Obayashi Corporation · TSE:1802
Obayashi — Q2 FY2023 Earnings Presentation
27 slides from Obayashi's earnings presentation, Nov 7, 2023
Slide 1: Presentation on Financial Results FY2023 2nd Quarter
Presentation on Financial Results FY2023 2nd Quarter (April 1, 2023 to September 30, 2023) OBAYASHI CORPORATION 1
Slide 2: FY2023 2nd Quarter Financial Results and Forecasts; Management Issues
1. FY2023 2nd Quarter Financial Results and FY2023 Financial Forecasts 2. Management Issues 2 2
Slide 3: Highlight
Highlight FY2023 2nd Quarter Financial Results Net sales increased due to progress in construction projects in hand (YoY) Operating income progressed as planned • Consolidated net sales amounted to ¥1,081.3 billion (+ ¥156.9 billion YoY) This is the highest record for the 2nd quarter financial r
Slide 4: FY2023 2nd Quarter Financial Results - Statements of Income
FY2023 2nd Quarter Financial Results -Statements of Income (YoY Comparison) 4 FY2023 2nd Quarter Financial Results (Consolidated) • Net Sales: ¥1,081.3 billion (+¥156.9 billion YoY） • Operating Income: ¥30.8 billion ( -¥10.9 billion YoY） • Ordinary Income: ¥38.0 billion ( -¥10.6 billion YoY） • Profi
Slide 5: Reasons for Change in Consolidated Operating Income (YoY)
FY2023 2nd Quarter Financial Results -Reasons for Change in Consolidated Operating Income (YoY Comparison) 5 FY2022 2nd Quarter Financial Results Reasons for change in consolidated operating income from FY2022 to FY2023 (¥41.7 billion to ¥30.8 billion) • Gross profit on completed construction contra
Slide 6: FY2023 Financial Forecasts - Statements of Income
FY2023 Financial Forecasts -Statements of Income (YoY Comparison) 6 FY2023 Financial Forecasts (Consolidated) The followings are progressed as planned and toward this forecast • Net sales • Gross Profit • Selling, general and administrative expenses • Operating income • Ordinary income Profit attrib
Slide 7: FY2023 Forecasts - Reasons for Change in Operating Income
FY2023 Financial Forecasts -Reasons for Change in Consolidated Operating Income 7 FY2023 Financial Forecasts Reasons for Change in Consolidated Operating Income from FY2022 to FY2023 (¥93.8 billion to ¥74.0 billion) There have been no revisions to the forecasts previously announced on May 11, 2023.
Slide 8: Orders Received - Results and Outlook
Orders Received - Results for FY2023 2nd Quarter and Outlook for FY2023 8 Orders Received Results for FY2023 2nd Quarter and Outlook for FY2023 • Orders received in the first half maintained levels similar to past fiscal years both in terms of the amount and the rate of progress and retained the ori
Slide 9: Business Performance - Building Construction
Business Performance – Building Construction (Consolidated) Billions of yen Orders Received Net Sales Operating Income Overseas Japan Overseas Japan 1,700.0 Overseas Japan 1,525.0 40.0 417.0 4.5 393.0 811.8 720.7 662.0 644.2 16.0 217.3 1,283.0 13.6 35.5 243.2 299.3 1,132.0 170.0 4.0 594.5 7.6 401.0
Slide 10: Business Performance - Civil Engineering
Business Performance– Civil Engineering (Consolidated) Billions of yen Orders Received Net Sales Operating Income Overseas Japan 510.0 Overseas Japan Overseas Japan 460.0 135.0 109.0 18.5 224.7 1.0 209.0 212.0 200.6 10.3 10.7 35.8 58.5 375.0 48.7 50.1 351.0 0.7 2.2 17.5 173.1 153.4 151.9 174.6 10.0
Slide 11: Business Performance - Real Estate Development and Others
Business Performance - Real Estate Development and Others (Consolidated) Billions of yen Orders Received Net Sales Operating Income Real Estate Development Business 2022Q2 Others Others and other Real Estate Development Business Real Estate Development Business 120.0 100.0 54.0 15.4 15.5 61.6 1.0 1.
