Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — H1 FY03/2022 Earnings Presentation
31 slides from Tokyu Construction's earnings presentation, Nov 18, 2021
Slide 1: The First Half Financial Results Briefing
FY03/2022 The First Half Financial Results Briefing November 18, 2021
Slide 2: Revision to the Full-Year Forecast
FY03/2022 Revision to the Full-Year Forecast The First Half FY03/2022 Financial Results Briefing
Slide 3: Factors Contributing to Revisions to Full-year Forecast
Factors Contributing to Revisions to Full-year Forecast “Notice Concerning Revisions to Full-year Forecast” (November 8, 2021) ✓ Recorded estimated losses related to “Defective Ends of Piles for an Ongoing Construction Project” (announced on July 26, 2021) ✓ Recorded estimated costs of removing temp
Slide 4: Impact on Earnings
Impact on Earnings (Millions of yen) FY03/2022 Forecast Factor (1) Difference compared Changes resulting Factor (2) 【Consolidated】 Revised(Nov 8) Previous(May 12) to previous from individual Other changes factors If factor (1) Forecast Ratio Forecast Ratio Forecast pt Forecast pt Forecast pt were ex
Slide 5: Dividend Forecast
Dividend Forecast Based on the policy of aiming to achieve a dividend on equity ratio (DOE) of 4.0% or more, we will pay dividends steadily and consistently in a manner not easily affected by short-term profit volatility Dividend per share(yen) 40 31 30 30 25 26 Year-end 20 （forecast） 10 Interim 20
Slide 6: Overview of First Half FY03/22 Financial Results
FY03/2022 Overview of First Half FY03/22 Financial Results The First Half FY03/2022 Financial Results Briefing
Slide 7: Overview
Overview ➢ Although some industries remain in difficult situations due to the impact of COVID- 19, there are signs of a recovery, supported by strong public investment and developments in recoveries in the domestic and overseas economies. Business ➢ While warehousing and distribution facilities are
Slide 8: FY03/22 First Half Results (Consolidated)
FY03/22 First Half Results (Consolidated) The Company’s non-consolidated orders fell 2.1% year on year. Progress of about 47% has been made toward the full-year forecast. Although net sales rose due to an increase in completed construction sales, profit dropped significantly due to the recording of
Slide 9: Factors Affecting Net Income (Consolidated)
Factors Affecting Net Income (Consolidated) Completed construction gross profit significantly decreased due to individual factors 6,000 Increase in (Millions of yen) completed construction Decline in gross profit 4,000 loss on excluding Decline valuation of individual factors 1H FY03/22 in tax inves
Slide 10: FY03/22 First Half Results (Non-Consolidated)
FY03/22 First Half Results (Non-Consolidated) Although net sales rose due to an increase in completed construction sales in building construction, profit dropped significantly owing to individual factors (Millions of yen) Difference 1H FY03/22 1H compared to Rate of Items FY03/21 previous change For
Slide 11: Completed construction sales and gross profit (Civil engineering)
Completed construction sales・Completed construction gross profit（ Non-Consolidated ／ Civil engineering ） Completed construction sales: Declined due to lower revenue from domestic public projects and overseas projects Gross profit: Declined significantly due to revenue deterioration caused by individ
Slide 12: Orders (Civil engineering)
Orders（ Non-Consolidated ／ Civil engineering ） Orders from the Tokyu Group increased due to a base effect, and orders for domestic public projects were steadily won despite a year-on-year fall in them Progress of about 45% has been made toward the ¥57 billion full-year order forecast 24,748 25,723 (
Slide 13: Completed construction sales and gross profit (Building construction)
Completed construction sales・Completed construction gross profit（ Non-Consolidated ／ Building construction） Completed construction sales: Increased about 40% year on year as major projects received in the previous fiscal year progressed Gross profit: Increased as a result of higher completed constru
Slide 14: Orders (Building construction)
Orders（ Non-Consolidated ／ Building construction） Orders from the general private sector, which generated several orders for major logistics projects in the previous fiscal year, declined, while orders from the Tokyu Group were boosted by major project orders Progress of about 47% has been made towa
Slide 15: Selling, general & administrative expenses (Consolidated)
Selling, general & administrative expenses （Consolidated） Selling, general & administrative expenses increased ¥432 million year on year Expenses for R&D, digital technology, and innovation promotion increased SG&A SG&A expenses (Millions of yen) expenses /Net sales 7,608 7,563 7,130 7.5% 6.8% 4.1%
Slide 16: Balance Sheet (Consolidated)
Balance Sheet（Consolidated） The equity ratio was at 44.3%, a drop of 1.1 percentage points compared with March 31, 2021 (Millions of yen) Liabilities and Assets equity Bills payable, 226,568 226,568 construction 211,820 211,820 accounts payable, etc.-5,707 Short-term loans payable-5,073 95,046 Curre
