Infroneer Holdings Inc. · TSE:5076
Infroneer — Q2 FY2024 Earnings Presentation
55 slides from Infroneer's earnings presentation, Nov 12, 2024
Slide 1: FY2024 2nd Quarter Financial Presentation
INFRONEER Holdings FY2024 2nd Quarter Financial Presentation November 12, 2024
Slide 2: Supplementary Material Index
FY2024 2nd Quarter Financial Results Supplementary Material INDEX 1. Management Environment Recognition = Appendix = 2. Financial Summary Segment Highlights 3. Capital Strategies & Return Policies / FY24 2Q Results 1. Building Construction and Forecast 2. Civil Engineering 3. Infrastructure Manageme
Slide 3: Management Environment Recognition
１.Management Environment Recognition Our understanding and responses to the market environment, order environment, and material prices, etc. Market Our Segments Market Perception and Our Initiatives condition Condition Market condition : Construction investment is trending upwards, but the impact of
Slide 4: Financial Summary
2. Financial Summary Company Segments Financial Highlights • FY24 2Q results show higher revenue and lower profit YoY, but full-year profit is expected to be in INFRONEER Holdings line with plan.(Special factors in the civil engineering segment in the last fiscal year, increase in SG&A) • Each segme
Slide 5: Capital Strategies & Return Policies / FY24 2Q Results and Forecast
3-1. Capital Strategies & Return Policies / FY24 2Q Results and Forecast Shareholder returns • We plan to distribute a dividend of 60 yen per share (comprising an interim dividend of 30 yen and a year-end dividend of 30 yen), anticipating a dividend payout ratio of 40.4%. Cross-shareholdings • Durin
Slide 6: Reduce Cross-Shareholdings to zero by fiscal year 2027
3-2. Reduce Cross-Shareholdings to zero by fiscal year 2027 Policy for the sale FY24 target: Sell over 25 billion yen of Maeda Corp. holdings of Cross- (reduce the ownership ratio to net assets to below 20%). Shareholdings Final goal: Reduce to zero for the entire INFRONEER Group by FY27. Policy for
Slide 7: Trend of Performance Figures for INFRONEER Holdings
4-1 .Trend of Performance Figures for INFRONEER Holdings • We anticipate that business profit, net income, EBITDA, and added value will reach record highs for the full fiscal year. Operating profit/Business profit Net income Operating profit/IFRS Business Profit (Billions of Yen) (Billions of Yen) 2
Slide 8: Year-over-year performance figures for INFRONEER Holdings
4-2.Year-over-year performance figures for INFRONEER Holdings • FY24 2Q results show higher revenue and lower profit YoY, but full-year profit is expected to be in line with plan.(Special factors in the civil engineering segment in the last fiscal year and increased general and administrative expens
Slide 9: Segment Performance Figures Year-on-Year
５.Segment Performance Figures Year-on-Year （Billions of Yen） ※ FY23 FY24 FY24 FY23 YoY Progress YoY 2QResult 2QResult Result Forecast Net sales 358.8 380.7 21.9 45.3% 793.3 839.9 46.6 Building Construction 108.4 136.6 28.3 46.6% 273.7 293.3 ※ 19.6 Civil Engineering 82.6 65.7 ー16.8 43.7% 162.4 150.3
Slide 10: Transition of Backlog, Order Intake and Profit Margin on Orders
６.Transition of Backlog, Order Intake and Profit Margin on Orders [Building Construction and Civil Engineering] • In Building Construction, the transition of orders in 2Q has been robust, with the profit margin of orders received maintaining a high level. We expect the contract backlogs at the end o
Slide 11: FY24 Main Factors for SG&A Increase/Decrease
7.FY24 Main Factors for SG&A Increase/Decrease Re-posting of FY24 1Q material • General and administrative expenses increased due to the full acquisition of Japan Wind Development. • Advertising and promotional expenses increased due to the signing of a partnership contract with B.LEAGUE. It aimed a
Slide 12: Main Factors for Increase/Decrease in the Consolidated Balance Sheet
8.Main Factors for Increase/Decrease in the Consolidated Balance Sheet Assets Liabilities and Equity （Billions of Yen） （Billions of Yen） - 47 1,411 (- 44) 1,364 -47 (1,312) ※1 1,411 (1,268) ※1 Major Factor Major Factor 1,364 - 54 - 93 Liabilities Construction Contracts Short-term Borrowings -220 Cur
Slide 13: Capital strategies and share price performance
