Infroneer Holdings Inc. · TSE:5076
Infroneer — Q2 FY2021 Earnings Presentation
55 slides from Infroneer's earnings presentation, Nov 15, 2021
Slide 1: FY2021 2nd Quarter Financial Presentation of INFRONEER Holdings
FY2021 2nd Quarter Financial Presentation of INFRONEER Holdings November 15, 2021
Slide 2: About FY2021 2Q financial results
INFRONEER Holdings About FY2021 2Q financial results １．Financial Statements • Due to the establishment of INFRONEER holdings on October 1, 2021, Maeda Corporation, Maeda Road Construction Co., Ltd, and Maeda Seisakusho Co., Ltd. (hereinafter MK, MD and MS are collectively referred to as the “Three C
Slide 3: FY2021 2Q Financial Results Briefing Contents
INFRONEER Holdings FY2021 2Q Financial Results Briefing Contents FY2021 Forecast of INFRONEER Holdings and our strategies. １．Points 11．Topics - Touchstone for acquiring orders for large-scale renewal and renovation work on expressways and other ２．Overview roads ２-１．Transition of Contract Backlogs 12
Slide 4: FY2021 Forecast of INFRONEER Holdings and Our Strategies
INFRONEER Holdings FY2021 Forecast of INFRONEER Holdings and Our Strategies 3
Slide 5: Points
INFRONEER Holdings １．Points ①About FY2021 2Q financial results •We disclose 2Q financial results of three companies and FY2021 forecast of INFRONEER Holdings. •FY2021 forecast for net income of INFRONEER Holdings is expected to be a record high, +8.1% from Maeda Corporation's (consolidated) forecast
Slide 6: Overview
INFRONEER Holdings ２．Overview （Billions of yen) • We reviewed FY2021 forecast of INFRONEER Holdings due to steep rise in crude oil price and increasement of general and administrative expenses. Net sales • We announced price increase of asphalt products, but our FY2021 forecast is not take profit 75
Slide 7: Transition of Contract Backlogs (Maeda Corporation non-consolidated)
INFRONEER Holdings ２-１．Transition of Contract Backlogs (Maeda Corporation non-consolidated) • Contract backlogs for building construction and civil engineering is record high level. • Our cost management increases profit ratio at orders received. （Billions of yen） （Billions of yen） Transition of con
Slide 8: Changes in Consolidated Financial Results of Maeda Corporation and INFRONEER Holdings
INFRONEER Holdings （Reference）Changes in Consolidated Financial Results of Maeda Corporation and INFRONEER Holdings • Profit attributable to non-controlling interests is decreased • Profit of MD and MS of second half year of FY21will be profit attributable to owners of parent of INFRONEER Holdings F
Slide 9: Segments
INFRONEER Holdings ２-２．Segments • Segments of INFRONEER Holdings and Maeda Corporation will be changed. NEW Segment of INFRONEER Holdings FORMER Segment of Maeda Corporaion MK Building Construction Building MK Building Construction Building JM Construction MK Real Estate (Building Construction) Cons
Slide 10: Segment Net Sales and Profit
INFRONEER Holdings ２-３．Segment Net Sales and Profit （Billions of Yen) INFRONEER Holdings Maeda Corporation (Consolidated) YoY FY2021 Forecast ＋/ー Former Segment Initial Forecast New Segment FY2020 Results for FY2021 FY20 2Q Results FY21 2Q Results ＋/ー % Net sales 710.0 710.0 0.0 Net sales 678.1 714.
