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Transcript of Nissei Build Kogyo Co., Ltd.
Nissei Build Kogyo Co., Ltd.Presentation Material ese tat o ate aFor European Institutional Investors
N b 2014November 2014
1
ContentsContents
1 Corporate Profile and Executive Summaryp y
2 What Distinguishes Nissei Buildg
3 How We Create Corporate Valuep
4 Nissei Buildʼs Strategic Advantages
5 Medium-term Business Plan and Financial Trend
sse u d s St ateg c d a tages
5 Medium term Business Plan and Financial Trend
6 FY3/2015 1H Financial Results
COPYRIGHT(C) NISSEI BUILD KOGYO CO.,LTD. All Rights Reserved 2014. 2
1 Corporate Profile and Executive Summary
1 1 Corporate Profile1.1 Corporate ProfileCorporate
name Nissei Build Kogyo Co., Ltd.
Location 3-16-10 Kanaiwa-kita, Kanazawa City, Ishikawa Prefecture, JapanRepresentati
ve Atsuhiro Morioka, President
Established July 3 1961Established July 3, 1961Capital 7,002 million yen
Employees 478 (as of March 31, 2014)Fiscal term Ends March 31Fiscal term Ends March 31Traded on Tokyo Stock Exchange (First Section)
Sales FY ended March 2014 ¥44,854mn (Consol.): ¥25,903mn (Non-consol.)• Sales of systemized construction (prefabricated facilities and unit facilities); rental of
Business
• Sales of systemized construction (prefabricated facilities, and unit facilities); rental of prefabricated facilities
• Sales, maintenance, and renewal of automated tower parking and multilevel parking• Sales of parking facilities with ramps• Construction and renovation construction of railways, civil engineering, and building
works (by subsidiaries)Business lines
works (by subsidiaries) • Parking management and operation (by a subsidiary)• Trading, brokerage, agency work, rental, and management of real estate (by a
subsidiary)• Comprehensive management and maintenance of commercial facilities, etc. (by a
subsidiary)
COPYRIGHT(C) NISSEI BUILD KOGYO CO.,LTD. All Rights Reserved 2014.
subsidiary)• Planning, design, development, and management of software (by a subsidiary)
3
1 Corporate Profile and Executive Summary
1.2 Summary of Nissei Build Group Companies1.2 Summary of Nissei Build Group CompaniesNisse Build Kogyo Domestic Group Companies
Capital: ¥7,002mnEmployees: 478
Capital: ¥490mnOwned: 100%Employees: 144Business lines:
NB Construction Ozawa Construction NB Parking NB Investment NB Facilities NB Networks
Capital: ¥50mnOwned: 100%Employees: 18Business lines:
Capital: ¥30mnOwned: 100%Employees: 14Business lines:
Capital: ¥30mnOwned: 100%Employees: 3Business lines:
Capital: ¥37mnOwned: 100%Employees: 5Business lines:
Capital: ¥30mnOwned: 100%Employees: 2Business lines:Business lines:
Railway constructionBuilding constructionCivil engineeringRenovation construction
Business lines: Building constructionCivil engineering
Business lines:Operation and management of car-parking and bicycle-parking facilities
Business lines: Trade, brokerage, agency business, rental, and management of real estate
Business lines: General management and maintenance of commercial facilities, etc.
Business lines: Planning, design, development & management of software
Nissei Build Asia Pte. Ltd.
Country: SingaporeCapital: SGD1.54mnOwned: 100%Employees: 1Nissei Build Group
Overseas Group Companies
Business lines:Sales of parking structuresOperation and management of parking facilities
Space Value (Thailand)Co.,
Ltd
Asia Parking Investment Pte.
Ltd
Shanghai Tiandi Nissei
Parking Management Co ,Ltd
pConsolidated sales: ¥41,854mn (FY3/2014)Group employees: 657 (as of the end of September, 2014)
Country: ChinaOwned: 40%Capital: RMB17mnEmployees: 4Business lines:
Operation,
Ltd.
Country: ThailandCapital: THB10mnOwned: 49%Employees: 9Business lines:
Sales of parking structures
Ltd.
Country: SingaporeCapital: SGD1.3mnOwned: 80%Employees: -Business lines:
Development and i t t f ki
Parking Management Co.,Ltd
COPYRIGHT(C) NISSEI BUILD KOGYO CO.,LTD. All Rights Reserved 2014. 4
p ,management, and maintenance of parking facilities
structuresOperation and management of parking facilitiesSales of systemized construction
investment of parking facilities
1.3 Executive Summary1 Corporate Profile and Executive Summary
1.3 Executive Summary
Space is ValueSl pWe aim at being the pioneer invoking the possibilities of space.
