportunities for receiving orders will
increase due to the expansion in demand• We introduced the online system “OPERA,” which diversified order channels andincreased opportunities

Increasing number of new companies entering the
agricultural sector• There is demand for facilities with high yield potential for a relatively
large investment• Many new farmers are starting out, requiring automatic control andcultivation know-how• Demand of facilities and equipment for productivity improvement
increases, necessitating increase in yield per acreage• Develop pipe houses for agriculture and products for agriculture, utilizing our metalworking
technologies and steel pipes for scaffolding• Release of G-Castle Pro and G-Castle Neo48 high-performance agricultural greenhouses• Implement demo cultivation with our products, and collect know-how and data toleverage them (“Hanyu Aisai Project”)• Collaborate with other companies on smart agriculture

Surge in raw materials, fuel costs, and transportation costs• Raw material/fuel prices and transportation costs may surge dueto the rise in the prices of fossil fuels driven by the reduction of
CO2 emissions• Make components smaller and lighter through the systemization of scaffolding, thereby
reducing the number of vehicles and round trips required to transport equipment• Shift from suburban to urban equipment supply locations (Takamiya Lab. West)

Demand for new construction and renewal of plants• Demand for construction including renewal and new opening offacilities increases due to the usage restriction of fossil fuels andenergy efficiency as well as increase in usage of alternative energy
including hydrogen and electricity
E.g., Power plants, hydrogen production plants, supply bases (gasstations), net zero energy buildings (ZEBs) and net zero energy
houses (ZEHs)• Develop and sell next-generation solar carport, POGERO• Develop scaffolding supply bases for new construction and maintenance of electric
power plants

Slowdown in business and economic activities• We may be forced to shut down our operations due to natural
disasters such as earthquakes and typhoons, and the spread of
infectious diseases such as viruses• Diversify risk by operating 29 equipment supply locations across the country• Distribute manufacturing bases in 4 locations: 2 in Japan and 2 overseas• Promote remote work

Response to recovery and reconstruction from disaster• Demand for temporary equipment necessary for construction works
rises to quickly recover from damage to transportation infrastructure
due to natural disasters• Position equipment supply locations across the country and establish the system tosupply temporary equipment necessary for recovery and reconstruction works

Shortage of personnel and manpower• New hiring becomes difficult due to the advancement of thedeclining birthrate• Securing talents with skills and qualifications such as scaffolding
installation becomes difficult• Enhance employee benefit programs as well as improve working conditions andenvironments mainly through workstyle reform• Implement various training, scaffolding safety courses, etc.

Increased demand for new and existing products• Amendment of laws and guidelines to secure the safety of workers
in construction sites generates demand for new products• Introduction of five‐day week is promoted and overtime work is
capped in the construction industry• Promote development, manufacturing, and sales expansion of products with highsafety and workability, such as Iq System next-generation scaffolding and SPIDERPANEL panel-type hanging scaffolding system• Develop products with lighter weight and aluminum materials

Opportunity

Opportunity

Digital transformation (DX)
Opportunity

Changes inthe social
environment

Diversification ofagricultural workers

Opportunity

Risk

Response to climate change
Opportunity

Risk

Natural disasters
Opportunity

Domestic demographic trends

Changes in laws
and rules
16

TAKAMIYA Report 2023

Amendment of Ordinanceon Industry Safety and Health(related to scaffolding)Long-Term Responses and This Fiscal Year's Initiatives

Risk

Domestic economic trends

Exchange rate fluctuations

Reasons

Risk

Opportunity

TAKAMIYA Report 2023

17

Our Path to Value Creation and Our Strengths

Takamiya’s Business Model

Takamiya Platform
Making Our Customers Partners in Our Platform
Going forward

Transforming from a Flow Business to Stock-Type BusinessTakamiya has used its business foundation to provide services to customers while enhancing each function to makethem more convenient. Now, we are ready to open up this enhanced business foundation as a platform forcustomers. In doing so, our customers will become partners who share the platform, enabling them to use
Takamiya’s business foundation (temporary equipment business infrastructure) as part of their own, and facilitating
the expansion of their business scale, geographical area, and domain.
The high-value-added services offered on our platform enhance profitability for Takamiya and for our partners. By
encouraging customers to use our platform and our services, we will transform into a highly profitable and stable
stock-type business.

Utilizing the features of Takamiya

Combining the features that each of our customers
need to provide tailored solutions

as their business foundation

Partner

An Evolving Business Model

Partner

TAKAMIYA

Partner

By being a true partner for our customers, weare achieving both the evolution of ourcustomer’s business and the transformation
into a stock-type business model.

Takamiya’s Business Foundation

Stock-basedxPartners

Responding to Changing
Connections with an Evolution
in the Value We Provide

Partner

Takamiya Platform

A business foundation developed based on
customer needs and backed by 50 years ofexperience in construction sites

Partners and Takamiya’s Customers

Takamiya Platform
In the past

Flow-basedx
Customers

Design andinstallation

RentalThe User's Business
Providing solutions toaddress challengesof customers

The user’s own
corporatefunctions

TAKAMIYA

Aiming to expand scaleof business

Sales

Management
and logistics

Business foundation
Takamiya’s customers

TAKAMIYA

Development andmanufacturing
Development capabilities
for temporary equipment, building
materials and agricultural products
metalworking technolgies
Four plants in Japanand overseas

Sales

RentalSales network in Japanand overseas

Diverse temporary
equipment for
ultra-high-rise tounderground construction

Used temporary
equipment market

Design andinstallation
Temporary equipment
design technology
BIM/CIM
Domestic installation network

Takamiya grew its business around the rental of temporary equipment, and we have
expanded the various functions of our rental service to make it even more convenient.
Covering the entire process of temporary equipment use, including new productdevelopment, manufacturing and sales, preparation of assembly blueprints, andproduct assembly, we offer a one-stop service from downstream to upstream.
TAKAMIYA Report 2023

The user’s own
corporatefunctions

Supplying needed resources with the Takamiya Platform
to boost profitability and expand the scale of business

The Takamiya Platform Business ModelManagement
and logistics
29 equipment
bases nationwide

Aiming to add features thatare lacking
Aiming to start new businesses

At Takamiya, we are using DX to improvethe convenience of our platform solutions
and promoting increased usage.

Providing a One-Stop Service for Temporary Equipment

18

Platform usage fees

Development
andmanufacturing

We will create further added value by using digital transformation (DX) for
each function that we have enhanced so far. The added value our platform
offers with its safety and convenience will encourage partners to continue
using it, thereby sustaining stable earnings for our business. In addition, theservices provided by the platform will enhance efficiency for both our partners
and for Takamiya, enabling us to develop a highly profitable business.

P. 20-21

Providing Value Created through Building Platform

TAKAMIYA Report 2023

19

Our Path to Value Creation and Our Strengths

Providing Value Created through Building Platform
Providing a Range of Solutions with DX
We will utilize DX to enhance each of the functions that we have established to date in our business—development
and manufacturing, sales, rental, design, installation, management, and logistics. As well as improving the safety
and convenience of these functions, we will integrate them to create new services, in order to provide services with
unprecedented high added value. The industries of construction and providing temporary equipment face a host ofchallenges, including labor shortages, long working hours, and delays in DX and digitalization. We will solve thesechallenges through productivity improvement using the solutions we provide through the Takamiya Platform.

System for Realizing Optimal Storage Amount of Temporary Equipment“Iq-Bid”

Sales

Management
and logistics

Key Services

Platform Portal“OPERA”
Development
andmanufacturing

Sales

RentalDesign andinstallation

Management
and logistics

OPERA is a portal that integrates our platform services.
All high value-added services that we add to ourplatform in the future will be available through OPERA.
In addition to the scaffolding digital marketplace Iq-Bid,
the platform’s main features include support forordering rental items and booking delivery vehicles.
Conventionally, rental items were ordered via telephoneor fax. Digitalizing these processes will contribute toeliminating human errors while boosting efficiency in

Expanding Our Business Areas

Iq System Storage Service

Sales

RentalManagement
and logistics

This service manages Iq System equipment purchasedby customers at our Equipment Bases. Our temporary
equipment is mainly used either on a rental basis or aspurchased equipment. Using purchased equipment
introduces the need for storage space and personnel
to manage the equipment. In addition, equipment
maintenance requires certification by a specializedorganization, which not only involves management
costs, but also requires advanced technology. With thisservice, we provide all such necessary elements forusing our materials. Customers can store the Iq System

20

TAKAMIYA Report 2023

terms of labor hours.
Customers can now
access our platform
services from a
digital device like asmartphone orcomputer 24 hours aday, 365 days a year. OPERA strengthens theintegration of our platform services, bringing increased
benefits to our customers. By taking tasks that have
conventionally been done in analog methods andtransforming them into digital processes and improving
task efficiency, we will contribute to solving problems
such as the labor shortages faced by the constructionindustry and providing temporary equipment. In thismanner, the platform portal OPERA serves as
infrastructure for our temporary equipment business.

equipment they have purchased at our Equipment
Base. In addition, once a customer has stored their Iq
System with us, they can use an equivalent equipment
system from any one of our Equipment Bases acrossJapan. We charge fees for shipping and maintenancearising from the use of equipment. Due to transportation
costs and other factors, companies that own their own
temporary equipment must typically confine theiroperations to an area near their equipment storage
area. This makes it difficult to substantially growbusiness and earnings when taking on a larger number
or greater scale of construction projects. Using the Iq
System Storage Service eliminates the need forcustomers to manage equipment at their own equipment
storage sites. By taking out equipment as they need itfrom our Equipment Bases located nationwide, they
can not only curb fixed costs but also expand theirarea of operations. In this manner, customers canboost earnings and build optimal profit structures.

This digital market system allows customers to freely
buy and sell Iq System equipment after they havebought it and left it in storage. This makes it easy to buy
required materials or sell surplus materials, and sellers
can set listing prices. Temporary equipment that has
been purchased and used deteriorates in value as an
asset by nature. However, by forming a secondary
market, we provide companies visibility over daily buy
and sell prices, with those prices giving them an

Visualization of All Temporary Construction Information“BIM/CIM 3D Laser Scanner”

RentalDesign andinstallation

This product utilizes DX to enhance the design process
for temporary construction. The use of a 3D laser
scanner enables the creation of a 3D data model ofthe frame for temporary construction. This enables
accurate measurement for frame information thatwould be either missing or difficult to understand in a
2D representation. BIM/CIM allows 3D drawings to beshared, updated, and used to visualize conceptual
construction images, so that various potential
problems can be flagged ahead of construction by

Expanding Our Business Areas

Joint Product Development
Development
andmanufacturing

Sales

indication of thevalue of their assets.
By buying and using
equipment based on
the expected selling
price, customers can reduce costs compared to rental
equipment. During periods of high demand,
equipment can even be sold for an amount close to
the purchase price. In addition, the quality of theequipment is ensured through our thoroughmaintenance. Furthermore, customers can use thesystem to check the operating status of owned
equipment, enabling them to identify surplus or
required materials. By buying and selling equipment
accordingly, they can then adjust their equipment
holdings as necessary. Companies planning a business
shift can easily replace equipment, thereby building an
optimal portfolio of temporary equipment.

identifying frameinterference points
or hazardous areas.
With the proprietaryfunctions of oursystem, customers
can calculate the quantity of parts that will be required
simply by selecting a range on the blueprint. Thisquantitative data can be linked to OPERA for direct
placement of a rental order. Design information that
had previously been updated on paper blueprints can
now be updated in real time through the sharing ofdata. The optimized plan thus curbs costs and reduces
unnecessary labor-hours arising from rework. We arealso developing an automatic drafting tool. By utilizing
this tool, blueprints can be created easily regardless ofwhether or not the user has drafting experience.

We make it easy for customers to develop productsthat are suitable for special sites and that improvesafety, convenience, and workability by enabling themto utilize our metalworking technologies. Customers
can use products that meet their needs, whether bymodifying existing products or developing new ones.
This allows them to expand the business areas thatthey can address.

TAKAMIYA Report 2023

21

Providing Value Created through Building Platform

Takamiya Lab. West

Accelerating Platform Transformation
Takamiya Lab.
Takamiya Lab. conducts research and development with a view to improving the safety and convenience of theservices and products that we offer on our platform. It enhances our platform in various ways including throughthe development of products and testing services.

Takamiya Lab.

Spider Deck
The spider panel will be on permanent display.

Theater Hall

Collaboration Studio

Reception

Meetings can be held here at any time.

Theater Hall Office
The reception area and offices for lab employees are
situated here. Various types of training can be conducted in
the video viewing space.

Innovation Hub
The Innovation Hub can be adapted to suit the customer’s needs, serving as an R&D areaor as an exhibition area.

R&D Area

Gateway

Concept: Joint development, test assembly/verification, test installment

A corridor linking the Theater Hall and Innovation Hub.

Iq Square

We will collaborate with our customers on everything from product development to the unveiling of
new products.
(e.g. joint development with general contractors, provision as test installment site, display of new
additions to product lineup)
We will distribute and share information to strengthen our sales and marketing capabilities.

Exhibition Area
Concept: For exhibiting our own products, exhibiting products of other companies, and forrental exhibition space* Applications for each building and area are still in the conceptual stage andare subject to change.

We will use video content and physical displays to promote Group products through hands-on experience.
We will hold special exhibitions that showcase products of other companies, with the aim of forming
matches between companies in different industries.
By taking advantage of the facility’s location, we are also considering offering it as a rental space.

Features of Takamiya Lab.
As a R&D base, Takamiya Lab. has a variety of facilities fordifferent purposes. The Theater Hall has a large screen thatcan be used for various types of training. The Innovation
Hub, construction of which is still at the planning stage,
will use DX and IT to provide and develop new services.
Together with our customers, we will use these facilities
to enhance our products and services and explore new
possibilities in the temporary equipment business.
In our Equipment Base at Takamiya Lab., we haveintroduced equipment aimed at improving customer
convenience on a trial basis ahead of other Equipment
Bases. The data we gather by introducing equipment iscirculated to other Equipment Bases. This enables us toenhance the functionality of our Equipment Bases, whichspan 29 locations across the country. At the time of
shipment and of return, a truck scale and multiple cameras
record equipment weight and packaging as data. Thiseliminates human errors that might otherwise arise duringloading or unloading of the equipment. This in turn
prevents potential misunderstandings with customers

22

TAKAMIYA Report 2023

regarding whether equipment has been loaded or not
loaded, or returned or not returned. We have also
introduced a fast lane that prioritizes platform users in theloading and unloading of equipment. During busy periods,
the time required to load equipment after returning it canbe up to 150 minutes. However, by using the fast lane, theloading and unloading work can be completed in just 50
minutes, about one third of the time. This greatly improves
time efficiency, an important advantage given theconstraints on working hours stemming from the 2024
Problem. It leads to a higher number of truck round trips,
which increases the turnover rate. Fixed-point cameras
enable monitoring of the maintenance processes taking
place on-site, which fosters trust in the products andservices we provide.
We will use the data obtained at Takamiya Lab. toenhance the platform services we offer to our customers.
This truly novel facility offers a world of new possibilities inthe temporary equipment business.

Safety Initiatives
At this facility, we are engaged in various efforts toenhance safety so that customers can use our products
and services with peace of mind. Various products are on
display that can actually be put together by visitors,
including temporary equipment such as the Iq System.
Through hands-on experience with the product, visitors
can directly appreciate the superiority of our products overthose of competitors in terms of ease of installment andworkability, as well as its safety and convenience. We alsoplan to introduce equipment for testing product quality
and strength during product development. This will enable
our own products to act as a reference during the productdevelopment process.
In addition, we are conducting various types of training
and education related to scaffolding using (actual)assembled products and large-scale screens. At the
Scaffolding and Health and Safety Workshop, we aim toraise safety awareness among new and young employeesof construction companies. The workshop covers a rangeof areas from basic knowledge of scaffolding to specificsafety measures. Furthermore, we offer statutory training(special training), which is mandatory for businesses
whose workers are engaged in hazardous or potentiallyharmful work. The content includes special training forscaffolding assembly, etc.; special training on full harnesstype fall prevention equipment; special education forworkers handling asbestos; special training on oxygen
deficient/hydrogen sulfide hazardous work; training to
improve the ability of work chiefs for scaffolding assembly;
training for foremen and health and safety managers; andtraining to improve the ability of foremen and health andsafety managers, etc. We will promote our rigorous safety
approach to other companies, as only few companies in
the industry provide training and education of this kind.
TAKAMIYA Report 2023

23

Providing Value Created through Building Platform

Message from the Company Officer in Charge of the Platform Business
Becoming a Company That Delivers Security
to Society

We aim to expand
our platform andprovide safety andsecurity to society

The platform has no completed form. This is because we
aim to continue working to gain an understanding of users’
needs and expand its functions. At present, we are alsousing the Lab. as a venue to gradually expand our
initiatives, such as introducing existing products and holding
safety seminars. These initiatives are borne from the users’
needs. Going forward, we will expand the functions of“OPERA,” our online ordering system, to evolve it into a
portal for our platform. We plan to enhance the attractivenessof the platform as a centralized system that enables thedigital management of platform services. We have also

launched “Iq-Bid,” a service that enables temporary
equipment to be traded as an asset. This service willcompletely change how temporary equipment is used. Our
wide-ranging initiatives and services will deliver safety andconvenience to the construction industry.
To me, these efforts are simply starting points. Takamiya
will strive to change the construction and civil engineering
industries for the better and ultimately make the world abetter place. We will continue to expand the scope of ouroperations and provide added value to society by transforming
our business model. Please look forward to seeing
Takamiya continue to make leaps forward.