Slide 17: Interest-bearing debt, Equity, D/E ratio (Consolidated)
Interest-bearing debt, Equity, D/E ratio（Consolidated） D/E ratio was at 0.23 times, declining from March 31, 2021 due to reduced short-term borrowings Interest-bearing debt (Millions of yen) Equity 101,215 102,963 93,886 26,557 26,754 21,615 As of March 31, As of March 31, As of September 30, 2020 2
Slide 18: Cash flow statement (Consolidated)
Cash flow statement（Consolidated） Free cashflow improved to ¥10.3 billion as cash flows from operating activities increased due to reduced accounts receivable trade, etc. (Millions of yen) Year ended Year ended Items September 30, September 30, Remarks 2020 2021 Cash increase mainly due to a decreas
Slide 19: Full-Year Forecast
FY03/2022 Full-Year Forecast The First Half FY03/2022 Financial Results Briefing
Slide 20: P/L Forecast (Consolidated)
P/L Forecast（Consolidated） The full-year forecast announced on May 12 was revised downward due to lower net sales reflecting delays in order receipt and the progress of some construction projects, as well as reduced profit caused by the recording of provisions (Millions of yen) FY03/2022 Forecast Di
Slide 21: P/L Forecast (Non-Consolidated)
P/L Forecast (Non-Consolidated) Although net sales are forecast to increase due to higher completed construction sales in building construction, profit is forecast to fall significantly owing to the recording of provisions SG&A expenses are expected to include expenses for R&D, digital technology, a
Slide 22: Order Forecast (Non-Consolidated)
Order Forecast（Non-Consolidated） Civil engineering: Orders from general private companies are forecast to fall back from the previous fiscal year, when orders for major projects were recorded, despite rising orders from the Tokyu Group that was affected by the COVID-19 pandemic in the previous fisca
Slide 23: P/L・Order Forecast (Civil engineering)
P/L・Order Forecast（Non-Consolidated／Civil engineering ） Profit margin is forecast to decline significantly due to the impact of railway and overseas projects, in addition to individual factors (profit margin would be at the 8.3% level if individual factors were excluded) Orders are expected to reach
Slide 24: P/L・Order Forecast (Building construction)
P/L・Order Forecast（Non-Consolidated／Building construction） While completed construction sales are forecast to increase owing to progress in major projects, profit margin is forecast to fall due to individual factors (profit margin would be at the 8.4% level if individual factors were excluded) Order
Slide 25: Net Sales・Gross Profit Forecast (Construction Renewal)
Net Sales・Gross Profit Forecast（Construction Renewal） Although client inquiries have been gradually increasing recently, the recovery is expected to be limited due to the impact of the COVID-19 pandemic Proposals for renewals making each whole floor or tenant “ZEB Ready” will be made to customers (M
Slide 26: Net Sales・Gross Profit Forecast (International・Real estate)
Net Sales・Gross Profit Forecast（International・Real estate） Overseas: Business expansion will be centered on ODA projects in Southeast and South Asia. Progress in Myanmar projects will be affected Real estate: Profitability is forecast to improve due to the disappearance of effects from the deteriora
Slide 27: Toward Earnings Recovery
Toward Earnings Recovery We take the incidents that led to the revision of the earnings forecast seriously and are fully committed to ensuring they do not happen again and restoring confidence We will make all-out efforts to strengthen proposal capabilities, win orders for target projects, and impro
Slide 28: Appendix: Provision of three values, DX, Human resources
Appendix：Provision of three values（Decarbonization/Zero waste/ Disaster prevention and mitigation）・DX・Human resources Decarbonization Zero waste Efforts to meet the needs for green architecture (ZEB, ZEH-M) Efforts at worksites Propose optimal plans that meet the needs of To reduce CO2 emissions, al
Slide 29: Appendix: Provision of three values, DX, Human resources
Appendix：Provision of three values（Decarbonization/Zero waste/ Disaster prevention and mitigation）・DX・Human resources Digital October 2020 Turned an overseas BIM facility design BIM in Building Construction company into a subsidiary (Indochine Engineering Limited) Utilize BIM as a Simulation of buil
Slide 30: Appendix: Provision of three values, DX, Human resources
Appendix：Provision of three values（Decarbonization/Zero waste/ Disaster prevention and mitigation）・DX・Human resources Disaster prevention and mitigation Human resources Actions for disaster-prevention measures and renewal of aging infrastructure Monitor the condition of building structures Continue
Slide 31: Notes
[Inquiries] Nishida/Morita Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp Notes Forward-looking statements such as forecasts of the company’s results contained in this document are based on information available as of the date of publi
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