Infroneer Holdings Inc. · TSE:5076
Infroneer — Q1 FY2024 Earnings Presentation
48 slides from Infroneer's earnings presentation, Aug 9, 2024
Slide 1: FY2024 1st Quarter Financial Presentation
INFRONEER Holdings FY2024 1st Quarter Financial Presentation August 9, 2024
Slide 2: FY2024 1st Quarter Financial Results Supplementary Material Index
FY2024 1st Quarter Financial Results Supplementary Material INDEX 1. Management Environment Recognition = Appendix = 2. Financial Summary Segment Highlights 3. Strategies & Return Policies 1. Building Construction / FY24 1Q Results and Forecast of Capital 2. Civil Engineering 3. Infrastructure Manag
Slide 3: Management Environment Recognition
１.Management Environment Recognition Our understanding and responses to the market environment, order environment, and material prices, etc. Market Our Segments Points condition Condition • Although capital investment is strong, there is a challenge in securing Building subcontractors. Construction
Slide 4: Financial Summary
Financial Summary Company Segments Financial Highlights • FY24 1Q results were in line with plan (special factors in the civil engineering segment in the previous fiscal year and higher general and administrative expenses), although revenue increased, and income INFRONEER Holdings decreased YoY. • E
Slide 5: Strategies & Return Policies / FY24 1Q Results and Forecast of Capital
3-1.Strategies & Return Policies / FY24 1Q Results and Forecast of Capital Shareholder returns • We will maintain a dividend of 60 yen per share (comprising an interim dividend of 30 yen and a year-end dividend of 30 yen), anticipating a dividend payout ratio of 42.4%. Cross-shareholdings • During F
Slide 6: Reduce Cross-Shareholdings to zero by fiscal year 2027
3-2 .Reduce Cross-Shareholdings to zero by fiscal year 2027 Policy for the sale FY24 target:Sell over 25 billion yen of Maeda Corp. of Cross- (reduce the ratio to net assets to below 20%) Shareholdings Final goal Reduce to zero for the entire INFRONEER Group by FY27. Policy for the Implement distrib
Slide 7: Trend of Performance Figures for INFRONEER Holdings
4-1 .Trend of Performance Figures for INFRONEER Holdings • Each segment is on track, and we expect to meet our full-year plan. • We project that our business profit, net income for the term, EBITDA, and added value will reach record highs for the full fiscal year. Operating profit/Business profit Ne
Slide 8: Year-over-year performance figures for INFRONEER Holdings
4-2.Year-over-year performance figures for INFRONEER Holdings • FY24 1Q results showed an increase in revenue but a decrease in profit compared to the same period last year, primarily due to a significant increase in general and administrative expenses following the inclusion of the Japan Wind Devel
Slide 9: Segment Performance Figures Year-on-Year
５.Segment Performance Figures Year-on-Year （Billions of Yen） ※ FY23 FY24 FY23 FY24 YoY Progress YoY 1QResult 1QResult Result Forecast Net sales 163.6 178.3 14.8 21.2% 793.3 839.9 46.6 Building Construction 48.7 61.3 12.6 20.9% 273.7 293.3 19.6 ※ Civil Engineering 34.8 30.8 △ 4.0 20.5% 162.4 150.3 △1
Slide 10: Transition of Backlog, Order Intake and Profit Margin on Orders
６.Transition of Backlog, Order Intake and Profit Margin on Orders (Building Construction and Civil Engineering) • Orders received in the construction business in 1Q remained steady, and the profit margin on orders received remained at a high level.Expect record high amount of construction work in ha
Slide 11: FY24 Main Factors for G&A Increase/Decrease
7.FY24 Main Factors for G&A Increase/Decrease • General and administrative expenses increased due to the full acquisition of Japan Wind Development. （Billions of Yen） • Advertising and promotional expenses increased due to the signing of a partnership contract with B.LEAGUE, aimed at contributing to
