Q1 FY2019Earnings Presentation
August 2019
First Section of the Tokyo Stock Exchange :8087
Furusato Industries, Ltd.
2Copyright© Furusato Industries, Ltd. All Rights Reserved
1. Group Overview
2. Financial Results
3. Earnings Forecast
4. Non-consolidated Results
Copyright© Furusato Industries, Ltd. All Rights Reserved
33,85431.4%
Equipment and Tools
Seg.
3
FY2018
Construction and Piping Products Seg.
Steel Frame
Building Supplies
PipingProducts
Machine and Facility Seg.
Machine Tool
Factory
Automation
IndustrialEquipment
HousingEquipment
Overseas・Other
Machine and Tools
for Automotive
Steel fabricatorHouse manufacturer
Piping contractor
Subcontractor
Manufacturer
ConsumerNewly-built・remodeling
Local manufacturer(Overseas)Stores(Security)
Automotive
manufacturer
User
Machine& toolsdealers
Machine& toolsdealers
BuilderRemodelingcontractor
Agent
Constructor
26,83024.9%
7,0246.5%
24,14522.4%
49,87346.2%
Net sales% of total sales
107,873/100%
1,92847.7%
68517.0%
1,29732.1%
Op. income% of total sales
4,040/100%
20,56519.1%
3,5803.3%
37,05534.4%
5,2754.9%
7960.7%
6,7456.3%
Security 2,645
*FY2018 Unconsolidated
Telecom, security,building management company
248
Business StructureRounded down to the nearest million yen
Furusato
G-net
Gifu Shoji
Security
Design
Unconsolidated company:Retra Engineering (Thailand) Co., Ltd., Suzhou Retra Co., Ltd.,
Retra Engineering (Vietnam) Co., Ltd., Robot Technical Center CO., LTD.
[Established] China/Suzhou(2012) Thailand/Bangkok(2012)Vietnam/Ho Chi Ming(2018)
RTC Hyogo(Nishinomiya-city) RTC Tokyo(Ota-ku)
Company Overview
[Headquarters] Chuo-ku, Osaka-city/Ota-ku, Tokyo
[Bases] 51(Sales Base)10(Production Base)2(Distribution Base)
[Employees] 1,083(Consolidated)520(Non-consolidated)
[Established] 1959 [Capital] ¥5,232M
[Listed] Tokyo 1st [Fiscal Year End] March
[Headquarters] Chuo-ku, Osaka-city
[Branch] Tokyo(Ota-ku), Nagoya(Naka-ku), Osaka(Chuo-ku)
[Bases] 46(Sales Base) 3(Distribution Base)
[Employees] 419(Non-consolidated)[Established]1947 [Capital]¥420M
[Headquarters] Gifu-city
[Bases] 3 Kariya Branch, Hamamatsu Branch, Kita-kyushu subbranch
[Employees] 66(Non-consolidated) [Established]1934 [Capital] ¥10M
[Headquarters] Minato-ku, Tokyo[Bases] 6 Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka[Employees] 78(Non-consolidated)[Established] 1999 [Capital] ¥100M
Copyright© Furusato Industries, Ltd. All Rights Reserved 4
Local company
Retra
Consolidated company
Consolidated company
Consolidated company
Robot Technical Center
Furusato Group Overview
Unconsolidated
Company Business Business overview Operating structure
Building SuppliesSales of hardware for buildings, fastening products, welding supplies, machine & tools, consumables, etc.
Direct sales to steel fabricators
Piping ProductsSales of pipes, pipe fittings, valves, machine and tools, fastening products, etc.
Direct sales to piping contractors
Industrial Equipment
Sales of consumable tools, built-in tools, physical distribution machine, facility equipment, consumables, etc.
Wholesale to machine and tools dealers
Machine ToolSales of machine tools, industrial robots, etc.
