Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — 1H FY03/2024 Earnings Presentation
36 slides from Tokyu Construction's earnings presentation, Nov 16, 2023
Slide 1: The First Half Financial Results Briefing
FY03/2024 The First Half Financial Results Briefing November 16, 2023
Slide 2: Overview of First Half FY03/2024 Financial Results
FY03/2024 Overview of First Half FY03/2024 Financial Results The First Half FY03/2024 Financial Results Briefing
Slide 3: First Half FY03/2024 Financial Highlights
First Half FY03/2024 Financial Highlights Orders fell due to a reactionary decrease from large-scale construction orders in the same period of the previous year, but the firm demand was steadily taken in and the business progressed as planned. Net sales increased due to steady progress in carryover
Slide 4: Consolidated Financial Results
Consolidated Financial Results Net sales increased due to the contribution of an increase in completed construction sales of the Company’s non-consolidated businesses. The interim dividend per share is 18 yen. 1H 1H Ratio Ratio YoY （Millions of yen） FY03/2023 FY03/2024 Orders(non- (14.9%) consolidat
Slide 5: Factors Affecting Net Income
Factors Affecting Net Income The gross profit margin of completed construction increased, as there was an improvement in business performance of subsidiaries after a temporary deterioration in the same period of the previous year. Gross profit from the real estate business, etc. increased due to a r
Slide 6: Non-consolidated Financial Results
Non-consolidated Financial Results Completed construction sales increased due to the steady progress in carryover construction projects at the beginning of the period for both building construction and civil engineering. Operating income was higher year on year, despite an increase in selling, gener
Slide 7: Non-Consolidated / Building construction (Sales and Gross Profit)
Non-Consolidated ／ Building construction（Completed construction sales・Completed construction gross profit） Completed construction sales increased due to the steady progress centered on carryover of large construction projects at the beginning of the period. The gross profit margin of completed const
Slide 8: Non-Consolidated / Building construction (Orders)
Non-Consolidated ／ Building construction（Orders） Domestic public projects increased due to the orders received for multiple construction projects including large-scale ones, despite a reactionary decline in orders for large-scale private sector construction projects in the same period of the previou
Slide 9: Non-Consolidated / Civil engineering (Sales and Gross Profit)
Non-Consolidated ／ Civil engineering（Completed construction sales・Completed construction gross profit） Completed construction sales increased due to the steady progress in carryover construction projects at the beginning of the period. Things went according to plan. We upwardly revised our full-year
Slide 10: Non-Consolidated / Civil engineering (Orders)
Non-Consolidated ／ Civil engineering（Orders） Although orders decreased due to a reactionary decrease from large overseas construction projects in the same period of the previous year, those for all of public, private and Tokyu Group projects were strong in Japan. Orders Main orders （Millions of yen）
Slide 11: Consolidated Balance Sheets
Consolidated Balance Sheets The equity ratio was at 40.2%, increase of 2.0 percentage points compared with March 31, 2022. D/E ratio was 0.48 times due to an increase in borrowings. As of March 31, As of September Increase/decrease factors YoY （Millions of yen） 2023 30, 2023 − Current assets Current
Slide 12: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Operating cash flow was negative due to the advanced payment of construction charges. 1H 1H 1 H F Y 0 3 / 20 24 re ma rks （Millions of yen） FY03/2023 FY03/2024 Cash flows from operating Cash decreased due to an increase in trade 8,977 (49,852) receivables and a
Slide 13: Full-year Forecast for FY03/2024
Full-year Forecast for FY03/2024 The First Half FY03/2024 Financial Results Briefing
Slide 14: Consolidated Financial Results Forecast
Consolidated Financial Results Forecast Orders are expected to achieve the initial plan on the back of strong demand. The Company revised its full-year forecasts upward due to individual factors in the second quarter. We will increase investment in human resources to improve corporate value. Differe
Slide 15: Non-consolidated Financial Results Forecast
Non-consolidated Financial Results Forecast Completed construction sales will increase from the previous fiscal year due to the steady progress in carryover construction projects at the beginning of the period. Net sales will decrease 6 billion yen from the beginning-of-period forecast due to delays
Slide 16: Non-Consolidated Order Forecast
Non-Consolidated Order Forecast In building construction, we will aim to achieve a level of orders in excess of 200 billion yen by securing the target projects. In civil engineering, there will be a reactionary decrease from the previous fiscal year’s large overseas projects, but we will aim to acqu
Slide 17: Forecast / Building construction
Non-consolidated Financial Results Forecast／ Building construction There will be good progress in works carried over at the beginning of the fiscal year. We will work to further improve profits while closely monitoring labor shortages and trends in equipment and material costs. Completed constructio
Slide 18: Forecast / Civil engineering
Non-consolidated Financial Results Forecast／ Civil engineering Large-scale construction carried over from past fiscal years will progress and completed construction sales will increase. In addition to improving the profitability of some construction projects, we will increase profit margins by acqui