Slide 12: Main Factors for Increase/Decrease in the Consolidated Balance Sheet
8.Main Factors for Increase/Decrease in the Consolidated Balance Sheet Assets Liabilities and Net assets （Billions of Yen） （Billions of Yen） 1,411 ー 67 1,411 (1,312) ※1 1,344 (ー 65) ー 67 (1,246) ※1 1,344 ▲ 62 ▲ 16 Current Major Factor Liabilities with Short-term 490 Major Factor borrowings ー98 Asset
Slide 13: Outline of the Issuance of Series 1 Bond-Type Class Shares
9-1.Outline of the Issuance of Series 1 Bond-Type Class Shares Key Issuance Details Date of Resolution for Date of Resolution for Issuance: June Issuance, Issue Date, Issue Date: August 1, 2024 (Thursday) Listing Date: August 2, 2024 (Friday) 25, 2024 (Tuesday) Listing Date Issue Price, Number of Nu
Slide 14: Feature of Series 1 Bond-Type Class Shares
9-2.Feature of Series 1 Bond-Type Class Shares • No dilution of voting rights. Listed Bond-type Class Shares • Expand capital for both accounting and rating. In principle, acquisition by INFRONEER is possible after August 1, 2029 • The first Bond-type Class Shares were issued as “Green Bond-type Cla
Slide 15: Appendix
Appendix 14
Slide 16: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 15
Slide 17: Maeda Corp. Net Sales, Gross Profit, and Operating Profit
1-1.[ Maeda Corp. *Including Real Estate] Net Sales, Gross Profit, and Operating Profit • FY24 1Q Due to a substantial volume of carried-over projects at the beginning of the period, coupled with the Building smooth progress of construction work, led to an increase in both sales and gross profit com
Slide 18: Maeda Corp. Orders Received and Profit Margin of Orders Received
1-2.[ Maeda Corp. *Including Real Estate] Orders Received and Profit Margin of Orders Received • FY24 1Q Order intake is progressing in line with the target of 300 billion yen, and we are maintaining Building a high profit margin at the time of order fulfillment. Constru ction • FY24 FY We have secu
Slide 19: Maeda Corp. Domestic Trend of Order Ratios by Building Use
1-3 . [ Maeda Corp. Domestic] Trend of Order Ratios by Building Use • FY24 1Q Large private sector projects in the "Warehouses & Logistics Facilities" and "Research Facilities" are driving order intake. Building Constru • FY24 FY The ratio of " Condominium" and "Warehouses & Logistics Facilities" is
Slide 20: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 19
Slide 21: Maeda Corp. Net Sales, Gross Profit, and Operating Profit
2-1.[ Maeda Corp. ] Net Sales, Gross Profit, and Operating Profit • FY24 1Q Due to the lack of growth in the construction revenue from large-scale projects in hand at the Building beginning of the fiscal year, there was a decrease in revenue and profit compared to the previous Constru ction fiscal y
Slide 22: Maeda Corp. Orders Received and Profit Margin of Orders Received
2-2 . [ Maeda Corp. ] Orders Received and Profit Margin of Orders Received • FY24 1Q Although there was a decrease compared to the previous fiscal year, progress is as planned, and the profit margin at the time of order intake is being maintained at a high level. Building Constru ction • FY24 FY We
Slide 23: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 22
Slide 24: Maeda Corp. Consolidated Regarding Contribution to Profit
3-1-1.[ Maeda Corp. Consolidated ] Regarding Contribution to Profit • In FY24, we plan to sell renewable energy projects and development projects. Building Constru • Full-year profit contribution is expected to be 14 billion yen, a record high. ction (Billions of Yen) explanatory notes Civil Enginee
Slide 25: Maeda Corp. Consolidated FY24 Full-Year Plan Breakdown