Wholesale to machine dealers
Factory Automation
Sales of machine tools, industrial robots, specialized machine, etc. Direct sales to suppliers
Housing Equipment
Sales of kitchens, baths, wash rooms, toilets, boilers, etc.
Wholesale to hosing equipment dealers
Machine and Tools for Automotive
Sales of cutting tools, die-related tools, machine tools, etc.
Direct sales to automotive industry
SecurityIntroduction of crime prevention monitoring system and access control service, sales of security devices
Direct sales to telecom, security and building management companies
Copyright© Furusato Industries, Ltd. All Rights Reserved 5
Sales of cutting tools, machine tools & peripherals, equipment for production line automation, purchasing from local companies, exports to Japan
Direct sales to local Japanese companies and local companies
Providing test trial, consulting and operator training for industrial robotic systems
For companies that have already introduced or are considering to introduce robots
Furusato Group Overview
Local company
Retra
Robot Technical Center
Copyright© Furusato Industries, Ltd. All Rights Reserved 6
1. Group Overview
2. Financial Results
3. Earnings Forecast
4. Non-consolidated Results
Copyright© Furusato Industries, Ltd. All Rights Reserved 7
Net sales✓ ¥25,094M +¥429M, +1.7% YoY✓ Over ¥25B for the first time in Q1 due to
consolidation of Security Design
Gross profit✓ ¥3,724M +¥333M, +9.8% YoY✓ Gross profit margin +1.1P YoY
SG&A ✓ ¥2,935M +¥219M, +8.1% YoY✓ Increase in personnel expenses and depreciation
and amortization, amortization of goodwill, etc.
Operating income✓ ¥788M +¥113M, +16.8% YoY
Q1 FY18 Financial Results Summary
Copyright© Furusato Industries, Ltd. All Rights Reserved 8
(Millions of yen) Q1 FY18 Q1 FY19YoY
%
Q2 FY19
ForecastProgress
%
Net sales 24,665 25,094 +1.7% 53,100 47.3%
Gross profit 3,391 3,724 +9.8% 7,800 47.7%
SG&A 2,716 2,935 +8.1% 5,900 49.8%
Operating income 674 788 +16.8% 1,900 41.5%
Ordinary income 800 893 +11.6% 2,100 42.6%
Net income attributable to owners of parent 500 576 +15.2% 1,370 42.1%
● Net sales: +¥429M due to the addition of Security Business from Q1 FY19(¥500M)
● Gross profit: Security Business high margin, Machine & Tools Seg. + 1.3P
● SG&A : Equipment & Tools Seg. +17.4%, Security Business added
● Operating income: Equipment & Tools Seg., Machine & Facility Seg. down, Construction and Piping Products Seg. + 44.6%
P/L (Consolidated)
△176
Machine &
Facility Seg.
+29
Equipment &
Tools Seg.
Copyright© Furusato Industries, Ltd. All Rights Reserved 9
Net Sales by Segment
Q1 FY18 Q1 FY19 YoY YoY%
Equipment &Tools
Industrial Equipment 9,052 8,398 (653) (7.2)%
Machine & Tools For Automotive
1,547 1,863 +315 +20.4%
Housing Equipment 1,259 1,314 +54 +4.3%
Security - 500 +500 -
Other 240 54 (186) (77.5)%
Total 12,100 12,130 +29 +0.2%
Machine &Facility
Machine tool 4,009 4,045 +36 +0.9%
Factory Automation 656 444 (212) (32.3)%
Total 4,666 4,489 (176) (3.8)%
Construction & Piping
Building Supplies 6,217 6,828 +611 +9.8%
Piping Products 1,681 1,646 (35) (2.1)%
Total 7,898 8,474 +576 +7.3%
Consolidated total 24,665 25,094 +429 +1.7%
+576
Construction &
Piping
Products Seg.
