(Stock code: 1982)
Earnings Announcement for the First Half of FY3/25
November 14, 2024
Financial Highlights (consolidated)
- Strategically executed the order-receiving plan in consideration of the level of order backlogs and construction capacity.
- Net sales increased year on year on the back of steady progress in construction carried over from the previous fiscal year.
- Profits surged year on year on higher earnings at the time of receiving orders and a higher profit ratio after improving the profitability of projects that reached completion in the first half.
2022/9 | 2023/9 | 2024/9 | YoY | YoY (%) | |
Orders received | 37.2 | 50.7 | 30.5 | -20.1 | -39.8% |
Net sales | 28.6 | 33.0 | 37.6 | +4.6 | +14.1% |
Gross profit | 4.7 | 4.9 | 7.3 | +2.4 | +48.8% |
Gross profit ratio | 16.4% | 14.9% | 19.4% | － | +4.5% |
Operating profit | 0.7 | 0.9 | 3.2 | +2.2 | +231.8% |
Ordinary profit | 1.1 | 1.4 | 3.5 | +2.1 | +150.1% |
Profit attributable | 0.7 | 0.9 | 2.5 | +1.6 | +169.3% |
to owners of parent | |||||
(Billion yen) | ||
2023/3 | 2024/3 | |
Actual | Actual | |
(Full year) | (Full year) | |
87.3 | 105.5 | |
83.9 | 83.7 |
15.1 14.9
18.0% 17.8%
5.9 5.7
6.6 6.4
4.6 4.8
1
Forecast for the Fiscal Year Ending March 2025
To date, no change has been made to the forecast announced on May 14.
- Orders received fell year on year because of the strategic implementation of the order-receiving plan. However, a larger number of inquiries are received mainly on data centers. It is quite possible to attain the forecast level.
- No revision is made to the net sales forecast although there is a risk of extension of the construction period arising from delays in the construction process.
- Profits were healthy in the first half, but forecasts are kept unrevised in consideration of risks in the
second half. | (Billion yen) | ||||||
Eighth Medium-term Management Plan | |||||||
2024/3 | 2025/3 | 2026/3 | |||||
Plan when the | Plan when the | Plan when the | |||||
Medium-term | Medium-term | Medium-term | |||||
Management | Actual | Management | Forecast | Management | |||
Plan was | Plan was | Plan was | |||||
announced | announced | announced | |||||
(Announced on | (Announced on | (Announced on | (Announced on | (Announced on | |||
May 11, 2023) | May 14, 2024) | May 11, 2023) | May 14, 2024) | May 11, 2023) | |||
Orders received | 86.5 | 105.5 | 88.5 | 88.5 | 91.0 | ||
Net sales | 85.0 | 83.7 | 88.5 | 91.0 | 90.5 | ||
Operating profit | 5.0 | 5.7 | 5.5 | 5.9 | 6.5 | ||
Profit attributable to | 3.8 | 4.8 | 4.1 | 4.6 | 4.8 | ||
owners of parent | |||||||
2
Orders Received (1): By Customer and By Category (consolidated)
- In terms of orders by customer, orders fell year on year, principally large projects for the private sector. By category, orders dropped year on year in every category.
- For the second half, more orders should be gained mainly from the private sector for large projects.
60.0 | By customer | (Billion yen) | ||||||||
50.7 | ||||||||||
50.0 | ||||||||||
4.4 | ||||||||||
40.0 | 37.2 | |||||||||
3.5 | 27.1 | 30.5 | ||||||||
30.0 | ||||||||||
15.1 | 3.8 | |||||||||
7.4 | ||||||||||
20.0 | ||||||||||
2.0 | 0.5 | 4.3 | ||||||||
10.0 | ||||||||||
16.4 | 18.6 | 15.0 | ||||||||
0.0 | ||||||||||
2022/9 | 2023/9 | 2024/9 | ||||||||
NTT Group | Public sector | Private sector | Other * | |||||||
By category | (Billion yen) | |||
60.0 | ||||
50.7 | ||||
50.0 | ||||
4.4 | ||||
40.0 | 37.2 | 10.4 | ||
3.5 | 30.5 | |||
9.9 | ||||
30.0 | ||||
7.5 | 3.8 | |||
8.8 | 5.7 | |||
20.0 | ||||
4.0 | ||||
25.9 | ||||
10.0 | ||||
17.3 | 16.9 | |||
0.0 | ||||
2022/9 | 2023/9 | 2024/9 | ||
Air conditioning Plumbing and sanitation Electrical Other*
* Orders received by consolidated subsidiaries 3
Orders Received (2): By Facility Category (non-consolidated)
- Orders related to data centers/information and to offices declined year on year. Orders related to education/health care grew because of large hospital projects.
- For the second half, orders are expected to increase, mainly related to large data centers.
Trend in orders received (non-consolidated) | (Billion yen) | |||||||||
50.0 | ||||||||||
Data centers/Information | 46.3 | |||||||||
45.0 | ||||||||||
Office buildings | 40.0 | |||||||||
33.7 | ||||||||||
35.0 | ||||||||||
24.4 | ||||||||||
30.0 | ||||||||||
Manufacturing/Distribution | 26.7 | |||||||||
25.0 | 17.9 | 12.0 | ||||||||
Education/Health care | 20.0 | |||||||||
15.0 | ||||||||||
Hotels/Resorts | 10.3 | 17.8 | ||||||||
10.0 | 8.5 | |||||||||
5.0 | 1.1 | 2.7 | 2.4 | 1.6 | ||||||
Other | 1.0 | 0.2 | 0.2 | 3.4 | 0.8 | |||||
1.7 | ||||||||||
0.0 | 0.3 | |||||||||
2022/9 | 2023/9 | 2024/9 | 4 | |||||||
Orders Received (3): Percentage of Orders Received that are New Construction and Renovation (non-consolidated)
- Orders for renovation decreased year on year, although remained at a solid level.
