Infroneer Holdings Inc. · TSE:5076
Infroneer — Q3 FY2021 Earnings Presentation
49 slides from Infroneer's earnings presentation, Feb 14, 2022
Slide 1: FY2021 3rd Quarter Financial Presentation
FY2021 3rd Quarter Financial Presentation INFRONEER Holdings February 14, 2022
Slide 2: About FY2021 3Q financial results
About FY2021 3Q financial results １．Financial Statements • We disclose "Summary of Consolidated Financial Results for the Nine Months Ended December 21, 2021" as of INFRONEER Holdings Inc. ※ On 2nd quarter financial presentation, We disclosed financial statements of Maeda Corporation, Maeda Road Con
Slide 3: FY2021 3Q Financial Results Briefing Contents
FY2021 3Q Financial Results Briefing Contents １．Points Appendix ２．Overview １ ．FY2021 Profit and Loss Statement of Three Companies (Non-consolidated) ３．Transition of Contract Backlogs ２ ．[Non-Consolidated] Segment Net Sales and Gross Profit of Maeda Corp. (Building Construction and Civil Engineering)
Slide 4: 1. Points
1．Points ①About FY2021 financial results (page 4) • Progress of 3Q business performance against full year forecast is low but we will achieve full year forecast. • Net income is expected to be record high, compared with former consolidated net income of MK. ②Outlook (page 8 to 25) • Amount of backlo
Slide 5: 2. Overview
2．Overview （Billions of Yen) • Progress of 3Q business performance against full year forecast is low but we Net Sales will achieve full year forecast. 750 714.4 • Net income is expected to be record high, compared with former 700 710.0 678.1 consolidated net income of MK. (Billions of Yen) 650 600 M
Slide 6: 3. Transition of Contract Backlogs
3．Transition of Contract Backlogs (Building Construction and Civil Engineering) • Contract backlogs will be record high level at March 31, 2022. • Our cost management increases profit margin on orders. • Profit margin on orders of building construction is 8.4% on 3Q and we will achieve our full year
Slide 7: 4. Results and Forecast of Capital Strategies & Return Policies
4．Results and Forecast of Capital Strategies & Return Policies Medium-term Vision 2024 Results/Forecast Notes Capital ROE 9.5％ 8.1% Forecast at the end of FY21 effect More than Optimal Equity ratio 30％ 37.7% ３Q capital structure Less than D/E ratio 0.6 times 0.6 times ３Q Dividend payout More than ra
Slide 8: 5. Segment Net Sales and Profit
5．Segment Net Sales and Profit （Billions of Yen) Progress (1)FY2021 Forecast (2)FY2021 3Q Results Segments Classification (2)/(1) Net sales 710.0 482.3 67.9% Maeda Corp. Building Construction 227.2 152.6 67.2% Building Building Construction Construction Civil Engineering 150.3 99.2 66.0% (include re
Slide 9: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 8
Slide 10: 6. Building Construction: Trends in Net Sales and Gross Profit
Building Construction 6．Building Construction : Trends in Net sales and Gross Profit (Maeda Corp. Non-Consolidated) • FY21 3Q Construction revenue and profit progressed steadily as last 3Q. • FY21 FY Construction revenue, profit and profit margin are expected to outperform last year. • After FY21 In
Slide 11: 7. Building Construction: Orders Received and Profit Margin on Orders
Building Construction 7．Building Construction : Orders Received and Profit Margin on Orders (Maeda Corp. Non-Consolidated) • FY21 3Q The ratio of Public orders increased due to orders for concession-related projects. • FY21 FY Orders received is slightly lower than our forecast announced at the begi
Slide 12: 8. Building Construction: Types of Orders Received
Building Construction 8．Building Construction : Types of Orders received (Maeda Corp. Non-Consolidated) • FY21 3Q & FY The ratio of "Factories and power plants, warehouses and logistics facilities" increase due to the orders for biomass power plants and logistics facilities. Order ratio 【 】 indicate
Slide 13: Segment Highlights: Civil Engineering
Civil Engineering Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 12
Slide 14: 9. Civil Engineering: Trends in Construction Revenue and Profit
