Kajima Corporation · TSE:1812

Kajima — FY2018 Earnings Presentation

30 slides from Kajima's earnings presentation, May 15, 2019

  1. Slide 1: FY2018 Financial Results

    FY2018 Financial Results May 15, 2019  Our fiscal 2018 Financial Results are as follows. 2

  2. Slide 2: FY2018 Results / FY2019 Financial Forecast

    Ⅰ FY2018 Results 01 Ⅱ FY2019 Financial Forecast 15 Copyright Ⓒ 2019 KAJIMA CORPORATION All Rights Reserved. 3

  3. Slide 3: FY2018 Results

    Ⅰ FY2018 Results (April 1, 2018 - March 31, 2019) 1. Business Environment 2. Financial Highlights 3. Segment Performance 4. Financial Positions 5. Investment Plan Copyright Ⓒ 2019 KAJIMA CORPORATION All Rights Reserved. 4

  4. Slide 4: 1. Business Environment

    Ⅰ FY2018 Results 1. Business Environment Domestic market trends  Stable construction demand, mainly in Metro-Tokyo area redevelopment projects and capital investments aimed at upgrading functions and saving labor  Tightening in construction materials and labor but limited impact on construction co

  5. Slide 5: 2. Financial Highlights

    Ⅰ FY2018 Results 2. Financial Highlights Lower income than the high level achieved in FY17. Results exceeded full-year forecast. FY17 FY18 FY18 YoY Change Result Result *1 Forecast Revenues 1,830.6 1,974.2 143.6 1,960.0 Operating Income 158.3 142.6 (15.7) 120.0 Ordinary Income 179.7 162.9 (16.8) 134

  6. Slide 6: 2. Revenues

    Ⅰ FY2018 Results 2. Revenues FY17 FY18 Change YoY Change Result Result from Forecast Revenues 1,830.6 1,974.2 143.6 +14.2 2,000 1,600 693.9 YoY Change Factors 665.4 1,200  Building +175.4 800  Civil Engineering (65.5) 1,280.3 1,165.1 400 0 FY17 FY18 Kajima Corp Subsidiaries Copyright Ⓒ 2019 KAJIMA

  7. Slide 7: 2. Operating Income

    Ⅰ FY2018 Results 2. Operating Income FY17 FY18 Change YoY Change Result Result from Forecast Operating 158.3 142.6 (15.7) +22.6 Income 200 160 23.1 YoY Change Factors 22.3 120  Gross Profit (7.3) (Construction) 80 135.1  SG&A (7.9) 120.2 40 0 FY17 FY18 Kajima Corp Subsidiaries Copyright Ⓒ 2019 KAJ

  8. Slide 8: 2. Ordinary Income

    Ⅰ FY2018 Results 2. Ordinary Income FY17 FY18 Change YoY Change Result Result from Forecast Ordinary 179.7 162.9 (16.8) +28.9 Income 200 33.4 160 YoY Change Factors 30.3  Operating 120 (15.7) Income 80  Non-operating 146.2 Income – net (1.0) 132.5 40 0 FY17 FY18 Kajima Corp Subsidiaries Copyright

  9. Slide 9: 2. Net Income Attributable to Owners of the Parent

    Ⅰ FY2018 Results 2. Net Income Attributable to Owners of the Parent FY17 FY18 Change YoY Change Result Result from Forecast Net Income 126.7 109.8 (16.9) +12.8 * Net Income Attributable to Owners of the Parent 150 120 26.4 YoY Change Factors 12.7  Ordinary 90 (16.8) Income  Extraordinary 60 Income

  10. Slide 10: 3. Civil Engineering (Kajima Corp)

    Ⅰ FY2018 Results 3. Civil Engineering (Kajima Corp) Contracts  Equivalent level to previous fiscal year Revenues  Lower than FY17, when temporary factors drove increases both in domestic and overseas Gross Profit  Higher margin than forecast ■ Contracts Awards ■Revenues ■ Gross Profit Forecast 47