- Orders for new construction decreased sharply year on year due to a small number of orders for large projects from the private sector.
- For the second half, orders for large new construction projects are expected while the full-year percentage of renovation will be smaller in the second half than in the first.
50.0 | |
Renovation | 45.0 |
40.0 |
New construction | 35.0 | |
30.0 | ||
25.0 | ||
20.0 | ||
15.0 | ||
10.0 | ||
5.0 | ||
0.0 |
Trend in the percentage of orders received that are | |
new construction and renovation (non-consolidated) | (Billion yen) |
46.3
33.7 | 23.3 |
(50.4%) | |
26.7 | |
19.3 | |
(57.5%) | |
20.7 | |
(77.5%) | |
22.9 | |
14.3 | (49.6%) |
(42.5%) | 6.0 |
(22.5%) |
2022/9 | 2023/9 | 2024/9 | 5 |
Net Sales (1): By Customer and By Category (consolidated)
- Sales from major customers and those in major categories rose year on year, given that construction carried over from the previous fiscal year made good progress.
By customer | (Billion yen) | ||
40.0 | |||
37.6 | |||
35.0 | 33.0 | 3.6 | |
28.6 | |||
30.0 | 4.4 | ||
3.3 | 17.1 | ||
25.0 | |||
13.5
20.0 11.1
15.0 | 1.2 | ||
1.8 | 0.6 | ||
10.0 | |||
12.3 | 14.3 | 15.6 | |
5.0 | |||
0.0
2022/92023/92024/9
NTT Group Public sector Private sector Other*
By category | (Billion yen) | |||||||||
40.0 | ||||||||||
37.6 | ||||||||||
35.0 | 33.0 | 3.6 | ||||||||
28.6 | 5.8 | |||||||||
30.0 | 4.4 | |||||||||
3.3 | 5.4 | |||||||||
25.0 | ||||||||||
4.8 | 8.2 | |||||||||
20.0 | ||||||||||
5.3 | 7.6 | |||||||||
15.0 | ||||||||||
10.0 | 15.1 | 15.4 | 19.8 | |||||||
5.0 | ||||||||||
0.0 | ||||||||||
2022/9 | 2023/9 | 2024/9 | ||||||||
Air conditioning | Plumbing and sanitation | Electrical | Other* | |||||||
* Sales earned by consolidated subsidiaries 6
Net Sales (2): By Facility Category (non-consolidated)
- Net sales grew year on year in data centers/information and in office buildings as balanced progress was made in construction carried over in these categories.
40.0
Data centers/Information
35.0
Office buildings | 30.0 |
25.0
Manufacturing/Distribution
20.0
Education/Health care
15.0
Hotels/Resorts | 10.0 | |
5.0
Other
0.0
Trend in net sales (non-consolidated) | (Billion yen) |
34.0
28.6
25.2
18.6
13.1
11.2
6.3 | 7.8 | |||
7.3 | ||||
3.1 | 2.5 | |||
3.0 | 2.4 | |||
1.1 | ||||
0.6 | 1.6 | 2.7 | 1.2 | 2.6 |
1.2 | 1.0 | |||
2022/9 * | 2023/9 | 2024/9 |
* Net sales by facility category for FY2022 reflect estimates. 7
Net Sales (3): Percentage of Orders Received that are New Construction and Renovation (non-consolidated)
- Net sales increased both in new construction and in renovation.
- While the number of new construction projects in the private sector rose significantly, the percentage of renovation shrank.
Trend in the percentage of orders received that are | (Billion yen) | ||||
new construction and renovation (non-consolidated) | |||||
40.0 | |||||
Renovation | 34.0 | ||||
35.0 | |||||
28.6 | |||||
New construction | 30.0 | 25.2 | |||
25.0 | |||||
18.9 | |||||
(55.7%) | |||||
20.0 | 17.2 | ||||
16.4 | (60.2%) | ||||
15.0 | (64.9%) | ||||
10.0 | |||||
11.3 | 15.0 | ||||
5.0 | 8.8 | (44.3%) | |||
(39.8%) | |||||
(35.1%) | |||||
0.0 | |||||
2022/9 | 2023/9 | 2024/9 | |||
8
Order Backlog by Customer (consolidated)
- Order backlogs continued to hover at high levels.
- However, it began to decline at the end of the previous fiscal year, i.e. March 2024, due to good progress in construction carried over.
Order backlog by customer | (Billion yen) |
90.0 | ||||||
77.6 | 81.7 | |||||
80.0 | 0.2 | 74.6 | ||||
0.4 | ||||||
70.0 | 65.2 | 0.4 | ||||
59.9 | ||||||
0.5 | ||||||
60.0 | 56.5 | 0.3 | ||||
0.3 | 57.1 | |||||
50.0 | 51.2 | 47.4 | ||||
40.0 | 42.4 | 37.6 | ||||
38.4 | ||||||
30.0 | ||||||
4.0 | 5.9 | 9.0 | ||||
20.0 | 3.9 | 4.1 | ||||
3.6 | ||||||
10.0 | 18.2 | 17.7 | 22.0 | 18.3 | 17.7 | |
14.1 | ||||||
0.0 | ||||||
2022/3 | 2022/9 | 2023/3 | 2023/9 | 2024/3 | 2024/9 | |
NTT Group | Public sector | Private sector | Other* |
* Order backlog held by consolidated subsidiaries | 9 |