Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — H1 FY03/21 Earnings Presentation
27 slides from Tokyu Construction's earnings presentation, Nov 17, 2020
Slide 1: The First Half FY03/21 Financial Results Briefing
The First Half FY03/21 Financial Results Briefing Nov. 17, 2020
Slide 2: Contents
Contents The First Half FY03/21 Financial Results Briefing 1．Business Environment 2. Overview of the First Half FY03/21 Financial Results 3．Full-Year Forecast for FY03/21 This briefing material includes our earnings forecasts and projections. 4．Basic Mindset for Formulation of Vision Please note tha
Slide 3: Business Environment
１ Business Environment Business Environment in 1H FY03/21 １．The economy: COVID-19 continued to take a major toll on corporate earnings, and the job market remained weak. However, income held steady, and consumer spending is picking up. ２．The construction market: Government construction outlays picke
Slide 4: Overview of the First Half FY03/21 Financial Results
Financial Results Briefing ２．Overview of the First Half FY03/21 Financial Results (Apr.–Sep. 2020) 1H initially expected to be a slow period as major projects played out Consolidated net sales half of previous year’s record high, due in part to the COVID-19 pandemic Orders up more than 70% yea
Slide 5: 1H FY03/21 Results (Consolidated)
２ 1H FY03/21 Results (Consolidated) Consolidated net sales were down 48.0% year-on-year, profit attributable to owners of parent was -93.4%. Both net sales and profit were down sharply from record-highs a year ago amid peak in major projects. (Millions of yen) 1H FY03/21 Difference compared Rate of
Slide 6: Factors Affecting Net Income (Consolidated)
1H FY03/21 ２ Factors Affecting Net Income (Consolidated) Profit attributable to owners of parent was down due to sharp decline in completed construction gross profit. Extraordinary losses consisted of write-downs on investment securities. (Millions of yen) Increase in Decline in Decline in real esta
Slide 7: 1H FY03/21 Results (Non-Consolidated)
1H FY03/21 ２ 1H FY03/21 Results (Non-Consolidated) Net sales were down 48.6% year-on-year due to decline in completed construction sales in both civil engineering and building construction as major projects played out. Net income was down 95.6%, mainly due to drop in completed construction gross pro
Slide 8: Net Sales (Non-Consolidated)
1H FY03/21 ２ Net Sales (Non-Consolidated) Civil engineering sales declined in a fall-off from major joint-venture subcontracting work recorded a year ago. Building construction was hit by a fall-off from Shibuya redevelopment and other major projects as well as delayed receipt of orders in FY03/20.
Slide 9: Gross Profit (Non-Consolidated)
1H FY03/21 ２ Gross Profit (Non-Consolidated) Civil engineering was partially hit by the impact of COVID-19 on overseas work and few projects reached completion, resulting in meager improvement on additional work. Building construction profit margin was down 6.1pt from 1H FY03/20, which saw sharp imp
Slide 10: Financial Position and Cash Flow (Consolidated)
1H FY03/21 ２ Financial Position and Cash Flow (Consolidated) Net assets fell to ¥100.5bn due to dividends of surplus. The equity ratio was 39.7%. [Consolidated Financial Position] (Millions of yen) Items March 31, March 31, Sep.30, Rate of YoY change -1,153 2019 2020 2020 change ・ Profit attributabl
Slide 11: Orders (Non-Consolidated, Company-Wide)
1H FY03/21 ２ Orders (Non-Consolidated, Company-Wide) Domestic public and domestic general private projects were both up sharply year-on-year. Overall orders came to ¥122.3bn, 37% of the ¥325bn full-year forecast. The Company will steadily obtain orders for scheduled projects going forward. Overseas
Slide 12: Orders (Non-Consolidated, Civil Engineering)
1H FY03/21 ２ Orders (Non-Consolidated, Civil Engineering) Overall civil engineering orders were down 13.3% due to a fallback in domestic private sector orders although domestic public sector orders were up sharply year-on-year. Overseas 38,895 Tokyu Group (Millions of yen) Private Public Difference
Slide 13: Orders (Non-Consolidated, Building Construction)
1H FY03/21 ２ Orders (Non-Consolidated, Building Construction) General private-sector orders surged 126% year-on-year thanks largely to large-scale logistics warehouse projects. In October onward as well, the Company will steadily accumulate planned projects including large-scale logistics warehouses
Slide 14: Full-Year Forecast for FY03/21
