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, andcontain uncertainties.

Overview

BusinessenvironmentWhile government construction outlays were strong, private-sector enterprises further downsized andchanged business plans, affected by COVID-19 infections, causing private sector construction capex todecline 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 theCOVID-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 thenext fiscal year onward

Full-Year
Results(Consolidated)

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

Financialconditions(Consolidated)Equity ratio was at 45.4％, a gain of 2.5 percentage points compared to March 31, 2020

 Acquired treasury stock in order to improve capital efficiency and carry out a flexible capital policy（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)

FY03/20

Ratio

FY03/21

Ratio

Differencecompared
to previousyear

Orders215,109-

320,916-

105,807

49.2%

Net Sales

322,170-231,483-(90,686)(28.1%)

Gross profit

36,173

11.2%

18,1707.8%(18,003)(49.8%)

Selling, general andadministrative expenses

15,858

4.9%

14,620

6.3%(1,237)(7.8%)

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 toowners of parent

14,903

4.6%

2,647

1.1%

(12,256)(82.2％)

ROE

15.4%

-

2.6%-(12.8Pt)-ItemsCopyright(C) Tokyu Construction. All rights reserved.

Rate ofchange

4Factors Affecting Net Income (Consolidated)
Profit attributable to owners of parent decreased significantly dueto declines in completed construction gross profit and in real estategross profit
Declinein taxexpenses
4,809

14,903Declinein SG&A
expenses
1,237

Decline incompletedconstruction
gross profit
16,541(Millions of yen)

FY03/20
Profit attributable toowners of parent

Decline inreal estate
income1,461

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

FY03/21
Profit attributable toowners of parent

Others300

2,647Profit decline
5

FY03/21 Full-Year Results (Non-Consolidated)
In civil engineering and building construction, both completed construction sales
and completed construction gross profit decreased significantly
Real estate saw profit come under pressure due to deteriorating revenue from major
development projects undertaken from the previous fiscal year
FY03/21
Items

FY03/20

Results

Ratio(Millions of yen)

Differencecompared
to previousyear

Rate ofchange

Completed construction sales
Civil engineering
Building construction

295,034
88,078206,956

214,560
75,568138,991

100%
35.2%
64.8%

(80,473)(12,509)(67,964)(27.3%)(14.2%)(32.8％)

Completed construction gross profit

32,935
8,218
24,717

17,8546,031
11,822

8.3%
8.0%
8.5%

(15,081)(2,186)(12,895)(45.8%)(26.6%)(52.2%)

1,391
151

1,684
(1,336)(79.4％)

292(1,488)21.0%(980.4%)Gross profit

296,426
33,087

216,245
16,517

7.6%(80,181)(16,570)(27.0%)(50.1%)

Selling, general and administrative expenses

15,304

14,043

6.5%(1,261)(8.2%)

Operating income

17,782

2,474

1.1%

(15,308)(86.1%)

Ordinary income

18,140

3,054

1.4%

(15,086)(83.2%)Net income

12,190

1,262

0.6%

(10,928)(89.6%)

Civil engineering
Building construction
Real estate sales
Real estate gross profit
Net sales

Copyright(C) Tokyu Construction. All rights reserved.

6

Completed construction sales・Completed construction
gross profit（ Non-Consolidated ／ Civil engineering ）Completed construction sales: Declined due to a fall-off in major government work recorded a year ago and due tolower revenue from the Tokyu Group amid the COVID-19 pandemic
Completed construction gross profit: Declined as a construction work scheduled to be completed was rescheduled andrevenues from some construction projects deteriorated(Millions of yen)

Gross profit

Completed construction sales
70,381

88,078

Profit margin ratio

14.1%

75,568

10,964

9.3%
8,606

7,170

12,735

13,092
7,532

8.0%

9,892

8,397

8,218

14,5459,574

6,031
Overseas

56,48944,01940,901Tokyu Group companies
General private
Domestic public

FY03/19

FY03/20

FY03/21

Copyright(C) Tokyu Construction. All rights reserved.

FY03/19

FY03/20

FY03/217

Orders（ Non-Consolidated ／ Civil engineering ）Secured orders were flat year on year thanks to growing orders for domestic public projects although ordersfrom the Tokyu Group halved, affected by the COVID-19 pandemic
Overseas, an order for a major ODA project was not granted due to the political turmoil in Myanmar

64,60563,713

2,629

1,429

(Millions of yen)

FY03/20

Civil engineering

Domestic public

30,824

FY03/2137,099Differencecompared
to previousyear

6,274

Rate ofchange

9,150

20.4%

Domestic
private31,151

25,184(5,967)(19.2%)

Generalprivate22,001

20,752(1,248)(5.7%)

Tokyu Group
companies

9,150

4,432(4,718)(51.6%)

Overseas

2,629

1,429(1,199)(45.6%)

64,60563,713(892)(1.4%)

22,00130,824

Overseas
Tokyu Groupcompanies

20,752

FY03/20

Copyright(C) Tokyu Construction. All rights reserved.