Civil Engineering 9．Civil Engineering : Trends in Construction Revenue and Construction Profit (Maeda Corp. Non-Consolidated) • FY21 3Q&FY Excluding special factors in previous years (FY19: return of provision for overseas disputes, FY20: orders of large-scale design changes), construction revenue a
Slide 15: 10. Civil Engineering: Orders Received and Profit Margin on Orders
Civil Engineering 10．Civil Engineering : Orders Received and Profit Margin on Orders (Maeda Corp. Non-Consolidated) • FY21 3Q Decrease orders from public sector due to fiercer competition but increase orders from private sector. Orders received and profit margin on orders were slightly decreased com
Slide 16: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 15
Slide 17: 11. Contribution to Consolidated Profits
Infrastructure Operations 11．Contribution to Consolidated profits • FY21 3Q Renewable energy and concession business are performing steadily. • FY21 FY Concession business remains stable. We will sell several renewable energy business and gain profit. (Billions of Yen) FY2016 FY2017 FY2018 FY2019 FY
Slide 18: 12. Contributions of Infrastructure Operation Segment to Consolidated Profit
Infrastructure Operations 12．Contributions of infrastructure operation segment to the consolidated profit ・”Contribution of infrastructure management business to consolidated profits“ Re-posting of FY21 2Q material = “Profits from construction projects (EPC) generated by the infrastructure operation
Slide 19: 13. Renewable Energy Projects
Infrastructure Operations 13．Renewable Energy Projects Total Project Costs Projects Locations AC FIT Prices (Billions of Yen) Status Tsukuba City, 2013/3 Ibaraki Pref. 2 MW 40 JPY Approx. 0.6 Completed Ofunato City, 2015/8 Iwate Pref. 18 MW 40 JPY Approx. 6.4 Completed Photovoltaic Kitaibaraki City,
Slide 20: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 19
Slide 21: 14. Road Paving: Construction Business Orders, Revenue and Profit
Road Paving 14．Road Paving ー Construction business : Orders, Construction revenue and profit • FY21 3Q Although Profit did not increase in the first half due to low completions of large projects, (results for 2Q: 8.2%. ） profit improved in the second half as these projects were completed. (results f
Slide 22: 15. Manufacturing and Sales Business: Net Sales and Gross Profit
Road Paving 15．Manufacturing and sales Business: Net Sales and Gross Profit • FY21 3Q Significant decrease in profits due to high price of crude oil despite sales price increases. • FY21 FY We have tried to pass on sales price increases in crude oil prices, but rise in crude oil prices has been high
Slide 23: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 22
Slide 24: 16. Machinery: Net Sales and Gross Profit
Machinery 16．Machinery : Net Sales and Gross Profit • FY21 3Q Sales and maintenance orders of construction machinery, and industrial machinery (Spider crane) are steady growth. • FY21 FY Despite concerns about the impact of delays in component supply , sales are expected to achieve the full year for
Slide 25: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 24
Slide 26: 17. Financial Results and Forecast for Major Companies in Others Segment
Others 17． Financial Results and Forecast for major companies in "Others" segment (Millions of yen) 3Q Full Year FY20 FY21 FY20 FY21 YoY YoY Results Results Results Forecast Net sales 16,268 15,509 -759 23,014 21,000 -2,014 FBS Operating profit 625 712 +87 995 940 -55 Ordinary profit 651 738 +87 1,0
Slide 27: Appendix
Appendix «7 INFRONEER Holdings Inc. 26
Slide 28: 1. FY2021 Profit and Loss Statement of Three Companies
１．FY2021 Profit and Loss Statement of Three Companies (Non-consolidated) (Billions of yen) Maeda Corp. (Non-consolidated) Maeda Road (Consolidated) Maeda Seisakusho (Consolidated) FY2020 FY2021 YoY FY2020 FY2021 YoY FY2020 FY2021 YoY Results Results ＋/ー ％ Results Results ＋/ー ％ Results Results ＋/ー ％
Slide 29: 2. Segment Net Sales and Gross Profit of Maeda Corp.
