Tokyu Construction : Presentation material, Financial Results Briefing for the fiscal year ended March 31, 2021

FY03/21

Financial Results Briefing

May 19, 2021

Overview of FY03/21 Financial Results

FY03/21 Financial Results Briefing

This briefing material includes our earnings forecasts and projections.

Please note that these reflect forecasts and estimates based on information available to the Company as of the date of release of this document, and contain uncertainties.

Overview

Business

environment

Full-Year

Results (Consolidated)

• While government construction outlays were strong, private-sector enterprises further downsized and changed business plans, affected by COVID-19 infections, causing private sector construction capex to decline year-on-year
• On the construction cost front, materials & equipment prices were on an uptrend and public works design labor unit prices increased for the ninth consecutive year
• Net sales declined as major projects such as the Shibuya redevelopment project played out and the COVID-19 pandemic led to delays in new construction works
• Operating income declined to a greater extent due to lower profitability caused by intensifying

competition as well as deteriorating revenues from some construction projects and development properties

Net sales ：231,483 million yen (-28.1% YoY)

Operating Income： 3,549 million yen (-82.5% YoY)

• Orders were strong and grew significantly toward a potential business performance recovery from the next fiscal year onward

Orders：320,916 million yen (49.2% YoY）

Financial		 Equity ratio was at 45.4％, a gain of 2.5 percentage points compared to March 31, 2020
conditions		 Acquired treasury stock in order to improve capital efficiency and carry out a flexible capital policy
(Consolidated)
		（total value of acquisition: 999 million yen）

Copyright(C) Tokyu Construction. All rights reserved.

3

FY03/21 Full-Year Results (Consolidated)

Posted lower profitability because net sales declined as major projects played out and new construction works were delayed Meanwhile, orders were strong and grew significantly toward a potential business performance recovery in the future

							(Millions of yen)
						Difference
	Items	FY03/20	Ratio	FY03/21	Ratio	compared	Rate of
	to previous	change
						year
	Orders	215,109	-	320,916	-	105,807	49.2%
	Net Sales	322,170	-	231,483	-	(90,686)	(28.1%)
	Gross profit	36,173	11.2%	18,170	7.8%	(18,003)	(49.8%)
	Selling, general and	15,858	4.9%	14,620	6.3%	(1,237)	(7.8%)
	administrative expenses
	Operating income	20,315	6.3%	3,549	1.5%	(16,766)	(82.5％)
	Ordinary income	21,969	6.8%	4,891	2.1%	(17,077)	(77.7％)
	Profit (losses) attributable to	14,903	4.6%	2,647	1.1%	(12,256)	(82.2％)
	owners of parent
	ROE	15.4%	-	2.6%	-	(12.8Pt)	-
Copyright(C) Tokyu Construction. All rights reserved.					4

Factors Affecting Net Income (Consolidated)

Profit attributable to owners of parent decreased significantly due to declines in completed construction gross profit and in real estate gross profit

Decline

in SG&A

expenses

14,903 1,237

FY03/20

Profit attributable to

owners of parent

	Decline	Decline in
	in tax	completed
expenses	construction
4,809		gross profit
				16,541

(Millions of yen)

Decline in				FY03/21
real estate		Profit attributable to
	income			owners of parent
1,461
	Others	2,647
			300

	Profit increase	Profit decline
Copyright(C) Tokyu Construction. All rights reserved.	5