Slide 12: Consolidated Business Performance (Total)
Consolidated Business Performance (Total) Billions of yen Orders Received Net Sales Operating Income Total Total 2,280.0 Total 2,135.0 74.0 1,081.3 973.5 924.3 903.5 41.7 30.8 2022Q2 2023Q2 FY2023 2022Q2 2023Q2 FY2023 2022Q2 2023Q2 FY2023 （FY） Forecast Forecast Forecast FY2023 2nd Quarter Results FY
Slide 13: Medium-Term Business Plan 2022 Investment Plan
Medium-Term Business Plan 2022 Investment Plan *Large scale M&A projects are not included in the plan above. 13 Medium-Term Business Plan 2022 Investment Plan The 1st half of FY2023 Results: ¥80.4 billion FY2023 Plan: ¥159.0 billion • Investment implemented is progressed as planned. • This plan incl
Slide 14: Medium-Term Business Plan 2022 Performance Indicator Targets
Medium-Term Business Plan 2022 Performance Indicator Targets 14 Medium-Term Business Plan 2022 Performance Indicator Targets • Along with the upward revision of the forecast of profit attributable to owners of parent, the full-year forecasts for EPS and ROE have been revised. • We will continue to i
Slide 15: Reducing Cross-Shareholdings
Reducing Cross-Shareholdings Policy of selling cross-shareholdings • Reduce cross-shareholdings to 20% or less of consolidated net assets as soon as possible before the end of March 2027 (Progress in agreement with the customers: ¥47.8 billion sold from FY2021, cumulative amount sold + Agreed sale a
Slide 16: Shareholder Returns
Shareholder Returns Dividend policy • Maintaining stable long-term dividends is a top priority to target a dividend on equity (DOE) ratio of approximately 3% to appropriately reflect equity levels • Considering the significant changes in the business environment envisaged in Medium-Term Business Pla
Slide 17: Net Cash Status
Net Cash Status Changes in interest-bearing debts, and cash and deposits (Consolidated) • The positive consolidated net cash position at the end of FY2022, ¥81.4 billion is temporary • Net cash as of September 30, 2023 decreased by ¥ 81.5 billion due to a large amount of prior payments for construct
Slide 18: Management Issues
Management Issues • The revised Labor Standards Act of Japan • Promoting Digital Transformation • Carbon Neutrality as Business Opportunities • Expanding Overseas Construction Business • Projects at Expo2050 Osaka, Kansai, Japan 18 18
Slide 19: Management Issues: The revised Labor Standards Act of Japan
Management Issues: The revised Labor Standards Act of Japan Initiatives toward the revised Labor Standards Act of Japan from FY2024 ◆ The cap on overtime work hours in the revised Labor Standards Act KPI* achievement rate for overtime work hours as of September 30, 2023 *Ratio of employees with over
Slide 20: Management Issues: Promoting Digital Transformation
Management Issues: Promoting Digital Transformation Listed as the DX Stocks 2023 All companies DX Stocks: 32 companies A general comment from DX Stocks 2023 evaluation committee （FY2023） TSE-listed: The Company can be expected to achieve results through its Approx. 3,900 efforts not only in streng
Slide 21: Management Issues: Promoting DX
Management Issues: Promoting DX Promoting labor saving and expanding productivity through next-generation production technologies and digital technologies ◆ Realize an on-site DX by digital twin platform in the construction phase, CONNECTIATM Reproduction of the existing condition Prior assessment f
Slide 22: Management Issues: Carbon Neutrality as Business Opportunities
Management Issues: Carbon Neutrality as Business Opportunities Expanding initiatives for eco-friendly architecture, including ZEB, a growth area ◆ Completed a ZEB (net ZEB) certification project (design and construction project) Design and Research Building, Kubota Global Institute of Kyowa Kirin Fu
Slide 23: Management Issues: Carbon Neutrality as Business Opportunities
Management Issues: Carbon Neutrality as Business Opportunities Started consulting business to support for the realization of carbon neutrality ◆ Provide one-stop support for customers’ carbon neutrality-related initiatives, from building inspection and energy-saving diagnosis to roadmap creation by
Slide 24: Management Issues: Expanding Overseas Construction Business
Management Issues: Expanding Overseas Construction Business Acquiring shares of MWH US Acquisitions, Inc., a major construction company in the water treatment facility construction market in the United States Resolved to acquire shares of MWH US through Obayashi USA, LLC, our wholly owned subsidiary
Slide 25: Management Issues: Projects at Expo 2025 Osaka, Kansai, Japan
Management Issues: Projects at Expo2050 Osaka, Kansai, Japan Construction Projects at Expo 2025 Osaka, Kansai, Japan ◆ Progressed the Grand Roof (Ring) and private sectors’ pavilions as planned The Grand Roof (Ring) at the venue of Expo Construction status of the Grand Roof (Ring) (Rendering of comp
Slide 26: Fulfilling social responsibility through safe construction
26 For the Group engaged in the construction business, fulfilling social responsibility through safe construction is the utmost priority. We will ensure that operations are carried out by once again placing the awareness that “we do not compromise on safety” at the base at all workplaces. 26
Slide 27: Disclaimer
Disclaimer This document has been translated from the Japanese original for reference purpose only. If there is any discrepancy between the Japanese original and this English translation, the former will prevail. This investor presentation is not to solicit any individuals or entities to buy or sell