Slide 19: Forecast / Construction Renewal
Forecast／ Construction Renewal The number of business inquiries will tend to increase, and both net sales and orders will recover to pre-COVID-19 levels. • Desire for investment is strong, due partly to the recovery of inbound arrivals External environment and a reaction to the suppression of invest
Slide 20: Forecast / International / Real estate
Forecast／ International ・ Real estate International Real estate Business performance of subsidiaries will improve after a The real estate rental business, which provides environmental value, temporary deterioration in the previous fiscal year. The will make steady progress. improvement in profitabil
Slide 21: Shareholder returns
Shareholder returns We plan to pay an annual dividend of 36 yen per share. While recognizing the importance of capital efficiency, we will continue our basic policy of paying dividends with a dividend on equity ratio (DOE) of at least 4.0%, emphasizing stable and continuous profit returns to shareho
Slide 22: Our Strength: Town Planning
Our Strength：Town Planning ～The Technology, Expertise, and Teamwork That Keep Urban Functions Running～ The First Half FY03/2024 Financial Results Briefing
Slide 23: Strengths of Tokyu Construction Group
Strengths of Tokyu Construction Group Since its founding, the Company has accumulated know-how and human resource capabilities by continuing to take on the challenge of community development conscious of consumers. By deepening and fusing these using digital technology, we have established unique “t
Slide 24: Achievements in Urban Development
Achievements in Urban Development By taking advantage of our strength in construction around stations and near railroads, we have become involved with various projects in Japan and overseas. We will further hone our strengths--the technology, expertise, and teamwork that keep urban functions running
Slide 25: Urban Development in Shibuya
Urban Development in Shibuya We have executed difficult construction projects in Shibuya, leveraging our technology, expertise and teamwork. Shibuya has huge future potential with numerous redevelopment projects planned. ■Major construction projects of Tokyu Construction ■Ongoing redevelopment proje
Slide 26: Commitment to Problem-Solving Skills (QCDSE)
Commitment to Problem-Solving Skills (QCDSE*) The entire Company is working together to implement the impending “Overtime Work Cap Regulations” to take effect in April 2024. Strengthening problem-solving skills for the medium to long term, including utilization of digital technology, human resource
Slide 27: Efforts to Prevent Recurrence of Quality Problems
Efforts to Prevent Recurrence of Quality Problems, Improve Construction Quality, and Restore Trust Regarding the past quality problems, we have reviewed the structure, system and organizational culture to prevent their recurrence thoroughly. Continuing to have zero serious quality accidents. Sharing
Slide 28: Progress of Long-Term Management Plan
Progress of Long-Term Management Plan The First Half FY03/2024 Financial Results Briefing
Slide 29: TOPICS Decarbonization
TOPICS Decarbonization We have newly entered the power storage facility business in order to achieve both adaptation and contribution to a decarbonized society and profit generation. We will continue to take various initiatives to reduce GHG emissions in our construction and production processes. Ma
Slide 30: TOPICS Initiatives to utilize digital technology
TOPICS Initiatives to utilize digital technology We will utilize BIM/CIM to improve the efficiency and sophistication of construction and production and management systems, promote the development of DX human resources for transformation, and expand the potential for community development. Main inve
Slide 31: TOPICS Public-Private Partnerships (PPP), Innovation
TOPICS Initiatives for Public-Private Partnerships (PPP) , Innovation We promote public-private partnership projects and venture investments to create new businesses and pursue growth opportunities. We continue to hold “Vision Dialogue” and “MOON SHOT CONTEST” to encourage behavior change to “Challe
Slide 32: Long-Term Management Plan "To zero, from zero."
Long-Term Management Plan “To zero, from zero.” We promote a long-term management plan with FY2030 as the target year. We will further work to strengthen our problem-solving skills (overhaul of QCDSE and sales capabilities and the restructuring of our earning power) to return to a growth trajectory.
Slide 33: Appendix
【Appendix】 The First Half FY03/2024 Financial Results Briefing
Slide 34: Business model and business overview
Business model and business overview We take on construction work en masse from government agencies and private companies, and manage construction work efficiently in cooperation with numerous suppliers. We realize the maximization of added value by implementing integrated construction management of
Slide 35: TOPICS External Evaluations
TOPICS External Evaluations Our initiatives for climate change, diversity and inclusion, and investor relations earned high evaluation. Main investments C l i mate C h ange D i v e rs it y and I nclusion IR Winner of eco Test Award Winner of the highest gold level in Winner of 2023 IR Award “PRIDE I
Slide 36: Notes
[Inquiries] Nishida/Morita Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp Notes Forward-looking statements such as forecasts of the company’s results contained in this document are based on information available as of the date of publi
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