Tokyu Construction Co., Ltd. · TSE:1720
Tokyu Construction — H1 FY03/2026 Earnings Presentation
48 slides from Tokyu Construction's earnings presentation, Nov 20, 2025
Slide 1: FY03/2026 The First Half Financial Results Briefing
TSE：1720 FY03/2026 The First Half Financial Results Briefing November 20, 2025
Slide 2: Key points to communicate today
Key points to communicate today • Improvement in profitability of the domestic construction business and upward revision of the earnings forecast Due to the improvement in profitability of the domestic construction business, gross profit in First Half FY03/2026 exceeded the initial forecast, leading
Slide 3: The First Half Results and Full-year Forecast
FY03/2026 The First Half Results and Full-year Forecast The First Half FY03/2026 Financial Results Briefing
Slide 4: First Half FY03/2026 Financial Highlights
First Half FY03/2026 Financial Highlights • Demand remained strong, the industry's backlog of construction volume reached high External levels, and the competitive environment improved. environment • The prices of materials and equipment have remained high, while the increase in labor costs was with
Slide 5: First Half FY03/2026 Financial Results
First Half FY03/2026 Financial Results Net sales increased due to progress in large-scale private building construction projects and public civil engineering projects for non-consolidated construction orders. The profitability of the ongoing construction projects improved due to the acquisition of a
Slide 6: Factors Affecting Net Income
Factors Affecting Net Income Due to the improvement in the profitability of ongoing construction projects, the completed construction gross profit increased significantly, and non-operating expenses such as foreign exchange loss decreased. Although SG&A increased due to continuous investment in huma
Slide 7: FY03/2026 Financial Forecast Highlights
FY03/2026 Financial Forecast Highlights Order volume is progressing as planned. Operating profit showed improved profitability in both building construction and civil engineering, leading to an upward revision from the beginning of period forecast of 9.5 billion yen. Ensure the consistent implementa
Slide 8: FY03/2026 Financial Results Forecast
FY03/2026 Financial Results Forecast Net sales increased due to progress in large-scale projects primarily in building construction, and there was an increase in profit due to improved profitability of the ongoing projects in both building construction and civil engineering. (On November 7, 2025, an
Slide 9: Non-Consolidated / Building construction (Completed construction sales・Gross profit)
Non-Consolidated ／ Building construction（Completed construction sales・Completed construction gross profit） For 1H of FY03/2026, completed construction sales increased due to the progress of large private projects ordered in previous years. For the full year, it is expected to progress as planned fro
Slide 10: Non-Consolidated / Building construction (Orders)
Non-Consolidated ／ Building construction（Orders） For 1H of FY03/2026, orders proceeded as planned. Our company has been awarded the contract for the Shibuya Scramble Square Phase II construction (category: Tokyu Gruop). Amid strong demand, we steadily secured key projects and forecast 240 billion ye
Slide 11: Non-Consolidated / Civil engineering (Completed construction sales・Gross profit)
Non-Consolidated ／ Civil engineering（Completed construction sales・Completed construction gross profit） For 1 H of FY0 3 /2 0 2 6 com plet e d constru c ti o n sales saw a significan t increase in dom esti c public project s , and for the full year, sales are projec te d to be 7 0 .0 billion yen due
Slide 12: Non-Consolidated / Civil engineering (Orders)
Non-Consolidated ／ Civil engineering（Orders） Railway construction is increasing, and in connection with development along railway lines, we have received a civil engineering contract in front of Saginuma Station. By accumulating orders for targeted public projects, we forecast 64.0 billion yen for t
Slide 13: Non-Consolidated Order Forecast
Non-Consolidated Order Forecast The public sector in building construction and the private sector in civil engineering are exceeding the assumptions made at the beginning of the period. Considering the construction resources, there are no changes from the beginning of period forecast overall. FY03/2
Slide 14: Construction Renewal
Construction Renewal For 1H of FY03/2026, the results showed lower revenue due to fewer short-term projects than anticipated, leading to a profit decline. The demand for construction renewal is firm, and efforts are being made to secure orders for highly productive projects. • Investment enthusiasm
Slide 15: International
International We focus our business on construction projects related to official development assistance (ODA) in Southeast and South Asia, particularly in our area of expertise, transportation infrastructure. Strive to expand the business area to both upstream and downstream of the value chain by pa
Slide 16: Real estate
Real estate Targeting environment-conscious customers, provide environmentally friendly properties with added value, such as leasing, development, and renewal of old properties by leveraging synergy with construction business. Increase capital efficiency through cyclical real estate business using r
