Tokyo Stock Exchange Standard
Fukuoka Stock Exchange

Securities Code: 3166

FY2024
Financial Results Presentation
OCHI Holdings Co., Ltd.

June 3, 2024
Copyright (C) 2024 OCHI
OCHIホールディングス株式会社
Holdings Co., Ltd. All Rights
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Reserved.

Company Overview

Copyright (C) 2024 OCHI
OCHIホールディングス株式会社
Holdings Co., Ltd. All Rights
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1

Company Summary
PurposeTo create safe, secure and sustainable society
History

Company Profile
Representative

Michihiro Ochi

Head Office

3-12-20 Nanotsu, Chuo-ku, Fukuoka
810-0071, Japan

Established

October 1, 2010

CapitalMay １９５５
October １９５８
June １９７０

13,610,970

Business Outline

Wholesale trade

Securities Code

3166

(Tokyo Standard・Fukuoka）

Stock Abbreviation

OCHIHD

Stock Trading Unit

100

Number of
Employees

1,624(as of March 31, 2024)

Copyright (C) 2024 OCHI
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Holdings Co., Ltd. All Rights
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Established Ochi Shoten Co., Ltd.
Changed the company name to Ochi Sangyo Co., Ltd.

February １９９６

Listed on the Fukuoka Stock Exchange

October ２０１０

Established OCHI Holdings Co., Ltd. through stock transfer
of Ochi Sangyo Co., Ltd., shifted to a holding company
structure and listed on the Fukuoka Stock Exchange

November ２０１３

Listed on the Second Section of the Tokyo Stock Exchange

November ２０１４

Changed the market to the First Section of the Tokyo Stock
Exchange

400 million yen

Number of Shares
IssuedOpened Ochi Shoten in Fukuoka City for the purposeof selling construction materials such as wood andplywood

April ２０２２

Moved to the Prime Market of the Tokyo Stock Exchange

May ２０２３

Acquired TRESSA Co., Ltd. as a subsidiary, which conducts
housing construction work and sales of housing materials

October ２０２３

Moved to the Standard Market of the Tokyo Stock
Exchange

January ２０２４

Acquired Ai-build Corporation as a subsidiary, which
conducts exterior wall work and installation work ofsolar power panels

2

Business Segments and Geographical Locations
Engineering Business

Other

Contract, planning, design,
construction and supervision of
construction work

Sales ofindustrial materials

Sales and installation workof freezing and refrigeration,
air-conditioning andkitchen equipment

Construction of non-housing
facilities & civil engineering work

Wholesale ofindustrial materials
Taihei Shoko Co., Ltd.

Taiyo-Sangyo Co., Ltd.

Chouhou Construction Co., Ltd.

Vendor business for massretailers

Hagaya Construction Co., Ltd.

Construction Materials BusinessPre-cut Lumber BusinessAir-conditioning, Heating and Cooling,and Household products Business

Sales of building materials andhousing equipment

Processing and salesof timber for housing

Sales of air-conditioning, Sales of airconditioning, heating equipment andhousehold and textile products, etc.

Widespread development ofwholesale businessOchi Sangyo Co., Ltd.

Operationof Pre-cut plants
Yodo Ply Co., Ltd.

Affiliated companies

Ehime Precut Co., Inc.

Homecore Co., Ltd.
Tosoh Co., Ltd.

Nishinihon Framing Corporation

Ai-build Corporation
Other

Building material
dealers, House builders

Construction work

Matsui Co., Ltd.
Terada Co., Ltd.

Expanding group networks
from Western-Japan to nationwide– 98 bases in total (as of May, 2024)

DS Tokai Co., Ltd.
IMTEC Co., Ltd.

Structure inspection
All Japan Date Service, Co., Ltd.

Hokkaido region 6 bases
Construction Materials BusinessPre-cut Lumber BusinessAir-conditioning, Heating and Cooling,and Household products BusinessEngineering Business
Other

Chubu region 7 bases

Tohoku region 12 bases

Kansai region 6 bases
Chugoku region 10 bases

Kanto region 16 bases
Kyushu region 36 bases

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Shikoku region 5 bases

3Trends in Net Sales and Operating Profit
Consolidated financial results tend to expand through M&A
In FY2024, the decrease in operating profit of Ochi Sangyo Co., Ltd. was offset by that of non-residential
fields, the business scale of which has been expanding through M&A
22.17■ Consolidated net sales ■ Net sales of Ochi Sangyo Co., Ltd.
■ Consolidated operating profit Ⓐ ■ Operating profit of Ochi Sangyo Co., Ltd. Ⓑ ◆Ⓐ／Ⓑ

