Infroneer Holdings Inc. · TSE:5076
Infroneer — Q3 FY2022 Earnings Presentation
46 slides from Infroneer's earnings presentation, Feb 14, 2023
Slide 1: INFRONEER Holdings FY2022 3rd Quarter Financial Presentation
INFRONEER Holdings FY2022 3rd Quarter Financial Presentation February 14, 2023
Slide 2: Contents
FY2022 3rd Quarter Financial Presentation Contents 1. Points 11. Road Civil Engineering :Orders Received, Net Sales, and 2. Transition of Results and Forecast Gross Profit (MAEDA ROAD Consolidated Construction 3. Summary of Financial Results business) 4. Segment Net Sales and Gross Profit 12. Road C
Slide 3: 1. Points
1. Points ① FY22 3Q Results (Cumulative total ) and FY22 Forecast （P.4, P.7） • In 3Q, Net sales and gross profits increased year-on-year due to significant increase in profit in civil engineering and infrastructure operations • Net income for the full year is expected to reach a record high. (ratio
Slide 4: 1. Points: Machinery, Shareholder Returns, Cross-shareholdings
1. Points Machinery Segment （P.28-30） • In 3Q, Net sales and gross profits were at the same level year-on-year. Due to strong sales in- house products such as “crawler cranes”, the impact of delays in parts supply and material price hikes was limited. • Demand remains strong and full-year results ar
Slide 5: 2. Transition of Results and Forecast
２．Transition of Results and Forecast • Net income for the full year is expected to reach a record high. (ratio to Maeda Corp.[Consolidated]) • Operating profit and Added value are expected to be at the same level year-on-year. Operating profit Net income (Billions of Yen) Operating profit Operating
Slide 6: 3. Summary of Financial Results
３．Summary of Financial Results • In 3Q , Net sales and gross profits increased year-on-year due to sale of the wind power generation business etc. • The full year plan was revised as of 2Q due to delays of progress in backlogs, but net income for the full year is expected to reach a record high due
Slide 7: 4. Segment Net Sales and Gross Profit
４．Segment Net Sales and Gross Profit （Billions of Yen） INFRONEER ※ INFRONEER FY22 FY21 YoY FY21 FY22 Results Forecast Forecast(Revised) +/- Progress ③-① 3Q Results 3Q Results ① ② ③ ③-② Net sales 482.3 495.8 70.3% 682.9 730.6 705.0 △ 25.6 22.1 Building Construction 152.6 141.5 62.0% 216.1 238.3 228.4
Slide 8: 5. Transition of Contract Backlogs
５． Transition of Contract Backlogs (Building Construction and Civil Engineering) • Expect record-high contract backlogs at the end of term in both the building construction and civil engineering segment, and high profit margins on orders. • The profit margin on orders for building construction recov
Slide 9: 6. Results and Forecast of Capital Strategies & Return Policies
６．Results and Forecast of Capital Strategies & Return Policies (at FY22 3Q) Shareholder returns • Following the acquisition of 20 billion yen of treasury stock in FY21, 10 billion yen will be acquired in FY22 and will be canceled promptly. (Announced on August 10, 2022) Cross-shareholdings • Sales i
Slide 10: 7. Sales of Cross-shareholdings
７．Sales of Cross-shareholdings • Sales in progress with a target of approx. 20 billion yen in FY22. • Approximately 8.5 billion yen was sold in the 3Q, and the cumulative FY22 sales are expected to total approximately 20.4 billion yen. （billions of Yen） 25.0 30.0% 27.6% Target of FY22 25.5% 20 billi
Slide 11: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 10
Slide 12: 1. Net sales and Gross Profit (Maeda Corp. Non-Consolidated)
Include real estate business Building Construction １． Net sales and Gross Profit ( Maeda Corp. Non-Consolidated ) • FY22 3Q Progress of net sales is on schedule, after revision of construction plan due to delays in the stars of construction • FY22 FY Net sales and gross profit are expected to recove
Slide 13: 2. Orders Received and Profit Margin of Orders Received
Include real estate business Building Construction ２． Orders Received and Profit Margin of Orders Received ( Maeda Corp. Non-Consolidated ) • FY22 3Q Profit margin on orders for Building construction recovered from 6.0% in 2Q to 6.3% in 3Q due to acquisition of design changes such as price increases
Slide 14: 3. Types of Orders received
Building Construction ３．Types of Orders received ( Maeda Corp. Non-Consolidated ) • FY22 FY The ratio of “Condominium” ratio will increase due to multiple orders for redevelopment projects will increase. Two applications “Commercial Buildings/Factory/Warehouse" and “Condominium" drove overall orders
Slide 15: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 14
Slide 16: 4. Net sales and Gross Profit (Civil Engineering)