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets The equity ratio was at 39.3％, increase of 2.2 percentage points compared with March 31, 2025. D/E ratio was 0.22 times due to a decrease in borrowings. Increase/decrease factors As of March As of September YoY − Current assets （Millions of yen） 31, 2025 30, 2025 • Cash a
Slide 18: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows The ending balance of cash and cash equivalents maintained the same level as the same period of the previous year, despite cash outflows due to the acquisition of fixed assets and the repayment of short-term borrowings, thanks to a decrease in accounts receivabl
Slide 19: Shareholder returns
Shareholder returns The annual dividends are planned to be 39 yen per share, continuing the basic policy of an equity dividends yield (DOE) of 4.0% or more, recognizing the importance of capital efficiency and emphasizing stable and continuous profit returns to shareholders. Dividend per share （yen）
Slide 20: Rebuilding of our earning capacity (Problem-solving skills)
Rebuilding of our earning capacity (Problem-solving skills ) Due to the quality incident in 2021, the first year of the long-term management plan resulted in an operating deficit. We are committed to quickly restoring performance. Since FY2023, we have focused on restructuring our earning capacity t
Slide 21: Efforts to Prevent Recurrence of Quality Problems
Effor ts to Prevent Recurrence of Quality Problems, Improve Constructi on Quality, and Restore Trust Regarding the past quality problems, we have reviewed the structure, system and organizational culture to prevent their recurrence thoroughly. Establishing a Culture Reform Awareness Center, strength
Slide 22: Initiatives for medium- to long-term growth
Initiatives for medium- to long-term growth The First Half FY03/2026 Financial Results Briefing
Slide 23: The situation around Shibuya Station
Acquisition of Market Oppor tuni ti es by Leveragi ng Our Strengt h Progress of urban development around Shibuya Station Constru c ti on for Shibuya Scram ble Square Phase II (Central Building and West Building) com m ence d in May 2 0 2 5 . Constru c ti on directly above the term inal station requi
Slide 24: Strengthening the brand of urban general contractors
Acquisiti on of Market Oppor tunit ies by Leveragi ng Our Strengt h Strengt heni ng the brand of urban general contractors Partici pat e in large redevelo p m en t plans such as "Shibuya S cram ble Square Phase II" and "Shibuya U pper West Projec t. " Achieve m edium -te rm stable revenue and gain i
Slide 25: Urban Development in Shibuya "Future potential"
Acquisition of Market Oppor tuni ti es by Leveragi ng Our Strengt h Urban Development in Shibuya“Fut ure potenti al ” We have executed difficult construction projects in Shibuya, leveraging our technology, expertise and teamwork. Shibuya has huge future potential with numerous redevelopment projects
Slide 26: Long-Term Management Plan "To zero, from zero."
Long-Term Management Plan “To zero, from zero.” （Rolling the plan in May 2025） We aim to enhance corporate value sustainably by setting three deliverable values as strategic pillars and positioning human resources and digital as sources of our competitive advantages. Three deliverable values Busines
Slide 27: Initiatives for medium- to long-term growth
Initiatives for medium- to long-term growth By thoroughly ensuring construction safety and quality and continuously working to improve productivity, we aim for higher revenue potential. We will further expand human capital investment and strategically strengthen our human resources capabilities to s
Slide 28: Recognition and improvement of current situation from a PBR perspective
Recognition and improvement of current situation from a PBR perspective We recognize the current PBR level as an issue, and we aim to maintain a PBR of 1 or more and further improve it by promoting ROIC management. We seek to continually create added value exceeding the cost of capital and aim to ma
Slide 29: Promotion of human capital management
Promotion of human capital management Expand human capital investment from 10.0 billion yen to 61.0 billion yen to drive the transformation of the business portfolio. Implement the management philosophy of "Maximize the potential of our human resources" to aim for the sustainable enhancement of corp
Slide 30: Appendix
【Appendix】 The First Half FY03/2026 Financial Results Briefing
Slide 31: Robust business foundation
Robust business foundation While promoting value creation through synergy pursuit with the Tokyu Group, including urban development in Shibuya, approximately 90% of net sales are derived from transactions with a diverse range of external clients, building a robust business foundation that does not o
Slide 32: Performance trends (Non-consolidated)
Performance trends(Non-consolidated) 300,000 Civil engineering・completed construction sales 20.0% Building construction・completed construction sales Civil engineering・profit margin ratio 250,000 Building construction・profit margin ratio 15.0% 14.1% 13.2% 11.6% 11.9% 11.4% 11.0% 9.9% 200,000 9.8% 9.9
Slide 33: Forecast (Previous / Revised)
Forecast(Previous /Revised) Consolidated Non-consolidated FY03/2026 FY03/2026 FY03/2026 FY03/2026 Change Change Prebious Forecast Revised Forecast Prebious Forecast Revised Forecast （Millions of yen） ％ Building ％ ％ ％ ＋1,000 construc ― ー ― ー 232,000 75.1 233,000 75.4 tion ＋0.4％ Completed Civil (1,000
Slide 34: Orders (Non-Consolidated / Classified by ordering party)
