Slide 1: Presentation on Financial Results FY2023
Obayashi Corporation PRIME 1802 Presentation on Financial Results FY2023 (April 1, 2023 to March 31, 2024) Disclaimer: This document has been translated from the Japanese original for reference purpose only. If there is any discrepancy between the Japanese original and this English translation, the
Slide 2: CEO Message: Recovery on performance
CEO Message Recovery on performance Addendum to Medium-Term Business Plan 2022 © OBAYASHI CORPORATION, All rights reserved. 2
Slide 3: INDEX
INDEX 1 FY2023 Results • Summary • Balance Sheets • Statements of Income • Operating Income • Orders Received 2 FY2024 Forecasts • Summary • Statements of Income (Forecasts) • Operating Income (Forecasts) • Orders Received(Forecasts) 3 Overview of Each Business • • Domestic Building Construction Bus
Slide 4: FY2023 Results
1 FY2023 Results • Summary • Balance Sheets • Statements of Income • Operating Income • Orders Received © OBAYASHI CORPORATION, All rights reserved. 4
Slide 5: Summary of FY2023 Results
1 FY2023 Results 2 3 4 Summary of FY2023 Results Valuation difference on available-for-sale Consolidated Equity ¥1,151.6 bln YoY +¥154.5 bln +15.5% securities increased YoY due to the significant increase in value of cross-shareholdings with the rise in stock prices Consolidated Remained the same le
Slide 6: Summary of FY2023 Results
1 FY2023 Results 2 3 4 Summary of FY2023 Results - Steady progress in both building construction and Consolidated ¥2,325.1 bln YoY +¥341.2 bln +17.2% civil engineering projects in hand Net sales vs plan +¥45.1 bln +2.0% - Foreign exchange impacted on the overseas construction Increased profits in th
Slide 7: Consolidated Balance Sheets
1 FY2023 Results 2 3 4 Consolidated Balance Sheets Increase in total assets: An increase in construction-related assets due to higher construction volume, and an increase in available-for-sale securities due to higher stock prices. Decrease in cash and deposits: The expenditures in advance in li
Slide 8: Statements of Income
1 FY2023 Results 2 3 4 Statements of Income (Billions of yen) Consolidated Non-consolidated FY2022 Results FY2023 Results YoY FY2022 Results FY2023 Results YoY Building 1,400.3 1,722.0 +321.6 1051.5 1,240.2 +188.6 Net sales of Completed construction Civil 447.3 484.7 +37.3 296.5 315.6 +19.0 contract
Slide 9: Change in Consolidated Operating Income
1 FY2023 Results 2 3 4 Change in Consolidated Operating Income FY2023 resulted in ¥79.3 billion exceeding the initial plan. Main positive impact is a significant improvement in profits from construction projects in hand at non-consolidated domestic civil engineering and in subsidiaries overseas
Slide 10: Orders Received
1 FY2023 Results 2 3 4 Orders Received (Billions of yen) Consolidated Non-consolidated FY2022 Results FY2023 Results YoY FY2022 Results FY2023 Results YoY Domestic 1,124.2 1,236.9 +112.7 1,093.1 1,194.8 +101.7 Building Overseas 488.5 520.3 +31.7 18.9 3.7 (15.1) Total 1,612.8 1,757.3 +144.4 1,112.0 1
Slide 11: FY2024 Forecasts
2 FY2024 Forecasts • Summary • Statements of Income (Forecasts) • Operating Income (Forecasts) • Orders Received (Forecasts) © OBAYASHI CORPORATION, All rights reserved. 11
Slide 12: Summary of FY2024 Forecasts
1 2 FY2024 Forecasts 3 44 Summary of FY2024 Forecasts Unconfirmed factors such as decrease in Consolidated shareholders‘ equity due to additional returns and changes Equity ¥1,147.0 bln YoY (¥4.6 bln) (0.4%) in valuation difference on available-for-sale securities due to changes in stock price and o
Slide 13: Summary of FY2024 Forecasts
1 2 FY2024 Forecasts 3 44 Summary of FY2024 Forecasts Consolidated Net sales ¥2,510.0 bln YoY +¥184.8 bln +7.9% Significant increase of over 100.0 billion yen due to the consolidation of MWH, acquired in the last fiscal year Included significant profit recovery due to the impact of Consolidated loss
Slide 14: Statements of Income (Forecasts)