Slide 11: FY2021 Highlights
INFRONEER Holdings ２-４．FY2021 Highlights （１）Building Construction • Both net sales and profits performing steady as last year.(P.23) • Big and profitable project will be completed in end of this financial year which contributes to achieve our financial forecast of FY2021. • Orders received are 124.4
Slide 12: FY2021 Highlights
INFRONEER Holdings ２-４．FY2021 Highlights （３）Infrastructure Operations • Both concession and renewable energy business performing stably. • Sale of renewable energy business is scheduled in end of this financial year, and it will contributes to achieve our financial forecast of FY2021. • Acquired pri
Slide 13: Point of Our Strategy
INFRONEER Holdings ３．Point of Our Strategy ①Concept of our management •Pursuing exquisite balance with centripetal power of the holdings company and centrifugal power of the three companies and aim for explosive improvement of corporate value. ②Our Goal •Sharing strategy of “Integrated Infrastructur
Slide 14: Our Goal
INFRONEER Holdings ３-１． Our Goal • Strongly promote “integrated infrastructure service company” that manages both upstream and downstream of infrastructure operation business aiming to establish a business model that realizes sustainable growth without being influenced by external factors. • Create
Slide 15: Business Model of Infrastructure Operations
INFRONEER Holdings ３-２．Business Model of Infrastructure Operations • Infrastructure operations is business that gain profits on every steps from upstream to downstream of infrastructure management. ⑤Sale →Profit from sale (+α) Fund, AM → Dividend, AM Fee Value up!! ④O&M →O&M fee ③EPC →Construction r
Slide 16: Results and Forecast of Capital Strategies & Return Policies
INFRONEER Holdings ３-３．Results and Forecast of Capital Strategies & Return Policies • Set goals for capital efficiency, optimal capital structure, and shareholder returns, with the highest priority on improving corporate value, and implement countermeasures on a regular basis. Medium-term Vision 202
Slide 17: Management Target
INFRONEER Holdings ３-４．Management Target • We aim more than 1.2 trillion JPY of net sales, 100 billion JPY and around 8% profit rate of operating profit, 70 billion JPY of net income and 12% in ROE in financial year of 2030 Preliminary phase Growing phase Return to employees according •Planning grou
Slide 18: Maeda Corporation FY2021 2Q Summary of Financial Results
Maeda Corp. Maeda Corporation FY2021 2Q Summary of Financial Results 17 17
Slide 19: Consolidated FY2021 Profit and Loss Statement
Maeda Corp. １．[Consolidated] FY2021 Profit and Loss Statement • FY2021 2Q Gross profit margin was consistent with FY2020 2Q except special factors (large amount of change orders in civil engineering). • FY2021 FY Forecast was revised due to the lower profit in the paving segment, despite the expecta
Slide 20: Consolidated Segment Net Sales and Gross Profit
Maeda Corp. 2．[Consolidated] Segment Net Sales and Gross Profit 2Q Full Year (Billions of yen) (3)FY2021 HD Former FY2020 FY2021 (1)FY2020 (2)FY2021 YoY YoY New YoY Revised FY2021 Results Results Segment (Comparison (Comparison Segment Results Forecast Forecast between (3) and (1)) between (3) and (
Slide 21: Non-Consolidated Segment Net Sales and Gross Profit
Maeda Corp. 3．[Non-Consolidated] Segment Net Sales and Gross Profit 2Q Full Year (Billions of yen) FY2020 FY2021 FY2020 FY2021 FY2021 Results Results Results Forecast Revised Forecast Net Sales 170.1 165.3 366.1 393.0 386.0 Total 97.6 101.3 214.4 238.5 226.4 Building Construction Domestic 97.2 101.3
Slide 22: Maeda Group's Financial Results and Forecast
Maeda Corp. 4． Maeda Group’s Financial Results and Forecast (Millions of yen) FBS Fujimi Koken Consolidated FY2021 FY2021 Subsidiaries FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 Revised Revised Results Results Forecast Results Results Forecast forecast forecast Net sales 21,572 23,014 20,657 21,000 7
Slide 23: Segment Highlights
Maeda Corp. Segment Highlights Building Civil Infrastructure Construction Engineering Operations 22
Slide 24: Building Construction: Trends in Net Sales and Gross Profit
Maeda Corp. 5．[Non-consolidated] Building Construction : Trends in Net sales and Gross Profit • FY2021 2Q Gross profit is same level as FY2020 2Q • FY2021 FY Increases in Net sales, Gross profit, and margin compared with FY2020 Full year is expected. Domestic Overseas （Directly Controled） （Major Loc
Slide 25: Building Construction: Orders Received and Profit on Orders Received
