Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — H1 FY03/20 Earnings Presentation
30 slides from Tokyu Construction's earnings presentation, Nov 15, 2019
Slide 1: The First Half FY03/20 Financial Results Briefing
The First Half FY03/20 Financial Results Briefing Nov. 15, 2019
Slide 2: Contents
Contents The First Half FY03/20 Financial Results Briefing 1． Overview of the First Half FY03/20 Financial Results 2． Full-Year Forecast for FY03/20 This briefing material includes our earnings 3． Medium- to Long-Term Growth Strategy forecasts and projections. Please note that these reflect forecast
Slide 3: 1. Overview of the First Half FY03/20 Financial Results
Financial Results Briefing 1. Overview of the First Half FY03/20 Financial Results (2019/4-9) 2
Slide 4: Business Environment
１ Business Environment Business environment in 1H FY03/20 １．Despite lingering weakness, particularly in exports, the Japanese economy maintained its gradual recovery track, supported by robust corporate earnings and sustained improvements in the employment and income environments. ２．The construction
Slide 5: 1H FY03/20 Results (Consolidated)
１ 1H FY03/20 Results (Consolidated) Consolidated net sales (including at the parent and subsidiary levels) exceeded the previous- year level to reach a record high. Profit attributable to owners of parent also reached a record high thanks to improved profit at the parent and an earnings recovery at
Slide 6: Factors Affecting Net Income (Consolidated)
１ Factors Affecting Net Income (Consolidated) 1H FY03/20 Profit attributable to owners of parent reached a record high thanks to a substantial increase in gross profit on completed construction, despite year-on-year increases in tax expenses and General and Administrative (SG&A) expenses. Increase i
Slide 7: 1H FY03/20 Results (Non-Consolidated)
1H FY03/20 １ 1H FY03/20 Results (Non-Consolidated) Net sales increased 15.3% year on year amid progress in large-scale construction and civil engineering joint-venture subcontracting work. Net income grew 35.6% year on year amid a strong improvement in gross profit on completed construction projects
Slide 8: Net Sales (Non-Consolidated)
１ Net Sales (Non-Consolidated) 1H FY03/20 Completed civil engineering construction sales benefitted from progress in large-scale joint- venture subcontracting work. Large-scale projects, including in Shibuya, contributed to building construction sales growth. Net sales including real estate sales, e
Slide 9: Gross Profit (Non-Consolidated)
１ Gross Profit (Non-Consolidated) 1H FY03/20 The civil engineering profit margin dropped 3.1pp year on year due to a high ratio of relatively low margin joint-venture subcontracting work and an unexpectedly high number of design change/addition projects received in the previous year. The building co
Slide 10: Financial Position and Cash Flow (Consolidated)
1H FY03/20 １ Financial Position and Cash Flow (Consolidated) Net assets increased to ¥101.0 billion due to the accumulation of retained earnings. The equity ratio was 39.7%. Operating cash flow was negative owing to such factors as relaxing payment conditions for partner companies. [Consolidated Fin
Slide 11: Orders (Non-Consolidated, Company-Wide)
１ Orders (Non-Consolidated, Company-Wide) 1H FY03/20 Company-wide orders fell 25.9% year on year in reaction to large-scale overseas orders received in the previous year. Overseas Tokyu Group Private (Millions of yen) 128,108 Public Difference 2,177 compared Rate of 1H FY03/20 to previous change yea
Slide 12: Orders (Non-Consolidated, Civil Engineering)
１ Orders (Non-Consolidated, Civil Engineering) 1H FY03/20 Overseas orders dropped sharply in reaction to large-scale orders in Myanmar in the previous year. The overall downturn at 26.6% with domestic private-sector construction orders expanded. Overseas Tokyu Group (Millions of yen) Private Differe
Slide 13: Orders (Non-Consolidated, Building Construction)
１ Orders (Non-Consolidated, Building Construction) 1H FY03/20 Domestic private-sector orders declined year on year. Orders were down 25.5% on an overall basis, without any large-scale orders received through the end of the first half of FY03/20. Overseas (Millions of yen) Tokyu Group Difference 106,
Slide 14: 2. Full-Year Forecast for FY03/20
Financial Results Briefing ２．Full-Year Forecast for FY03/20 13
Slide 15: Full-Year Forecast for FY03/20 (Consolidated)
２ Full-Year Forecast for FY03/20 (Consolidated) Revising up our consolidated net sales estimate from our initial forecast by ¥5.0 billion and our net profit attributable to owners of parent forecast by ¥4.0 billion. [Consolidated profit/loss] [Reason for revising our profit forecast] Net sales ¥32
