Kajima Corporation · TSE:1812

Kajima — H1 FY2019 Earnings Presentation

24 slides from Kajima's earnings presentation, Nov 13, 2019

1. Slide 1: FY2019 First Half Financial Results

   FY2019 First Half Financial Results November 13, 2019 An overview of our fiscal 2019 first half financial results follows.

2. Slide 2: FY2019 First Half Results / FY2019 Forecast

   Ⅰ FY2019 First Half Results 01 Ⅱ FY2019 Forecast 13 Copyright Ⓒ 2019 KAJIMA CORPORATION All Rights Reserved.

3. Slide 3: FY2019 First Half Results

   Ⅰ FY2019 First Half Results (April 1 - September 30, 2019) 1. Business Environment 2. Financial Highlights 3. Segment Performance Copyright Ⓒ 2019 KAJIMA CORPORATION All Rights Reserved.

4. Slide 4: 1. Business Environment

   Ⅰ FY2019 First Half Results 1. Business Environment Domestic market trends  Increasing demand in public sector  Stable demand in private sector mainly in non-manufacturing industries  Balanced supply-and-demand for labor and materials Progress of our measures  Proceed development and making use

5. Slide 5: 2. Financial Highlights

   Ⅰ FY2019 First Half Results 2. Financial Highlights Lower profit than FY18 1H. Good progress toward the initial full-year forecast FY19 FY18 1H FY19 1H YoY Change Progress Initial Result Result forecast Revenues 897.7 947.1 +49.4 46.4% 2,040.0 Operating Income 60.6 59.7 (0.8) 50.4% 118.5 Ordinary In

6. Slide 6: 2. Revenues

   Ⅰ FY2019 First Half Results 2. Revenues FY18 1H FY19 1H YoY Change Result Result Revenues 897.7 947.1 +49.4 1,000 JPY bil 800 319.3 YoY Change Factors 327.4  Building 600 +55.4 Construction (Kajima Corp) 400  Domestic 627.8 Subsidiaries and +15.1 570.3 Affiliates 200 0 FY18 1H FY19 1H Kajima Corp

7. Slide 7: 2. Operating Income

   Ⅰ FY2019 First Half Results 2. Operating Income FY18 1H FY19 1H YoY Change Result Result Operating 60.6 59.7 (0.8) Income 80 JPY bil 60 YoY Change Factors 8.6 8.9  Gross Profit (Civil Engineering, (4.1) Kajima Corp) 40  Gross Profit (Building Construction, +5.2 51.9 50.7 Kajima Corp) 20  Increase

8. Slide 8: 2. Ordinary Income

   Ⅰ FY2019 First Half Results 2. Ordinary Income FY18 1H FY19 1H YoY Change Result Result Ordinary 72.1 65.0 (7.0) Income 80 JPY bil 8.5 60 8.5 YoY Change Factors  Operating (0.8) Income 40  Non-operating 63.5 Income – net (6.1) 56.5 20 Reversal of allowance for (3.9) doubtful accounts Equity in ear

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

   Ⅰ FY2019 First Half Results 2. Net Income Attributable to Owners of the Parent FY18 1H FY19 1H YoY Change Result Result Net Income 54.5 49.8 (4.7) * Net Income Attributable to Owners of the Parent 80 JPY bil 60 YoY Change Factors 5.9  Ordinary (7.0) 11.1 Income 40  Extraordinary Income - net +1.1

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

    Ⅰ FY2019 First Half Results 3. Civil Engineering (Kajima Corp) Contracts  Equivalent level to FY18 1H Revenues  Equivalent level to FY18 1H Gross Profit  Decrease due to less projects that improved profits in 1H ■ Contract Awards ■Revenues ■ Gross Profit 200 200 50 27.0% FY19 Initial forecast JPY

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

    Ⅰ FY2019 First Half Results 3. Building Construction (Kajima Corp) Contracts  Increase due to more contract awards of large-scale projects Revenues  Steady progress in large-scale backlog projects Gross Profit  Increase due to increased revenues ■Contract Awards ■Revenues ■Gross Profit FY19 Initi

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

    Ⅰ FY2019 First Half Results 3. Real Estate and Other (Kajima Corp) Contracts  Decrease due to disposition of owned assets to Kajima private REIT in FY18 1H Revenues Gross Profit  Equivalent level to FY18 1H ■Contract Awards ■Revenues ■ Gross Profit 40 30 6 22.1% JPY bil JPY bil JPY bil 19.2% 16.7%

