Nippon Densetsu Kogyo Co., Ltd. · TSE:1950

Nippon Densetsu Kogyo — FY2024 Earnings Presentation

44 slides from Nippon Densetsu Kogyo's earnings presentation, May 16, 2025

Slide 1: Briefing on the Financial Results for FY2024
Briefing on the Financial Results for FY2024 (the Fiscal Year Ended March 31, 2025) May 16, 2025 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
Slide 2: Table of Contents
Table of Contents 1 Company Overview 2 Financial Results Overview FY2024 (Consolidated) 3 Financial Results Forecast FY2025 (Consolidated) Revision of NIPPON DENSETSU Three-year Management Plan 2024 4 and Future Efforts 5 Implementing Management That Is Conscious of Cost of Capital and Stock Price C
Slide 4: Company Overview
1 Company Overview Covers a wide range of construction, including Leading company in the field of construction of electrical facilities for buildings construction of electrified railway (Buildings), construction of information and Nationwide business operations equipment (Railways) communication sys
Slide 6: Financial Results Overview FY2024: Summary of Financial Results
2 Financial Results Overview FY2024 (Consolidated) Summary of Financial Results Business Environment FY2024 Results Dividends ⚫ Public investment remained ⚫ Orders, net sales, operating ⚫ Introduced a dividend payout solid, and private capital profit, ordinary profit, and ratio as a metric to clarif
Slide 7: Financial Results Overview FY2024 (Consolidated)
2 Financial Results Overview FY2024 (Consolidated) (Figures in parentheses are ratios to net sales. Unit: million yen) Comparison with the FY2023 Results FY2024 Forecast (A) FY2024 Results (B) forecast (B-A) Backlog at beginning of period 156,811 173,719 173,719 — —% Orders 208,036 197,100 223,718 2
Slide 8: Financial Results Overview FY2024 (Consolidated)
2 Financial Results Overview FY2024 (Consolidated) (Unit: million yen) Orders Compared to FY2023: +¥15.6 bn Sales Compared to FY2023: +¥22.8 bn Compared to Forecast: +¥26.6 bn Compared to Forecast: +¥11.7 bn 300,000 300,000 223,718 216,922 208,036 197,100 205,160 182,693 194,031 200,000 172,335 200,
Slide 9: Factors for Changes in Operating Profit (Year on year)
2 Financial Results Overview FY2024 (Consolidated) Factors for Changes in Operating Profit (Year on year) (Unit: million yen) Increase in Increase in profit on fixed Increase completed expenses in fixed construction (System expenses Increase in expenses) (Personnel Increase in contracts fixed Increa
Slide 10: Summary by Business Segment
2 Financial Results Overview FY2024 (Consolidated) Summary by Business Segment Construction of Electrified Railway Equipment Construction of Electrical Facilities for Buildings ⚫•受注高は各鉄道事業者の工事抑制の影響を受け減 Orders from JR East that had experienced some ⚫ We maintained a high level of orders while 少 delay
Slide 11: Summary by Business Segment
2 Financial Results Overview FY2024 (Consolidated) Summary by Business Segment Construction of Information and Construction for Environmental Energy Communication Systems ⚫ Orders significantly increased due in part to a ⚫ Orders increased due in part to large-scale successful bid for a large-scale
Slide 12: Financial Results for Construction of Electrified Railway Equipment Segment
Financial Results for 2 Construction of Electrified Railway Equipment Segment (Unit: million yen) Orders Compared to FY2023: +¥4.2 bn Net sales Compared to FY2023: +¥9.5 bn Compared to Forecast: +¥8.6 bn Compared to Forecast: +¥5.9 bn 150,000 150,000 115,832 120,114 117,160 111,510 107,643 111,180 1
Slide 13: Electrified Railway Segment: Orders and Net Sales (Disaggregated)
Financial Results for 2 Construction of Electrified Railway Equipment Segment Orders and Net Sales (Disaggregated) (Unit: billion yen) FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 JR Public railway Orders 54.8 53.9 69.9 69.7 Orders 11.1 7.6 4.4 2.5 companies JRTT Net sales 57.3 54.4 58.7
Slide 14: Financial Results for Electrical Facilities for Buildings Segment
Financial Results for 2 Construction of Electrical Facilities for Buildings Segment (Unit: million yen) Orders Compared to FY2023: -¥0.4 bn Net sales Compared to FY2023: +¥12.5 bn Compared to Forecast: +¥8.9 bn Compared to Forecast: +¥4.5 bn 80,000 80,000 57,797 59,247 58,808 60,092 55,540 47,222 49
Slide 15: Financial Results for Information and Communication Systems Segment
Financial Results for Construction of 2 Information and Communication Systems Segment (Unit: million yen) Orders Compared to FY2023: +¥7.1 bn Net sales Compared to FY2023: +¥1.0 bn Compared to Forecast: +¥5.6 bn Compared to Forecast: -¥0.2 bn 40,000 40,000 33,885 28,280 27,945 27,057 28,400 28,156 2
Slide 16: Financial Results for Environmental Energy Segment