Akiyoshi Takamiya
Representative Director,
Executive Vice President
Division General Manager
of Takamiya Lab. Division

Topics

Improved convenience, dissemination, and promotionof our platform business through 14 subcommittees

Significance of Business Model Transformation

Takamiya Lab.’s Role within Our Platform

Safety is one of the most important aspects of theconstruction industry in which we operate. Many people
get injured or die in accidents at construction and civilengineering sites every year. As a company that prides
itself on supporting the infrastructure that underpins
Japanese society, we must provide products and services
that pursue safety for the people working at these sites.
The Iq System, which was created based on our desire forsafety, has now acquired a leading share of the nextgeneration scaffolding market. Over the course of ten
years, Takamiya constantly worked to develop this systemand continued to pursue the true needs of our customers.
This led us to focusing our operations on the manufacturing,
rental, and logistics management functions.
Now, we are working to transform ourselves into aplatform company that leverages these core functions. We
at Takamiya are aiming for a future in which customers
participate in our platform and achieve safer and smarter
construction and civil engineering sites.

Our platform solves a variety of issues for users, greatly
improving safety, convenience, and profitability. The role of
Takamiya Lab. (hereinafter the “Lab.”) is to ensure theplatform’s safety and improve its convenience. As thename “Lab.” suggests, we seek to provide benefits for ourusers as an R&D base. Our platform provides safety andsecurity by opening up our initiatives and accumulated
data to external parties. We also leverage information
disclosed internally to enhance the safety andconvenience of the platform. At the forefront of these
efforts is the Lab. Accumulating and utilizing data, such as
on equipment management and maintenance, delivery
and collection, and product development, helps improvethe benefits of platform users. That is not all there is to theLab. The construction industry has endured labor
shortages for some time. However, with tighter labor
regulations that are scheduled to come into effect from
April 2024, specifically caps on overtime for theconstruction and transportation businesses, the industry
may well face further labor shortages. One answer to thisissue is efficiency improvement. The Lab. is equipped witha mechanism that improves user productivity by making
full use of digital transformation (DX) and IT.

As part of efforts to develop our platform business, weare enhancing our platform through 14 subcommittees,
aiming to improve its convenience and safety. Each
subcommittee is supervised by the Division General
Manager of the related business division, with projects
being led by leaders who carry out the work.
Subcommittees are composed not only of many
young employees, but also of employees from different
departments, enabling us to generate ideas fromvarious perspectives. In order to achieve the goals set
by each subcommittee, we will collaborate with other

List of
Subcommittees*

subcommittees and recruit additional members asnecessary. The project’s progress will also be disclosed
as necessary to solicit participation from within the
Company. Employees can participate in subcommitteesof their own volition, and this fosters more active
exchanges of opinions.
We are promoting projects from various perspectives,
such as enhancing existing services and systems,
developing new services, utilizing Takamiya Lab. West,and increasing uptake of the platform business.

Fastest service

Visualization
through thepromotion of DX
and mechanization

Innovation HubConstruction
Subcommittee

Innovation Hub
Internal Exhibition
Subcommittee

Platform (Iq-Bid)
Subcommittee“OPERA Rental”(Including Reward
Points) Subcommittee

Regional Strategy
Subcommittee

Media Strategy
Subcommittee

Safety Education
and Training
Subcommittee

Logistics Reform
Subcommittee”OPERA”
Development
Subcommittee

Testing Machine
Utilization
Subcommittee* Confidential subcommittees are not included.

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Our Path to Value Creation and Our Strengths

Takamiya’s Businesses
Results for the Fiscal Year Ended March 31, 2023

Sales Business

Sales business

28.1%

P. 32

Net sales (left scale)Operating income (loss) (left scale)Operating income margin (right scale)Net sales were down 3.5% year on year at ¥13,157 million, and operating income was down
27.2% year on year at ¥1,189 million.
In the temporary equipment sector, there were some postponements in purchasing and ashift toward rental usage resulting from concerns regarding price revisions due to soaring
material prices, construction delays due to labor shortages, and uncertainty in future prospects.
However, interest in the Company’s business platforms centered on next-generation scaffolding
product Iq System remained high, and the number of inquiries for new procurement, replacements,
and additional purchases remained strong.
In areas other than the temporary equipment sector, while the construction projects of largescale high-performance glass houses for agriculture ran their course in the first half of theprevious fiscal year, sales of solar power-related products and building materials remained strong.

Overseas business

19.2%

Net Sales, Operating Income (Loss), and Operating Income MarginP. 28(¥ million)

10,0000(¥ million)

25,00015,0005,000(¥ trillion)

66,444.8
60,00080

56,646.8

51,567.6

60
40,00041,928.2

40

20,000

0

20

2005

2010

2015

2020
(est.)

2022(forecast)

Reference: “Construction Investment Outlook by Construction
Economic Model,” announced in October 2023,
Research Institute of Construction and Economy

26

TAKAMIYA Report 2023

0

26.4

28.0

24.0
53.4
12.8

40.6

2005

56.4
47.0

30.2

30.7

75.7

76.7

22.8

23.6

2010

2015

(Ten thousand persons)

30.0
25.0

(Operators)

8,000

900,000
6,356

24,00923,2830(FYE March 31)(%)

24,714

15.0

10.6
10.0

7.5
5.2

5.0
1,793

1,221

2021

2022

2,610
0

2023

(FYE March 31)(%)

10,000
6,000

10.0

8,986

8,000

8.0

6,410
4.3

5,300

6.0

4.5

4,000
2,000
0
(2,000)

4.0

(1.9)
2021

2.0

404

277

(99)

2022

0
(2.0)

2023

(FYE March 31)

6,298

6,402

6,710

Number of Construction
Industry Fatalities

Population of ASEAN

167,707(Operators)

174,289 178,667
161,895

162,041

180,000

Number of construction industry fatalities (left scale)
Number of fatalities in all industries (left scale)
Percentage of construction industry fatalities (right scale)(Million persons)(Persons)

800

600
600,000

542,264

498,806

120,000
467,635

53.2

10.0

516

553

589

626

2,000
1,500

2021

0

Reference: “Statistical Survey of Construction Works,”
Ministry of Land, Infrastructure, Transport
and Tourism (MLIT)

0

494

479

2005

2010

2015

2020

2022

Reference: “Labour Force Survey” by Statistics
Bureau, Ministry of Internal Affairs
and Communications

0

2010

2015

2020

2022

0

Reference: “Results of the Survey on the Number ofLicensed Construction Business Operators Current Status of Licensed Construction Business
Operators (as of the end of March 2022)” by MLIT

0

500

2000

2005

2010

2015

2020

Reference: Includes estimates from IMF“World Economic Outlook Database,
October 2023”

0

40.0

32.2
30.0
15.8
20.0

972

1,000

60,000

2005

36.3

1,195

200
503

33.6
30.5

1,514

400

300,000
504

32.8

661

473,952 474,948

2,000
568

(%)

2,500

6,723

6,000

5.0
2020

2023

(¥ million)

15.0

12.4
40.6

35.0

4,000

52.8

2022

Net sales (left scale)Operating income (loss) (left scale)Operating income margin (right scale)

Number of licensed construction business operators (left scale)
Number of scaffolding and civil engineeringbusiness operators (right scale)

20.0

15.8

34.6

Number of Licensed Construction
Business Operators

Number of workers in the construction industry
Number of workers in all industries

(%)

100

2021

5.0

Market Environment

Number of Workers in
the Construction Industry

Maintenance and Repair Work72,240.0

1,189

Net Sales, Operating Income (Loss), and Operating Income Margin

In the overseas business, net sales were ¥8,986 million, up 40.2% year on year, and operating
income was ¥404 million, up 45.8% year on year. Hory Korea Co., Ltd.’s leveraging of its
management foundation has created a positive cycle and employee motivation has increased.
As a result, profitability has improved and the improvement of the Company’s financial standingis making progress, and we believe that we will be able to bring the Company back to thegrowth stage. In the Philippines, the construction sector has been revitalized with thecontainment of COVID-19, and employees are correspondingly more motivated. Over the past
two years, we have worked to strengthen our financial position by thoroughly visualizing
management figures and increasing the speed at which we identify issues and implement
improvement measures, and our profitability has improved as a result.

New construction work (left scale)
Maintenance and repair work (left scale)
Ratio of maintenance and repair work (right scale)

80,000

1,633

10,000Overseas Business

Market Environment(¥ billion)

10.0

1,404

20,000“Percentage of net sales” is calculated based on net sales before intersegment eliminations.

Construction Investment

9.0

Net sales (left scale)Operating income (loss) (left scale)Operating income margin (right scale)

0

P. 30

15.0

12.0

11.7

Net Sales, Operating Income (Loss), and Operating Income Margin

Rental business

52.7%

20.0

13,1575,000

Net sales were up 6.1% year on year at ¥24,714 million, and operating income was up 113.6%
year on year at ¥2,610 million.
According to our analysis, one of the reasons for the favorable performance of the rental
business was a temporary shift to rentals in response to increased sales prices due to thesoaring prices of raw materials for products. In addition, the growing recognition of the Iq
System led to the high utilization of rental assets, including the Iq System. In terms of products
for civil engineering, shipments for large bridge construction projects started mainly in the
Chubu region, which drove rental sales.

(Figures below the decimal
point are rounded.)

13,62911,990Rental Business

Percentage of
Net Sales(%)

15,000

802
497

2005

774
10.0

365

327

258

281

2010

2015

2020

2022

0

Reference: “Statistics of Industrial Accidents in theConstruction Industry” by Japan Construction
Occupational Safety and Health Association

TAKAMIYA Report 2023

27

Our Path to Value Creation and Our Strengths

Business Strategies in the Medium-Term Management Plan

Sales BusinessAs a result of sales price revisions in response to thesoaring prices of raw materials such as steel andaluminum, a trend toward rental use has been
observed. With the full-scale start of construction work,a tightening in the rental supply is expected across theConsulting Sales

industry, necessitating preparedness for a switch to

We continue to expand high-value-added services that
promote the use of our platform business to customers,
aiming for the expansion of our platform business. To
encourage the use of our storage service, we provide
customers with a comparison of income and expenses
when using rental services and using the storage service
after purchase. We encourage customers to purchase the
Iq System by presenting an operational image after
purchase. In addition, we are developing a system tovisualize the utilization status of owned equipment. There
were challenges with customers purchasing more
temporary equipment than needed, not knowing the
optimal amount to own for their own use. However, withthe utilization status visualized and purchase and sale ofowned equipment enabled on Iq-Bid, customers can
optimize the amount of equipment, enhancing profitability
without incurring excess costs.

investment through purchases. In addition, theexpansion of sales of the next-generation scaffolding
Iq System, which serves as a core to our platform, isprogressing smoothly, and we are preparing the
product supply system for the further development ofour platform business.

Hidehiko Yamashita
Executive Officer
General Manager of Sales Department
Sales & Marketing Division

What We Do
We conduct a wide range of businesses that develop, manufacture, and sell proprietary products that leverage
our metalworking technologies, including light-duty temporary equipment such as Iq System next-generation
scaffolding and clamps. These products also include SPIDER PANEL and V-MAX, two types of hanging
scaffolding for maintenance and repair work on expressways and viaducts, as well as agricultural
greenhouses and solar carports.

• Boasts the largest number of customers in the industry
as the leader in next-generation scaffolding• Need for productivity improvements• High-mix, low-volume production• Rental business infrastructure• Management resources scattered due to wide
variety of product categories• Development and manufacturing of products that
embody customer needs• Weak linkage between domestic and overseas
production bases• Ability to apply metalworking technologies in other fields• Provision of high-value-added services
through platforms

S

Strengths• Increasing demand for safety and efficiency
at construction sites due to shortage of
construction workers

O

Opportunities

W• Shortage of new/hit products

Weaknesses

T

Threats• Severe economic outlook• Aggressive price competition from rival companies• Skyrocketing raw material prices such as steel
and aluminum• Frequent occurrence of natural disasters• Shortage of agricultural workers due to the aging
population and other factors• Greater burden of transportation costs due toskyrocketing fuel costs• Increase in public works for economic revitalization• Disruption of supply chains due to natural
disasters, infectious diseases, etc.

• Restructuring of supply chains• Replacement of conventional scaffolding and residentialbuilding scaffolding with next-generation scaffolding• Refrain from buying due to rising prices

Responding to the Changing External
Environment and Further Expanding
Platform Services
Due to changes in social conditions, the prices ofaluminum and steel, which are raw materials for our
products, have soared since around 2021, recently
reaching near record-high levels. In response to the soaring
raw material prices, we have revised sales prices tomaintain a profit margin on product sales. For customers
who are reluctant to buy due to price surges, we areworking to expand sales by introducing convenient platform
services. Although our current platform services arefocused mainly on the Iq System, we are considering
expanding the services to other products as well. We are
expanding services on a trial basis so that high-valueadded services can be used for all products.

TOPICSStrengthening Manufacturing Base andSupply Structure through DX
Each plant is promoting DX in the manufacturing
process. This not only improves production capacityand efficiency but also enhances the safety of
products and the added value for users.
Conventionally, the appearance inspection of
manufactured products was performed visually byinspectors. For this reason, inspections took a longtime, imposed a heavy burden on inspectors, andtherefore was one of the hinderances to improving
production capacity. In addition, because it was
impossible to always secure evidence for inspections,
there was always a risk of having to reinspect fromscratch. In order to address this issue, we haveswitched to AI-based appearance inspections. By
training AI on the features and shapes of products, we
can automate appearance inspections, which not only

eliminates human error, but also improves the accuracy
and speed of inspections and secures evidence. As AI
continues to learn, the accuracy of inspections
improves, and it becomes possible to performappearance inspections on a wide variety of products.
Additionally, we have introduced “smart glasses” inthe process of doing inspections to check quality
standards of raw materials of products and materials
upon arrival (receiving inspections). We arestandardizing the receiving inspections conducted ateach of our four domestic and overseas factories by
having inspection supervisors from remote locations
check and provide guidance on whether measuring
instruments and jigs are being used correctly during
the inspection process.

Future Outlook
The soaring prices of raw materials such as steel and aluminum are settling down. While procurement prices in Japan remain high, overseas
procurement prices are gradually declining. In addition, construction investment is increasing, and many projects postponed due to the
COVID-19 pandemic are now beginning construction. Amidst growing demand for temporary equipment, a shift to purchasing is expected asa method of procurement, as the supply of rentals is limited.

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Our Path to Value Creation and Our Strengths

Business Strategies in the Medium-Term Management Plan

Rental Business
The Iq System has been operating at a high utilization
rate since the beginning of the fiscal year. In civilengineering, large-scale falsework in the Chubu region
and a major project for the Hokkaido Shinkansen are

Expanding Sales of the Platform Businessprogressing smoothly.
In addition, we are developing a business model
centered on the platform business, aiming to increasecustomer satisfaction with the goal of improving theirbusiness efficiency and profitability.

Kazunori Kawakami
Director and Executive Officer
Division General Manager of Sales & Marketing Division and
Deputy Division General Manager of Takamiya Lab. Division

What We Do
Through rental services, we provide light-duty temporary equipment for all kinds of worksites, including
buildings, bridges, ultra-high-rise building renovations, tunnels and underground worksites, as well as
scaffolding and falsework in times of disaster. Our in-house functions for contract scaffolding installation workand scaffolding plan drafting are strengths that enable us to provide comprehensive customer-oriented services.

• Products that focus on safety and workability such as
the Iq System, Spider Panel, and Lift Climber• Number of Equipment Bases• Equipment Bases deployed nationwide• Low skills in information gathering and analytics• Safety education• Shortage of both on-site managers and craftsmen
at partner contractors• Scaffolding Construction Department’s
nationwide network of construction companies(partner contractors)• OPERA, a platform portal to promote DX• BIM/CIM support• Lack of transport function

S

Strengths• Increasing demand for safety and workability• Requests for labor arrangements due to a shortageof scaffolding construction workers

O

Opportunities

W• Abundance of maintenance work requiring
manpower

Weaknesses

T

Threats• Disadvantages of price competition due to stablerental supply• Penetration of the platform business• Acceleration of DX implementation due topersonnel shortages• 2024 Problem• Uncertain currency and interest rate fluctuations• DX promotion in the construction industry in responseto the 2024 Problem

Starting with the storage service of the next-generation
scaffolding Iq System, which is also part of our platform
services, we will be dedicated to temporary constructionrelated consulting sales that can accommodate theparameters of our customers’ asset value and asset
management. From there, we would like to have ourcustomers use all of Takamiya’s services and aim toincrease customer satisfaction.