Maeda Corp. ６． [Non-consolidated] Building Construction : Orders Received and Profit on Orders Received • FY2021 2Q Domestic orders have been steady. The number of orders for public works increased due to orders received related to concession projects. • FY2021 FY Expect to achieve the target amount
Slide 26: Building Construction: Types of Orders Received
Maeda Corp. ７． [Non-consolidated] Building Construction : Types of Orders received • FY2021 2Q The proportion of orders for educational/research and cultural institutions increased due to orders for indoor and outdoor sports facilities. • FY2021 FY Expecting increase in the proportion of orders for
Slide 27: Focusing on Winning Contracts for Major Multipurpose Building Projects
Maeda Corp. 8． Topics - Focusing on Winning Contracts for Major Multipurpose Building Projects Harumi 5-chome West Area The new Aichi Prefectural Gymnasium Urban Redevelopment Project Building Project Aim to create a diversified and lively town with families raising Aim to create a symbolic facility
Slide 28: Segment Highlights
Maeda Corp. Segment Highlights Building Infrastructure Civil Engineering Construction Operations 27
Slide 29: Civil Engineering: Trends in Construction Revenue and Profit
Maeda Corp. 9．[Non-consolidated] Civil Engineering : Trends in Construction Revenue and Construction Profit • FY2021 2Q Progress was consistent with FY2020 2Q except special factors (Large amount of change orders acquired at both domestic and overseas projects in FY2019 and FY2020) • FY2021 FY Domes
Slide 30: Civil Engineering: Orders Received and Profit on Orders Received
Maeda Corp. 10．[Non-consolidated] Civil Engineering : Orders Received and Profit on Orders Received • FY2021 2Q Orders decreased slightly due to strong private-sector orders, despite decline in public-sector orders due to fierce competitions / Expected to achieve 9.1% of profit margin at FY21 4Q by
Slide 31: Touchstone for acquiring orders for large-scale renewal and renovation work on expressways
Maeda Corp. 11．Topics - Touchstone for acquiring orders for large-scale renewal and renovation work on expressways and other roads Ami construction work on the Metropolitan Area Central Link Expressway (Ken-o Expressway) Earthwork for the conversion of the Metropolitan Area Central Link Expressway b
Slide 32: Segment Highlights
Maeda Corp. Segment Highlights Building Infrastructure Civil Engineering Construction Operations 31
Slide 33: Contribution to Consolidated profits
Maeda Corp. 12．Contribution to Consolidated profits • FY2021 2Q: Renewable energy business was generally firm. Concessions are recovering from the impact of COVID-19. • FY2021 4Q: Target expected to be achieved due to recognition of gain on sale of renewable energy business (Billions of Yen) FY2017
Slide 34: Contributions of infrastructure operation segment to the consolidated profit
Maeda Corp. 13．Contributions of infrastructure operation segment to the consolidated profit ・”Contribution of infrastructure management business to consolidated profits“ = “Profits from construction projects (EPC) generated by the infrastructure operation businesses" and "consolidated profits of SPC
Slide 35: Ongoing Infrastructure Operations
Maeda Corp. 14．Topics : Ongoing Infrastructure Operations Happo Wind Farm Project Aichi Prefecture Toll Road Concession Manufacturer GE Output 3,200 kW Rotor diameter 103m Hub height 84m A 20MW onshore wind power generation While toll revenues declined due to widespread project in Happo-cho, Akita P
Slide 36: Introduction of Osaka City Industrial Water Supply Specified Operation Project
Maeda Corp. 15．Introduction of Osaka City Industrial Water Supply Specified Operation Project, etc. • Japan's first private-sector business licensed by the Minister of Economy, Trade and Industry to operate as industrial water utility • Japan's first all-in water concession project including monitor
Slide 37: Maeda Road Construction FY2021 2Q Summary of Financial Results
Maeda Road Maeda Road Construction FY2021 2Q Summary of Financial Results 36
Slide 38: Consolidated FY2021 Profit and Loss Statement
Maeda Road １．[Consolidated] FY2021 Profit and Loss Statement • FY2021 2Q Net sales was same level as last year, but profit declined significantly due to high price of crude oil and weaker yen. • FY2021 FY We announced price increase of asphalt products, but our FY2021 forecast is not take profit rec
Slide 39: Consolidated Segment Net Sales and Gross Profit