Financial Results for 2 Construction for Environmental Energy Segment (Unit: million yen) Orders Compared to FY2023: +¥3.7 bn Net sales Compared to FY2023: +¥0.3 bn Compared to Forecast: +¥2.5 bn Compared to Forecast: +¥1.5 bn 8,000 8,000 6,771 5,378 5,006 4,270 3,850 4,000 4,000 2,983 0 0 FY2023 Re
Slide 17: Financial Results for Associated Business Segment
2 Financial Results for Associated Business Segment (Unit: million yen) Orders Compared to FY2023: +¥0.8 bn Net sales Compared to FY2023: -¥0.6 bn Compared to Forecast: ¥0.9 bn Compared to Forecast: -¥0.0 bn 8,000 8,000 6,740 6,190 6,134 4,137 4,000 3,274 3,170 4,000 3,261 2,841 1,779 1,336 0 0 FY20
Slide 18: Major Railway-Related Construction Projects
2 Major Railway-Related Construction Projects FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 Name of the construction Haneda Airport Access Lines (East Yamanote Route and New Access Lines) Works to relocate obstructions Scheduled to start operation in FY2031 (JR East) Wireless Train Control System (Advan
Slide 19: Major Orders Received (Second Half of FY2024)
2 Major Orders Received (Second Half of FY2024) Name of the construction FY2024 FY2025 FY2026 New Panelboard Installation and Other Works outside Shin Sendai Scheduled for JR East completion in FY2029 Substation Hebikubo and Meguro River Interlocking Device Replacement and Scheduled for JR East Sign
Slide 20: Major Orders Received (Second Half of FY2024)
2 Major Orders Received (Second Half of FY2024) Freight Line Switching and Railway Track Upgrades for Muraoka New Station between Ofuna and Fujisawa on Tokaido Line Photo provided by East Japan Railway Company (Tentative Name) Sannomiya New Station Building Development Project Photo provided by West
Slide 22: Financial Results Forecast FY2025 (Consolidated)
3 Financial Results Forecast FY2025 (Consolidated) Key Points in the Financial Results Forecast ⚫ Net sales are expected to greatly exceed the record high set in FY2024 against a backdrop of record-high backlog at the beginning of the period and orders. ⚫ Profit attributable to owners of parent is a
Slide 23: Financial Results Forecast FY2025 (Consolidated)
3 Financial Results Forecast FY2025 (Consolidated) (Unit: million yen) Backlog Compared to FY2024: +¥9.3 bn Orders Compared to FY2024: +¥2.4 bn 300,000 300,000 223,718 226,170 234,100 208,036 200,000 173,719 183,075 182,069 200,000 156,811 100,000 100,000 0 0 FY2023 FY2024 FY2025 FY2026 Plan FY2023
Slide 24: Forecast for Electrified Railway Equipment Segment
Financial Results Forecast for 3 Construction of Electrified Railway Equipment Segment (Unit: million yen) Backlog Compared to FY2024: +¥2.9 bn Orders Compared to FY2024: -¥0.3 bn 150,000 150,000 120,114 119,730 123,600 115,832 100,000 85,714 83,784 100,000 82,760 75,638 50,000 50,000 0 0 FY2023 FY2
Slide 25: Forecast for Electrical Facilities for Buildings Segment
Financial Results Forecast for 3 Construction of Electrical Facilities for Buildings Segment (Unit: million yen) Backlog Compared to FY2024: -¥1.2 bn Orders Compared to FY2024: +¥9.9 bn 80,000 72,854 80,000 69,818 68,534 68,730 68,800 63,467 59,247 58,808 40,000 40,000 0 0 FY2023 FY2024 FY2025 FY202
Slide 26: Forecast for Information and Communication Systems Segment
Financial Results Forecast for Construction of Information 3 and Communication Systems Segment (Unit: million yen) Backlog Compared to FY2024: +¥5.7 bn Orders Compared to FY2024: -¥3.1 bn 40,000 40,000 33,885 30,710 31,600 26,697 22,396 19,806 20,000 17,263 16,666 20,000 0 0 FY2023 FY2024 FY2025 FY2
Slide 27: Forecast for Environmental Energy Segment
Financial Results Forecast for 3 Construction for Environmental Energy Segment (Unit: million yen) Backlog Compared to FY2024: +¥1.3 bn Orders Compared to FY2024: -¥3.6 bn 8,000 8,000 6,771 6,000 4,539 4,000 3,146 4,000 2,983 3,160 3,059 0 0 FY2024 FY2025 FY2026 Plan FY2023 FY2024 FY2025 Forecast FY
Slide 28: Forecast for Associated Business Segment
3 Financial Results Forecast for Associated Business Segment (Unit: million yen) Backlog Compared to FY2024: +¥0.5 bn Orders Compared to FY2024: -¥0.2 bn 8,000 3,000 2,566 2,000 1,890 4,137 3,840 4,100 1,327 4,000 3,274 1,000 443 0 0 FY2023 FY2024 FY2025 FY2026 Plan FY2023 FY2024 FY2025 Forecast FY2
Slide 29: Revision of Three-year Management Plan 2024 and Future Efforts
Revision of NIPPON DENSETSU Three-year 4 Management Plan 2024 and Future Efforts Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 28
Slide 30: Direction toward Sustainable Growth
4 Direction toward Sustainable Growth Major Strengthening New railway station-front Infrastructure track projects redevelopment Railways Increase in Increase in demand for data demand centers and related to the semiconductors environment I&C Increase systems Buildings Securing and in developing corp
Slide 31: NDK Vision90
