Infroneer Holdings Inc. · TSE:5076
Infroneer — Q3 FY2023 Earnings Presentation
49 slides from Infroneer's earnings presentation, Feb 9, 2024
Slide 1: FY2023 3rd Quarter Financial Presentation
INFRONEER Holdings FY2023 3rd Quarter Financial Presentation February 9, 2024
Slide 2: FY2023 3Q Financial Presentation Contents
FY2023 3Q Financial Presentation Contents Main Contents 9. Road Civil Engineering: Net Sales and Gross Profit (MAEDA ROAD 1. Summaries Consolidated) 2. INFRONEER’s Performance 10. Road Civil Engineering: Orders Received, Net Sales, and Gross 3. Summary of Financial Results Profit (MAEDA ROAD Consoli
Slide 3: 1. Summaries
1. Summaries ① Summary of financial FY23 3Q results (P. 6) • As to the FY23 3Q results, sales and profits increased significantly year-on-year. • We expect to achieve the revised plan for the full-year result as of the FY23 2Q. ② FY23 3Q Results and FY23 Plan for each segments (P.18-35) Building Con
Slide 4: 1. Summaries (Road Civil Engineering, Machinery, Shareholder Returns)
1. Summaries Road Civil Engineering Segment (P.30-32) • For the FY23 3Q results, both net sales and gross profit increased year-on-year as a result of successfully passing on the rising material cost to the clients as well as carrying out numerous carry-over projects. • Maintaining market share rate
Slide 5: 1. Summaries: JWD Subsidiarization and Capital Strategy
1. Summaries ⑤ Subsidiarization of Japan Wind Development Co., Ltd and Capital Strategy (P. 13-16) • Stock acquisition completed on 31 January; JWD became a wholly owned subsidiary. We are planning to incorporate into consolidated financial statements from FY23 4Q. • We have raised 218.4 billion yen
Slide 6: 2. INFRONEER's Performance
2. INFRONEER’s Performance • We expect to achieve our revised plan for the 2Q due to steady progress in each segments. • We expect operating profit and added value to exceed the previous year (with added value expected to reach a record high). Operating profit Net income (Billions of Yen) (Billions
Slide 7: 3. Summary of Financial Results
3. Summary of Financial Results • For FY23 3Q results, both sales and profits showed a significant year-on-year increase. This substantial growth was due to the successful completion of major projects and the acquisition of design changes. • We expect to achieve the full-year plan for FY23. （Billion
Slide 8: 4. Segment Net Sales and Gross Profit
4. Segment Net Sales and Gross Profit ※ （Billions of Yen） FY22 FY23 FY23【forecast】 FY23【forecast】 FY22 JGAAP YoY IFRS※ YoY YoY Progress Result 3QResult 3QResult ① 2Q Revised 3Q Revised difference ③ー① 2Q Revised 3Q Revised difference ⑤ー① ② ③ ③ー② ④ ⑤ ⑤ー④ Net sales 495.8 561.4 65.6 73.6% 709.6 762.9 76
Slide 9: 5. Transition of Backlog, Order Intake and Profit Margin on Orders
5. Transition of Backlog, Order Intake and Profit Margin on Orders (Building Construction and Civil Engineering) • Backlog as of 3Q and planned at the end of the fiscal year is record high for the building construction. • The civil engineering order profit margin is expected to maintain a high level
Slide 10: 6. Strategies & Return Policies / Capital
6. Strategies & Return Policies / FY23 3Q Results and Forecast of Capital Medium-term Vision 2024 FY22 Year End FY23 3Q Result Notes Capital efficiency ROE 9.5％ 10.3% ー ー Equity ratio More than 30％ 38.1% 34.6% ー Optimal Due to increased demand for working capital capital (mainly advanced payments fo
Slide 11: 7. Main Factors for Increase/Decrease in the Consolidated Balance Sheet
7．Main Factors for Increase/Decrease in the Consolidated Balance Sheet Assets Liabilities and Net assets （Billions of Yen） （Billions of Yen） 926.6 +121.2 1046.9 926.6 +120.4 1046.9 (821.4) ※1 (+125.8) (946.3) ※1 +123.8 Short-term loans +77.1 Liabilities payable ＋102.9 278.2 Long-term loans Main Fact
Slide 12: 8. Main Factors for Increase/Decrease in G&A
8．Main Factors for Increase/Decrease in G&A Personnel expenses • Reserves increased due to the introduction of the Employee Stock Ownership Plan (J-ESOP) for all group employees • Increase due to the introduction of new personnel policies and regular salary raises. R&D costs • Increase in new develo
Slide 13: 9. Capital Strategies and Share Price Performance
9．Capital Strategies and Share Price Performance • Following the announcement of the FY22 financial statement, the share price has surpassed the record since the listing on the stock exchange market. • We will continue to perform capital-efficiency oriented management by constantly executing our cap
Slide 14: 10-1. Japan Wind Development Co., Ltd. (JWD) Becomes Subsidiary
10-1. Japan Wind Development Co., Ltd.（JWD）Becomes Subsidiary • We completed the acquisition of JWD's shares on January 31st, making the company a wholly owned subsidiary. On the same date, we secured a loan of 218.4 billion yen. • We plan to incorporate JWD's financial results into our group's cons
Slide 15: 10-2. Capital Strategy
