Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — FY2019 Earnings Presentation
30 slides from Tokyu Construction's earnings presentation, May 17, 2019
Slide 1: FY03/19 Financial Results Briefing
FY03/19 Financial Results Briefing May 17, 2019
Slide 2: Contents
Contents FY03/19 Financial Results Briefing 1．Overview of FY03/19 Financial Results 2．Full-Year Outlook for FY03/20 3．Toward Our Ideal Vision of Ourselves This briefing material includes our earnings forecasts and projections. Please note that these reflect forecasts and estimates based on informati
Slide 3: Overview of FY03/19 financial results
Financial Results Briefing 1. Overview of FY03/19 financial results Consolidated net sales exceeded the year-earlier level, reaching a record high Operating income and ordinary income also reached record highs supported by an increase in completed construction gross profit and other factors Or
Slide 4: Business Environment
１ Business Environment Business environment in FY03/19 1．The Japanese economy remained on a gradual recovery path supported by improvements in corporate earnings and the employment and income environment despite some weakness in exports and production. 2．The construction market was strong thanks to
Slide 5: FY03/19 Full-Year Results (Consolidated)
１ FY03/19 Full-Year Results (Consolidated) Consolidated net sales exceeded the year-earlier level, reaching a record high. Regarding profit and loss, profit attributable to owners of parent fell below the year-earlier level due to increases in tax expenses and other costs, but operating income and o
Slide 6: Factors Affecting Net Income (Consolidated)
FY03/19 １ Factors Affecting Net Income (Consolidated) Although completed construction gross profit grew, SG&A expenses declined, and equity- method income increased, profit attributable to owners of parent fell below the year-earlier level on an increase in tax expenses Increase in (Millions of yen)
Slide 7: FY03/19 Full-Year Results (Non-Consolidated)
FY03/19 １ FY03/19 Full-Year Results (Non-Consolidated) Net sales declined 0.8% year on year, and net income declined 9.8% due to a drop in gross profit. The year-on-year decline in net sales reflected a consolidation of building renovation business in the metropolitan area into a subsidiary. (Millio
Slide 8: Net Sales (Non-Consolidated)
FY03/19 １ Net Sales (Non-Consolidated) Completed construction sales fell year on year due to consolidation of the building renovation business in the Tokyo metropolitan area into a subsidiary, amid continuing robust demand for large-scale construction. (Millions of yen) Net sales ¥309.9 billion (-0.
Slide 9: Gross Profit (Non-Consolidated)
FY03/19 １ Gross Profit (Non-Consolidated) Gross profit surpassed the original forecast of ¥32.4 billion. The profit margin of civil engineering sharply exceeded historical levels, increasing 4.4pp driven by an unexpectedly high number of design change and addition projects in Japan and improved marg
Slide 10: Financial Position and Cash Flow (Consolidated)
FY03/19 １Financial Position and Cash Flow (Consolidated) Net assets increased ¥13.8 billion to ¥92.9 billion on an increase in retained earnings, and the equity ratio rose to 35.0%. Cash flow was positive thanks to a drop in trade receivables. [Consolidated Financial Position] (Millions of yen) Marc
Slide 11: Orders (Non-Consolidated, Company-Wide)
FY03/19 １ Orders (Non-Consolidated, Company-Wide) Orders exceeded the initial forecast of ¥240.0 billion (which was based on construction capacity) by ¥23.0 billion. Despite an increase in overseas orders driven by large-scale ODA projects, the Tokyu Group posted 9.7% year-on-year drop in orders, re
Slide 12: Orders (Non-Consolidated, Civil Engineering)
FY03/19 １ Orders (Non-Consolidated, Civil Engineering) Orders rose modestly year on year to ¥77.7 billion. Overseas orders grew on large-scale ODA projects in Myanmar. 76,784 77,766 (Millions of yen) 22,988 Difference 5,315 compared Rate of 65,711 FY03/19 to previous change year 14,480 10,470 Domest
Slide 13: Orders (Non-Consolidated, Building Construction)
FY03/19 １ Orders (Non-Consolidated, Building Construction) The order volume was deliberately held down by considering construction capacity. The Tokyu Group posted a drop in orders reflecting the comparison with the high level of large- scale projects recorded in the previous fiscal year. In the dom
Slide 14: Shibuya Redevelopment Project Initiatives
FY03/19 １ Shibuya Redevelopment Project Initiatives Construction activity for the large-scale redevelopment of Shibuya Station area is approaching its peak. Going forward, Tokyu Construction will gear up to handle the increase in office demand for IT companies in the broader Shibuya region centered
Slide 15: KPIs in Mid-Term Management Plan