  11. Slide 11: 3. Building Construction (Kajima Corp)

    Ⅰ FY2018 Results 3. Building Construction (Kajima Corp) Contracts  Increase due to contract awards for Metro-Tokyo area redevelopment projects Revenues  Steady progress in large-scale backlog projects Higher margin than forecast by pursuing improvement of productivity and cost reduction, Gross Pro

  12. Slide 12: 3. Real Estate and Other (Kajima Corp)

    Ⅰ FY2018 Results 3. Real Estate and Other (Kajima Corp) Contracts  Disposition of assets to Kajima Private REIT, Inc. Decision to sell an office building under development Revenues  Increase due to disposition of assets to Kajima Private REIT, Inc. Gross Profit  Higher than forecast profit ■Contr

  13. Slide 13: 3. Domestic Subsidiaries and Affiliates

    Ⅰ FY2018 Results 3. Domestic Subsidiaries and Affiliates Contracts  Equivalent level to FY17 Revenues  Increase due to progress in large-scale backlog projects Ordinary Income  Equivalent level to FY17 Forecast 384.7 ■Construction Contract Awards ■Revenues ■Ordinary Income 250 Forecast 400 393.7

  14. Slide 14: 3. Overseas Subsidiaries and Affiliates

    Ⅰ FY2018 Results 3. Overseas Subsidiaries and Affiliates Contracts  Increase mainly due to increase in U.S. Revenues  Increase mainly due to effect of M&A Ordinary Significant increase due to higher revenues, improvement of margin in construction Income  business and disposition of assets (includ

  15. Slide 15: 4. Financial Positions

    Ⅰ FY2018 Results 4. Financial Positions FY17 FY18 FY18 YoY Change Result Result *1 Forecast Total Assets 2,051.2 2091.1 +39.9 ― Interest-bearing 344.8 298.7 (46.1) 340.0 Debt Owners’ Equity 666.0 753.2 +87.2 ― Owners’ 32.5% 36.0% +3.5pt ― Equity Ratio ROE 20.9% 15.5% (5.4pt) ― *1 Announced on Nov 13

  16. Slide 16: 5. Investment Plan

    Ⅰ FY2018 Results 5. Investment Plan  Medium-Term Business Plan: Investment of ¥500 billion over 3 years • Prioritize investment in domestic and overseas real estate development • Rigorously measure investment efficiency and risk management with an awareness of capital costs (¥ billion) FY2018 3-yea

  17. Slide 17: FY2019 Forecast

    Ⅱ FY2019 Forecast (April 1, 2019 - March 31, 2020) 1. Business Environment 2. Financial Highlights 3. Segment Performance 4. Shareholder Returns Copyright Ⓒ 2019 KAJIMA CORPORATION All Rights Reserved.  Next is the financial forecast for the 2019 fiscal year. 18

  18. Slide 18: 1. Business Environment

    Ⅱ FY2019 Financial Forecast 1. Business Environment Domestic market outlook  Stable due to firm construction demand in private sector and increase in national resilience-related public investments  Need to monitor global economic slowdown and its impact on Japanese economy  Concern over construct

  19. Slide 19: 2. Financial Highlights

    Ⅱ FY2019 Financial Forecast 2. Financial Highlights Higher net income than target of Medium-Term Business Plan FY18 FY19 YoY Change Result Forecast Revenues 1,974.2 2,040.0 +65.7 Operating Income 142.6 118.5 (24.1) Ordinary Income 162.9 127.0 (35.9) * Net Income 109.8 90.0 (19.8) Construction Contra

  20. Slide 20: 2. Revenues

    Ⅱ FY2019 Financial Forecast 2. Revenues FY18 FY19 YoY Change Result Forecast Revenues 1,974.2 2,040.0 +65.7 2,400 2,000 YoY Change Factors 1,600 693.9 760.0  Overseas Subsidiaries and +76.5 1,200 Affiliates 800 1,280.3 1,280.0  Civil Engineering (11.0) 400 0 FY18 FY19 Kajima Corp Subsidiaries Copy