9.Capital strategies and share price performance • We will continue to implement capital strategies and achieve performance targets to advance management with a focus on capital efficiency. FY21 FY22 FY23 FY24 Dividend payout ratio Dividend payout ratio Dividend payout ratio Dividend payout ratio 42
Slide 14: Impact of Bond-type Class Shares on Financial Indicators
10.Impact of Bond-type Class Shares on Financial Indicators • Bond-type Class Shares are distinguished from common shares and are excluded from net assets when calculating PBR. • ROE and EPS are reduced due to the deduction of preferred dividends, resulting in a decrease in net income attributable t
Slide 15: Appendix
Appendix 14
Slide 16: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 15
Slide 17: Maeda Corp. Net Sales, Gross Profit, and Operating Profit
1-1.[ Maeda Corp. *Including Real Estate] Net Sales, Gross Profit, and Operating Profit • FY24 2Q Due to the successful progress of both carried-over and newly acquired construction projects at the beginning of the period, we achieved an increase in revenue and profit compared to the same period of
Slide 18: Orders Received and Profit Margin of Orders Received
1-2.[ Maeda Corp. *Including Real Estate] Orders Received and Profit Margin of Orders Received • FY24 2Q While the previous period included three large-scale redevelopment projects in its order intake, this period only had one, resulting in a decrease compared to the previous period. Building Constr
Slide 19: Trend of Order Ratios by Building Use
1-3 . [Maeda Corp. Domestic] Trend of Order Ratios by Building Use • FY24 2Q The ‘Accommodation, Commercial, Factory, and Warehouse’ category saw an increased proportion due to the acquisition of large projects and major renewal projects. Building Constru The ‘Education & Culture’ category also expe
Slide 20: Topics: Educational and Cultural Institutions, PFI-R Concession
1-4. Topics: "Initiatives for Educational and Cultural Institutions," "Japan's First PFI-R Concession Method" Construction of a new building at Tama Art Toyama City General Gymnasium R Concession University, Kaminoge Campus business Building Constru ction Civil Enginee ring Infrastr ucture Manage me
Slide 21: Topics: Large-Scale Logistics Facilities and Government Projects
1-5. Topics: "Initiatives in Large-Scale Logistics Facilities," "Engagement in Government Projects Utilizing Technical Expertise" SOSiLA Kyoto Kumiyama New Construction Project New Karatsu Civic Hall (tentative name) Reconstruction Project Building Constru ction Civil Enginee ring Infrastr ucture Ma
Slide 22: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 21
Slide 23: Maeda Corp. Net Sales, Gross Profit, and Operating Profit
2-1.[ Maeda Corp. ] Net Sales, Gross Profit, and Operating Profit • FY24 2Q Although there is a decrease in sales and profit compared to the same period of the previous year, Building this is due to the significant increase in revenue and profit from major design changes acquired last Constru ction
Slide 24: Maeda Corp. Orders Received and Profit Margin of Orders Received
2-2 . [ Maeda Corp. ] Orders Received and Profit Margin of Orders Received • FY24 2Q Orders from both the public and private sectors have been robust, resulting in an increase compared to the previous period. The profit margin at the time of order intake has also Building Constru exceeded the planne
Slide 25: Topics: Water Business Project First DB Order Secured
2-３. Topics: Water Business Project: First DB (Design-Build Contracting Method) Order Secured Renewal Project of the Settling Basin Pump Building and Terakata Pump Station at the Moriguchi City Moriguchi Treatment Plant（Civil Engineering） Building Constru ction Civil Enginee ring Infrastr ucture Man
Slide 26: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 25
Slide 27: Maeda Corp. Contribution to Profit
3-1-1.[ Maeda Corp. Consolidated ] Regarding Contribution to Profit • FY24 2Q SPCs in operation, including Aichi Road, are performing well.(Details in P.28) Building Constru • FY24 FY The sale of renewable energy projects and development projects, which were ction postponed in the previous fiscal ye
Slide 28: FY24 Full-Year Plan Breakdown
3-1-2.[ Maeda Corp. Consolidated ] FY24 Full-Year Plan Breakdown SPC Operating income of Contribution to profit consolidated subsidiaries Building Constru Non-consolidated SPC ction To other Segment • Operating income of SPCs （Gross profit of EPCs Ozu Sendai international such as Aichi Road concessi