FY03/19 １KPIs in Mid-Term Management Plan Tokyu Construction is making steady progress to achieve its mid-term management plan 2018–2020 “Shinka 2020,” and toward its ideal vision for the future. The Company introduced “employee engagement” index as a new indicator from FY2018. KPI FY2017 FY2018 act
Slide 16: Full-Year Outlook for FY03/20
Financial Results Briefing 2. Full-Year Outlook for FY03/20 Consolidated net sales expected to decline 5.0% year on year to ¥315.0 billion Profit expected to fall sharply below the year-earlier level due to one-time factors Forecast dividend of ¥30, unchanged from the year-earlier level as med
Slide 17: Full-Year Outlook for FY03/20 (Consolidated)
２ Full-Year Outlook for FY03/20 (Consolidated) Consolidated net sales expected to decline 5.0% year on year to ¥315.0 billion [Consolidated profit/loss] Profit attributable to owners of parent expected to fall 43.9% year on year to ¥8.7 billion Net sales ¥315.0 billion (-5.0% YoY) Profit or loss
Slide 18: Factors Expected to Affect Net Income (Consolidated)
Full-Year Outlook for FY03/20 ２ Factors Expected to Affect Net Income (Consolidated) Profit attributable to owners of parent expected to fall sharply below the year-earlier level due to a temporary yet significant drop in completed construction gross profit 持分法投 Increase in 不動産 equity-method 資損益の (M
Slide 19: Completed Construction Sales and Gross Profit (Civil Engineering)
２ Completed Construction Sales and Gross Profit Full-Year Outlook for FY03/20 (Non-Consolidated, Civil Engineering) Initial forecasts call for gross margin of 7.8%, reflecting the dropout of temporary factors (such as an unexpectedly high number of design change and addition projects) and progress w
Slide 20: Completed Construction Sales and Gross Profit (Building Construction)
２ Completed Construction Sales and Gross Profit Full-Year Outlook for FY03/20 (Non-Consolidated, Building Construction) Completed construction sales are expected to decline due to near-completion large-scale projects and controlled orders received by considering construction capacity. Gross profit i
Slide 21: Non-Consolidated Orders
Full-Year Outlook for FY03/20 ２ Non-Consolidated Orders Orders are expected to decline overseas but exceed the year-earlier level in Japan. Tokyu Construction will continue to tap demand in the robust markets for civil engineering and building construction by Orders ¥254.0 billion leveraging constru
Slide 22: Dividend Forecast for FY03/20
２ Dividend Forecast for FY03/20 Project dividend of ¥30 in FY03/20 (interim ¥10, year-end ¥20), unchanged from the previous fiscal year Earnings are expected to decline sharply in FY03/20, but Tokyu Construction regards the downturn as temporary, and believes it will not have a major impact on its m
Slide 23: Toward Our Ideal Vision of Ourselves
Financial Results Briefing 3．Toward Our Ideal Vision of Ourselves 22
Slide 24: Intensifying Labor Shortages in Construction Industry
３Intensifying Labor Shortages in Construction Industry The impact of the aging population in Japan is particularly pronounced in the construction industry, where the departure of the baby-boomer generation from the workforce is intensifying labor shortage. Growth projection for skilled construction
Slide 25: Growing Renovation Demand
３ Growing Renovation Demand The overall construction market is projected to contract modestly over the medium to long term, but growth in renovation and maintenance demand is accelerating Breakdown of infrastructure Domestic construction investment Building renovation demand more than 50-years old D
Slide 26: Growing Need for Productivity Improvements
３ Growing Need for Productivity Improvements The adoption of digital solutions and the modularization of building materials are gaining traction as a way to dramatically improve productivity in the face of labor shortages. In the next five to 10 years, investment in systems and factory-based constru
Slide 27: Strategic Direction Based on Changes in Business Environment
３Strategic Direction Based on Changes in Business Environment Growing need for productivity Intensifying labor shortage Expansion of renovation demand (qualitative changes in demand) improvements environment Business changes Promotion of alliances and Focus on shifting from one- Utilization of stren
Slide 28: Fleshing out Urban Solutions Business
３ Fleshing out Urban Solutions Business In addition to enhancing cooperation within the Tokyu Group, which is a strength for Tokyu Construction, shore up the earnings power of the Group by reinforcing necessary solutions and building a comprehensive value chain through active personnel hiring, the f
Slide 29: Inquiries
[Inquiries] Nishida/Yamaguchi Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp
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