Financial Results Briefing ３．Full-Year Forecast for FY03/21 Aug. 6 announced full-year forecast revised in light of the impact of COVID-19 Consolidated net sales forecast revised to ¥230bn (from ¥244bn) Operating income forecast revised to ¥4.0bn (from ¥6.8bn) due to decline in completed const
Slide 15: Full-Year Forecast for FY03/21 (Consolidated)
３ Full-Year Forecast for FY03/21 (Consolidated) Aug. 6 announced full-year forecast was revised down on account of emerging COVID-19 impact. [Consolidated profit/loss] Sales and profit were down sharply year-on-year due to the Company’s own unique factors, namely Net sales ¥230.0 billion playing o
Slide 16: Factors Contributing to YoY Change
３ Factors Contributing to YoY Change Full-Year Forecast for FY03/21 in Full-Year Outlook Q1 Consolidated Full-Year Forecast Difference compared ①Difference ②Difference As of Q2 projection profit/loss for FY03/21 to previous year factors(original) factors(COVID19) (Nov. 9) (Aug. 6) Millions of Millio
Slide 17: Completed Construction Sales and Gross Profit (Civil Engineering)
３ Completed Construction Sales and Gross Profit Full-Year Forecast for FY03/21 (Non-Consolidated, Civil Engineering) Completed construction sales were down from previous year’s record high recorded on major joint- venture subcontracting work. Prospects for FY03/21 profit margin improvement are slim
Slide 18: Completed Construction Sales and Gross Profit (Building Construction)
３ Completed Construction Sales and Gross Profit Full-Year Forecast for FY03/21 (Non-Consolidated, Building Construction) Completed construction sales declined in FY03/21 due to playing out of Shibuya redevelopment and other large-scale projects, and postponement of orders and construction starts on
Slide 19: Non-Consolidated Orders
Full-Year Forecast for FY03/21 ３ Non-Consolidated Orders Although FY03/21 earnings are expected to be down, orders, a leading indicator, are expected to come in from large-scale warehouses and other relatively solid Orders ¥325.0 billion areas in spite of COVID-19. (Millions of yen) (+68.1% YoY) FY0
Slide 20: Topics ① Use of Digital Technologies
３ Topics ① Use of Digital Technologies We are strengthening construction business and searching out new potential using digital technologies in partnership with various leading edge companies based on BIM/CIM data. From individual Virtual Reality to Proving trials for use in building shared Virtual
Slide 21: Topics ② Action on Climate Change
３ Topics ② Action on Climate Change Amid growing calls for carbo-free society, we are aggressively working toward solutions to the challenges posed by climate change. “We will work to prevent contamination and We have set emissions reduction targets to Environ- protect the environment, and promote k
Slide 22: Topics ② Action on Climate Change
３ Topics ② Action on Climate Change Using our accumulated technologies to help reduce GHG emissions as well as make proactive proposal for new business opportunities Use of reduced burden ZEB (net Zero Energy Buildings) materials ZEB renovations at Institution of Technology, which Use of CELBIC envi
Slide 23: Basic Mindset for Formulation of Vision 2030 and Long-Term Management Plan
Financial Results Briefing ４. Basic Mindset for Formulation of Vision 2030 and Long-Term Management Plan Following on from our Vision 2020, we are currently formulating our “Vision 2030” and 10-year “Long-Term Management Plan” for achieving that vision (scheduled to be released in May 2021). We
Slide 24: From Vision 2020 to FY03/20 results
４ From Vision 2020 to FY03/20 results Vision 2020 Market environment & earnings: The domestic construction market environment has improved significantly, and after rapid recovery in business performance, it remained at a high level through FY03/20 that ended March 2020. Construction business: Re
Slide 25: Current Status (FY03/21 Outlook)
４ Current Status (FY03/21 Outlook) Start of the fiscal year Due to the unpredictable nature of the impact of COVID-19, we postponed the disclosure of full-year outlook when we reported FY03/20 results, and put out annual projections net of the impact of COVID-19 at our FY03/20 results briefing.
Slide 26: Basic Mindset for Formulation of Vision 2030
４ Basic Mindset for Formulation of Vision 2030 and Long-Term Management Plan Aiming to maximize corporate value both financially and non-financially by establishing the “Tokyu Construction Brand” as a unique position within the industry by assembling a strategy centered on delivering three values:
Slide 27: Inquiries
[Inquiries] Nishida/Uchida Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp 26
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