Infroneer Holdings Inc. · TSE:5076
Infroneer — FY2022 Earnings Presentation
53 slides from Infroneer's earnings presentation, May 11, 2023
Slide 1: INFRONEER Holdings FY2022 Full-Year Financial Presentation
INFRONEER Holdings FY2022 Full-Year Financial Presentation May 11, 2023
Slide 2: Contents
FY2022 Full-Year Financial Presentation Contents 11．Infrastructure Management : Miura Public Sewerage (Eastern 1. Points Treatment District) Operation Project 2. Transition of Results and Forecast 12．Road Civil Engineering :Orders Received, Net Sales, and 3. Summary of Financial Results Gross Profit
Slide 3: Points
１．Points ① Summary of financial FY22 results（P.5-P.8） • In FY22, Net sales and Gross profits increased year-on-year. • Record Net income for the full year. (ratio to Maeda Corp.[consolidated]) ② FY22 Results and FY23 Forecast of each segments （P.14-37） Building Construction & Civil Engineering Segme
Slide 4: Points: Road Civil Engineering and Machinery
１． Points Road Civil Engineering Segment （P.29-33） • Result of FY22, Net sales and Gross profits increased year-on-year due to the completion of large projects, acquisition of design changes. • FY23 has started with the high profit level of the previous 4Q intact, with a significant increase in Gros
Slide 5: Points: Employee stock plan and TEKKON
１． Points ⑤ Stock benefits to group employee • Decided to introduce an incentive plan, “Employee Stock Ownership Plan (J-ESOP)” .(Announced on May 11, 2023) In addition to foster a sense of Group unity, and to motivate employees and improve the stock price and the Group performance, payment of our s
Slide 6: Transition of Results and Forecast
２．Transition of Results and Forecast • Net profit for the current period is at its highest level ever. • Operating profit and Added value are expected to exceed year-on-year. Operating profit Net income (Billions of Yen) (Billions of Yen) Operating profit Operating margin 60.0 Net income Net income
Slide 7: Summary of Financial Results
３． Summary of Financial Results • FY22 results show an increase Net sales and Gross profit compared to FY21 due to the completion of large projects, acquiring further design changes, sale of the windfarms projects. • From the FY23 full-year plan, IFRS will be applied and Net sales and Gross profit a
Slide 8: Segment Net Sales and Gross Profit
４．Segment Net Sales and Gross Profit ※ （Billions of Yen） FY21 FY22 FY23 ①Results ②Revised ③Results +/-(③－①) +/-(③-②) ④Forecast (IFRS) +/-(④-③) Net sales 682.9 705.0 709.6 26.7 4.6 Net sales 745.0 35.4 Building Construction 216.1 228.4 215.5 -0.6 -12.9 Building Construction 220.5 5.0 Civil Engineerin
Slide 9: Transition of Contract Backlogs
５．Transition of Contract Backlogs (Building Construction and Civil Engineering) • Expect record-high contract backlogs in the building construction segment, and high profit margins on orders. • Decreased contract backlogs in the civil engineering segment, but secured high profit margins on orders. •
Slide 10: Strategies & Return Policies / FY22 Results and Forecast of Capital
６． Strategies & Return Policies / FY22 Results and Forecast of Capital Shareholder returns • 10 billion yen acquired in FY22 (Announced on March 7, 2022). Additional acquisition of treasury stock of JPY 10 billion yen will be acquired in FY23. Cross-shareholdings • Completion of sales of over 20 bil
Slide 11: Sales of Cross-Shareholdings
７．Sales of Cross-Shareholdings • Completion JPY21.36 billion yen in FY22, achieving the target sale pf JPY 20 billion yen • At the end of FY22, the retention rate was 19.8%, achieving the 20% or less target at the beginning of the period. • Continued to focus on capital efficiency from FY23 onwards
Slide 12: Factors contributing to changes in the consolidated balance sheet
８．Factors contributing to changes in the consolidated balance sheet Assets Liabilities and Net assets （Billions of Yen） （Billions of Yen） 926.4 +0.1 926.6 (816.7)※1 (+4.3) (821.4) ※1 926.4 + 0.1 926.6 + 22.1 Liabilities ▲ 39.1 Decrease in Major Factor 154.4 Costs on with interest borrowings due to c
Slide 13: Major factor for increase/decrease in SG&A
９．Major factor for increase/decrease in SG＆A Entertainment expenses・ Transport and communication transport costs • The COVID-19 calms down, expenses increased due to a renewed increase in operating activity. Depreciation expense • Increase in depreciation expense due to aggressive investments in IT
Slide 14: Capital strategies and share price performance
10．Capital strategies and share price performance • ROE reached 10.3% at the end of FY22 due to the implementation of the capital strategy set out in the “INFRONEER medium term Vision 2024” (p. 9) and the upswing in performance. • We continued implementation of the capital strategy and achievement o
Slide 15: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 14