Orders（Non-C onsolid ated ／ Classif ied by ordering par ty） Second Quarter YoY Full-year Division Forecast FY03/2024 FY03/2025 FY03/2026 Difference Rate(%) （Millions of yen） Domestic public 25,178 27,557 12,119 ( 15,437) (56.0%) 36,000 Domestic private 71,473 59,572 110,091 50,519 84.8% 204,000 Buil
Slide 35: Orders (Non-Consolidated / Classified by use)
Orders（Non-C onsolid ated ／ Classif ied by use） Second Quarter YoY Division FY03/2024 FY03/2025 FY03/2026 Difference Rate(%) （Millions of yen） Office / Government office 2,460 9,241 8,861 (380) (4.1%) Accommodation 3,077 2,362 3,088 725 30.7% Retail shop 1,092 3,826 70,712 66,885 ー Factory / Power p
Slide 36: Recognition of cost of shareholders' equity and profitability
Recognition of cost of shareholders' equity and profitability The cost of shareholders' equity based on CAPM is recognized as 6-7%. (Calculated at the beginning of FY2025) It is recognized that a higher expected revenue rate is being demanded from investors. Promote improvement measures from short-t
Slide 37: Cash Allocation (FY2021 to FY2030)
Cash Allocation(FY2021 to FY2030) We will invest 183.0 billion yen by FY03/2031 as part of a growth investment to reform our business portfolio. Operating cash flows and proceeds from the sale of strategic shareholdings will be allocated to fund growth investments and maintain stable dividends, targ
Slide 38: Reduction of Low-Performing Assets (Strategic Shareholdings)
Reduc e Improv e RO E Reduction of Low-Performing Assets capital cos ts (Strategic Shareholdings) We will determine the appropriateness of holding based on capital efficiency and strategic significance (such as business synergy and securing stable revenue). Some assets were sold in 1H FY03/26 based
Slide 39: Reforming Business Portfolio and Expanding Human Resource Investment
Reduce capital Improv e RO E costs Reformi ng Business Por tfoli o and Expanding Human Resource Investment To achieve synergy with the construction business and secure stable revenue, we will grow our strategic businesses and transform the business portfolio for FY2030 to a 75% core business and 25%
Slide 40: Initiatives for Working Style Reform and Productivity Improvement
Reduc e Improv e RO E capital cos ts Initiatives for Working Style Reform and Productivity Improvement Realize a more productive and satisfactory working style, taking the overtime work cap restriction as an opportunity for change Continue to improve our construction technology and know-how, while u
Slide 41: Promotion of Human Capital Management (Instilling Philosophy and Vision)
Reduc e Improv e RO E capital cos ts Promotion of Human Capital Management (Instilling Philosophy and Vision) Vision Dialogue throughout the year, an opportunity for management and a small number of employees to communicate online (all employees are eligible) By sharing the Philosophy, Vision, and L
Slide 42: Urban development along the Tokyu line and in Shibuya: Progress and strengths
Reduce capital Acquisition of Market Opportunities by Leveraging Our Strength Improv e RO E costs Urban development along the Tokyu line and in Shibuya: Progress and strengths As a m em ber of the Tokyu Group, we have develope d a consum e r - o rie nt e d m indset with a strong focus on the com m u
Slide 43: Three values, Digital Technology
Reduce capital Improv e RO E costs Acquisition of Market Oppor tuni ti es by Leveragi ng Our Strengt h Three values, Digital Technol ogy Enhance our presenc e in the three strategi c ally im portan t areas where we provide value: decarb o niza ti o n, zero waste, and disaster preventi on and m itiga
Slide 44: Transformation to BIM-Driven Construction and Production Systems
Reduc e Improv e RO E Transformation to BIM-Driven capital cos ts Construction and Production Systems We are accelerating construction production system reform centered on BIM/CIM to provide solutions to a labor shortage and working time cap, etc. We strengthen training to improve the digital litera
Slide 45: Improve Dialogue with the Stock Market and Information Disclosure
Reduc e Improv e RO E Improve Dialogue with the Stock capital cos ts Market and Information Disclosure We strive to reduce any asymmetric information between the Company and investors through constructive dialogue with shareholders and investors, and active disclosure. We report opinions received th
Slide 46: Introduction to the Integrated Report
Introduction to the Integrated Report We published "Integrated Report 2025," which illustrates [FOCUS] Interview with Professor Yumiko Miwa our group's story of enhancing corporate value. Transforming Our Business for Future Growth“ https://www.tokyu-cnst.co.jp/en/ir/report/ An interview with Profes
Slide 47: Business model and business overview
Business model and business overview Undertake custom-order construction projects commissioned by public offices and private companies, completing them in collaboration with numerous specialized construction companies. Oversee and manage the construction process over a long term, ensuring safety, qu
Slide 48: Notes
[Inquiries] Nishida/Morita/Hashimoto Corporate Planning Department, Corporate Strategy Division TEL: +81-3-5466-5008 URL: webmaster@tokyu-cnst.co.jp Notes Forward-looking statements such as forecasts of the company’s results contained in this document are based on information available as of the dat
Tokyu Construction — H1 FY03/2026 Earnings Presentation on 6ix