1.16

2.48

2.25

2.07

3.30

3.04

2.81

2.38

4.09

3.93

2.87

90,952

91,32383,46979,25378,084104,219

50,81752,493

101,842

84,525

3,064

1,185

602
527

2,172

1,411

1,402

566

Ｍ＆Ａ
History428
2012.32013.355,0372014.32015.357,94560,716

1,938

1,934

689

812

60,994

1,913

59,536

2,036

57,60259,7052,946

61,02059,261

2,155

1,943

1,468

1,051

520
2011.354,198113,366

95,02873,47360,574（Millions of yen）

115,613111,875
104,671

49,604

6.31

5.46

483
2016.32017.32018.3666
2019.3518
2020.3475
2021.3561
2022.3467
2023.3972024.3

Jul. 2021 Marumitsu Toyo Co., Ltd. became a subsidiary
May 2016 Nishinihon Precut Center Co., Ltd. became a subsidiary
Oct. 2021 Terada Co., Ltd. became a subsidiary
Oct. 2016 Taihei Shoko Co., Ltd. became a subsidiary
Jun. 2013 Business transfer from Soken Limited Company
Jul. 2020 IMTEC Co., Ltd. became a subsidiary
Jul. 2022 All Japan Date Service, Co., Ltd.
Jul. 2020 Chouhou Construction Co., Ltd. became a subsidiarybecame a subsidiary
Dec. 2014 DS Tokai Co., Ltd. became a subsidiary
Oct. 2022 Hagaya Construction Co., Ltd.
Feb.
2018
MarutakiCo.,Ltd.
becameasubsidiary
Nov. 2015 Sakaguchikenzai Co., Ltd. became a subsidiarybecame a subsidiary
Apr. 2018 Takemoku Co., Ltd. became a subsidiaryMay
2023
TRESSA
Co., Ltd. became a subsidiary
May 2018 Ehime Precut Co., Inc. became a subsidiaryJan. 2024 Ai-build Corporation became a subsidiary
Aug. 2018 Taiyo-Sangyo Co., Ltd. became a subsidiaryJan. 2011 Yodo Ply Co., Ltd. became a subsidiary

Copyright (C) 2024 OCHI
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Holdings Co., Ltd. All Rights
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4

Summary of Financial Resultsfor FY 2024

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5

Financial Highlights
Achieved the target in profit attributable to owners of parent, despite decrease
both in net sales and in operating profits due to the decline in housing starts
Net sales

113,366million yen
vs FY2023
vs Plan

98.1％
94.5％

◼
◼
◼

New construction starts for owner-occupied and built-for-saledetached houses in FY2024 decreased by 10.0% year on year
1.9% decrease year on year, 3.9％ decrease excluding thecontribution of M&A
Reached the target in ‘Engineering Business‘

Operating profit◼

2,155 million yen
vs FY2023 73.2％
vs Plan
78.4％◼
◼

26.8% decrease year on year due to decrease in profits of‘Construction Materials Business’ and ‘Pre-cut Lumber Business’,
and increase in SG&A expenses
28.4% decrease excluding the contribution of M&A
Reached the targets in ‘Air-conditioning, Heating and Cooling, andHousehold products Business’, ‘Engineering Business’ and ‘Other’Profit attributable to owners of parent

2,093 million yen
vs FY2023 84.3％
vs Plan102.1％◼
◼

Achieved the target despite the decrease by 15.7% year on year
Recorded gain on sale of non-current assets of 489 million yen andgain on sale of investment securities of 225 million yen as
extraordinary income

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6

Statement of Income
Millions of Yen( ) represent composition figures

FY2024FY2023ResultNet Sales

115,613

113,366(100.0％)(100.0％)Gross Profit

15,617

15,551(13.5％)(13.7％)

SG&A Expenses

12,671

13,395(11.0％)(11.8％)

Operating Profit
Ordinary Profit
Profit attributable toowners of parent

2,946

2,155

(2.5％)(1.9％)

3,531

2,731

(3.1％)(2.4％)

2,484

2,093

(2.1％)(1.8％)FY2023

Change Amount
Y on Y

Change %Y on Y▲2,246

98.1%

▲66

99.6%

724

105.7%

▲790

73.2%

▲800

77.3%

▲391

84.3%

Plan

Change Amount
Change %(Result vs Plan) (Result vs Plan)

120,000（100.0%)

16,110(13.4%)

13,360(11.1%)FY20242,750(2.3%)

3,200(2.7%)

2,050(1.7%)▲6,633

94.5%

▲558

96.5%

35

100.3%

▲594

78.4%

▲468

85.4%

43

102.1%

Remarks

Gain on sale of non-current
assets83

489

Sale of investment property

Gain on sale of investment
securities

158

225

Part of reduction in cross-shareholdings

Gain on bargain purchase

91

ー

333

715

Impairment losses

11

68

Impairment of buildings and structures

Restructuring expenses―

25

Due to the closure of Onomichi branch of Yodo Ply Co., Ltd.

16

100

Total extraordinary income

Total extraordinary loss
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FY2023：Relating to the acquisition of Hagaya Construction Co.,
Ltd. as a subsidiary7

Analysis for Changes in Operating Profit - Year on Year
Decrease in operating profit
due to decline in gross profit and increase in SG&A expenses
Contribution of M&A decreased compared to that in the first half of the fiscal year
partly due to the seasonal fluctuations of public works and business(Millions of yen）

▲790 million yen [▲26.8％]

Contribution of M&A＋111.3

2,946

Increase
Increasein labor costin▲114.8 Ｍ＆Ａrelated expenses▲52.5

Decreasein gross profit▲485.5

Increasein supplies expenses▲33.4

Increasein entertainment expenses▲39.9※Mainly due to the increase
in benefit expenses
accompanying with the increasein the number of shareholders

Factors for profit
increase

2,155

Increase in other
SG&A expenses▲175.9

Factors forprofit decrease0

FY2023Results
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FY2024
Results8

Analysis for Changes in Operating Profit vs Plan

Operating profit decreased due to the decline in gross profit
Overall SG&A expenses were mostly as planned.
M&A related expenses were incurred,
while labor cost and sales promotion costs were lower than the plans.