Slide 16: 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 ) • FY22 FY Both Gross profit and margin exceeded those of FY21. • After FY23 We expect increase in sales and profit due to increase in volume of large-scale construction projects start
Slide 17: 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 ) • FY22 FY Both orders received and profit margin of orders received achieved the plan at the beginning of the period. In particular, the profit margin of orde
Slide 18: Types of Orders Received
Building Construction ３．Types of Orders Received ( Maeda Corp. Non-Consolidated ) • FY22 FY “Condominium”, which received orders for multiple redevelopment projects, and “Commercial Buildings/ Factory/Warehouse” applications drove overall orders. • After FY23 Ratio of “Offices, Government Buildings”
Slide 19: Strengthening orders for large-scale redevelopment and ZEB projects
建築 Building Construction ４. Topics: Strengthening orders for large-scale redevelopment projects and ZEB conversion building projects Construction of new facility building associated with the Tentative name : Arisawa Mfg. Co., Ltd. Urban Redevelopment Project Type 1 in the Minami Takasago New innovat
Slide 20: Strengthening government construction initiatives
建築 Building Construction ４. Topic：Strengthening government construction initiatives by leveraging our technological capabilities and ability to make proposals Construction of Refuse Disposal Facility (Plant No. 6) Tado area integrated elementary and junior high school and Incidental Work development
Slide 21: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 20
Slide 22: Net Sales and Gross Profit (Civil Engineering)
Include real estate business Civil Engineering 5．Net Sales and Gross Profit ( Maeda Corp. Non-Consolidated ) • FY22 FY With the steady progress in large-scale construction projects, as well as the acquisition of design changes for completed projects, there was a year-on-year increase in both Net sal
Slide 23: Orders Received and Profit Margin of Orders Received
Include real estate business Civil Engineering 6．Orders Received and Profit Margin of Orders Received ( Maeda Corp. Non-Consolidated ) • FY22 FY Orders received have been impacted by a decline in private orders, but the profit margin on orders received has remained high. • After FY23 We will continu
Slide 24: Orders received for long-distance tunnels
Civil Engineering 7．Topics : “Orders received for long-distance tunnels which shouldering expectations of community” National Highway 5, Niki Town, Road improvement Niki construction work on the L side of the Shininaho Tunnel Tentative name :National Highway 473 Tsuki Tunnel Tentative name : Kanda T
Slide 25: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 24
Slide 26: Contribution to Consolidated Profits
Infrastructure Management 8．Contribution to Consolidated Profits • Significant year-on-year increase in Net sales and Gross profits year-on-year due to sale of one wind power project in FY22. • One renewable energy project is scheduled to be sold in FY23, and the expected full-year amount is the sam
Slide 27: Initiatives achievements of PPP due to transition to HD structure
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 on a regional basis. • The numb
Slide 28: Major 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 29: Miura Public Sewerage (Eastern Treatment District) Operation Project
Infrastructure Management Infrastructure Operations 11．Miura Public Sewerage (Eastern Treatment District) Operation Project First sewerage concession in Japan which includes maintenance and renewal of all treatment plants, pumping stations, and pipelines in one treatment district POINT Solving c
Slide 30: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 29
Slide 31: Net Sales and Gross Profit (MAEDA ROAD Consolidated)
Road Civil Engineering 12．Net Sales, and Gross Profit (MAEDA ROAD Consolidated) • FY22 FY Year-on-year increase in both Net sales and Gross profit. • After FY23 We aim to improve profitability in both construction and manufacturing & sales business. Full Year※ Net sales Gross profit Gross profit mar
Slide 32: Orders Received, Net Sales, and Gross Profit (Construction business)
Road Civil Engineering 13．Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated Construction business) • FY22 FY Net sales and Gross profit increased year-on-year due to stable orders and progress in passing on higher material costs to the quoted prices. • After FY23 Appropriately pa
Slide 33: Net Sales and Gross Profit (Manufacturing and Sales Business)
Road Civil Engineering 14．Net Sales and Gross Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business) • FY22 FY Eliminated the gap between Increase in manufacturing cost and unit sales price in the 3Q, but Net sales increased Gross profit decreased compared to FY21 • After FY23 In addition
Slide 34: Establishment of JAPAN BIO FUEL Co., Ltd.