4 NDK Vision90 Vision for FY2031 (the 90th Term) With pride and responsibility as a leading company in the field of construction of electrified railway equipment, we aim to become a comprehensive infrastructure facilities construction company NDK Vision90 by expanding our business in construction se
Slide 32: Process of Growth toward the NDK Vision90
4 Process of Growth toward the NDK Vision90 Expected to achieve one year ahead of schedule (plan revised) NDK Vision90 Medium-term management plan that will FY2031 (90th term) provide a toehold for NDK Vision90 NIPPON DENSETSU FY2031 Three-year Management Plan 2024 Net sales ¥260.0 bn FY2024–2026 (8
Slide 33: Business Strategies: Electrified Railway Equipment
4 Business Strategies Strengthen the revenue base Increase orders from JR East and other JR companies Expand Strengthen relationships with regular customers in the public and private railway sector, start business the business domain with new customers and in new industries Assessment of the current
Slide 34: Business Strategies: Information and Communication Systems
4 Business Strategies Strengthen the revenue base Increase orders for network and mobile construction * Infrastructure sharing business ・ Infrastructure sharing (network sharing by mobile Expand Increase revenue from infrastructure sharing business and telecommunications carriers) the business ・ Opt
Slide 35: Business Strategies: Associated Business
4 Business Strategies Expand Reduce environmental impact and contribute to local communities the business domain Develop new businesses and strengthen the real estate business Assessment of the current status Future efforts FY2024 Results (Billion yen) Operating ・ Completion of rental apartments, Lo
Slide 36: Strategies to Solidify the Management Foundation: Human Resources
4 Strategies to Solidify the Management Foundation Secure Human Resources Targets for FY2031: Increase the number of construction workers by 20% compared to FY2023 Number of construction workers (*) * Construction workers refer to those directly involved in supervising construction works on-site FY2
Slide 37: Strategies to Solidify the Management Foundation: Construction Systems
4 Strategies to Solidify the Management Foundation Strengthen Construction Systems Increase productivity through the increased efficiency of on-site operations Assessment of the current status Future efforts ⚫ Strengthen the systems to support construction sites by the back office ・ Well-established
Slide 38: Investment for Growth
4 Investment for Growth FY2024–FY2031 ・ Secure human resources through attractive performance-based Planned investment remuneration for growth Human resources ・ Strengthen human resource development by various measures, including renewing and adding practical training facilities ・ Improve the workpl
Slide 39: NIPPON DENSETSU Three-year Management Plans
4 NIPPON DENSETSU Three-year Management Plans Expand net sales and secure operating profit To grow sustainably Net sales Three-year management Three-year management Three-year management Three-year management Three-year management Three-year management Operating (billion yen) plan 2009 plan 2012 pla
Slide 40: Implementing Management Conscious of Cost of Capital and Stock Price
Implementing Management That is Conscious of 5 Cost of Capital and Stock Price Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 39
Slide 41: Efforts toward enhancing capital efficiency
Implementing Management That Is Conscious of Cost of 5 Capital and Stock Price Efforts toward enhancing capital efficiency ■ ROE has exceeded the estimated capital cost, reaching the pre-COVID levels, driven by improvements in profitability and efficiency along with revenue expansion and increased p
Slide 42: Toward Further Enhancing Capital Efficiency: Dividend policy
Implementing Management That Is Conscious of Cost of 5 Capital and Stock Price Toward Further Enhancing Capital Efficiency Dividend policy ⚫ We have introduced a dividend payout ratio as a new metric to clarify our commitment to returning profit (aiming for 40%). ⚫ We expect the total amount of divi
Slide 43: Reduce strategically-held shares
Implementing Management That Is Conscious of Cost of 5 Capital and Stock Price Toward Further Enhancing Capital Efficiency Reduce strategically-held shares Strategically-held shares ⚫ Accelerate reduction of strategically-held shares and 32 stocks strengthen balance sheet streamlining ✓ 70% reductio
Slide 44: Forecast Notice and Inquiries
Please note that the forecast figures presented in this document were prepared based on the information available to the Company at the time they were prepared, and actual results may differ from the forecasts in the document due to fluctuation of the levels of various risks and uncertainties and ch

