Seikitokyu Kogyo Co., Ltd. · TSE:1898
Seikitokyu Kogyo — FY2022 Earnings Presentation
36 slides from Seikitokyu Kogyo's earnings presentation, Jun 2, 2023
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2023
Financial Results Presentation for the Fiscal Year Ended March 31, 2023 June 2, 2023 Becoming a truly strong corporate group
Slide 2: Contents
Contents Business Environment During FY2022 4 Financial Results (Consolidated and Non-consolidated) 5 Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated) 6 Construction Work Orders Received (Non-consolidated) 7 Overview of Financial Results Product Manufacturing and
Slide 3: Overview of Financial Results for the Fiscal Year Ended March 31, 2023
Overview of Financial Results 1 for the Fiscal Year Ended March 31, 2023
Slide 4: Business Environment During FY2022
1 Business Environment During FY2022 The impact of the COVID-19 pandemic eased, and socioeconomic activities are being normalized gradually. In the road construction market, public investment remained strong in relation to disaster prevention and mitigation and general measures to boost national res
Slide 5: Financial Results (Consolidated and Non-consolidated)
1 Financial Results (Consolidated and Non-consolidated) Net sales were at the highest level in the past 10 years, with a year-on-year increase of 8.6%. (Exceeded FY2020 results, where 90 billion yen was posted for the first time since FY2001.) We failed to avoid impacts of the sharp rises in the pri
Slide 6: Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated)
Orders Received, Net Sales and Construction Contracts 1 Brought Forward (Consolidated) With construction work orders received being strong and sales of finished goods exceeding the previous year, overall orders received increased 11.4%. With construction steadily progressing throughout the year, net
Slide 7: Construction Work Orders Received (Non-consolidated)
1 Construction Work Orders Received (Non-consolidated) All customer categories, which are the public sector, private sector and Tokyu Group, saw orders received increase. Although we did not receive extremely large-scale construction work orders exceeding 3.0 billion yen, we achieved 70 billion yen,
Slide 8: Product Manufacturing and Sales Results (Non-consolidated)
1 Product Manufacturing and Sales Results (Non-consolidated) Although we are facing the difficult situation of continued sluggish demand, we secured year-on-year increases in both production volume and sales volume of asphalt composites. While variable expenses such as prices of energy and other res
Slide 9: Net Sales and Profit (Loss) Results by Segment (Consolidated)
1 Net Sales and Profit (Loss) Results by Segment (Consolidated) In the Construction Business, construction work orders received were strong from the beginning of FY2022. With extensive construction works in progress at the beginning of FY2022 making steady progress, net sales increased. For profits,
Slide 10: SG&A, Operating Income, Ordinary Profit and Net Income (Consolidated)
SG&A, Operating Income, Ordinary Profit and Net Income 1 (Consolidated) Costs to invest in securing and developing human resources, such as personnel costs and training expenses, increased. (Including impacts of a rise in salaries and the resumption of activities amid the decreased impact of COVID-1
Slide 11: Analysis of Factors Affecting Changes in Net Income (Consolidated)
1 Analysis of Factors Affecting Changes in Net Income (Consolidated) There were positive factors, such as a year-on-year increase in non-operating income and a decrease in non-operating expenses, but a significant decline in product profit, which led to an increase in extraordinary losses, and other
Slide 12: Consolidated Financial Position and Cash Flows
1 Consolidated Financial Position and Cash Flows Purchase of property, plant and equipment of 5,047 million yen, including construction of the head office building and acquisition of land for offices. Purchase of treasury shares of 799 million yen. Dividends paid of 1,120 million yen. Net cash provi
Slide 13: Major Construction Works We Received Orders for
1 Major Construction Works We Received Orders for Site Customer Project (Prefecture) Hokkaido Regional New Chitose Airport South taxiway to connect to the Hokkaido Development Bureau, MLIT runway found construction East Nippon Expressway Pavement repair work within the north district of the jurisdic
Slide 14: Major Completed Construction Works
1 Major Completed Construction Works Site Customer Project (Prefecture) East Nippon Expressway Company Sasson Expressway Hassamu Viaduct floor slab waterproof work Hokkaido Limited TOKYU LAND CORPORATION Artificial ground work for BRANZ Kita 24-jo West Hokkaido TOKYU CORPORATION and Construction wor
Slide 15: Compliance
1 Compliance Prevent recurrence of violation of the Anti-Monopoly Act In response to the violations of the Anti-Monopoly Act that had taken place in the period up to January 2015, we will continue to implement measures laid out to prevent recurrence across the Company and strive to regain trust earl
Slide 16: Topics
1 Topics Purchase of treasury shares 1 Resolution to purchase treasury shares approved at the Board of Directors meeting held on May 11, 2022 (1) Class of shares to purchase Common shares of the Company (2) Total number of shares to purchase 1,200,000 shares (upper limit) (3) Total purchase cost of
Slide 17: Outlook for the Fiscal Year Ending March 31, 2024
Outlook for the Fiscal Year 2 Ending March 31, 2024
Slide 18: Financial Results Forecast for FY2023 (Consolidated and Non-consolidated)
Financial Results Forecast for FY2023 2 (Consolidated and Non-consolidated) We continue to see firm underlying demand in the road construction market, such as disaster prevention and mitigation business and greater national resilience. Net sales are forecast to be almost the same as the previous yea
Slide 19: Net Sales and Profit (Loss) Forecast by Segment (Consolidated)
2 Net Sales and Profit (Loss) Forecast by Segment (Consolidated) In the Construction Business, we expect net sales of completed construction contracts and construction work profit to remain at high levels, backed by solid orders received. With material prices settling, we expect an improvement in ma
Slide 20: Forecast of Construction Work Orders to be Received (Non-consolidated)
Forecast of Construction Work Orders to be Received 2 (Non-consolidated) As we expect a gradual decrease in public works in the future, we will continue to focus on strengthening the base of receiving construction orders from the private sector, taking into account medium-to long-term marketability.
