Asahi Kogyosha Co., Ltd. · TSE:1975
Asahi Kogyosha — FY2024 Earnings Presentation
39 slides from Asahi Kogyosha's earnings presentation, May 31, 2024
Slide 1: Financial results briefing materials for the fiscal year ended March 2024
Asahi Kogyosha Co., Ltd. (Securities Code: 1975) Financial results briefing materials for the fiscal year ended March 2024 May 31, 2024 Making comfort a standard feature
Slide 2: Agenda
Agenda 1 Company overview P.3 Overview of financial results for the fiscal year 2 P.6 ended march 2024 Performance forecast for the fiscal year ending 3 P.15 March 2025 4 Capital policy P.19 5 Progress on the 18th Medium-term Management Plan P.23 Appendix P.28 © ASAHI KOGYOSHA CO.,LTD. 2
Slide 3: 1. Company overview
1. Company overview © ASAHI KOGYOSHA CO.,LTD. 3
Slide 4: What Asahi Kogyosha is
What Asahi Kogyosha is An engineering company applying manufacturing capabilities and technologies for air, water, and heat to create optimal and comfortable spaces and environments MISSION SPIRIT POLICY We create optimal spatial We, as engineering [Company] environments and contribute constructors,
Slide 5: Company information
Company information ▎ Engaged in two businesses: Installation work and Manufacture and sale of equipment ▎ Nationwide network in Japan ▎ Overseas businesses (Taiwan and Malaysia) Basic company information Basic financial information*1 Net sales 91,676 million yen Ordinary income 4,896 million yen Co
Slide 6: 2. Overview of financial results for the fiscal year ended March 2024
2. Overview of financial results for the fiscal year ended march 2024 © ASAHI KOGYOSHA CO.,LTD. 6
Slide 7: Overview of financial results for the fiscal year ended March 2024
Overview of financial results for the fiscal year ended march 2024 ▎ Both orders and carryovers for the subsequent fiscal year grew thanks to orders for large-scale construction of health and medical environment facilities and other factors. ▎ Net sales increased due to steady progress on a backlog
Slide 8: Orders, net sales, and operating income by segment
Orders, net sales, and operating income by segment ▎ Both orders and net sales grew significantly in the Installation Work Division. Operating income grew significantly due to growth in net sales. ▎ Both orders and net sales in the Equipment Division declined. FY 3/22 FY 3/23 FY 3/24 (Unit: million
Slide 9: Trends in quarterly results
Trends in quarterly results ▎ Net sales increased in the fourth quarter despite fewer orders than in the third quarter. ▎ Profits at each stage also grew significantly due to an increase in net sales and an improvement in the gross margin. FY 3/23 FY 3/24 (Unit: million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 10: Actual results by segment: Orders
Actual results by segment Orders ▎ Overall orders grew significantly from the previous year. ▎ Orders for production environment and living/cultural environment facilities decreased in the Installation Work Division, but orders for transportation/communication environment, health/medical environment
Slide 11: Actual results by segment: Net sales
Actual results by segment Net sales ▎ Overall sales grew significantly from the previous year. ▎ Sales to business environment and health/medical environment facilities in the Installation Work Division declined; however, sales to living/cultural environment and production environment facilities gre
Slide 12: Carryovers for the subsequent fiscal year
Carryovers for the subsequent fiscal year ▎ Overall carryovers for the subsequent fiscal year increased from the previous year. ▎ Carryovers for business environment, living/cultural environment, and production environment facilities declined; however, carryovers for transportation/communication env
Slide 13: Balance sheet
Balance sheet ▎ Total assets increased by 5,070 million yen from the end of the preceding fiscal year due to various factors, including growth in accounts like cash and deposits, accounts receivable from completed construction contracts and electronically recorded monetary claims. ▎ Total liabilitie
Slide 14: Statement of cash flows
Statement of cash flows ▎ Cash flow from operating activities was positive by 2,010 million yen, due primarily to significant growth in profit before income taxes. ▎ Cash flow from investing activities was negative 304 million yen due to the purchase of property, plant and equipment. ▎ Cash flow fro
Slide 15: 3. Performance forecast for the fiscal year ending March 2025
3. Performance forecast for the fiscal year ending March 2025 © ASAHI KOGYOSHA CO.,LTD. 15
Slide 16: Forecast for the fiscal year ending March 2025
Forecast for the fiscal year ending March 2025 ▎ The forecast for orders is conservative compared to actual orders in the preceding fiscal year in light of our construction organization. ▎ Net sales are expected to increase modestly due to the abundance of carryovers and recovery in the Equipment Di
Slide 17: Outlook by segment
Outlook by segment ▎ In the Installation Work Division, the forecast for orders is conservative in consideration of the construction organization; however, steady progress is expected on the work order backlog and net sales are expected to generally remain flat. ▎ Buoyed by renewed activity in the s
Slide 18: Long-term performance trends (past 10 years)
Long-term performance trends (past 10 years) ▎ Net sales have grown steadily following the Lehman Brothers collapse, with significant growth in the fiscal years ended March 2019 and March 2020, due in part to the impact of demand related to the Olympics. ▎ Both net sales and operating income decline
Slide 19: 4. Capital policy
4. Capital policy © ASAHI KOGYOSHA CO.,LTD. 19
Slide 20: Promoting management keenly aware of the cost of capital
Promoting management keenly aware of the cost of capital ▎ ROE for the fiscal year ended March 2024 exceeded 10% and remains above the Company's perceived cost of shareholders' equity (6%-7%). ▎ Cross-shareholdings will be reduced during the 18th Medium-term Management Plan period (April 2023 to Mar
Slide 21: Returns to shareholders
