Infroneer Holdings Inc. · TSE:5076
Infroneer — FY2023 Earnings Presentation
64 slides from Infroneer's earnings presentation, May 15, 2024
Slide 1: INFRONEER Holdings FY2023 Full-Year Financial Presentation
INFRONEER Holdings FY2023 Full-Year Financial Presentation May 15, 2024
Slide 2: FY2023 Full-Year Financial Presentation Contents
FY2023 Full-Year Financial Presentation Contents Main Contents 11. Infrastructure Management :（Japan Wind Development） 1. Points Performance 2. Transition of Results and Forecast 12. Projects that Japan Wind Development is working on 3. Summary of Financial Results 13. Full details of governance ref
Slide 3: 1. Points
１.Points(All figures for FY22, 23 and 24 from this document are based on IFRS) ① Summary of financial FY23 results（P.6） • FY23 results showed a significant increase in both sales and profit over the previous year. (5/10 Upward revision disclosed) • Gross Profit, Operating Profit(Business profit in I
Slide 4: 1. Points
１.Points Infrastructure Management Segment（Maeda Corp.） （P.27-31） • FY23 results were in line with the plan, except for the postponement of the sale of renewable energy projects and some development facilities to this fiscal year. • By utilizing the know-how and experience accumulated through the Ai
Slide 5: 1. Points: Capital Strategy
１.Points ④Capital Strategy Shareholder Return （P.9） • Increased year-end dividend from 55 yen per share (interim 25 yen + year-end 30 yen) to 60 yen per share (interim 25 yen + year-end 35 yen)（ Disclosed on May 10, 2024 ） • We have completed JPY 10 billion yen share buyback in FY23 and achieved Med
Slide 6: 2. Transition of Results and Forecast
２.Transition of Results and Forecast • Operating profit in FY23 is at its highest level ever. • Added value is expected to exceed the previous year (expected to reach a record high) . Operating profit/Business profit Net income Operating profit/IFRS Business Profit Operating margin (Billions of Yen)
Slide 7: 3. Summary of Financial Results
3. Summary of Financial Results • FY23 results showed an increase in both sales and profit over the previous year. This growth was due to the acquisition of projects design changes and emphasizing on order intake activities that value gross profit margin. • For the FY24 full-year plan, we expect hig
Slide 8: 4. Segment Net Sales and Gross Profit
4. Segment Net Sales and Gross Profit （Billions of Yen） FY22(IFRS) FY23(IFRS) FY24(IFRS) ※ ①Results ②Revised ③Results +/-(③−①) +/-(③-②) ④Forecast +/-(④-③) Net sales 711.8 770.2 793.3 81.5 23.1 839.9 46.6 Building Construction 214.4 242.0 273.7 59.3 31.7 293.3 19.6 Civil Engineering 152.1 163.8 162.4
Slide 9: 5. Transition of Backlog, Order Intake and Profit Margin on Orders
5.Transition of Backlog, Order Intake and Profit Margin on Orders (Building Construction and Civil Engineering) • Expect record-high contract backlogs in the building construction segment, and high profit margin of orders received. • Decreased contract backlogs in the civil engineering segment but s
Slide 10: 6. FY23 Results of Capital Strategy & Return Policies
6.FY23 Results of Capital Strategy & Return Policies Shareholder returns • We have completed JPY 10 billion yen share buyback in FY23(as announced on Dec 28, 2023) and achieved Medium-term Vision 2024 targets one year ahead of schedule. Cross-shareholdings • We sold 3.9 billion yen in FY23. However,
Slide 11: 7. Main Factors for Increase/Decrease in the Consolidated Balance Sheet
7.Main Factors for Increase/Decrease in the Consolidated Balance Sheet Assets Liabilities and Capital （Billions of Yen） （Billions of Yen） 1410.6 (1311.5)※1 1410.6 Borrowings(current) 481.6 978.1 Contract asset +58.6 551.0 +284.6 Borrowings(fix) +29.9 (872.9)※1 【progressive-base- 978.1 【JWD M&A】 volu