3-1-2.[ Maeda Corp. Consolidated ] FY24 Full-Year Plan Breakdown Building Profit contribution Profit on SPC Dividends Consolidation SPC HD Adjustment Investment income Constru ①+③+⑤+Profit sale (silent from silent elimination Consolidated ・IFRS from equity-method ction contribution to other partners
Slide 26: FY24 1Q Results and Full Year Plan of Major Group Companies
3-1-3. FY24 1Q Results and Full Year Plan of Major Group Companies (Infrastructure Management) Building Constru Maeda Corp. Millions of yen ction Consolidated Aichi Road Concession ※1 Miotsukushi Industrial Concession ※1 Miura City Public Sewerage Concession ※1 subsidiaries FY23 FY24 FY24 FY23 FY24
Slide 27: Major Infrastructure Management Projects in Japan
3-1-4. Major Infrastructure Management Projects in Japan Proven track record in various infrastructure services. POINT Implementing efficient integrated management leveraging the strengths of the private sector. Building Constru ction Comprehensive Facilities Concessions PFI(Service Purchase Typ
Slide 28: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 27
Slide 29: Transition of operational and developmental projects of Japan Wind Development
3-2-1. Transition of operational and developmental projects of Japan Wind Development • We are steadily advancing the development of each project by acquiring FIT/FIP. • As of FY24 Q1, the FIT/FIP-acquired projects have increased by approximately 370MW Building Constru compared to FY21, and we will
Slide 30: Projects that Japan Wind Development is working on
3-2-2. Projects that Japan Wind Development is working on POINT Building We handle all phases of the wind power business, from development to operation, within our own group. Constru ction Prioritizing coexistence with the community, we always promote development through constant dialogue with t
Slide 31: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 30
Slide 32: MAEDA ROAD Consolidated Net Sales, Gross Profit, and Operating Profit
4-1.[ MAEDA ROAD Consolidated ] Net Sales, Gross Profit, and Operating Profit • FY24 1Q An increase in revenue and profit compared to the same period last year was achieved, Building primarily in the construction business, due to an abundance of carried-over projects. Constru ction • FY24 FY Further
Slide 33: MAEDA ROAD Construction Business Orders, Net Sales, Gross Profit
4-2. [MAEDA ROAD Consolidated Construction business] Orders Received, Net Sales, Gross Profit, and Operating Profit • FY24 1Q Due to an abundance of carried-over projects and improved profit margins at the time of order, we achieved an increase in revenue and profit compared to the same period last
Slide 34: MAEDA ROAD Manufacturing and Sales Business Net Sales, Gross Profit
4-3.[MAEDA ROAD Consolidated Manufacturing and Sales Business] Net Sales, Gross Profit, and Operating Profit • FY24 1Q The unexpected depreciation of the yen led to a surge in raw material costs that could Building not be fully offset, resulting in a decrease in profit compared to the same period la
Slide 35: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 34
Slide 36: MAEDA SEISAKUSHO Consolidated Net Sales, Gross Profit, and Operating Profit
5-1. [ MAEDA SEISAKUSHO Consolidated] Net Sales, Gross Profit, and Operating Profit • FY24 1Q Sales of Komatsu products, crawler cranes, and custom-ordered items remained Building robust, resulting in increased revenue compared to the same period last year. Despite Constru ction efforts to reduce co
Slide 37: MAEDA SEISAKUSHO Consolidated Net Sales, Gross Profit, and Operating Profit
5-2.[ MAEDA SEISAKUSHO Consolidated] Net Sales, Gross Profit, and Operating Profit※1 • FY24 1Q In Construction Machinery, sales of large equipment increased, resulting in a rise in revenue compared to the same period last year. In Industrial Machinery & Steel Products, Building Constru net sales dec
Slide 38: Performance Figures
Performance Figures «7 INFRONEER Holdings Inc.