Maeda Corp. ２．[Non-Consolidated] Segment Net Sales and Gross Profit of Maeda Corp. 3Q Full Year (Billions of yen) FY2020 FY2021 FY2020 FY2021 YoY YoY Results Results Results Forecast Net Sales 262.7 254.8 -7.9 366.1 386.0 +19.9 Total 153.9 152.5 -1.3 214.4 226.4 +12.0 Building Domestic 153.4 152.5 -
Slide 30: 3. Segment Net Sales and Gross Profit of Maeda Road
Maeda Road ３．[Consolidated] Segment Net Sales and Gross Profit of Maeda Road 3Q Full Year (Billions of yen) FY20 FY21 FY20 FY21 3Q 3Q YoY YoY Results Forecast Results Results Net Sales 166.8 169.1 +2.3 234.6 240.0 +5.4 Construction Business 113.1 115.8 +2.7 160.5 163.7 +3.2 Production and sales 53.3
Slide 31: 4. Segment Net Sales and Gross Profit of Maeda Seisakusho
Maeda Seisakusho ４．[Consolidated] Segment Net Sales and Gross Profit of Maeda Seisakusho 3Q Full Year (Billions of yen) FY20 FY21 FY20 FY21 2Q 2Q +/- YoY Results Forecast Results Results Net sales 23.3 26.0 +2.7 33.5 35.7 +2.2 Construction Machinery 16.0 16.8 +0.8 22.4 21.7 -0.7 Industrial and steel
Slide 32: 5. Financial Results and Forecast for Major Equity Method Affiliates
Maeda Corp. ５．FY2021 Financial Results and Forecast for Major Equity method affiliates (Millions of yen) 3Q Full Year Toyo Construction FY2020 FY2021 FY2020 FY2021 YoY YoY Results Results Results Forecast Net sales 109,952 101,497 -8,456 154,799 152,500 -2,299 Operating profit 7,816 4,610 -3,206 12,
Slide 33: 6. Topics – Winning Contracts for Major Multipurpose Building Projects
Maeda Corp. ６．Topics – Focusing on Winning Contracts for Major Multipurpose Building Projects Harumi 5-chome West Area The new Aichi Prefectural Gymnasium Urban Redevelopment Project Building Project Aim to create a diversified and lively town with families raising Aim to create a symbolic facility
Slide 34: 7. Topics – Large-Scale Construction Projects for Various Applications
Maeda Corp. ７．Topics – Focused on initiatives to get orders for large-scale construction projects for a variety of applications NEW （Tentative) ESR Fukuoka Amaki Distribution Center for New Construction Located near the Tosu JCT, a key logistics point in Kyushu, the facility covers deliveries to the
Slide 35: 8. Topics – Large-Scale Renewal and Renovation Work on Expressways
Maeda Corp. ８．Topics – Touchstone for acquiring orders for large-scale renewal and renovation work on expressways and other roads Ami construction work on the Metropolitan Area Central Link Expressway (Ken-o Expressway) Earthwork for the conversion of the Metropolitan Area Central Link Expressway be
Slide 36: 9. Topics – First ECI Order from Ministry of Land, Infrastructure, Transport and Tourism
Maeda Corp. ９．Topics – First Order of ECI (Early Contractor Involvement ) from Ministry of Land, Infrastructure, Transport and Tourism NEW Omachi Dam etc. Reorganization Project –Technical cooperation for earth transport tunnels construction Transport Tunnel & Belt Conveyer Project Image Earth and s
Slide 37: 10. Topics – Ongoing Infrastructure Operations
Maeda Corp. 10．Topics – Ongoing Infrastructure Operations Happo Wind Farm Project Aichi Road Concession Manufacturer GE Output 3,200 kW Rotor diameter 103m Hub height 84m A 20MW onshore wind power generation While toll revenues declined due to widespread project in Happo-cho, Akita Prefecture, Japan
Slide 38: 11. Topics – Osaka City Industrial Water Supply Specified Operation Project
Maeda Corp. 11．Topics – Osaka City Industrial Water Supply Specified Operation Project, etc. • Japan's first private-sector business licensed by the Minister of Economy, Trade and Industry to operate as industrial water utility • Japan's first all-in water concession project including monitoring, ma
Slide 39: 12. Topics – Construction Business
