Nippon Densetsu Kogyo Co., Ltd. · TSE:1950
Nippon Densetsu Kogyo — FY2023 Earnings Presentation
48 slides from Nippon Densetsu Kogyo's earnings presentation, May 27, 2024
Slide 1: New Medium-term Management Plan Briefing on the Financial Results for FY2023
New Medium-term Management Plan Briefing on the Financial Results for FY2023 (the Fiscal Year Ended March 31, 2024) May 27, 2024 Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
Slide 2: Table of Contents
Table of Contents 1 Company Overview and Structure of NDK Group’s Philosophies 2 Review of the NIPPON DENSETSU Three-year Management Plan 2021 1. Achievement Status of Numerical Targets 2. Results by Segment Long-term Vision 3 NDK Vision90 ５ Financial Results Overview FY2023 1. Direction toward Sust
Slide 3: Company Overview and NDK Group's Philosophy
１ Company Overview and NDK Group’s Philosophy Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 2
Slide 4: Company Overview
1 Company Overview (As of March 31, 2024) NDK Group (consists of 16 subsidiaries and five affiliates) Affiliates are marked with ◯. NIPPON DENSETSU KOGYO CO.,LTD. Company name Description of primary businesses Company name (the Company) NDK Sogo Service Co., Ltd. Sell electrical equipment and materi
Slide 5: Company Overview
1 Company Overview Covers a wide range of construction, Leading company in the field of including construction of electrical construction of electrified railway facilities for buildings (Buildings) and Nationwide business operations equipment (Railways) construction of information and communication
Slide 6: Structure of NDK Group's Philosophies
1 Structure of NDK Group’s Philosophies Corporatemotto: Corporate motto Be bright, Be bright and friendly. embrace harmony, hone youryour Hone skills. skills, and serve Corporate philosophy Servewith with integrity. integrity. We execute our duties safely, reliably, and with a Management customer-fi
Slide 7: Review of the NIPPON DENSETSU Three-year Management Plan 2021
Review of the NIPPON DENSETSU 2 Three-year Management Plan 2021 Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 6
Slide 8: Achievement Status of Numerical Targets
2 ❶ Achievement Status of Numerical Targets Three-year Trend in Financial Results In FY2023, our management indicators exceeded all planned figures, achieving a V-shaped recovery in profit. (Unit: billion yen) FY2020 FY2021 FY2022 FY2023 FY2023 (Results) (Results) (Results) (Plan)* (Results) Summary
Slide 9: Results by Segment
2 ❷ Results by Segment Orders (billion yen) Net sales (billion yen) Operating (billion yen) 125.0 1,250 111.6 117.1 1,250 125.0 111.5 109.1 10.0 100 profit • Despite being affected by the reduction in capital investment 101.3 97.9 100.1 101.4 7.67 100.0 1,000 1,000 100.0 8.0 80 7.01 by railway opera
Slide 10: NDK Vision90
Long-term Vision 3 NDK Vision90 Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 9
Slide 11: Direction toward Sustainable Growth
3 ❶ Direction toward Sustainable Growth Major Strengthening New railway station-front Infrastructure track projects redevelopment Railways Increase in Increase in demand for data demand centers and related to the semiconductors environment I&C Increase systems Buildings Securing and in developing co
Slide 12: NDK Vision90
3 ❷ NDK Vision90 Vision for FY2031 (the 90th Term) With pride and responsibility as a leading company in the field of construction of electrified railway equipment, we aim to become a comprehensive infrastructure facilities construction company NDK Vision90 by expanding our business in construction
Slide 13: Process of Growth toward the NDK Vision90
3 ❸ Process of Growth toward the NDK Vision90 NDK Vision90 Medium-term management plan that will FY2031 (90th term) provide a toehold for NDK Vision90 NIPPON DENSETSU FY2031 Three-year Management Plan 2024 Net sales ¥260.0 bn FY2024–2026 (83rd to 85th terms) NIPPON DENSETSU Operating profit ¥20.0 bn
