Daisue Construction Co., Ltd. · TSE:1814
Daisue Construction — Q2 FY2022 Earnings Presentation
25 slides from Daisue Construction's earnings presentation, Nov 17, 2021
Slide 1: Financial Briefing for the Second Quarter of the Fiscal Year Ending March 2022
Financial Briefing for the Second Quarter of the Fiscal Year Ending March 2022 Including Information about Future Measures to Increase Corporate Value November 17, 2021
Slide 2: President's message on policies to increase corporate value
To achieve our consolidated sales target of 100.0 billion yen as set forth in the 2030 Vision and strengthen initiatives under the Medium-term Business Plan, we’ve formulated a new series of policies to increase corporate value around the core themes of strengthening growth investments, shareholder
Slide 3: Message on 2030 Vision and Medium-term Business Plan
As part of a larger effort to elevate our business stage so that we can increase corporate value on an ongoing basis by strengthening our management foundation, primarily through financial improvements, we’ve formulated and are working to implement our long-term vision, the 2030 Vision, and our Medi
Slide 4: Company Overview
Company Overview March 1937 Sueo Yamamoto founds the business in the Name DAISUE CONSTRUCTION CO., LTD. city of Matsubara, Osaka Prefecture. Head Office 2-5-28 Kyutaromachi, Chuo-ku, Osaka March 1947 Daisue Gumi Co., Ltd. is established in Established March 20, 1947 Osaka Prefecture. Capital 4.3 bil
Slide 5: Earning Customers' Trust through Good Faith
th Earning Customers’ Trust through Good Faith Daisue Construction marked the 85th anniversary of its founding in March 2022.
Slide 6: Our Businesses
Our Businesses We operate three businesses: our flagship condominium business, which boasts an industry-leading construction track record; our construction business, which accepts contracts for a wide range of buildings; and our renovation business, which expands and renovates existing structures. C
Slide 7: Financial Information
Financial Information
Slide 8: 1. Summary of results
1. Summary of results Sales rose 20.0% from the corresponding quarter of the previous fiscal year thanks to factors including an increase in the construction balance carried over from the previous fiscal year. Consolidated completed construction balance: 32,290 million yen (Millions of yen) 120,000
Slide 9: 1. Summary of results
1. Summary of results Operating income rose 13.2% from the corresponding quarter of the previous fiscal year to 1,124 million yen thanks to factors including an increase in the completed construction balance. The operating margin fell 0.2 points from the corresponding quarter of the previous fiscal
Slide 10: 2. Trend in consolidated sales
2. Trend in consolidated sales Consolidated sales rose 19.8% from the corresponding quarter of the previous fiscal year to 32,713 million yen amidst growth in our flagship construction business. Previous Medium-term Business Plan Medium-term Business Plan 69,000 65,167 1,900 2.8％ 2,126 3.3％ 5,397 56
Slide 11: 3. Factors affecting consolidated operating income
3. Factors affecting consolidated operating income Profit rose 130 million yen from the corresponding quarter of the previous fiscal year thanks to factors including growth in the completed construction balance. Operating margin Operating 464 ▲7 ▲121 3.4％ margin 3.6％ Other 1,124 (Millions of yen) 99
Slide 12: 4-1. Principal completed and ordered construction
4-1. Principal completed and ordered construction April 2021 to September 2021 Completed construction *In order of prefectural code Client Building Prefecture Use Tokyo Metropolitan Government Shimizu Comprehensive Development VPO Higashi-nihonbashi Government building/offices Central Japan Railway
Slide 13: 4-2. Principal completed construction
4-2. Principal completed construction April 2021 to September 2021 Sakai Health Center and Municipal Parking Garage Meieki Taiko Doriguchi Building Alpha States Eirakudori Kyoei Steel Ltd. Hirakata Office Product Warehouse 13
Slide 14: 5. Revision of the end-of-year dividend outlook
5. Revision of (increase in) the end-of-year dividend outlook We recently revised our dividend policy in light of newly adopted measures to increase corporate value and as a result determined to actively return profits to shareholders by adopting a dividend ratio of at least 50% starting during the
Slide 15: 5. Revision of the end-of-year dividend outlook
5. Revision of (increase in) the end-of-year dividend outlook Dividend policy before change Annual dividend 140 We will adopt a total dividend ratio of 30% for the fiscal year ending March 2023 while maintaining dividends of at least 40 yen. 120 Dividend policy after change We will adopt a dividend
Slide 16: Information about Future Measures to Increase Corporate Value
Information about Future Measures to Increase Corporate Value
Slide 17: 1. Status of the Medium-term Business Plan
1. Status of the Medium-term Business Plan In May 2020, we adopted our long-term vision, the 2030 Vision, and a three-year Medium-term Business Plan, “Challenges for the Future.” Although falling sales and profits in the condominium and renovation businesses put a damper on progress during the plan’
Slide 18: 2. Revision for the Medium-term Business Plan
2. Revision for the Medium-term Business Plan As we study how to further strengthen the general construction and renovation businesses based on our performance during the previous fiscal year, we will take advantage of the reorganization of the Tokyo Stock Exchange to reconsider key milestones on th
Slide 19: 3. Time axis for initiatives (new milestones)
3. Time axis for initiatives (new milestones) In order to increase corporate value as we implement the 2030 Vision, we recognize the need to incorporate the perspective of increasing shareholder value into the Medium-term Business Plan to complement bolder growth investments. Based on this recog
Slide 20: 4. Initiative basic plan
4. Initiative basic plan Building interconnected business and capital strategies with the goal of increasing shareholder value, along with government structures to support them For the time being, striving to achieve growth and improvement through high-priority investments that help resolve issu
Slide 21: 5-1. New business strategy (1)
5-1. New business strategy (1) Maintaining and increasing ROE and ROIC by improving profitability through growth investments that are linked to a capital strategy that centers on aggressive and defensive DX Our return on capital is not low compared to other companies, but there are issues with the l
Slide 22: 5-2. New business strategy (2)
5-2. New business strategy (2) Step 1 in improving the profitability of our core businesses will be to invest 5.0 billion yen to address topics such as the DX and increasing the size of orders. We will strive to achieve consolidated operating income of 4.0 billion yen (operating margin of 5.0%) in
Slide 23: 6. New capital strategy
6. New capital strategy Realizing growth investment on the order of 5.0 billion yen and shareholder returns with a dividend ratio of at least 50% based on funds earned through our core businesses Working to maintain and improve ROE and ROIC by increasing core-business profit through growth inves
Slide 24: 7. Strengthening governance
7. Strengthening governance Striving to realize a higher level of governance by focusing on implementing principles that will be applied to prime markets under the June 2021 revision of the Corporate Governance Code, for example by appointing independent outside directors to at least one-third of
Slide 25: A company that creates spaces rich in security and joy
A company that creates spaces rich in security and joy Inquiries concerning this document Management Strategy Department DAISUE CONSTRUCTION CO., LTD. E-mail: dai-info@daisue.co.jp
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