Infroneer Holdings Inc. · TSE:5076
Infroneer — Q1 FY2023 Earnings Presentation
48 slides from Infroneer's earnings presentation, Aug 9, 2023
Slide 1: FY2023 1st Quarter Financial Presentation
INFRONEER Holdings FY2023 1st Quarter Financial Presentation Aug 9, 2023
Slide 2: FY2023 1Q Financial Presentation Contents
FY2023 1Q Financial Presentation Contents 1. Points 10． Infrastructure Management : Major our infrastructure operations 2. Transition of Results and Forecast in Japan 3. Summary of Financial Results 11． Road Civil Engineering :Net Sales, and Gross Profit (MAEDA ROAD 4. Segment Net Sales and Gross Pr
Slide 3: Points
1．Points ① Summary of financial FY23 1Q results（P.4-7） • FY23 1Q results, Net sales and Gross profits increased significantly year-on-year excluding the gain on the sale of the renewable energy projects of FY22 1Q. • The full-year plan is expected to progress steadily. ② FY23 1Q Results and FY23 Pla
Slide 4: Points (Machinery, Shareholder Returns, Toshiba Investment)
１．Points Machinery Segment （P.30-32） • In FY23 1Q, Net sales and Gross profits increased year-on-year due to strong sales of Industrial machinery (Spider crane) , and revision of sales prices, etc. • Full-year results are expected to achieve the FY23 plan as well, based on the current order situatio
Slide 5: Transition of Results and Forecast
２．Transition of Results and Forecast • Each segment is progressing well, and we expect to achieve our full-year plan. • We expect operating profit and added value to exceed the previous year (with added value expected to reach a record high). Operating profit Net income (Billions of Yen) (Billions o
Slide 6: Summary of Financial Results
３． Summary of Financial Results • FY23 1Q results, excluding the gain from the sale of the renewable energy projects in FY22 1Q, demonstrated a year-on-year increase in both sales and income. This growth was due to the successful completion of major projects and the acquisition of design changes. •
Slide 7: Segment Net Sales and Gross Profit
４．Segment Net Sales and Gross Profit ※ （Billions of Yen） FY22 FY23 FY22 FY23【forecast】 FY23【Forecast】 YoY Progress YoY YoY 1QResult 1QResult Result JGAAP IFRS※ Net sales 149.6 160.4 10.8 21.7% 709.6 740.0 30.4 Net sales 745.0 35.4 Building Construction 39.5 48.6 9.1 20.3% 215.5 239.0 23.5 Building C
Slide 8: 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) • Construction work on hand as of 1Q and planned at the end of the fiscal year is the highest ever. • The construction order margin is expected to recover from 2Q onwards. • We will conti
Slide 9: Strategies & Return Policies / Capital
６． Strategies & Return Policies / FY23 1Q Results and Forecast of Capital Shareholder returns • Following the acquisition of JPY 30 billion yen of treasury stock in FY21 and FY22, additional acquisition of treasury stock of JPY 10 billion yen is planned to be acquired in FY23(Announced on May 11, 20
Slide 10: Main Factors for Increase/Decrease in the Consolidated Balance Sheet
7．Main Factors for Increase/Decrease in the Consolidated Balance Sheet Assets Liabilities and Net assets （Billions of Yen） （Billions of Yen） 926.6 ー 10.2 916.4 926.6 ー 10.2 916.4 (821.4) ※1 (ー 8.7) (812.8) ※1 + 13.3 ▲ 26.8 Short-term loans payable ＋16.0 Major Factor Long-term loans ※2 payable ▲ 2.6
Slide 11: Main Factors for Increase/Decrease in G&A
8．Main Factors for Increase/Decrease in G&A Personnel expenses • Increase due to introduction of new personnel system and regular salary increases. R&D costs • Increase in new development themes such as in the area of de-contracting, and research cost on comprehensive road management work. （Billions
Slide 12: Capital Strategies and Share Price Performance
9．Capital Strategies and Share Price Performance • Following the announcement of the FY22 financial statement, the share price has surpassed the record since the listing on the stock exchange market • We will continue to perform capital-efficiency oriented management by constantly executing our capi
Slide 13: INFRONEER Group Employee Stock Ownership Plan
10．INFRONEER Group Employee Stock Ownership Plan • We will apply Employee Stock Ownership Plan (“J-ESOP”) which distributes INFRONEER Holdings’ stocks to all INFRONEER Holdings’ and the Group companies’ employees subject to certain criteria. • The purpose of this program is to foster connections bet
Slide 14: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 13
Slide 15: Net Sales and Gross Profit (Maeda Corp. Non-Consolidated)
Include real estate business Building Construction 建築 １．Net Sales, and Gross Profit ( Maeda Corp. Non-Consolidated ) • FY23 1Q Both Net sales and Gross profit increased due to an increase in the volume of work in hand at the beginning of the fiscal year, compared to the last two years . • FY23 FY Ma