Maeda Road 2．[Consolidated] Segment Net Sales and Gross Profit 2Q Full Year (Billions of Yen) FY20 FY21 ③FY21 ①FY20 ②FY21 YoY YoY 2Q 2Q YoY Revised Results Forecast ③－① ③－② Results Results Forecast Net Sales 104.1 106.4 +2.3 234.6 240.0 240.0 +5.4 0.0 Construction Business 71.2 73.5 +2.3 160.5 164.0
Slide 40: Segment Highlights
Maeda Road Segment Highlights Construction Manufacturing business and sales business 39
Slide 41: Construction business: Orders received, work completed, and income
Maeda Road 3．[Consolidated] Construction business : Orders received, work completed, and income • FY2021 2Q Orders received and construction revenue remained flat, while profit declined due to cost increase. • FY2021 FY Profit will be improved as progress of construction works increases construction
Slide 42: Topics - Construction business
Maeda Road 4．Topics – Construction business Construction business (road paving and civil engineering) Extensive development of large-scale expressways, airports, harbors, sports facilities, private parking lots, etc. Tokyo-Nagoya Expressway, Fuji area Oita Airport Okazaki City Ryuhoku Sports Park So
Slide 43: Topics - Comprehensive management
Maeda Road 5． Topics - Comprehensive management Fuchu City (East area) Comprehensive Road Management Project Fuchu City East area Regular meeting Road cleaning Target area Road repair Planting Management Business activities that continue to grow with “community” and “people” Road Management Center •
Slide 44: Segment Highlights
Maeda Road Segment Highlights Construction Manufacturing business and sales business 43
Slide 45: Manufacturing and sales Business: Net Sales and Gross Profit
Maeda Road 6．[Consolidated] Manufacturing and sales Business: Net Sales and Gross Profit • FY2021 2Q Profits decreased drastically due to high price of crude oil and weaker yen. • FY2021 4Q We announced price increase of asphalt products. We aim for improvement of profitability with promotion of pri
Slide 46: Topics - Manufacturing and Sales Business
Maeda Road 7．Topics - Manufacturing and Sales Business Mainly manufacture and sale asphalt mixture products for paving contractors, and also dael in products for general customers. All-weather high-durability normal Step correction temperature plywood material Domestic version of Overseas version of
Slide 47: Maeda Seisakusho FY2021 2Q Summary of Financial Results
Maeda Seisakusho Maeda Seisakusho FY2021 2Q Summary of Financial Results 46
Slide 48: Consolidated FY2021 Profit and Loss Statement
Maeda Seisakusho １．[Consolidated] FY2021 Profit and Loss Statement • FY2021 2Q Steady orders and sales of construction machinery and cranes. • FY2021 FY Net sales and gross profit expected to be in line with initial forecasts. (Billions of Yen) YoY FY2020 FY2021 Results Results +/- ％ Net sales 14.7
Slide 49: Consolidated Segment Net Sales and Gross Profit
Maeda Seisakusho 2．[Consolidated] Segment Net Sales and Gross Profit 2Q Full Year (Billions of Yen) FY20 FY21 FY21 FY20 FY21 2Q 2Q +/- Revised YoY Results Forecast Results Results forecast Net sales 14.7 16.8 +2.1 33.5 35.7 +2.2 Construction Machinery 10.0 10.9 +0.9 22.4 21.7 -0.7 Industrial and ste
Slide 50: Segment Highlights
Maeda Seisakusho Segment Highlights Construction Industrial Machinery Machinery & Steel Products 49
Slide 51: Construction Machinery Business: Net Sales and Gross Profit
Maeda Seisakusho 3．[Consolidated] Construction Machinery Business : Net Sales and Gross Profit • FY2021 2Q New car sales and service sales were steady. • FY2021 4Q Net sales and gross profit expected to achieve forecasts. 2Q Full Year Net Sales Gross Profit Net Sales Gross Profit Gross Profit Ratio
Slide 52: Segment Highlights
Maeda Seisakusho Segment Highlights Construction Industrial machinery Machinery & Steel Products 51
Slide 53: Industrial Machinery & Steel Products: Net Sales and Gross Profit
Maeda Seisakusho 4．[Consolidated] Industrial Machinery & Steel Products : Net Sales and Gross Profit • FY2021 2Q Steady sales of industrial machinery products. (spider cranes) • FY2021 4Q Net sales and gross profit expected to be in line with initial forecasts. ２Q Full Year Net Sales Gross Profit Ne
Slide 54: Topics - Introducing attractive products to the market
Maeda Seisakusho 5. Topics - Introducing attractive products to the market ・Launched sale of our own carbon neutral products to the world. Fully-Electric spider crane powered by lithium-ion battery Zero Emissions ■Ecological, Economical and Efficient work by High-performance lithium-ion battery ■Adv
Slide 55: 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,