Slide 14: Investment Plan for Growth ¥75.0 bn
3 ❹ Investment Plan for Growth Utilize cash generated from the sale of strategically-held shares and business operations FY2024–FY2031 (cumulative) Funded by: Used for: Breakdown of investment for growth Human resources ⚫ Secure human resources through attractive performance-based remuneration ⚫ Str
Slide 15: Trend in Dividends
3 ❺ Trend in Dividends We recognize that aiming for sustainable growth in corporate value and returning profit to our shareholders are among Basic policy on our key priorities. Our policy on profit distribution is to determine the amount of dividends with the basic stance of profit distribution cont
Slide 16: NIPPON DENSETSU Three-year Management Plan 2024
New Medium-term Management Plan NIPPON DENSETSU 4 Three-year Management Plan 2024 FY2024 （83rd Term)–FY2026 (85th Term) —Pursuing New Heights— Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 15
Slide 17: Management Targets and Priority Action Items
4 ❶Management Targets and Priority Action Items Theme Management targets Consolidated “Pursuing New Heights” (FY2026) Net sales ¥221.5 bn Pursue new heights as the “Team NDK” Operating profit ¥15.3 bn and feel the growth together Priority Action Items Increase the levels of safety and quality and Cr
Slide 18: Business Strategies
４ ❷ Business Strategies Strengthen the Increase orders from JR East and other JR companies revenue base Targets for FY2026 (Billion yen) ⚫ Strengthen support with design, proposals of equipment renewal, etc. ⚫ Construction for seismic retrofitting, development of areas surrounding a station, various
Slide 19: Business Strategies
４ ❷ Business Strategies Expand the business Increase orders for new and renovated ZEBs domain ⚫ Utilize our 100% ZEB office buildings to strengthen proposals to companies, including those related to JR East Targets for FY2026 Increase orders for construction for energy generation projects (Billion y
Slide 20: Safety Measures
❸ Strategies to Solidify the Management Foundation 4 Safety Measures Efforts for Safety Recognizing “Safety is at the top of agenda in corporate management.” as an unwavering principle, we provide a safe and secure living environment to society through the construction and maintenance of social infr
Slide 21: Increase the Value of Human Resources
❸ Strategies to Solidify the Management Foundation 4 Increase the Value of Human Resources Secure Diverse Human Resources and Increase Employee Engagement Targets for FY2031: Targets for FY2031: Increase the number of construction workers by 20% compared to FY2023 Engagement score: AAA Make the rati
Slide 22: Strengthen Construction Systems and DX and Technology Development
❸ Strategies to Solidify the Management Foundation 4 Strengthen Construction Systems and DX and Technology Development Strengthen Construction Systems Increase productivity through the increased efficiency of on-site operations Improve construction capabilities by strengthening the systems of partne
Slide 23: Reduction of Environmental Impact and Contribution to Local Communities
❸ Strategies to Solidify the Management Foundation 4 Reduction of Environmental Impact and Contribution to Local Communities Reduce GHG Emissions in Business Activities Greenhouse gas emissions from the Company’s own Reduce Scope 1 and 2 emissions in FY2030 by 50% (compared to FY2013) (t-CO2) busine
Slide 24: Risk Management and Strengthening of Governance
❸ Strategies to Solidify the Management Foundation 4 Risk Management and Strengthening of Governance Reconstruct the Risk Management System Prevent Misconducts Verify and reconstruct existing risk management systems Enhance compliance awareness and ensure strict adherence to laws and regulations by
Slide 25: Financial Results Overview FY2023 / Forecast FY2024
Financial Results Overview FY2023 (Consolidated) 5 Financial Results Forecast FY2024 (Consolidated) Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 24
