Slide 1: FY03/2023 Financial Results Briefing
FY03/2023 Financial Results Briefing May 18, 2023
Slide 2: Overview of FY03/2023 Financial Results
Overview of FY03/2023 Financial Results FY03/2023 Financial Results Briefing
Slide 3: FY03/2023 Financial Highlights
FY03/2023 Financial Highlights Net sales increased due to the progress of large-scale construction projects, etc., ordered in past fiscal years. Profits increased as factors causing the deterioration of profit/loss resulting from quality problems of FY03/2022 were resolved. Orders Operating Profit (
Slide 4: Consolidated Financial Results
Consolidated Financial Results In addition to the steady progress of net sales, net income improved significantly due to the disappearance of factors causing the deterioration of profit/loss resulting from quality problems. Dividends increased by 11 yen to 36 yen. FY03/22 Ratio FY03/23 Ratio YoY （Mi
Slide 5: Factors Affecting Net Income
Factors Affecting Net Income Net income increased due to completed construction gross profit, increased gross profit from real estate business, gains on sales of investment securities, etc. （Millions of yen） ＋12,704 Increase in gain on sale of investment securities FY03/2022 ー327 ー7,459 +7,825 +4,33
Slide 6: Non-consolidated Financial Results
Non-consolidated Financial Results Completed construction sales increased due to the steady progress of projects. Completed construction gross profit increased as factors that caused the deterioration of profit/loss in the previous fiscal year in civil engineering business were resolved. Gross profi
Slide 7: Non-Consolidated / Building construction (Completed construction sales, gross profit)
Non-Consolidated ／ Building construction（Completed construction sales・Completed construction gross profit） Completed construction sales increased due to the steady progress of projects, including large-scale construction. Gross profit was impacted by price increases, but increased because completed
Slide 8: Non-Consolidated / Building construction (Orders)
Non-Consolidated ／ Building construction（Orders） Although we accumulated orders, mainly for large projects, orders decreased due to the lag of some projects, etc. Orders Main orders （Millions of yen） Place of Overseas △17.1% Ordered by Name of construction construction Urban Redevelopment Facility a
Slide 9: Non-Consolidated / Civil engineering (Completed construction sales, gross profit)
Non-Consolidated ／ Civil engineering（Completed construction sales・Completed construction gross profit） Completed construction sales increased due to projects progressing steadily, centered on government construction. In addition to the increase in completed construction sales, gross profit improved
Slide 10: Non-Consolidated / Civil engineering (Orders)
Non-Consolidated ／ Civil engineering（Orders） Orders increased significantly due to the acquisition of overseas ODA projects (such as subway construction in the Philippines) using our track record and know-how in railway construction. and orders for domestic tunnel construction. Orders Main orders （M
Slide 11: Consolidated Balance Sheets
Consolidated Balance Sheets The equity ratio was at 38.2%, a drop of 0.7 percentage points compared with March 31, 2022. D/E ratio was at 0.23 times, almost flat year on year. Increase/decrease factors As of March As of March YoY （Millions of yen） 31, 2022 31, 2023 − Current assets Current assets 17
Slide 12: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Free cash flow is ¥22.7 billion as cash flows from operating activities increased due to a decrease in trade payables, etc. Year ended Year ended March 31, 2022 March 31, 2023 FY03/2023 remarks （Millions of yen） Cash flows from operating Cash increased due to a
Slide 13: Full-year Forecast for FY03/2024
Full-year Forecast for FY03/2024 FY03/2023 Financial Results Briefing
Slide 14: Consolidated Financial Results Forecast
Consolidated Financial Results Forecast Orders and net sales will progress steadily. Although selling, general and administrative expenses will increase due to growth investments, etc., operating income is expected to increase by 3.8%. We anticipate a dividend of 36 yen. FY03/2024 FY03/2023 Ratio Ra
Slide 15: Non-consolidated Financial Results Forecast
Non-consolidated Financial Results Forecast Completed construction sales increased due to the steady progress of projects. Profit in civil engineering will increase as profit margins improve. Revenue and profits in real estate business will decrease because there are no plans for real estate sales t
Slide 16: Non-Consolidated Order Forecast
Non-Consolidated Order Forecast In building construction, we will aim to achieve a level of orders in excess of 200 billion yen by focusing on receiving certain orders for projects undertaken and projects where we can secure appropriate profits. In civil engineering, there will be a reactionary decr
Slide 17: Non-consolidated Forecast / Building construction
Non-consolidated Financial Results Forecast／ Building construction Completed construction sales will increase slightly with the expected progress of works carried over at the beginning of the fiscal year. The gross profit margin of completed construction will be flat partly due to rising prices. Com