Slide 12: 8. Financing Strategy for Making Japan Wind Development a Wholly Owned Subsidiary
８.Financing Strategy for Making Japan Wind Development Co., Ltd. a Wholly Owned Subsidiary • Emphasize balance between securing a financial base that contributes to growth and shareholder returns • Maintain the rating with consideration for dilution • Resolved to issue 60-billion-yen Zero Coupon Con
Slide 13: Reference: Zero Coupon Convertible Bonds (Green CBs)
Reference Zero Coupon Convertible Bonds (Green CBs) • Resolved to issue 60-billion-yen Zero Coupon Convertible Bonds (Green CBs) in March 2024 • Consideration for dilution of voting rights of existing shareholders by minimizing conversions through the granting of a conversion restriction clause Term
Slide 14: 9. Main reasons for increase/decrease in cash flow
９.Main reasons for increase/decrease in cash flow • In FY23, investment cash flow and financial cash flow fluctuated significantly due to large M&As. • Fluctuations in FCF (free cash flow) are affected by advances for construction work, but FCF fluctuations will be mitigated by improving payment ter
Slide 15: 10. Main Factors for Increase/Decrease in SG&A
10.Main Factors for Increase/Decrease in G&A Personnel expenses • Personnel expenses increased due to wage hikes and approximately 600 million yen in expenses related to the J- ESOP, which was introduced in FY24. R&D costs • Increase in R&D expenses due to productivity improvement initiatives (IT, D
Slide 16: 11. Capital Strategies and Stock price Performance
11.Capital Strategies and Stock price Performance • We will continue to perform capital-efficiency oriented management by constantly executing our capital strategies and by achieving our performance targets. FY21 FY22 FY23 FY24 Dividend payout ratio 42.2% Dividend payout ratio 39.7% Dividend payout
Slide 17: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 16
Slide 18: 1. Net Sales, Gross Profit, and Operating Profit (Maeda Corp.)
Include real estate business Building Construction 建築 １. Net Sales, Gross Profit, and Operating Profit ( Maeda Corp.) • FY23 FY Although net sales were significantly higher than the previous fiscal year (FY22), gross profit decreased due to a decline in profit margin. • After FY24 An increase in rev
Slide 19: 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. ) • FY23 FY Orders received were much higher than planned, and the profit margin of orders received at the time of ordering also reaches the original plan. • After FY24 We have
Slide 20: 3. Types of Orders Received (Maeda Corp.)
Include real estate business Building Construction 3. Types of Orders Received (Maeda Corp.) • FY23 FY “ Warehouses and Logistics Facilities", "Condominiums" and "Offices" large private projects are driving order intake. • After FY24 Ratio of "Condominium", "Warehouses＆Logistics Facilities" expected
Slide 21: 4-1. Topics: Large-scale private-sector projects, operational PFI projects
Building Construction 4-1.Topics: " Initiatives for large-scale private-sector projects," "Operational PFI projects" Warabi Station western exit redevelopment project Saitama Prefecture Indoor 50m Swimming Pool Development and Operation Project With the goal of revitalizing and enhancing the appeal
Slide 22: 4-2. Topics: Design and functionality, overseas projects
Building Construction 4-2.Topics： "Challenge to achieve both design and functionality", "Involvement in overseas projects". NOT A HOTEL ISHIGAKIJIMA NISSIN FOODS (U.S.A) Greenville Plant construction New Construction Project work It is the construction of vacation homes developed and sold This is a
Slide 23: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 22
Slide 24: 5. Net Sales, Gross Profit, and Operating Profit (Maeda Corp.)