We supply comprehensive systems composed of offsite-made components that are
Slogan
pp y p y p pdesigned for efficient use of space and efficient maintenance.
We provide optimal combinations of value-creating ideas and technological capabilities to maximize use of urban space for landowners and business operators.
Strength
We use alliances with major companies in many industries.We exploit group power and synergies via M&A, and form value-creating chains
that collect information, construct, manage, raise value, and anticipate future needs (renewal).Strategy
Nissei Build provides rare one-stop solutions in systemized construction for structuresof 1,000m2 or less in gross floor space across Japan. It has established strong competitive
advantages.Competitive advantage
The Medium-Term Business Plan targets sales of ¥50bn (up 20% from FY3/2014),net profit of ¥2.25bn (up 30%), ROE of 14%, and payout ratio of 35% in FY3/2016.
Shareholder value
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2 What Distinguishes Nissei Build
2 1 Business Outline2.1 Business Outline Systemized construction: Frontage of 10-40m; Use of H-type lightweight steel frame
Building structures with standardized components and via systemized processes in a single process from design to factory fabrication to on-site constructionSystemized
construction business
single process from design to factory fabrication to on-site construction.Nissei Build is the only Japanese company to perform systemized construction by using H-type lightweight steel frame.
Prefabricated facilities: Frontage of less than 10m; use of C-type steel frame.Quick construction low cost and flexible response to customer needs
Parking
Quick construction, low cost, and flexible response to customer needs.Unit facilities: Assemble units from factory-fabricated components.
Automated tower parking: Maximum use of limited space by using an elevator.Multi-stacked parking; A product line-up of two- to six-storied structuresParking
structure business
Multi stacked parking; A product line up of two to six storied structures.Parking with ramps: Safe, convenient, and cost-effective parking.Maintenance service.Coin-operated parking structures.
General construction
business
Construction related to condominiums, large facilities, and railways.Anti-seismic reinforcement, large-scale repair of condominiums.Large-scale home centers, medical and welfare facilities, large-scale commercial buildings, etc.
Property development
business Development of condominiums and road-side buildings.
COPYRIGHT(C) NISSEI BUILD KOGYO CO.,LTD. All Rights Reserved 2014.
(FY3/2015)
6
2 What Distinguishes Nissei Build
2.2 Construction Examples and Images2.2 Construction Examples and ImagesWe aim at being the pioneer invoking the possibilities of space
Systemized construction business
Prefabricated facilities(large) Prefabricated facilities (standard) Unit facilities (unit)
Parking structure businessParking structure business
Automated tower parking Multilevel parking Parking structure with ramps
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2 What Distinguishes Nissei Build
2 3 Systemized Construction Product Example: Nissei V Span-S2.3 Systemized Construction Product Example: Nissei V Span SNissei Build is the only company engaged in systemized construction business using H-type lightweight steel frames.
The cost is less than heavyweight frames; the lighter frames are optimal for buildings of 10-40 m frontage and gross floor space of
Nissei V Span-SNissei V Span-SFrame systemFrame system Exterior systemExterior system Roof systemRoof system OptionsOptions
optimal for buildings of 10 40 m frontage and gross floor space of 1,000m2 or less
Building components are selected from among standardized frame systems, exterior systems, and roof systems, enabling use of those that are most suitable
Nissei V Span SNissei V Span SFrame systemFrame system Exterior systemExterior system Roof systemRoof system OptionsOptions
Large spaceLarge space Short construction Short construction StandardizedStandardizedLarge spaceLarge space periodperiod StandardizedStandardized
Factories Warehouses Stores P bli f ilitiFactories Warehouses Stores Public facilities
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2 What Distinguishes Nissei Build
2 4 Systemized Construction Product Example: Prefabricated Facilities2.4 Systemized Construction Product Example: Prefabricated FacilitiesBuildings of 10m or less in frontageConstruction method: factory fabrication of components (pillars, beams, roofs, walls) for on-site assembly and completion of construction of a building or structureStandardization of components and processes of factory fabrication and on-site constructionhas raised quality.A contribution is made to lowering construction costs by rationalizing processes from design to construction and by shortening the overall construction period.
d b iGroundwork Pillar installation Beam and bracing installation
Exterior wall panel installation
Completion
Short construction i d
Short construction i d StandardizedStandardizedperiodperiod StandardizedStandardized
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Office buildings Stores Garages Public facilities
Coin-operated laundries
2 What Distinguishes Nissei Build
2 5 Systemized Construction Product Example: Unit Facilities2.5 Systemized Construction Product Example: Unit Facilities
Unit house using the unit method of installing factory-made finished products on siteproducts on siteConstruct a building satisfying set requirements in a short construction period.Functionality, whereby adaptation to future changes, such as
l d f b ld b d drelocation and expansion of a building, can be accommodated.