Slide 16: Completed Construction Sales and Gross Profit (Civil Engineering)
２ Completed Construction Sales and Gross Profit Full-Year Forecast for FY03/20 (Non-Consolidated, Civil Engineering) We initially expected a gross margin of 7.8%, reflecting the dropout of temporary factors (such as an unexpectedly high number of design change/addition projects) and progress in a nu
Slide 17: Completed Construction Sales and Gross Profit (Building Construction)
２ Completed Construction Sales and Gross Profit Full-Year Forecast for FY03/20 (Non-Consolidated, Building Construction) Large-scale construction orders received in the previous fiscal year were generally completed in the first half of FY03/20, with the completed construction sales expected to decli
Slide 18: Non-Consolidated Orders
２ Non-Consolidated Orders Full-Year Forecast for FY03/20 Despite expecting a decline in orders overseas, we expect a year-on-year improvement in orders in Japan.Competition appears fierce in some areas, but we expect to secure orders Orders ¥254.0 billion in line with our initial forecast of ¥254 bi
Slide 19: Topics 1: Advancing on-site capabilities through operational innovation
２ Topics ① [Advancing on-site capabilities though operational innovation] We aim to adopt the various ICT/IoT technologies thus far introduced and verified on an individual basis, on a work site on a comprehensive basis, with effects apparent not only from the application of an individual technology
Slide 20: Topics 2: Environmental efforts
２ Topics ② [Environmental efforts] Renovating to a Zero-Energy Building (ZEB) Green Infrastructure Demonstration Facility We carried out ZEB renovation on a 25-year old We established a green infrastructure demonstration technical institute rather than rebuilding it, facility in March 2018 and throu
Slide 21: 3. Medium- to Long-Term Growth Strategy
Financial Results Briefing 3．Medium- to Long-Term Growth Strategy 20
Slide 22: Recognizing changes in the business environment in accordance with SDGs
３ Recognizing changes in the business environment in accordance with SDGs Management Policy We will help each person realize his or her dream through creating comfortable living environments that allow peace of mind In response to diversifying values, we will continue to provide products and service
Slide 23: Strategic Direction
３ Strategic Direction Based Growing need for productivity Intensifying labor shortage Expansion of renovation demand (qualitative changes in demand) improvements environment Business changes Promotion of alliances and Focus on shifting from one- Utilization of strengths to Shift from labor-intensive
Slide 24: Fleshing out Urban Solutions Business
３ Fleshing out Urban Solutions Business In addition to strengthening cooperation with the Tokyu Group, a key source of strength for the Company, we will build and strengthen a comprehensive value chain and expand solutions through the pursuit of M&A and alliances, as well as the active recruitment o
Slide 25: Efforts to realize the urban solutions business by region
３Efforts to realize the urban solutions business by region After assessing the potential for business in each region, we select focus areas. In addition to collecting information on major projects in the area, we conducts activities aimed at capturing demand in peripheral regions. Activities aimed a
Slide 26: Initiatives in the Greater Shibuya Area
３ Initiatives in the Greater Shibuya Area There are a great number of aging small and medium-sized buildings in the Greater Shibuya area, defined as the Shibuya Station area and surrounding areas. Given the concentrated flow of tenants to buildings in large-scale redevelopment projects, we are build
Slide 27: Our role in the Greater Shibuya area
３ Our role in the Greater Shibuya area Our ample record of achievements around Shibuya has been instrumental in building a solid relationship of trust with local neighborhood associations and shopping districts. Leveraging this strength, we will act as a point of contact and liaison in building comm
Slide 28: Digital Shift of The Tokyu Construction
３ Digital Shift of The Tokyu Construction With the aim of preparing for digitalization and the changing needs of customers and the market, Tokyu Construction is leading the industry by actively pursuing M&A and alliances with partner companies for the coming digital shift. Building a digital platfor
Slide 29: Inquiries
[Inquiries] Nishida/Yamaguchi Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp
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