Road Civil Engineering 15. Topics “Establishment of JAPAN BIO FUEL Co., Ltd.” A new company was established as a subsidiary of Maeda Road to produce and sell "bio-heavy oil". POINT Significant reduction in CO2 emissions by using "bio-heavy oil" in the productions of asphalt mixture. The compan
Slide 35: Segment Highlights
Segment Highlights Building Civil Infrastructure Construction Engineering Management Road Civil Machinery Others Engineering 34
Slide 36: Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)
Machinery 16．Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated) • FY22 FY Year-on-year increase in both Net sales and Gross profit. • After FY23 Both Net sales and Gross profit are expected to exceed FY22. Full Year (Billions of Yen) Net sales Gross profit Gross profit margin_forecast Gross
Slide 37: Net Sales and Gross Profit by Business
Machinery 17．Net Sales and Gross Profit※1 MAEDA SEISAKUSHO (Consolidated) • FY22 FY In the Industrial machinery business, Sales of in-house products such as crawler cranes are steady strong. • After FY23 Industrial machinery products are steady growth, and performance is expected to be on a par with
Slide 38: Efforts to expand in the North American market
Machinery 18．Topics : Efforts to expand the market in the North American market Expansion of dealer network targeting major urban areas. POINT Expanded line-up of US-spec cranes. 【Construction of the dealer to expand sales (track record and target cities)】 (units sold) Sales in the Americas 120
Slide 39: Appendix
Appendix 38
Slide 40: 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 41: [Non-Consolidated] Maeda Corp. FY22 Results and FY23 Forecast
Maeda Corp. ２. [Non-Consolidated] Maeda Corp. FY22 Results and FY23 Full-Year Forecast (Billions of Yen) FY21 FY22 FY23 ①Results ②Revised ③Results +/-(③-①) +/-(③-②) ④Forecast +/-(④-①) Net Sales 365.8 383.9 375.9 10.1 △ 8.0 401.7 25.83 Total 216.8 228.3 215.4 △ 1.5 △ 12.9 238.5 23.122 Bulding Domesti
Slide 42: [Consolidated] MAEDA ROAD FY22 Results and FY23 Forecast
MAEDA ROAD ３. [Consolidated] MAEDA ROAD FY22 Results and FY23 Full-Year Forecast (Billions of Yen) FY21 FY22 FY23 ①Results ②Revised ③Results +/-(③-①) +/-(③-②) ④Forecast +/-(④-③) Net sales 235.6 239.0 248.7 13.1 9.7 246.8 △ 1.9 Construction Business 162.1 165.2 171.0 8.8 5.8 166.0 △ 5.0 Manufacturing
Slide 43: [Consolidated] MAEDA SEISAKUSHO FY22 Results and FY23 Forecast
MAEDA SEISAKUSHO ４． [Consolidated] MAEDA SEISAKUSHO FY22 Results and FY23 Full-Year Forecast (Billions of Yen) FY21 FY22 FY23 ①Results ②Forecast ③Results +/-(③-①) +/-(③-②) ④Forecast Net sales 37.1 37.2 39.5 2.3 2.3 40.0 Construction Machinery 23.8 21.9 23.7 △ 0.1 1.8 22.9 Industrial Machinery and St
Slide 44: INFRONEER Group's FY22 Results and FY23 Forecast
５．INFRONEER Group’s FY22 Results and FY23 Full-Year Forecast (Millions of Yen) FBS Fujimi Koken JM Consolidated FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 subsidiaries Results Results Forecast Results Results Forecast Results Results Forecast Net sales 20,979 15,855 18,080 7,383 8,848 12,340 21,00
Slide 45: Segments
Re-posting of FY22 3Q material ６．Segments • Segments of INFRONEER Holdings and Maeda Corp. 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 Corp. MK Building Construction Building MK Building Constru
Slide 46: Business Model of Infrastructure Operations
Infrastructure Management ７．Business Model of Infrastructure Operations Re-posting of FY22 3Q material • 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 47: Establishment of New Business Platform of Infrastructure Operations
Re-posting of FY22 3Q material Infrastructure Management Infrastructure Operations ８．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 48: Investment Case No. 1 of Income Fund (ICF)
Infrastructure Management Infrastructure Operations ９． Investment Case No. 1 of Income Fund（ICF） Re-posting of FY22 3Q material • Global Infrastructure Management and SMFL MIRAI Partners Company, Limited formed Income Fund (ICF), an infrastructure fund that invests in infrastructure projects, etc. i
Slide 49: Policy Trends
Infrastructure Management 10．Policy Trends Re-posting of FY22 3Q material ー Act on Promotion of Private Finance Initiative (Act No.117 of July 30, 1999) published by the Cabinet Office The Kishida Cabinet positions PPP/PFI as the core of a New Form of Capitalism. • Act on Promotion of Private Financ
Slide 50: Difference between Contribution to profit and Segment profit
Re-posting of FY22 3Q material Infrastructure Management インフラ運営 11．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 51: Selected as an Excellent Integrated Report by GPIF
12．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 Integrated Reports ” and ” Most-impro
Slide 52: News
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 53: 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,