[Millions of yen]▲594 million yen [▲21.6％]

2,750

Decreasein gross profit

Decreasein labor cost

▲630.8＋137.9Decreaseinsales promotion costs＋94.0

Ｍ＆Ａrelated
expenses- Ai-build
Corporation▲100.6

Loss for the periodof a new company- TRESSA Co., Ltd.

Increase in other
SG&A expenses

▲42.0

▲22.8

2,155

Increasein supplies expenses▲31.8

Unplanned
Factors forprofit increase

Factors forprofit decrease0

FY2024Plan
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FY2024
Results

9

Trends in Net Sales for Each Quarter■ 1st Quarter■ 2nd Quarter ■ 3rd Quarter ■ 4th Quarter ◆ Operating profit margin[Millions of yen]

35,00032,28830,561

30,00028,55428,54527,429 27,221

25,00024,76424,80325,51324,75526,22028,43930,41328,744

27,86828,697
27,94826,30624,821

23,01820,0004.0%

15,000

2.4%

3.0%
2.3%

1.6%

2.8%
2.1%

1.4%

1.1% 1.2%

2.2%

1.7%

2.7%

2.7%

2.6%

2.6%

2.2%

2.5%
1.7%
0.6%

10,000

5,000

0

1Q

2Q

FY2020

3Q

4Q

1Q

2Q

3Q

FY2021

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4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

2Q

3Q

4Q

FY202410

Trends in Annual Rate Y on Y (nationwide)%

Construction Materials Business secured almost the same amount of net sales as that in
the previous fiscal year, while the number of housing starts declined. Net sales of Pre-cut
Lumber Business decreased due to the continued impact of decline in lumber sales price.

Mar.00New construction starts forowner-occupied houses
andbuilt-for-sales houses

Net salesin Construction Materials BusinessNet salesin Pre-cut Lumber Business

Feb.00

Feb.00

Jan.00

Jan.00

Apr.21

Oct.21

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Apr.22

Oct.22

Apr.23
Oct.23※ As for the figures in 2021, excluding the impact of applying revenue
recognition accounting standards

11Profit and Loss by Segment
Millions of yen, Figures in ( ) represent composition ratios
Figures in < > represent operating profit margin of each segment

FY2024FY2023
Net Sales
Construction Materials
Business
Pre-cut Lumber BusinessAir-conditioning, Heating
and Cooling, and Householdproducts BusinessEngineering Business

Other
Inter-businesscoordination

Operating Profit
Construction Materials
Business
Pre-cut Lumber BusinessAir-conditioning, Heating
and Cooling, and Householdproducts BusinessEngineering Business

Other
Inter-businesscoordination

ResultChange Amount
Y on Y

115,613

113,366(100.0％)(100.0％)71,11869,927(61.5％)(61.7％)

18,711

14,729(16.2％)(13.0％)

17,306

17,769(15.0％)(15.7％)

5,644

8,258

(4.9％)(7.3％)

Change %Y on Y▲2,24698.1%

120,000▲1,191

98.3%

73,568▲3,981

78.7%

17,566462

102.7%

18,0272,614

146.3%

▲263

92.3%

3,405

3,142

(2.9％)(2.8％)

▲573

▲460

112

―

2,946

2,155

(2.5％)(1.9％)

▲790

73.2%

▲504

61.5%

▲727

53.9%

75

138.3％

476

233.7％

▲11

91.0%

▲99

―

1,311

807

<1.8％><1.2％>

1,578

850<8.4％><5.8％>

196

271<1.1%><1.5%>

356

833

<6.3>

<10.1>

131120<3.9％><3.8％>▲628▲727

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Plan

Change Amount
Change %(Result vs Plan) (Result vs Plan)▲6,633

94.5%▲3,641

95.1%▲2,837

83.8%

▲257

98.6%

236

103.0%

▲169

94.9%

▲495

34

―

2,750

▲594

78.4%

▲558

59.1%

▲386

68.8%

91

150.9％

306

158.2％

9109.0%▲57―(100.0％)(61.3％)(14.6％)(15.0％)

8,021(6.7％)

3,312(2.8％)(2.3％)

1,365<1.9％>

1,237<7.0％>

179<1.0%>

527<6.6％>

110<3.3％>▲669

12

Construction Materials BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2023

Net Sales
Gross Profit
Operating Profit

71,118FY2024
ResultChange Amount
Y on Y

Change %Y on Y

69,927▲1,191

98.3％

7,750

7,699

(10.9％)(11.0％)

▲50

99.3%

▲504

61.5%

1,311

807

(1.8％)(1.2％)

Plan

Change Amount
Change %(Result vs Plan) (Result vs Plan)

73,568▲3,641

95.1％

8,075

▲375

95.3%

▲558

59.1％

(11.0％)

1,365(1.9％)

Y on Y Change◼

◼

We focused on expanding sales of products aimed at achieving carbon neutrality, capturing demand
for remodeling/renovation and promoting the introduction of wooden structures and woodeninterior decorations to non-housing buildings, while new housing starts for owner-occupied houses
and built-for-sale detached houses decreased. Furthermore, we acquired TRESSA Co., Ltd.,
headquartered in Nagasaki City in May 2023, and Ai-build Corporation, having bases throughout
Japan in January 2024. Net sales decreased by 1.7% year on year.
Operating profit decreased by 38.5% year on year due to the increase in SG&A expenses such aslabor cost and so on.