Returns to shareholders ▎ In the 18th Medium-term Management Plan (April 2023 to the end of March 2026), we set as targets maintaining an ordinary dividend of 40 yen per share (80 yen per share on pre-stock split basis) and a consolidated dividend payout ratio of 40% or more. ▎ We implemented two st
Slide 22: Share price and trading value
Share price and trading value ▎ Our stock price has risen significantly due to solid business performance and the continuing implementation of IR measures. ▎ Average daily trading value has improved significantly and continues to meet the criteria for maintaining our listing on the Prime Market, whi
Slide 23: 5. Progress on the 18th Medium-term Management Plan
5. Progress on the 18th Medium-term Management Plan © ASAHI KOGYOSHA CO.,LTD. 23
Slide 24: Overview of the 18th Medium-term Management Plan
Overview of the18th Medium-term Management Plan ▎ Formulated as the final stage (plan period: April 2023 to March 2026) of the long-term vision ASAHI-VISION 100: Taking on Challenge to Change Transformation ▎ We aim to become an Only One entity that creates new value for society. Basic policy Lookin
Slide 25: Human resource strategy: investing in human capital
Human resource strategy: investing in human capital ▎ We believe people are our greatest asset and the source of our competitiveness. We recognize securing and developing human resources as the most important issue. ▎ We will promote diversity and a work-life balance and develop human resources from
Slide 26: Building the new Technical Research Institute 1/2
[Innovation Strategy] Building the new Technical Research Institute 1/2 ▎ By the end of 2025, we plan to build a new technical research institute at a total project cost of approximately 6 billion yen in Tsukuba City, Ibaraki Prefecture. ▎ We will push forward under the vision of “fostering disquisi
Slide 27: Building the new Technical Research Institute 2/2
[Innovation Strategy] Building the new Technical Research Institute 2/2 ▎ The institute will identify creative technologies for creating and conserving energy by incorporating proprietary technologies. Goals include achieving ZEB and obtaining premium certifications from LEED, CASBEE, and other thir
Slide 28: Appendix
Appendix © ASAHI KOGYOSHA CO.,LTD. 28
Slide 29: Asahi Kogyosha's strengths
Asahi Kogyosha’s strengths ▎ Our core competences lie in technical capabilities cultivated since our founding in air conditioning, sanitation, and water supply and drainage. ▎ Based on these core competences, we develop competitive advantages by operating as an integrated entity, in close contact wi
Slide 30: Advanced technological capabilities responsive to market trends
[Technological capabilities related to air, water, and heat cultivated over 100 years since our founding] Advanced technological capabilities responsive to market trends ▎ Technologies responding to various trends have been developed as demands for industrial construction rise with the development o
Slide 31: Comprehensive proposal capabilities that merge technologies related to air, water, and heat
[Integrated, project-based business operation] Comprehensive proposal capabilities that merge technologies related to air, water, and heat ▎ We respond to corporate sustainability initiatives as an environment-creating company to develop domestic production bases amid the continuing shift toward lab
Slide 32: Virtuous cycle driven by grasp of customer needs
[Operating in close contact with customers] Virtuous cycle driven by grasp of customer needs ▎ Operating in close contact with customers makes it possible to grasp diverse customer needs. ▎ We have established a virtuous cycle in which we leverage identified customer needs to develop technologies an
Slide 33: SDGs (1/4) Asahi Kogyosha Group's Basic Policy on SDGs
SDGs (1/4) Asahi Kogyosha Group’s Basic Policy on SDGs ▎ The Group's corporate philosophy is to contribute to the development of culture by creating optimal spaces, drawing on advanced technologies based on the science of air, water, and heat while taking good care of the global environment and reso
Slide 34: SDGs (2/4) Themes of initiatives and specific measures in FY 2024
SDGs (2/4) Themes of initiatives related to SDGs and specific measures in FY 2024 Priority issues addressed by Related SDG goal Initiative theme Specific measures the Group Reducing energy consumption at business sites Reducing environmental impact through environmental Recycling recovered fluorocar
Slide 35: SDGs (3/4) Themes of initiatives and specific measures in FY 2024
SDGs (3/4) Themes of initiatives related to SDGs and specific measures in FY 2024 Priority issues addressed by Related SDG goal Initiative theme Specific measures the Group Reducing statutory overtime hours Promoting work-life balance Encouraging employees to take paid leave Encouraging employees to
Slide 36: SDGs (4/4) Themes of initiatives and specific measures in FY 2024
SDGs (4/4) Themes of initiatives related to SDGs and specific measures in FY 2024 Priority issues addressed by Related SDG goal Initiative theme Specific measures the Group Strengthening relationships with partner companies to Strengthening cooperation with maintain appropriate relationships and to
Slide 37: Installation Work Division: business content and domains
Installation Work Division: business content and domains ▎ The Installation Work Division performs air-conditioning installation and sanitation installation work using air, water, and heat technologies and provides one-stop engineering for customer facilities, from planning and proposal to construct
Slide 38: Equipment Division
Equipment Division ▎ We develop, manufacture, and sell precision environmental control equipment to leading-edge industries, including manufacturing equipment for semiconductors, FPDs, and electronics. ▎ By supplying primarily on an OEM-basis, we have focused on development, design, and manufacturin
Slide 39: Inquiries
This document contains forward-looking statements regarding industry trends and the activities undertaken by Asahi Kogyosha based on current plans, estimates, expectations, and forecasts. Various risks and uncertainties are inherent in these forward-looking statements. Risks, uncertainties and other