Seikitokyu Kogyo Co., Ltd. · TSE:1898
Seikitokyu Kogyo — 1H FY2022 Earnings Presentation
35 slides from Seikitokyu Kogyo's earnings presentation, Nov 30, 2022
Slide 1: Financial Results Presentation for the First Half of the Fiscal Year Ending March 31, 2023
Financial Results Presentation for the First Half of the Fiscal Year Ending March 31, 2023 November 30, 2022 Becoming a truly strong corporate group
Slide 2: Contents
Contents Impact of the COVID-19 Pandemic 4 Business Environment During the First Half of FY2022 5 Financial Results (Consolidated and Non-consolidated) 6 Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated) 7 Construction Work Orders Received (Non-consolidated) Overvi
Slide 3: Overview of Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
Overview of Financial 1 Results for the First Half of the Fiscal Year Ending March 31, 2023
Slide 4: Impact of the COVID-19 Pandemic
1 Impact of the COVID-19 Pandemic We take thorough measures to prevent the spread of COVID-19 and Preventive continue construction works and plant operations to stably and constantly measures operate our business and provide our services while ensuring the safety and health of executives, employees,
Slide 5: Business Environment During the First Half of FY2022
1 Business Environment During the First Half of FY2022 The impact of the COVID-19 pandemic eased, and there were signs of recovery in economic activities. In the road construction market, public investment remained strong in relation to disaster prevention and mitigation and general measures to boos
Slide 6: Financial Results (Consolidated and Non-consolidated)
1 Financial Results (Consolidated and Non-consolidated) Sales increased but profits decreased year on year on a consolidated and non-consolidated basis. Sales and profits fell short of the initial forecasts. The primary reason for the significant drop in profits was the sharp rise in the price of st
Slide 7: Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated)
Orders Received, Net Sales and Construction Contracts 1 Brought Forward (Consolidated) Orders received were at the highest level in the past 10 years. Orders received for construction increased year on year and exceeded the initial forecast. Net sales of finished goods fell short of the initial fore
Slide 8: Construction Work Orders Received (Non-consolidated)
1 Construction Work Orders Received (Non-consolidated) Trends in orders for construction work held up well, and we constantly received orders in general. Despite the sluggishness of large-scale construction work orders, orders received from the public agencies as a whole increased. Construction work
Slide 9: Product Manufacturing and Sales Results (Non-consolidated)
Product Manufacturing and Sales Results 1 (Non-consolidated) In spite of lackluster product demand, we focused our effort on sales activities and secured a year-on-year increase in both production volume and sales volume of asphalt composites. Selling prices also increased slightly year on year. As
Slide 10: Net Sales and Profit (Loss) Results by Segment (Consolidated)
Net Sales and Profit (Loss) 1 Results by Segment (Consolidated) In the Construction Business, the margin declined due to the lack of contributions from highly profitable, large-scale construction works during the first half of FY2022 in addition to the impact of rising material prices. Despite an in
Slide 11: SG&A, Operating Income, Ordinary Income and Net Income (Consolidated)
SG&A, Operating Income, Ordinary Income and 1 Net Income (Consolidated) Selling, general and administrative expenses increased due to factors, including our effort to raise salaries more than 3% and head office relocation expenses. We posted operating income, after having suffered an operating loss
Slide 12: Analysis of Factors Affecting Changes in Net Income (Consolidated)
Analysis of Factors Affecting Changes in Net Income 1 (Consolidated) Net income decreased significantly due to declines in construction work profit and product profit and a multitude of other negative factors, such as an increase in selling, general and administrative expenses. Profit increased 442
Slide 13: Consolidated Financial Position and Cash Flows
1 Consolidated Financial Position and Cash Flows Dividends paid of 1,120 million yen. Purchase of treasury shares of 799 million yen. Purchase of property, plant and equipment of 2,902 million yen, including construction costs of the head office building. The increase in long-term borrowings is attr
Slide 14: Major Construction Works in Progress
Major Construction Works in Progress (Those We 1 Received Orders for and Those Brought Forward) Construction works we received orders for Site Customer Project (Prefecture) Hokkaido Regional New Chitose Airport South taxiway to connect to the runway found Hokkaido Development Bureau, MLIT constructi
Slide 15: Major Completed Construction Works
1 Major Completed Construction Works Site Customer Project (Prefecture) Kanto Regional Development Repair work of a box culvert near the Yaguchi area, Misato City Saitama Bureau, MLIT on Route 298 (FY2021) Nakayama Racecourse roadbed reconstruction work on the front turf Japan Racing Association Chi
Slide 16: Compliance
1 Compliance Prevent recurrence of violation of the Anti-Monopoly Act In response to the violations of the Anti-Monopoly Act that had taken place in the period up to January 2015, we will continue to implement measures laid out to prevent recurrence across the Company and strive to regain trust earl
Slide 17: Topics: Purchase and Cancellation of Treasury Shares
