Kajima Corporation · TSE:1812

Kajima — FY2019 Earnings Presentation

30 slides from Kajima's earnings presentation, May 14, 2020

  1. Slide 1: FY2019 Financial Results

    FY2019 Financial Results May 14, 2020

  2. Slide 2: FY2019 Results / FY2020 Financial Forecast

    Ⅰ FY2019 Results 01 Ⅱ FY2020 Financial Forecast 15 Copyright Ⓒ 2020 KAJIMA CORPORATION All Rights Reserved.

  3. Slide 3: FY2019 Results

    Ⅰ FY2019 Results (April 1, 2019 - March 31, 2020) 1. Business Environment 2. Financial Highlights 3. Segment Performance 4. Financial Positions 5. Investment Plan Copyright Ⓒ 2020 KAJIMA CORPORATION All Rights Reserved.

  4. Slide 4: 1. Business Environment

    Ⅰ FY2019 Results 1. Business Environment Domestic market trends  Stable demand in civil engineering, mainly expressway and renewable energy sectors  Redevelopment projects mainly in Tokyo metropolitan area and capital investment in the manufacturing industry supported demand in building constructi

  5. Slide 5: 2. Financial Highlights

    Ⅰ FY2019 Results 2. Financial Highlights Over ¥100.0 billion in net income for the fourth year in a row FY18 FY19 FY19 Billions of yen YoY Change Result Result Forecast *1 Revenues 1,974.2 2,010.7 36.4 2,000.0 Operating Income 142.6 131.9 (10.6) 121.0 Ordinary Income 162.9 146.6 (16.2) 130.0 Net Inc

  6. Slide 6: 2. Revenues

    Ⅰ FY2019 Results 2. Revenues FY18 FY19 Change Billions of yen YoY Change Result Result from Forecast Revenues 1,974.2 2,010.7 ＋36.4 ＋10.7 YoY Change Factors  Building Construction +29.4 (Kajima Corp)  Civil Engineering (12.9) (Kajima Corp)  Overseas Subsidiaries and +13.0 Affiliates Copyright Ⓒ 2

  7. Slide 7: 2. Operating Income

    Ⅰ FY2019 Results 2. Operating Income FY18 FY19 Change Billions of yen YoY Change Result Result from Forecast Operating 142.6 131.9 (10.6) ＋10.9 Income YoY Change Factors  Gross Profit (9.8) (Construction)  Increase in (7.5) SG&A Copyright Ⓒ 2020 KAJIMA CORPORATION All Rights Reserved. 5

  8. Slide 8: 2. Ordinary Income

    Ⅰ FY2019 Results 2. Ordinary Income FY18 FY19 Change Billions of yen YoY Change Result Result from Forecast Ordinary 162.9 146.6 (16.2) ＋16.6 Income YoY Change Factors  Operating (10.6) Income  Non-operating Income – net (5.6) Equity in Earnings of (1.8) Partnership Equity in Earnings of Unconsoli

  9. Slide 9: 2. Net Income Attributable to Owners of the Parent

    Ⅰ FY2019 Results 2. Net Income Attributable to Owners of the Parent FY18 FY19 Change Billions of yen YoY Change Result Result from Forecast Net Income 109.8 103.2 (6.5) ＋8.2 * Net Income Attributable to Owners of the Parent YoY Change Factors  Ordinary (16.2) Income  Extraordinary Income - net +8.

