Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — H1 FY03/2025 Earnings Presentation
35 slides from Tokyu Construction's earnings presentation, Nov 19, 2024
Slide 1: The First Half Financial Results Briefing
FY03/2025 The First Half Financial Results Briefing November 19, 2024
Slide 2: The First Half Results and Full-year Forecast
FY03/2025 The First Half Results and Full-year Forecast The First Half FY03/2025 Financial Results Briefing
Slide 3: First Half FY03/2025 Financial Highlights
First Half FY03/2025 Financial Highlights The results for the first half were in line with the plan established at the beginning of the period. Orders progressed as planned, since the firm demand was steadily taken in. Profitability at the time of order receipt improved. Net sales declined compared
Slide 4: Consolidated Financial Results
Consolidated Financial Results Consolidated financial results saw a fall in revenue and profit due to a decrease in completed construction sales and an increase in selling, general, and administrative expenses. The profit margin of construction projects on hand has been improving. The interim divide
Slide 5: Factors Affecting Net Income
Factors Affecting Net Income Completed construction gross profit declined due to a decrease in completed construction sales. Profit fell due to lower gross profit from the real estate business, etc., higher selling, general, and administrative expenses associated with human resource investment, as w
Slide 6: FY03/2025 Financial Forecast Highlights
FY03/2025 Financial Forecast Highlights B o t h o r d e r s a n d n e t s a l e s p r o g r e s s e d a s p l a n n e d i n t h e f i r s t h a l f. We w i l l s t e a d i l y i m p l e m e n t t h e “ R e s t r u c t u r i n g o f o u r e a r n i n g c a p a c i t y ” m e a s u r e , w h i c h w e
Slide 7: Consolidated Financial Results Forecast
Consolidated Financial Results Forecast Net sales are expected to exceed 300.0 billion yen, due to steady progress in both building construction and civil engineering projects on hand. We will maintain the basic policy of a dividend on equity ratio (DOE) of at least 4.0% as our shareholder return po
Slide 8: Non-Consolidated Building construction (Completed construction sales and gross profit)
Non-Consolidated ／ Building construction（Completed construction sales・Completed construction gross profit） Completed construction sales in the first half decreased compared with the same period of the previous fiscal year, when there were many construction projects at their peak. The full-year outlo
Slide 9: Non-Consolidated Building construction (Orders)
Non-Consolidated ／ Building construction（Orders） The results for the first half were on track. Amid strong demand, we will secure orders for our focus projects with an expected total of 210.0 billion yen for the full year. We aim to fur ther improve profitability at the time of order receipt. Orders
Slide 10: Non-Consolidated Civil engineering (Completed construction sales and gross profit)
Non-Consolidated ／ Civil engineering（Completed construction sales・Completed construction gross profit） Co m p let ed c o n s tr u c tio n s a les in o v e r s e as p r o j e c t s d e c r e a s ed y e ar o n y e a r in the f ir s t h a lf. Ba s e d o n th e p r o g r e s s o f c o n s t r u c tio n
Slide 11: Non-Consolidated Civil engineering (Orders)
Non-Consolidated ／ Civil engineering（Orders） The number of Tokyu Group projects, prima rily focused in Shibuya , increa sed. We stea dily received orders, mainly for tunnel construction from the Ministry of La nd, Infra structure, Transport and Tourism. We plan to receive orders for large-sca le ove
Slide 12: Construction Renewal
Construction Renewal In a favorable market environment, per formance remained steady, targeting schools, commercial facilities, and hotels. The results for the first half include net sales of 9.8 billion yen and a gross profit margin of 12.5%. • The RN market continues to expand, with capital invest
Slide 13: International
International Prioritize both ODA projects and private sector construction as essential initiatives for this business. Strive to expand the business area to both upstream and downstream of the value chain by par ticipating in TOD *1. • Know-how and technology we cultivated Net Sales /Gross Profit ※
Slide 14: Real estate
Real estate Targeting environment-conscious customers, provide environmenta lly friendly properties with added value, such a s leasing, development, a nd renewa l of old properties by levera ging synergy with construction business. Increase capita l efficiency through cyclica l rea l esta te busines
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets The equity ratio was at 40.2％, increase of 2.4 percentage points compared with March 31, 2024. D/E ratio was 0.43 times due to a decrease in borrowings. Increase/decrease factors As of March A s o f Se pt e mbe r YoY − Assets （Millions of yen） 31, 2024 30, 2024 • Cash and
Slide 16: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Cash was up year on year due to a decrease in trade receivables. 1H 1H 1 H F Y 0 3 / 20 25 re ma rks （Millions of yen） FY03/2024 FY03/2025 Cash flows from operating Cash grew due to a decrease in trade receivables (49,852) 15,984 and an increase in advances rece
Slide 17: Shareholder returns
Shareholder returns We plan to pay an annual dividend of 38 yen per share. While recognizing the importance of capital eff iciency, 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 shareh
