presentation material for fy2017 first half financial results€¦ · fy17 h1. result. yoy change....

November 14, 2017

FY2017 First HalfFinancial Results

Copyright (C) 2017 KAJIMA CORPORATION All Rights Reserved.

FY2017 First Half Results

FY2017 Financial Forecast

Profit Allocation

P.2 - P.1310

Contents

Ⅰ

Ⅱ

Ⅲ

1

P.14 - P.21

P.22 - P.2410


FY2017 First Half Results(April 1 - September 30, 2017)

1. Business Environment2. Financial Highlights3. Segment Performance

Ⅰ

2

Copyright (C) 2017 KAJIMA CORPORATION All Rights Reserved. 3

Ⅰ FY2017 First Half Results

1. Business Environment

Domestic market trends

Stable demand in public and private sector

Some types of costs have slightly increased but low fluctuation in general

Initiation of industry-wide work style reform

Corporate strategies

Keep chasing improvement of productivity and full implementation of front-loading

Conversation with subcontractors to examine measures of “Kajima work style reform”

Enlarge business field able to utilize our strength and refine management platform


2. Financial HighlightsⅠ

Profit increased due to improvement of gross profit margin in construction business by Kajima main body and of non-operating/extraordinary income

4

FY16 H1Result

FY17 H1Result YoY Change

Change fromInitial

Forecast

Latest Forecast

（Sep 12, 2017）

Revenues 813.2 822.7 +9.5 (17.2) 830.0

Operating Income 73.7 76.8 +3.0 +26.8 70.0

Ordinary Income 76.4 84.3 +7.8 +24.3 77.0

*1 Net Income 50.9 64.3 +13.4 +21.3 56.0

Construction Contract Awards 968.9 759.3 (209.6) +29.3 -

Interest-bearing Debt *2 372.9 286.1 *3 (86.7) - -

*1 Net Income Attributable to Owners of the Parent *2 Mar 31, 2017 Result *3 Change from Mar 31, 2017



Ⅰ

5

FY16 H1Result

FY17 H1Result YoY Change Change from

Initial Forecast

Revenues 813.2 822.7 +9.5 (17.2)

523.2

299.4

550.6

262.5

0

200

400

600

800

1,000

Kajima Corp Subsidiaries

FY16 H1 FY17 H1

YoY Change Factors

Kajima Corp (27.4)

Subsidiaries +36.9


2. Revenues


Ⅰ

6

FY16 H1Result


Initial Forecast

Operating Income 73.7 76.8 +3.0 +26.8

68.3

8.5

63.1

10.5

0

20

40

60

80

100


FY16 H1 FY17 H1

YoY Change Factors

Gross Profit(Kajima Corp)

+6.6

Gross Profit(Subsidiaries)

+0

SG&A (3.6)


2. Operating Income


Ⅰ

7

FY16 H1Result


Initial Forecast

Ordinary Income 76.4 84.3 +7.8 +24.3

76.3

8.0

66.8

9.6

0

20

40

60

80

100


FY16 H1 FY17 H1

YoY Change Factors

Operating Income +3.0

Non-operatingIncome - net +4.7


2. Ordinary Income


Ⅰ

8

FY16 H1Result


Initial Forecast

Net Income 50.9 64.3 +13.4 +21.3

55.4

8.9

44.9

5.9

0

20

40

60

80


FY16 H1 FY17 H1

YoY Change Factors

Ordinary Income +7.8

ExtraordinaryIncome - net +4.4

Income Taxes +0.9

* Net Income Attributable to Owners of the Parent


2. Net Income Attributable to Owners of the Parent


3. Civil Engineering (Kajima Corp)Ⅰ

108.4

228.1

143.2

0

50

100

150

200

250

FY15 H1 FY16 H1 FY17 H1

18.2

24.8

41.3

12.6%

19.0%

27.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

0

10

20

30

40

50

FY15 H1 FY16 H1 FY17 H1

■Contracts Awards

Forecast130.0

Forecast24.0

13.7％

9

145.1130.6

153.0

0

50

100

150

200

250

FY15 H1 FY16 H1 FY17 H1

Forecast175.0

Decrease due to correction of relatively favorable result in same period in 2016

■Revenues ■Gross Profit

Contracts

Revenues Stable in domestic with increase in overseas

Gross Profit Domestic: Same level margin ratio due to change orders as well as cost reduction Overseas: decrease of loss in particular projects expensed in the past as anticipated-loss