Result vs Plan◼
◼

Both net sales and operating profit fell short of the targets due to the decrease in the number of newstarts for owner-occupied houses and built-for-sale detached houses.
The profit and loss of TRESSA Co., Ltd. is recorded on the consolidated financial results from thesix-month period and Ai-build Corporation is consolidated only in terms of the balance sheet.

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13

M&A in January 2024

Ai-build Corporation
Company Profile
Ai-build Corporation

Trade Name
Established
Head Office

Hokkaido region

March 1, 1991

Sapporo branch

1-18-4, Kamaya Kita-Ku, Tokyo 1150043, JAPANHokkaido region: Sapporo branch
Tohoku region:
Iwate branch, Sendai branchBusiness
Kanto region:
Sales division, Yokohama branch,
Locations
Tsukuba branch, Chiba branch, Pre-cut factory
Kyushu region:
Fukuoka branch, Kumamoto branch
C a p i t a l

Housing exterior wall work
Roof and gutter work
Installation work of solar power panels
Wooden building construction work etc.

Business
OutlineNumber of
Employees

116 （as of July, 2023）

Net

Sales

Iwate branch
Sendai branch

Head Office
Kanto region

20 million yen••••

Tohoku region

Kyushu region
Fukuoka branch
Kumamoto branch

Sales division
Yokohama branch
Tsukuba branch
Chiba branchPre-cut factory

4,932 million yen (FY2023 ended July)

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14

Pre-cut Lumber BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2024FY2023

Net Sales
Gross Profit
Operating Profit

18,711ResultChange Amount
Y on Y

Change %Y on Y

14,729▲3,981

78.7%

3,524

2,751

(18.8％)(18.7％)

▲772

78.1%

▲727

53.9%

1,578

850

(8.4％)(5.8％)

Plan

Change Amount
Change %(Result vs Plan) (Result vs Plan)

17,566▲2,837

83.8％

3,164

▲413

86.9％

▲386

68.8％

(18.0％)

1,237(7.0％)

Y on Y Change

◼

◼

◼

We made greater efforts to win orders from non-housing projects, including offices, shops,
and other facilities, in addition to detached houses, our mainstay. However, net sales of thisbusiness decreased by 21.3% year on year, due to lower lumber prices as well as the decline in
new construction starts for owner-occupied houses and built-for-sale detached houses.
Operating profit decreased by 46.1% year on year, despite the efforts to maintain gross profit.
However, we secured operating profit level before 2021-2023 lumber shortage (Re: 835
million yen for FY2020, 704 million yen for FY2021).
We closed Onomichi branch (formerly Nishinihon Precut Center Co., Ltd.) of Yodo Ply Co.,
Ltd. in September 2023, due to the difficulties in expanding production scale.

Result vs Plan◼

Both net sales and operating profit fell short of targets, due to lower lumber prices aswell as the decline in new construction starts.

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15

Air-conditioning, Heating and Cooling,and Household products BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2024FY2023

Net Sales
Gross Profit
Operating Profit

ChangeAmountY on Y

Result17,306

Change %Y on Y

17,769462

102.7%

2,674

2,783

(15.5％)(15.7％)

109

104.1%

75

138.3％

196

271(1.1%)(1.5%)

ChangeAmount(Result vs
Plan)

Change %(Result vsPlan)

18,027

▲257

98.6％

2,890

▲107

96.3％

91

150.9%

Plan(16.0％)

179(1.0％)

Y on Y Change

Net sales increased by 2.7% year on year because sales and installation workof freezing and refrigeration equipment and air-conditioning equipment grewsteadily.
◼ Operating profit increased by 38.3% year on year.
◼

Result vs Plan

Net sales fell short of the target due to undermined consumer sentimentcaused by rising living costs and so on in vendor business for mass retailers.
◼ Operating profit achieved the target due to strong performance in sales andinstallation work of freezing and refrigeration equipment and airconditioning equipment, and the reduction of SG&A expenses bystreamlining logistics and so on in vendor business for mass retailers.
◼

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16

Engineering BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2024FY2023

Net Sales
Gross Profit
Operating Profit

Result5,644

Change Amount
Y on Y

Change %Y on Y

8,258

2,614

146.3%

1,136

1,780

(20.1%)(21.6%)

644

156.7%

476

233.7%

356833(6.3％)(10.1％)

Plan

Change Amount
Change %(Result vs Plan) (Result vs Plan)

8,021

236

103.0％

1,449

330

122.8％

306

158.2％(18.1％)

527(6.6％)

Y on Y Change◼

Net sales increased by 46.3% year on year due to the contribution of All Japan
Data Service, Co., Ltd. and Hagaya Construction Co., Ltd., which both
became our subsidiaries in the previous fiscal year, and steady construction
sales in the existing companies.

◼

Operating profit increased by 133.7% year on year.

Result vs Plan◼

Net sales achieved the target.

◼

Operating profit achieved the target conspicuously, through the improvementof gross profit rate.