Slide 26: Summary of Financial Results
５ Financial Results Overview FY2023 (Consolidated) Summary of Financial Results Financial results of Business environment Increased dividends FY2023 ⚫ As the impact of COVID-19 ⚫ Achieved increases in net sales ⚫ Achieved a V-shaped recovery eases, public investment and profit due to smooth in profi
Slide 27: Key Points in the Financial Results
５ Financial Results Overview FY2023 (Consolidated) Key Points in the Financial Results ⚫ Orders significantly exceeded the forecast and increased year on year to ¥208.0 billion. ⚫ Net sales exceeded the forecast and increased year on year to ¥194.0 billion. ⚫ Ordinary profit also exceeded the foreca
Slide 28: Financial Results Overview FY2023 (Consolidated)
５ Financial Results Overview FY2023 (Consolidated) (Unit: million yen) Compared to FY2022: +¥25.3 bn Compared to FY2022: +¥21.9 bn Orders Sales Compared to Forecast: +¥1.5 bn Compared to Forecast: +¥34.9 bn 250,000 250,000 208,036 190,660 195,695 192,450 194,031 200,000 182,693 173,130 200,000 172,3
Slide 29: Summary by Business Segment
5 Financial Results Overview FY2023 (Consolidated) Summary by Business Segment Construction of Electrified Construction of Electrical Facilities Construction of Information and Railway Equipment for Buildings Communication Systems •受注高は各鉄道事業者の工事抑 ⚫ Orders increased due to ⚫ Orders increased in a ⚫ O
Slide 30: Financial Results Forecast FY2024 (Consolidated)
5 Financial Results Forecast FY2024 (Consolidated) Key Points in the Financial Results Forecast ⚫ Secure a high level of orders not only from regular customers but also through targeted sales efforts. ⚫ With abundant construction work in hand, secure net sales of ¥205.1 billion, which will be a reco
Slide 31: Financial Results Forecast FY2024 (Consolidated)
５ Financial Results Forecast FY2024 (Consolidated) (Unit: million yen) Backlog Compared to FY2023: +¥16.9 bn Orders Compared to FY2023: -¥10.9 bn 250,000 250,000 208,036 197,100 200,000 182,693 200,000 173,719 172,335 144,252 156,811 144,574 150,000 150,000 100,000 100,000 50,000 50,000 0 0 FY2021 F
Slide 32: Appendix
Ⅵ Appendix Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 31
Slide 33: Financial Results of Construction of Electrified Railway Equipment Segment
Financial Results of 6 Construction of Electrified Railway Equipment Segment (Unit: million yen) Orders Compared to FY2022: +¥19.1 bn Net sales Compared to FY2022: +¥7.7 bn Compared to Forecast: +¥17.9 bn Compared to Forecast: -¥0.8 bn 150,000 150,000 111,604 117,132 111,591 109,970 109,165 101,371
Slide 34: Electrified Railway Equipment Segment: Orders and Net Sales (Disaggregated)
Financial Results of 6 Construction of Electrified Railway Equipment Segment Orders and Net Sales (Disaggregated) (Unit: Billion yen) FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 Other public JR East and private Orders 59.5 44.0 49.5 62.6 railway Orders 10.3 19.3 13.0 12.7 数値未集計 companies
Slide 35: Financial Results of Construction of Electrical Facilities for Buildings Segment
Financial Results of 6 Construction of Electrical Facilities for Buildings Segment (Unit: million yen) Orders Compared to FY2022: +¥4.7 bn Net sales Compared to FY2022: +¥11.5 bn Compared to Forecast: +¥13.6 bn Compared to Forecast: +¥3.2 bn 100,000 100,000 62,541 57,797 50,049 52,943 49,204 47,222
Slide 36: Financial Results of Construction of Information and Communication Systems Segment
Financial Results of Construction of 6 Information and Communication Systems Segment (Unit: million yen) Orders Compared to FY2022: +¥1.5 bn Net sales Compared to FY2022: +¥1.2 bn Compared to Forecast: +¥2.9 bn Compared to Forecast: -¥1.3 bn 50,000 50,000 30,824 28,312 26,775 27,945 28,630 27,319 25
Slide 37: Financial Results of Associated Business Segment