Short construction period
Short construction period StandardizedStandardized Functional
adaptabilityFunctional adaptability
Sheds Shelters Studios Toilets
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2 What Distinguishes Nissei Build
2.6 Parking Structure Product Example2.6 Parking Structure Product ExampleBy using standardized components and systemized construction know-how, Nissei Build constructs parking structures that satisfy a wide range of specific requirements in a short construction period.Parking structures indicate multilevel facilities as stand-alone structures with, if needed, mechanical devices.Both mechanical and drive-in type facilities are available Mechanical parking can be either as a tower or aBoth mechanical and drive in type facilities are available. Mechanical parking can be either as a tower or a multilevel facility.
Automated tower parking Parking with rampsMulti-stacked parking
タワー式
Short construction period
Short construction period StandardizedStandardized FlexibleFlexible
H t l Offi C d C t H it lC d C t
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Hotels Offices Condos Corporate offices
HospitalsCondos Corporate housing
2 What Distinguishes Nissei Build
2.7 Sales Breakdown2.7 Sales Breakdown
FY3/2014 Sales FY3/2015(E) SalesFY3/2014 SalesSystemized construction
¥18,946mn, 45%
Comprehensive construction
¥14,811mn, 36%
FY3/2015(E) SalesSystemized construction
¥ 22,400mn, 48%Development
¥1,400mn, 3%
¥44,854million
¥47,000million
Sales
up 12%
Sales
up 12%
Parking structures¥8,097mn, 19%
Parking structures¥9,500mn, 20%
Comprehensive construction
¥13 700 29%
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, ,¥13,700mn, 29%
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2 What Distinguishes Nissei Build
2.8 Strengths: Ideas and Technological Capabilities2.8 Strengths: Ideas and Technological Capabilities
Value-creating ideas Technological capabilitiesg g p
C t l S i V lCorporate slogan: Space is Value
Nissei Build provides throughout Japan the optimal combination of technological capabilities with valuecombination of technological capabilities with value-
creating ideas to effectively utilize urban space for both landowners and operators
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2 What Distinguishes Nissei Build
2.9 Value-creating Ideas2.9 Value creating Ideas
Value-creating ideas based on
Creating new value based on common conceptsSynergies between systemized construction and parking structure
ideas based on common concepts
Synergies between permanent buildings and temporary buildings• Provide a temporary building (for short-term storage, etc.)
– Swiftly construct and remove a temporary building in a short time and reduce overall cost.
Value-creating
Based on information from alliance partners, make proposals to companies with business interests that include parking facilities or stable cash flow businessValue creating
ideas based on collaboration
stable cash flow businessTarget: Convenience stores, hospitals, public facilities, etc.Example: Provide a parking facility in connection with a new or renovated convenience store, improve service and gain more customersEnable flexible ability to realize stable cash flow development projectsEnable flexible ability to realize stable cash flow development projects.
Creating value by supporting the building in a comprehensive way
Value-creating ideas based on comprehensive
supportDesign
Construct
Completi
Operation
managem
Maintenan
Renewa
Operation managem
Dismantlem
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supportn tion
on and m
ent
nce
al and m
ent
ment
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2 What Distinguishes Nissei Build
2.10 Technological Capabilities2.10 Technological Capabilities
In houseIn-house total design and manufacturing from steel-frame construction materials, wall panels, roof materials, control equipment In-house
design and manufacturing
, p , , q pand control program for tower parking.Reduce total cost and shorten construction period by standardized mass production and construction techniques that do not require veteran workers
Space
veteran workers
Technological solutions in the form of systemized construction(sales of prefabricated facilities and unit facilities), rental of prefabricated p
utilization solutions
p ), pfacilities, general buildings, and combinations of themTechnological solutions of multi-stacked, mechanical, drive-in, coin-operated parking structures and combinations of them
Nationwide identical
Provide identical-quality technological services of design, manufacturing, and construction by Nissei Buildʼs own factories, partner building contractors and sales offices across Japanidentical-
quality technology
partner building contractors, and sales offices across JapanLess affected by the labor shortage problem, compared to construction companies using conventional methods, as Nissei Build does not require veteran workers
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3 How We Create Corporate Value
3 1 Value-creating Chain to Maximal Usage of Space3.1 Value creating Chain to Maximal Usage of Space
Nissei Buildʼs one-stop solution forms Nissei Buildʼs one-stop solution forms pa long-term sustainable value-creating chain
pa long-term sustainable value-creating chain
Through alliance partners, collect nation-wide information on land with development potential inCollect Collect information on land with development potential in connection with business activity
Provide realistic, convincing construction proposals, combined with comprehensive construction expertiseConstructConstruct
informationinformationProvide Provide combined with comprehensive construction expertise
ManageManage Operate and manage the constructed property in optimal condition
ways to u
ways to u
Enhance functional and
asset value
Enhance functional and
asset valueEnhance the value of property through good facility management and maintenance
utilize spautilize spa
Anticipate future needs
Anticipate future needs
Perform large-scale repair or renovation work in keeping with changing needs
aceace
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3 How We Create Corporate Value
3.2 Alliance to Collect Information3.2 Alliance to Collect InformationType of
informationType of
information Alliance partnersAlliance partners DetailsDetails Start timeStart time
GE Capital Japan Business alliance for introduction of lease clientsClients of all
sectors; Clients of all
sectors;
Sep. 2012
ORIX Corporation Business alliance for introduction of lease clients
B i d it l lli f d lBusiness and capital alliance for develop
;financing
;financing
StoreStore
Aug. 2012
ES-CON Japan Ltd ment of condominiums and commercial facilitiesNissei Build owns a 5% stakeB i d it l lli d lBusiness and capital alliance on development of new products and clients
Store openings; planning
and design of
Store openings; planning
and design of
Nov. 2012
Luckland Co., Ltd.
