Seikitokyu Kogyo Co., Ltd. · TSE:1898
Seikitokyu Kogyo — FY2021 Earnings Presentation
34 slides from Seikitokyu Kogyo's earnings presentation, Jun 3, 2022
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2022
Financial Results Presentation for the Fiscal Year Ended March 31, 2022 June 3, 2022 Becoming a truly strong corporate group
Slide 2: Contents
Contents Impact of the COVID-19 Pandemic 4 Business Environment During FY2021 5 Financial Results (Consolidated and Non-consolidated) 6 Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated) 7 Overview of Financial Results Construction Work Orders Received (Non-consolid
Slide 3: Overview of Financial Results for the Fiscal Year Ended March 31, 2022
Overview of Financial 1 Results for the Fiscal Year Ended March 31, 2022
Slide 4: Impact of the COVID-19 Pandemic
1 Impact of the COVID-19 Pandemic We take thorough measures to prevent the spread of COVID-19 and Preventive continue construction works and plant operations to stably and constantly measures operate our business and provide our services while ensuring the safety and health of executives, employees,
Slide 5: Business Environment During FY2021
1 Business Environment During FY2021 Spread of COVID-19 continued to affect our business. Production activities slowed down due to supply shortages of semiconductors and other parts. In the road construction market, public investment remained strong in relation to disaster prevention and mitigation
Slide 6: Financial Results (Consolidated and Non-consolidated)
1 Financial Results (Consolidated and Non-consolidated) Neither sales nor profits avoided a year-on-year downturn. (For the previous fiscal year, net sales exceeded 90 billion yen for the first time since the fiscal year ended March 31, 2002, and we posted record high operating income and ordinary p
Slide 7: Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated)
1 Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated) Both construction work orders and product sales decreased. Overall orders received declined by 7.5%. While construction works for the contracts in progress at the beginning of FY2021 steadily progressed, orders re
Slide 8: Construction Work Orders Received (Non-consolidated)
1 Construction Work Orders Received (Non-consolidated) Construction work orders from the private sector, which we focus on, increased by 7.3%. While construction work orders from the public sector grew in the second half of the fiscal year, overall construction work orders received failed to reach t
Slide 9: Product Manufacturing and Sales Results (Non-consolidated)
1 Product Manufacturing and Sales Results (Non-consolidated) Demand continued to be sluggish, and production volume and sales volume of asphalt composites fell short of those for the previous year. Prices of raw materials and other materials, including those related to crude oil, remained high, sign
Slide 10: Net Sales and Profit (Loss) Results by Segment (Consolidated)
1 Net Sales and Profit (Loss) Results by Segment (Consolidated) The Construction Business remained firm, with extensive construction works in progress at the beginning of FY2021 making steady progress. However, net sales and segment profit decreased, showing a year-on-year downturn. (Up to the previ
Slide 11: SG&A, Operating Income, Ordinary Profit and Net Income (Consolidated)
SG&A, Operating Income, Ordinary Profit and Net Income 1 (Consolidated) Costs to invest in securing and developing human resources, such as personnel costs and training expenses, increased. Extraordinary losses decreased mainly because our subsidiary in Myanmar had incurred impairment losses of 1,15
Slide 12: Analysis of Factors Affecting Changes in Net Income (Consolidated)
Analysis of Factors Affecting Changes in Net Income 1 (Consolidated) While there were positive factors, such as year-on-year increase in extraordinary income and decrease in extraordinary losses, marked declines in construction work profit and product profit resulted in a decrease of 1,875 million y
Slide 13: Consolidated Financial Position and Cash Flows
1 Consolidated Financial Position and Cash Flows Purchase of property, plant and equipment of 3,516 million yen, including expenses for office rebuilding Purchase of treasury shares of 2,500 million yen Dividends paid of 1,731 million yen Borrowing increased by 1,999 million yen (Borrowed 2,000 mill
Slide 14: Major Construction Works We Received Orders for
1 Major Construction Works We Received Orders for Site Customer Project (Prefecture) TOKYU LAND CORPORATION Artificial ground work for BRANZ Kita 24-jo West Hokkaido East Nippon Expressway Company Pavement repair work within the jurisdiction of Morioka Iwate Limited Management Office of Tohoku Expre
Slide 15: Major Completed Construction Works
1 Major Completed Construction Works Site Customer Project (Prefecture) Pavement repair work within the jurisdiction of Towada Management Office East Nippon Expressway Company Limited Aomori of Tohoku Expressway Tohoku Regional Development Bureau, Ministry of Land, Infrastructure, Transport Route 45
Slide 16: Compliance
1 Compliance Prevent recurrence of violation of the Anti-Monopoly Act In response to the violations of the Anti-Monopoly Act that had taken place in the period up to January 2015, we will continue to implement measures laid out to prevent recurrence across the Company and strive to regain trust earl
Slide 17: Topics