  21. Slide 21: 2. Operating Income

    Ⅱ FY2019 Financial Forecast 2. Operating Income FY18 FY19 YoY Change Result Forecast Operating 142.6 118.5 (24.1) Income 160 22.3 120 YoY Change Factors 22.5  Gross Profit (23.4) (Construction) 80  Gross Profit 120.2 (Real Estate and +3.7 96.0 other) 40  SG&A (4.4) 0 FY18 FY19 Kajima Corp Subsidi

  22. Slide 22: 2. Ordinary Income

    Ⅱ FY2019 Financial Forecast 2. Ordinary Income FY18 FY19 YoY Change Result Forecast Ordinary Income 162.9 127.0 (35.9) 200 160 YoY Change Factors 30.3 120  Operating 26.0 (24.1) Income 80  Non-operating 132.5 Income – net (11.7) 101.0 Reversal of allowance for 40 doubtful accounts (3.1) Equity in

  23. Slide 23: 2. Net Income Attributable to Owners of the Parent

    Ⅱ FY2019 Financial Forecast 2. Net Income Attributable to Owners of the Parent FY18 FY19 YoY Change Result Forecast Net Income 109.8 90.0 (19.8) * Net Income Attributable to Owners of the Parent 120 12.7 90 YoY Change Factors 18.0  Ordinary (35.9) Income 60 97.0  Extraordinary Income - net +5.9 72

  24. Slide 24: 3. Civil Engineering (Kajima Corp)

    Ⅱ FY2019 Financial Forecast 3. Civil Engineering (Kajima Corp) Contracts  Equivalent level to FY18 Revenues  Equivalent level to FY18  Forecast based on the status of backlog projects, etc. Gross Profit  Uncertain change orders not included ■Contract Awards ■Revenues ■Gross Profit 400 400 100 21

  25. Slide 25: 3. Building Construction (Kajima Corp)

    Ⅱ FY2019 Financial Forecast 3. Building Construction (Kajima Corp) Contracts  Decrease from the high level achieved in FY18 Revenues  Equivalent level to FY18  Achievable level through self-effort, taking into account concerns over cost escalation Gross Profit  Uncertain change orders not includ

  26. Slide 26: 3. Real Estate and Other (Kajima Corp)

    Ⅱ FY2019 Financial Forecast 3. Real Estate and Other (Kajima Corp) Contracts  Decrease from the high level achieved in FY18 Revenues  Increase based on the status of holding projects and properties Gross Profit  Increase due to higher revenues ■ Contract Awards ■Revenues ■Gross Profit 80 80 15 JP

  27. Slide 27: 3. Domestic Subsidiaries and Affiliates

    Ⅱ FY2019 Financial Forecast 3. Domestic Subsidiaries and Affiliates Contracts  Lower than FY18 mainly due to decrease in road paving projects Revenues  Equivalent level to FY18 Ordinary Income  Equivalent level to FY18 ■ Construction Contract Awards ■Revenues ■Ordinary Income 250 450 20 19.4 19.0

  28. Slide 28: 3. Overseas Subsidiaries and Affiliates

    Ⅱ FY2019 Financial Forecast 3. Overseas Subsidiaries and Affiliates Contracts  Decrease from the high level achieved in FY18 Revenues  Forecast to increase, taking into account an increase in backlog projects Ordinary Income  Decrease from FY18 disposition of various development projects contribu

  29. Slide 29: 4. Shareholder Returns

    Ⅱ FY2019 Financial Forecast 4. Shareholder Returns Year-end dividend revised up ¥2 per share. Equivalent level in FY19 Plan share buyback up to a maximum of ¥10.0 billion in FY19 FY17 FY18 FY18 FY19 *1 Result Result *2 Forecast *3 Forecast Dividend per Share 48.00 50.00 48.00 50.00 Basic Net Income

  30. Slide 30: Inquiries: Corporate Communication Group, Corporate Planning Department

    Inquiries: Corporate Communication Group, Corporate Planning Department E-Mail ： ir@ml.kajima.com Disclaimer: All financial information has been prepared in accordance with generally accepted accounting principles in Japan. While every attempt has been made to ensure the accuracy of information, for

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