Expansion of OPERA
The core system, OPERA, an online ordering system,
contributes to improved service for customers, as well
as speeding up internal and external operations andreducing human error, thus contributing to workstylereforms of employees.

BIM/CIMWe support customers through the introduction of BIM/
CIM. From client proposals and construction planning tocalculating delivery quantities, we contribute to ourcustomers’ DX promotion and workstyle reforms by utilizing
our proprietary know-how in temporary construction.

Expansion of Scaffolding Construction
Department Partner Contractors(Scaffolding Construction Workers)
The chronic shortage of workers (craftsmen) continues tobe a serious issue. In addition, with tighter labor regulations
that are scheduled to come into effect due to the 2024
Problem, securing more personnel is becoming even moredifficult. As for Takamiya, we aim to further collaborate
with our nationwide Scaffolding Construction Department
partner contractors and expand our nationwide scaffolding
construction worker network. Our goal for the final yearof the Medium-Term Management Plan is to have 200
official members.

DX for Managing Sales Organizations
We introduced CRM/SFA* to improve operational
efficiency and labor productivity. By visualizing know-howthat sales staff possess and quantifying customer
information, we will improve earnings and implement
workstyle reforms for sales employees.
* CRM = Customer relationship management
SFA = Sales force automation

TOPICS
Toward Sales Utilizing Digital Data
We aim to accelerate our business transformation
to the platform business and become an IT company
in scaffolding.
The construction industry has been slow to employ
digitalization and DX, and a great deal of operations arestill performed to date using analog approaches. Evenin our case, we took rental orders via telephone andfax until we introduced OPERA.
To actively promote DX, we will respond to changing

customer needs and implement customer marketing
using digital tools such as Salesforce, OPERA, andTobee. By digitizing data, we can visualize figures anddevelop sales activities using a strategic approach. We
will establish a new sales style for the constructionindustry by utilizing data and enhancing the level ofmarketing, such as through demand forecasting andthe improvement of our product supply system.

• Increase in demand for equipment with high workability

Future Outlook
We expect construction investment to be flat or to slightly increase from the previous fiscal year. However, due to the impact of personnel
shortages and the 2024 Problem, we anticipate an extension of construction periods by up to 20%, resulting in a lower turnover rate but alonger usage period. We also expect that the rise in prices will continue and labor costs will also increase. Against this backdrop, we expect
continued demand for rentals, and for high utilization to continue. With regard to the issue of prices, we believe that the expansion of ourplatform business will enable us to break free from unnecessary price competition.

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Our Path to Value Creation and Our Strengths

Business Strategies in the Medium-Term Management Plan

Overseas BusinessIn the overseas business, a sudden upsurge in activity
has been observed with the global containment of
COVID-19. In order not to miss out on this business
opportunity, we have developed a foundation in thePhilippines, South Korea, and Vietnam over the pastThree-Year Policy

two years or so, which we will now fully leverage to

For the fiscal year ending March 31, 2024, we will utilize
the foundational strength accumulated up to the previous
fiscal year to establish a firm base in Asia while starting afull-scale entry into Africa. For the fiscal year ending March
31, 2026, we will begin the introduction of the platformbusiness in South Korea and the full-scale development of
the Africa business along with the introduction of theplatform business in Europe. As for the fiscal year ending
March 31, 2027, we will view this year as a harvestingstage for these initiatives and develop business operations
that will become a source of earnings for the Company.

contribute to the Group’s earnings, with the aim to
expand our business not only in Asia but also into
Africa and Europe.

Hiroyuki Okamoto
Senior Executive Officer,
Division General Manager of Overseas Business Division and
Deputy Division General Manager of Takamiya Lab. Division,
General Manager of Agribusiness Development Department,
Corporate Strategy Division

Securing a Foothold That Contributes to Earnings
What We Do
The overseas business primarily operates in three ASEAN countries: the Philippines, South Korea, andVietnam. We will continue to strengthen our earnings base as a pillar for sustained growth through theorganic coordination of our manufacturing base in Vietnam, our rental sales base in the Philippines, and ouroperations in South Korea, which provide both manufacturing and sales functions. In addition, this fiscal year
marks the first step in exploring new sales channels.

• Adoption and deployment of domestic expertise andbusiness models

HORY KOREA
We have reformed our corporate structure over the past
three years from laying the foundation to the growthstage, and from the growth stage to the harvesting stage.
We feel that the Company has been revitalized and avirtuous cycle is beginning. As a result, significant
progress has been made in improving profitability andfinancial position, and we have moved from the growthstage to the harvesting stage. With the launch of new
business expansion utilizing South Korea’s IT infrastructure
for platform business, entry into e-commerce, andutilization of other DX initiatives, we expect to become abusiness entity that will lead overseas business in thenext three years and grow into a company that cancontribute to the Group in various ways.
DIMENSION-ALL (DAI)
Although economic activity stagnated for over two years
under very challenging conditions due to the pandemic,
with the containment of COVID-19, previously halted
investments have rapidly resumed. During the pandemic,
DAI enhanced its comprehensive corporate strength byvisualizing as much of its management as possible,
identifying issues, considering improvement measures,and implementing them, through teamwork between local
and Japanese teams.
We expect DAI to leap forward as a gateway to ASEAN
countries and Africa.

Network Building and Product Development in Asia
In regions beyond our current operations, we plan to fully
establish and develop our alliance network over the next
three years, and actively pursue product development andsales for Asia and other regions.
Although it has been difficult to operate due to COVID-19,
we intend to actively resume our activities from now on.

• Linkage among overseas Group companies• Recognition of the Company in the Philippines and South Korea• Local management• Track record of transactions with major local
construction companies• Different perceptions of governance due todifferences in habits and customs• Employment of local staff• Concentration of bases in the ASEAN countries• Improved production capacity throughfactory expansion• Network in ASEAN countries• Economic development in ASEAN countries• Active investment in construction and civil engineeringin each country following the pandemic

S

W

Strengths

Weaknesses

O

T

Opportunities

Threats

DAI’s Initiatives in the Philippines• The impact of the situation in Ukraine• Inflation• Active investment in infrastructure in ASEAN countries
by organizations such as JICA

• Local laws (related to taxation and accounting)• Demand for plants and solar power generation to copewith energy shortages and decarbonization• Political relations• Increased safety awareness at construction sites inSouth Korea• Increasing transportation costs due to soaring
fuel costs• Public security, political climate• Rapid depreciation of the yen• Diverse and talented human resources

TOPICS

Future Outlook
In the ever-changing international situation impacted by disasters and conflicts, we expect that a large amount of temporary equipment willIn the Philippines, during the world’s longest quarantine
caused by COVID-19, the market environment remained
difficult as DAI had to compete for the few inquiries it
received due to the shutdown and stagnation ofworksites. With the pandemic under control, theeconomy has recovered, and the Philippines isreturning to its previous strong, bright, and energetic
state.
Under these circumstances, DAI focused on actively
recruiting and training Philippine employees in the coredepartments of its temporary equipment business,
namely the sales and engineering and equipment
supply locations, as well as improving its internalmanagement system, in preparation for the rapid
recovery of the construction market and its own
business expansion in the current fiscal year andbeyond. DAI also focused on winning orders forlarge-scale projects from major local generalcontractors such as Megawide and EEI andinfrastructure projects such as the MRT Line 7.
Now that the exchange of human resources within
the Group, which had been suspended due to the
COVID-19 pandemic, can resume, the DAI family willplay a central role in driving the Group’s overseas
business as a strategic base for the Group in thePhilippines and Asia from the next fiscal year onward.

be required at the time of reconstruction. Moreover, with the development of emerging countries around the world, especially in the ASEAN
region and Africa, the temporary equipment business has become a very large market. First, in the Philippines, where the Company has abase, delayed construction projects are expected to start, leading to increased demand in various regions.

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Our Path to Value Creation and Our Strengths

Medium-Term Management Plan
The fiscal year ending March 31, 2024 is the final year of the 2021 Medium-Term Management Plan. The Management
Vision in the Plan is “Create new value through transformation and aim for sustainable growth by becoming apartner to our customers.” We will enhance each of the Takamiya Group’s businesses from the perspective ofcustomers to sustainably create new value, create a system and structure that will permanently enhance corporate
value, and aim to complete our transformation. We are executing measures in accordance with the four basic
strategies for achieving the plan.

Basic Strategies

Investment Policy

Strengthening of management foundation

Curtail investment in domestic rental assets, actively pursue
overseas investment

Reform of earnings baseStrengthen overseas production bases

Acceleration of overseas expansion

Invest to improve the efficiency of equipment supply locations

Creation of new growth businesses

Invest in human resource development and workstyle reforms
Invest to strengthen technological development capabilities

2018
Medium-Term
Management
Plan

Revision of Performance Targets
As described in the Revision of Performance Forecasts in
the Medium-Term Management Plan, we have revised theperformance targets for the final year of the Medium-Term
Management Plan. The policies to prevent the spread of
COVID-19 have become prolonged, causing global supply
and demand changes, operational halts at production
bases, transportation constraints, rapid depreciation of theyen due to U.S. interest rate policies, while the situation in
Ukraine led to soaring crude oil and raw material prices. In
the construction industry, delays and postponements inconstruction starts have occurred due to soaring material

prices and a shortage of human resources. In thisenvironment, while our performance has been firm due tothe promotion of our platform to our customers and active
development and release of services, we have come tothe conclusion that achieving the original performancetargets for the fiscal year ending 31, March 2024, the final
year of the 2021 Medium-Term Management Plan, ischallenging, and have therefore conducted revisions
accordingly. However, there are no changes to theManagement Vision and basic strategies outlined in the2021 Medium-Term Management Plan.

Review of Performance Targets
FY Ending March 31, 2024

Outcomes

We made renewal investments and were able to reform
our earnings base to promote the spread of the Iq System.
In addition, we improved the profitability of assets acrossthe Group and enhanced our earnings structure.

Business activities stagnated due to the impact of
COVID-19, resulting in a significant downturn in businessperformance. It became clear that continuing operations
Challenges
under our conventional business model would make it
difficult for us to improve corporate value, as we will be
continuously impacted by changing external environments.

Outcomes

We successfully acquired the planned construction site
for Takamiya Lab. West, a R&D base for our platformbusiness. In addition, we were able to improve
profitability by curtailing investment in rental assets.

Revised targets (performance targets)

Net sales¥60,000 million¥48,000 million¥41,894 million

Operating income¥5,000 million¥3,800 million¥2,253 million

8.3%

7.9%

5.4%

¥10.0 billion¥9.1 billion¥7.3 billion

ROA

6.0%

5.4%

3.9%

ROE

12.0%

11.4%

7.6%

Equity ratio

35.0%

31.0%

31.7%

Operating income margin
EBITDAWe had to curtail planned investments due to the impact
of COVID-19. We were unable to execute investments
Challenges
such as strengthening production bases for overseas
business expansion, which resulted in plan delays.

Results for FY Ended March 31, 2023

Initial targets

Performance Trends
Net Sales

Investment in service development (equipment, systems, etc.) toincrease product added value (develop new services that blend
hardware and software)

2021
Medium-Term
Management
Plan

Strengthen products for maintenance/
repairs and infrastructure redevelopment
Nurture businesses beyond the temporary equipment sector
Redevelop overseas business bases

Operating Income Margin

2021 Medium-Term Management Plan
¥48,000 million• Takamiya Lab.
• Online orders• 3D measurement, BIM

Develop services that blend hardware and software,with a focus on the Iq System

Operating Income¥41,894 million¥39,800 million

7.9%
5.4%

4.2%

Investment in developing and training human resources to support
sustainable growth• Workstyle reforms• Office reforms• Personnel system reforms

FY Ended March 31, 2022
(Results)

Investment in system development for labor-saving and manpower
reduction through digitalization¥3,800 million¥2,253 million¥1,682 million

FY Ending March 31, 2024
(Targets)

FY Ended March 31, 2023
(Results)• Robot utilization• Factory automation

Investment in products and goods (rental assets) for maintenance/
repairs and other expanding markets (strengthen products formaintenance/repairs and infrastructure redevelopment)• Product development• Adoption of overseas products

Results and Plans for Capital Investments and Investments in Rental Assets
Capital Investments

Investments in Rental Assets

Original Plan

Results and Revised Plan(¥ million)(¥ million)

3,934

3,910

Management
Vision34

TAKAMIYA Report 2023

Create new value through transformation and aim
for sustainable growth by becoming a partner to our customers.

3,900

3,990

3,970

3,570

3,860

FY Ended
March 31, 2022

FY Ended
March 31, 2023

FY EndingMarch 31, 2024

1,165
2,911

5,746

7,989

2,523
FY Ended
March 31, 2022
(Results)

FY Ended
March 31, 2023
(Results)

FY EndingMarch 31, 2024
(Revised plan)

TAKAMIYA Report 2023

35

Medium-Term Management Plan

Develop Services That Blend Hardware and Software, with a Focus on the Iq System
We will shift our business through the Takamiya Platform,
which reduces the impact of the external environment andstabilizes and increases revenue. The Takamiya Platform is
an initiative to eliminate various inefficiencies for bothcustomers and the Company and to improve profitability

by providing high-value-added services utilizing DX whenusing our products. As the number of users grows, wewill be able to raise earnings steadily and efficiently, andtransition to a stock-type business.

Strengthen Products for Maintenance/Repairs and Infrastructure Redevelopment
The proportion of maintenance and repair work in originalcontractor construction revenue is trending upward in theJapanese construction market. Approximately 50 years
have passed since the construction of transportation
infrastructure during Japan’s period of rapid economic
growth, and maintenance and repair work is necessary sothat it can continue to be used safely. We are establishinga production system for compatible products to ensurethat we can supply products without missing out on theincrease in demand for construction work. The
SPIDERPANEL, a panel-type hanging scaffolding systemthat can be used in work on concrete floor slabs ofexpressways, and VMAX, a hanging scaffolding system,

are continuing to operate at high capacity, and we arecontinually manufacturing and investing in these systems
as rental assets to avoid supply shortages. In addition, we
will be able to handle maintenance and repair work at
various worksites with a full line of products including theYT Lock System, a working platform that is necessary inconstruction work on dams, power facilities, and otherprojects in mountainous areas, and the Lift Climber, amast-climbing work platform that can be used on high-risebuildings in both the construction and civil engineering
sectors. We expect high demand to continue, and will
maintain an optimal manufacturing system and further
strengthen our product supply capabilities.

Nurture Businesses beyond the Temporary Equipment Sector
In developing businesses other than the temporary
equipment sector, we will continue to focus on developing
our agriculture business. The background of our entry into
the agriculture business lies in the challenges faced byagriculture. In Japan, the continuity of Japanese agriculture
is being threatened by issues such as declining foodself-sufficiency, the decreasing number and aging ofagricultural workers, the increasing amount of abandoned
cultivation land, decreasing farmland area, and theabandonment of farming due to disasters. We are working
to establish a sustainable and strong agriculture industry
that resolves these issues.
We provide a cultivation environment and know-howthat enables stable harvesting, and thus leads to anincrease in new entrants into farming. Our product, theG-Castle series of high-performance agricultural
greenhouses, is a highly robust greenhouse utilizing
metalworking technologies and structural calculation
know-how cultivated through the development of our
temporary equipment. We thoroughly conduct strength

tests, load tests, and tensile tests, enabling the realizationof stable cultivation with excellent snow and wind
resistance, and without risk of collapse.
In addition, we conduct demonstration cultivation using
our greenhouse products in Hanyu City, Saitama Prefecture,
to provide cultivation know-how. We gather data at eachstage of the process from planting, environmental control
to harvesting in the greenhouse, harvest actual fruit andvegetable crops, and offer know-how and greenhouseproducts as a package. The harvest is sold through Group
companies and has been well received by consumers.
In addition, we pursue new forms of agriculture incollaboration with companies, governments, and research
institutions. We are advancing initiatives to facilitate newentrants into farming, such as smart agriculture throughthe introduction of robots and AI, moving away fromfarming based on experience and intuition, and conducting
seminars. We will establish a model case for future
agriculture and implement measures to realize sustainable
and profitable agriculture.

