Expanding Sales Channels Through Localization and Partnerships in Overseas Business

「Next, overseas, we will focus on North America and Europe as growth drivers and strengthen products and sales systems that address the needs of each region as a global manufacturer.」

「Overseas operations have larger markets and greater growth potential than the domestic business. Although we have sought to expand performance through M&A and other measures, strengthening the sales structure and, ultimately, expanding market share remain works in progress and are major challenges going forward.」

「Next, overseas, we will seek to develop markets by deploying products and personnel at our 3 bases in the United States, Europe and Asia. United States: strengthen functions by relocating and expanding the headquarters of Okada America, Inc., and maximize the integration benefits with Okada Midwest, Inc. Europe: deploy local personnel and products for major European countries. Asia: expand horizontally across markets products for emerging countries developed by the Thai joint venture.」

「While seeking to further strengthen the competitiveness of its core hydraulic breakers, the company aims to establish its brand by introducing crusher models for overseas markets and to become part of the global Tier 1 group of demolition-attachment manufacturers.」

「Against this backdrop, under the policy of its long-term vision, VISION30, the Group focused in Japan on strengthening its production system, centered on increased production and higher productivity to meet currently solid demand for demolition and infrastructure construction. In overseas markets, which offer significant room for expansion, the Group worked to strengthen its sales structure in the United States, Europe and Asia, where it has established operations, while focusing on further sustainable growth and enhancing corporate value.」

「In North America, our main region, economic activity continued to progress steadily. Although revenue at subsidiary Okada America, Inc. declined due in part to delivery-schedule delays, sales at Okada Midwest, Inc., which was integrated into the management structure at the end of last year, contributed to revenue of ¥1,210.203 million, up 71.7% year on year.」

「Overseas markets offer substantial growth potential and are larger than the domestic market. Having expanded its business through M&A and other measures, the company will seek to maximize the integration benefits of Okada Midwest, Inc. in Chicago, USA, which was brought into the group through M&A last year, while focusing products and personnel on its three regions with bases, the United States, Europe and Asia, to accelerate market development.」

「As the recipient of the business transfer, the company established the new entity Okada Midwest, Inc. (Illinois, USA, a wholly owned subsidiary of Okada America, Inc.) and acquired businesses from 3 companies effective 22 December 2022 (US local time).」

「In North America, our main region, revenue was ¥1,387.980 million, up 19.8% year on year, as economic activity recovered steadily. In Europe, strengthening the distributor network amid favorable market conditions contributed to revenue of ¥562.666 million, up 50.6%. In Asia, revenue was ¥304.936 million, up 17.1%, due in part to increased sales to Taiwan, where the overall economy was strong. Sales performed steadily in the three priority regions.」

「In Europe, strengthening the distributor network amid favorable market conditions contributed to revenue of ¥351.872 million, up 95.6% year on year. In Asia, revenue was ¥142.111 million, down 11.4%, due to delays in delivery schedules caused by shipping issues and other factors.」

「The overseas segment posted sales of ¥2,771,780 thousand, up 37.2% year on year. In North America, its main region, economic activity recovered steadily and sales rose to ¥1,624,424 thousand, up 23.7% year on year. In Europe, the strengthened distributor network contributed to sales of ¥540,042 thousand, up 58.6%. In Asia, the introduction of products tailored to local needs proved effective, resulting in sales of ¥403,851 thousand, up 22.0%. The three main regions all performed steadily, while market development in the Middle East and Africa also contributed.」

「In our main region, North America, revenue was ¥1,158.507 million, up 29.3% year on year, as economic activity recovered steadily. In Europe, an expanded distributor network contributed to revenue of ¥373.705 million, up 60.4%, while in Asia, the launch of products tailored to local needs resulted in revenue of ¥260.477 million, up 20.8%. Sales performed steadily in the three key regions, and market development in the Middle East and Africa also contributed.」

「In North America, where economic measures are expected going forward, revenue increased only slightly to ¥579.009 million, up 1.4% year on year. Europe, where the distributor network is being expanded steadily, posted revenue of ¥179.849 million, up 78.1%, while Asia, where the incorporation of the Thai operation as a local subsidiary is under way, posted revenue of ¥160.309 million, up 46.9%.」

「In Europe, which was incorporated as a local subsidiary in January 2020, revenue was ¥340.524 million, up 10.6% year on year. In Asia, where difficult conditions continued in fiscal 2019, the launch of new products led to a recovery trend, with revenue of ¥331.016 million, up 10.3% year on year.」

「Overseas, in addition to the US subsidiary, the main pillar of our overseas operations, we strengthened our three-base structure by incorporating our largest market, Europe (the Netherlands), as a local subsidiary in January 2020, and establishing a base in Thailand, a proving ground for Southeast Asia, where future growth is expected, through the opening of a representative office in June 2019.」

「In Europe, which will begin full-scale operations following its incorporation as a local subsidiary in January 2020, we steadily expanded the sales network and increased revenue.」

「From the second-quarter consolidated accounting period, the newly established Okada Europe B.V. (the Netherlands) has been included in the scope of consolidation.」

「In North America, our main region, we steadily captured robust demand related to pipeline construction and other activity in the south by strengthening our sales capabilities. In Europe, where we are considering establishing a local subsidiary, we also continued to expand our sales network smoothly, resulting in higher sales in the United States and Europe.」

「As the second major strategy, the overseas strategy is advancing the establishment of a three-region structure and strengthening the overseas sales system by incorporating Europe as a local subsidiary and establishing a base in Southeast Asia.」

「The overseas segment grew steadily across North America, Asia and Europe as its locations and distributor network were expanded, posting sales of ¥2,473,697 thousand, up 17.6% year on year.」

「The overseas segment posted sales of ¥2,102,632 thousand, up 28.8% year on year, as sales at the U.S. subsidiary remained strong amid a recovery in rental demand, while Asia and Europe also grew steadily as the distributor network was expanded.」

「Overseas operations generated revenue of ¥1,525.585 million, up 34.8% from the same period of the previous year, as sales by the U.S. subsidiary remained strong amid a recovery in rental demand, while Asia and Europe also grew steadily due to the expansion of the distributor network.」

「From the first quarter of the current fiscal year, newly established OKADA International Co. (Korea) has been included in the scope of consolidation.」

「To expand overseas sales channels effectively, we will flexibly select regions where we will open bases and operate close to local markets, and regions where we will efficiently expand sales channels through partnerships with local distributors.」