Slide 21: To Improve Valuation in the Stock Market
To Improve Valuation 3 in the Stock Market
Slide 22: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market ROE is in a declining trend due to the accumulation of equity. Furthermore, we presume that we will be evaluated with a strict outlook due to our recent business performance. Amount per share [consolidated] (Yen) Fiscal year FY2017 FY2018 FY2019 FY2020 FY20
Slide 23: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market Dialogue During dialogues with shareholders and institutional investors, multiple stakeholders showed their concerns over the achievement of the medium- to long-term ROE targets, taking into consideration the current business environment, trends in results,
Slide 24: Reference: Medium-term Management Plan (FY2021–2023)
Reference: Medium-term 4 Management Plan (FY2021–2023)
Slide 25: Overview of the Medium-term Management Plan (FY2021-2023)
4 Medium-term Management Plan (FY2021–2023) Overview of the Medium-term Management Plan (FY2021-2023) Corporate An infrastructure building company that helps create affluent Philosophy communities A truly strong corporate group that pursues personal and corporate growth Vision in tandem and helps re
Slide 26: Key Performance Indicators (consolidated)
4 Medium-term Management Plan (FY2021–2023) Key Performance Indicators (consolidated)(final year of the plan) FY2021 FY2022 FY2023 FY2023 Operating income is assumed at the same level as FY2018 and Indicator Actual Actual Forecast Plan FY2019, while projecting revenue growth. We estimate a decrease
Slide 27: Individual Strategies / Key Strategies
4 Medium-term Management Plan (FY2021–2023) Individual Strategies / Key Strategies Strategy 1 Expand stable earnings by further strengthening the competitiveness of our core businesses 【Construction Business】 Increase competitiveness to win construction orders from the Ministry of Land, Infrastruc
Slide 28: Individual Strategies / Key Strategies
4 Medium-term Management Plan (FY2021–2023) Individual Strategies / Key Strategies Strategy 3 Create a virtuous cycle in the recruitment, retention, and development of human resources Secure talents necessary to grow our business scale under the Plan, by hiring diverse human resources and strength
Slide 29: Capital Policy (Investment Plans, Financial Plans and Shareholder Returns)
4 Medium-term Management Plan (FY2021–2023) Capital Policy (Investment Plans, Financial Plans and Shareholder Returns) Consistent and strategic investment to build sustainable business foundation FY2021 FY2022 Over three-year plan Maintenance, renewal, acquisition of factories, Approx. 3.4 Approx. 5
Slide 30: Capital Policy: Shareholder Returns
4 Medium-term Management Plan (FY2021–2023) Capital Policy (Investment Plans, Financial Plan and Shareholder Returns) Shareholder returns with a targeted dividend payout ratio of 100% and DOE of 8% [Effective FY2023] ●Trends of relevant indicators FY2023 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 (Fo
Slide 31: Reference Information
O He RALRAKSH 5 Reference Information
Slide 32: Corporate Philosophy / Company Profile
5 Corporate Philosophy / Company Profile Corporate Philosophy An infrastructure building company that helps create affluent communities Company name SEIKITOKYU KOGYO CO., LTD. Established January 16, 1950 Head office location 2-9-3, Shibakoen, Minato-ku, Tokyo, Representative Yoshikazu Taira, Direct
Slide 33: Main Offices, Laboratories, Consolidated Subsidiaries, etc.
5 Main Offices, Laboratories, Consolidated Subsidiaries, etc. Business offices, etc. 52 sites Material plants, etc. 49 sites Hokkaido ・Hokkaido Branch Technology research Tochigi Prefecture laboratory Testing laboratories 8 sites Equipment center Tochigi Prefecture Training center Tochigi Prefecture
Slide 34: Our Technologies
5 Our Technologies CRACK REPAIR Mible-eco (generic term: foamed asphalt mixture) CRACK REPAIR is an ultra-low viscosity polyurethane-based Asphalt and aggregate can be mixed easily with an additive to repairing material that can be flown naturally and injected into foam fine bubbles in asphalt, whic
Slide 35: Consolidated Performance Indicators, etc.
4 Consolidated Performance Indicators, etc. Business term 58th 59th 60th 61st 62nd 63rd 64th 65th 66th 67th 68th 69th 70th 71st 72nd 73rd 74th Fiscal year FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Net sales (Millions of yen
Slide 36: Forward-looking statements and contact
This material contains financial results forecasts, projections, and other forward-looking statements, which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors including changes in future business environment may caus