Civil Engineering 5. Net Sales, Gross Profit, and Operating Profit ( Maeda Corp. ) • FY23 FY The significant improvement in the profit margin of large construction projects held at the beginning of the period, along with the acquisition of challenging design changes in projects completed this fiscal
Slide 25: 6. Orders Received and Profit Margin of Orders Received
Civil Engineering 6.Orders Received and Profit Margin of Orders Received ( Maeda Corp. ) • FY23 FY Order value has recovered significantly in both the public and private sectors, and the profit margin of orders received has remained high. • After FY24 We will implement a strategic bidding approach f
Slide 26: 7-1. Topics: Orders for dam realignment projects and new construction
7-1.Topics : “Received orders for dam realignment projects and new construction” Civil Engineering Omachi Dam and other realignment tunnel Construction work on Tobakochi Dam of the Class B construction for transporting soil and sand river, Tobakochi River After completing the technical cooperation w
Slide 27: 7-2. Topics: Large projects in urban and mountainous areas
7-2.Topics : “Received large projects in urban and mountainous areas with regional Civil Engineering expectations” Construction of a new station at Edagawa area, Yurakucho line Tennoubara tunnel tentative name construction work This project is to extend the Urban Rapid Transit Line No. 8 (Tokyo The
Slide 28: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 27
Slide 29: 8. Contribution to Consolidated Profits
Infrastructure Management (Maeda Corp.) 8. Contribution to Consolidated Profits • In FY23, sales and profits decreased due to the postponement of the sale of renewable energy projects and development projects. • In FY24, we plan to sell renewable energy projects and development projects that were po
Slide 30: 9. Major Infrastructure Management Projects in Japan
Infrastructure Management (Maeda Corp.) 9. Major Infrastructure Management Projects in Japan Proven track record in various infrastructure services. POINT Implementing efficient integrated management leveraging the strengths of the private sector. Comprehensive Facilities Concessions PFI(Service
Slide 31: 10-1. Kumamoto City Sewer Pipe Facilities Maintenance Works
10-1.Topics “Kumamoto City Comprehensive Maintenance Infrastructure Management and Management Works for Sewer Pipe Facilities” (Maeda Corp.) ・The first comprehensive management project for sewer pipeline facilities in a government-designated city in the Kyushu area. ・The purpose of the business is t
Slide 32: 10-2. Fuji City Solar Power Generation Equipment Project (PPA)
10-2.Topics"Fuji City Eastern Purification Center Solar Power Infrastructure Management (Maeda Corp.) Generation Equipment Installation Project (PPA)" ・Efforts to realize a decarbonized society through on-site solar power generation PPA model at sewager treatment plants. ・We plan to approach the Fuj
Slide 33: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 32
Slide 34: 11. Infrastructure Management (Japan Wind Development) Performance
Infrastructure Management (Japan Wind Development) 11.Infrastructure Management（Japan Wind Development consolidated ）Performance • Operating income of Japan Wind Development Group in FY24 is expected to be 1.5 billion yen. The company plans to sell some projects while making steady progress in devel
Slide 35: Reference: Goodwill and PPA Assets under IFRS
Infrastructure Management インフラ運営 (Japan Wind Development) (⽇本⾵⼒開発) Reference Goodwill and PPA Assets under IFRS Premium on acquisition price of Japan Wind Development Goodwill 139 PPA Asset（FIT rights etc,） 96 (Billions of Yen) 【Goodwill】 FY24 Operation Profit of JWD • Goodwill is not amortized unde
Slide 36: 12-1. Projects that Japan Wind Development is working on
Infrastructure Management (Japan Wind Development) 12-1.Projects that Japan Wind Development is working on Approximately 3,400MW power generation project is underway from upstream to downstream Under Under development development In Planning to FIT/FIP Expected operation replace （Successful 150MW bi
Slide 37: 12-2. Projects that Japan Wind Development is working on
