Infroneer Holdings Inc. · TSE:5076
Infroneer — FY2021 Earnings Presentation
45 slides from Infroneer's earnings presentation, May 13, 2022
Slide 1: FY2021 Full-Year Financial Presentation
FY2021 Full-Year Financial Presentation INFRONEER Holdings May 13, 2022
Slide 2: Full-Year Financial Presentation Contents
Full-Year Financial Presentation Contents 1. Points Appendix 2. FY21 Results and FY22 Forecast 1. [Non-Consolidated]Maeda Corporation Results and Full-Year Forecasts 2. [Consolidated] Maeda Road Results and Full-Year Forecasts 3. Compare Medium-term Vision with FY22 Forecast 3. [Consolidated] Maeda
Slide 3: 1. Points (Results)
1．Points (Results) ①FY21 Results (P.4, P.7, P.12) • Maeda Corp. and Maeda Seisakusho both achieved full-year forecast, but Maeda Road fell short of forecast due to soaring crude oil price. • FY21 net income reached a record high due to the promotion of the sale of strategic shareholdings (ratio to M
Slide 4: 1. Points (Return Policies for shareholders, Cap Table, M&A, DX)
1．Points (Return Policies for shareholders, Cap Table, M&A, DX) ③Return Policies for shareholders（P.12） • Annual dividends per share is 40 JPY（Dividend payout ratio : 42.2％） • We completed 20.0 billion share buy-back (November 16th 2021 to April 13th 2022 ) • Total payout ratio is 111.2％ (Dividend p
Slide 5: 2. FY21 Results and FY22 Forecast
2． FY21 Results and FY22 Forecast • Net sales, operating profit and ordinary profit in FY21 did not reach the targets due to delay in progress of construction work and the impact of soaring crude oil prices, etc. • FY21 net income reached a record high due to the promotion of the sale of strategic s
Slide 6: 3. Compare Medium-term Vision with FY22 Forecast
３．Compare Medium-term Vision with FY22 Forecast • FY22 forecast exceed the first year’s target of the Medium-term Vision 2024. Medium-term Vision（disclosed on 1st October 2021） FY22 Forecast FY22 Target 32.4 42.6 +8.3= +8.3= 40.7 50.9 （8.3） . ※Net income and operating profit are based on IFRS (excep
Slide 7: 4. Transition of Results and Forecast
4． Transition of Results and Forecast • Net income at FY21 reached record high (ratio to Maeda Corp. ［Consolidated］■ : FY21). • Operating profit decreased, but the added value* was the flat excluding special factors in the civil engineering segment in FY20, and it is expected to increase further in
Slide 8: 5. Each company's FY21 Results and FY22 Forecast
5． Each company’s FY21 Results and FY22 Forecast （Billions of Yen) FY21 Results（Profit margin） FY22 Forecast（Profit margin） We expected to achieve targets in the first Net income reached a record high. year of the Medium-term Vision. INFRONEER Net sales ：682.9 Holdings Net sales ：730.6 Operating pro
Slide 9: 6. FY21 Results and FY22 Forecast by segment
6． FY21 Results and FY22 Forecast by segment Forecast after FY22 (P.9-11, P.13-28) • Building Construction and Civil Engineering segments are expected to continue to perform steadily after FY22 with a record high amount of backlogs and a high profit margin of orders (over 8%). • In FY21, sold off tw
Slide 10: 6. FY21 Results and FY22 Forecast by segment
6．FY21 Results and FY22 Forecast by segment （Billions of Yen) FY20 FY21 FY22 YoY +/- +/- (1)Results (2)Forecast (at 2Q） (3)Results (4)Forecast (2)-(1) (3)-(2) (4)-(3) Net sales 678.1 710.0 682.9 4.8 △27.1 730.6 47.7 Building Construction 245.3 227.2 216.1 △29.2 △11.1 238.3 22.2 Civil Engineering 149
Slide 11: 7. Transition of Contract Backlogs
7．Transition of Contract Backlogs (Building Construction and Civil Engineering) (Maeda Corp. Non-Consolidated) • Contract backlogs will be record high. • Profit margin of orders increased steadily due to secure profit at early phase of the projects. • Achieved FY21 target of profit margin of orders
Slide 12: 8. Forecast of Backlogs, Orders and Net Sales
8．Forecast of Backlogs, Orders and Net Sales (Maeda Corp. Non-Consolidated) Building Construction • 167 billion yen of backlogs will be net sales at FY22. • Aim to achieve net sales of 280 billion yen at FY 24 with backlogs due to get orders continuously after FY22. Civil Engineering • 139 billion y
Slide 13: 9. Results and Forecast of Capital Strategies & Return Policies
9．Results and Forecast of Capital Strategies & Return Policies Shareholder returns • Annual dividends per share is 40 JPY（Dividend payout ratio : 42.2％） • Total payout ratio is 111.2％ (Dividend payout ratio : 42.2％＋Share buy-back 66.9％＋Dividends for the Earth 2.0％) Strategic shareholdings • Sold off
Slide 14: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 13
Slide 15: 1. Trends in Net sales and Gross Profit
Building Construction 1． Trends in Net sales and Gross Profit (Maeda Corp. Non-Consolidated) • FY21 Net sales, gross profit and margin exceeded FY21. • After FY22 We will be held with the client, depending on the situation, in order to avoid any impact on profits due to material price increase, etc.
