Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — FY2020 Earnings Presentation
25 slides from Tokyu Construction's earnings presentation, May 19, 2020
Slide 1: FY03/20 Financial Results Briefing
FY03/20 Financial Results Briefing May 19, 2020
Slide 2: Contents
Contents FY03/20 Financial Results Briefing 1．Overview of FY03/20 Financial Results 2．Full-Year Outlook for FY03/21 3．Topics and Mid-term Management Plan Progress This briefing material includes our earnings forecasts and projections. Please note that these reflect forecasts and estimates based on i
Slide 3: Overview of FY03/20 Financial Results
Financial Results Briefing 1. Overview of FY03/20 Financial Results Consolidated net sales remained at a high level, but declined on a year-on- year basis. Consolidated gross profit reached a record high. Operating income declined from last year’s record high on an increase in spending for fut
Slide 4: Business Environment
1 Business Environment Business environment in FY03/20 1. The Japanese economy maintained a gradual recovery track from the beginning of the fiscal year, supported by robust corporate earnings and a sustained improvement in the employment and income environments, but deteriorated sharply as a result
Slide 5: FY03/20 Full-Year Results (Consolidated)
1 FY03/20 Full-Year Results (Consolidated) Consolidated net sales remained at a high level but declined from the previous year’s record high. Gross profit reached a record high, but operating income was down from the previous-year level on an increase in SG&A expenses. The subsidiary handling the bu
Slide 6: Factors Affecting Net Income (Consolidated)
FY03/20 1 Factors Affecting Net Income (Consolidated) Equity-method investment income and real estate gross profit improved. Profit attributable to owners of parent declined ¥600 million from the previous-year level on an increase in costs associated with in-house ICT infrastructure development as w
Slide 7: FY03/20 Full-Year Results (Non-Consolidated)
FY03/20 1 FY03/20 Full-Year Results (Non-Consolidated) Net sales declined 4.4% year on year. While gross profit margin improved 0.4pp year on year, operating income dropped ¥2.0 billion year on year due to the decline in net sales and a rise in SG&A expenses, including personnel expenses. (Millions
Slide 8: Net Sales (Non-Consolidated)
FY03/20 1 Net Sales (Non-Consolidated) Completed construction sales declined year on year. While completed civil engineering construction sales increased in joint-venture subcontracting work, completion of large-scale projects in the building construction business had mostly fizzled by the end of 1H
Slide 9: Gross Profit (Non-Consolidated)
FY03/20 1 Gross Profit (Non-Consolidated) The civil engineering profit margin fell 4.8pp year on year due to low-margin joint-venture subcontracting projects accounting for an increased ratio of total projects, and a year-on-year reaction to strong margins achieved last year on an unexpectedly high
Slide 10: Financial Position and Cash Flow (Consolidated)
FY03/20 1 Financial Position and Cash Flow (Consolidated) Net assets increased to ¥101.7 billion, with the equity ratio coming in at 42.9%. Operating cash flow was negative on the granting of improved payment terms to partner companies. [Consolidated Financial Position] (Millions of yen) March 31, M
Slide 11: Orders (Non-Consolidated, Company-Wide)
FY03/20 1 Orders (Non-Consolidated, Company-Wide) Company-wide orders declined 26.5% year on year to ¥193.3 billion. Orders fell in reaction to large civil engineering orders received overseas in the previous year and private construction work being pushed back to the next fiscal year. 291,337 263,0
Slide 12: Orders (Non-Consolidated, Civil Engineering)
FY03/20 1 Orders (Non-Consolidated, Civil Engineering) Overall order value declined in reaction to large-scale overseas orders received in the previous year. Domestic civil engineering orders expanded. (Millions of yen) 76,784 77,766 64,605 Difference compared Rate of 5,315 22,988 FY03/20 to previou
Slide 13: Orders (Non-Consolidated, Building Construction)