Slide 29: FY24 2Q Results and Full Year Plan of Major Group Companies
3-1-3. FY24 2Q Results and Full Year Plan of Major Group Companies (Infrastructure Management) • Operating income of SPCs in operation, including Aichi Road, has been steady. Building Constru Maeda Corp. Millions of yen ction Miotsukushi Industrial Water Consolidated Aichi Road Concession ※1 Miura C
Slide 30: Major Infrastructure Management Projects in Japan
3-1-4. Major Infrastructure Management Projects in Japan Proven track record in various infrastructure services. POINT Implementing efficient integrated management leveraging the strengths of the private sector. Building Constru ction Comprehensive Facilities Concessions PFI(Service Purchase Typ
Slide 31: Operation and Maintenance Management Project for the Japan National Stadium
3-1-5 Topics: "Operation and Maintenance Management Project for the Japan National Stadium" Selected as the preferred bidder for the concession project for Building “the Japan National Stadium” in June 2024, and is scheduled to operate for 30 ction Constru years from April 2025. Toward a world-class
Slide 32: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 31
Slide 33: Trend of operational and developmental projects of Japan Wind Development
3-2-1. Trend of operational and developmental projects of Japan Wind Development • We are steadily advancing the development of each project by acquiring FIT/FIP. • As of FY24 Q1, the FIT/FIP-acquired projects have increased by approximately 370MW compared Building Constru to FY21, and we will conti
Slide 34: Projects that Japan Wind Development is working on
3-2-2. Projects that Japan Wind Development is working on POINT Building We handle all phases of the wind power business, from development to operation, within our own group. Constru ction Prioritizing coexistence with the community, we always promote development through constant dialogue with t
Slide 35: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 34
Slide 36: MAEDA ROAD Net Sales, Gross Profit, and Operating Profit
4-1.[ MAEDA ROAD Consolidated ] Net Sales, Gross Profit, and Operating Profit • FY24 2Q An increase in revenue and profit compared to the same period last year was achieved, Building primarily in the construction business, due to an abundance of carried-over projects. Constru ction • FY24 FY Through
Slide 37: MAEDA ROAD Construction Business Orders and Profit
4-2. [MAEDA ROAD Consolidated Construction business] Orders Received, Net Sales, Gross Profit, and Operating Profit • FY24 2Q Due to an abundance of carried-over projects and improved profit margins at the time of order, we achieved an increase in revenue and profit compared to the same period last
Slide 38: MAEDA ROAD Manufacturing and Sales Business
4-3.[MAEDA ROAD Consolidated Manufacturing and Sales Business] Net Sales, Gross Profit, and Operating Profit • FY24 2Q Although the Company was affected by the sharp rise in raw material costs mainly in the Building first quarter, the Company has made progress in passing on the cost of raw materials
Slide 39: Topics: Acquisition of shares of DAIKO HOLDINGS
4-3. Topics Acquisition of shares of DAIKO HOLDINGS Co., LTD. We have acquired DAIKO HOLDINGS Co., LTD., a company engaged in civil engineering, security business, construction machinery rental business, transportation business, and road civil engineering, Building as a subsidiary. Constru ction E
Slide 40: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 39
Slide 41: MAEDA SEISAKUSHO Net Sales, Gross Profit, and Operating Profit
5-1. [ MAEDA SEISAKUSHO Consolidated] Net Sales, Gross Profit, and Operating Profit • FY24 2Q Sales of Komatsu products, crawler cranes, and custom-ordered items remained robust, Building resulting in increased revenue and profit compared to the same period last year. Constru ction • FY24 FY Based o
Slide 42: MAEDA SEISAKUSHO Net Sales by Business
5-2.[ MAEDA SEISAKUSHO Consolidated] Net Sales, Gross Profit, and Operating Profit※1 • FY24 2Q In Construction Machinery, the significant growth in sales of large equipment contributed to an increase in revenue and profit compared to the same period last year. In Industrial Machinery & Building Stee
Slide 43: Topics: Acquisition of IWASHITA SEISAKUJYO as a Subsidiary