Slide 16: 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. Non-Consolidated ) • FY23 1Q Increase in order intake in 1st quarter due to orders for major projects, including redevelopment projects . We expect to secure orders for large pr
Slide 17: Types of Orders Received
Include real estate business Building Construction ３．Types of Orders Received ( Maeda Corp. Non-Consolidated ) • FY23 FY We expect an increase in the share of “Offices, Governmental Buildings" due to large office projects. We are also focused on securing orders for large-scale logistics facilities a
Slide 18: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 17
Slide 19: Net Sales and Gross Profit (Civil Engineering)
Including real estate sector Civil Engineering 4．Net Sales and Gross Profit (Maeda Corp Non-Consolidated Domestic) • FY23 1Q Increase in net sales and gross profit due to the steady execution of the large-scale construction projects backlogged at the beginning of the year and the new contracts, as w
Slide 20: Orders Received and Profit Margin on Orders Received
Including real estate sector Civil Engineering 5．Orders Received and Profit Margin on Orders Received (Maeda Corp Non-Consolidated) • FY23 1Q Steadily receiving orders from both public and private sectors according to our plan. Profit margin of the orders remain high. • FY23 FY We expect to achieve
Slide 21: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 20
Slide 22: Contribution to Consolidated Profits
Infrastructure Management 6．Contribution to Consolidated Profits • One renewable energy project is being considered for sale in FY23, and the expected full-year amount increase from FY22 • Operation of Miura City Public Sewerage Concession started in April in FY23 • Full-year profit contribution is
Slide 23: Policy Trends: PPP/PFI Promotion Action Plan (Revised 2023)
Infrastructure Management インフラ運営 7-1．Policy Trends：PPP/PFI Promote Action Plan（Revised 2023）was released by the Cabinet Office • Kishida Cabinet positions PPP/PFI as the core of new capitalism and announces new “Action plan”. • The Action Plan sets project size targets, priority areas, and an action
Slide 24: Water PPP
Infrastructure Management インフラ運営 7-2．Water PPP For water supply, industrial water supply, and sewage system, in the 10 years of the PPP/PFI Promotion Action Plan period (2022- 2031),PPP/PFI method (management and renewal integrated system) for phased transition to concession will be introduced and
Slide 25: Our Approach to Strategic Infrastructure Management
Infrastructure Management インフラ運営 8．Our Approach to Strategic Infrastructure Management • In order to solve social issues infrastructure business are facing such as deterioration, financial downturn, and shortage of qualified personnel, we will use advanced technology to improve the sustainability of
Slide 26: Initiatives Achievements of PPP due to Transition to HD Structure
Re-posting of FY22 4Q material Infrastructure Management 9．Initiatives Achievements of PPP due to Transition to HD Structure • After the launch of HD, Maeda Corp., Maeda Road, MAEDA SEISAKUSHO,JM, and FBS have established a system to promote sales in areas across the country in an integrated manner
Slide 27: Major Our Infrastructure Operations in Japan
Infrastructure Management 10．Major our infrastructure operations in Japan Solid track record in a variety of infrastructure services POINT Through comprehensive private contracting, we attempt to eliminate inefficiencies caused by the stove-piped structure of municipalities and implement efficie
Slide 28: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 27
Slide 29: Net Sales and Gross Profit (MAEDA ROAD Consolidated)
Road Civil Engineering 11．Net Sales, and Gross Profit (MAEDA ROAD Consolidated) • FY23 1Q Year-on-year increase in both Net sales and Gross profit due to progress in passing on higher material costs to the quoted prices, securing of handled construction projects. • FY23 FY Continue to improve profit
Slide 30: Orders Received, Net Sales and Gross Profit (Construction Business)
Road Civil Engineering 12．Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated Construction business) • FY23 1Q Net sales and Gross profit increased year-on-year due to progress in passing on higher material costs to the quoted prices, which was done in the previous year. • FY23 FY
Slide 31: Net Sales and Gross Profit (Manufacturing and Sales Business)
Road Civil Engineering 13．Net Sales and Gross Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business) • FY23 1Q Net sales and Gross profit increased year-on-year due to progress in passing on higher manufacturing costs on to prices • FY23 FY Pay attention to trends in crude oil, exchange r