JPY bil


Ⅰ

458.6

574.0

382.4

0

100

200

300

400

500

600

FY15 H1 FY16 H1 FY17 H1

24.9

60.2

50.3

6.7%

15.0% 14.3%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

0

20

40

60

80

FY15 H1 FY16 H1 FY17 H1

Forecast350.0

Forecast36.0

（10.3％）

10

371.5402.4

351.9

0

100

200

300

400

500

600

FY15 H1 FY16 H1 FY17 H1

Forecast 350.0

Decrease mainly due to less revenues Same level margin ratio due to change orders as well as cost reduction


3. Building Construction (Kajima Corp)

Contracts

Revenues

Gross Profit

■Contract Awards ■Revenues ■Gross Profit

JPY bil

Large-scale projects under construction is in the early stage

Decrease due to correction of relatively favorable result in same period in 2016


Ⅰ

29.7

24.6 25.5

0

10

20

30

FY15 H1 FY16 H1 FY17 H1

1.2

2.9 3.09.0%

16.9% 16.7%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

0

1

2

3

4

5

FY15 H1 FY16 H1 FY17 H1

Forecast20.0

Forecast3.0

（20.0％）

11

13.5

17.6 18.3

0

10

20

30

FY15 H1 FY16 H1 FY17 H1

Forecast15.0

Equivalent level

Equivalent level


3. Real Estate and Other (Kajima Corp)

JPY bil

Contracts

Revenues


Gross Profit

Equivalent level


Ⅰ

105.4112.7 110.9

0

30

60

90

120

150

FY15 H1 FY16 H1 FY17 H1

9.3

8.2

6.8

0

2

4

6

8

10

FY15 H1 FY16 H1 FY17 H1

12

171.0163.3 165.5

0

50

100

150

200

FY15 H1 FY16 H1 FY17 H1

Ordinary Income Correction of favorable gross profit margin in same period in 2016


3. Domestic Subsidiaries and Affiliates

JPY bil

Contracts

Revenues

■Construction Contract Awards ■Revenues ■Ordinary Income

Equivalent level

Equivalent level


Ⅰ

224.1

99.5

152.9

0

50

100

150

200

250

FY15 H1 FY16 H1 FY17 H1

6.6

5.0

4.0

0

2

4

6

8

FY15 H1 FY16 H1 FY17 H1

13

162.9 167.8

197.7

0

50

100

150

200

250

FY15 H1 FY16 H1 FY17 H1

Increase in all regions

Increase mainly due to acquisition of general-contractor in Australia

Decrease mainly due to increase in SG&A Exchange rate（JPY/USD）FY15 H1: 122FY16 H1: 103FY17 H1: 112


3. Overseas Subsidiaries and Affiliates

JPY bil

Contracts

Revenues

■Construction Contract Awards ■Revenues

Ordinary Income

■Ordinary Income


Ⅱ

14

1. Business Environment2. Financial Highlights3. Segment Performance

FY2017 Financial Forecast(April 1, 2017 - March 31, 2018)

Copyright (C) 2017 KAJIMA CORPORATION All Rights Reserved. 15

Ⅱ

Domestic market outlook

Stable construction investment supported by large-scale redevelopment projects in Metro-Tokyo area

Concern of cost escalation along with progress of large-scale projects

Corporate strategies

Pursue labor-saving/automation technologies to strengthen competitiveness in construction business

Examine and trial for implementation of “Kajima work style reform”

Strengthen, from mid-term perspective, domestic real estate development as well as overseas construction and real estate development


1. Business Environment


Ⅱ

Revised forecast bases on the result of the first 6 months

16

FY16Result

FY17UpdatedForecast

YoY Change Change fromInitial Forecast

Revenues 1,821.8 1,830.0 +8.1 0.0

Operating Income 155.3 136.0 (19.3) +30.0

Ordinary Income 163.4 150.0 (13.4) +30.0

* Net Income 104.8 108.0 +3.1 +26.0

Construction Contract Awards 1,728.3 1,610.0 (118.3) (30.0)