4,432

GeneralprivateDomestic
public37,099FY03/218

Completed construction sales・Completed construction
gross profit（ Non-Consolidated ／ Building construction）
Completed construction sales: Declined as major projects played out and new projects weredelayed due to the COVID-19 pandemic
Gross profit: Declined as profit from a major government work a year ago was no longer
posted and profitability fell due to intensifying competition(Millions of yen)

Gross profit

Completed construction sales
238,241

206,956

Profit margin ratio

138,991
11.9%
9.8%

537
56,9588.5%

876

23,42338,47924,717150
21,101
169,148

Overseas

11,822

Tokyu Group
companies

151,695

104,328

11,596

15,904

13,411

FY03/19

FY03/20

FY03/21

Copyright(C) Tokyu Construction. All rights reserved.

GeneralprivateDomestic
public

FY03/19

FY03/20

FY03/219Orders（ Non-Consolidated ／ Building construction）
Received orders for multiple major logistics warehouses as well as redevelopment along
Tokyu railway lines and environmentally-friendly construction (net zero energy building,ZEB, etc.)
Orders increased significantly, helped by a base effect, and due partly to rescheduling fromthe previous fiscal year

242,920(Millions of yen)

FY03/20

Building construction

Domestic public
Domestic
privateFY03/21

Differencecompared
to previousyear

9,994

5,731

(4,262)(42.6％)

113,772

235,125

121,352

106.7％

98,966

209,636

110,669111.8％

Tokyu Group
companies

14,80525,488

10,682

72.1％

4,942

2,063

(2,879)(58.3%)

128,709242,920

114,21088.7％

Copyright(C) Tokyu Construction. All rights reserved.

25,488Rate ofchangeGeneral
privateOverseas

2,063
Overseas
Tokyu Groupcompanies

128,709

Generalprivate

4,942
14,805

Domestic
public209,636

98,966

9,994

5,731

FY03/20

FY03/2110

Selling, general & administrative expenses （Consolidated）
Selling, general & administrative expenses decreased due toexpense-saving efforts amid the COVID-19 pandemic
SG&A
expenses

SG&A expenses/Net sales(Millions of yen)

15,858
14,62014,0866.3%
4.3%

FY03/19

Copyright(C) Tokyu Construction. All rights reserved.

4.9%

FY03/20

FY03/2111

Balance Sheet（Consolidated）
Equity ratio was at 45.4％, a gain of 2.5 percentage points
compared to March 31, 2020
(Millions of yen)

Liabilities andequity

Assets
235,897

235,897

226,568

226,568
Short-term loans
payable-19,909

Cash and deposits＋4,624

171,125

158,454

Current
assets

Notes receivable, accounts
receivable fromcompleted construction
contracts and other -20,047
Costs on uncompleted
construction contracts -2,816

33,01031,760non-current assets
Other nonCurrent assets

35,54532,568Land＋2,177127,578

Current
liabilities

Noncurrent
liabilities

95,046Long-term loans
payable＋20,105

28,012

6,614

101,703

Total net
assetsIncome taxes
payable-4,292

103,509

Provision for loss
on real estatebusiness＋1,709
Valuationdifference on
available-for-salesecurities＋898
Remeasurementsof defined benefit
plans＋1,327

Investment
securities＋2,319

As of March 31,

As of March 31,

As of March 31,

As of March 31,

2020

2021

2020

2021

42.9％

45.4％

Equity ratio
Copyright(C) Tokyu Construction. All rights reserved.

12Interest-bearing debt, Equity, D/E ratio（Consolidated）
D/E ratio was at 0.26 times, almost flat year on year
Interest-bearing debt
(Millions of yen)

Equity102,963

101,215

92,63326,55726,754

1,638

D/E ratio

As of March 31,

As of March 31,

As of March 31,

2019

2020

2021

0.02
times

0.26
times

0.26
times

Copyright(C) Tokyu Construction. All rights reserved.

13

Cash flow statement（Consolidated）
Free cashflow improved to 7.8 billion yen as cash flows from operating activities
increased due to reduced accounts receivable – trade, which was at a high levelon March 31, 2020
(Millions of yen)

Items

Year ended
March 31,2020Year ended
March 31,2021

FY03/2021 remarks

Cash flows from operatingactivities(33,439)

11,629Recording of income before
income taxes and others, a cash
increase caused by lower accounts
receivable – trade, etc.