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17

OtherMillions of yen,
Figures in ( ) represent composition ratios

FY2024FY2023

ChangeAmountY on Y

ResultChange %Y on Y

Plan

ChangeAmount(Result vs
Plan)

Change %(Result vs
Plan)

Net Sales

3,405

3,142

▲263

92.3%

3,312

▲169

94.9％

Gross Profit

535

541
(17.2%)

101.1%

536(15.7%)

5

4

100.8％

▲11

91.0%

9

109.0％

Operating Profit

131

120

(3.9％)(3.8％)(16.2％)

110(3.3％)

Y on Y Change◼

Net sales decreased by 7.7% year on year due to declines in automotiverelated sales and sales of electric insulating materials for industrial use.

◼

Operating profit decreased by 9.0% year on year due to the increase of SG&A
expenses such as labor cost, despite the efforts to improve gross profit rate.

Result vs Plan◼

Net sales fell short of the target.

◼

Operating profit achieved the target, through the improvement of gross profit
rate.

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18

Balance Sheet[Millions of yen]
FY2024FY2023

FY2023

ChangeCash and deposits

14,146

14,598452

Notes and accounts
receivable - trade23,404

22,246▲1,158Merchandise

4,460

4,526

Costs onconstruction
contracts in progress

1,662

Other current assets
Allowance for
doubtful accounts

Notes and accounts
payable-trade

FY2024
Change30,82330,376▲447

Short-term borrowings

3,837

4,084

247

66

Other current liabilities

3,837

3,459

▲377

1,645

▲17

Long-term borrowings

2,017

2,050

33

994

973

▲20

Retirement benefit
liability

633

627

▲5

▲24

▲43

▲18

Other non-current
liabilities

1,825

2,392

566

44,64443,947▲696

42,97442,99218

Property, plantand equipment

12,822

14,673

1,851

Shareholders’ equity

21,15022,596

1,446

Intangible assets

1,616

1,424

▲192

Accumulated othercomprehensive income

380

719

338

Investments andother assets

5,448

6,291

842

27

29

2

Non-current Assets

19,88722,3892,501

Net Assets

21,557

23,345

1,787

Total Assets

64,531

66,337

1,805

Total Liabilities and Net
Assets64,531

66,337

1,805

Capital adequacy ratio

33.4%

35.1％

1.7％

Current Assets

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Liabilities

Non-controllinginterests

19

Statement of Cash Flows[Millions of yen]

FY2023
Cash flows from operating activities

FY2024

1,856

Major Factors

3,385

Profit before income taxes＋3,346
Decrease in accounts receivable ＋1,889
Decrease in accounts payable▲1,044
Corporate income taxes▲1,020
Proceeds from the sales of investment
property＋693

Cash flows from investing activities

364▲1,539Proceeds from sale of investment
securities＋411
Purchase of property, plant andequipment▲2,043
Expenditures for the acquisition ofsubsidiary shares accompanying changes inscope of consolidation▲677

Free cash flow

2,221

1,845

Cash flows from financing activities▲376▲1,2891,845

556

Cash and cash equivalents at
beginning of period

12,15814,004

Cash and cash equivalents at end of
period14,004

14,560Net increase(decrease) in cash andcash equivalents

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Proceeds from long-term borrowings＋800

Repayments of long-term borrowings ▲1,414

Dividends paid

▲709

20

Financial Forecast
for FY2025

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Financial Forecast for FY2025
We expect increase both in net sales and in operating profit, through expanding sales in
non-housing markets, capturing remodeling demand, promoting wooden structure
construction and contribution from M&A in the previous fiscal year.
Millions of yen,
Figures in ( ) represent composition ratios

FY2025
FY2024

Forecast

Net Sales

113,366

125,000(100.0％)(100.0％)Gross Profit

15,551

17,588(13.7％)(14.1％)

SG&A Expenses
Operating Profit

Ordinary Profit
Profit attributable to owners of parent

Ｒ

Ｏ Ｅ

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13,395

14,788(11.8％)(11.8％)

2,155

2,800

(1.9％)(2.2％)

2,731

3,400

(2.4％)(2.7％)

2,093

2,100

(1.8％)(1.7％)

9.3％

8.7％

ChangeAmountChange %11,633110.3%

2,036

113.1%

1,392

110.4%

644

129.9%

668

124.5%

6

100.3%

▲0.6％

ー
22

Improvement in capital profitability（ROE 10% or higher)■Profitability improvement in our mainstay– “Construction Materials Business” and “Pre-cut Lumber Business”●Nationwide expansion of solar power generation business・We develop solar power installation services and promote ZEH and Long-life Quality Housing withmajor housing makers, in accordance with mandatory installation of solar power generation in new housing
aimed at achieving carbon neutrality.
・We expand sales and installation work of solar power generation facilities within the whole Ochi group,
centering on Ochi Sangyo Co., Ltd. and Ai-build Corporation in ‘Construction Materials Business’, andTaiyo-Sangyo Co., Ltd. in ‘Air-conditioning, Heating and Cooling, and Household products Business’.
・We try to capture broad demand for solar power installation service, cooperating with wide-areabuilders, general contractors and so on.

“Flexible” High-output and ultra-lightweight type of solar panel
Being light and applicable on curved surfaces,
it can be attached to carports or walls etc.