Slide 32: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 31
Slide 33: Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)
Machinery 14．Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated) • FY23 1Q Net sales and Gross profits increased year-on-year due to strong sales of Industrial machinery, and revision of sales prices, etc. • FY23 FY Both Net sales and Gross profit are expected to achieve the full-year plan. 1
Slide 34: Net Sales and Gross Profit MAEDA SEISAKUSHO by Business
Machinery 15．Net Sales and Gross Profit※1 MAEDA SEISAKUSHO (Consolidated) • FY23 1Q Industrial machinery (Spider crane) are steady growth, Net sales and Gross profit in the industrial machinery and steel products are increased year-on-year. Also, Gross profit margin also improved due to revision of
Slide 35: Appendix
Appendix 34
Slide 36: IFRS Transition Schedule and Major Changes
１．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 of 4Q results. (Billions of y
Slide 37: Maeda Corp. FY23 1Q Results and Full-Year Forecast
Maeda Corp. ２. [Non-Consolidated] Maeda Corp. FY23 1Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 1Q Results FY23 1Q Results FY23 Forecast YoY Progress (JGAAP) (JGAAP) （JGAAP） Net Sales 77.6 84.0 6.4 401.7 20.9% Total 39.4 48.7 9.3 238.5 20.4% Bulding Domestic 39.4 48.7 9.3 235.0 20.7
Slide 38: MAEDA ROAD FY23 1Q Results and Full-Year Forecast
MAEDA ROAD ３. [Consolidated] MAEDA ROAD FY23 1Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 1Q Results FY23 1Q Results FY23 Forecast YoY Progress (JGAAP) (JGAAP) (JGAPP) Net sales 51.6 56.6 5.1 246.8 22.9% Construction Business 35.3 39.3 4.0 166.0 23.7% Manufacturing and Sales Busines
Slide 39: MAEDA SEISAKUSHO FY23 1Q Results and Full-Year Forecast
MAEDA SEISAKUSHO ４． [Consolidated] MAEDA SEISAKUSHO FY23 1Q Results and FY23 Full-Year Forecast (Billions of Yen) FY22 1Q Results FY23 1Q Results FY23 Forecast YoY Progress (JGAAP) (JGAAP) (JGAPP) Net sales 8.5 9.0 0.5 40.0 22.5% Construction Machinery 5.3 5.0 △ 0.3 22.9 21.9% Industrial Machinery a
Slide 40: INFRONEER Group's Subsidiaries FY23 1Q Results and Forecast
５．INFRONEER Group’s FY23 1Q Results and FY23 Full-Year Forecast (Millions of Yen) FBS Fujimi Koken JM Consolidated FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 subsidiaries 1Q 1Q 1Q 1Q 1Q 1Q Forecast Forecast Forecast Results Results Results Results Results Results Net sales 4,156 3,012 18,080 2,088
Slide 41: Segments
６．Segments Segment of INFRONEER Holdings（JGAAP） Building MK Building Construction Construction MK Real Estate (Building Construction) MK Civil Engineering Civil Engineering MK Real Estate (Civil Engineering) Road Civil Engineering MD (Consolidated) Machinery MS (Consolidated) MK Infrastructure Opera
Slide 42: Establishment of New Business Platform of Infrastructure Operations
Re-posting of FY22 4Q material Infrastructure Management Infrastructure Operations 7．Establishment of New Business Platform of Infrastructure Operations • We built a new business platform including two types of infrastructure funds, the Asset Creation Fund Series(“ACF”) and the Income Fund Series (“
Slide 43: Business Model of Infrastructure Operations
Re-posting of FY22 4Q material Infrastructure Management 8．Business Model of Infrastructure Operations • 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!!
Slide 44: Investment Case No. 1 of Income Fund (ICF)
Re-posting of FY22 4Q material Infrastructure Management Infrastructure Operations ９． Investment Case No. 1 of Income Fund（ICF） • Global Infrastructure Management and SMFL MIRAI Partners Company, Limited formed Income Fund (ICF), an infrastructure fund that invests in infrastructure projects, etc. i
Slide 45: Difference between Contribution to Profit and Segment Profit
Re-posting of FY22 4Q material Infrastructure Management インフラ運営 10．Difference between with “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 operatin
Slide 46: Selected as an Excellent Integrated Report by GPIF Asset Managers
Re-posting of FY22 4Q material 11．Selected as an “Excellent Integrated Reports” by the GPIF’s Asset Managers Entrusted with Domestic Equity Investment. We were selected by the GPIF’s (Government Pension Investment Fund) Asset Managers Entrusted with Domestic Equity Investment as an “Excellent Integr
Slide 47: News: YouTube, Social Media, Kibe-log
News１ It was introduced again on the YouTube channel "Mariko Mabuchi’s Stock Club" in November last year!! Socially responsible investment! Why focus on PPP and PFI? -INFRONEER initiatives explained- The four participants discussed the future of the infrastructure investment market, including our in
Slide 48: 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,