Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — 1H FY03/2023 Earnings Presentation
32 slides from Tokyu Construction's earnings presentation, Nov 17, 2022
Slide 1: The First Half Financial Results Briefing
FY03/2023 The First Half Financial Results Briefing November 17, 2022
Slide 2: Overview of First Half FY03/23 Financial Results
FY03/2023 Overview of First Half FY03/23 Financial Results The First Half FY03/2023 Financial Results Briefing
Slide 3: Overview
Overview Government investment in construction increased slightly. Private investment in construction remained firm not only for warehouses and logistics facilities, for which demand expanded due to the COVID-19 pandemic, but also for factories, thanks to the recovery of companies’ appetite for ca
Slide 4: FY03/23 First Half Results (Consolidated)
FY03/23 First Half Results (Consolidated) The Company’s non-consolidated orders were about 53% ahead of the full-year forecast. Operating income returned to profitability due to the elimination of the deterioration in profit/loss that occurred in the same period of the previous year as a result of q
Slide 5: Factors Affecting Net Income (Consolidated)
Factors Affecting Net Income (Consolidated) Completed construction gross profit increased significantly due to the elimination of the deterioration in profit/loss that occurred in the same period of the previous year. 4,000 (Millions of yen) Increase in Increase in completed Foreign SG&A Decline in
Slide 6: FY03/23 First Half Results (Non-Consolidated)
FY03/23 First Half Results (Non-Consolidated) Completed construction sales increased due to the construction projects progressing as expected. Completed construction gross profit increased due to an increase in completed construction sales and the elimination of the deterioration that occurred in th
Slide 7: Completed construction sales・gross profit (Civil engineering)
Completed construction sales・Completed construction gross profit（ Non-Consolidated ／ Civil engineering ） Completed construction sales ：Revenue increased due to increases in the domestic public and general private sectors. Gross profit ：It was as expected, with the elimination of aggravating factors
Slide 8: Orders (Non-Consolidated / Civil engineering)
Orders（ Non-Consolidated ／ Civil engineering ） The acquisition of overseas ODA projects (for example, a subway construction project in the Philippines) contributed significantly to the increase in orders received. Progress of about 57% against the full-year forecast for orders of 75.4 billion yen. 4
Slide 9: Completed construction sales・gross profit (Building construction)
Completed construction sales・Completed construction gross profit（ Non-Consolidated ／ Building construction） Completed construction sales ：Increased about 13% year on year as major projects received in the past fiscal year progressed. Gross profit ：Profit increased due to an increase in completed con
Slide 10: Orders (Non-Consolidated / Building construction)
Orders（ Non-Consolidated ／ Building construction） Orders increased, with orders received for large-scale redevelopment projects as well as factories and distribution warehouses. Progress of about 52% against the full-year forecast for orders of 200 billion yen. 94,047 104,424 303 5,261 (Millions of
Slide 11: Selling, general & administrative expenses (Consolidated)
Selling, general & administrative expenses （Consolidated） Selling, general & administrative expenses increased ¥537 million year on year. Expenses for R&D, digital technology, and innovation promotion increased. SG&A SG&A expenses (Millions of yen) expenses /Net sales 8,101 7,563 7,130 7.5% 6.8% 6.3
Slide 12: Balance Sheet (Consolidated)
Balance Sheet（Consolidated） Equity ratio was at 40.0％, increase of 1.1 percentage points compared to March 31, 2022. (Millions of yen) Liabilities and Assets equity Short-term 237,811 233,047 borrowings+19,994 237,811 233,047 Provision for warranties for completed construction＋1,541 Notes receivable
Slide 13: Interest-bearing debt, Equity, D/E ratio (Consolidated)
Interest-bearing debt, Equity, D/E ratio（Consolidated） D/E ratio was at 0.24 times, almost flat year on year. Interest-bearing debt (Millions of yen) Equity 102,963 92,490 93,252 26,754 22,431 22,221 As of March 31, As of March 31, As of September 30, 2021 2022 2022 0.26 0.24 0.24 D/E ratio times ti
Slide 14: Cash flow statement (Consolidated)
Cash flow statement（Consolidated） Free cash flow is ¥8.9 billion as cash flows from operating activities increased due to a decrease in trade payables, etc. (Millions of yen) Year ended Year ended Items September 30, September 30, Remarks 2021 2022 Cash increased mainly due to a decrease in notes an
Slide 15: Full-Year Forecast
FY03/2023 Full-Year Forecast The First Half FY03/2023 Financial Results Briefing
Slide 16: P/L Forecast (Consolidated)
P/L Forecast（Consolidated） For net sales, completed construction sales of domestic buildings and real estate sales are expected to increase. Operating income is expected to be lower than the previous forecast due to deterioration in the earnings of overseas subsidiaries, despite the expected gain on
Slide 17: P/L Forecast (Non-Consolidated)
