Infroneer Holdings Inc. · TSE:5076
Infroneer — FY2023 Q2 Earnings Presentation
52 slides from Infroneer's earnings presentation, Nov 10, 2023
Slide 1: INFRONEER Holdings FY2023 2nd Quarter Financial Presentation
INFRONEER Holdings FY2023 2nd Quarter Financial Presentation Nov 10, 2023
Slide 2: FY2023 2Q Financial Presentation Contents
FY2023 2Q Financial Presentation Contents 8. Infrastructure Management : Contribution to Consolidated Profits Main Contents 9. Policy Trends：PPP/PFI Promote Action Plan（Revised 2023）has been 1. Points released by the Cabinet Office 2. Growth Strategy：Realization of an integrated infrastructure servi
Slide 3: 1. Points
1．Points ① Summary of financial FY23 2Q results（P.5-8） • As to the FY23 2Q results, net sales and gross profits increased significantly year-on-year. • We have made upward revision as to the full year plan. ② FY23 2Q Results and FY23 Plan for each segments （P.14-36） Building Construction & Civil Eng
Slide 4: 1. Points
１．Points Road Civil Engineering Segment （P.29-32） • As to the FY23 2Q results, 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 abundant carry-overed projects. • For Construction Business, we will
Slide 5: Growth Strategy: Realization of an integrated infrastructure service company
Growth Strategy：Realization of an integrated infrastructure service company 4 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 evaluation points Financial I.Growth
Slide 6: 3. Transition of Results and Forecast
3．Transition of Results and Forecast • Each segment is progressing well, and we expect to achieve our full-year plan. • 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 o
Slide 7: 4. Summary of Financial Results
4 ． Summary of Financial Results • FY23 2Q results, results showed a significant year-on-year increase in both sales and profits. This substantial growth was due to the successful completion of major projects and the acquisition of design changes. • The full-year plan for FY23 has also been revised
Slide 8: 5. Segment Net Sales and Gross Profit
5． Segment Net Sales and Gross Profit ※ （Billions of Yen） FY22 FY23 FY23【forecast】 FY23【forecast】 FY22 JGAAP IFRS※ Progres YoY YoY YoY Result differenc ③ー① differenc ⑤ー① 2QResult 2QResult s Full-Year Revised Full-Year Revised ① e e ② ③ ④ ⑤ ③ー② ⑤ー④ Net sales 313.5 353.1 39.6 47.7% 709.6 740.0 762.9 2
Slide 9: 6. Transition of Backlog, Order Intake and Profit Margin on Orders
6． Transition of Backlog, Order Intake and Profit Margin on Orders (Building Construction and Civil Engineering) • Backlog as of 2Q and planned at the end of the fiscal year is the highest ever for building construction. • The civil engineering order profit margin is expected to maintain a high leve
Slide 10: 7. Strategies & Return Policies / FY23 2Q Results and Forecast of Capital
7． Strategies & Return Policies / FY23 2Q Results and Forecast of Capital Shareholder returns • Following JPY 30 billion yen share buyback undertaken in FY21 and FY22, JPY 10 billion yen share buyback in FY23 is in progress (as announced on May 11, 2023) (Commenced on 2023 June. Further 4.8 billion
Slide 11: 8. Main Factors for Increase / Decrease in the Consolidated Balance Sheet
8．Main Factors for Increase / Decrease in the Consolidated Balance Sheet Assets Liabilities and Net assets （Billions of Yen） 978.7 （Billions of Yen） +52.1 926.6 (876.6) ※1 926.6 +52.1 978.7 (+55.2) (821.4) ※1 Liabilities +65.5 Short-term loans +9.4 payable ＋42.0 219.9 with interest Long-term loans 1
Slide 12: 9. Main Factors for Increase/Decrease in G&A
9．Main Factors for Increase/Decrease in G&A Personnel expenses • Increase in reserves due to the introduction of the J-ESOP for all group employees • Increase due to introduction of new personnel system and regular salary increases R&D costs • Increase in new development themes such as in the area o
Slide 13: 10. Capital Strategies and Share Price Performance
10．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: 11. INFRONEER Group Employee Stock Ownership Plan
Re-posting of FY23 1Q material 11．INFRONEER Group Employee Stock Ownership Plan • We will apply Employee Stock Ownership Plan (“J-ESOP”) which distributes INFRONEER Holdings’ stocks to all INFRONEER Holdings’ and the Group companies’ employees subject to certain criteria. • The purpose of this progr
Slide 15: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 14
Slide 16: 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 2Q The current sales progress rate towards the end-of-term sales plan is 45%, which is average rate for this time of the year. Profit has decreased due to delay in passing on so
Slide 17: 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 2Q We have received orders for large-scale redevelopment project, office building project, and logistics warehouse project ・FY23 FY We forecast to meet