Slide 16: 2. Orders Received and Profit Margin on Orders
Building Construction 2．Orders Received and Profit Margin on Orders (Maeda Corp. Non-Consolidated) • FY21 Orders and profit margin on orders achieved the forecast of the beginning of fiscal year. Profit margin on orders achieved record levels by 8.0%. • After FY22 Secured sales information with a hi
Slide 17: 3. Types of Orders received
Building Construction 3．Types of Orders received (Maeda Corp. Non-Consolidated) • FY21 The ratio of ‘Factories and power plants, warehouses and logistics facilities’ increase due to the orders for biomass power plants and logistics facilities. The ratio of ‘Educational and cultural facilities’ incre
Slide 18: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 17
Slide 19: 4. Trends in Construction Revenue and Construction Profit
Civil Engineering 4．Trends in Construction Revenue and Construction Profit (Maeda Corp. Non-Consolidated) • FY21 Domestic net sales and gross profit decreased against FY20, due to a few of large-scale projects and affection of temporary suspension of construction. Overseas gross profit increased due
Slide 20: 5. Orders Received and Profit Margin on Orders
Civil Engineering 5． Orders Received and Profit Margin on Orders (Maeda Corp. Non-Consolidated) • FY21 Both orders received and profit margin on orders received achieved the forecast of the beginning of fiscal year • After FY22 Continue bidding with profitability. Aim to achieve higher profit margin
Slide 21: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 20
Slide 22: 6. Contribution to Consolidated profits
Infrastructure Operations 6．Contribution to Consolidated profits • Gains were recorded on the sale of two solar power projects in FY21. • We expect operating profit to reach a record high due to sale of a wind power project. • In April 2022, the Osaka Industrial Water Concession, first concession pr
Slide 23: 7. Renewable Energy Projects
Infrastructure Operations 7． Renewable Energy Projects FIT Total Project Costs Projects Locations AC Status Prices (Billions of Yen) Tsukuba City, 2013/3 Ibaraki Pref. 2 MW 40JPY Approx. 0.6 Completed Ofunato City, 2022/3 Iwate Pref. 18 MW 40JPY Approx. 6.4 Sold Kitaibaraki City, 2016/3 Solar Power
Slide 24: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 23
Slide 25: 8. Construction business: Orders, Construction revenue and profit
Road Paving 8． Construction business : Orders, Construction revenue and profit • FY21 Orders received from public decreased by 8.2 billion from FY20. Orders for small projects remained flat, but the profit margin deteriorated due to an increase in low-margin projects to secure orders and difficult n
Slide 26: 9. Manufacturing and sales Business: Net Sales and Gross Profit
Road Paving 9．Manufacturing and sales Business: Net Sales and Gross Profit • FY21 Significant decrease in profits due to high price of crude oil despite sales price increases. • After FY22 We continue to promote sales price adjustments and improve profitability by improvement in operation rate of tr
Slide 27: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Operations Road Machinery Others Paving 26
Slide 28: 10. Net Sales and Gross Profit
Machinery 10．Net Sales and Gross Profit • FY22 Sales of new and used construction machinery, and sales of Spider crane are steady growth. • After FY22 By expanding the range of battery-powered cranes, we expect demand to increase, especially in Europe. Industrial machinery products are steady growth
Slide 29: Appendix
Appendix 28
Slide 30: 1. [Non-Consolidated] Maeda Corporation Results and Full-Year Forecasts
Maeda Corp. １．[Non-Consolidated]Maeda Corporation Results and Full-Year Forecasts (Billions of yen) FY20 FY21 FY22 (2)Forecast YoY +/- +/- (1)Results (3)Results (4)Forecast (at 2Q） (2)-(1) (3)-(2) (4)-(3) Net Sales 366.1 386.0 365.8 △0.3 △20.2 402.5 36.7 Total 214.4 226.4 216.8 2.4 △9.6 238.5 21.7 B
Slide 31: 2. [Consolidated] Maeda Road Results and Full-Year Forecasts
Maeda Road ２．[Consolidated] Maeda Road Results and Full-Year Forecasts (Billions of yen) FY20 FY21 FY22 （億円） (2)Forecast YoY +/- +/- (1)Results Results Forecast (at 2Q） (2)-(1) (3)-(2) (4)-(3) Net Sales 234.6 240.0 235.6 1.0 △4.4 243.0 7.4 Construction business 160.5 163.7 162.1 1.6 △1.6 166.0 3.9 P
Slide 32: 3. [Consolidated] Maeda Seisakusho Results and Full-Year Forecasts