Re-posting of 12 December Presentation Material 10-2. Capital Strategy • We emphasize the balance between maintaining a financial foundation that contributes to growth and shareholder returns. • We aim to maintain our rating while considering dilution. 218.4 Billion Yen Debt Financing Consideration
Slide 16: 10-3. Capital Financing Methods
10-3. Capital Financing Methods • At a meeting of the Board of Directors held today, INFRONEER resolved to partially amend the Articles of Incorporation (an agenda item to be submitted to the General Meeting of Shareholders) and to submit the Shelf Registration Statement for Series 1 of Bond-type Cl
Slide 17: Impact on voting rights of existing shareholders and financial indicators
Appendix: Impact on voting rights of existing shareholders and financial indicators • Bond-type class shares do not dilute the voting rights of current ordinary shareholders and would have a limited impact on financial indicators. Voting No voting rights Rights No dilution of voting rights Conversio
Slide 18: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 17
Slide 19: 1. Net Sales and Gross Profit (Maeda Corp. Non-Consolidated)
Include real estate business Building Construction 建築 1. Net Sales and Gross Profit (Maeda Corp. Non-Consolidated) ・FY23 3Q Increase in net sales as planned due to steady progress in building construction. Due to the surge in labor costs and equipment work costs, we were unable to place orders to su
Slide 20: 2. Orders Received and Profit Margin of Orders Received
Include real estate business Building Construction 建築 2. Orders Received and Profit Margin of Orders Received (Maeda Corp. Non-Consolidated) ・FY23 3Q We have received orders steadily for large-scale redevelopment (housing) and production facilities. ・FY23 FY We forecast to meet our 280 billion yen t
Slide 21: 3. Types of Orders Received (Maeda Corp. Non-Consolidated)
Include real estate business Building Construction 3. Types of Orders Received (Maeda Corp. Non-Consolidated) ・FY23 FY The share of the “Offices, Governmental Buildings" sector will increase due to obtaining contracts for large- scale office building projects. We also expect an increase in the “Amus
Slide 22: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 21
Slide 23: 4. Net Sales and Gross Profit (Civil Engineering)
Including real estate sector Civil Engineering 4. Net Sales and Gross Profit (Maeda Corp Non-Consolidated Domestic) ・FY23 3Q Obtaining challenging change orders for projects completed this fiscal year, along with improvements in construction efficiency and shortened construction periods, led to a si
Slide 24: 5. Orders Received and Profit Margin on Orders Received
Including real estate sector Civil Engineering 5. Orders Received and Profit Margin on Orders Received (Maeda Corp Non-Consolidated) ・FY23 2Q Both the amount of orders and the profit margin on orders continue to be steady. In particular, the profit margin of orders has been maintained at a high leve
Slide 25: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 24
Slide 26: 6. Contribution to Consolidated Profits
Infrastructure Management 6. Contribution to Consolidated Profits • With respect to Infrastructure Management's gain on sale, we plan to defer the sale of renewable energy projects and some development assets for this period, given the outperformance in other segments and the further improvement in
Slide 27: 7. Major Infrastructure Management Projects in Japan
Infrastructure Management 7. Major Infrastructure Management Projects in Japan • Solid track record in a variety of infrastructure services POINT • Through comprehensive facilities management (“CFM”), we attempt to leverage the strength of private company to implement efficient comprehensive managem
Slide 28: 8-1. Policy Trends: PPP/PFI Promotion Action Plan (Revised 2023)
Re-posting of FY23 1Q material Infrastructure Management インフラ運営 8-1. Policy Trends：PPP/PFI Promote Action Plan（Revised 2023）has been released by the Cabinet Office • Kishida Cabinet positions PPP/PFI as the core of new capitalism and announces the new “Action Plan”. • The Action Plan sets project si
Slide 29: 8-2. Water PPP
Re-posting of FY23 1Q material Infrastructure Management インフラ運営 8-2. Water PPP For water supply, industrial water supply, and sewage system, in the 10 years of the PPP/PFI Promotion Action Plan period (2022- 2031),PPP/PFI method (management and renewal integrated system) for phased transition to c
Slide 30: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 29
Slide 31: 9. Net Sales and Gross Profit (MAEDA ROAD Consolidated)
Road Civil Engineering 9. Net Sales, and Gross Profit (MAEDA ROAD Consolidated) • FY23 3Q Increase in sales and profit compared to the same period of the previous year due to the price pass- through of the portion attributed to the rising cost of materials. Maintaining market share through the trust
Slide 32: 10. Orders Received, Net Sales, and Gross Profit (Construction Business)