  10. Slide 10: 3. Civil Engineering (Kajima Corp)

    Ⅰ FY2019 Results 3. Civil Engineering (Kajima Corp) Contracts  Increase due to contract awards for several large-scale projects Revenues  Equivalent level to FY18 Gross Profit  Lower than forecast due to decline in progress of some projects ■ Contracts Awards ■Revenues ■ Gross Profit Copyright Ⓒ

  11. Slide 11: 3. Building Construction (Kajima Corp)

    Ⅰ FY2019 Results 3. Building Construction (Kajima Corp) Contracts  Decline due to delays in final contracts for secured projects and highly probable projects Revenues  Steady progress in large-scale backlog projects Gross Profit  Improvement in margin due to acquisition of change orders and effec

  12. Slide 12: 3. Real Estate and Other (Kajima Corp)

    Ⅰ FY2019 Results 3. Real Estate and Other (Kajima Corp) Contracts  Relatively in high level Disposition of several properties in addition to acquiring a specific large-scale income- Revenues  producing property and increasing rents Gross Profit  Improvement in margin in addition to increased reve

  13. Slide 13: 3. Domestic Subsidiaries and Affiliates

    Ⅰ FY2019 Results 3. Domestic Subsidiaries and Affiliates Contracts  Equivalent level to FY18 Revenues  Equivalent level to FY18  Increase in operating income, mainly due to higher gross profit in construction business Net Income  Improvement in extraordinary income (net) caused by ¥2.9 billion r

  14. Slide 14: 3. Overseas Subsidiaries and Affiliates

    Ⅰ FY2019 Results 3. Overseas Subsidiaries and Affiliates Contracts  Equivalent level to FY18 Revenues  Increase mainly due to increase in the U.S.(KUSA)  Decline due to decrease in gross profit in construction business Net Income  Higher than forecast due to favorable disposition of off-balance

  15. Slide 15: 4. Financial Positions

    Ⅰ FY2019 Results 4. Financial Positions Steady progress in increase of owners’ equity toward ¥800 billion target FY18 FY19 FY19 Billions of yen YoY Change Result Result Forecast *1 Total Assets 2,091.1 2,172.1 80.9 ― Interest-bearing 298.7 326.8 28.1 330.0 Debt Owners' Equity 753.2 791.7 38.5 ― Owne

  16. Slide 16: 5. Investment Plan

    Ⅰ FY2019 Results 5. Investment Plan  Medium-Term Business Plan: Investment of ¥500 billion over 3 years • Proactive investment in the real estate business in Japan and overseas as well as R&D from a medium- to long-term perspective (¥ billion) FY18 FY19 3-year Plan Result Result (FY18-FY20) ■Domest

  17. Slide 17: FY2020 Forecast

    Ⅱ FY2020 Forecast (April 1, 2020 - March 31, 2021) 1. Business Performance Outlook 2. Financial Highlights 3. Segment Performance 4. Shareholder Returns Copyright Ⓒ 2020 KAJIMA CORPORATION All Rights Reserved.

  18. Slide 18: 1. Impact of COVID-19 and Business Performance Outlook

    Ⅱ FY2020 Financial Forecast 1. Business Environment Impact of COVID-19 and Business Performance Outlook  Uncertainty has increased, and the Company monitors the impact on order acquisitions  In the construction business (Kajima Corp.), a decline in revenue and associated fall in profit is expected

  19. Slide 19: 2. Financial Highlights

    Ⅱ FY2020 Financial Forecast 2. Financial Highlights Net income projection equal to target in Medium-Term Business Plan FY19 FY20 Billions of yen YoY Change Result Forecast Revenues 2,010.7 1,870.0 (140.7) Operating Income 131.9 111.0 (20.9) Ordinary Income 146.6 118.0 (28.6) Net Income *1 103.2 80.0

  20. Slide 20: 2. Revenues

    Ⅱ FY2020 Financial Forecast 2. Revenues FY19 FY20 Billions of yen YoY Change Result Forecast Revenues 2,010.7 1,870.0 (140.7) YoY Change Factors  Building Construction (137.5) (Kajima Corp)  Domestic Subsidiaries and (42.8) Affiliates  Overseas Subsidiaries and +20.6 Affiliates Copyright Ⓒ 2020 K