Maeda Seisakusho ３．[Consolidated] Maeda Seisakusho Results and Full-Year Forecasts (Billions of yen) FY20 FY21 FY22 (2)Forecast YoY +/- +/- (1)Results Results Forecast (at 2Q） (2)-(1) (3)-(2) (4)-(3) Net Sales 33.5 35.7 37.1 3.6 1.4 37.2 0.1 Construction machinery 22.4 21.7 23.8 1.4 2.1 21.9 △1.9 In
Slide 33: 4. INFRONEER Group's Financial Results and Forecast
４．INFRONEER Group’s Financial Results and Forecast （Millions of Yen） FBS Fujimi Koken JM Consolidated Subsidiaries FY22 FY22 FY22 FY20 FY21 FY20 FY21 FY20 FY21 Forecast Forecast Forecast Net sales 23,014 20,979 21,382 7,317 7,383 8,700 19,794 21,005 21,000 Operating profit 995 1,043 986 310 281 170
Slide 34: 5. Dividends for the Earth
Re-posting of FY21 3Q material 5．Dividends for the Earth INFRONEER HD has taken over the system 「Dividends for the Earth」 that Maeda Corp. has been working on since 2010, then promote activities that actively involve employees and their families in cooperation with local communities and NPOs. Subjec
Slide 35: 6. Segments
Re-posting of FY21 3Q material 6．Segments • Segments of INFRONEER Holdings and Maeda Corporation will be changed. • There will be no major changes in results due to the change in segments. NEW Segment of INFRONEER Holdings FORMER Segment of Maeda Corporation MK Building Construction Building MK Buil
Slide 36: 7. Business Model of Infrastructure Operations
Re-posting of FY21 3Q material 7．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 →Cons
Slide 37: 8. Contributions of infrastructure operation segment to the consolidated profit
Re-posting of FY21 3Q material 8．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 "consolida
Slide 38: 9. Topics – Focusing on Winning Contracts for Major Multipurpose Building Projects
Building Construction ９． Topics – Focusing on Winning Contracts for Major Multipurpose Building Projects （Tentative）Fukuoka East General Government Building Site Office Building for New Construction Takahama Clean Centre for New Construction In the area around Hakata Station where further developmen
Slide 39: 10. Topics – Contribute to National Resilience Plan
Civil Engineering 10．Topics – Contribute to National Resilience Plan Ohno Aburasaka Road Ohtani Tunnel Construction Toda City rainwater storage pipe construction To Fukui Tunnel To Gujo Flooding near Toda Station The Ono-Aburasaka Road runs from Higashi-Ichibu to A large-scale project by Toda City t
Slide 40: 11. Topics – Introduction of Ozu Biomass Power Plant
Infrastructure Operations 11．Topicsー Introduction of Ozu Biomass Power Plant • Ozu Biomass Power Plant generates electricity using wood pellets imported from overseas as fuel. • Maeda Corp, JAPEX, Yonden Business and SHINKO DENSO invest in and promote this project. • Infrastructure Operation departm
Slide 41: 12. Topics – Start of Osaka City Industrial Water Concession since April 2022
Infrastructure Operations 12． TopicsーStart of Osaka City Industrial Water Concession since April 2022 • Establish the ‘Model of Osaka City Industrial Water’ and spread throughout Japan First concession business including operation and maintenance of pipelines First industrial water supply busine
Slide 42: 13. Topics – Fuchu City Comprehensive Road Management Project
Road Paving 13． Topics – Fuchu City Comprehensive Road Management Project • Outline • Daily operations Contract Period April 2021 to March 2024（3 years） Call center (citywide), general management, patrol, maintenance, repair (less than ¥500,000), accident and Business disaster response, consultation
Slide 43: 14. Topics – Introducing attractive products to the market
Machinery 14．Topics – Introducing attractive products to the market Aiming for carbon neutrality ≪Expanded line-up of battery-powered cranes≫ Battery-powered spider cranes launched from small models MCシリーズ CCシリーズ Zero Emissions Ecological, Economical and Efficient work by High-performance lithium-io
Slide 44: 15. Topics – Further expansion of business areas
Machinery 15．Topics – 'Further expansion of business areas' Initiatives to expand the market≪Construction of the new sales network in NA≫ Establishment of local subsidiaries “MAEDA AMERICA Inc.” October 2022 starts of business 【Overview】 Name ：MAEDA AMERICA Inc. Capital : 100 million yen Location ：H
Slide 45: 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,