FY03/20 1 Orders (Non-Consolidated, Building Construction) Orders declined sharply amid heightened competition and multiple large-scale projects being pushed back to the next fiscal year. We recognize that the level of orders for FY03/20 is only temporary, given that these orders are expected to be
Slide 14: Full-Year Outlook for FY03/21
Financial Results Briefing 2. Full-Year Outlook for FY03/21 We expected FY03/21 earnings to show a sharp yet temporary decline year on year, even when excluding the impact from the spread of COVID-19 infections. Given the difficulty in making a reasonable calculation of the impact on earnings fr
Slide 15: Measures Taken in Response to the COVID-19 Outbreak
2 Measures Taken in Response to the COVID-19 Outbreak Our company launched telecommuting for in-house operations on March 2, 2020. With the government issuing its emergency declaration on April 7, we adopted a policy suspending in principle all construction to prioritize the health and safety of our
Slide 16: Full-year Forecast for FY03/21 (prior to the COVID-19 outbreak)
2 Full-year Forecast for FY03/21 (prior to the COVID-19 outbreak) We expected a sharp but brief year-on-year downturn in earnings in FY3/21, even before considering the COVID-19 outbreak and its impact on performance. Delays in previous-year orders, largely in the building construction business, h
Slide 17: The Effects from the Spread of COVID-19
2 The Effects from the Spread of COVID-19 We will announce the forecast as soon as possible based on our understanding of the effects from the COVID-19 outbreaks, including on existing projects and customer capex plans. Indicated to customers that we suspend construction during the period covered
Slide 18: Mid-Term Management Plan Progress and Topics
Financial Results Briefing ３. Mid-Term Management Plan Progress and Topics 17
Slide 19: KPIs in Mid-Term Management Plan
FY03/20 3 KPIs in Mid-Term Management Plan We achieved mid-term management plan targets in FY03/20. FY03/21 earnings forecast on hold due to COVID-19 KPI FY03/19 FY03/20 actual FY03/21 FY03/27 Basic policy KPI Transform • Employee Engagement ＢＢ ＢＢ ＢＢＢ Ａ human Survey (*1) resources and • No. of days
Slide 20: Topics: Improving Employee Engagement
3 Topics 1 Improving Employee Engagement Winner of the Best Motivation Improving the sense of unity Company Award 2020 through a renewed focus on the company and colleagues as we Placed 7th in employee engagement commemorate the 60th among major corporations anniversary of the founding In recognitio
Slide 21: Topics: Environmental Initiatives
3 Topics 2 Environmental Initiatives Received a B- rating in the Acquired SBT certification CDP Climate Change 2019 (WB2°C) for greenhouse gas Questionnaire reduction targets We participated for the Tokyu Construction in April 2020 received the Well first time in the CDP Below 2°C certification for
Slide 22: Topics: Enhance Domestic Construction Business
3 Topics 3 Enhance Domestic Construction Business Improving construction capabilities by using cutting-edge ICT and the showing the results of working as one team Tokyo Metro Ginza Line Shibuya Station Construction Project Relocation work on the Tokyo Metro Ginza Line has been in progress since 2009
Slide 23: Topics: Enhance Domestic Construction Business
3 Topics 4 Enhance Domestic Construction Business Our endeavors in large-scale wooden building construction with the use of digital technology and human ingenuity The ROOFLAG rental housing future showroom Using CLT to create one of the largest roof structures in Japan The project of ROOFLAG rental
Slide 24: Topics: Infrastructure Asset Management
3 Topics 5 Infrastructure Asset Management Leveraging the strengths gained in railway construction to expand into compatible fields ISO55001 certification, the international standard for asset management First certification for a general contractor in the railway sector With a view toward the full-s
Slide 25: This graphic, used to commemorate the 60th anniversary of the company’s founding, incorporates submissions
This graphic, used to commemorate the 60th anniversary of the company’s founding, incorporates submissions from about 2,800 employees regarding “the values you find important in your work” (expressed in a single kanji character). [Inquiries] Nishida/Yamaguchi Corporate Planning Department, Corporate