Interest-bearing Debt 372.9 370.0 (2.9) 0.0

* Net Income Attributable to Owners of the Parent


2. Financial Highlights


364.3

300.0 300.0

0

100

200

300

400

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

53.948.5

70.0

18.2%13.7%

19.8%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

0

20

40

60

80

100

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

17

296.8

353.0 353.0

0

100

200

300

400

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

Unchanged from initial forecast


Revised forecast upward based on the first half result and the status of backlog projects

Ⅱ FY2017 Financial Forecast

3. Civil Engineering (Kajima Corp)

JPY bil

Revenues


Contracts

Gross Profit


940.2

800.0 800.0

0

200

400

600

800

1,000

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

112.1

77.5

95.0

13.4%10.3%

12.7%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

0

30

60

90

120

150

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

18

835.1750.0 750.0

0

200

400

600

800

1,000

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast


3. Building Construction (Kajima Corp)

JPY bil

Contracts

Revenues


Gross Profit



Revised forecast upward based on the first half result and the status of backlog projects


45.3

30.0

40.0

0

20

40

60

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

12.0

7.0 7.0

16.8%18.9%

14.9%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

0

5

10

15

20

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

19

71.8

37.0

47.0

0

20

40

60

80

100

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

Revised forecast upward based on the first half result


Unchanged from initial forecast Drop compare to previous year delivered large-scale projects


3. Real Estate and Other (Kajima Corp)

JPY bil

Contracts

Revenues


Gross Profit


202.0188.3

203.1

0

50

100

150

200

250

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

22.1

16.016.9

0

5

10

15

20

25

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

20

363.3 355.5 363.4

0

100

200

300

400

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast


Equivalent to initial forecast

Revised forecast upward based on the first half result Drop compare to previous year recorded high performance in construction business


3. Domestic Subsidiaries and Affiliates

JPY bil

Contracts

Revenues

■Ordinary Income■Construction Contract Awards ■Revenues

Ordinary Income


301.5

430.1392.9

0

100

200

300

400

500

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

17.4

12.411.0

0

5

10

15

20

25

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

21

401.0

465.3 460.0

0

100

200

300

400

500

FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

Revised due to the delay of pipeline projects

Revised due to increase in SG&A Drop compare to previous year due to increase in SG&A and less net financial income

Ⅱ

Exchange rate（JPY/USD）FY16 result: 116FY17 forecast: 113（Initial forecast: 116）


3. Overseas Subsidiaries and Affiliates

JPY bil

Contracts

Revenues

■Ordinary Income■Construction Contract Awards ■Revenues

Ordinary Income

Equivalent to initial forecast


Profit Allocation

Ⅲ

1. Dividend2. Investment

22


FY16Result

FY17Initial

Forecast

FY17UpdatedForecast

Dividend per Share 20.00 20.00 20.00

Basic Net Incomeper Share 101.01 79.00 104.05

Payout Ratio 19.8% 25.3% 19.2%

Unchanged from initial dividend forecast

Our basic policy for profit allocation is to distribute profits to stockholders in line with business performance as well as to provide stable dividends, while securing internal reserves to maintain a sound management foundation. We plan to utilize internal reserves in order to build a strong financial structure and to invest for maintaining and enhancing business platform.

Ⅲ

23

1. DividendProfit Allocation


・ Acquisition of existing assets along with new development・ Reform non-asset business platform

Domestic Real Estate Business

Overseas Business (Construction and Real Estate)

Research and Development

Foster subsidiaries

Invest in stable growth and sustainability

Ⅲ

24

2. Investment

・ Acquisition of existing assets along with new development・ Alliance with local firms and M&A

・ Seek technology in line with our corporate strategies・ Speed up labor-saving and automation

・ Enhance cooperation within Kajima group companies・ Make construction peripheral business more profitable

Profit Allocation

Inquiries: IR Group, Corporate Planning DepartmentE-Mail ： [email protected]

Disclaimer: All financial information has been prepared in accordance with generally accepted accounting principles in Japan. While every attempt has been made to ensure the accuracy of information, forecasts contained in this slides are based on the judgments made with information available as at November 14, 2017, and are subject to risks and uncertainties that may cause the actual results to vary.

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presentation material for fy2017 first half financial results€¦ · fy17 h1. result. yoy change....

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