13. Slide 13: 3. Domestic Subsidiaries and Affiliates

    Ⅰ FY2019 First Half Results 3. Domestic Subsidiaries and Affiliates Contracts  Increase in interior and MEP(Mechanical, Electrical, Plumbing) works Revenues  Increase mainly in road paving and MEP works Ordinary  Increase in revenues Income  Improvement in margins of both construction and real e

14. Slide 14: 3. Overseas Subsidiaries and Affiliates

    Ⅰ FY2019 First Half Results 3. Overseas Subsidiaries and Affiliates Contracts  Decrease in regions at a high-level in FY18 Revenues  Decrease due to delay of construction starts Ordinary Income  Decrease in revenues and margin of construction business ■ Construction Contract Awards ■Revenues ■Ord

15. Slide 15: FY2019 Forecast

    Ⅱ FY2019 Forecast (April 1, 2019 - March 31, 2020) 1. Business Environment 2. Financial Highlights 3. Segment Performance 4. Stockholder Returns Copyright Ⓒ 2019 KAJIMA CORPORATION All Rights Reserved. Next, let us take a look at the forecast for the full-year results for fiscal 2019.

16. Slide 16: 1. Business Environment

    Ⅱ FY2019 Financial Forecast 1. Business Environment Domestic market outlook  Stable demand in civil engineering and private capital investments  Uncertainty in capital investments reflecting protracted trade friction between the U.S. and China Corporate strategies  Reinforce sales based on techno

17. Slide 17: 2. Financial Highlights

    Ⅱ FY2019 Financial Forecast 2. Financial Highlights Updated based on 1H result and business condition FY19 FY19 Change FY18 Initial Updated YoY Change from Initial Result Forecast Forecast Forecast Revenues 1,974.2 2,040.0 2,000.0 +25.7 (40.0) Operating Income 142.6 118.5 121.0 (21.6) +2.5 Ordinary

18. Slide 18: 3. Civil Engineering (Kajima Corp)

    Ⅱ FY2019 Financial Forecast 3. Civil Engineering (Kajima Corp) Contracts Revenues  Same as initial forecast Gross Profit ■Contract Awards ■Revenues ■Gross Profit 400 400 100 JPY bil JPY bil JPY bil 19.0% 15.2% 15.2% 303.8 300.0 300.0 301.0 80 300 300 290.0 290.0 60 57.1 200 200 44.0 44.0 40 100 100

19. Slide 19: 3. Building Construction (Kajima Corp)

    Ⅱ FY2019 Financial Forecast 3. Building Construction (Kajima Corp) Contracts  Same as initial forecast Revenues  Upward based on steady progress of backlog projects  Upward based on first half result and condition of backlog projects Gross Profit  Equivalent to FY18 ■Contract Awards ■Revenues ■G

20. Slide 20: 3. Real Estate and Other (Kajima Corp)

    Ⅱ FY2019 Financial Forecast 3. Real Estate and Other (Kajima Corp) Contracts Revenues  Same as initial forecast Gross Profit ■ Contract Awards ■Revenues ■Gross Profit 80 80 15 JPY bil JPY bil JPY bil 66.5 60.0 60.0 15.0% 13.3% 13.3% 60 60 50.0 50.0 51.2 10 7.6 8.0 8.0 40 40 5 20 20 0 0 0 FY18 FY19

21. Slide 21: 3. Domestic Subsidiaries and Affiliates

    Ⅱ FY2019 Financial Forecast 3. Domestic Subsidiaries and Affiliates Contracts  Upward due to increase in interior and road paving works Revenues  Equivalent to initial forecast Ordinary  Upward due to increased revenues of construction business Income ■ Construction Contract Awards ■Revenues ■Ord

22. Slide 22: 3. Overseas Subsidiaries and Affiliates

    Ⅱ FY2019 Financial Forecast 3. Overseas Subsidiaries and Affiliates Contracts  Upward due to increase in the U.S.(KUSA) and Taiwan(Chung-Lu) Revenues  Downward due to delay of construction starts Ordinary  Downward due to loss of construction business in Australia(KA) Income ■Construction Contrac

23. Slide 23: 4. Stockholder Returns

    Ⅱ FY2019 Financial Forecast 4. Stockholder Returns Dividend is unchanged from initial forecast FY19 FY19 FY17 FY18 Initial Updated Result Result Forecast Forecast Dividend per Share 48.00 50.00 50.00 50.00 Earnings per Share 244.29 211.67 173.44 184.94 (EPS) Payout Ratio 19.6％ 23.6％ 28.8% 27.0% * Th

24. Slide 24: Inquiries: Corporate Communication Group

    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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