Installed by Ai-build Corporation in Dec. 2023

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23

Improvement in capital profitability（ROE 10% or higher)■Profitability improvement in our mainstay– “Construction Materials Business” and “Pre-cut Lumber Business”●Expanding non-housing business・We promote to construct non-housing buildings such as hospitals, elderly care facilities,
kindergartens etc. with wooden structures, and try to win more orders for non-housing buildings,
and make this business a new pillar alongside new-starts and remodeling.
・We enhance group synergy through cross-sectional collaboration in ‘Construction Material
Business’, ‘Pre-cut Lumber Business’ and ‘Engineering Business’, and increase the sales composition
for non-housing field within Ochi group as a whole.
To pre-cut at 5 factoriesof 3 companies within Ochi Group
Nishinihon Framing Corporation
Main factory
Nishinihon Framing Corporation
Saga factory

Nishinihon Framing Corporation
Saga Craft factory

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Yodo Ply Co., Ltd.

Ehime Precut Co., Inc.

24

Improvement in capital profitability（ROE 10％ or higher)■ Profitability improvement in our mainstay– “Construction Materials Business” and “Pre-cut Lumber Business”● Improving productivity
・We promote DX to realize improvement of productivity and work efficiency.
・We start to use tools for online product proposal.
・We promote to use RPA for the purpose of workload reduction and operational improvement.
・We newly establish Logistics Operations Department to respond to market changes. The
department promotes delivery optimization by improving efficiency of product inspection work,
etc.

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25

Improvement in capital profitability（ROE 10％ or higher)
Changes of Balance between Interest-bearing Debt and Cash and Deposits■We keep healthy cash position while conducting aggressive M&A[ Million yen]

16,000
Balance of Interest-bearing Debt

Cash and Deposits

14,59814,146

14,00012,19512,00010,731

10,0008,184+6,826

8,000
6,000

+4,584

6,154+8,228+7,954+2,030

6,147

6,192

6,370

5,369

4,000
2,000
0
FY2020

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FY2021

FY2022

FY2023

FY202426

Improvement in capital profitability（ROE 10％ or higher)■Investment to growth fields, using operating cash flow
●Pursuit of aggressive M&A
・We continue to acquire new companies in highly profitable growth fields, using
operating cash flow.
・We plan to increase the proportion of non-residential fields to consolidated net
sales to 30% or more.
■We plan to establish corporate structure which is less susceptible tochanges in housing demand
Sales Portionin Non-residential Fields

20,836FY2021
FY2021[Millions of yen]
Air-conditioning, Heating and Cooling,

Engineering Businessand Household products Business

25,446

26,357

FY2022
FY2022

FY2023
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Other

40,50029,170

FY2024FY2024FY2027
TargetFY2027 Target

27

Full-year Plan by Segment
Construction Materials BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2024
ResultNet Sales
Gross Profit
Operating
ProfitFY2025
Plan

Change %Y on Y

79,141113.2％

7,699

9,408

(11.0％)(11.9％)

122.2％

69,927807

1,383(1.2％)(1.7％)

171.4％◼ We plan to increase sales and profits by
expanding sales in non-housing field, newly
cultivating and deepening relationships withbuilders, strengthening construction functions,
expanding sales channels for civil engineering
related products, promoting sales of products
aimed at achieving carbon neutrality andcapturing remodeling/renovation demand, etc.
◼ We anticipate that TRESSA Co., Ltd. and Aibuild Corporation, which we acquired in theprevious fiscal year, will contribute to theperformance of this business.

Pre-cut Lumber BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2024
ResultNet Sales
Gross Profit
Operating
ProfitFY2025
Plan

Change %Y on Y16,144109.6％

2,751

3,132

(18.7％)(19.4％)

113.9％

14,729850

1,193(5.8％)(7.4％)

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◼ We intend to increase sales and profits, byfurther capturing non-housing propertiesand demand for rental houses, developing
new customers, taking initiatives toconstruct wooden structure buildings incollaboration with Engineering Business andConstruction Materials Business.

140.3％

28

Full-year Plan by Segment
Air-conditioning, Heating and Cooling,and Household products BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2025

FY2024
ResultPlan

Net Sales

17,76917,542

98.7％

Gross Profit

2,783

2,768

(15.7％)(15.8％)

99.5％

Operating Profit

Change %Y on Y

271

198(1.5％)(1.1％)

73.2％◼ In the sales of household and textile
products, we strengthen e-commerce
section for B to C in addition to venderbusiness for mass retailers.

◼ We anticipate decrease in profitability,
expecting the increase of labor and logistics
costs, etc.

Engineering BusinessMillions of yen,
Figures in ( ) represent composition ratios

FY2024
ResultNet Sales
Gross Profit
Operating Profit

8,258

FY2025
Plan

Change %Y on Y

9,436

114.3％
98.6％

1,780

1,754

(21.6％)(18.6％)

833

721(10.1％)(7.6％)

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86.5％◼ We expand sales of civil engineering
related products in cooperation with
Construction Materials Business, promoting
initiatives for converting non-housingbuildings to wooden structures, andwooden structure construction.

◼ We anticipate decline in profitability,
expecting surge in materials and increasein labor and outsourcing costs.
29

Full-year Plan by Segment
Other

Millions of yen,
Figures in ( ) represent composition ratios

FY2024
ResultNet Sales
Gross Profit
Operating Profit

FY2025
Plan

Change %Y on Y

3,595

114.4％

541

565(17.2％)(15.7％)

104.4％

3,142

120

122

(3.8％)(3.4％)

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◼ We aim to increase both sales andprofits by expanding the range of
dealing products in domestic
industrial materials (electric
insulating materials for industrialuse, thermal insulators).