5-3. Topics : Acquisition of IWASHITA SEISAKUJYO as a Subsidiary We have acquired IWASHITA SEISAKUJYO Co., Ltd., a manufacturer of Building crane booms and other components, as a subsidiary. Constru ction ✓To enhance our competitive advantage in IWASHITA SEISAKUJYO Purpose Location: 1050-7 Nagase, U
Slide 44: Performance Figures
Performance Figures «7 INFRONEER Holdings Inc. 43
Slide 45: Maeda Corp. FY24 2Q Results and Full-Year Forecast
1. [Non-Consolidated] Maeda Corp. FY24 2Q Results and FY24 Full-Year Forecast (Excluding SPCs for infrastructure management segment) (Billions of Yen) FY23 2Q Results FY24 2Q Results YoY FY24 Forecast Progress Net Sales 190.1 202.2 12.1 458.4 44.1% Total 106.8 135.1 28.3 298.5 45.3% Bulding Domestic
Slide 46: MAEDA ROAD FY24 2Q Results and Full-Year Forecast
2. [Consolidated] MAEDA ROAD FY24 2Q Results and FY24 Full-Year Forecast (Billions of Yen) FY23 FY24 FY24 YoY Progress 2Q Results 2Q Results Progress Net sales 118.2 123.8 5.6 261.5 47.4% Construction Business 81.7 86.8 5.1 180.0 48.2% Manufacturing and Sales 36.2 36.6 0.4 81.5 44.9% Others 0.3 0.4
Slide 47: MAEDA SEISAKUSHO FY24 2Q Results and Full-Year Forecast
3.[Consolidated] MAEDA SEISAKUSHO FY24 2Q Results and FY24 Full-Year Forecast (Billions of Yen) FY23 FY24 FY24 YoY Progress 2Q Results 2Q Results Progress Net sales 20.2 21.5 1.3 42.0 51.3% Construction Machinery 11.6 12.5 0.9 23.7 52.7% Industrial Machinery and Steel Products 7.5 7.7 0.2 15.7 49.0%
Slide 48: Japan Wind Development FY24 2Q Results and Full-Year Forecast
4 .[Consolidated] Japan Wind Development FY24 2Q Results and FY24 Full-Year Forecast (Billions of Yen) FY23 FY24 FY24 YoY Progress 2Q Results 2Q Results Forecast Net sales ー 2.0 ー 8.7 22.6% Development ー 0.8 ー 6.4 12.2% O&M ー 1.0 ー 2.0 50.5% Others ー 0.2 ー 0.4 51.1% Gross profit ー 0.3 (13.0%) ー 5.5
Slide 49: Key INFRONEER Group Companies FY24 2Q Results and Forecast
5. FY24 2Q Results and FY24 Full Year Forecast of Key INFRONEER Group Companies • 2Q results show a YoY decline in sales and profit, but the full-year plan is expected to be achieved due to additional contract wins and review of general and administrative expenses. Building Constru ction Maeda Corp.
Slide 50: Business Model of Infrastructure Operations
[Supplementary Material]Business Model of Infrastructure Operations • Infrastructure operations is business that gain profits on every steps from upstream to downstream of infrastructure management. ⑤Sale →Profit on sale (+α) Fund, AM → Dividend, AM Fee Value up!! ④O&M →O&M fee ③EPC →Construction re
Slide 51: Differences between Contribution to Profit and Segment Profit
[Supplementary Material]Differences between “Contribution to profit” and “Segment profit” • ”Contribution to profit” is the actual contribution for managerial accounting purposes, which is the sum of construction Gross profit, other income, and operating income of individual consolidated subsidiarie
Slide 52: Refinancing of bridge loan for the consolidation of JWD
[Supplementary Material] Refinancing of bridge loan for the consolidation of JWD as a subsidiary (Billions of Yen) Green CBs Green CBs Green CBs Green CBs 60.0 60.0 60.0 60.0 Green bonds Green bonds Liabilities Short-term Short-term Short-term 24.0 24.0 borrowings borrowings borrowings 60.9 Short-te
Slide 53: Issuing Integrated Report 2024
[Supplementary Material] Issuing Integrated Report 2024 We have issued the Integrated Report 2024 – INFRONEER's Challenge: Creating Value with Society and Paving the Way to the Future. （Issued on September 30, 2024） POINTS President and CEO Kibe discusses INFRONEER‘s Contents of Integrated Report
Slide 54: News: Appointed as the B.LEAGUE INNOVATION PARTNER
Appointed as the B.LEAGUE INNOVATION PARTNER Initiating efforts towards News1 "Regional Revitalization based on Basketball and Infrastructure" INFRONEER Holdings Inc. has become the B.LEAGUE INNOVATION PARTNER in July. Aiming towards 2026, in collaboration with B.LEAGUE, which is promoting "B.Kakush
Slide 55: Disclaimer
【Disclaimer】 • This financial presentation document is originally in Japanese and has been translated in English. Any texts, figures and descriptions etc. in Japanese document is the original and the English document is for reference purposes only. In case of any conflict or inconsistency between th