Maeda Road 12．Topics – Construction business Construction business (road paving and civil engineering) Extensive development of large-scale expressways, airports, harbors, sports facilities, private parking lots, etc. Tokyo-Nagoya Expressway, Fuji area Oita Airport Okazaki City Ryuhoku Sports Park S
Slide 40: 13. Topics – Comprehensive Management
Maeda Road 13．Topics – Comprehensive management Fuchu City (East area) Comprehensive Road Management Project Fuchu City East area Regular meeting Road cleaning Target area Road repair Planting Management Business activities that continue to grow with “community” and “people” Road Management Center •
Slide 41: 14. Topics – Introducing Attractive Products to the Market
Maeda Seisakusho 14．Topics – Introducing attractive products to the market ・Launched sale of our own carbon neutral products to the world. Fully-Electric spider crane powered by lithium-ion battery Zero Emissions ■Ecological, Economical and Efficient work by High-performance lithium-ion battery ■Adv
Slide 42: 15. Dividends for the Earth
15．Dividends for the Earth INFRONEER HD has taken over the system 「Dividends for the Earth」 that Maeda Corp. has been working on since 2010, then promote activities that actively involve employees and their families in cooperation with local communities and NPOs. Subject of Dividend to the Earth Cat
Slide 43: 16. Segments
Re-posting of FY21 2Q material 16．Segments • Segments of INFRONEER Holdings and Maeda Corporation will be changed. • There will be no major changes in performance figures due to the change in segments. NEW Segment of INFRONEER Holdings FORMER Segment of Maeda Corporation MK Building Construction Bui
Slide 44: 17. Changes in Consolidated Financial Results of Maeda Corporation and INFRONEER Holdings
Re-posting of FY21 2Q material 17．Changes in Consolidated Financial Results of Maeda Corporation and INFRONEER Holdings • Profit attributable to non-controlling interests is decreased • Profit of MD and MS of second half year of FY21will be profit attributable to owners of parent of INFRONEER Holdin
Slide 45: 18. Business Model of Infrastructure Operations
Re-posting of FY21 2Q material 18．Business Model of Infrastructure Operations • Infrastructure operations is business that gain profits on every steps from upstream to downstream of infrastructure management. ⑤Sale →Profit from sale (+α) Fund, AM → Dividend, AM Fee Value up!! ④O&M →O&M fee ③EPC →Con
Slide 46: 19. Point of Our Strategy
Re-posting of FY21 2Q material 19．Point of Our Strategy ①Concept of our management •Pursuing exquisite balance with centripetal power of the holdings company and centrifugal power of the three companies and aim for explosive improvement of corporate value. ②Our Goal •Sharing strategy of “Integrated
Slide 47: 20. Our Goal
Re-posting of FY21 2Q material 20．Our Goal • Strongly promote “integrated infrastructure service company” that manages both upstream and downstream of infrastructure operation business aiming to establish a business model that realizes sustainable growth without being influenced by external factors.
Slide 48: 21. Management Target
Re-posting of FY21 2Q material 21．Management Target • We aim more than 1.2 trillion JPY of net sales, 100 billion JPY and around 8% profit rate of operating profit, 70 billion JPY of net income and 12% in ROE in financial year of 2030 Preliminary phase Growing phase •Planning group strategy •Expand
Slide 49: Disclaimer
【Disclaimer】 • This financial presentation document is made in Japanese and translated in English. Any texts, figures and descriptions etc. in Japanese document is the original and the English document is for reference purposes. If there is any conflict or inconsistency between these two documents,