1 Topics Purchase of treasury shares 1 Resolution to purchase treasury shares approved at the Board of Directors meeting held on May 11, 2022 (1) Class of shares to purchase Common shares of the Company (2) Total number of shares to purchase 1,200,000 shares (upper limit) (3.21% of the total number
Slide 18: Topics: SBT Certification Obtained
1 Topics SBT Certification Obtained The Science Based Targets initiative (SBTi) (*1) certified in August 2022 that the Group’s greenhouse gas emissions reduction targets for FY2030 are in line with the levels required by the Paris Agreement (*2) and based on scientific evidence. To achieve carbon-ne
Slide 19: Outlook for the Fiscal Year Ending March 31, 2023
Outlook for the Fiscal Year 2 Ending March 31, 2023
Slide 20: Financial Results Forecast for FY2022 (Consolidated and Non-consolidated)
Financial Results Forecast for FY2022 2 (Consolidated and Non-consolidated) We continue to expect firm underlying demand in the road construction market, such as disaster prevention and disaster mitigation business and building national resilience. Given the performance for the first half of FY2022,
Slide 21: Net Sales and Profit (Loss) Forecast by Segment (Consolidated)
Net Sales and Profit (Loss) 2 Forecast by Segment (Consolidated) Backed by extensive construction works in progress and solid orders received, we expect a year-on-year increase in net sales of completed construction contracts. As for construction work profit, it should be difficult to improve the ma
Slide 22: Forecast of Construction Work Orders to be Received
Forecast of Construction Work Orders to be Received 2 (Consolidated and Non-consolidated) We will continue to focus on strengthening the base of receiving construction orders from the private sector, taking into account the gradual downward trend in the amount of public works in the future and mediu
Slide 23: Reference: Medium-term Management Plan (FY2021–2023)
Reference: Medium-term 3 Management Plan (FY2021–2023)
Slide 24: Overview of the Medium-term Management Plan (FY2021-2023)
3 Medium-term Management Plan (FY2021–2023) Overview of the Medium-term Management Plan (FY2021-2023) Corporate An infrastructure building company that helps create affluent Philosophy communities A truly strong corporate group that pursues personal and corporate growth Vision in tandem and helps re
Slide 25: Key Performance Indicators (consolidated)
3 Medium-term Management Plan (FY2021–2023) Key Performance Indicators (consolidated)(final year of the plan) Operating income is assumed at the same level as FY2018 and Indicator FY2020 FY2021 FY2023 FY2019, while projecting revenue growth. We estimate a decrease Actual Actual Plan in large-scale p
Slide 26: Individual Strategies / Key Strategies
3 Medium-term Management Plan (FY2021–2023) Individual Strategies / Key Strategies Strategy 1 Expand stable earnings by further strengthening the competitiveness of our core businesses 【Construction Business】 Increase competitiveness to win construction orders from the Ministry of Land, Infrastruc
Slide 27: Individual Strategies / Key Strategies
3 Medium-term Management Plan (FY2021–2023) Individual Strategies / Key Strategies Strategy 3 Create a virtuous cycle in the recruitment, retention, and development of human resources Secure talents necessary to grow our business scale under the Plan, by hiring diverse human resources and strength
Slide 28: Capital Policy (Investment Plans, Financial Plans and Shareholder Returns)
3 Medium-term Management Plan (FY2021–2023) Capital Policy (Investment Plans, Financial Plans and Shareholder Returns) Consistent and strategic investment to build sustainable business foundation FY2021 Over three-year plan Maintenance, renewal, acquisition of factories, offices, Approx. 3.4 billion
Slide 29: Capital Policy (Investment Plans, Financial Plan and Shareholder Returns)
3 Medium-term Management Plan (FY2021–2023) Capital Policy (Investment Plans, Financial Plan and Shareholder Returns) Stable, consistent shareholder returns with a targeted dividend payout ratio of roughly 30% and total shareholders return of 50% or more ●Trends of relevant indicators FY2022 FY2016
Slide 30: Reference Information
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Slide 31: Corporate Philosophy / Company Profile
4 Corporate Philosophy / Company Profile Corporate Philosophy An infrastructure building company that helps create affluent communities Company name SEIKITOKYU KOGYO CO., LTD. Established January 16, 1950 Head office location 2-9-3, Shibakoen, Minato-ku, Tokyo, Representative Yoshikazu Taira, Direct
Slide 32: Main Offices, Laboratories, Consolidated Subsidiaries, etc.
Main Offices, Laboratories, 4 Consolidated Subsidiaries, etc. Business offices, etc. 53 sites Material plants, etc. 49 sites Hokkaido ・Hokkaido Branch Technology research Tochigi Prefecture laboratory Testing laboratories 8 sites Equipment center Tochigi Prefecture Training center Tochigi Prefecture
Slide 33: Our Technologies
4 Our Technologies CRACK REPAIR Mible-eco (generic term: foamed asphalt mixture) CRACK REPAIR is an ultra-low viscosity polyurethane-based Asphalt and aggregate can be mixed easily with an additive to repairing material that can be flown naturally and injected into foam fine bubbles in asphalt, whic
Slide 34: Consolidated Performance Indicators, etc.
4 Consolidated Performance Indicators, etc. Business term 57th 58th 59th 60th 61st 62nd 63rd 64th 65th 66th 67th 68th 69th 70th 71st 72nd 73rd Fiscal year FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Net sales (Millions of yen
Slide 35: Forward-looking statements and contact
This material contains financial results forecasts, projections, and other forward-looking statements, which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors including changes in future business environment may caus