G-Castle Neo48

Utilization Rate of the Iq System and Hanging Scaffolding(%)

Iq System

80
70

70.5
63.7

60
50

65.8

76.8

73.4

71.3

Hanging scaffolding

69.3

71.0

65.2

66.6

67.2

4Q

1Q

60.8

76.7

71.3

G-Castle Pro

64.3

63.2

40
30
Averageutilization
rate

1Q

2Q
3Q
FY Ended March 31, 2022

Iq System: 69.1% Hanging scaffolding: 68.3%

2Q
3Q
FY Ended March 31, 2023

4Q

Iq System: 71.5% Hanging scaffolding: 65.8%

Redevelop Overseas Business BasesStrengthen Products for Maintenance/Repairs and Infrastructure Redevelopment
SPIDER PANEL

VMAX

Lift Climber

YT Lock System

Panel-type hanging scaffolding system

Hanging scaffolding system

Mast-climbing work platform forlarge-scale maintenance and repair work

Can be erected along slopes andalso used as a gantry

Transition of Maintenance and Repair WorkNew construction (left scale)(¥ trillion)

Maintenance and repair work (left scale)

Ratio of maintenance and repair work (right scale)

60

(%)

30.7

80
13.8 14.0
13.5

40

15.8 15.5 16.4 16.8 17.4
13.2 12.7 12.8 13.2 13.0 13.2 12.5 12.4 13.8 14.3 14.9 15.3

22.8 23.6

2002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

35
30
25
20
15
10
5
0

* Compiled from Construction Industry Handbook by Ministry of Land, Infrastructure, Transport and Tourism

36

TAKAMIYA Report 2023

Improvement of our overseas business bases is proceedingsmoothly. The Philippines, South Korea, Vietnam, like Japan,
were impacted by the COVID-19 pandemic, but we havestrengthened our internal control systems and are now
able to resume business. In Vietnam, we are strategicallymanufacturing temporary equipment, focusing on the
manufacture of the Iq System, which continues to operate
at high capacity in response to domestic demand in Japan.
We are expanding plant facilities and preparing for further
demand. In South Korea, demand for our safety-oriented
products has increased due to the growing awareness ofsafety at construction sites. Both rentals and sales havebeen strong. In the Philippines, although it was very
difficult to resume business activities due to the continued
lockdown, by the end of the year, the lockdown was lifted
and we were able to resume operations. Construction
demand is showing signs of increasing, centered on

JICA-related infrastructure projects.
For the fiscal year ending March 31, 2024, we havecompleted the development of our business foundation
for the full-scale resumption of business activities, and aretransitioning to the phase of monetization.
TAKAMIYA Report 2023

37

Our Path to Value Creation and Our Strengths

Message from the CFO
Financial Policy

We plan to proactively invest
in human resources and DX
to transform our company(Targets) Operating income margin: 7.9%
EBITDA: ¥9.1 billion
Equity ratio: 31%
ROA: 5.4%
ROE: 11.4%

2021 Medium-Term Management PlanFY ended March 31, FY ended March 31,
2022 (Results)
2023 (Results)

Operating income margin

FY endingMarch 31, 2024

4.2%

5.4%

7.9%

¥6,466 million¥7,393 million¥9.1 billion(Results) All items improved

EBITDA

Equity ratio
Decrease due to increase in total assets

Equity ratio

31.8%

31.7%

31.0%

ROA

3.4%

3.9%

5.4%

ROE

5.2%

7.6%

11.4%

ROA
Increase in productivity, in particular anincrease in the utilization rate of rental
assets, despite the increase in total assets

Ratio of profit to
net sales

ROE
Improvement in profit margin and increasein equity
EBITDA
Increase in operating income and decreasein depreciation and amortization

2.4%

3.5%

5.0%

(March 31, 2023)(March 31, 2024)

Total asset turnover

0.7 times

0.7 times

0.7 times

Financial leverage

3.1 times

3.1 times

3.2 times* ROE = Net income ÷ Equity (average at the beginning and end of the period) x 100= Net profit margin x Total asset turnover x Financial leverage= Profit/Net Sales × Net Sales /Total assets × Total assets /Equity capital

Tomoya Tatsumi
Director and Executive Officer
Division General Manager of Business Management Division
Deputy Division General Manager of Takamiya Lab. Division

Revising the Targets in the 2021 MediumTerm Management Plan due to Changes
in the External Environment
Looking at recent performance first of all, our results forthe fiscal year ended March 31, 2023 were in line with theplan. This is thanks to diminished impact from the
COVID-19 pandemic and the steady recovery inconstruction demand. Meanwhile, we have revised our
performance targets for the fiscal year ending March 31,
2024, the final year of the Medium-Term Management
Plan. This is to reflect changes in the global supply anddemand balance due to the fact that the pandemic lasted
longer than expected. In the construction industry,
deterioration in the business environment, due to such
issues as soaring material prices and labor shortages, led
to delays in construction work and caused a slowdown for
the industry as a whole. However, construction demand iscurrently on the rise. From a long-term perspective, there
are many large-scale projects ahead, such as Expo 2025
Osaka, Kansai, Japan and the opening of an IR (integrated
resort) in Osaka, as well as repair work for the projected
Shinkansen lines and expressways. For this reason, we
set our revised targets to include record-high profits forthe fiscal year ending March 31, 2024. As a direction weshould take, our management vision of “Create new value
through transformation and aim for sustainable growth bybecoming a partner to our customers” and our goal oftransforming into a platform company remain unchanged.

38

TAKAMIYA Report 2023

Financial Initiatives
In order to achieve our vision of transforming into aplatform company, we need to refine the functions of ourplatform as necessary. As CFO, I consider raising funds forthese activities to be of utmost importance. Instead ofcapital investments and rental asset investments aimed at
expanding the rental business carried out thus far, going
forward, we will focus our investments on expanding thefunctions of our platform and on DX. In other words, wewill implement investments geared toward transformation,an essential move for us. The main source of theseinvestment funds will be financial institutions. We havebeen meeting with financial institutions, mainly banks, as
often as possible to reiterate our initiatives. Doing so has
enabled all financial institutions with whom we do businessto understand our goals. Having said that, financial
indicators may appear to deteriorate temporarily due tothese fund-raising and investment activities. Therefore, wefeel that it is necessary to formulate an effective financing
plan for the Group and be prepared to execute it at any
time, while considering a wide range of financing
methods, including equity financing. We will continue tomake efforts to explain our vision to our stakeholders.
As for financial indicators for the fiscal year ended
March 31, 2023, the operating income margin was 5.4%
(up 1.2 points year on year), EBITDA was ¥7,393.0 million(up ¥927.0 million), ROA was 3.9% (up 0.5 pt), ROE was
7.6% (up 2.4 pt), and the equity ratio was 31.7% (down 0.1

pt). While each indicator showed improvement, the equity
ratio declined due to an increase in total assets as a resultof fund-raising aimed at platform business expansion. We
expect each indicator to reach the targets for the fiscal
year ending March 31, 2024, the final year of the MediumTerm Management Plan.

Investments and Initiatives in Human
Resources and DX We are Focusing On
Takamiya has always been a people-oriented company. It
goes without saying that the most essential element intransforming our company is the employees who arecarrying out the transformation. We conduct peopleoriented management under the idea that views people as
the driving force that supports the company, and haveactively carried out human capital investments. Each
employee changing the way he or she thinks and acts andtaking initiative will bring about change in the company. I
am confident that if we can achieve this, we will be able tobecome a company that can grow in the VUCA* era even
100 years from now. I believe that DX provides opportunities
for employees to transform themselves and for thecompany to transform itself. We have already several
measures geared toward this. For example, we set
incentives with the aim of promoting DX so that employees
can start carrying out reforms where possible. This is asystem that encourages people who want to and can put
in their best efforts to work even harder, and is also ameasure to further accelerate DX initiatives that areunderway within the Company. It is essential to invest in
DX to improve the convenience of our platform. We also
introduced a system that allows employees to choose

from a variety of workstyles that make it easier for themto put in their best efforts. We enable employees to selecttheir place of work, such as the office or working remotely,
and their working hours, such as a flextime schedule,
according to their stages in life. In addition to this, we also
help them achieve a healthy work-life balance bypromoting childcare leave for both men and women andsupporting the continuation of their work after maternity/
paternity leave. We believe that creating a workplace andwork environment in which all employees can enjoy
opportunities fairly, and fostering a culture in which all
employees are highly motivated to play an active role
based on our Mission Statement of “Love,” will bringTakamiya closer to promoting diversity, achieving
sustainable growth, and transforming our business.
* VUCA: Volatility, Uncertainty, Complexity, Ambiguity

Shareholder Returns
While the PBR (price book-value ratio) has been attracting
attention in recent years, Takamiya’s shares are currently
trading a little above book value. We intend to return
profits to shareholders by continuing to engage in carefuldialogue with market participants and ensuring that themarket’s assessment of us is reflected in our stock price.
While continuing to pay stable dividends, we will endeavor
to increase our corporate value by actively investing in ourtransformation into a platform company.
We are currently in the midst of transforming from aflow business model to a stock-type business model.
Please look forward to the value Takamiya creates as wework to transform our company.

TAKAMIYA Report 2023

39

Initiatives to Achieve Value Creation

Human Resources
Based on our Mission Statement of “Love,” we conduct people-oriented management under aManagement Philosophy that views human resources as the essence of corporate strength. We
recognize human resources as an exceedingly important asset and a source of realizing the

Basic
Approachsustainable improvement of corporate value. Keeping individual employees highly motivated andchallenging higher goals ambitiously will enable a corporation to grow sustainably. We believe thatthe basis for achieving sustainable growth is for a corporation to provide opportunities for thedevelopment of skills and careers of individual employees and to support them in achieving selfactualization so they can deliver their full potential, as well as develop a fair and convincing
personnel system and pay.

Promoting the Empowerment ofDiverse Human Resources
The Company is promoting efforts to create aninternal environment in which diverse human resources
are empowered.

Improving the Ratio of Female andForeign Nationals in Managerial Positions
As of March 31, 2023, the ratio of women and foreign
nationals in managerial positions is 1.3%, and this is amajor issue for the industry, as well. In order to increase
this ratio going forward, we will hire women and foreign

nationals for career-track positions, and expand the
population of candidates for managerial positions. At thesame time, we will first expand the pool of section
managers who are candidates for future managerial
positions and promote the training of women and foreign
nationals, and then promote them to managerial positionsat an early stage in order to achieve our long-term goals.
Furthermore, as the ratio of mid-career hires inmanagerial positions already exceeds 60%, andmanagement is carried out by managers with diverse
experience, we will maintain this level going forward.

Promoting Diversity and Inclusion
The Company hires diverse human resources, regardless of age, gender, nationality, disability, or other such characteristics,
and provides opportunities and environments where they can demonstrate their maximum strengths, individuality, andabilities. We pursue more comfortable and rewarding work environments and aim for the sustainable improvement ofcorporate value.

Sustainable
Improvement ofCorporate Value
Concept of Our Human Resources Strategy:

Human resources are the essenceof corporate strength

Initiatives for
Promoting Diversity

Initiatives for
Improving Employee
Engagement

Management Foundation

40

TAKAMIYA Report 2023

As of March 31, 2021

As of March 31, 2022

As of March 31, 2023

Long-Term Targets

Number of female orforeign managers (ratio)2(1.5%)

2(1.4%)

2(1.3%)(10.0%)

Number of female orforeign section managers (ratio)

4(5.2%)

6(8.0%)

7(9.6%)(20.0%)

Number of women or
foreign nationals hired forcareer-track positions (ratio)7(22.6%)

5(23.8%)

7(20.6%)(30.0%)

Occupational Track Change

Achieving Diverse Workstyles

With the aim of promoting self-motivated, autonomous
career development, we provide opportunities to change
occupational tracks from dedicated administrative
positions to career-track positions, once every two years.
Female employees who have been in dedicatedadministrative positions can expand their field of activity ifthey wish to do so. Employees can now freely choose theform, location, and occupational track of their work inaccordance with their own career and life plans, which
encourages them to take on new challenges.

With our DX policy, our employees are realizing diverse
ways of working, partly because we are improving our IT
environment. As for remote working, not only administrative
staff and the technology integration team, but also
employees who are going through life stages such as
child-rearing are practicing it. In addition, we encourage
employees in sales positions to return directly home afterwork, and have implemented flexible working hours toallow employees to choose the workstyle that suits thembest. Going forward, we will further promote DX andbusiness process innovation. We will also introduce
communication tools and platforms through which we canshare our vision and measure results, regardless of where
and when employees work.
As for the way employees are evaluated, to encourage
employees who want to work, we are shifting to a systemthat emphasizes results such as improving efficiency or
productivity rather than focusing on hours worked or how
earnestly tasks are executed. The current situation where
workstyle reform is progressing rapidly presents the
optimum opportunity to defy conventional thinking.
Through trial and error, the Company will promote
workstyle reform that enables employees to choose
workstyles and produce the best results.

Employment of Persons with Disabilities

Providing High
Value-Added Productswith New Ideas

As of March 31, 2023, our employment rate for persons
with disabilities was 2.08%, which is lower than the legally
mandated employment rate of 2.3%. In this regard, weare continuing our hiring activities with the aim of meetingthe legally mandated employment rate. Our Gunma
Factory promotes the employment of persons withdisabilities in order to contribute to the local community.
We also provide company training for current students at a
special support school in Gunma Prefecture, as well ascompany information meetings in Kiryu City, with the aimof supporting employment for persons with disabilities.
Going forward, the Company will continue to work withthe community to employ persons with disabilities.

TAKAMIYA Report 2023

41

Human Resources

Maternity Leave, Childcare Leave,
and Shorter Work Hours for Childcare
In order to realize diverse work styles, we are expanding
our systems for pre- and post-natal leave (“maternity
leave”) and childcare leave (“childcare leave”), and arecreating an environment that makes it easier for employees
to take leave. In the fiscal year ended March 31, 2023, amale employee took childcare leave for the first time at the

TOPICS

Coin System

This personnel system is intended to improve Company-wide productivity, by promoting
mutual assistance utilizing differences between busy times and downtimes between regions
and departments. Departments that receive help pay Coins that can be converted into
rewards, as gratitude to the other departments. Expanding this circle of mutual assistance not
only reduces overtime work, but also improves skills and standardizes operations. Expressing
gratitude in the form of Coins will also increase employee motivation. In related industries,
there are significant differences in workload between busy times and downtimes dependingon the region. While we hear opinions such as “The busy season is approaching, I’ll have towork a lot of overtime” and “I want to have more staff even just for this month,” there arealso people who are saying “I want to work more” at our bases during downtimes. Remote
working has become popular due to the COVID-19 pandemic, and it is now possible toprovide remote support regardless of work location or department. Using this opportunity, we
started test operations of the Coin System from April 2022 in order to match bases. Beginningwith simple tasks, the Coin System has spread steadily, through work flow reforms andstandardization. With a focus on people, which is one of Takamiya’s strengths, this system
serves as one of the pillars of our Corporate Philosophy of creating an environment in which
employees care about one another, always work hard together, and can grow together.

Efforts to Enhance Engagement
In order to achieve corporate goals and implement
management strategies, it is ideal that a corporation
shares management vision with employees, based on
which employees voluntarily act toward the goals while
identifying and solving issues. On the other hand, if
employees only deal with immediate tasks, it is difficult
for them to sustain their motivation in the long run.
Instead of a mere give-and-take relationship, we aim toestablish a high-level relationship (engagement) where
both management and employees can understand eachother and benefit from a win-win situation.
In addition to the intranet, digital signage, and paper
in-house newsletters, a “web in-house newsletter” waslaunched from the fiscal year ended March 2023 to enable
employees to deepen their understanding of management
conditions, Company policies, and other in-house
information in real time. In addition, each department holds
in-house seminars to disseminate information to otherdepartments. We are laying the groundwork for individual
employees to identify tasks to tackle and independently
work toward the accomplishment of the tasks.

42

TAKAMIYA Report 2023

Company. The number of male employees who tookchildcare leave has increased from one in the fiscal year
ended March 31, 2023, to three in the fiscal year ending
March 31, 2024. In the past five years, the return to work
rate after taking maternity/childcare leave has stood at
100%, and we are creating an environment that makes it
easy for employees to return to work, as employees arealso able to take shorter work hours for childcare.

Capability Development and Development ofAutonomous Employees
Development of autonomous employees requires animproved work environment. We are working on suchmatters as providing information to facilitate logicalthinking, creating a corporate culture that encourages
taking on challenges, establishing an appraisal system thatrewards tangible results, developing measures to assist in
creating ideas, and creating a mechanism to assist in
self-improvement. These initiatives, coupled with theindividual values of employees, will generate diverse ideas
and lead to a respect for diversity that we promote.

Office Reforms
Transforming Offices from Workspaces toPlaces of Rest and Healing
We are creating a more comfortable work environment, inorder to increase the engagement of our employees.
Remote work has become increasingly popular since
the spread of COVID-19. However, while remote working
is free from burdens related to commuting and allows
one to work flexibly, we have identified increased
occasions for employees to feel stressed, such as
insufficient consultation and communication on work,
difficulty in switching between work and private life, andlack of change in the scenery because one stays at home
for a significantly longer period of time. This has led to theopportunity to review the value of offices. Consequently,
we believe that the office needs to perform the function of
a communication and rest platform more than ever.
We are renewing the offices of each business under
the concept of “a place to rest and heal.” In order toactivate communication among employees, which islacking with remote working, we have increased the
proportion of open spaces and refreshment spaces, such

TOPICS
Incentive System
for Employee Stock
Ownership Plan

as cafés and sofa-style living rooms, and have kept officespaces to a minimum. We have eliminated the factors thatfix where and when employees work by introducing aflexible working hours system in addition to a freeaddress system. Furthermore, we have introduced a cloudsystem and installed multiple monitors to remotelyconnect with our offices across the country to enable
close communication without being restricted bydistance. We have also created an environment in which
individual achievements can be visualized and evaluatedfairly, even if workstyles change. Open spaces and asmall, modern Japanese-style room have been set up for
casual exchanges of ideas, creating an office where
flexible ideas can emerge without being restricted byconventional thinking.