Slide 39: Maeda Corp. Non-Consolidated FY24 1Q Results and Full-Year Forecast
1. [Non-Consolidated] Maeda Corp. FY24 1Q Results and FY24 Full-Year Forecast (Excluding SPCs for infrastructure management segment) (Billions of Yen) FY23 1Q Results FY24 1Q Results YoY FY24 Forecast Progress Net Sales 84.0 91.4 7.4 458.4 19.9% Total 48.7 60.3 11.6 298.5 20.2% Bulding Domestic 48.7
Slide 40: MAEDA ROAD FY24 1Q Results and FY24 Full-Year Forecast
2. [Consolidated] MAEDA ROAD FY24 1Q Results and FY24 Full-Year Forecast (Billions of Yen) FY23 FY24 FY24 YoY Progress 1Q Results 1Q Results Forecast Net sales 56.6 59.8 3.2 261.5 22.9% Construction Business 39.3 42.3 3.0 180.0 23.5% Manufacturing and Sales Business 17.1 17.3 0.1 81.5 21.2% Others 0
Slide 41: MAEDA SEISAKUSHO FY24 1Q Results and FY24 Full-Year Forecast
3.[Consolidated] MAEDA SEISAKUSHO FY24 1Q Results and FY24 Full-Year Forecast (Billions of Yen) FY23 FY24 FY24 YoY Progress 1Q Results 1Q Results Forecast Net sales 9.0 10.0 1.0 42.0 23.8% Construction Machinery 5.0 6.3 1.3 23.7 26.6% Industrial Machinery and Steel Products 3.4 3.0 -0.4 15.7 19.1% C
Slide 42: Japan Wind Development FY24 1Q Results and FY24 Full-Year Forecast
4 .[Consolidated] Japan Wind Development FY24 1Q Results and FY24 Full-Year Forecast (Billions of Yen) FY23 FY24 FY24 YoY Progress 1Q Results 1Q Results Forecast Net sales ー 0.9 ー 8.7 10.8% Development ー 0.4 ー 6.4 7.0% O&M ー 0.5 ー 2.0 23.1% Others ー 0.0 ー 0.4 10.8% Gross profit ー 0.1 (11.8%) ー 5.5 (
Slide 43: FY24 1Q Results and Forecast of Key INFRONEER Group Companies
5. FY24 1Q Results and FY24 Full Year Forecast of Key INFRONEER Group Companies • For the full year of FY24, FBS is expected to show a recovery trend from the second quarter onwards, based on the expected order intake. Fujimi Koken and JM are expected to recover the increased costs Building Constru
Slide 44: Business Model of Infrastructure Operations
[Supplementary Material]Business Model of Infrastructure Operations • Infrastructure operations is business that gain profits on every steps from upstream to downstream of infrastructure management. ⑤Sale →Profit on sale (+α) Fund, AM → Dividend, AM Fee Value up!! ④O&M →O&M fee ③EPC →Construction re
Slide 45: Differences between Contribution to profit and Segment profit
[Supplementary Material]Differences between “Contribution to profit” and “Segment profit” • ”Contribution to profit” is the actual contribution for managerial accounting purposes, which is the sum of construction Gross profit, other income, and operating income of individual consolidated subsidiarie
Slide 46: Adopted as a constituent stock of the ESG index used by GPIF
[Supplementary Material] Smoothly adopted as a constituent stock of the ESG index used by GPIF ・Included as a constituent stock in four ESG indexes adopted by GPIF. ・Most recently, we have been included as a constituent stock in the FTSE Blossom Japan Sector Relative Index and the MSCI Japan ESG Sel
Slide 47: News: YouTube appearance and official social media
News1 Appeared on YouTube channel "Mariko Mabuchi's Stock Club"! [INFRONEER HD] Complete Acquisition of Japan Wind Development. The Future Value of Infrastructure Operation Business as Discussed by the Representative of a Listed Company. We are pleased to announce that INFRONEER Holdings Corporation
Slide 48: Disclaimer
【Disclaimer】 • This financial presentation document is originally in Japanese and has been translated in English. Any texts, figures and descriptions etc. in Japanese document is the original and the English document is for reference purposes only. In case of any conflict or inconsistency between th