P/L Forecast (Non-Consolidated) Completed construction sales is expected to exceed the previous forecast by about 10.3 billion yen. Although completed construction gross profit will decrease, operating income is expected to exceed the previous forecast due to the expected gain on sales of real estat
Slide 18: Order Forecast (Non-Consolidated)
Order Forecast（Non-Consolidated） Civil engineering：Aim to acquire mainly domestic public service projects such as those for building national land resilience and private-sector railway construction. Building construction：200 billion yen is expected at the beginning of the period, capturing the deman
Slide 19: P/L・Order Forecast (Civil engineering)
P/L・Order Forecast（Non-Consolidated／Civil engineering ） The completed construction sales is forecast to increase, as there will be progress in public- service and overseas projects. Completed construction gross profit is forecast to improve as the revenue deterioration experienced in the previous fi
Slide 20: P/L・Order Forecast (Building construction)
P/L・Order Forecast（Non-Consolidated／Building construction） Completed construction sales is forecast to increase due to progress in the construction projects contracted in previous fiscal years. The completed construction gross profit margin assumes the risk of hikes in equipment/material prices. (Mi
Slide 21: Net Sales・Gross Profit Forecast (Construction Renewal)
Net Sales・Gross Profit Forecast（Construction Renewal） Quotation requests are on the rise, and hence net sales and the amount of orders received will both return to the pre-COVID-19 levels. (Millions of yen) Net Sales・Gross Profit Orders Profit Margin Ratio 10.6% 9.1% 25,966 23,000 17,170 14,801 FY03
Slide 22: Net Sales・Gross Profit Forecast (International・Real estate)
Net Sales・Gross Profit Forecast（International・Real estate） International： Net sales is expected to increase due to less impact from the COVID-19 pandemic in countries in which business is conducted and the expected progress of large-scale ODA construction projects.It is expected that the profitabili
Slide 23: Dividend Forecast
Dividend Forecast Based on the policy of aiming at a dividend on equity ratio (DOE) of 4.0% or higher, a dividend of 36 yen per share is planned for FY03/2023. (yen) Dividend per share(yen) Forecast 36 31 30 30 26 Year-end 25 18 （forecast） 10 Interim 18 FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/2
Slide 24: Progress of Long-Term Management Plan
Progress of Long-Term Management Plan The First Half FY03/2023 Financial Results Briefing
Slide 25: Long-Term Management Plan to Achieve Vision2030
Long-Term Management Plan to Achieve Vision2030 To realize VISION2030, we will implement five priority strategies, with human resources and digital technology as the source of our competitive advantage and the three values we provide (decarbonization, zero waste, disaster prevention and mitigation)
Slide 26: Efforts to Prevent Recurrence of Quality Problems and Restore Trust
Efforts to Prevent Recurrence of Quality Problems, Improve Construction Quality, and Restore Trust Loss recorded due to construction defects, etc. (FY2021) Recorded estimated losses related to the “defective ends of piles” disclosed on July 26, 2021. Recorded estimated costs of removing temporar
Slide 27: Promoting the Three Values We Provide
Promoting the Three Values We Provide (Decarbonization, Zero Waste, Disaster Prevention and Mitigation) 【Business strategy１・２・３】 Responding to climate change is the most important social issue that needs to be solved and a major business opportunity. Improving the value of owned real estate by Activ
Slide 28: Strengths of the Tokyu Construction Group
Strengths of the Tokyu Construction Group “Technology, know-how, and teamwork that keep urban functions running” 【Business strategy２】 Technology and know-how to reconstruct the functions of cities without impairing the convenience and safety of daily life, cultivated from our founding spirit, spirit
Slide 29: Track Record of Receiving Orders by Taking Advantage of Strengths
Track Record of Receiving Orders by Taking Advantage of Strengths 【Business strategy２】 Participated in various projects not only for Shibuya Station and along the Tokyu Line, but also around the station and in the vicinity of the railway, further refining our strengths. Type 1 urban redevelopment pr
Slide 30: Establishing Competitive Advantage and responding to business environment changes
Establishing Competitive Advantage Based on Strengths and responding to changes in the business environment 【Business strategy２・３】 Going forward, demand to rebuild existing towns will increase due to population concentration in cities. Based on our accumulated strengths in "Technology and know-how t
Slide 31: Human resources development and reform of organizational culture
Human resources development and reform of organizational culture 【Business strategy４】 Develop human resources capable of leading innovation autonomously toward structural changes in the construction industry and challenges in new business areas. Aim to create an organizational culture that strives f
Slide 32: 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
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