Kajima Corporation · TSE:1812

Kajima — H1 FY2018 Earnings Presentation

24 slides from Kajima's earnings presentation, Nov 13, 2018

1. Slide 1: FY2018 First Half Financial Results

   FY2018 First Half Financial Results November 13, 2018

2. Slide 2: FY2018 First Half Results / FY2018 Forecast

   Ⅰ FY2018 First Half Results 01 Ⅱ FY2018 Forecast 13 Copyright Ⓒ 2018 KAJIMA CORPORATION All Rights Reserved.

3. Slide 3: FY2018 First Half Results

   Ⅰ FY2018 First Half Results (April 1 - September 30, 2018) 1. Business Environment 2. Financial Highlights 3. Segment Performance Copyright Ⓒ 2018 KAJIMA CORPORATION All Rights Reserved.

4. Slide 4: Business Environment

   Ⅰ FY2018 First Half Results 1. Business Environment Domestic market trends  Stable construction demand mainly due to high level capital investments in private sector  Limited increase in construction costs Progress of our measures  Go on pursuing rationalization of construction and improvement of

5. Slide 5: Financial Highlights

   Ⅰ FY2018 First Half Results 2. Financial Highlights Lower profit than FY17 1H. Good progress toward the initial full-year forecast FY18 FY17 1H FY18 1H YoY Change Progress Initial Result Result forecast Revenues 822.7 897.7 +75.0 44.9% 2,000.0 Operating Income 76.8 60.6 (16.1) 56.1% 108.0 Ordinary I

6. Slide 6: Revenues

   Ⅰ FY2018 First Half Results 2. Revenues FY17 1H FY18 1H YoY Change Result Result Revenues 822.7 897.7 +75.0 1,000 JPY bil 800 YoY Change Factors 327.4 299.4  Building 600 Construction +62.4 (Kajima Corp) 400  Overseas +24.9 523.2 570.3 200 0 FY17 1H FY18 1H Kajima Corp Subsidiaries Copyright Ⓒ 201

7. Slide 7: Operating Income

   Ⅰ FY2018 First Half Results 2. Operating Income FY17 1H FY18 1H YoY Change Result Result Operating 76.8 60.6 (16.1) Income 100 JPY bil 80 YoY Change Factors 8.5  Gross Profit 60 8.6 (13.1) (Construction) 40  Gross Profit +1.2 68.3 (Real Estate and other) 51.9 20  Increase in (4.2) SG&A 0 FY17 1H

8. Slide 8: Ordinary Income

   Ⅰ FY2018 First Half Results 2. Ordinary Income FY17 1H FY18 1H YoY Change Result Result Ordinary 84.3 72.1 (12.2) Income 100 JPY bil 80 8.0 YoY Change Factors 8.5  Operating 60 (16.1) Income  Non-operating 40 76.3 Income – net +3.9 63.5 Reversal of allowance for +2.2 20 doubtful accounts Equity in

9. Slide 9: Net Income Attributable to Owners of the Parent

   Ⅰ FY2018 First Half Results 2. Net Income Attributable to Owners of the Parent FY17 1H FY18 1H YoY Change Result Result Net Income 64.3 54.5 (9.8) * Net Income Attributable to Owners of the Parent 80 JPY bil YoY Change Factors 60 8.9 5.9  Ordinary (12.2) Income 40  Extraordinary Income - net (1.2)

10. Slide 10: Civil Engineering (Kajima Corp)

    Ⅰ FY2018 First Half Results 3. Civil Engineering (Kajima Corp) Contracts  Decrease due to fewer contract awards of large-scale projects Revenues  Decrease due to decline in overseas projects Gross Profit  Higher margin than FY18 initial forecast ■ Contract Awards ■Revenues ■ Gross Profit 250 200

11. Slide 11: Building Construction (Kajima Corp)

    Ⅰ FY2018 First Half Results 3. Building Construction (Kajima Corp) Contracts  Decrease due to fewer contract awards of large-scale projects Revenues  Contribution from large-scale projects  Higher-than-expected margin by pursuing improvement of productivity and cost Gross Profit reduction as well

12. Slide 12: Real Estate and Other (Kajima Corp)

    Ⅰ FY2018 First Half Results 3. Real Estate and Other (Kajima Corp) Contracts Revenues  Increase due to disposition of owned assets to Kajima private REIT Gross Profit ■Contract Awards ■Revenues ■ Gross Profit 40 30 6 JPY bil JPY bil JPY bil 19.2% 16.9% 16.7% 24.0 5 30.7 4.6 30 24.6 25.5 20 17.6 18.