Cash flows from investing activities(7,488)(3,753)Acquisition of non-current assets,
subsidiary shares, etc.

Free cashflow(40,928)

7,875

Cash flows from financing activities

21,604(3,308)

Effect of exchange rate change
on cash and cash equivalents

(270)

56

ーCash and cash equivalents at
beginning of period

49,14529,549ーCash and cash equivalents at endof period

29,54934,173ーCopyright(C) Tokyu Construction. All rights reserved.

ー
Payment of dividends, acquisitionof treasury stock, etc.

14

VISION2030

Long-Term Management Plan
"To zero, from zero."
FY03/21 Financial Results BriefingPlease see the VISION2030 Long Term Management
Plan “To zero, from zero.” released on May 12, 2021

https://www.tokyu-cnst.co.jp/en/company/strategy/pdf/strategy.pdf

Full-year Forecast for
FY03/22
FY03/21 Financial Results BriefingP/L Forecast（Consolidated）
Net sales are forecast to increase due to order acquisition during
the previous fiscal year
Gross profit will likely improve by 0.5 percentage points and operating income isforecast at 7.0 billion yen(Millions of yen)

FY03/21Ratio

FY03/22(Forecast)

Ratio

Differencecompared topreviousyear

Net Sales

231,483-

285,000-

53,51623.1%

Gross profit

18,1707.8%

23,700

8.3%

5,529

30.4%

Selling, general andadministrative expenses

14,6206.3%

16,700

5.9%

2,079

14.2%

Operating income

3,5491.5%

7,000

2.5%

3,450

97.2％

Ordinary income

4,891

2.1%

7,300

2.6%

2,408

49.2％

Profit (losses) attributable toowners of parent

2,647

1.1%

4,800

1.7%

2,152

81.3％

Items

Copyright(C) Tokyu Construction. All rights reserved.

Rate ofchange

18

P/L Forecast (Non-Consolidated)
Net sales are forecast to increase due to higher completed construction sales in building
construction
Operating income is forecast at 5.7 billion yen due to higher completed construction sales andrecovering real estate gross profit(Millions of yen)

FY03/22
ItemsFY03/21
Forecast

Ratio

Differencecompared
to previous
year

Rate ofchange

Completed construction sales
Civil engineering
Building construction

214,560
75,568138,991

265,300
69,800195,500

100%
26.3%
73.7%

50,739(5,768)56,50823.6%(7.6%)
40.7％

Completed construction gross profit

17,854
6,031
11,82220,8006,900
13,900

7.8%
9.9%
7.1%

2,945
868
2,077

16.5%
14.4%
17.6%

Real estate sales
Real estate gross profit

1,684△1,336

1,700
800

47.1%

152,136

0.9%-Net sales
Gross profit

216,245
16,517

267,000
21,6008.1%

50,754
5,082

23.5%
30.8%

Selling, general and administrative expenses

14,043

15,900

6.0%

1,856

13.2%

Operating income

2,474

5,700

2.1%

3,225

130.4%

Ordinary income

3,054

5,900

2.2%

2,845

93.2%

Net income

1,262

3,900

1.5%

2,637

208.8%

Civil engineering
Building construction

Copyright(C) Tokyu Construction. All rights reserved.

19Order Forecast（Non-Consolidated）
Civil engineering: Orders from domestic public and domestic private are forecast
to decline despite rising orders from the Tokyu Group
Building construction: Orders from domestic private are forecast to decline in a fall-off froma sharp increase a year ago despite rising orders from domestic public and the Tokyu Group(Millions of yen)

Buildingconstruction

Civil engineering

FY03/21

FY03/22(Forecast)Differencecompared toprevious year

Rate ofchange

Domestic public

37,09932,000(5,099)(13.7%)

Domestic private

25,18423,000(2,184)(8.7%)

General private

20,752

13,000(7,752)(37.4%)

Tokyu Group companies

4,432

10,0005,567

125.6%

Overseas

1,429

2,000570

39.9%

63,71357,000(6,713)(10.5%)

Domestic public5,731

18,00012,268214.0%

Domestic private

235,125

180,000(55,125)(23.4%)

General private

209,636

150,000(59,636)(28.4%)

25,48830,000

4,511

17.7%

2,063

2,000(63)(3.1%)

242,920200,000(42,920)(17.7%)

306,633

257,000(49,633)(16.2%)

Tokyu Group companies

Overseas

Total
Copyright(C) Tokyu Construction. All rights reserved.