25,094
Q1 FY18 Q1 FY19
24,665
+429
Rounded down to the nearest million yen
△158
+58
Copyright© Furusato Industries, Ltd. All Rights Reserved 10
Changes in Operating Income by Factor
788
Q1 FY18 Q1 FY19
674
+113
+274 +15
△76
Sale
s Change
(Incre
ase
)
Change in
sale
s mix
Cost re
ductio
n, e
tc.
Sellin
g E
xpense
s
Perso
nnel e
xpense
s
Genera
l &
adm
inistra
tive e
x.
and o
thers
(+16.8%)
3.1%2.7%
Rounded down to the nearest million yen
Q1 FY18 Q2 Q3 Q4 Q1 FY19 YoY
Net sales 12,100 12,182 12,853 12,736 12,130 +0.2%
Industrial equipment 9,052 9,040 9,598 9,363 8,398 -7.2%
Machine and Tools For Automotives 1,547 1,678 1,634 1,885 1,863 +20.4%
Housing Equipment 1,259 1,270 1,406 1,338 1,314 +4.3%
Security 500 -
Other 240 192 213 148 54 (77.5)%
Copyright© Furusato Industries, Ltd. All Rights Reserved 11
Equipment and Tools Segment
234
363 326
373
210
0
100
200
300
400
500
600
700
Q1 FY18 Q2 Q3 Q4 Q1 FY19
Operating Income
(△10.2%)[Factors behind the decline]
・ Gross profit +12.5%
・ SG&A +17.4%
Rounded down to the nearest million yen
Rounded down to the nearest million yen
Copyright© Furusato Industries, Ltd. All Rights Reserved 12
Machine & Facility Segment
57 102
311
213
53
0
100
200
300
400
500
600
700
Q1 FY18 Q2 Q3 Q4 Q1 FY19
Operating Income(△8.1%)
Q1 FY18 Q2 Q3 Q4 Q1 FY19 YoY
Net sales 4,666 5,896 7,619 5,963 4,489 (3.8)%
Machine tool 4,009 4,929 6,499 5,127 4,045 +0.9%
Factory Automation 656 967 1,120 836 444 (32.3)%
[Factors behind the decline]
・ Net sales △3.8%
・ No change in margin
Rounded down to the nearest million yen
Rounded down to the nearest million yen
194,388 194,217 172,383 142,378 123,934
-36.2%
277,212 250,763 234,363
223,429 192,183 -30.7%
0
100,000
200,000
300,000
400,000
500,000
Q1FY18
Q2 Q3 Q4 Q1FY19
Orders Received for Machine Tool(Japan Machine Tool Builders Association)
Overseas
demand
Domestic
demand
Copyright© Furusato Industries, Ltd. All Rights Reserved 13
Machine & Facility Segment
(△33.0%)
YoY Q1 FY18 Q2 Q3 Q4 Q1 FY19
Machine tool(Orders received) (4.4)% +32.4% (19.4)% (18.8)% (29.7)%
Machine Tool(Backlog) +58.6% +92.6% +31.0% +5.9% (7.9)%
Factory Automation (Orders received) +11.1% (12.3)% (5.5)% (16.4)% (45.8)%
Factory Automation(Backlog) +74.9% +30.5% (30.3)% (31.1)% (38.6)%
Rounded down to the nearest million yen
Rounded down to the nearest million yen
Copyright© Furusato Industries, Ltd. All Rights Reserved 14
351
508 623
444 508
0
200
400
600
800
1,000
Q1 FY18 Q2 Q3 Q4 Q1 FY19
Operating Income(+44.6%)
Q1 FY18 Q2 Q3 Q4 Q1 FY19 YoY
Net sales 7,898 8,598 9,153 8,205 8,474 +7.3%
Building Supplies 6,217 6,836 7,347 6,430 6,828 +9.8%
Piping Products 1,681 1,762 1,805 1,775 1,646 (2.1)%
[Factors behind the increase]
・ Net sales +7.3%
・ Gross profit margin +0.6P
Construction & Piping Products Segment
Rounded down to the nearest million yen
Rounded down to the nearest million yen
87,000
87,000
89,000 89,000 89,000
50,000
60,000
70,000
80,000
90,000
100,000
Q1
FY18
Q2 Q3 Q4 Q1
FY19
Steel Product Price
Copyright© Furusato Industries, Ltd. All Rights Reserved 15
YoY Q1 FY18 Q2 Q3 Q4 Q1 FY19