Slide 18: Progress in Efforts to Realize Management Conscious of Capital Costs and Stock Prices
Progress in Efforts to Realize Management That Is Conscious of Capital Costs and Stock Prices The First Half FY03/2025 Financial Results Briefing
Slide 19: Measures for the recognition and improvement of current situation from a PBR perspective
Measures for the recognition and improvement of current situation from a PBR perspective Promote capital-efficiency-conscious management to improve the current PBR which has fallen below 1.0. We have focused on measures to improve ROE and reduce capital costs through effor ts to restructure our earn
Slide 20: Restructuring of our earning capacity: Enhancement of the sales capability
R e d u ce I mp rov e R O E ca p i tal cos t s Restructuring of our earning capacity “Enhancement of the sales capability ” We have steadily advanced the restructuring of our earning capacity. Enhancing the sales capability produced strong results, leading to steady growth in orders. Prof itability
Slide 21: Reduction of Low-Performing Assets (Strategic Shareholdings)
R e d u ce I mp rov e R O E ca p i tal cos t s Reduction of Low-Per forming Assets (Strategic Shareholdings) We judge the a ppropria teness of holdings ba sed on ca pita l efficiency a nd strategic significance (as to business synergy a nd securing sta ble profit, etc.). In accordance with our reduc
Slide 22: Urban Development in Shibuya: Numerous Achievements
Reduce capital I mp rov e R O E costs Acquisition of Market Oppor tunities by Leveraging Our Strength Urban Development in Shibuya“Numerous Achievements” We have completed numerous construction projects, including Shibuya Scramble Square. SHIBUYA MARK CITY CERULEAN TOWER SHIBUYA SCRAMBLE SQUARE SHIB
Slide 23: Urban Development in Shibuya: Three Strengths
Reduce capital I mp rov e R O E costs Acquisition of Market Oppor tunities by Leveraging Our Strength Urban Development in Shibuya“Three Strengths” Utilizing our three strengths, “technology, expertise and teamwork,” we have contributed to town planning in Shibuya, an area known for its challenging
Slide 24: Urban Development in Shibuya: Future potential
Reduce capital I mp rov e R O E costs Acquisition of Market Oppor tunities by Leveraging Our Strength Urban Development in Shibuya“Future potential” We have executed difficult construction projects in Shibuya, leveraging our technology, expertise and teamwork. Shibuya has huge future potential with
Slide 25: Three values, Digital Technology
Reduce capital I mp rov e R O E costs Acquisition of Market Oppor tunities by Leveraging Our Strength Three values,Digital Technology E n hanc e o u r p r es en c e in the thr ee s t r a te g ically im p o r t a nt a r e as w h e r e w e p r o v id e v alue: d ec a r b o n izatio n , ze r o w a s t
Slide 26: Reforming Business Portfolio and Expanding Human Resource Investment
Reduce capital I mp rov e R O E costs Reforming Business Por tfolio and Expanding Human Resource Investment Reallocate FY2030 business portfolio to 75% for the Core Business and 25% for the strategic business. Expand human resource investment to accelerate the revision of personnel portfolio includi
Slide 27: Cash Allocation (Plan for FY2024–FY2030)
Cash Allocation (Plan for FY2024–FY2030: Revised as of May 2024) We will invest 122.0 billion yen by FY03/2031 a s pa rt of a growth investment to reform our business portfolio. Operating ca sh flows a nd proceeds from the sa le of stra tegic sha reholdings will be allocated to fund growth investmen
Slide 28: Long-Term Management Plan "To zero, from zero."
Long-Term Management Plan “To zero, from zero.” （Rolling the plan in May 2024） Introduced a management cycle with a ten-year long-term plan and a one-year short-term strategy. With a long-term target, implement rolling plan flexibly. Respond to severe changes in business environment and strengthen h
Slide 29: Appendix
【Appendix】 The First Half FY03/2025 Financial Results Briefing
Slide 30: Non-consolidated Financial Results
Non-consolidated Financial Results 1H 1H FY03/2025 Rate of FY03/2024 YoY Change （Millions of yen） Results Forecast Ratio Net Sales 124,952 107,749 100％ (13.8%) (17,202) Completed construction sales 124,284 107,037 99.3％ (13.9%) (17,246) Bu ild ing c o n s t r u c tio n 95,713 81,411 75.5％ (14.9%) (1
Slide 31: Non-consolidated Financial Results Forecast
Non-consolidated Financial Results Forecast FY03/2024 FY03/2025 Rate of YoY （Millions of yen） Results Forecast Ratio Change Net Sales 260,626 282,000 100％ +8.2% +21,373 Completed construction sales 259,208 279,000 98.9％ +7.6% +19,791 Bu ild ing c o n s tr uc tio n 192,909 201,000 71.3％ +4.2% +8,090
Slide 32: Non-Consolidated Order Forecast
Non-Consolidated Order Forecast FY03/2024 FY03/2025 Rate of YoY （Millions of yen） Results Forecast Change Domestic public 27,717 30,000 +8.2% +2,282 Domestic private 190,890 180,000 (5.7%) (10,890) General private 172,924 150,000 (13.3%) (22,924) Tokyu Group 17,965 30,000 +67.0% +12,034 Overseas 158
Slide 33: Efforts to Prevent Recurrence of Quality Problems, Improve Construction Quality, and Restore Trust
Effor ts 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. Sharin
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: Notes
[Inquiries] Nishida/Morita/Hashimoto Corporate Communication 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 th
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