102.0％

30

Progress on Medium-termManagement Plan
（FY2023～FY2027）

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31

Basic Policy
PurposeTo create safe, secure and sustainable society

Action Philosophy
Positivity

Sincerity

Stability

Basic Policy① Transformation of business portfolio for sustainable growth② Development of sales activities focusing on growth fields③ Establishment of a management platform underpinning stable growth

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32

Review on Measures （1）１．Transformation of business portfolio for sustainable growth
Progress and special remarks

Measures（for Medium-term management plan)⚫ Establishing corporate structure lesssusceptible to changes in residential
demand, and increasing sales ratio of
non-residential fields up to 30% andmore by the end of FY2027⚫ Expanding business scale through active
M&A promotion

Previous Medium-termManagement Plan

FY2022
ResultAir-conditioning, Heating and Cooling,⚫ In May 2023, we acquired TRESSA Co., Ltd. as a subsidiary,
which, headquartered in Nagasaki City, is engaged in housing
wall work and sales of housing materials.
【Construction Materials Business】⚫ In January 2024, we acquired Ai-build Corporation, which,headquartered in Kita-ku, Tokyo, is mainly engaged inexterior wall work and installation work of solar power panels
nationwide.
【Construction Materials Business】⚫ Percentage of non-residential fields to consolidated net sales
is shown in the table below:[Millions of yen]

Current Medium-term Management Plan

FY2023ResultFY2024
ResultFY2027 Target

16,14417,306

17,76940,500

（Ｂ）

6,146

5,644

8,258

30.3%

Other
（C）

3,156

3,405

3,142

25,446

26,357

29,170

22.7％

22.7%

25.7%

and Household products Business（Ａ）
Engineering Business

Sales in non-residential fields（Ａ）+（Ｂ）+（C）
Percentage of sales in nonresidential fields to consolidated net
sales

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33

Review on Measures （2）Pre-cut Lumber BusinessC o n s t r u c t i o n

M a t e r i a l s

B u s i n e s s

２．Development of sales activities focusing on growth fields
Measures（for Medium-term management plan)

Progress and special remarks⚫ Promoting sales of products aimed
at achieving carbon neutrality⚫ Net sales of solar panel generation equipment increased by
161.3％ in comparison with FY2022 at Ochi Sangyo Co., Ltd.
⚫ Net sales of ZEH related products increased by 9.8％ incomparison with FY2022 at Ochi Sangyo Co., Ltd.
⚫ In May 2023, we acquired TRESSA Co., Ltd., which,headquartered in Nagasaki City, was engaged in housing
wall work and sales of housing materials.
⚫ In January 2024, we acquired Ai-build Corporation, which,headquartered in Kita-ku, Tokyo, was mainly engaged inexterior wall work and installation work of solar power
panels nationwide.
⚫ Net sales for non-housing buildings increased by 10.2% incomparison with FY2022 in Construction Materials Business⚫ In February 2024, we organized “Wooden Structure
Project” to strengthen the initiatives for constructing nonhousing buildings with wooden structures.

⚫ Capturing remodeling/renovation
demand⚫ Reaching out to non-housing
markets⚫ Reaching out to non-housing
markets⚫ Strengthening construction
functions

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⚫ Sales for non-housing buildings increased by 23.5% incomparison with FY2022 in Pre-cut Lumber Business⚫ Focusing on sales with construction in Pre-cut Lumber
Business

34

Review on Measures （３）２．Development of sales activities focusing on growth fields

Other

Engineering BusinessAir-conditioning, Heating
and Cooling, and Householdproducts BusinessMeasures（for Medium-term management plan)⚫ Strengthening the construction
system⚫ Developing e-commerce market⚫ Establishing construction networkby promoting further M&A⚫ Handling civil engineering-related
products in cooperation with
Construction Materials Business⚫ Transformation of sales
composition in view of EV
conversion of automobiles⚫ Sales expansion of domestic
industrial materials

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Progress and special remarks⚫ At Taiyo-Sangyo Co., Ltd., orders for installation work of
refrigeration/freezing equipment increased bystrengthening construction system.
⚫ Terada Co., Ltd. expanded sales of clothing, etc. on its ecommerce site.
⚫ Matsui Co., Ltd. opened an e-commerce site in FY2024
and promoted market cultivation.
⚫ With the acquisition of Ai-build Corporation in January2024, we strengthened our network with its construction
department.
⚫ We strive to develop eco-friendly civil engineering-related
products in cooperation with Construction Materials
Business.
⚫ In February 2024, we organized “Wooden Structure
Project” to strengthen the initiatives for constructing nonhousing buildings with wooden structures.
⚫ Sales composition rate in the automobile field decreased
partly due to the influence of production adjustments in
automobile related manufacturing industry.
⚫ We expanded product lines of domestic materials such as
electric insulation materials (Tokron, etc.) and fire-proof
sealing materials, etc., and promoted to sell theseproducts.
35

Review on Measures （４）３．Establishment of a management platform underpinning stable growth
Measures（for Medium-term management plan)⚫ DX promotion⚫ Strengthening the initiatives
for sustainability

Progress and special remarks⚫ Since April 2022, we have introduced a new sales management
system common to Construction Materials Business into 3
companies, bringing the total number of companies introduced
this system to 6.
⚫ In April 2023, we newly established “Information System
Department” to promote DX (such as operational efficiency
improvement through RPA and electronic FAX).
⚫ In May 2022, we endorsed the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD).