Tosei Revival Investment
ment of new products and clientsCross-shareholding of ¥50 million with Nissei Build
Business alliance on real estate development renewal and property managem
commercial facilities
commercial facilitiesNeed for buildingNeed for building
Nov. 2012
Apr 2013Corporation ment, renewal, and property management
Kawada Industries Inc
B i lli f t i d tBusiness alliance for systemized construction; Nissei Build does small projects (1,000m2 or less in floor space), Kawad
building renewalsbuilding renewals
Need for systemized
t ti
Need for systemized
t ti
Apr. 2013
Sep. 2013
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Industries, Inc.gg p j
(1,000m or less in floor space), Kawada does bigger projectsconstructionconstruction
17
3 How We Create Corporate Value3.3 Comprehensive Group Power that Generates
V l C ti Ch ia Value-Creating Chain Collect
informationCollect
information NB Investment *1Land developmentSupport of store openings
ConstructConstructNissei Build Kogyo NB ConstructionNB Construction *2
Ozawa Construction *3
Systemized constructionParking structure constructionComprehensive constructionCivil and infrastructure works
ProPro
ManageManage
Ozawa Construction
NB Parking *4Operation and management of parking
Management of facilities for business NB Investment
opose a wa
opose a wa
Enhance functional Enhance functional NB Facilities *5
for business
Maintenance of parking structures
Maintenance and management of
Nissei Build Kogyo
ay to utilizay to utiliz
and asset value
and asset value
NB Facilities 5commercial facilities, etc.
Railway track improvement NB Construction
ze spaceze space
Anticipate future needsAnticipate
future needs
Renovation of parking structures
Large-scale repair works
Nissei Build Kogyo NB Construction NB Construction
Ozawa ConstructionOzawa Construction
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*1: Established in Dec. 2013; *2 Established in Feb. 2013; *3 Became subsidiary in Sep. 2012;*4 Became subsidiary in March 2013; *5 Established in Sep. 2013
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3 How We Create Corporate Value
3 4 New Business Development in Japan and Overseas3.4 New Business Development in Japan and OverseasExpansion of stock business in
JapanExpansion OverseasExpansion OverseasShanghai Tiandi Nissei Parking Management
Co LtdpMaintenance of
parking structures Nissei Build Kogyo
Co., Ltd.
China
Focus on parking operation and management
Operation and management of parking facilities of theme parks and hospitals
NB Parking Operation and management of parking
Management of facilities for b i d l NB Investment
Nissei Build Asia Pte. Ltd.A i P ki I t t Pt Ltd
p p16,000 parking lots managed by the maintenance subsidiary
NB Facilities Maintenance and management of commercial facilities
business development NB Investment
Singapore
Asia Parking Investment Pte. Ltd.Develop parking structure construction business
Capture the projects by Singaporeʼs Housing & Development Board Promote development of the Malaysian
(Millions of yen) FY3/2014 FY3/2015(E)Maintenance of parking structures 1,951 2,100
Space Value (Thailand) Co., Ltd.