Nippon Densetsu Kogyo — FY2024 Earnings Presentation on 6ix

Nippon Densetsu Kogyo — FY2024 Earnings Presentation

Slide 1: Briefing on the Financial Results for FY2024

Slide 2: Table of Contents

Slide 3: Company Overview

Slide 4: Company Overview

Slide 5: Financial Results Overview of FY2024 (Consolidated)

Slide 6: Financial Results Overview FY2024: Summary of Financial Results

Slide 7: Financial Results Overview FY2024 (Consolidated)

Slide 8: Financial Results Overview FY2024 (Consolidated)

Slide 9: Factors for Changes in Operating Profit (Year on year)

Slide 10: Summary by Business Segment

Slide 11: Summary by Business Segment

Slide 12: Financial Results for Construction of Electrified Railway Equipment Segment

Slide 13: Electrified Railway Segment: Orders and Net Sales (Disaggregated)

Slide 14: Financial Results for Electrical Facilities for Buildings Segment

Slide 15: Financial Results for Information and Communication Systems Segment

Slide 16: Financial Results for Environmental Energy Segment

Slide 17: Financial Results for Associated Business Segment

Slide 18: Major Railway-Related Construction Projects

Slide 19: Major Orders Received (Second Half of FY2024)

Slide 20: Major Orders Received (Second Half of FY2024)

Slide 21: Financial Results Forecast FY2025 (Consolidated)

Slide 22: Financial Results Forecast FY2025 (Consolidated)

Slide 23: Financial Results Forecast FY2025 (Consolidated)

Slide 24: Forecast for Electrified Railway Equipment Segment

Slide 25: Forecast for Electrical Facilities for Buildings Segment

Slide 26: Forecast for Information and Communication Systems Segment

Slide 27: Forecast for Environmental Energy Segment

Slide 28: Forecast for Associated Business Segment

Slide 29: Revision of Three-year Management Plan 2024 and Future Efforts

Slide 30: Direction toward Sustainable Growth

Slide 31: NDK Vision90

Slide 32: Process of Growth toward the NDK Vision90

Slide 33: Business Strategies: Electrified Railway Equipment

Slide 34: Business Strategies: Information and Communication Systems

Slide 35: Business Strategies: Associated Business

Slide 36: Strategies to Solidify the Management Foundation: Human Resources

Slide 37: Strategies to Solidify the Management Foundation: Construction Systems

Slide 38: Investment for Growth

Slide 39: NIPPON DENSETSU Three-year Management Plans

Slide 40: Implementing Management Conscious of Cost of Capital and Stock Price

Slide 41: Efforts toward enhancing capital efficiency

Slide 42: Toward Further Enhancing Capital Efficiency: Dividend policy

Slide 43: Reduce strategically-held shares

Slide 44: Forecast Notice and Inquiries