Infrastructure Management 12-2. Projects that Japan Wind Development is working on (Japan Wind Development) We handle all phases of the wind power business, from development to operation. POINT Community coexistence comes first. Developed in constant dialogue with the local community In operatio
Slide 38: 13. Full details of governance reform
Infrastructure Management 13.Full details of governance reform (Japan Wind Development) • Based on INFRONEER HD's governance system, we will develop "regulations/systems" and "systems/personnel" to strengthen governance. • Continue to implement measures to strengthen governance INFRONEER HD Reflects
Slide 39: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 38
Slide 40: 14. Net Sales, Gross Profit, and Operating Profit (MAEDA ROAD Consolidated)
Road Civil Engineering 14. Net Sales, Gross Profit, and Operating Profit (MAEDA ROAD Consolidated) • FY23 FY Increase in sales and profit compared the previous year due to the price passthrough of the portion attributed to the rising cost of materials. • After FY24 In order to achieve the plan, the
Slide 41: 15. Orders Received, Net Sales, Gross Profit (Construction business)
Road Civil Engineering 15.Orders Received, Net Sales, Gross Profit, and Operating Profit (MAEDA ROAD Consolidated Construction business) • FY23 FY Increase in sales and profit compared the previous year due to order intake activities that emphasize gross profit margin. • After FY24 We aim to increas
Slide 42: 16. Net Sales, Gross Profit (Manufacturing and Sales Business)
Road Civil Engineering 16．Net Sales, Gross Profit, and Operating Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business) • FY23 FY Increase in sales and profit compared the previous year due to sales price reductions. • After FY24 We will set appropriate unit prices for mixtures sales in r
Slide 43: 17. Reduction of CO2 emissions by introducing CO2-free electricity
Road Civil Engineering 17．Topics “Reduction of CO2 emissions by introducing CO2-free electricity ” Converting Electricity at All Maeda Road Sites to CO2-Free Electricity in Compliance with RE100 POINT Selling all Maeda Road products as low-carbon products through the introduction of CO2-free ele
Slide 44: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Maeda Corp. Maeda Corp. Maeda Corp. Infrastructure Road Civil Machinery Management Engineering MAEDA SEISAKUSHO Japan Wind Development MAEDA ROAD 43
Slide 45: 18. Net Sales, Gross Profit, and Operating Profit (MAEDA SEISAKUSHO)
Machinery 18．Net Sales, Gross Profit, and Operating Profit (MAEDA SEISAKUSHO Consolidated) • FY23 FY Both sales and income increased YoY due to strong sales of Komatsu products and in-house products including crawler cranes. • After FY24 A certain degree of stability is expected due to demand for in
Slide 46: 19. Net Sales, Gross Profit, and Operating Profit (MAEDA SEISAKUSHO)
Machinery 19．Net Sales, Gross Profit, and Operating Profit※1 (MAEDA SEISAKUSHO Consolidated) • FY23 FY Sales of Construction Machinery increased due to the elimination of delivery delays and improved selling prices. As for Industrial machinery & Steel Products, sales of crawler cranes and other in-hou
Slide 47: 20. Topics: Efforts to expand the Overseas market
機械 20．Topics : Efforts to expand the Overseas market Expand partnerships and sales network Points Sales promotion of new models MAEDA AMERICA Activities 【Construction of the dealer to expand sales(track record and target cities)】 America Sales・Number of new dealers 120 100 12 Number of new deale
Slide 48: Appendix
Appendix 47
Slide 49: IFRS Transition Schedule and Major Changes Associated with Transition
Re-posting of FY23 3Q material IFRS Transition Schedule and Major Changes Associated with 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
Slide 50: Japan Wind Development Co., Ltd. (JWD) Becomes Subsidiary
Re-posting of FY23 3Q material Japan Wind Development Co., Ltd.（JWD）Becomes Subsidiary • We completed the acquisition of JWD's shares on January 31st, making the company a wholly owned subsidiary. On the same date, we secured a loan of 218.4 billion yen. • We plan to incorporate JWD's financial resu
Slide 51: Capital Financing Methods