Develop systemized structure and parking structure construction business
p ymarket
Operation & management of parking 1,000 1,900Development business - 1,400
Total 2,951 5,400
ThailandParking projects for local firmsMultilevel parking at limited-space industrial complexesServices for Japanese companiesʼ plants and warehouses
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plants and warehousesPromote development of the Myanmar market
19
3 How We Create Corporate Value
3.5 Stock Business Growth Strategy Outlook3.5 Stock Business Growth Strategy Outlook
FY3/2015• Accelerate sales by acquiring parking facility
management companies, as wide-range synergies in Operation and
management of
¥5.4bn (E) in salesuse of space can be expectedparking facilities
Management of • Promotion of increase in management assets to
include visible cash-flow parking facilities adjacent to
Aim over ¥10bn in sales
gbusiness facilities
(Development business)
include visible cash flow parking facilities adjacent to convenience stores, and hospitals
• Focus on less economic sensitive projects with ensured exit strategy
in salesin around FY3/2017
• Accelerate sales by acquiring maintenance management companies, as wide-range synergies in use of space can be expected
Maintenance and management of
commercial facilities
Stock business has a 30 40% gross margin on average and a relatively higher
facilities
Stock business has a 30-40% gross margin on average and a relatively higheroperating margin than other businesses.
Nissei Build aims to further expand stock business and achieve resilient cost structure offsetting SG&A expenses of other divisions by means of the operating profit of stock business.
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3 How We Create Corporate Value
3.6 Business Segments and Segmentation3.6 Business Segments and Segmentation
FY3/2015 Sales Plan by SegmentFY3/2015 Sales Plan by Segment Business SegmentationBusiness SegmentationSystemized construction
business¥22,400mn,
Development business
¥1,400mn, 3%
Systemized constructionSystemized construction
P kiP ki
Nissei Build KogyoNissei Build Kogyo
Nissei Build Kogyo, ,48%
販売事業
Parking structures Parking
structures
Comprehensivt ti
Comprehensivt ti
Ozawa Construction Ozawa Construction
NB Parking NB Parking Nissei Build Kogyo
12,41430%
¥47,000million
e constructione construction
Development Development
NB Construction
NB Investment Nissei Build KogyoNissei Build Kogyo
Non-consolidated
Non-consolidated
NB Facilities NB Facilities Nissei Build Asia Pte. Ltd.Nissei Build Asia Pte. Ltd.
Parking structure business
¥9,500mn, 20%
Comprehensive construction
business
consolidated subsidiariesconsolidated subsidiaries
Equity incomeEquity income
Space Value (Thailand) Co., Ltd.Space Value (Thailand) Co., Ltd.Asia Parking Investment Pte. Ltd.Asia Parking Investment Pte. Ltd.
Shanghai Tiandi Nissei Parking
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¥9,500mn, 20%business¥13,700mn, 29%
Equity income affiliate
Equity income affiliate
Shanghai Tiandi Nissei Parking Management Co.,Ltd
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3 How We Create Corporate Value3.7 Positioning and Growth Potential of Systemized C iConstruction Total floor space Market size Main players Value chain
Nissei Build’s
strategyNissei Build’s
growth potentialstrategy
Large scale1,000m2 or Approx.
¥5 trillion
Subsidiaries or a business
department of
Most players have an integrated production system from materials to construction Use
Not applicable -
more ¥5 trillion major steel or bridge makers
to construction Use heavyweight steel
frames
Nissei Build; Most players have an integrated production High as major
Middle scaleless
than1,000m2
Approx. ¥500 billion
Subsidiaries or a business
department ofmajor steel or bridge makers
integrated production system from materials
to constructionOnly Nissei Build
uses H-type lightweight t l f
Main target
High as major players cannot pursue scale merit and are not aggressivebridge makers steel frames
Small scaleApprox. ¥200
Many small-scale
Few companies have an integrated production system from materials
Main target
High as Nissei Buildʼs one-
stop solution is billion companies system from materials
to constructiontarget p
highly competitive
Accelerate growth in the middle-scale market, in alliance with Kawada IndustriesAccelerate growth in the middle-scale market, in alliance with Kawada Industries
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Alliance with Kawada in the systemized construction business. Based on shared business information, Nissei Build does small projects (1,000m2 or less in floor space) and Kawada, the bigger projects.
3 How We Create Corporate Value3.8 Groupings and Other Systemized Construction M kMakers
SteelmakersSteelmakers
Lightweight steel frames
Lightweight steel frames Heavyweight steel framesHeavyweight steel framesframesframes
Bridge-related systemized construction
Bridge-related systemized construction
Steelmaking-related systemized construction
Steelmaking-related systemized construction
Only Nissei Build is insystemized construction Only Nissei Build is in
systemized construction systemized construction makers
systemized construction makers
systemized construction makers
systemized construction makers
ybusiness, using
lightweight steel frames
ybusiness, using
lightweight steel frames
Frontage of 10-40mFloor space of
1,000m2 or less
Frontage of 40m or moreFloor space of 1,000m2 or more
Due to different background, Nissei Build is differentiated from other makers, and has established a value chain optimal to its business characteristics, that acts to deter entrants from other groupings.
Due to different background, Nissei Build is differentiated from other makers, and has established a value chain optimal to its business characteristics, that acts to deter entrants from other groupings.
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, g p gThis has provided stability for the company.