Include real estate business Civil Engineering 土木 4．Net sales and Gross Profit ( Maeda Corp. Non-Consolidated ) • FY22 3Q Net sales and gross profits increased due to steady progress in profitable backlogs. • FY22 FY It is expected to progress as planned, but we aim to increase net sales and gross p
Slide 17: 5. Orders Received and Profit Margin of Orders Received
Include real estate business Civil Engineering 土木 5．Orders Received and Profit Margin of Orders Received ( Maeda Corp. Non-Consolidated ) • FY22 3Q Orders received were declined in private sector orders, but profit margin of orders received remained high. • FY22 FY Focus on receiving orders for larg
Slide 18: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 17
Slide 19: 6. Contribution to Consolidated profits
Infrastructure Management 6．Contribution to Consolidated profits • Significant increase in net sales and gross profits year-on-year due to sale of one wind power project in1Q. • Concluded basic agreement for Miura City Public Sewerage Concession, scheduled to start operation in April. • Full-year pr
Slide 20: 7. Initiatives achievements of PPP due to transition to HD structure
Infrastructure Management 7．Initiatives achievements of PPP due to transition to HD structure • After the launch of HD, Maeda Corp., Maeda Road, MAEDA SEISAKUSHO,JM, and FBS have established a system to promote sales in areas across the country in an integrated manner on a regional basis. The muni
Slide 21: 8. Major our infrastructure operations in Japan
Infrastructure Management 8．Major our infrastructure operations in Japan Solid track record in a variety of infrastructure services POINT Through comprehensive private contracting, we attempt to eliminate inefficiencies caused by the stove-piped structure of municipalities and implement efficien
Slide 22: 9. Miura Public Sewerage (Eastern Treatment District) Operation Project
Infrastructure Management Infrastructure Operations 9．Miura Public Sewerage (Eastern Treatment District) Operation Project First sewerage concession in Japan which includes maintenance and renewal of all treatment plants, pumping stations, and pipelines in one treatment district POINT Solving co
Slide 23: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 22
Slide 24: 10. Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated)
Road Civil Engineering 10．Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated) • FY22 3Q Net Sales increased but Gross profit decreased year-on-year. Business performance is improving due to the effects of price hikes. • FY22 FY Net sales and Gross profit are expected to achieve th
Slide 25: 11. MAEDA ROAD Consolidated Construction business
Road Civil Engineering 11． Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated Construction business) • FY22 3Q Net sales and Gross profit increased year-on-year due to stable orders and progress in passing on higher material costs to the quoted prices. • FY22 FY We will continue t
Slide 26: 12. MAEDA ROAD Manufacturing and Sales Business
Road Civil Engineering 12． Net Sales and Gross Profit MAEDA ROAD Consolidated Manufacturing and Sales Business • FY22 3Q Although Net sales increased and Gross profits decreased year-on-year, business performance is improving due to straight asphalt prices trending downward. • FY22 FY Sales prices e
Slide 27: 13. The Impact of Soaring Prices (Road Civil Engineering)
Road Civil Engineering 13．The Impact of Soaring Prices (Road Civil Engineering) • The current price of straight asphalt which is the main material of asphalt mixtures peaked in July and are trending downward. • Forecast to remain flat, and returned to profitability from Dec. • However, increases in
Slide 28: 14. Establishment of JAPAN BIO FUEL Co., Ltd.
Road Civil Engineering 14. Topics “Establishment of JAPAN BIO FUEL Co., Ltd.” A new company was established as a subsidiary of Maeda Road to produce and sell "bio-heavy oil". POINT Significant reduction in CO2 emissions by using "bio-heavy oil" in the productions of asphalt mixture. The compan
Slide 29: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 28
Slide 30: 15. Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)
Machinery 15. Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated) • FY22 3Q Year-on-year increase in both Net sales and gross profit. • FY22 FY Both net sales and gross profit are expected to achieve the full-year plan. 3Q Full Year (Forecast) 29
Slide 31: 16. Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)
Machinery 16. Net Sales and Gross Profit※1 MAEDA SEISAKUSHO (Consolidated) • FY22 3Q Sales of in-house products such as crawler cranes are steady strong. • FY22 FY Demand remains strong and full-year results are expected to achieve the plan. (Billions of Yen) Construction Machinery※2 (Billions of Ye