(Product A) Sales +9.0% +9.3% +9.8% +11.1% +0.6%
Volume +0.3% +0.5% +1.2% +1.8% (5.2)%
Ave. Unit price +7.5% +8.1% +8.4% +9.0% +6.2%
(Product B) Sales +9.4% +21.3% +11.4% +37.5% +44.0%
Volume +7.4% +15.9% +2.9% +19.4% +17.0%
Ave. Unit price +1.8% +4.7% +8.0% +15.2% +23.0%
1,347,662 1,356,566 1,266,727 1,106,972 1,217,369
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Q1
FY18
Q2 Q3 Q4 Q1
FY19
Steel Frame UsedUnit: tons Unit: yen/ton
Construction & Piping Products Segment
Rounded down to the nearest million yen
Investing activities
△209
Operating activity+860
Copyright© Furusato Industries, Ltd. All Rights Reserved 16
Cash Flows
Cash flow from operations Cash flow from investing Cash flow from financing
Income before income taxes
+893 Purchases of property, plant and equipment
(179) Repayment of long-term debt
(25)
Depreciation &amortization
+155 Other (29) Dividend per share
(765)
Provision for bonuses
+321 Other (0)
Decrease in accounts receivable
+3,214
Increase in inventory assets
(366)
Decrease in notes and accounts payable
(2,423)
Income taxes paid
(1,027)
Other +94
Total +860 Total (209) Total (791)
Financing activities
△791 13,065
Beginning Year-end
13,056
+8Increase due
to new consolidation
+148
Rounded down to the nearest million yen
Copyright© Furusato Industries, Ltd. All Rights Reserved 17
1,663 1,710
1,157 1,193
1,000
392 533
666 611 630
0
500
1,000
1,500
2,000
FY15 FY16 FY17 FY18 FY19 Plan
Business Investment Depreciation & Amortization
FY15 FY16 FY17 FY18 FY19 plans
BusinessInvestment
1,663
・ New Shiga Plant(Buildings, Machines)
・ Facilitiesrenewal atbranches
1,710
・ New productionsystem
・ Shiga PlantFacilities
・ Facilitiesrenewal atbranches
1,157
・ G-NET Nagoya・ New production
system・ Facilities
renewal atbranches
1,193
・ G-NET Nagoya・ Gifu Shoji
Headquarters・ Facilities renewal
at branches
1,000
・ Shiga Plant Ⅱ・ Gifu Shoji
Headquarters・ Facilities
renewal atbranches
Depreciation &amortization
392 533 666 611 630
Business InvestmentDepreciation & Amortization
Rounded down to the nearest million yen
Rounded down to the nearest million yen
Copyright© Furusato Industries, Ltd. All Rights Reserved 18
166.69 161.06 159.44
199.57 203.50
50.50 48.50 48.00 60.00 61.50
0.00
50.00
100.00
150.00
200.00
250.00
FY15 FY16 FY17 FY18 FY19 Forecast
EPS Dividends
FY15 FY16 FY17 FY18 FY19 Forecast
EPS 166.69 161.06 159.44 199.57 203.50
Dividends 50.50 48.50 48.00 60.00 61.50
Share price(Fiscal year-end)
1,685 1,687 1,825 1,612 1,414*
Unit: yen
Unit: yen
* : Stock price at Q1E
Returns to shareholders
Copyright© Furusato Industries, Ltd. All Rights Reserved 19
1. Group Overview
2. Financial Results
3. Earnings Forecast
4. Non-consolidated Results
Copyright© Furusato Industries, Ltd. All Rights Reserved 20
Basis of FY19 Earnings Forecast
Business Environment Forecast⚫ Industrial Production;Flat~slightly up
⚫ Domestic automotive demand;Slightly down~flat
⚫ New construction starts of houses;Single-digit decrease
⚫ Orders received for machine tools;Double-digit decrease(Forecast by Japan Machine Tools Builders Association ▲11.9%)