Since April 2021, we have raised the incentive amount for stock purchase through theemployee stock ownership plan from 5% to 10%. We support the asset formation of
employees through the employee stock ownership plan, and at the same time, we aim toenhance the engagement of employees by having them hold Company stock. We believe it isvital that employees and the Company are aligned in the same direction for the sake ofrespecting individual values and improving corporate value. We are promoting initiatives sothat the success of the Company translates into the happiness of employees.

Human Resource Investment
The Company actively invests in human resources based ona people-oriented Management Philosophy. With the
purpose of improving skills and reskilling our employees,
we are not only implementing various training programs andenhancing our education system, but are also implementing
initiatives to maximize employee performance, such as
introducing our own incentive system.

Refresh Leave System

Training and Education System

We have introduced various leave systems as part of ourefforts to create an environment in which employees wantto keep working at the Company. The refresh leave systemallows employees who have been with the Company for
four years or longer to take up to four weeks of vacation,from their birthday, which is a milestone. Employees aged
25, 35, 45, and 55 will receive a week off including theirbirthday as “Refresh 5,” while those aged 30, 40, 50, and60 will receive one to four weeks off from their birthday as“Refresh 10.” Employees taking Refresh 10 will also
receive an allowance if they travel during that period.

The Company provides training in accordance with each
employee’s career plan, including new employee training,
follow-up training for young employees, and training for
new managers. In addition, we have a variety of measures
to assist the growth of our employees, such as skill
improvement projects and a mentor system initiated byyoung employees.

the goals they have set for themselves. From the fiscal
year ended March 31, 2023, we have started a DX
incentive system with the aim of accelerating DX
promotion within the Company, and we will provide
incentives based on the evaluation of efforts towardtargets. In the fiscal year ending March 31, 2024, we will
increase our DX incentives, with the aim of further
promoting DX and developing DX human resources.
FY Ended
March 31, 2022

FY Ended
March 31, 2023

DX incentives

FY EndingMarch 31, 2024

DX incentives

Incentives

Incentives

Incentives

Regular bonuses

Regular bonuses

Regular bonuses

Incentive System
The Company has introduced an incentive system that isdifferent from regular bonuses. We provide incentives
according to the degree to which each employee achieves

TAKAMIYA Report 2023

43

Initiatives to Achieve Value Creation

Initiatives to Achieve Value Creation

Environment

SafetyWhen we founded the business, the majority of scaffolding used at construction sites in Japan was

Basic
Approachmade of wood. The idea of a rental business came about from our thoughts on how we can utilize
wooden scaffolding, which is normally disposed after being used several times. Our start to the

At construction sites, our basic concept is safety first. Safety is given top priority in the development

Basic
Approachrental business was triggered by the import of steel scaffolding from abroad. The Group’s underlying

and manufacturing process of products that are used on-site. We support the foundation of social life
by ensuring quality, value, and safety in each process from product development and manufacturing
to usage.

ideal is to use limited resources effectively and help realize a sustainable society.

Initiatives for the Improvement of Safety
Supporting Infrastructure
Our products contribute to the development of
infrastructure. In order to continue using aging
infrastructure, it is necessary to perform regular
maintenance. We provide a lineup of products that can beused for maintenance and repair work on buildings,
highways, bridges, etc.
In addition, we also have a lineup of products thatminimize damage to infrastructure caused by natural
disasters, such as building materials with earthquake
resistance and damping functions, and Tiger Dam waterbags, a flood prevention system that does not require theuse of sandbags and is suitable for preventing flooding
from torrential downpours caused by the occurrence oflarge typhoons and linear rainbands.

along with the weight reduction. The number of vehicles
used for transportation can be reduced by approximately
30%, which contributes to the reduction in greenhousegas emissions.

Equipment BasesWith Equipment Bases, we strive to reduce greenhousegas emissions that are generated during the shipping
process, such as when loading products onto vehicles. At
conventional equipment storage sites, it takes up to a
maximum of two hours to complete loading procedures.
At some Equipment Bases, by installing fast lanes thatallow priority loading and introducing truck scales, loading
times can be shortened to roughly 30 minutes, thereby
reducing greenhouse gas emissions from vehicles that are
waiting to be loaded. In addition, with Equipment Bases
we have introduced electric forklifts that do not rely on
fossil fuels, as well as solar power generation installed
within the facility, enabling self-production and selfconsumption of electricity.

Our Own Quality Control Standard
A certain quality control standard formulated by the industry
applies to temporary equipment provided in the rental
business. In addition to following the quality control standardof the industry, we adopt and operate our own quality
control standard that is a level higher than the industry
standard. We also regularly conduct performance tests bya third-party organization and strive to control the qualityof our temporary equipment with the goal of preventing
product-related problems, thereby always providing ourcustomers with safe and reliable equipment.

Thoroughly Implement Safe Installation
We consider on-site safety to be an important element ofquality just like product quality. At scaffolding installationsites we manage, we set our safety control indicators, andprovide high-quality construction with the goal of zeroaccidents based on thorough safety control.
In addition, to improve safety awareness, we conduct
scaffolding safety and health workshops as well as
legally mandated education for our employees andcustomers. Our training programs allow participants toacquire not only basic knowledge in the use of scaffolding,but also specialized knowledge.
Number of Education Courses Implemented
in the Fiscal Year Ended March 31, 2023
4 special education courses such as scaffolding assembly
7 courses on special education on full-harness type fall prevention equipment
3 training courses for foremen and health and safety managers
1 course on training to improve the ability (such as in scaffolding assembly) of work chiefs
1 course on special education on slinging operations
3 courses on special education on oxygen deficient/hydrogen sulfide hazardous work
2 courses on special education for workers handling asbestos

Initiatives to Achieve Value Creation

Trust of Customers

Photovoltaic-Related Products

Reducing Greenhouse Gas Emissions
Iq System Next-Generation Scaffolding
Compared to conventional scaffolds, the Iq System ismore efficient in terms of loading and transportation,
thereby enabling transport using fewer vehicles andreduction of greenhouse gas emissions. Lightweighthigh-tensile steel pipes are used as the material for the
support columns, enabling a weight reduction of up to 2
kg per column. It also saves storage area space by 50%,
significantly increasing the loading capacity of trucks

44

TAKAMIYA Report 2023

We promote power generation with renewable energy by
manufacturing and selling photo-voltaic related products.
We manufacture solar panel installation frames using themetalworking technologies we have cultivated through thedevelopment of temporary equipment. The cumulative
contract record for POGERO, a next-generation solar
carport that can generate electricity from sunlight, has
exceeded 4,428 kW(12,059 panels, parking
for 1,536 vehicles) on aDC (direct current)
installation capacity
basis. This product canbe installed at parking
spaces where it would
be difficult to installsolar panels.

Staying worthy of the trust of customers is the most important theme of the Company. Customer

Basic
Approachneeds are becoming sophisticated day by day in such aspects as safety, efficiency, and response to
DX in construction. In order to satisfy these needs, we provide services from our platform. We
continue to improve and evolve our platform and aim to be a company that is always chosen by ourcustomers based on the relationships of trust gained through these efforts.

Initiatives to Earn the Trust of Customers
Joint Product Development
We receive inquiries on products and services every day.
Feedback received through the Sales & Marketing Division
is shared with related departments in the Company, andreflected in the process of improving our products andservices. Some customers bring us requests and ask for
consultation related to the development and improvementof products. In order to materialize customer requests, theSales & Marketing Division implements interviews indetail to unearth information including the background of
requesting development, key attributes required for the
products, and preferred prices, and shares this information
with the Product Development Division to reflect inproduct design. We pursue the commercialization of
products through repeated dialogue with customers, withparticipation by the Product Development Division. In theprocess, we also make related proposals to our customers
regarding easy-to-stow or easy-to-handle features, packing
style in transportation, and mass production for supply as
rental products.

Visualization of Equipment Management
At the Equipment Base attached to Takamiya Lab. West,
we have installed truck scales to manage shipment returndata as they enter and exit the facility, in order to reduce
unloading errors. In addition, significantly more cameras
have been installed than at a typical Equipment Base, andwe accumulate evidence regarding the number of
personnel, management, acceptance inspections, andmaintenance, and conduct issue and data analysis toprevent human error and increase reliability.
TAKAMIYA Report 2023

45

Initiatives to Achieve Value Creation

Dialogue between Outside Directors

Mr. Sakatani: Of course, governance will not function
properly if top management acts arbitrarily on their own
authority. However, President Takamiya calls on eachdirector to have an even stronger commitment tomanagement, and listens earnestly to the opinions ofoutside directors and Audit and Supervisory Committee
members. Since my appointment as a corporate auditor, I
have spoken freely about the appropriateness and issuesof the Company’s governance and business strategies. Aslong as a free and open corporate culture is not lost, I
believe Takamiya’s governance will continue to be effective.

Outside Director(Audit and Supervisory
Committee Member)

Yoshihiro Sakatani

Outside Director(Audit and Supervisory
Committee Member)

Sachie Kato

Outside Director(Audit and Supervisory
Committee Member)

Teiji Joko

We will support Takamiya’s sustainable growth while
fulfilling management oversight and supervision functions.
In June 2022, Takamiya transitioned to a Company with an Audit and Supervisory Committee. Under this new
structure, the Company is currently working to improve the effectiveness of governance and implement
management strategies from a medium- to long-term perspective. In this discussion, three outside directors (Audit
and Supervisory Committee members), Yoshihiro Sakatani, Teiji Joko, and Sachie Kato, held an open exchange of
opinions on Takamiya’s management structure and growth strategy.

Looking back since taking up our posts
Mr. Sakatani: Since June 2022, all three of us have played
a role in Takamiya’s management as outside directors(Audit and Supervisory Committee members). I have beena corporate auditor since 2005, while Mr. Joko has been a
corporate auditor since 2017. Ms. Kato joined Takamiya’s
management as an outside director (Audit and Supervisory
Committee member) in June 2022. Today, I would like tohave an open exchange of opinions on Takamiya’s
governance and growth strategies based on the initiatives
undertaken since we took up our posts.

46

TAKAMIYA Report 2023

Mr. Joko: In June 2022, Takamiya transitioned from a
Company with a Board of Corporate Auditors to a
Company with an Audit and Supervisory Committee.
However, I do not think there has been any significant
change in the actual state of governance since thetransition. The Takamiya Group operates under the strong
leadership of Representative Director, President andChairman Kazumasa Takamiya (hereinafter, “President
Takamiya”), with all information being gathered byPresident Takamiya. I believe that most corporate
governance issues arise from the failure to share andcommunicate information properly. From this perspective,
we can say that governance is fully effective at Takamiya.

Ms. Kato: I have only been serving as an Audit andSupervisory Committee member for about a year. As such,
I am currently working to deepen my understanding of thecurrent state and issues of the Company. With regards to
Takamiya’s governance system, as Mr. Joko stated, I havethe impression that President Takamiya is making swift
and appropriate decisions. However, based on myexperience as a director and a corporate auditor at several
other companies, I feel that there are many issues thatneed to be addressed going forward, such as exchanging
opinions on the development and selection of President
Takamiya’s successor, and developing closer communication
between directors and Audit and Supervisory Committee
members and each division within the Company.

management to each and every worker at our worksites,
share the Company’s vision and strategies and work to
expand the platform business, a new growth driver.
Ms. Kato: When I was approached about becoming an
outside director (Audit and Supervisory Committee
member), I had the opportunity to speak directly with
President Takamiya. I vividly remember President Takamiya
speaking passionately about the future potential of the
Takamiya Platform. One of the most important
requirements for a company to fulfill its mission is that top
management has a clear vision and presents it throughout
the company in an easy-to-understand manner. I believethat Takamiya will be able to pioneer a new stage of
growth if all employees working within the Group fully
accept President Takamiya’s view and work together
toward achieving their goals.
Mr. Sakatani: As you pointed out, a key to achieving
medium- to long-term growth is how to unify theawareness of employees and how to collect theCompany’s management resources. Human resources are
the source of a company’s growth potential. In order todrastically reform its business structure and earnings
structure, the Company needs to fundamentally change
the awareness of employees, including their understandingof changes in the business environment.

Takamiya’s medium- to long-term visionand growth strategy
Mr. Sakatani: Because outside directors (Audit andSupervisory Committee members) have voting rights onimportant management issues, it is necessary for us tocarry out our duties with a greater sense of responsibility
and mission than ever before. Going forward, we shallhave a deeper discussion about the successor issue andthe strengthening of cooperation between management
and the executive side that Ms. Kato has pointed out.
Now, could you both tell us about your perspectives andviews toward Takamiya’s medium- to long-term growthstrategy?
Mr. Joko: I believe that a business model transformation
is essential for Takamiya to continue achieving sustainablegrowth going forward, and that market penetration of thehigh-value-added Takamiya Platform is needed as a step
toward achieving this. I think we will be able to establish astronger earnings base by having all employees, from

TAKAMIYA Report 2023

47

Dialogue between Outside Directors

Mr. Joko: I believe that the Takamiya Platform is extremely
important and an appropriate concept for Takamiya‘s value
creation. The challenge the Company faces going forward
is laying the foundation to make this new business visiona reality. The Company needs to build and strengthen its
infrastructure in order to actively develop the platformbusiness, including securing and training personnel andimplementing R&D in the automation field.
Ms. Kato: As both of you have mentioned, the enhancementof human resources, technology, intellectual property, anddigital transformation (DX) is essential to achieving
sustainable growth. I would like to keep an eye on
Takamiya’s efforts on this front to see how the Company
handles these issues and how it leverages them to develop
new businesses.

Contribution to the sustainability ofthe environment and industrial society
Mr. Sakatani: From a medium- to long-term view,contributing to the sustainability of the environment andto the industry and society will also become an importantmanagement theme. Takamiya’s greatest contribution tosociety is the provision of optimal solutions to various
issues in industrial society through its core businesses,
such as the temporary equipment-related business andagriculture businesses. I also believe that the expansion of
new services that combine hardware and software, as

well as efforts to save manpower and labor throughdigitalization, will increase the productivity of various
industries and, as a result, lead to energy conservation
and a reduction in environmental impact.
Mr. Joko: I agree. In order for the Company’s contributions
to sustainability to be effective to a certain degree, I
believe a certain level of corporate scale is needed. By
expanding its operations through its own efforts, Takamiya
will also expand the social value that it can provide. I
believe that the Company can contribute to the realizationof a more prosperous society by developing newtechnologies that contribute to reducing labor andconserving energy, as well as by steadily promoting
workstyle reforms and office reforms, which are the basic
policies set forth in the Medium-Term Management Plan.
Ms. Kato: I strongly feel that President Takamiya’s
management stance encompasses society at large.
Considering what Takamiya can do to provide greater
benefits to society as a whole is at the core of management
judgment and decision-making. I would also like toemphasize Takamiya’s focus on promoting diversity with a
focal point on supporting diverse human resources taking
a more active role, and on fostering an open and faircorporate culture.
Mr. Sakatani: Another one of Takamiya’s strengths is thehigh level of transparency in management. In companies
where a president and owner demonstrates strong
leadership, there are cases where the stance towardreflecting the ideas of stakeholders into management
and company operations has weakened. However,Takamiya is committed to providing information to its
stakeholders in a timely and accurate manner, and is
striving to establish a highly transparent governancesystem. As there is currently strong demand for privatecompanies to fulfill their social responsibilities, I think
Takamiya’s stakeholder-focused management will prove to
be a major strength.
Mr. Joko: I believe that the transparent management bothof you mentioned will also lead to appropriate valuations
by the capital market. Takamiya was originally a nichebusiness entity, and temporary equipment, its main
product, is not familiar to the general public. I think
disseminating its medium- to long-term vision, growthstrategies, and initiatives for creating social value throughappropriate information disclosure is an effective method

48

TAKAMIYA Report 2023

to boost investors’ interest and enhance their understandingof Takamiya.
Ms. Kato: While investors already understand that
Takamiya is not just a “scaffolding provider,” I think its
attempts at company reforms centered on transformation,
innovation of the Takamiya Platform, and its influence on
industrial society have not yet been fully communicated. I
think the Company needs to fully utilize a variety of media,
including financial results briefings, integrated reports, andits website, to further exhibit Takamiya’s future potential.