  21. Slide 21: 2. Operating Income

    Ⅱ FY2020 Financial Forecast 2. Operating Income FY19 FY20 Billions of yen YoY Change Result Forecast Operating 131.9 111.0 (20.9) Income YoY Change Factors  Gross Profit (22.5) (Construction)  Gross Profit (Real Estate and +2.4 other)  Increase in (0.8) SG&A Copyright Ⓒ 2020 KAJIMA CORPORATION Al

  22. Slide 22: 2. Ordinary Income

    Ⅱ FY2020 Financial Forecast 2. Ordinary Income FY19 FY20 Billions of yen YoY Change Result Forecast Ordinary 146.6 118.0 (28.6) Income YoY Change Factors  Operating (20.9) Income  Non-operating Income – net (7.6) Financing (3.0) Equity in Earnings of (2.7) Partnership Copyright Ⓒ 2020 KAJIMA CORPO

  23. Slide 23: 2. Net Income Attributable to Owners of the Parent

    Ⅱ FY2020 Financial Forecast 2. Net Income Attributable to Owners of the Parent FY19 FY20 Billions of yen YoY Change Result Forecast Net Income 103.2 80.0 (23.2) * Net Income Attributable to Owners of the Parent YoY Change Factors  Ordinary (28.6) Income  Extraordinary Income - net (2.9)  Decrease

  24. Slide 24: 3. Civil Engineering (Kajima Corp)

    Ⅱ FY2020 Financial Forecast 3. Civil Engineering (Kajima Corp) Contracts  Expect to maintain over ¥300 billion level Revenues  Equivalent level to FY19 Expect gross profit margin to recover to 15% level due to improvement of productivity  Gross Profit and cost reductions ■Contract Awards ■Revenue

  25. Slide 25: 3. Building Construction (Kajima Corp)

    Ⅱ FY2020 Financial Forecast 3. Building Construction (Kajima Corp) Contracts  Expect increase based on secured projects and highly probable projects , but will monitor impact of COVID-19 Revenues  Expect decline due to impact of COVID-19 in addition to the fact that the Company has relatively fewe

  26. Slide 26: 3. Real Estate and Other (Kajima Corp)

    Ⅱ FY2020 Financial Forecast 3. Real Estate and Other (Kajima Corp) Contracts  Expect decrease from high level of FY2019 Revenues  Expect increase due to sale of projects for which contracts have been concluded Gross Profit  Expect increase due to growth in project sales ■ Contract Awards ■Revenue

  27. Slide 27: 3. Domestic Subsidiaries and Affiliates

    Ⅱ FY2020 Financial Forecast 3. Domestic Subsidiaries and Affiliates Contracts  Expect slight decrease due to impact of COVID-19 Expect decrease due to decline in contracts and lower occupancy rates of facilities Revenues  operated  Expect decrease in construction business and decrease in faciliti

  28. Slide 28: 3. Overseas Subsidiaries and Affiliates

    Ⅱ FY2020 Financial Forecast 3. Overseas Subsidiaries and Affiliates Contracts  Expect decrease, given postponement of construction projects due to impact of COVID-19 Although there will be impact of COVID-19, expect increase due to ample construction Revenues  backlog projects in progress and sale

  29. Slide 29: 4. Shareholder Returns

    Ⅱ FY2020 Financial Forecast 4. Shareholder Returns Maintain ¥50 per share annual dividend FY18 FY19 FY19 FY20 Billions of yen Result *1 Result Forecast *2 Forecast Dividend per Share 50.00 50.00 50.00 50.00 Earnings per Share 211.67 200.99 184.94 156.07 (EPS) Payout Ratio 23.6% 24.9% 27.0% 32.0% *1

  30. Slide 30: Inquiries and Disclaimer

    Inquiries: Corporate Communication Group, Corporate Planning Department E-Mail ： ir@ml.kajima.com Disclaimer: All financial information has been prepared in accordance with generally accepted accounting principles in Japan. While every attempt has been made to ensure the accuracy of information, for

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