13. Slide 13: Domestic Subsidiaries and Affiliates

    Ⅰ FY2018 First Half Results 3. Domestic Subsidiaries and Affiliates Contracts  Decrease due to fewer contract awards of large-scale projects Revenues  Increase mainly due to sell of materials and equipment in Metro-Tokyo area Ordinary  Equivalent level to FY17 1H Income ■Construction Contract Awa

14. Slide 14: Overseas Subsidiaries and Affiliates

    Ⅰ FY2018 First Half Results 3. Overseas Subsidiaries and Affiliates Contracts  Increase due to the effect of M&A and contract awards of large-scale projects Revenues  Increase mainly due to the effect of M&A Ordinary  Jump due to increase in revenues, improvement of margin and disposition of asse

15. Slide 15: FY2018 Forecast

    Ⅱ FY2018 Forecast (April 1, 2018 - March 31, 2019) 1. Business Environment 2. Financial Highlights 3. Segment Performance 4. Dividend Copyright Ⓒ 2018 KAJIMA CORPORATION All Rights Reserved.

16. Slide 16: Business Environment and Corporate Strategies

    Ⅱ FY2018 Financial Forecast 1. Business Environment Domestic market outlook  Stable construction demand mainly supported by capital investments in private sector  Concern of cost escalation along with progress of large-scale projects mainly in Metro-Tokyo area Corporate strategies  Reinforce crea

17. Slide 17: Financial Highlights (Forecast)

    Ⅱ FY2018 Financial Forecast 2. Financial Highlights Updated based on 1H result and business condition FY18 FY18 Change FY17 Initial Updated YoY Change from Initial Result Forecast Forecast Forecast Revenues 1,830.6 2,000.0 1,960.0 +129.3 (40.0) Operating Income 158.3 108.0 120.0 (38.3) +12.0 Ordinar

18. Slide 18: Civil Engineering (Kajima Corp) Forecast

    Ⅱ FY2018 Financial Forecast 3. Civil Engineering (Kajima Corp) Contracts  Same as initial forecast Revenues  Equivalent to initial forecast Gross Profit  Unchanged from initial forecast based on the first half result ■Contract Awards ■Revenues ■Gross Profit 400 400 100 21.2% JPY bil JPY bil 366.5

19. Slide 19: Building Construction (Kajima Corp) Forecast

    Ⅱ FY2018 Financial Forecast 3. Building Construction (Kajima Corp) Contracts  Upward based on business condition Revenues  Same as initial forecast  Upward based on first half result and condition of backlog Gross Profit  Equivalent to FY17 ■Contract Awards ■Revenues ■Gross Profit 1,000 1,000 15

20. Slide 20: Real Estate and Other (Kajima Corp) Forecast

    Ⅱ FY2018 Financial Forecast 3. Real Estate and Other (Kajima Corp) Contracts  Same as initial forecast Revenues  Upward based on first half result Gross Profit  Unchanged from initial forecast ■ Contract Awards ■Revenues ■Gross Profit 60 60 15 JPY bil JPY bil JPY bil 51.5 50.0 50.0 50.0 19.6% 18.

21. Slide 21: Domestic Subsidiaries and Affiliates Forecast

    Ⅱ FY2018 Financial Forecast 3. Domestic Subsidiaries and Affiliates Contracts Revenues  Equivalent to initial forecast Ordinary Income ■ Construction Contract Awards ■Revenues ■Ordinary Income 250 400 383.9 384.7 20 19.4 JPY bil JPY bil 366.7 JPY bil 210.3 16.5 16.0 200 186.8 185.0 300 15 150 200 1

22. Slide 22: Overseas Subsidiaries and Affiliates Forecast

    Ⅱ FY2018 Financial Forecast 3. Overseas Subsidiaries and Affiliates Contracts  Equivalent to initial forecast Revenues  Downward due to delay of construction starts and unfavorable exchange rates Ordinary  Equivalent to initial forecast Income ■Construction Contract Awards ■Revenues ■Ordinary Inc

23. Slide 23: Dividend

    Ⅱ FY2018 Financial Forecast 4. Dividend Unchanged from initial forecast FY18 FY18 FY16 FY17 Initial Updated Result Result Forecast Forecast Dividend per Share 20.00 24.00 24.00 24.00 Basic Net Income 101.01 122.14 79.00 93.46 per Share Payout Ratio 19.8％ 19.6％ 30.4% 25.7% The Company consolidated it

24. Slide 24: Inquiries and Disclaimer

    Inquiries: Corporate Communication Group, Corporate Planning Department E-Mail ： ir@ml.kajima.com Disclaimer: All financial information has been prepared in accordance with generally accepted accounting principles in Japan. While every attempt has been made to ensure the accuracy of information, for

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