Working toward further evolution of
the Takamiya GroupMr. Sakatani: Even before ESG management started
gaining attention, Takamiya had achieved steady growth
while focusing on business development with anemphasis on safety, environment, and workability, and theenhancement of its governance structure. Moreover, in
recent years, under President Takamiya’s policies toallocate more funds to human resource development
rather than to expanding its lineup of materials, we havecontinued to strengthen human capital, a crucial
foundation in achieving company growth. These efforts
have resulted in further improvement in the employee
retention rate and fostered a more broad-minded andopen corporate culture in these few years.
Mr. Joko: Takamiya is currently breaking away from its old
image of being a scaffolding company that supports theconstruction industry, and is establishing a reputation as
an advanced corporate group that offers unique value
proposals to industrial society. Employees share theCompany’s new corporate vision, strategies, and goals,
while also taking pride in their daily duties. This has led toa stronger sense of unity throughout the organization.
Mr. Sakatani: Hearing the opinions of both of you has
further clarified Takamiya’s competitive edge as well as its
management issues that need to be addressed more
quickly. Finally, I would like to ask you about yourambitions for the future, including Takamiya’s future
prospects. As for myself, I believe that the most importantrole of outside directors and Audit and Supervisory
Committee members is to thoroughly supervise whether
top management’s decision-making is appropriate. The
decisions of top management have a significant impact on

the success of growth strategies and on earnings
performance, especially for companies like Takamiya thatare operating under exceptional leaders. I will continue tosupport Takamiya going forward while working to improvethe effectiveness of its governance.
Mr. Joko: I will leave the formulation and implementationof specific business initiatives to the executive officers
with deep knowledge of the market and Takamiya’s
products and services. My role is to check at major turning
points, such as the execution of large-scale investment
projects and business model reforms, whether the
direction of the Company is in the interests of stakeholders.
I will keep an eye on industry trends as well as economic
and social trends on a daily basis so that I can provide
appropriate advice in such cases.
Ms. Kato: Under the Medium-Term Management Plan
that was launched in May 2021, Takamiya has carried out
various initiatives related to the enhancement of its
business structure and steadily produced results.
Meanwhile, there are also issues that need to be addressed,
such as the active promotion of diverse human resources
to managerial and executive positions, the development of
personnel who will be responsible for implementing DX,
and the establishment of a new department that willcomprehensively oversee the Company’s strategies. As an
Outside Director (Audit and Supervisory Committee
member), I have high expectations for Takamiya’s future
initiatives, and I will supervise and monitor them closely.

TAKAMIYA Report 2023

49

Initiatives to Achieve Value Creation

Directors, Audit and Supervisory Committee Members,
and Executive Officers
Directors and Audit and Supervisory Committee Members

Name

Kazumasa Takamiya Akiyoshi Takamiya

Representative Director,
President and Chairman

Position

Representative Director,
Executive Vice President
Division General Manager
of Takamiya Lab. Division

Mar. 1992 Joined the Company
Nov. 1995 Director and General Manager
of Build Techno Rental
Department
Jun. 1997 Executive Director and Division
General Manager of Build
Techno Rental DivisionJun. 2000 Director and Executive
Vice President
Jan. 2001 Representative Director andExecutive Vice President
Jun. 2002 President andRepresentative Director
Jun. 2017 Representative Director,
President and Chairman(current position)
Jun. 2019 Supervisor of Scaffolding
Management Division(current position)
Apr. 2021 Supervisor of ProductDevelopment Division(current position)

Mar. 1995 Joined the Company
Jun. 1997 Director and General Manager
of Standby Multimedia
Business Department andRetail Marketing Department
Jun. 2000 Director and Senior General
Manager of Management
Division
Jun. 2001 Executive Director, General
Manager of Finance
Department and Supervisorof Management DivisionJun. 2002 Director and Executive Vice
President, General Manager
of Finance Department andSupervisor of Management
Division
Jun. 2005 Executive Vice President,
Executive Officer andSupervisor of Administrative
Division
Apr. 2006 Representative Director andExecutive Vice President
Apr. 2012 Representative Director andPresident of Hory Corporation
Jun. 2012 Director and Executive Vice
President of the Company
Jun. 2016 Representative Director andExecutive Vice President(current position)
Apr. 2019 Supervisor of Sales &Marketing Division andSupervisor of ProductDevelopment Division(current position)
May 2020 President andRepresentative Director of
TOTAL TOSHISEIBI Co., Ltd.
Apr. 2021 Supervisor of Scaffolding
Management Division of
the Company (current position)
Apr. 2022 Division General Manager
of Takamiya Lab. Division(current position)——

Careersummary(Significant concurrent positions
outside the Company)

Tsutomu Abe

Hideki Yasuda

Yuki Mukaiyama

Tomoya Tatsumi

Kazunori Kawakami

Kouji Shimokawa

Noboru Furuichi

Yasushi Shimizu

Yoshihiro Sakatani

Teiji Joko

Sachie Kato

Director and Senior Managing
Executive Officer

Director and Managing
Executive Officer
Division General Manager ofCorporate Strategy Division
and Deputy Division General
Manager ofTakamiya Lab. Division

Director and Executive Officer
Division General Manager of
Manufacturing Division and
Deputy Division General
Manager ofTakamiya Lab. Division

Director and Executive Officer
Division General Manager ofBusiness Management
Division and Deputy Division
General Manager
of Takamiya Lab. Division

Director and Executive Officer
Division General Manager ofSales & Marketing Division
and Deputy Division General
Manager ofTakamiya Lab. Division

Outside Director

Outside Director

Director(Full-Time Audit
and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Apr. 1990 Joined the Company
Apr. 2005 General Manager ofTokyo Branch
Jun. 2005 Executive Officer and General
Manager of Tokyo Branch
Feb. 2010 Executive Officer and General
Manager of Scaffolding
Construction Department
May 2013 President and Representative
Director of ECOTRY Co., Ltd.
(current position)
Apr. 2016 Senior Executive Officer,
Deputy Division General
Manager of Sales & Marketing
Division and General Manager
of Scaffolding Construction
Department
Apr. 2021 Senior Executive Officer,
Regional Manager of Sales &Marketing Division, General
Manager of Scaffolding
Construction Department andGeneral Manager ofTokyo Branch
Apr. 2022 Division General Manager ofSales & Marketing Division and
Deputy Division General
Manager of Takamiya Lab.
Division (current position)
May 2022 Director of AOMORI ATOM Co.,
Ltd. (current position)
Director of HIRAMATSU Co., Ltd.
(current position)
Director of Nakaya Kizai Co., Ltd.
(current position)
Jun. 2022 Director and Executive Officer,
Division General Manager ofSales & Marketing Division and
Deputy Division General
Manager of Takamiya Lab.
Division (current position)
Oct. 2022 Director of TOTAL TOSHISEIBI
Co., Ltd. (current position)
Apr. 2023 Director and Executive Officer,
Regional Manager of Sales &Marketing Division, General
Manager of Scaffolding
Construction Department andGeneral Manager of Sales
Force Department of theCompany (current position)

Apr. 1985 Joined The Fuji Bank, Limited(currently Mizuho Bank, Ltd.)
Aug. 1996 Established Shimokawa
Accounting Office (currently
Shimokawa & Partners
Accounting Corporation)
Feb. 2002 Representative Director of
Shimokawa Accounting Office(currently Shimokawa &Partners Accounting
Corporation)
Jun. 2002 Corporate Auditor of
the Company
Jun. 2005 Director (current position)
Dec. 2005 President of GLOBALCORPORATE CONSULTING,
INC.
Apr. 2007 President of GLOBAL HUMAN
COMMUNICATIONS, INC.
Apr. 2016 Representative Partner of
Shimokawa & Partners
Accounting Corporation(current position)
Sep. 2017 Chairman of the Board of
GLOBAL CORPORATECONSULTING, INC.
(current position)
Jun. 2018 Director of Mitsuboshi Co., Ltd.

Apr. 1972 Joined New Japan Securities(currently Mizuho Securities
Co., Ltd.)May 1997 General Manager of Corporate
Planning Department
Apr. 2000 Executive Officer and General
Manager of Fukuoka Branch
May 2002 Managing Executive Officer incharge of Investment Banking
Department I, II
Apr. 2005 Senior Managing Executive
Officer, General Manager of
Osaka Corporation Divisionand in charge of West JapanIB Sales Department
May 2007 Representative Director
and President of Shinko
Investment Co., Ltd.
Feb. 2008 Representative Director
and President of Neostella
Capital Co., Ltd.
Jun. 2009 Advisor of Shinko Securities
Business Services Co., Ltd.
Jun. 2010 Audit & Supervisory Board
Member of NICHIA STEELWORKS, LTD.
Jun. 2017 Director of the Company(current position)

Mar. 1988 Joined the Company
Apr. 2017 General Manager ofInformation Systems
Department, Business
Management DivisionJun. 2020 Corporate Auditor
Jun. 2022 Director (Full-Time Audit andSupervisory Committee
Member) (current position)

Oct. 1979 Joined Nisshin Audit
Corporation (currently Ernst &Young ShinNihon LLC)
Jun. 2004 President and Representative
Director of Japan Management
Consulting K.K.
(current position)
Jul. 2004 Corporate Auditor of PressanceCorporation Co., Ltd.
Jun. 2005 Corporate Auditor of
the Company
Feb. 2006 Auditor of KITAKEI CO., LTD.
(current position)
Nov. 2010 Corporate Auditor of
Watts Co., Ltd.
Mar. 2011 Corporate Auditor of SHO-BI
Corporation (currently
SHOBIDO Corporation)
Jun. 2015 Director (Audit and Supervisory
Committee Member) of
Pressance Corporation Co., Ltd.
(current position)
Nov. 2015 Director (Audit and Supervisory
Committee Member) of Watts
Co., Ltd. (current position)
Dec. 2015 Director (Audit and Supervisory
Committee Member) of SHO-BI
Corporation (currently SHOBIDO
Corporation) (current position)
Mar. 2022 Director (Audit & Supervisory
Committee Member)of KURIYAMA HOLDINGSCORPORATION (current
position)
Jun. 2022 Director (Audit and Supervisory
Committee Member) of theCompany (current position)

Apr. 1993 Registered as Attorney-at-law(Osaka Bar Association)
Apr. 1993 Joined Yodoyabashi LPC(currently Yodoyabashi &Yamagami LPC)
Jun. 2001 Outside Corporate Auditorof G-7 HOLDINGS Inc.
(current position)
Mar. 2016 Outside Corporate Auditorof Onamba Co., Ltd.
(current position)
Jun. 2017 Corporate Auditor of
the Company
Dec. 2019 Director of HIMENO GUMI
(current position)
Nov. 2020 Corporate Auditor of
AKITA FOODS CO., LTD.
(current position)
Jun. 2022 Director and Audit andSupervisory Committee
Member of the Company(current position)

Apr. 1969 Joined the Legal Training andResearch Institute of Japan of
the Supreme Court of Japan
Apr. 1971 Appointed as Public Prosecutor(Tokyo District Public
Prosecutors Office andFukushima District Public
Prosecutors Office)May 1974 Registered with Osaka Bar
Association
Mar. 1983 Joined Chumu Sogo Law Office(currently Chuo Sogo Law
Office, P.C.)
Apr. 2014 Corporate Auditor of DyDo
DRINCO, Inc. (currently
DyDo Group Holdings, Inc.)(current position)
Jun. 2015 Director of YAMAZENCORPORATION
Jun. 2015 Director of HISAKAWORKS, LTD.
Jun. 2016 Director (Audit and Supervisory
Committee Member) of
YAMAZEN CORPORATION
Apr. 2017 Corporate Auditor of DyDo
GROUP HOLDINGS, INC.
(current position)
Jun. 2022 Director and Audit andSupervisory Committee
Member of the Company(current position)

Representative Partner of
Shimokawa & Partners
Accounting Corporation——

Mar. 1991 Joined the Company
Jun. 2005 Executive Officer and General
Manager of Sales & Marketing
Department II, Sales &Marketing Division
Oct. 2008 Representative Director
and President of
AOMORI ATOM Co., Ltd.
Feb. 2010 Executive Officer and Division
General Manager of Sales &Marketing Division of
the Company
Jun. 2010 Director (current position)
May 2013 Director of
HIRAMATSU Co., Ltd.
Apr. 2014 Director of ASAHI KOUGYOU
Co., Ltd. (currently TOTALTOSHISEIBI Co., Ltd.)May 2021 Representative Director andChairman of AOMORI ATOM
Co., Ltd. (current position)
Apr. 2022 Senior Managing Executive
Officer of the Company(current position)

Mar. 1990 Joined the Company
Apr. 2008 Executive Officer and General
Manager of Finance &Accounting Department
Feb. 2010 Executive Officer and General
Manager of Corporate
Planning Department
May 2011 Corporate Auditor of IWATA
Co., Ltd. (current position)
May 2011 Corporate Auditor of
HIRAMATSU Co., Ltd.
(current position)
Jun. 2011 Director of the Company(current position)
Jun. 2015 Managing Executive Officer andGeneral Manager of Corporate
Planning Department of
the Company
Apr. 2017 Managing Executive Officer andDivision General Manager ofBusiness Management Division
Apr. 2021 Managing Executive Officer andDivision General Manager ofCorporate Strategy Division(current position)
Apr. 2022 Deputy Division General
Manager of Takamiya Lab.
Division and Supervisor of
Logistics Department
Preparation Office(current position)
Sep. 2022 Division General Manager ofOverseas Business Division of
the Company
Oct. 2022 Director of
DIMENSION-ALL INC.
(current position)
Apr. 2023 Supervisor of Overseas
Business Division(current position)

Mar. 1993 Joined the Company
Apr. 2013 Executive Officer and General
Manager of Business
Development Department
Apr. 2015 Executive Officer and Division
General Manager of Business
Development Division of
the Company
Jun. 2015 Director (current position)
Apr. 2019 Executive Officer and Division
General Manager of Overseas
Business Division of theCompany Supervisor of
Business Development
Division and Global
Procurement Division
Apr. 2020 Executive Officer andSupervisor of Overseas
Business Division and Business
Development Division
Executive Officer andSupervisor of Global
Procurement Division
Apr. 2021 Executive Officer and Division
General Manager of
Manufacturing Division andSupervisor of Global
Procurement Division
Apr. 2022 Deputy Division General
Manager of Takamiya Lab.
Division (current position)
Jun. 2022 Division General Manager of
Global Procurement Division
Apr. 2023 Executive Officer and Division
General Manager of
Manufacturing Division(current position)

Jul. 1995 Joined the Company
Jun. 2013 General Manager of Finance& Accounting Department
Mar. 2016 Director of IWATA Co., Ltd.
(current position)
Apr. 2017 Executive Officer of
the Company
Jun. 2017 Corporate Auditor of Hory
Korea Co., Ltd. (current position)
Jan. 2018 Corporate Auditor of CadianCo., Ltd. (current position)
May 2018 Corporate Auditor of Nakaya
Kizai Co., Ltd. (current position)
May 2019 Corporate Auditor of TOTALTOSHISEIBI Co., Ltd.
(current position)
Corporate Auditor of
AOMORI ATOM Co., Ltd.
(current position)
May 2020 Corporate Auditor of ECO-TRY
Co., Ltd. (current position)
Apr. 2021 Senior Executive Officer andDivision General Manager ofBusiness Management
Division of the Company
Jun. 2021 Director, Executive Officer andDivision General Manager ofBusiness Management Division(current position)
Apr. 2022 Deputy Division General
Manager of Takamiya Lab.
Division (current position)
May 2022 Corporate Auditor of Yame
Kaisei Co., Ltd.
(current position)

—

—

—

Representative Director andChairman of AOMORIATOM Co., Ltd.

President and Representative
Director of ECO-TRY Co., Ltd.

President and Representative
Director of Japan Management
Consulting K.K.

Representative Partner of
Yodoyabashi & Yamagami LPC

Representative Partner ofProfessional Corporation,
Chuo Sogo Law Office

Corporate
management
Sales andmarketing

Skills matrix

Engineering andmanufacturing
Global operations
Finance andaccounting
Legal affairs andrisk management
Experience inother industries
DX
Sustainability

Executive Officers

50

Takahiro Shozaki

Takashi Masuno

Hiroyuki Okamoto

Hidehiko Yamashita

Takashi Nagumo

Mitsunori Yamato

Tetsuya Aoki

Hiroshi Koda

Shinri Ueda

Takashi Kawabata

Eizo Aihara

Senior Executive Officer
General Manager of Sales &Marketing Planning Department,
Sales & Marketing Division

Senior Executive Officer
General Manager of Global
Production Engineering Department,
Manufacturing Division

Senior Executive Officer
Division General Manager of Overseas
Business Division and Deputy Division
General Manager of Takamiya Lab.
Division, General Manager of
Agribusiness Development Department,
Corporate Strategy Division

Executive Officer
General Manager of Sales Department,
Sales & Marketing Division

Executive Officer
Division General Manager of ProductDevelopment Division, Deputy Division
General Manager of Takamiya Lab.
Division, General Manager ofTechnology Development Center
Preparation Office

Executive Officer
Division General Manager of Scaffolding
Management Division, Deputy Division
General Manager of Takamiya Lab.
Division and General Manager ofScaffolding Yard Operating Department
and Scaffolding Purchasing Department

Executive Officer
Regional Manager of Sales & Marketing
Division and General Manager ofTokyo Branch and Supervisor of
Business Development Division

Executive Officer
General Manager of Manufacturing
Division and Global Procurement
Division of Vietnam Factory
General Manager

Executive Officer
General Manager of Global Quality
Assurance Department,
Manufacturing Division

Executive Officer
General Manager of Corporate
Planning Department,
Corporate Strategy Division andGeneral Manager of PR & IR Department

Executive Officer
General Manager of HR Department,
Business Management Division

TAKAMIYA Report 2023

TAKAMIYA Report 2023

51

Initiatives to Achieve Value Creation

Corporate Governance
The Takamiya Group believes that the basic foundation for sound corporate governance centers on thoroughly enforcing
compliance, ensuring the transparency and efficiency of management, and working to maximize corporate value for all

Basic
Approach

Audit and Supervisory Committee (FY Ended March 31, 2023)
1. Independent directors 2. The Company transitioned to a Company with an Audit and Supervisory Committee on June 23, 2022.
3. The total includes the number of meetings of the Board of Corporate Auditors (four times).

stakeholders, including shareholders and investors. With the stable supply of safe, high-value-added temporary
equipment as our base axis, we will conduct high-quality corporate activities, and focus on efforts to improve the

Number of members: 4 (of which, outside directors who are Audit and Supervisory Committee members: 3)

status of the industry, not just for the development of our own group, but for the benefit of customers and the industry
as a whole. We will build a temporary equipment industry that is clearly recognized for its excellence by both the1

1

Board of Corporate Auditors
and Audit and Supervisory
Committee number of meetings

1

general public and investors, and aim for sustainable development in a highly transparent business environment.