1 2 FY2024 Forecasts 3 44 Statements of Income (Forecasts) (Billions of yen) Consolidated Non-consolidated FY2023 Results FY2024 Forecasts YoY FY2023 Results FY2024 Forecasts YoY Building 1,722.0 1,770.0 +47.9 1,240.2 1,265.0 +24.7 Net sales of completed construction contracts Civil 484.7 605.0 +120
Slide 15: Change in Operating Income (Forecasts)
1 2 FY2024 Forecasts 3 44 Change in Operating Income (Forecasts) While non-consolidated SG&A expenses are expected to increase due to progress in investment for growth, profits are expected to recover significantly due to the impact of losses in domestic building construction in the previous year
Slide 16: Orders Received (Forecasts)
1 2 FY2024 Forecasts 3 44 Orders Received (Forecasts) (Unit: Billions of yen) Consolidated Non-consolidated FY2023 Results FY2024 Forecasts YoY FY2023 Results FY2024 Forecasts YoY Domestic 1,236.9 1,355.0 +118.0 1,194.8 1,300.0 +105.1 Building Overseas 520.3 340.0 (180.3) 37 10.0 +6.2 Total 1,757.3
Slide 17: Overview of Each Businesses
3 Overview of Each Businesses • Domestic Building Construction Business • Domestic Civil Engineering Business • Overseas Construction Business • Real Estate Business and Other • YoY Comparison © OBAYASHI CORPORATION, All rights reserved. 17
Slide 18: Domestic Building Construction Business (Non-consolidated)
1 2 3 Overview of Each Businesses 4 Domestic Building Construction Business (Non-consolidated) (Billions of yen) Net sales of completed construction contracts Gross profit on completed construction/ratio Orders received 120.0 8.3% 8.0% 6.3% 100.0 80.0 60.0 1,234.2 1,260.0 1,300.0 100.3 1,093.1 1,194
Slide 19: Domestic Civil Engineering Business (Non-consolidated)
1 2 3 Overview of Each Businesses 4 Domestic Civil Engineering Business (Non-consolidated) (Billions of yen) Net sales of completed construction contracts Gross profit on completed construction/ratio Orders received 60.0 15.7% 15.8% 14.7% 50.0 40.0 30.0 328.0 286.5 285.0 280.1 295.0 266.2 45.2 20.0
Slide 20: Overseas Construction Business (Consolidated)
1 2 3 Overview of Each Businesses 4 Overseas Construction Business (Consolidated) (Billions of yen) Net sales of completed construction contracts Gross profit on completed construction/ratio Orders received 695.0 622.4 694.9 665.0 573.2 Civil 447.8 9.1 174.5 235.0 11.5 133.8 115.3 8.6 325.0 Civil (3
Slide 21: Real Estate Business and Other (Consolidated)
1 2 3 Overview of Each Businesses 4 Real Estate Business and Other (Consolidated) (Billions of yen) Net sales Operating income Orders received 136.2 135.0 29.0 118.3 Other Other 2.1 54.0 19.6 52.3 16.5 51.5 1.3 Real estate 2.5 Real estate 158.0 Real estate business business 120.0 business 81.0 26.9
Slide 22: Consolidated vs Non-consolidated
1 2 3 Overview of Each Businesses 4 Consolidated vs Non-consolidated (Billions of yen) Net sales Operating income Orders received 2,510.0 Consolidated Consolidated 2,513.0 2,520.0 Consolidated 2,325.1 93.0 93.8 2,222.2 1,983.8 79.3 Subsidiaries* 900.0 Subsidiaries* Subsidiaries 911.5 845.0 742.9 596
Slide 23: Reduction of Cross-Shareholdings / Changes in Shareholder Returns
4 Reduction of Cross-Shareholdings / Changes in Shareholder Returns • Reduction of Cross-Shareholdings • Changes in Shareholder Returns © OBAYASHI CORPORATION, All rights reserved. 23
Slide 24: Reduction of Cross-Shareholdings
1 2 3 4 Reduction of Cross-Shareholdings/ 4 Changes in Shareholder Returns Reduction of Cross-Shareholdings While steadily selling off, the balance of cross-shareholdings at the end of March 2024 increased YoY due to the recent rise in the stock market. Continue to strive for further reduction,
Slide 25: Changes in Shareholder Returns
1 2 3 4 Reduction of Cross-Shareholdings/ 4 Changes in Shareholder Returns Changes in Shareholder Returns Raise the dividend on equity ratio (DOE) from around 3% to around 5%, with the top priority on maintaining stable dividends over the long term In addition to annual dividends, strategic shar