, g p gThis has provided stability for the company.
4 Nissei Build’s Strategic Advantages
4 1 Nissei Build’s Advantages from Five Force AnalysisStrong and solid relations with clients
4.1 Nissei Build s Advantages from Five Force Analysis
Clients such as convenience store chains highly regard Nissei Build’s capability to provide solutions b d d t di f th li t’ b ibased on understanding of the client’s business.Clients are highly satisfied with Nissei Build’s systemized construction (for 1,000m2 or less) and parking structures.Nissei Build has established strong relationships of trust with intermediate companies or agencies,
who in turn are trusted by clients.
Competitive rivalryThreat of new entrants Threat of substitutesFew companies offer one-t l ti i Ni i
It is not easy to provide a comp ehensi e se ice ith
Nissei Build’s products l ti l
The life cycle maintenance enables to last long-term relationship.
stop solutions in Nissei Build’s targeted middle- and small-scale markets.
comprehensive service with a nationwide production network such as that of Nissei Build.
replace conventional methods.
Relationship with partners
Limited competitionLow risk Low substitution risk
Information providing partners: Alliances with Nissei Build invigorates their businessBuilding contractors in partnership: Profit from handling Nissei Build’s differentiated productsSteelmakers: Nissei Build established a strong relationships of trust as a large client to purchase lightweight steel frames
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purchase lightweight steel framesStrong and solid relations
4 Nissei Build’s Strategic Advantages
4.2 Nissei Build’s Advantages from VRIO Analysissse u d s d a ages o O a ys s
Value RarityValue Rarity
Nissei Buildʼs total solutions to maximize space value and satisfy client needs, which are available nationwide, have
hi hl l bl f
Nissei Buildʼs total solutions to maximize space value and satisfy client needs, which are available nationwide, have
hi hl l bl f
Nissei Build is the only company in Japan to do systemized construction by using H-type lightweight steel frame for structures of 10-40 m in frontage and 1 000m2 or less in
Nissei Build is the only company in Japan to do systemized construction by using H-type lightweight steel frame for structures of 10-40 m in frontage and 1 000m2 or less in
Nissei Buildʼs total solutions to maximize space value and satisfy client needs, which are available nationwide, have
hi hl l bl f
Nissei Build is the only company in Japan to do systemized construction by using H-type lightweight steel frame for structures of 10-40 m in frontage and 1 000m2 or less inproven highly valuable to operators of
chain stores.proven highly valuable to operators of chain stores.
40 m in frontage and 1,000m2 or less in gross floor space in Japan.Very few companies provide one-stop solution for small-scale structures, from component fabrication to construction and
40 m in frontage and 1,000m2 or less in gross floor space in Japan.Very few companies provide one-stop solution for small-scale structures, from component fabrication to construction and
proven highly valuable to operators of chain stores.
40 m in frontage and 1,000m2 or less in gross floor space in Japan.Very few companies provide one-stop solution for small-scale structures, from component fabrication to construction andcomponent fabrication to construction and maintenance.component fabrication to construction and maintenance.
Imitability Organization
component fabrication to construction and maintenance.
Imitability Organization
It is difficult to imitate systemized construction starting with component fabrication.Nissei B ildʼs h man eso ces ho
It is difficult to imitate systemized construction starting with component fabrication.Nissei B ildʼs h man eso ces ho
Nissei Build is organized to provide one-stop solutions from component fabrication to construction and maintenance for systemized construction
Nissei Build is organized to provide one-stop solutions from component fabrication to construction and maintenance for systemized construction
It is difficult to imitate systemized construction starting with component fabrication.Nissei B ildʼs h man eso ces ho
Nissei Build is organized to provide one-stop solutions from component fabrication to construction and maintenance for systemized constructionNissei Buildʼs human resources who
market total solutions and respond to client needs are difficult to replicate.
Nissei Buildʼs human resources who market total solutions and respond to client needs are difficult to replicate.
maintenance for systemized construction of 1,000m2 or less.Nissei Build is capable of proposing use of space of the target businesses and do actual construction as one stop
maintenance for systemized construction of 1,000m2 or less.Nissei Build is capable of proposing use of space of the target businesses and do actual construction as one stop
Nissei Buildʼs human resources who market total solutions and respond to client needs are difficult to replicate.
maintenance for systemized construction of 1,000m2 or less.Nissei Build is capable of proposing use of space of the target businesses and do actual construction as one stop
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actual construction as one-stop.actual construction as one-stop.actual construction as one-stop.