Ordinary:

Takamiya’s Corporate Governance System

be made while incorporating diverse viewpoints, as well as
appropriate supervision over the Company’s managementfrom the objective positions of the outside directors.
The Company has also introduced an executive officer
system, under which executive officers are appointed
separately from directors who are elected in accordancewith the Companies Act. The Company believes that thiswill enable business operations determined by the Board of
Directors to be executed in a prompt and efficient manner.
The Company’s Board of Directors consists of 13
Directors of outstanding character, possessing insight,
capabilities, abundant experience, and high ethicalstandards. Factors such as expertise in management, sales
and marketing, technology, overseas business, finance andaccounting, and law, as well as diverse backgrounds andexperience, were taken into consideration when selecting
members of the Board of Directors. We recognize that
securing human resources with an emphasis on diversity,
such as appointing female directors, is our ongoing task.

To strengthen the supervisory function of the Board of
Directors and realize highly transparent management,
thereby building a system that can better meet the
expectations of domestic and overseas stakeholders, theCompany, with the approval of the 54th Ordinary General
Meeting of Shareholders held on June 23, 2022, made thenecessary changes to its Articles of Incorporation andtransitioned to a Company with an Audit and Supervisory
Committee. The Company has in place a system underwhich the Board of Directors provides strategic guidance
and management supervision and the Audit andSupervisory Committee audits directors’ execution of duties
by attending and giving their opinions at various important
meetings, such as those of the Board of Directors. The
Board of Directors makes decisions on importantmanagerial matters and supervises the execution of duties
by directors. In addition, by appointing outside directors, wehave created a system that enables important decisions to
Corporate Governance System (As of June 23, 2023)

General Meeting of Shareholders
Appointment/Dismissal

Appointment/Dismissal

Appointment/Dismissal

Audit and Supervisory Committee

Audit/
Supervision

Board of Directors
Directors

Directors who are Audit andSupervisory Committee members
Cooperation

Cooperation

Report(excluding directors who are Audit andSupervisory Committee members)

Selection/Dismissal/
Supervision

ReportInternal Audit Office

Recommendation

Nomination
andCompensation
Committee

Management
anddecision-making

Supervision

Audit

Supervision

Business
execution

Business divisions

Cooperation

Cooperation

Audit

Affiliated subsidiaries

Accounting audit

Board of Directors (FY Ended March 31, 2023)
1. Independent Directors 2. The Company transitioned to a Company with an Audit and Supervisory Committee on June 23, 2022.

Number of members: 13 [of which, outside directors: 5]
1

1

1

1

Number of meetings

Attendance rate2

1

Directors
Ordinary:

17 Extraordinary: 5

99%

Corporate
auditors

85%

The Board of Directors is comprised of Representative Director, President and Chairman Kazumasa Takamiya, six inside directors, two outside directors, and four directors who are Audit and Supervisory
Committee members for a total of 13 members, with terms of office of one year for directors who are not Audit and Supervisory Committee members in order to ensure flexible, responsive corporate
management. In addition to the monthly regular meeting of the Board of Directors, extraordinary meetings are held when necessary. Furthermore, when making decisions on matters specified by laws
and regulations and important matters involving management, the Board of Directors constantly monitors the execution of management duties.

52

TAKAMIYA Report 2023

15 Extraordinary: 3

90%

The Audit and Supervisory Committee is comprised of one full-time Audit and Supervisory Committee member and three outside Audit and Supervisory Committee members for a total of four members,
and meets once a month, in principle. In accordance with the policies determined by the Audit and Supervisory Committee, the Audit and Supervisory Committee members audit and supervise thedirectors’ execution of business by attending various important meetings such as those of the Board of Directors, inspecting important documents and investigating business affairs and asset conditions.

Nomination and Compensation Committee
In order to strengthen the independence, objectivity, andaccountability of the functions of the Board of Directors,
the Company established the Nomination andCompensation Committee on April 21, 2021 as anadvisory body to the Board of Directors. It makes
recommendations on matters related to the nominationand compensation of the Company’s senior managementand directors. The Committee consists of six members:
two outside directors, two outside directors who are Audit

and Supervisory Committee members, and two insidedirectors, and is chaired by an outside director. Outside
directors and outside directors who are Audit andSupervisory Committee members provide unreserved
opinions, advice, and comments from an independent andobjective perspective regarding matters not limited to thenomination and remuneration of the Company’s senior
management and directors. As such, we believe thetransparency and objectivity of the Company’s Board of
Directors are ensured.

Status of Directors and Audit and Supervisory Committee Members (As of June 23, 2023)
Structure of the Board of Directors

Structure of the Audit and Supervisory Committee

Name

Board of Directors meeting
attendance/attendance rate

Board of Directors meeting
attendance/attendance rate

Board of Corporate Auditors
meeting attendance rate3

Kazumasa Takamiya

17 times/100%

Management

Akiyoshi Takamiya

17 times/100%

Management and sales and marketing

Yasushi Shimizu

16 times/94%

15 times/100%

Yoshihiro Sakatani

17 times/100%

Tsutomu Abe

17 times/100%

15 times/100%

Sales and marketing

Teiji Joko

13 times/76%

Hideki Yasuda

12 times/80%

16 times/94%

Finance and accounting

Sachie Kato

9 times/69%

9 times/82%

Yuki Mukaiyama

17 times/100%

Overseas operations, management and new business

Tomoya Tatsumi

17 times/100%

Finance and accounting

Kazunori Kawakami

13 times/100%

Sales and marketing and manufacturing technology

Kouji Shimokawa

17 times/100%

Taxes and accounting

Noboru Furuichi

17 times/100%

Financing, finance and management

Expertise

Criteria for the Appointment of Directors andAudit and Supervisory Committee Members

ReportRepresentative Directors
Instruction

Accounting Auditor

Consultation

Board of Corporate Auditors andAudit and Supervisory Committee
meeting attendance rate3

The appointment and dismissal of candidates for directors
and directors who are Audit and Supervisory Committee
members is determined by a meeting of the Board of
Directors after consulting with and receiving recommendations
from the Nomination and Compensation Committee,
based on relevant regulations including the Regulations forProfessional Organization of Officers and the Nomination
and Compensation Committee Regulations. Comprehensive
consideration is given to the career history, track record,
knowledge, experience, and capabilities of each candidate.
Furthermore, the consent of the Audit and Supervisory
Committee is obtained in advance for the appointment ofcandidates for directors who are Audit and Supervisory
Committee members.

Selection Criteria
1. Directors (excluding directors who are Audit and Supervisory Committee members)
The basic requirements for director candidates are having outstanding
character and insight, as well as being such individuals that will

Name

* The total includes the number of meetings of the Board of Corporate Auditors(four times).

contribute to the growth and improvement in the corporate value of theCompany and the Group. The candidates must have high levels ofknowledge and judgment capabilities in each business field. Outside
director candidates are required to have a high level of expertise in afield such as taxation, accounting, law, or management. They must beable to actively state opinions from an objective and external viewpoint,reflecting a diverse background.
2. Audit and Supervisory Committee Members
The basic requirements for Audit and Supervisory Committee member
candidates are having high ethical standards and objective, fair, andimpartial judgment capabilities. The candidates must also have theappropriate experience and capabilities as directors who are Audit andSupervisory Committee members and a high level of expertise in a fieldsuch as taxation, accounting, law, or management. In addition to theabove requirements, candidates for outside directors are required tohave no conflicts regarding their independence.
For the dismissal of officers, if an officer has deviated from theabove appointment criteria and it is deemed reasonable to dismissthem from an objective viewpoint, a resolution shall be made at a
meeting of the Board of Directors after the Board has sufficient
discussions, and consults with and receives recommendations from theNomination and Compensation Committee.
TAKAMIYA Report 2023

53

Corporate Governance

Succession Plan
The Company does not currently have a specific plan forsuccessors for positions such as chief executive officer.
However, we recognize succession planning as animportant management issue and we are nurturing
candidates from the management team (directors andexecutive officers). We will continue to engage inconstructive discussions on the approach to theappropriate implementation and supervision of succession
planning at meetings of the Board of Directors and its
advisory body, the Nomination and Compensation
Committee, which was established on April 21, 2021.

Evaluations of the Effectiveness of
the Board of Directors
The Company has conducted questionnaires withdirectors regarding the effectiveness of the Board of
Directors in the fiscal year ended March 31, 2023. We
analyze and evaluate the structure and operations of theBoard of Directors as well as the role of the Board of
Directors in management strategy decisions and thesupervisory function.
In the fiscal year ended March 31, 2023, while there
was room for improvement, such as discussions on the
successor development plan and the opinion that it isnecessary to further enhance the training of directors, it
was deemed that the Board largely maintains its
effectiveness. Going forward, we will further improve theeffectiveness of the Board of Directors based on theseanalyses and evaluations.

Remuneration for Directors and Audit andSupervisory Committee Members

Directors

Total remuneration(¥ million)

The Company has established a policy regarding thedetermination of the amount of remuneration for officers
and its calculation method, which states that officer
remuneration consists of fixed remuneration according toposition, performance-linked remuneration (bonuses) as ashort-term incentive linked to single-year performance, andstock-based remuneration stock options positioned as a
medium- to long-term incentive. Through thorough evaluation
based on the interests of shareholders, we are working toensure the long-term sustainable growth of the entire Groupand enhance corporate value. Meanwhile, the remunerationof outside officers consists only of basic remunerationfrom the perspective of their roles and independence.
Bonuses, which are short-term, performance-linked
remuneration, are paid (when the consolidated operating
income target for a single year is achieved) within the limitof the total amount of remuneration for directors resolved
at the General Meeting of Shareholders. Stock-based
remuneration stock options, which are a medium- to longterm incentive, are granted based on the position factor set
in the Company’s regulations within the limit of the total
amount of stock options provided for in a resolution by theGeneral Meeting of Shareholders. The respective
proposals for bonus payment and for the granting of stock
options are submitted to the Board of Directors, which
determines and grants the bonuses and stock options
after consulting with and receiving recommendations fromthe Nomination and Compensation Committee.

Fixed
remuneration

Number of

Performance-based Medium- to long-term eligible individuals(Persons)
remuneration
incentive (stock options)

253

—

50

7

Audit and Supervisory Committee members

7

7

—

—

1

Corporate auditors (excluding outside corporate auditors)

2

2

—

—

1

Outside officers

18

18

—

—

5

(excluding outside directors)

Notes:
1. The total remuneration for directors who concurrently serve as officers ofconsolidated subsidiaries does not include the officer remuneration from theconsolidated subsidiaries.
2. The Company transitioned from a Company with a Board of Corporate Auditors to a
Company with an Audit and Supervisory Committee on June 23, 2023.
3. It was resolved that the limit on directors’ remuneration (excluding directors who are
Audit and Supervisory Committee members) shall be up to an annual amount of ¥500
million (up to ¥50 million for outside directors; not including employee salaries for
directors) at the 54th Ordinary General Meeting of Shareholders held on June 23, 2022
(number of officers in relation to the said resolution: 9).
In addition, it was resolved that the limit on separate remuneration as stock options
shall be up to an annual amount of ¥150 million (excluding directors who are Audit

54

Total remuneration by type (¥ million)304(excluding Audit and Supervisory Committee members and outside directors)

TAKAMIYA Report 2023

For the fiscal year ended March 31, 2023, audit fees paid to certified public accountants and others were as follows:

Remuneration System for Directors and Audit andSupervisory Committee Members

For the fiscal year ended March 31, 2023, remuneration
for directors and corporate auditors was as follows.

Category

Details of Audit Fees

and Supervisory Committee members and outside directors) at the 54th Ordinary
General Meeting of Shareholders held on June 23, 2022 (number of officers in
relation to the said resolution: 7).
4. It was resolved that the limit on remuneration for directors who are Audit andSupervisory Committee members shall be up to an annual amount of ¥50 million at
the 55th Ordinary General Meeting of Shareholders held on June 23, 2023.
Remuneration for individual Audit and Supervisory Committee members isdetermined by discussion of Audit and Supervisory Committee members (number ofofficers in relation to the said resolution: 4).
5. It was resolved that the limit on corporate auditors’ remuneration before thetransition to a Company with an Audit and Supervisory Committee shall be up to anannual amount of ¥50 million at the 25th Ordinary General Meeting of Shareholders
held on May 18, 1994 (number of officers in relation to the said resolution: 3).

Category

Fiscal Year Ended March 31, 2022
Fees paid for audit
Fees paid for non-audit
certification work (¥ million)
certification work (¥ million)

The Company

32—

Consolidated subsidiaries

—

Total

32

Fiscal Year Ended March 31, 2023
Fees paid for audit
Fees paid for non-audit
certification work (¥ million)
certification work (¥ million)
36

—

—

—

—

—

36

—

For the fiscal year ended March 31, 2023, fees paid to Ernst & Young member firms, which are members of the same EY
network of the Company’s certified public accountants, were as follows:
Fiscal Year Ended March 31, 2022
Category

Fiscal Year Ended March 31, 2023

Fees paid for audit
certification work (¥ million)

Fees paid for non-audit
certification work (¥ million)

Fees paid for audit
certification work (¥ million)

Fees paid for non-audit
certification work (¥ million)

The Company

—

0

—

16

Consolidated subsidiaries

5

1

6

1

Total

5

1

6

18

Non-audit certification work paid for by the Company is tax consultation. Non-audit certification work paid for by consolidated subsidiaries is preparation of corporate tax returns, tax
consultation, and others.

Communications with Shareholders
and Investors
The Company has designated the PR & IR Department as
the department in charge of investor relations (IR) and theDivision General Manager of the Corporate Strategy
Division, who is responsible for IR affairs, as the contact
person. In addition, the PR & IR Department works
together with the General Affairs Department, Accounting
Department, Legal & Compliance Department, and otherrelated departments to share information and prepare
For individual investors

disclosure materials. As opportunities for dialogue with
our shareholders and investors, we hold General Meetingsof Shareholders, Company information meetings, financial
results briefings, etc., as needed, and enhance our
website to facilitate their understanding of our business.
Moreover, we release the videos and materials of our
financial results briefing to the public in Japanese andEnglish. We also publish our convocation notices inJapanese and English on the internet, and are enhancing
the content of briefing sessions for individual investors.

For analysts and institutional investors

IR website

Briefings for individual investors• March 11, 2023, Tokyo (hosted by NIKKEIRADIO BROADCASTING CORPORATION &PRONEXUS Inc.)• Video distribution of financial results briefings:
Twice a year (year-end and the second quarter)• Individual meetings: Conducted online

Our website for investors in Japanese
https://www.takamiya.co/ir/
Our website for investors in English
https://www.takamiya.co/en/ir/

We hold briefing sessions both online andoffline with speakers such as the Company’s
officers. The date and time of each event areannounced on our website.

We distribute a video presentation of our financial results twicea year. The president and chairman and other Company officers
provide briefings on our performance and earnings forecasts.
Materials and videos are available on our IR website.

We have set up a page for investors on our website to provide
timely disclosure information such as the financial resultssummary and other information for investors such as financial
results briefing materials, the annual report, and historical data.

