Investor Relations

Message From the President

Koichi Tadano Koichi Tadano
President and CEO

To Our Stakeholders

I would like to express my gratitude to everyone for their continued support and am pleased to provide this brief outline of the operating environment, business activities and performance of the Tadano Group for the fiscal year ended March 31, 2018.


In the fiscal year under review, the Japanese economy saw private consumption remain steady with capital investment gradually increasing due to improved corporate earnings. Production and exports improved, and the economy recovered moderately. The European economy and the US economy continued to recover, and emerging markets continued to pick up on the whole. Meanwhile, uncertainties remain due to US-China trade friction, the North Korea problem, geopolitical risks in the Middle East, and other factors.

In our industry, business has been strong due to construction demand for the Tokyo Olympic and Paralympic Games, earthquake recovery and restoration, disaster prevention, measures to address deteriorating infrastructure and private sector construction investment. However, in addition to a lack of crane operators, demand declined due to delays in market penetration of our new model, which resulted in a higher selling price. Overseas, in addition to the recovery of Australia and Russia, North America was on a recovery trend toward the end of the year. Other regions declined, and demand overall remained unchanged.

During the fiscal year under review, sales in the Japanese market decreased slightly, while overseas sales declined. In addition to a decline in gross profit accompanying a decline in sales, sales declined for the first time in six quarters due to the effects of foreign exchange. In November 2017, we began construction of a new factory in Takamatsu city to expand our production capacity for long-term growth. We are planning to invest about 21 billion yen and to aim for to begin operations there in 2019.

Total sales in the Japanese market amounted to 97,551 million yen, down 4.6% from the previous fiscal year, as sales of mobile cranes decreased, truck loader cranes remained flat, and aerial work platforms increased. Our total sales outside of Japan amounted to 76,152 million yen (1.6% less than the previous fiscal year) as demand for our mainstay rough terrain crane decreased and we focused on stock business. As a result, total sales fell to 173,703 million yen (3.3% less than the previous fiscal year). Sales outside of Japan accounted for 43.8% of all sales.

Operating income amounted to 15,511 million yen (16.1% less than the previous fiscal year) and ordinary income was 14,907 million yen (19.4% down from the previous fiscal year) due to a decline in gross profit because of a drop in sales. Net income attributable to Tadano Ltd. totalled 9,391 million yen, down 21% from the previous fiscal year, with an extraordinary loss of 268 million yen related to affiliated companies in China.

In regards to our self report to the U.S. Environmental Protection Agency concerning the Transition Program for Equipment Manufacturers which we announced on January 19 this year, an investigation by a US law firm is in progress. If we find matters that are necessary to be disclosed in the future, we will make timely and appropriate disclosures as necessary. Tadano is currently selling only mobile cranes with engines meeting the most stringent exhaust requirements and we estimate that there will be no impact on our current business in North America. We apologize to our shareholders and other stakeholders for this matter, which might give rise to their concerns.

Outlook for the Next Term

Regarding the future economic outlook, in Japan personal consumption will pick up, production and exports will recover moderately, capital investment will increase due to improved corporate earnings, and the economy is expected to grow gradually. Overseas, while moderate economic recovery is expected concerns remain over uncertainties in the current environment (such as the US-China trade friction, the North Korean problem and geopolitical risks in the Middle East).

In terms of the market environment for the Tadano Group, in Japan, although utilization rates for mobile cranes remain high, a lack of operators has caused demand to flatten out, demand for truck loader cranes is expected to increase suddenly due to exhaust regulations for trucks on which loader cranes are generally mounted and demand for aerial work platforms is expected to decrease from the viewpoint of the demand cycle. Overseas, we expect demand to increase due to the recovery of crude oil and resource prices, and from the perspective of the demand cycle, we predict that demand will rise from here onward, after the bottoming out in 2017.

Mid-Term Management Plan (17–19)

2017 was the first year in the Tadano Group Mid-Term Management Plan (17–19), the basic policy of which is “Becoming a Stronger Company (Focusing on the Tadano Red Arrow).” Under this plan, we will implement Three Priority Points and Nine Strategies.

・"A Stronger Company" means being able to continuously generate profits and develop human resources year after year, regardless of the external business environment.

・At the Tadano Group, we focus on the Tadano Red Arrow (self-support efforts) in dealing with the Tadano Blue Arrow (the surrounding environment that we cannot control, i.e. the market [demand, exchange rates, etc.]). We believe that the addition of “Red Arrow” efforts and Tadano Yellow Arrow efforts (Investment efforts) to the Tadano Blue Arrow result in the Tadano Black Arrow (our business performance). This perspective serves as the background for the Mid-Term Management Plan (17–19), wherein we focus on “Red Arrow” efforts in order to become a stronger company.

・Three Priority Points:
  1) Further Global Growth (One Tadano, Breadth & Depth)
  2) Higher Resilience (Six Keys to Success)
  3) Enhanced Competitiveness (Being a Manufacturer with Four Synergistic Strengths)

・Nine Strategies:
  1) Improve Market Position
  2) Enhance Product Competitiveness
  3) Pursue Global and Flexible Monozukuri (i.e., manufacturing with a focus on continuous improvement)
  4) Provide Outstanding Quality & Service
  5) Improve Product Live-Cycle Value
  6) Develop Solution Business
  7) Raise Level of Profitability and Asset Efficiency
  8) Establish Growth Structure
  9) Strengthen the Tadano Group & Global Management Structure

In fiscal year 2018, we will; engage in second-year activities of the Mid-Term Management Plan (17-19), focus on the Tadano Red Arrow and engage in Tadano Yellow Arrow activities, prepare for and respond to Tadano Blue Arrow changes and escalating competition.

During the final year of Mid-Term Management Plan (17–19), Tadano will celebrate the 100th anniversary of its Founding (August 29, 1919).

The Tadano Group believes that a company can only exist successfully if it is in harmony with society and people. Therefore, we will contribute to the development of local and international societies, and promote business activities that help protect the global environment. We will also seek to maximize our corporate value in response to the expectations of all of our stakeholders. Simply stated, we will pursue further excellence for the world and the future.

We sincerely ask for your continued understanding and support.

June 2018

Koichi Tadano
President and CEO