⚫ Steel frame used for buildings;Flat~slightly up*Towards end of demand for Tokyo Olympic Games
⚫ Trends before and after consumption tax hike;Unpredictable, uncertain
876 948 941 988
1,078 1,080
32 35 31 3140 40
2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3
Consolidated net sales
Consolidate operating income
Current plan Next plan
*~2019/3 Actual results
Aiming to achieve the goal of a mid-term management plan amid uncertain business environment
2020/3
Net sales ¥108BOp. income ¥4B
Copyright© Furusato Industries, Ltd. All Rights Reserved 21
Earnings Forecast (Consolidated)
(Millions of yen) H1YoY% H2
YoY%
FULL
YEARYoY
%
Net sales 53,100 +3.4% 54,900 (2.9)% 108,000 +0.1%
Gross profit 7,800 +7.8% 8,100 +2.9% 15,900 +5.2%
SG&A 5,900 +6.2% 6,000 +8.9% 11,900 +7.5%
Operating income 1,900 +13.3% 2,100 (11.1)% 4,000 (1.0)%
Ordinary income 2,100 +11.6% 2,300 (9.3)% 4,400 (0.4)%
Net income attributable to owners of parent 1,370 +10.8% 1,580 (4.6)% 2,950 +2.0%
Aiming to YoY growth of net income targeting the goal of a mid-term management plan
Copyright© Furusato Industries, Ltd. All Rights Reserved 22
Earnings Forecast (Consolidated)
Equipment & Tools Segment
(Millions of yen) H1YoY% H2
YoY%
FULL
YEARYoY
%
Net sales 26,000 +7.1% 26,600 +3.9% 52,600 +5.5%
Industrial Equipment 18,400 +1.7% 18,700 (1.4)% 37,100 +0.1%
Machine and Toolsfor Automotive 3,300 +2.3% 3,480 (1.1)% 6,780 +0.5%
Housing Equipment 2,500 (1.2)% 2,600 (5.3)% 5,100 (3.3)%
Security 1,650 - 1,650 - 3,300 -
Others 150 (65.4)% 170 (53.1)% 320 (59.8)%
Gross profit 3,290 +17.8% 3,390 +16.0% 6,680 +16.9%
SG&A 2,600 +18.4% 2,600 +17.0% 5,200 +17.7%
Operating income 690 +15.4% 790 +12.9% 1,480 +14.1%
Sales & income growth due to inclusion of Security Business
Copyright© Furusato Industries, Ltd. All Rights Reserved 23
(Millions of yen)H1
YoY% H2
YoY%
FULL
YEARYoY
%
Net sales 10,300 (2.5)% 10,900 (19.9)% 21,200 (12.2)%
Machine Tools 8,700 (2.7)% 9,000 (22.6)% 17,700 (13.9)%
Factory Automation 1,600 (1.5)% 1,900 (2.9)% 3,500 (2.2)%
Gross profit 830 (0.9)% 870 (19.8)% 1,700 (11.6)%
SG&A 550 (18.8)% 550 (1.8)% 1,100 (11.1)%
Operating income 280 +74.2% 320 (39.0)% 600 (12.4)%
Sales & income decrease due to deteriorating business environment
Earnings Forecast (Consolidated)
Machine & Facility Segment
Copyright© Furusato Industries, Ltd. All Rights Reserved 24
(Millions of yen) H1YoY% H2
YoY%
FULL
YEARYoY
%
Net sales 16,800 +1.8% 17,400 +0.2% 34,200 +1.0%
Building Supplies 13,200 +1.1% 13,800 +0.2% 27,000 +0.6%
Piping Products 3,600 +4.5% 3,600 +0.5% 7,200 +2.5%
Gross profit 3,680 +2.1% 3,840 (0.7)% 7,520 +0.7%
SG&A 2,750 +0.2% 2,850 +1.9% 5,600 +1.1%
Operating income 930 +8.1% 990 (7.3)% 1,920 (0.4)%
Building Supplies flat, Piping Products up
Earnings Forecast (Consolidated)
Construction & Piping Products Segment
Copyright© Furusato Industries, Ltd. All Rights Reserved 25
1. Group Overview
2. Financial Results
3. Earnings Forecast
4. Non-consolidated Results
26
(Millions of yen) Q1 FY19 YoYYoY%
Net sales 8,477 +575 +7.3%
Gross profit 1,912 +175 +10.1%