Risk Management, Internal Control,and Compliance
The Group has established the basic policy and othermatters concerning risk management in the Basic Rules
for Risk Management. In addition, we have established
the Risk and Compliance Committee, with the Legal &Compliance Department acting as the administrative office.
The Committee discusses issues and measures regarding
the promotion of Company-wide risk management in order
to appropriately manage and respond to the variety ofrisks that our businesses face.
For internal control, we have developed a system inwhich internal checking operates between departments
and clarifies the division of duties based on internal
regulations and other rules. In addition, the Basic Policy forInternal Control and the Basic Policy for Financial Reporting

outline systems to ensure that the directors comply withlaws and the Articles of Incorporation when conducting
operations, and also to ensure the propriety of otheroperations of the Company.
For the compliance system, we have outlined theCompliance Standards and the Code of Conduct in the
Compliance Manual. We have established the Risk andCompliance Committee, with the Legal & ComplianceDepartment acting as the administrative office, to discussspecific compliance initiatives to be implemented
internally and to identify at at an early stage legal issues
emerging in the Company. Through these efforts, we aim
to further raise and promote compliance awareness.
Additionally, we seek advice and guidance as needed fromour corporate lawyers regarding our daily operations andmanagerial decisions.
TAKAMIYA Report 2023

55

Facts / Data

Financial and Non-Financial Highlights
Financial Highlights1
Net Sales/Operating Income /Operating Income Margin

Non-Financial Highlights

Profit Attributable to
Owners of Parent

Net sales (left scale)Operating income (left scale)Operating income margin (right scale)(¥ million)(%)

50,00046,06542,18240,0008.0

38,81239,800(¥ million)

10

2,500

8

2,000

10,000
3,703
2020

6

1,500

4

1,000

1,460

1,682

1,586
2021

2022

857

2023

2019

2020

2021

2022

2023

2023

54,41430.5

56,45432.3

59,08162,749

50
40

31.8

31.7

70

30,000

0

2,467

2,768

10

10,000
2020

2021

2022

2023

0

1,165

2019

2020

2022

164

151

150

2021

2022

2023

11

37.2 32

10

20

5

0

0

2022

2023

9

27

11
24.4
27

40

14

34
21

2019

2020

2021

8,508
7,491

7,393
6,402

6,466

50

52.7
48.1

151

2,500

1,925

2022

2023

0

20

20

0

0

2020

2021

(2,500)

2022

2023

(1,243)(1,728)(1,382)

02021(FY Ended March 31)

Average Length of Service(Non-consolidated) /Turnover Rate5 (Non-consolidated)

11

25

0

11

12

2019

2020

9.47
8

9.61

10.22

10.45

10.62

6.5

6.2

6.5

7.8
6.9

12

8

23
17

11
16
2022

4

4

12

7
2021

(%)

12

0

2023

2019

2020

2021

(FY Ended March 31)

Number of Hires with
Disabilities / Employment Ratio

2022

2023

0

(FY Ended March 31)

CO2 Emissions

Number of hires with disabilities (left scale)
Employment ratio (right scale)(Cases)(Persons)(%)(t-CO2)420

4200,000

18

194,305
175,867

16
15

(14)
(588)
(1,205) (1,205)

2

2

1

1

1

1

2019

2020

2021

10
1

11
1.85

12
1.63

12

2.20

3

150,000

2

100,000

1

50,0000

0

143,092

2.08

1.79

5

(2,873) (2,979)(3,836)2023

20(FY Ended March 31)

Free cash flows

4,294

2020

(Years)56 育児短縮勤務取得者数

27

7
2019

2019

Average length of service (left scale)
Turnover rate (right scale)

35
12

30

1,315

(65)

4,000

38
7

3

1,590

2023

19
40

398

2,000

54.0

200

5,035
3,653

2022

58

60

47.6

Number of Accidents (Occupational
Injuries, Non-consolidated)

3,771

2021

(Persons)(FY Ended March 31)

3,653

2020

(FY Ended March 31)

10
0

2019

Number of Employees Taking Maternity /Childcare Leave / Shorter Hours forChildcare (Non-consolidated)

65.1

60
300

100

6,000

(FY Ended March 31)

2019

2020

2021

2022

2023

(FY Ended March 31)

Notes: 1. Figures below millions of yen are truncated. However, indices shown in ratios are rounded to the unit displayed.
2. ROE = Profit attributable to owners of parent ÷ Average equity ROA = Ordinary income ÷ Average total assets
3. EBITDA = Operating income + Depreciation

TAKAMIYA Report 2023

30,143

10,000

5,746

2021

28,209Cash Flows

EBITDA3

8,000

2020

0

40

(FY Ended March 31)

5,140

2,911

2,523

27,620

206

20

6,911

2,091

29,63329,124

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

2,000

56

(%)

5,000

1,558

24

12

Maternity leave
Childcare leave
Shorter hours for childcare

400

20,00030,0002019

2019

Paid Leave Utilization Rate
(Non-consolidated)4(%)(¥ million)

4,050

27.3

34.4

15

13

45

(FY Ended March 31)

40,000

30

26.0

0

2023

(¥ million)

10,0001,517

20Interest-bearing debt (left scale)
D/E ratio (right scale)(%)

59,282

2022

Interest-Bearing Debt /Debt-to-Equity (D/E) Ratio(¥ million)

3,649

2021

(FY Ended March 31)

8,000

4,000

2020

(FY Ended March 31)

20,0003.9

2019(¥ million)

3,984

33
9

15

13

Investments in rental assets
Capital investments
Depreciation

4,815

40

0

Investments in Rental Assets /Capital Investments / Depreciation

4,804

43
16

30

0

(FY Ended March 31)

4,777

22.6

25.1

0

5.2

5,434
4,784

21.8

27.1

33.1

0

7.6

6,000

600

25.4

40

0

40,000

6,818

2

32.3

51.8

1,266

0

50,000

2022

900

15

10

12.0

2021

30.8
3

34.9

1,222
36.3

(Persons)

60

300

60,000

2020

14

1,221

(%)

60

1

14.7

2019

14

1,298

(Persons)

20

70,000

2.7

14

10

(¥ million)

3.4

3.4

1,204

Number of new male hires (left scale)
Number of new female hires (left scale)
Ratio of female employees (right scale)

50

5

20

4.7

3.5

1,200

Number of Female Managers(Consolidated)

(%)

500

(%)

6.2

3.6

4

11

965

Total Assets /Equity Ratio

10

14

15

Total assets (left scale)
Equity ratio (right scale)

0

3.5

1,500

2

ROE
ROA

5.0

3.9

20

(Persons)

5

Number of New Hires / Ratio of
Female Employees (Non-consolidated)

2,253

Return on Equity (ROE) /Return on Assets (ROA)2

5

(%)

25

(FY Ended March 31)

15

Number of employees (left scale)
Ratio of female employees (right scale)
Ratio of employees with non-Japanese nationalities(right scale)

(¥)

2,370

4.2

4.1
20,0002019

Annual dividends per share (left scale)DOE (right scale)

1,637
5.4

30,0000

Number of Employees / Ratio of Female
Employees / Ratio of Employees with NonJapanese Nationalities (Consolidated)

41,8946.4

2,713

Annual Dividends per Share /Dividend on Equity (DOE)(5,000)

2019

2020

2021

2022

2023

(FY Ended March 31)

0

2022

2023

(FY Ended March 31)

0

2019

2020

2021

2022

2023

2021

2022

2023

(FY Ended March 31)

4. Change in timing of granting paid leave
5. Turnover rate = Number of regular employees who retired during the fiscal year ÷ Number of regular employees at the beginning of the fiscal year

TAKAMIYA Report 2023

57

Facts / Data

11-Year Financial Summary
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Net sales

28,11332,44334,26134,35036,76336,11442,182

46,06538,81239,80041,894

Operating income

1,605

3,051

3,098

2,983

2,429

1,690

2,713

3,703

1,586

1,682

2,253

5.7

9.4

9.0

8.7

6.6

4.7

6.4

8.0

4.1

4.2

5.4

1,553

3,006

3,325

2,731

2,337

1,610

2,662

3,541

1,569

1,954

2,400

807

1,768

2,070

2,153

1,516

1,252

1,637

2,370

857

965

1,460

Investments in rental assets

2,850

2,381

5,577

7,227

5,447

3,757

2,467

2,768

2,091

2,523

5,746

Depreciation

3,280

3,369

3,649

4,137

4,502

4,662

4,777

4,804

4,815

4,784

5,140

50

45

88

74

81

64

62

88

84

97

101

EBITDA

4,886

6,421

6,747

7,120

6,932

6,353

7,491

8,508

6,402

6,466

7,393

Cash flows from operating activities

1,575

2,839

(1,620)(1,081)

1,163

1,714

3,653

3,771

5,035

4,294

(14)

Cash flows from investing activities(812)(1,239)(1,563)(1,736)(1,093)(1,909)(1,728)(3,836)(1,382)(2,979)(1,205)

Cash flows from financing activities

(779)

(715)

2,927

2,844

879

(222)

(1,243)

1,590(2,873)

(588)

398

Cash and cash equivalents at end of period

3,076

3,979

4,233

4,242

5,187

4,750

5,414

6,922

7,712

8,516

7,768

Total assets

33,987

37,245

43,52050,091

52,76052,81354,41459,28256,45459,08162,749Equity

6,947

9,514

11,453

11,766

12,33813,19014,17018,054

18,253

18,77319,892

Interest-bearing debt

19,384

18,694

21,635

26,63629,28729,497

29,124

29,63327,62028,20930,143

Net interest-bearing debt

16,30814,715

17,402

22,394

24,10024,74723,71022,711

19,908

19,693

22,375

ROA (%)1

4.7

8.4

8.2

5.8

4.5

3.1

5.0

6.2

2.7

3.4

3.9

ROE (%)2

12.2

21.5

19.8

18.5

12.6

9.8

12.0

14.7

4.7

5.2

7.6

Ratio of profit to net sales (%)

2.9

5.4

6.0

6.3

4.1

3.5

3.9

5.1

2.2

2.4

3.5

Total asset turnover (times)

0.8

0.9

0.8

0.7

0.7

0.7

0.8

0.8

0.7

0.7

0.7

Financial leverage (times)

4.9

3.9

3.8

4.3

4.3

4.0

3.8

3.5

3.2

3.1

3.1

Fiscal years ended March 31(¥ million)

Operating income margin (%)
Ordinary income
Profit attributable to owners of parent

Research and development expenses

Notes: 1. ROA = (Ordinary income ÷ Average of total assets at beginning and end of fiscal year) × 100
2. ROE = (Profit attributable to owners of parent ÷ Average of shareholders’ equity at beginning and end of fiscal year) × 100

58

TAKAMIYA Report 2023

Notes: Numerical values in parentheses are negative values.

TAKAMIYA Report 2023

59

Facts / Data

Corporate Information

Domestic and International Network (As of October 1, 2022)
Group Companies in Japan

Corporate Outline (As of March 31, 2023)
Name

Takamiya Co., Ltd.

Capital¥1,052.14 million

Date ofestablishment

June 21, 1969

Representative

Kazumasa Takamiya.
Representative Director, President and Chairman

Grand Front Osaka Tower B Bldg., 27F,
3-1 Ofuka-cho, Kita-ku, Osaka 530-0011, Japan

Head Office

Consolidated
Non-consolidated

Number of
employees

1

IWATA Co., Ltd.

Head office

Ibaraki Prefecture

Business

Rental of temporary equipment for

Business

Contract construction and scaffolding installation works

1,266
736

construction, planning, design, and2

Aomori Prefecture

Business

Sale and rental of temporary equipment
for construction

3

Breakdown of Shares by Type of Shareholder
144,000,000
46,585,600
4,159

Foreign institutions
and others

Financial
instruments firms

6.90%

0.90%

3,214 thousand shares

421 thousand shares

Other Japanesecompanies

Principal Shareholders
Shareholders

Number ofshares held(Thousandshares)Percentage ofshares held
(%)

7,860
5,356
3,941
2,254
1,747
1,678
1,579
1,350
1,288
1,000

16.88
11.50
8.46
4.84
3.75
3.60
3.39
2.90
2.77
2.15

Takamiya Ltd.
Tojitsu Takamiya
The Master Trust Bank of Japan, Ltd. (Trust account)
Custody Bank of Japan, Ltd. (Trust account)
Takamiya Employee Stock Ownership Plan
Toyoji Takamiya
Chikako Takamiya
Kazumasa Takamiya
Akiyoshi Takamiya
Quattro Co., Ltd.

9,631 thousand
sharesTokyo

Business

Rental of temporary equipment for civil

Tokyo

Business

Production, processing, and sale ofagricultural products

9

Yame Kaisei Co., Ltd. (non-consolidated)

Head office

Fukuoka Prefecture

Business

Agricultural construction works, and22agricultural materials

engineering works, sale and rental of

Gunma Factory

temporary equipment for shield works

Main products Temporary equipment, structural equipment,

building materials, solar panel installation frames,
4

and agricultural materials

Nakaya Kizai Co., Ltd.

Head office

Shimane Prefecture

Business

Rental of temporary equipment for construction

5

21,730 thousand
shares

24.86%TAKAMIYA NO AISAI Co., Ltd. (non-consolidated)

Head office

Gifu Factory
Main products Temporary equipment

46.65%

Financial institutions

TOTAL TOSHISEIBI Co., Ltd.*

Head office

Individuals
and others

20.67%

8

AOMORI ATOM Co., Ltd.

Head office

Share Information (As of March 31, 2023)

Total number of authorized shares
Total number of issued shares
Number of shareholders

ECO-TRY Co., Ltd. (non-consolidated)

Wakayama Prefecture

installation of temporary works

Share Data

7

Head office

HIRAMATSU Co., Ltd.

Head office

Shizuoka Prefecture

Business

Transportation of temporary equipment

7
7
4
4

for construction

11,581 thousand shares

6

Notes: 1. Out of 7,020 shares of treasury stock, 70 units are stated in “Individuals andothers” and 20 shares are stated in “Status of shares less than one unit.”
2. Numbers of shares held below thousands have been truncated, andpercentages have been rounded to the second decimal place.

5
5

Cadian Co., Ltd.

Head officeTokyo

Business

Preparation of temporary equipment planning

1
1
9
9

3
3

6
6

8
8

Head Office of Takamiya Co., Ltd.
Head Office of Takamiya Co., Ltd.

sheets, calculation sheets, and construction
facility drawings as well as surveys andNotes: 1. The Company holds 7,020 shares of treasury stock. Treasury stock is
excluded from the list of principal shareholders and is not used in calculating
percentages of shares held.
2. Numbers of shares held below thousands have been truncated, andpercentages have been rounded to the second decimal place.
3. Among the above numbers of shares held, shares related to trust services
are as follows.
Custody Bank of Japan, Ltd. (Trust account)
2,252 thousand shares
The Master Trust Bank of Japan, Ltd. (Trust account) 3,941 thousand shares

Total Shareholder Return

various designs

March 2019

March 2020

March 2021

March 2022

March 2023

Takamiya105.0%

68.0%

99.5%

64.6%

75.9%

TOPIX

(95.0%)(85.9%) (122.1%) (124.6%) (131.8%)(BIM/CIM modeling and spatial measurement)Group Companies Overseas

Stock Price and Trading Volume
Stock price (¥)

Trading volume (Thousand shares)

900

9,000

600

6,000

300

3,000

10 Hory Korea Co., Ltd.

Head officeSouth Korea

Business

Manufacture, sale, and rental of temporary equipment

10
10

for construction
11 HORY VIETNAM Co., Ltd.

0

4

5

6

7

8 9 10 11 12 1
2020

2

3

4

5

6 7
2021

8

9 10 11 12 1

2

3

4

5

6 7
2022

8

9 10 11 12 1

2 3
2023

Head officeVietnamBusiness

Manufacture and sale of temporary equipment for construction

0
12 DIMENSION-ALL Inc.

Head office

The Philippines

Business

Sale and rental of temporary equipment for construction

Shareholder Information

60

Ordinary General Meeting of Shareholders: March 31
Year-end dividend: March 31
Interim dividend: September 30

Fiscal year

From April 1 to March 31 of the following year

Securities code

2445 (Prime Market of the Tokyo Stock Exchange)

Ordinary General Meetingof Shareholders

June

Transfer agent and registrar
for common stock

Mitsubishi UFJ Trust and Banking Corporation

Contact for transfer agent
and registrar

Osaka Securities Agent Department, Mitsubishi UFJ Trust and Banking Corporation, 3-6-3 Fushimi-cho, Chuo-ku, Osaka-shi,
Osaka 541-8502, Japan
TEL: 0120-094-777 (toll-free in Japan)

Method of public notice

By electronic notification on Takamiya’s website: https://www.takamiya.co/ (in Japanese only)
However, if electronic notification is not possible due to an accident or other unavoidable circumstances, notice will be publishedin the Nihon Keizai Shimbun newspaper.

TAKAMIYA Report 2023

Record date
Share trading unit

14
14

12
12
13 11
13 11

13 Cadian Vietnam Co., Ltd. (non-consolidated)

Head officeVietnamBusiness

Preparation of temporary equipment planning sheets,
calculation sheets, and construction facility drawings

100 shares

14 Cadian Myanmar Co., Ltd. (non-consolidated)

Head office

MyanmarBusiness

Preparation of temporary equipment planning sheets,
calculation sheets, and construction facility drawings* On October 1, 2022, an absorption-type merger was conducted with NEXTECH Co., Ltd. as the dissolved company.

TAKAMIYA Report 2023

61

Takamiya Co., Ltd.
Head OfficeGrand Front Osaka Tower B Bldg., 27F, 3-1 Ofuka-cho, Kita-ku, Osaka 530-0011, Japan
TEL: +81-6-6375-3918

https://www.takamiya.co/en/