Slide 32: Appendix
Appendix 31
Slide 33: IFRS Transition Schedule and Major Changes
IFRS Transition Schedule and Major Changes Associated with Transition Accounting Standards FY23 applied After FY24 1Q 2Q 3Q 4Q Consolidated Performance (Forecast) JGAAP／IFRS IFRS Consolidated Performance JGAAP IFRS※ ※Cumulative total for 1Q~4Q is disclosed at the time of 4Q results. (Billions of yen
Slide 34: 1. [Non-Consolidated] Maeda Corp. FY22 3Q Results and Full-Year Forecast
Maeda Corp. 1. [Non-Consolidated] Maeda Corp. FY22 3Q Results and Full-Year Forecast (Billions of Yen) FY21 3Q Results FY22 3Q Results YoY FY22 Forecast FY22 Revised Forecast Progress Net Sales 254.8 258.2 3.3 402.5 383.9 67.3% Total 152.5 140.3 △ 12.3 238.5 228.3 61.4% Bulding Construction Domestic
Slide 35: 2. [Consolidated] MAEDA ROAD FY22 3Q Results and Full-Year Forecast
MAEDA ROAD 2. [Consolidated] MAEDA ROAD FY22 3Q Results and Full-Year Forecast (Billions of Yen) FY21 FY22 FY22 FY22 YoY Progress 3Q Results 3Q Results Forecast Revisied Forecast Net sales 169.1 178.3 9.2 243.0 239.0 74.6% Construction Business 115.8 122.2 6.4 166.0 165.2 74.0% Manufacturing and Sal
Slide 36: 3. [Consolidated] MAEDA SEISAKUSHO FY22 3Q Results and Full-Year Forecast
MAEDA SEISAKUSHO 3. [Consolidated] MAEDA SEISAKUSHO FY22 3Q Results and Full-Year Forecast (Billions of Yen) FY21 FY22 FY22 FY22 YoY Revisied Progress 3Q Results 3Q Results Forecast Forecast Net sales 26.0 26.9 1.0 37.2 72.4% Construction Machinery 16.8 15.7 △ 1.1 21.9 71.8% Industrial Machinery and
Slide 37: 4. INFRONEER Group's FY22 3Q Results and Full-Year Forecast
4. INFRONEER Group’s FY22 3Q Results and Full-Year Forecast (Millions of Yen) FBS Fujimi Koken JM Consolidated FY21 FY22 FY22 FY22 FY21 FY22 FY22 FY22 FY21 FY22 FY22 FY22 subsidiaries Revised Revised Revised 3Q Results 3Q Results Forecast 3Q Results 3Q Results Forecast 3Q Results 3Q Results Forecast
Slide 38: 5. Segments
Re-posting of FY22 2Q material 5．Segments • Segments of INFRONEER Holdings and Maeda Corp. will be changed. • There will be no major changes in results due to the change in segments. NEW Segment of INFRONEER Holdings FORMER Segment of Maeda Corp. MK Building Construction Building MK Building Constru
Slide 39: 6. Business Model of Infrastructure Operations
Infrastructure Management 6．Business Model of Infrastructure Operations Re-posting of FY22 2Q material • 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!!
Slide 40: 7. Establishment of New Business Platform of Infrastructure Operations
Re-posting of FY22 2Q material Infrastructure Management Infrastructure Operations ７．Establishment of New Business Platform of Infrastructure Operations • We built a new business platform including two types of infrastructure funds, the Asset Creation Fund Series(“ACF”) and the Income Fund Series (“
Slide 41: 8. Investment Case No. 1 of Income Fund (ICF)
Infrastructure Management Infrastructure Operations ８． Investment Case No. 1 of Income Fund（ICF） Re-posting of FY22 2Q material • Global Infrastructure Management and SMFL MIRAI Partners Company, Limited formed Income Fund (ICF), an infrastructure fund that invests in infrastructure projects, etc. i
Slide 42: 9. Policy Trends
Infrastructure Management 9．Policy Trends Re-posting of FY22 2Q material ー Act on Promotion of Private Finance Initiative (Act No.117 of July 30, 1999) published by the Cabinet Office The Kishida Cabinet positions PPP/PFI as the core of a New Form of Capitalism. • Act on Promotion of Private Finance
Slide 43: 10. Difference between Contribution to profit and Segment profit
Re-posting of FY22 2Q material Infrastructure Management インフラ運営 10．Difference between with “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 operatin
Slide 44: 11. Topics: Integrated Report 2022
Re-posting of FY22 2Q material 11. Topics 「Integrated Report 2022 ~ Safety, Security, and Sustainability ~」 INFRONEER Integrated Report 2022 ~ Safety, Security, and Sustainability ~ Issued (Date of issue: October 3, 2022) All Initiatives Lead to Solving Social Issues and Improving Corporate Value Th
Slide 45: News
The “Company Briefing for Individual Investors” has been released News１ on the official YouTube channel of the Japan Securities Journal. The event was held at three venues in Osaka, Tokyo, and Nagoya. We communicated to individual investors about the social issues surrounding infrastructure and the
Slide 46: Disclaimer
【Disclaimer】 • This financial presentation document is made in Japanese and translated in English. Any texts, figures and descriptions etc. in Japanese document is the original and the English document is for reference purposes. If there is any conflict or inconsistency between these two documents,