SG&A 1,404 +18 +1.3%
Operating income 508 +156 +44.6%
Ordinary income 550 +111 +25.5%
Net income 365 +95 +35.1%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated Results-Furusato
27
(Millions of yen) Q1 FY19 YoYYoY%
Net sales 14,566 (1,050) (6.7)%
Gross profit 1,333 (72) (5.2)%
SG&A 1,172 (34) (2.8)%
Operating income 161 (38) (19.2)%
Ordinary income 213 (37) (15.1)%
Net income 132 (26) (16.5)%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated Results-G-net
28
(Millions of yen) Q1 FY19 YoYYoY%
Net sales 1,863 +315 +20.4%
Gross profit 270 +24 +9.9%
SG&A 155 +2 +1.4%
Operating income 114 +22 +23.9%
Ordinary income 138 +29 +27.1%
Net income 90 +19 +27.7%
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated Results-Gifu Shoji
29
(Millions of yen) Q1 FY19
Net sales 502
Gross profit 207
SG&A Ex. 206
Operating income 0
Ordinary income 5
Net income 2
Copyright© Furusato Industries, Ltd. All Rights Reserved
Non-consolidated Results-Security Design
30Copyright© Furusato Industries, Ltd. All Rights Reserved
This material contains forward-looking statements that reflects Furusato’s plans and expectations. These forward-looking statements are based on information currently available and a rational evaluation based on certain assumptions that may cause Furusato’s future results to be materially different from any future results expressed or implied by these forward-looking statements due to a number of factors including change of business environment, market trend and others.
Corporate Planning Dept.
TEL :06-6946-9621
FAX :06-6946-1934
E-mail :[email protected]
Furusato Industries, Ltd.
31Copyright© Furusato Industries, Ltd. All Rights Reserved
Group Initiatives
Copyright© Furusato Industries, Ltd. All Rights Reserved 32
Initiatives for growth
Steel Frame Building Supply BusinessSecuring earnings by developing original unique products
Construction method of exposed-type fixed column baseFree Base
⚫ In-house development based on a different approach from other construction method of exposed-type fixed column base
⚫ Benefiting for both designers and clients
⚫ Ensuring high quality by providing supplies and construction work
Laser blast method Laser KEREN
⚫ Devise to remove rust and old coating film by laser irradiation
⚫ Realize small-size, high-efficiency, high-output with special structures
⚫ Diverse applications in steel structures, repair of bridges, construction of large infrastructure
Brace cover series
⚫ Cover series to enhance the design and safety of turnbuckle braces
⚫ Made of resin; easy to install, color selection available
⚫ Winning a Good Design Award, changing image of Furusato group
Copyright© Furusato Industries, Ltd. All Rights Reserved 33
Piping Products BusinessRationalizing by improving work efficiency through sharing specialized works
Problems
Specialized knowledge is required to cover a wide range of piping products
Sales representatives with specialized knowledge cover all tasks from taking orders, inquiries and other administrative processes
This photo is for illustrative purpose.