Re-posting of FY23 3Q material Capital Financing Methods • At a meeting of the Board of Directors held on February 9, 2024, INFRONEER resolved to partially amend the Articles of Incorporation (an agenda item to be submitted to the General Meeting of Shareholders) and to submit the Shelf Registration
Slide 52: Impact on voting rights of existing shareholders and financial indicators
Re-posting of FY23 3Q material Impact on voting rights of existing shareholders and financial indicators • Bond-type class shares do not dilute the voting rights of current ordinary shareholders and would have a limited impact on financial indicators. Voting No voting rights Rights No dilution of vo
Slide 53: [Non-Consolidated] Maeda Corp. FY23 Results and FY24 Forecast
Maeda Corp. [Non-Consolidated] Maeda Corp. FY23 Results and FY24 Full-Year Forecast （Not including SPCs in Infrastructure Management segment） (Billions of Yen) FY22 FY23 FY24 ①Results ②Revised ③Results +/-(③-①) +/-(③-②) ④Forecast +/-(④-①) Net Sales 375.9 401.7 436.1 60.2 34.4 458.4 22.3 Total 215.4
Slide 54: [Consolidated] MAEDA ROAD FY23 Results and FY24 Forecast
MAEDA ROAD [Consolidated] MAEDA ROAD FY23 Results and FY24 Full-Year Forecast (Billions of Yen) FY22 FY23 FY24 ①Results ②Revised ③Results +/-(③-①) +/-(③-②) ④Forecast +/-(④-③) Net sales 248.7 246.8 256.0 7.4 9.2 261.5 5.5 Construction Business 171.0 166.0 176.3 5.3 10.3180.0 3.7 Manufacturing and Sal
Slide 55: [Consolidated] MAEDA SEISAKUSHO FY23 Results and FY24 Forecast
MAEDA SEISAKUSHO ⼤ [Consolidated] MAEDA SEISAKUSHO FY23 Results and FY24 Full-Year Forecast (Billions of Yen) 表 FY22 FY23 FY24 ①Results ②Forecast ③Results +/-(③-①) +/-(③-②) ④Forecast +/-(④-③) Net sales 39.4 40.7 41.9 2.5 1.2 42.0 0.1 Construction Machinery 23.6 23.3 24.8 1.2 1.5 23.7 -1.1 Industrial
Slide 56: INFRONEER Group's FY23 Results and FY24 Full-Year Forecast
INFRONEER Group’s FY23 Results and FY24 Full-Year Forecast Maeda Corp. (Millions of Yen) ※1 ※1 ※2 Consolidated FBS Fujimi Koken JM subsidiaries FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 (Other Segment) Results Results Forecast Results Results Forecast Results Results Forecast Net sales 15,855 14,
Slide 57: Business Model of Infrastructure Operations
Infrastructure Management Business Model of Infrastructure Operations Re-posting of FY22 3Q material • 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 Value up!! ④O
Slide 58: Contribution to profit vs. managerial accounting
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 59: INFRONEER Group Employee Stock Ownership Plan
Re-posting of FY23 1Q material INFRONEER Group Employee Stock Ownership Plan • We will implement the Employee Stock Ownership Plan (“J-ESOP”), which distributes INFRONEER Holdings’ stocks to all employees of INFRONEER Holdings’ and the Group companies, subject to certain criteria. • The purpose of t
Slide 60: Growth Strategy: Realization of an integrated infrastructure service company
Growth Strategy: Realization of an integrated infrastructure service company 59 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. Gro
Slide 61: Selected as a component of the MSCI Japan Equity ESG Select Leaders Index
ESG Selected as a component of the “MSCI Japan Equity ESG Select Leaders Index” The GPIF (General Pension Investment Fund), one of the world's largest pension fund management organizations, has selected us as a constituent of the MSCI Japan Equity ESG Select Leaders Index*1 for ESG investment. W
Slide 62: News: Corporate character Caretan and PR page
News1 Taking on the challenge of the future of infrastructure services! Birth of the corporate character "Caretan” The “Caretan,” our spokesperson, was created to communicate the social issues surrounding infrastructure and our efforts and services to solve them in a more familiar and easy-to-unders
Slide 63: BLANK
BLANK «7 INFRONEER Holdings Inc. ©2
Slide 64: Disclaimer
【Disclaimer】 • This financial presentation document is originally in Japanese and has been translated in English. Any texts, figures and descriptions etc. in Japanese document is the original and the English document is for reference purposes only. In case of any conflict or inconsistency between th