5 Medium-term Business Plan and Financial Trend
5.1 Medium-Term Business Plan5.1 Medium Term Business Plan
Indicator FY3/2014 FY3/2015 FY3/2016Indicator(millions of yen)
FY3/2014 (Actual)
FY3/2015 (Plan)
FY3/2016 (Plan)
Net sales 41,854 47,000 50,000, , ,
Operating income 2,324 3,250 3,500
Ordinary income 2 490 3 250 3 500Ordinary income 2,490 3,250 3,500
Net income 1,753 2,050 2,250
Earnings per share (yen) 26.5 31.0 34.0
Operating margin 6% 7% 7%
ROE 13% 14% 14%
Payout ratio 26% 29% 35%
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5 Medium-term Business Plan and Financial Trend
5.2 Income Statement5.2 Income Statement
60,000
Net Sales2,500
Operating Income7,000
Net Income(Millions of yen)
(Millions of yen)
(Millions of yen)
30,000
40,000
50,000
1 000
1,500
2,000
3,000
4,000
5,000
6,000
0
10,000
20,000
0
500
1,000
0
1,000
2,000
Indicators( illi f ) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015
(Pl )FY3/2016
(Pl )(millions of yen) 3/ 0 0 3/ 0 3/ 0 3/ 0 3 3/ 0 (Plan) (Plan)Net sales 18,367 17,204 41,879 25,487 41,854 47,000 50,000
Gross profit 3,305 3,148 9,591 5,271 6,356 7,650 8,300
SG&A expenses 2,911 2,596 3,258 3,423 4,031 4,400 4,800
Operating income 394 552 6,333 1,847 2,324 3,250 3,500
Ordinary income 477 545 6,436 1,979 2,490 3,250 3,500
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Net income 242 249 2,196 1,747 1,753 2,050 2,250
27
5 Medium-term Business Plan and Financial Trend
5 3 Margins5.3 Margins
25%
Gross Margin8%
Net Margin16%
Operating Margin
10%
15%
20%
4%
5%
6%
7%
8%
10%
12%
14%
0%
5%
10%
0%
1%
2%
3%
0%
2%
4%
6%
Ratios FY3/2015 FY3/2016Ratios (millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015
(Plan)FY3/2016
(Plan)Gross margin 18.0% 18.3% 22.9% 20.7% 15.2% 16.3% 16.6%
SG&A expenses to 15 8% 15 1% 7 8% 13 4% 9 6% 9 4% 9 6%G& p osales 15.8% 15.1% 7.8% 13.4% 9.6% 9.4% 9.6%
Operating margin 2.1% 3.2% 15.1% 7.3% 5.6% 6.9% 7.0%
Ordinary margin 2.6% 3.2% 15.4% 7.8% 5.9% 6.9% 7.0%
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Net margin 1.3% 1.4% 5.2% 6.9% 4.2% 4.4% 4.5%
28
5 Medium-term Business Plan and Financial Trend
5.4 ROE, EPS, and Payout Ratio
40%
5.4 ROE, EPS, and Payout Ratio
20%
ROE35
EPS Payout Ratio(Yen)
20%
25%
30%
35%
10%
12%
14%
16%
18%
20
25
30
0%
5%
10%
15%
0%
2%
4%
6%
8%
0
5
10
15
FY3/2015 FY3/2016
0
Ratios FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015 (Plan)
FY3/2016 (Plan)
ROE 2.6% 2.6% 20.6% 14.2% 13.0% 14.0% 14.0%
EPS (yen) 2 4 31 26 27 31 34EPS (yen) 2 4 31 26 27 31 34
Payout ratio 46.6% 28.1% 22.3% 19.2% 26.4% 29.0% 35.0%
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5 Medium-term Business Plan and Financial Trend
5.5 Balance Sheet: Assets5.5 Balance Sheet: Assets
Items(millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014(millions of yen) / / / / /
Current assets 11,657 10,581 21,685 23,308 25,064Cash and deposits 3,421 2,458 11,387 6,678 4,879
Notes and accounts receivable 6,610 6,191 7,629 13,012 11,737
Inventories 1,466 1,687 2,619 2,578 7,731Deferred tax assets 195 318Deferred tax assets - - - 195 318
Fixed assets 12,603 12,365 8,649 11,843 12,889Tangible fixed assets 9,962 10,307 7,249 8,399 9,205Depreciable assets 4 389 4 694 3 035 3 547 4 718Depreciable assets 4,389 4,694 3,035 3,547 4,718Land 5,569 5,610 4,213 4,246 4,486Intangible fixed assets 93 72 80 189 254Goodwill - - - 47 35
Investment and other assets 2,546 1,985 1,320 3,254 3,429Investment securities 1,526 976 122 2,025 2,323
Total assets 24,260 22,946 30,335 35,152 37,954
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5 Medium-term Business Plan and Financial Trend
5 6 Balance Sheet: Liabilities and Net Assets5.6 Balance Sheet: Liabilities and Net AssetsItems
(millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014