Slide 18: 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 We expect an increase in the share of “Offices, Governmental Buildings" sector due to obtaining contracts for large -scale office building projects. We also expect “Warehouses and
Slide 19: 4. Topics – Large-scale Private Sector Projects
建築 ４. Topics – Large-scale Private Sector Projects（Redevelopment／Office Buildings Projects） Urban Redevelopment Project at Osaki Station West Exit F South District (Building & Public Facilities Construction) Tenjin Business Center (2nd Phase) Project (Tentative Name) This project is to build a next-
Slide 20: 4. Topics - Osaka Expo Projects
建築 ４.Topics - Osaka Expo Projects 2025 Osaka Kansai Expo Pavilion Numerous pavilions proposing solutions to social issues are being planned by various domestic and international organizations for the "2025 Osaka-Kansai Expo," under the theme of "Designing a Future Society for Our Lives." Amidst this
Slide 21: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 20
Slide 22: 5. Net Sales and Gross Profit (Maeda Corp Non-Consolidated Domestic)
Including real estate sector Civil Engineering 5．Net Sales and Gross Profit (Maeda Corp Non-Consolidated Domestic) • FY23 2Q It has become almost certain that the profit margin on the large construction projects on hand at the beginning of the period will improve significantly. In addition, difficul
Slide 23: 6. Orders Received and Profit Margin on Orders Received
Including real estate sector Civil Engineering 6．Orders Received and Profit Margin on Orders Received (Maeda Corp Non-Consolidated) • FY23 2Q Orders continue to be steady in both the public and private sectors following 1Q , progressing as planned. The profit margin at the time of order is also main
Slide 24: 7. Topics: Wins Bid for Long-Distance Shield Construction for Tokyo's Water and Wastewater
7． Topics 「 Wins Bid for Long-Distance Shield Construction for Tokyo's Water Civil Engineering and Wastewater Future 」 Construction of a connecting pipe between Shibaura New construction of a water pipe (inner diameter: Water Reclamation Center and Morigasaki Water 600 mm) between the sites of Nekab
Slide 25: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 24
Slide 26: 8. Contribution to Consolidated Profits
Infrastructure Management 8．Contribution to Consolidated Profits • Although the sale of the renewable energy business, which had been under consideration, was postponed to the next fiscal year or later, the sale of some development facilities is expected to result in a gain of 0.9 billion yen. • As
Slide 27: 9-1. Policy Trends: PPP/PFI Promotion Action Plan (Revised 2023)
Infrastructure Management インフラ運営 Re-posting of FY23 1Q material 9-1．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 new “Action plan”. • The Action Plan sets project size ta
Slide 28: 9-2. Water PPP
Re-posting of FY23 1Q material Infrastructure Management インフラ運営 9-2．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 29: 10. Major Infrastructure Management Projects in Japan
インフラ運営 10． Major Infrastructure Management Projects in Japan ✓ Solid track record in a variety of infrastructure services POINT ✓ Through comprehensive private contracting, we attempt to leverage the strength of private company to implement efficient comprehensive management Comprehensive private Co
Slide 30: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 29
Slide 31: 11. Net Sales and Gross Profit (MAEDA ROAD Consolidated)
Road Civil Engineering 11．Net Sales, and Gross Profit (MAEDA ROAD Consolidated) • FY23 2Q Both sales and income increased YoY due to the estimated cost of materials and abundant construction work carried over from the previous year.. • FY23 FY The full-year plan is expected to achieved by focusing o
Slide 32: 12. Orders Received, Net Sales, and Gross Profit (Construction business)
Road Civil Engineering 12．Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated Construction business) • FY23 2Q Both sales and income increased year-on-year, reflecting the estimated price for higher material costs and abundant carry-over construction work. • FY23 FY Aim to improve
Slide 33: 13. Net Sales and Gross Profit (Manufacturing and Sales Business)
Road Civil Engineering 13．Net Sales and Gross Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business) • FY23 2Q Both sales and income increased YoY due to the price pass-through implemented in the previous quarter. • FY23 FY Ensure stable profit margins by setting appropriate selling price
Slide 34: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 33
Slide 35: 14. Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)
Machinery 14．Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated) • FY23 2Q Net sales and Gross profits increased YoY due to firm sales of Industrial machinery, and revision of sales prices, etc. • FY23 FY Both Net sales and Gross profit are expected to achieve the full-year plan. 2Q Full Year