1 Topics Purchase of treasury shares 1 Resolution to purchase treasury shares approved at the Board of Directors meeting held on May 12, 2021 (1) Class of shares to purchase Common shares of the Company (2) Total number of shares to purchase 3,500,000 shares (upper limit) (8.67% of the total number
Slide 18: Outlook for the Fiscal Year Ending March 31, 2023
Outlook for the Fiscal Year 2 Ending March 31, 2023
Slide 19: Financial Results Forecast for FY2022
Financial Results Forecast for FY2022 2 (Non-consolidated) We continue to see firm underlying demand in the road construction market, such as disaster prevention and mitigation business and greater national resilience. Net sales, operating income, and ordinary profit are expected to increase. Foreca
Slide 20: Net Sales and Profit (Loss) Forecast by Segment (Consolidated)
2 Net Sales and Profit (Loss) Forecast by Segment (Consolidated) In the Construction Business, we expect higher net sales of completed construction contracts and construction work profit, backed by solid orders received. While we continue to face a challenging business climate due to consistently hi
Slide 21: Forecast of Construction Work Orders to be Received (Non-consolidated)
Forecast of Construction Work Orders to be Received 2 (Non-consolidated) As we expect a gradual decrease in public works in the future, we will continue to focus on strengthening the base of receiving construction orders from the private sector, taking into account medium- to long-term marketability
Slide 22: Reference: Medium-term Management Plan (FY2021–2023)
Reference: Medium-term 3 Management Plan (FY2021–2023)
Slide 23: Overview of the Medium-term Management Plan (FY2021-2023)
3 Medium-term Management Plan (FY2021–2023) Overview of the Medium-term Management Plan (FY2021-2023) Corporate An infrastructure building company that helps create affluent Philosophy communities A truly strong corporate group that pursues personal and corporate growth Vision in tandem and helps re
Slide 24: Key Performance Indicators (consolidated)
3 3 Medium-term Management Plan (FY2021–2023) Key Performance Indicators (consolidated)(final year of the plan) Operating income is assumed at the same level as FY2018 and Indicator FY2020 FY2021 FY2023 FY2019, while projecting revenue growth. We estimate a decrease Actual Actual Plan in large-scale
Slide 25: Individual Strategies / Key Strategies
3 Medium-term Management Plan (FY2021–2023) Individual Strategies / Key Strategies Strategy 1 Expand stable earnings by further strengthening the competitiveness of our core businesses 【Construction Business】 Increase competitiveness to win construction orders from the Ministry of Land, Infrastruc
Slide 26: Individual Strategies / Key Strategies
3 Medium-term Management Plan (FY2021–2023) Individual Strategies / Key Strategies Strategy 3 Create a virtuous cycle in the recruitment, retention, and development of human resources Secure talents necessary to grow our business scale under the Plan, by hiring diverse human resources and strength
Slide 27: Capital Policy (Investment Plans, Financial Plans and Shareholder Returns)
3 Medium-term Management Plan (FY2021–2023) Capital Policy (Investment Plans, Financial Plans and Shareholder Returns) Consistent and strategic investment to build sustainable business foundation FY2021 Over three-year plan Maintenance, renewal, acquisition of factories, offices, Approx. 3.4 billion
Slide 28: Capital Policy (Investment Plans, Financial Plan and Shareholder Returns)
3 Medium-term Management Plan (FY2021–2023) Capital Policy (Investment Plans, Financial Plan and Shareholder Returns) Stable, consistent shareholder returns with a targeted dividend payout ratio of roughly 30% and total shareholders return of 50% or more ●Trends of relevant indicators FY2022 FY2016
Slide 29: Reference Information
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Slide 30: Corporate Philosophy / Company Profile
4 Corporate Philosophy / Company Profile Corporate Philosophy An infrastructure building company that helps create affluent communities Company name SEIKITOKYU KOGYO CO., LTD. Established January 16, 1950 Head office location 3-13-16 Mita, Minato-ku, Tokyo Representative Yoshikazu Taira, Director, P
Slide 31: Main Offices, Laboratories, Consolidated Subsidiaries, etc.
4 Main Offices, Laboratories, Consolidated Subsidiaries, etc. Business offices, etc. 53 sites Material plants, etc. 49 sites Hokkaido ・Hokkaido Branch Technology research Tochigi Pref. laboratory Testing laboratories 8 sites Equipment center Tochigi Prefecture Iwate Branch Office Training center Toc
Slide 32: Our Technologies
4 Our Technologies CRACK REPAIR Mible-eco (generic term: foamed asphalt mixture) CRACK REPAIR is an ultra-low viscosity polyurethane-based Asphalt and aggregate can be mixed easily with an additive to repairing material that can be flown naturally and injected into foam fine bubbles in asphalt, whic
Slide 33: Consolidated Performance Indicators, etc.
4 Consolidated Performance Indicators, etc. Business term 57th 58th 59th 60th 61st 62nd 63rd 64th 65th 66th 67th 68th 69th 70th 71st 72nd 73rd Fiscal year FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Net sales (Millions of yen
Slide 34: Forward-looking statements and contact
This material contains financial results forecasts, projections, and other forward-looking statements, which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors including changes in future business environment may caus