Current liabilities 11,621 10,115 14,800 18,628 19,815Notes and accounts payable 3,984 3,992 7,742 11,410 10,354Short-term borrowings, bonds,etc. 4,999 3,717 1,666 2,359 4,394
N t li biliti 3 161 3 341 3 715 3 648 3 988Non-current liabilities 3,161 3,341 3,715 3,648 3,988Long-term borrowings, bonds, etc. 2,251 2,247 2,705 2,091 2,298Deferred tax liabilities - 7 2 144 77
Total liabilities 14,782 13,456 18,515 22,276 23,803ota ab t es , 8 3, 56 8,5 5 , 6 3,803Net assets 9,478 9,490 11,819 12,875 14,151
Common stock 7,002 7,002 7,002 7,002 7,002Capital surplus 1,913 1,913 1,913 1,913 1,913Retained earnings 715 894 3,020 4,279 5,701Treasury stock -123 -123 -126 -624 -625Total shareholdersʼ equity 9,507 9,686 11,810 12,570 13,992Net unrealized valuation gain, etc. -29 -196 - 289 120
Subscription rights to shares - - 8 16 37Subscription rights to shares - - 8 16 37Total liabilities and net assets 24,260 22,946 30,335 35,152 37,954Own capital 9,478 9,490 11,810 12,859 14,113Interest-bearing debt 7,250 5,964 4,371 4,450 6,692
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5 Medium-term Business Plan and Financial Trend
5 7 Cash Flow Statement5.7 Cash Flow StatementItems
(millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014
Operating cash flow 1,364 1,061 10,368 -50 -1,633Pre-tax income 294 306 3,211 1,885 1,764Depreciation 720 700 553 347 504Amortization of goodwill - - - 76 18Increase in accounts payable 1,248 419 -1,437 767 1,278Decrease in inventories 1,500 -221 -932 155 -5,141Decrease in accounts payable -1,574 7 3,749 -1,084 -1,064
Subtotal 1,645 1,212 10,678 1,549 -1,658Interest and dividends received 36 26 27 7 27Interest and dividends received 36 26 27 7 27Interest expenses paid -163 -140 -96 -77 -75Income taxes paid -153 -37 -50 -1,529 73
Investing cash flow -94 -646 235 -2,266 -2,248Increase in tangible and 71 1 035 296 841 1 397gintangible fixed assets -71 -1,035 -296 -841 -1,397Increase in investment securities -63 5 740 -1,258 -972
Financing cash flow -564 -1,367 -1,678 -2,364 1,744Inc e e in bo o ing ndIncrease in borrowings and corporate bonds -553 -1,283 -1,593 -1,346 2,117
Increase in treasury stock -1 0 -2 -498 -1Dividends paid 0 -70 -68 -483 -329
Cash and cash equivalents 3,387 2,434 11,359 6,678 4,679
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Cash and cash equivalents 3,387 2,434 11,359 6,678 4,679
6 FY3/2015 1H Financial Results
6 1 Summary6.1 Summary
(Millions of yen)
FY3/2014 1H FY3/2015 1H Increase
Amount % to l Amount % to
l Amount Y-O-( )Amount sales Amount sales Amount Y(%)
Net sales 19,256 100.0 19,086 100.0 △170 △0.9
Gross income 2,892 15.0 3,060 16.0 168 5.8
SG&A expenses 1,971 10.2 1,991 10.4 19 1.0
Operating income 920 4.8 1,069 5.6 148 16.2
Ordinary income 943 4 9 1 106 5 8 163 17 3Ordinary income 943 4.9 1,106 5.8 163 17.3
Net income 509 2.6 709 3.7 199 39.3
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6 FY3/2015 1H Financial Results
6 2 Sales by Business Segment6.2 Sales by Business Segment(Millions of yen)
FY3/2014 1H FY3/2015 1H Increase
Amount % to sales Amount % to sales Amount Y-O-Y(%)
Sales 5,496 28.5 7,164 37.5 1,668 30.4
Rental 2 827 14 7 3 310 17 4 483 17 1Rental 2,827 14.7 3,310 17.4 483 17.1
Systemized construction business 8,323 43.2 10,474 54.9 2,151 25.8
Sales 2 859 14 9 1 958 10 3 △901 △31 5Sales 2,859 14.9 1,958 10.3 △901 △31.5
Maintenance 865 4.5 779 4.1 △86 △9.9
Parking operation & management 278 1.4 602 3.1 324 116.7management
Parking structure business 4,003 20.8 3,341 17.5 △662 △16.5
Comprehensive construction business 6,929 36.0 5,260 27.5 △1,668 △24.1construction business , , ,
Development business - - 9 0.1 9 -
Total 19,256 100.0 19,086 100.0 △170 △0.9
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