Torishima Pump Mfg : Presentation Material of Consolidated Financial Results for FY2023

Consolidated Financial Results for the FY2023

14th May 2024 TORISHIMA PUMP Mfg.Co.,Ltd.

1

【1】FY2023 Financial Results

【2】Review of the Medium-term Business Plan

and FY2024 Outlook

【3】Innovations in Torishima

- Solving global issuess and create value for society -

【4】Basic policy of the Shareholders Return

2

【1】FY2023 Financial Results

【2】Review of the Medium-term Business Plan

and FY2024 Outlook

【3】Innovations in Torishima

- Solving global issuess and create value for society -

【4】Basic policy of the Shareholders Return

3

FY2023 Highlight

 Orders received were 88.0 billion yen with all business sectors, public, private and overseas, performing strongly.

 Sales and operating income was 81.1 billion yen and 6.8 billion yen, respectively,

a record high for the fourth consecutive year.

 Operating profit margin was 8.4% and ROE was 12.8%.

4

FY2023 Consolidated Financial Results

Orders received ：2.6% increase in public-sector, 5.1 % decrease in private-sector, 2.0% decrease in overseas,

resulting in an overall decrease in orders received by 1.2% to 88.0 billion.

Sales： 4.3％ increase in public-sector, 25.8% increase in private-sector and 35.8% increase in overseas, resulting in an overall increase of 25.3% to 81.1 billion yen.

Income：Record high profits for the fourth consecutive year. Net income rose sharply by 40.9% also as a result of the sale of certain securities holdings.

*The increase and decrease are YoYBillions of yen

		FY2022	FY2023	YoY			FY2023	Compared
		Amount	%		Plan	with plan
Orders Received		89.0	88.0	-1.0	-1.1%		70.0	+18.0
Sales		64.7	81.1	+16.4	+25.3 %		79.0	+2.1
Gross Operating Income		18.3	23.1	+4.8	+26.2%		―
(Gross profit margin)		(28.3%)	(28.5%)	(+0.2pt)
SG&A expense		12.4	16.3	+3.9	+31.4%		―
Operating income		5.9	6.8	+0.9	+15.3%		7.2	-0.4
(Operating profit margin)		(9.1%)	(8.4%)	(-0.7pt)
Non-operating Profit or loss		-0.2	-0.5	-0.3	―		―
Ordinary income		5.7	6.3	+0.6	+10.5%		6.6	-0.3
Extraordinary profit or loss		-0.1	2.2	+2.3	―		―
Net income		4.4	6.2	+1.8	+40.9%		5.3	+0.9
*Foreign exchange rate（1USD)	¥133.53	¥151.41					5
	31st Mar 2023	31st Mar 2024

FY2023 Financial Results（Non-consolidated/ Subsidiaries）

• Non-consolidated

Billions of yen

• Subsidiaries

Billions of yen

	FY2022	FY2023	YoY			FY2022	FY2023	YoY
	Amount	％		Amount	%
Sales	51.1	62.9	+11.8	+23.1%		21.0	27.3	+6.3	+30.0%
Gross Operating Income	11.8	14.2	-2.4	+20.3%		7.0	9.7	+2.7	+38.6
(Gross profit margin)	(23.1%)	(22.6%)	(-0.5pt)			(33.3%)	(35.5%)	(+2.2pt)
SG&A expense	7.8	9.9	+2.1	+26.9%		5.4	6.9	+1.5	+27.8
Operating income	4.0	4.3	+0.3	+7.5%		1.6	2.8	+1.2	+75.0%
(Operating profit margin)	(7.8%)	(6.8%)	(-1.0pt)		(7.6%)	(10.3%)	(+2.7pt)

• Sales increased significantly by +23.1%, largely due to the contribution of large overseas projects.
• Profit margins on public-sector have fallen due to rising material and construction costs. Profit margins on private-sector and overseas high-tech pumps have improved, and overall gross profit margins remain high level.
• Two major factors in the increase in SG&A expenses are
• 1. Increased research and development costs in new fields such as hydrogen and ammonia (approx. 600 million).
  2. Increase in sales commissions along with increased overseas sales (approx. 600 million).

• Sales increased significantly by 30.0%, with manufacturing, services and projects all performing well.
• Service subsidiaries contributed to a significant increase in operating profit.

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【1】FY2023 Financial Results

【2】Review of the Medium-term Business Plan

and FY2024 Outlook

【3】Innovations in Torishima

- Solving global issuess and create value for society -

【4】Basic policy of the Shareholders Return

7

2050 Torishima's Long-term Vision Towards Carbon Neutrality

Medium-term management plan Beyond 110 (announced in May 2021).

JUMP

Carbon Neutrality

（2030-2049）

STEP

（2025-2029）

HOP

（2021-2024）

2050

2049

		120th anniversary
		2029
	2024	110th anniversary
2019	2020
	Torishima's aspirations for what it wants to be
100th anniversary
	'A company indispensable to society'

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Progress of HOP period

Sales and operating income reached record highs every year for the last 4 years,

Achieved the original target for FY2029, the final year of the STEP period (sales of more than JPY 60 billion and operating income of more than JPY 5 billion) in FY2022 seven years ahead of schedule.

						Billions of yen
			FY2020	FY2021	FY2022	FY2023
			result	result	result	result
	Orders Received		49.1	67.9	89.0		88.0
	Sales		50.8	52.2	64.7		81.1
	Operating income		3.6	4.5	59		6.8
	(Operating profit margin)	(7.1%)	(8.6%)	(9.1%)		(8.4%)
	Orders Received			Sales	Operating income /Operating profit margin
89.0	88.0			81.1		8.6	9.1	6.8
67.9			64.7		7.1	5.9	8.4
		52.2
			50.8		4.5
49.1
					3.6

FY2020

FY2021

FY2022

FY2023

FY2020

FY2021

FY2022

FY2023

FY2020

FY2021

FY2022

FY2023

9

Revised management targets for FY2029.

Initial plan: sales CAGR 6% excluding special large orders.

Revised plan: sales CAGR 6.5% including special large orders > Aim for Sales of ¥100 billion.

			Initial plan				Revised plan
	FY2023	Target for 2029
	(announced in				Target 2029
	result
	May 2023)
Growth	16.9%	6.0％以上				Around
（sales CAGR）	（HOP average）	（excluding special				100 billion yen
			large orders）				(CAGR more than 6.5%）
Profitability	8.4	%	9.0％以上				10.0％
(Operating income
				more than
margin)
(ROE)							10.0%
Efficiency	12.8%	9.0%以上				more than

■ Revised plan

（■ special large orders）

FY2022FY2023FY2024

FY2029

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