Road Civil Engineering 10. Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated Construction business) • FY23 3Q Due to the reflection of the surge in material costs in the quoted price, there was an increase in revenue and profit compared to the same period of the previous year. •
Slide 33: 11. Net Sales and Gross Profit (Manufacturing and Sales Business)
Road Civil Engineering 11. Net Sales and Gross Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business) ・FY23 3Q Both sales and income increased year-on-year due to the cost pass on implemented in the previous quarter. ・FY23 FY We will maintain stable profit margins by keeping appropriate s
Slide 34: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 33
Slide 35: 12. Net Sales and Gross Profit (MAEDA SEISAKUSHO Consolidated)
Machinery 12. Net Sales and Gross Profit (MAEDA SEISAKUSHO Consolidated) ・FY23 3Q Both Komatsu products and our own products moved steady, resulting in increased sales and profits year-on-year. ・FY23 FY Both sales and gross profit have been revised upwards for the full-year plan. 3Q Full Year (Billi
Slide 36: 13. Net Sales and Gross Profit (MAEDA SEISAKUSHO Consolidated)
Machinery 13. Net Sales and Gross Profit※1 (MAEDA SEISAKUSHO Consolidated) • FY23 3Q In the construction machinery business, sales have been steady due to the normalization of delivery times for new vehicles, which had been delayed due to the impact of COVID-19. In the industrial and steel structure
Slide 37: Appendix
Appendix 36
Slide 38: IFRS Transition Schedule and Major Changes Due to the Transition
Re-posting of FY23 1Q material IFRS Transition Schedule and Major Changes Due to the Transition FY23 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) K
Slide 39: Maeda Corp. FY23 3Q Results and Full-Year Forecast
Maeda Corp. [Non-Consolidated] Maeda Corp. - FY23 3Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 3Q Results FY23 3Q Results FY23 2Q Revised FY23 3Q Revised YoY Progress （JGAAP） （JGAAP） （JGAAP） （JGAAP） Net Sales 258.2 306.7 48.5 425.7 423.9 72.4% Total 141.7 179.3 37.7 258.3 258.3 69.4
Slide 40: MAEDA ROAD FY23 3Q Results and Full-Year Forecast
MAEDA ROAD [Consolidated] MAEDA ROAD - FY23 3Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 3Q Results FY23 3Q Results FY23 Forecast FY23 3Q Revised YoY Progress (JGAAP) (JGAAP) (JGAPP) (JGAPP) Net sales 178.3 186.7 8.4 246.8 248.7 75.1% Construction Business 122.2 127.6 5.5 166.0 169.
Slide 41: MAEDA SEISAKUSHO FY23 3Q Results and Full-Year Forecast
MAEDA SEISAKUSHO [Consolidated] MAEDA SEISAKUSHO - FY23 3Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 3Q Results FY23 3Q Results FY23 2Q Revised FY23 3Q Revised YoY Progress (JGAAP) (JGAAP) (JGAPP) (JGAPP) Net sales 26.9 31.1 4.2 40.4 40.7 76.6% Construction Machinery 15.7 18.3 2.6 2
Slide 42: INFRONEER Group's FY23 3Q Results and Full-Year Forecast
INFRONEER Group’s FY23 3Q Results and FY23 Full-Year Forecast (Millions of Yen) FBS Fujimi Koken JM Consolidated FY22 FY23 FY22 FY23 FY22 FY23 Subsidiaries FY23 2Q FY23 3Q FY23 2Q FY23 3Q FY23 2Q FY23 3Q 3Q 3Q 3Q 3Q 3Q 3Q Revision Revision Revision Revision Revision Revision Results Results Results
Slide 43: Business Model of Infrastructure Management Business
Re-posting of FY22 3Q material Infrastructure Management Business Model of Infrastructure Management Business • 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 Valu
Slide 44: Differences between Contribution to profit and Segment profit
Re-posting of FY23 1Q material Infrastructure Management インフラ運営 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 incom
Slide 45: Growth Strategy: Realization of an integrated infrastructure service company
Re-posting of FY23 2Q material Growth Strategy: Realization of an integrated infrastructure service company 44 M＆A Strategic IT・DX strategy Capital Investment (Accenture) Recycle (TOSHIBA etc.) Engineering Renewable Energy Capabilities 1st place in Solar|Wind(Onshore&Off technical shore)|Biomass eva
Slide 46: INFRONEER Group Employee Stock Ownership Plan
Re-posting of FY23 1Q material INFRONEER Group Employee Stock Ownership Plan • We will implement the Employee Stock Ownership Plan (“J-ESOP”), which distributes INFRONEER Holdings’ stocks to all employees of INFRONEER Holdings’ and the Group companies, subject to certain criteria. • The purpose of t
Slide 47: Integrated Report 2023
Re-posting of FY23 2Q material Integrated Report 2023 -Making Steady Progress as an Integrated Infrastructure Service Company- We have issued our Integrated Report -Making Steady Progress as an Integrated Infrastructure Service Company- （Issued on 2023 Sep 21） POINT President and CEO Kibe discusse
Slide 48: News
“Company Briefing For Individual Investors” Available on News１ Nihon Securities Journal Official YouTube Channel! We held company briefings in Aichi (Ichinomiya City), Tokyo, Fukuoka, and Hiroshima, which were highly acclaimed. During these sessions, we shared INFRONEER‘s vision and discussed social
Slide 49: 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