Slide 36: 15. Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)
Machinery 15．Net Sales and Gross Profit※1 MAEDA SEISAKUSHO (Consolidated) • FY23 2Q Net sales and Gross profit in the industrial machinery and steel products are increased YoY because of firm sales of industrial machinery (Spider crane). Gross profit margin also improved due to revision of sales pri
Slide 37: 16. Topics: Products for sustainable forest development and wood utilization
Machinery 16．Topics：Market introduction of attractive products for sustainable forest development and wood utilization Dedicated Forestry Forwarder Contributes to Lumber Gathering and POINT Forest Renewal Operations to achieve Carbon Neutrality Function of the Forest Issues in the Forestry Sector Fo
Slide 38: Appendix
Appendix 37
Slide 39: 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 Accounting Standards FY23 applied 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
Slide 40: Maeda Corp. FY23 2Q Results and FY23 Full-Year Forecast
Maeda Corp. [Non-Consolidated] Maeda Corp. FY23 1Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 2Q Results FY22 2Q Results FY23 Forecast FY23 Revised YoY Progress （JGAAP） （JGAAP） （JGAAP） （JGAAP） Net Sales 163.1 190.1 27.0 401.7 425.7 44.7% Total 87.3 106.8 19.5 238.5 258.3 41.3% Buldin
Slide 41: MAEDA ROAD FY23 2Q Results and FY23 Full-Year Forecast
MAEDA ROAD [Consolidated] MAEDA ROAD FY23 2Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 2Q Results FY23 2Q Results FY23 Forecast YoY Progress (JGAAP) (JGAAP) (JGAPP) Net sales 111.2 118.2 7.0 246.8 47.9% Construction Business 76.8 81.7 4.9 166.0 49.2% Manufacturing and Sales Business
Slide 42: MAEDA SEISAKUSHO FY23 2Q Results and FY23 Full-Year Forecast
MAEDA SEISAKUSHO [Consolidated] MAEDA SEISAKUSHO FY23 2Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 2Q Results FY23 2Q Results FY23 Forecast FY23 Revised YoY Progress (JGAAP) (JGAAP) (JGAPP) (JGAPP) Net sales 17.4 20.2 2.8 40.0 40.4 50.0% Construction Machinery 10.5 11.6 1.1 22.9 23.
Slide 43: INFRONEER Group's FY23 2Q Results and FY23 Full-Year Forecast
INFRONEER Group’s FY23 2Q Results and FY23 Full-Year Forecast (Millions of Yen) FBS Fujimi Koken JM Consolidated FY22 FY23 FY22 FY23 FY22 FY23 Subsidiaries FY23 FY23 FY23 FY23 FY23 FY23 2Q 2Q 2Q 2Q 2Q 2Q Forecast Revision Forecast Revision Forecast Revision Results Results Results Results Results Re
Slide 44: Integrated Report 2023
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 discusses Infroneer’s current Contents
Slide 45: Comprehensive Partnership Agreement Signed Aiming to Enhance the Value of the Town Famous for its Ceramics
Comprehensive Partnership Agreement Signed Aiming to Enhance the Value of the Town Famous for its Ceramics We have signed “Comprehensive Partnership Agreement to Improve the New National Wealth Index of Arita Town Applying ESG Analysis” Overview：Arita Town in Saga Prefecture is famous for its tradit
Slide 46: Allocation of the Segments
Re-posting of FY23 1Q material Allocation of the Segments Segment of INFRONEER Holdings（JGAAP） Building MK Building Construction Construction MK Real Estate (Building Construction) MK Civil Engineering Civil Engineering MK Real Estate (Civil Engineering) Road Civil Engineering MD (Consolidated) Mach
Slide 47: 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 48: Establishment of New Business Platform of Infrastructure Operations
Re-posting of FY22 3Q material Infrastructure Management Infrastructure Operations Establishment of New Business Platform of Infrastructure Operations • We built a new business platform including two types of infrastructure funds, the Asset Creation Fund Series(“ACF”) and the Income Fund Series (“IC
Slide 49: First Investment Case of the Income Fund (ICF)
Re-posting of FY22 3Q material Infrastructure Management Infrastructure Operations First Investment Case of the Income Fund（ICF） • Global Infrastructure Management and SMFL MIRAI Partners Company, Limited formed Income Fund (ICF), an infrastructure fund that invests in infrastructure projects, etc.
Slide 50: Contribution to profit vs. 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 51: News 1, News 2, News 3
We were featured on the YouTube channel News１ "Mariko Mabuchi's Stock Club" again, just like last November! 【Listed Company】 Changing the World with Infrastructure , Infrastructure Changes the World. -Interview with the President of INFRONEER HD !- Our president, Kibe , had a discussion with economi
Slide 52: Disclaimer
【Disclaimer】 • This financial presentation document is made in Japanese and translated in English. Any texts, figures and descriptions etc. in Japanese document is the original and the English document is for reference purposes. If there is any conflict or inconsistency between these two documents,