⚫ Developing and securing
human resources⚫ Reinforcing corporate
governance⚫ In April 2023, we established Sustainability Committee.
⚫ We set the reduction target for greenhouse gas emissions
within the group at 30% for 10-year period from 2021 to 2030.
⚫ In June 2023, we formulated “OCHI group Human Rights
Policy”.
⚫ In March 2024, we conducted an engagement survey toimprove the internal environment based on Human Rights Policy.
⚫ We implement the disclosure of the essential documents(Notices of Convocation and Resolution, Consolidated Financial
Results and Financial Presentation Materials) in English sinceApril 2022, in response to the corporate governance code.

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36

Shareholder returns

Achieved 13th consecutive year of dividend increase(after taking stock split into account)
Year-end DividendInterim-Dividend and Year-end Dividend
1 yen higher than initial forecast respectively

Interim Dividend

Year-end Dividend
2 yen higher than initial forecast
Year-end Dividend
50 yen20 yen higher than initial forecast

Year-end Dividend
3 yen higher thaninitial forecast
Year-end Dividend
1 yen higher than initial
forecast
60th Anniversary
Commemorative Dividend

Commemorative Dividend for
Listing on 1st Section of TSE
Commemorative Dividend for
Listing on 2nd Section of TSE

55th Anniversary
Commemorative Dividend

10 yen1
999FY2011FY2012FY2013

Stock split
PayoutRatio

9 yen 9 yen[1: 1.2]

12 yen 14 yen[1: 1.5]

19 yen 20 yen

15 yen

2
5

4
5

5

5

5

5

FY2014FY2015FY2016[1: 1.5]

24 yen

5

1
9

10

9

10

FY2017FY201812

20

52 yen2

25

54 yen 54 yen

2

26

27

30 yen26 yen

13

3

14

12

13

13

FY2019FY2020

FY2021

15
25

26

27

FY2023

FY2024FY202515
FY2022

Forecast

7.9％ 4.7％ 6.2% 7.3％ 16.9% 17.4% 18.4% 19.6% 22.9% 23.7% 21.8% 18.8% 27.0% 33.4% 33.3%

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37

Actions to Implement Managementthat is Conscious of
Cost of Capital and Stock Price

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38

Current understanding of market evaluation
ＰＢＲ

・Since the end of FY2022, PBR ratio had
been below 1 x, however, it improved to 0.94
as of the end of FY2024

ＲＯＥ

・ROE had peaked in FY2022 and it declined
to 9.3% as of the end of FY2024[Unit: Ratio]※Industry -4 companies: Geolive Group Corporation, Kuwazawa Holdings Corporation, JK Holdings Co., Ltd., Nice Corporation
Source: Quarterly Financial Results

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39

Initiatives to achieve PBR 1 x
Improvement of capital profitability
We strive to strengthen consolidated profitability while promoting development of sales activities focused on growth fields,
and conducting M&A with an emphasis on profitability.

Transformation of business portfolio
We plan to expand business scale by promoting M&A in the profitable growth fields, for increasing profits within the entire
group.

Enhancement of shareholder returns
The basic policy is to strive to maintain stable dividend payments, and to pay dividends taking into account consolidated
financial results, with a target consolidated dividend payout ratio of 30% or more.

Improvement in liquidity of our shares
Trends in the tradable shares ratio of the company - FY2021：23.3％、FY2022：25.5％、FY2023：32.5％、FY2024：33.8％

Strengthening corporate governance
We plan to select three (3) female directors out of seven(7) outside directors in the general meeting of shareholders in June
2024.
11 Directors will be consisted of four(4) inside directors and seven(7) outside directors.

Sustainability
We established sustainability committee and set the reduction target for greenhouse gas emissions within the group at 30%
for 10-year period from FY2021 to FY2030.
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40

Summary●We acquired Ai-build Corporation as a subsidiary in January 2024.
●We achieved 13th consecutive year of dividend increase(After taking account of stock split).
●Regarding dividend payout ratio, we aim to conduct 30% or more of dividend
payment.
●We improve capital profitability (ROE - 10% or higher)

・We plan to improve profitability in our main businesses- ‘Construction Materials Business’ and ‘Pre-cut Lumber Business’.
・We plan to invest in growth fields, using operating cash flow.

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41

【 Company 】 OCHI Holdings Co., Ltd.
【 Address 】

3-12-20 Nanotsu, Chuo-ku, Fukuoka 810-0071. Japan【 Telephone 】Corporate Planning Department
Finance Department092-235-0601
092-235-0604

Disclaimer Regarding Forward-looking Statements
These presentation materials contain forward-looking statements based on the assumptions andexpectations in light of the information currently available.
Certain risks, uncertainties and various factors may cause the company’s actual results to differ materiallyfrom any projections presented here.
The Company undertakes no obligation to publicly update any forward-looking statements.
All rights are reserved by OCHI Holdings Co., Ltd. No part of this material may be reproduced or transmitted
for any purpose in any form or by any means, electronic or mechanical, without permission.
Note: This document has been translated from Japanese original for reference purpose only.
In the event of any discrepancy between this document and the Japanese original, the original shall prevail.
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