20

P/L・Order Forecast（Non-Consolidated／Civil engineering ）Completed construction gross profit is forecast to improve as the revenue deterioration
experienced in the previous fiscal year is expected to dissipate(Millions of yen)Completed construction sales
・Gross Profit
9.9%

OrdersProfit Margin
Ratio

8,606

8,397
14,54544,019FY03/2157,000

1,429
4,432

2,000
10,00020,7528.0%
75,56863,71313,00069,80016,500Overseas

Tokyu Group
companies

37,09932,000FY03/21

FY03/22

FY03/22(Forecast)

Copyright(C) Tokyu Construction. All rights reserved.

Domestic
publicDomestic
public(Forecast)【Construction work carried forward】

FY03/21

Generalprivate38,000Tokyu Group
companies
Generalprivate

4,800
10,500Overseas

FY03/22(Forecast)Amount brought forward

118,531

106,676

Orders

63,71357,000Completed construction sales

75,56869,800

Amount carried forward

106,676

93,87621

P/L・Order Forecast（Non-Consolidated／Building construction）
Completed construction sales are forecast to increase significantly owing toincreased orders for the previous fiscal year
Meanwhile, completed construction gross profit margin ratio is forecast todecline due to intensifying competition and rising construction costs(Millions of yen)Completed construction sales
・Gross Profit

OrdersProfit MarginRatio

8.5%
7.1%

195,500

242,920200,000

2,063
25,488

209,636
5,731

43,800150

Overseas

21,101Tokyu Group
companies

104,328

143,000

30,000Tokyu Group
companies

18,000FY03/21

GeneralprivateDomestic
public

FY03/22(Forecast)【Construction work carried forward】
FY03/21

GeneralprivateDomestic
publicOverseas

150,000

700
138,991

2,000

FY03/22(Forecast)Amount brought forward

133,007236,935

Orders242,920200,000

13,411

8,000

Completed construction sales

138,991

195,500

FY03/21

FY03/22Amount carried forward

236,935

241,435(Forecast)
Copyright(C) Tokyu Construction. All rights reserved.

22

Net Sales・Gross Profit Forecast（Construction Renewal）
Both sales and orders for the construction renewal business are forecast to recoverin comparison to the previous fiscal year, but the recovery will likely be limited as weneed to assume continued effects from the COVID-19 pandemic(Millions of yen)

Net Sales・Gross Profit

OrdersProfit Margin
Ratio

11.4%

10.9%

14,98915,710FY03/21

FY03/22(Forecast)

13,233

FY03/21

15,390FY03/22(Forecast)* Each of the numbers for the construction renewal business is a simple sum of numbers from Tokyu Renewal Co., Ltd. and Token
Industry Co., Ltd., subsidiaries engaged in the business, and no elimination was taken into account
Copyright(C) Tokyu Construction. All rights reserved.

23

Net Sales・Gross Profit Forecast（International・Real estate）
Overseas: Improvement will likely be limited as the Myanmar situation is becoming uncertain
Real estate: Profitability is forecast to improve due to the disappearance of the effects from the development
revenue deterioration experienced in the previous fiscal year(Millions of yen)International

Real estate
47.1%

0.5%

0.0

Gross
ProfitMarginGrossProfitMarginNet Sales-79.4%Net Sales

9,567

8,340

1,684

1,700

FY03/21

FY03/22

FY03/21

FY03/22(Forecast)(Forecast)*Each of the numbers for Overseas is a simple sum of numbers from two overseas subsidiaries (TCI and GTC) and from non-consolidated overseas
business of the Company, and no elimination was taken into account.
TCI: Pt. Tokyu Construction Indonesia/GTC: Golden Tokyu Construction Co., Ltd. (Myanmar)*Numbers for the real estate business are the values of the sales and gross profit of the real estate business on the Company’s non-consolidated
statement of income.

Copyright(C) Tokyu Construction. All rights reserved.

24

Dividend Forecast
We aim to achieve a dividend on equity ratio (DOE) of 4.0% or
more, and will pay dividends steadily and consistently in a manner
not easily affected by short-term profit volatility
Dividend per share(yen)

DOE
40

5.4%
25

31
4.6%
26

30

30

4.6%
3.7%

4.0%

3.3%
10
1.0%

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21FY/03/22(Forecast)

Treasury stock acquisition
Total number of shares of treasury stock for FY3/2021: 1,965,100 shares(total value of acquisition: 999,976,175 yen)
Copyright(C) Tokyu Construction. All rights reserved.

25

[Inquiries]
Nishida/Morita
Corporate Planning Department, Corporate Strategy Division
TEL: +81-3-5466-5008
URL: webmaster@tokyu-cnst.co.jp