Slide 18: Non-consolidated Forecast / Civil engineering
Non-consolidated Financial Results Forecast／ Civil engineering Large-scale construction carried over from past fiscal years will progress and completed construction sales will increase. In addition to the increase in completed construction sales, we expect increased profits by increasing profit marg
Slide 19: Forecast / Construction Renewal
Forecast／ Construction Renewal The number of business inquiries will tend to increase, and both net sales and orders will recover to pre-COVID-19 levels. • Desire for investment is strong, due partly to the recovery of inbound arrivals External environment and a reaction to the suppression of invest
Slide 20: Forecast / International, Real estate
Forecast／ International ・ Real estate International Real estate Revenue and profits will increase on the back of progress in We will work on the acquisition of new income-yielding construction on large-scale projects ordered in the previous properties using the profits from sales in the previous fis
Slide 21: Shareholder returns
Shareholder returns We plan to pay an annual dividend of 36 yen per share. While recognizing the importance of capital efficiency, we will continue our basic policy of paying dividends with a dividend on equity ratio (DOE) of at least 4.0%, emphasizing stable and continuous profit returns to shareho
Slide 22: Progress of Long-Term Management Plan
Progress of Long-Term Management Plan FY03/2023 Financial Results Briefing
Slide 23: Material issues
Material issues The starting point of the long-term management plan is the material issues identified from two axes: importance to stakeholders; and the impact on the Company’s corporate value. We will pursue both the resolution of social issues and sustainable growth. In association with the govern
Slide 24: Long-Term Management Plan "To zero, from zero."
Long-Term Management Plan “To zero, from zero.” Based on changes in the business environment, we will further promote the strengthening of problem- solving skills, namely the overhaul of QCDSE and sales capabilities, and the restructuring of our earning power, and aim to return to a growth trajector
Slide 25: TOPICS Decarbonization
TOPICS Decarbonization By responding through business to climate change, which is listed in the material issues, we will aim to contribute to the resolution of global issues and acquire business growth and profits. Examples General release of approximate Significant reduction of CO2 Calculation of a
Slide 26: TOPICS Digital technology
TOPICS Digital technology We will realize the transformation of our construction and production systems, and the creation of new value provision opportunities through the strengthening of digital technology, the source of competitive advantage in the long-term management plan. To p i c s Acquisition
Slide 27: TOPICS Initiatives for open innovation
TOPICS Initiatives for open innovation We are investing positively in domestic and overseas venture companies that contribute to the expansion of the provision of three values and the source of competitive advantage, which are established in the long-term management plan. We pursue growth opportunit
Slide 28: TOPICS Real estate business
TOPICS Real estate business We are targeting a customer base that is highly sensitive to and interested in the environmental area, centered on medium and small-sized properties in the five central wards of Tokyo and along the Tokyu Line, where we have our strengths. We are expanding real estate busi
Slide 29: TOPICS Strengthening international business
TOPICS Strengthening international business Using the strengths we have cultivated in domestic railway construction and community development along the Tokyu Line, we will work on railway and transportation infrastructure and TOD (Transit Oriented Development) through ODA, centered on Southeast and
Slide 30: Strengths and Business model
Strengths and Business model FY03/2023 Financial Results Briefing
Slide 31: Business model and business overview
Business model and business overview We take on construction work en masse from government agencies and private companies, and manage construction work efficiently in cooperation with numerous suppliers. We realize the maximization of added value by implementing integrated construction management of
Slide 32: Efforts to Prevent Recurrence of Quality Problems
Efforts to Prevent Recurrence of Quality Problems, Improve Construction Quality, and Restore Trust In response to quality problems, we investigated the causes and prevented any reoccurrence thoroughly. Recognizing that systemic and cultural issues existed in the foundations of these problems, the Co
Slide 33: Strengths of Tokyu Construction Group
Strengths of Tokyu Construction Group Since its founding, the Company has accumulated know-how and human resource capabilities by continuing to take on the challenge of community development conscious of consumers. By deepening and fusing these using digital technology, we have established unique “t
Slide 34: Notes
[Inquiries] Nishida/Morita Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp Notes Forward-looking statements such as forecasts of the company’s results contained in this document are based on information available as of the date of publi