Establishing a contact center
⚫ Operation center specializing in piping products
⚫ Covering some piping products sales offices
⚫ Easy to build and share expertize
⚫ Lowering employee turnover and utilizing skilled workers
April 2019 Seibu Contact Center established(Kita-Kyushu-shi)⇒Aiming to expand in other regions
Initiatives for growth
Copyright© Furusato Industries, Ltd. All Rights Reserved 34
Factory Automation BusinessEarly establishment of robotic system integrator business
⚫ Enhancing recognition as a trading company with engineering function
⚫ Establishing SIer network Establishing 7 blocks nationwide
⚫ Acquiring projects through PR to RTC trainees, our potential users
SIer
Supplier (manufacturer)➢ Robot➢ Machine・Facility➢ Equipment
Business Model
Supplier
G-net
User
User➢ SMMs→Lack or weakness
in Productiontechnology functions
RTC
Introduction
ServiceClient info.
・Operator Training・Consulting・Trial
Trainees
Strategy
⚫ Establishing production system;Nationwide 7-block SIercollaboration system
⚫ Targeting marketing;Trainee information, exhibitions, sales support tool
⚫ Division of works;G-net covers previous and following processes, SIer can concentrate manufacturing
⚫ Overseas;Local company of users, possible to cover in Japan
*SIer:System integrator
*RTC:Robot technical Center
Design, manufac
turing
Business Relationship
Proposal-style salesConceptual Design
QuotationAdjustment
install
Risk
⚫ Trends in government subsidies⚫ State of business succession among SMMs⚫ Operating state of installed systems=Skills of SIer
Initiatives for growth
Copyright© Furusato Industries, Ltd. All Rights Reserved 35
Security Business Business expansion as a security system integrator
Project sales
⚫ Specialized in handling of physical security for offices, key facilities, etc.
⚫ Providing world-leading and global standard solutions
⚫ Providing comprehensive services from design to operation after installing the system as a system integrator
Initiatives for growth
Copyright© Furusato Industries, Ltd. All Rights Reserved 36
Supplier(Manufacturer)➢ Camera➢ Security system➢ Equipment
Business model
Security Design
User➢ Plant➢ Office➢ Shop➢ School, etc.
Delivery
・Introduction of systems of western countries・Security SIer・Comprehensive service Design~Maintenance
Supplier
Project
User
Strategy
⚫ Leading-edge solution;LENEL system(USA) etc.⚫ Reinforcing service function;S-DOC(help-desk, support center)⚫ Expanding market;Business base development
(7 bases→ongoing development)⚫ Company structure;Establishing an appropriate structure as a
subsidiary of the listed company
Risk
⚫ Trends in government-affiliated brand in China
⚫ Demand trend after Tokyo Olympic Games
⚫ Recruiting human resources
Business model of Security Design
Product・Service
Telecom
company,
etc.
Security
company,
etc.
Initiatives for growth
Copyright© Furusato Industries, Ltd. All Rights Reserved 37
Renovation of workplace environmentGrowth strategy to secure earnings by securing outstanding talents and improving productivity
Purposes
⚫ Increasing the number of applicants and securing the number of recruits
⚫ Reducing avoidable turnover and preventing outflows of talents
⚫ Realizing both reduction of working hours and growth of Furusato Group
Revising salary levels
• Appealing to applicants
• Preventing turnover by improving working conditions of younger Employees
Launching telework
• Realizing diverse working styles
• Effective use of private time
Career path support
• Group-wide FA system and job posting system
• Maximizing each capabilities through optimization
Improving working environment
• Remodeling offices ongoing
• Organizing environment matched with quality and performance of the company
Lunching RPA
• Reducing workload through automation
• Promoting accuracy and speed of work
Trial use of AI
• Testing application of AI
• Continuing research including usage scenes
Initiatives for growth