Financial Results of 6 Associated Business Segment (Unit: million yen) Orders Compared to FY2022: -¥0.1 bn Net sales Compared to FY2022: +¥1.3 bn Compared to Forecast: +¥0.3 bn Compared to Forecast: +¥0.4 bn 5,000 5,000 4,602 4,160 3,230 3,261 2,841 2,500 2,500 1,779 1,540 1,585 1,336 1,240 0 0 FY20
Slide 38: Segment Overview
6 Segment Overview Construction of Electrified Railway Equipment (JR and other public and private railway operators) Name of the construction FY2024 FY2025 FY2026 NEW JR East Replacement Works of the Underground Transmission Lines between Warabi and Oji JR East Shinkansen Fukushima Station Inbound A
Slide 39: Segment Overview
6 Segment Overview Construction of Electrical Facilities for Buildings, Information and Communication Systems, and Environmental Energy Name of the construction FY2024 FY2025 FY2026 JR East New Electrical Facilities Installation and Other Works for JR TOKYO GENERAL HOSPITAL Patient Ward Building Rec
Slide 40: Segment Overview: Major Railway-Related Construction Projects
6 Segment Overview Major Railway-Related Construction Projects FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Name of the construction Haneda Airport Access Lines (East Yamanote Route and New Works to relocate obstructions Scheduled to start operation in FY2031 (JR East) Access Lines) Wireless Train Cont
Slide 41: Financial Results Forecast for Electrified Railway Equipment Segment
Financial Results Forecast for 6 Construction of Electrified Railway Equipment Segment (Unit: million yen) Backlog Compared to FY2023: +¥7.9 bn Orders Compared to FY2023: -¥5.6 bn 150,000 150,000 117,132 111,510 101,371 97,936 100,000 100,000 77,860 79,117 83,604 75,638 50,000 50,000 0 0 FY2021 FY20
Slide 42: Financial Results Forecast for Electrical Facilities for Buildings Segment
Financial Results Forecast for 6 Construction of Electrical Facilities for Buildings Segment (Unit: million yen) Backlog Compared to FY2023: +¥6.4 bn Orders Compared to FY2023: -¥9.6 bn 100,000 100,000 69,919 63,467 57,797 59,558 47,222 49,870 47,061 50,000 50,000 42,507 0 0 FY2021 FY2022 FY2023 FY2
Slide 43: Financial Results Forecast for Information and Communication Systems Segment
Financial Results Forecast for Construction of Information 6 and Communication Systems Segment (Unit: million yen) Backlog Compared to FY2023: -¥0.5 bn Orders Compared to FY2023: +¥1.5 bn 50,000 50,000 26,775 28,280 25,180 23,654 22,405 25,000 25,000 18,115 17,263 16,719 0 0 FY2021 FY2022 FY2023 FY2
Slide 44: Financial Results Forecast for Environmental Energy Segment
Financial Results Forecast for 6 Construction for Environmental Energy Segment (Unit: million yen) Backlog Orders Compared to FY2023: +¥1.2 bn 5,000 5,000 4,270 2,983 2,500 2,500 0 0 FY2023 FY2024 Forecast Net sales Compared to FY2023: -¥1.1 bn Operating profit Compared to FY2023: +¥0.0 bn 10,000 1,
Slide 45: Financial Results Forecast for Associated Business Segment
Financial Results Forecast for 6 Associated Business Segment (Unit: million yen) Backlog Compared to FY2023: -¥0.1 bn Orders Compared to FY2023: +¥1.5 bn 500 5,000 443 328 3,170 280 229 2,500 250 1,779 1,585 1,336 0 0 FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 Forecast Net sales Compare
Slide 46: NIPPON DENSETSU Three-year Management Plans
6 NIPPON DENSETSU Three-year Management Plans V-shaped recovery achieved in FY2023 Secure profit to grow sustainably Three-year Three-year Three-year Three-year Three-year Three-year management plan management plan management plan management plan management plan management plan 250.0 2009 2012 2015
Slide 47: Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 46
Slide 48: Forecast Notice and Inquiries
Please note that the forecast figures presented in this document were prepared based on the information available to the Company at the time they were prepared, and actual results may differ from the forecasts in the document due to fluctuation of the levels of various risks and uncertainties and ch