Construction Revolution
FY2023 (September 2022 to August 2023)
GIKEN LTD.
Financial Results
Overview
October 11, 2023Forward-looking Statements Disclaimer
Except for historical facts, certain information provided in this document, such as our and our group's current policies and management strategies, contains forward-looking statements based on currently available information, including statements about the future. These statements, which are based on estimates, projections, or assumptions with potential risks, involve uncertainties that could cause results to differ materially from those anticipated in the statements.
Such risks and uncertainties include general domestic and international economic conditions, such as national economic conditions, industrial and market conditions, interest rates, commodity prices, and exchange rate fluctuations.
We are not obligated to update or revise "forward-looking statements" provided in this document, even in the event of new information or future developments.
1
Content
I. Financial Results | ||
◼ Financial Results Overview FY2023 | P | 3 |
◼ FY2024 Forecast | P | 9 |
◼ Revision of Medium-term Management Plan | P 17 | |
◼ Shareholder Return | P 19 | |
II. Long-term Vision | ||
◼ GIKEN GOALS 2031 | P 22 | |
III. References | P 37 |
2
Financial Results Overview
FY2023
3
Financial Results Trend
Unit: Millions of JPY | ||||||
FY2021 | FY2022 | FY2023 | ||||
Actual | Actual | YoY | Actual | YoY | ||
Net Sales | 27,618 | 30,378 | +10.0% | 29,272 | -3.6% | |
Operating Profit | 3,997 | 4,613 | +15.4% | 2,983 | -35.3% | |
Ordinary Profit | 4,161 | 4,832 | +16.1% | 3,060 | -36.7% | |
Profit* | 3,073 | 3,234 | +5.2% | 846 | -73.8% | |
Profit per Share | 112.22 | 117.65 | +4.8% | 30.82 | -73.8% | |
(JPY) | ||||||
*1 An extraordinary losses of 1,367 million yen for loss on liquidation of subsidiaries and associates | ||||||
was recorded for the fiscal year ended August 31, 2023. | ||||||
*2 Profit attributable to owners of GIKEN LTD. | 4 |
Financial Results Trend-Net Sales and Operating Profit
Unit: Millions of JPY
[Factors in sales changes]
• Large-scale projects overseas undertaken |
27,618
5,460
(19.8%)
22,158
3,997
30,378
5,965
(19.6%)
24,413
4,613
29,272
4,092
(14.0%)
25,180
2,983
mainly in the previous fiscal year have been |
completed. |
• Steady progress in construction work, with |
robust adoption increase of our method, mainly |
for projects related to disaster recovery and |
reconstruction, disaster prevention and |
mitigation measures, and strengthening national |
resilience measures. |
[Factors in operating profit changes]
• Amid soaring steel and other construction |
material prices, material costs represent a |
larger proportion of construction works |
expenditures, and the resulting downward |
trend in construction volume has affected |
sales of machinery products and parts with a |
high gross margin used in permanent |
structures. |
FY2021FY2022FY2023
Domestic Sales Overseas Sales Operating Profit
Figures in brackets show the overseas ratio
• Selling, general and administrative expenses, |
including research and development |
expenses, increased. | 5 |
Financial Results Trend-Net Sales by Segment
Construction Machinery Segment
Unit: Millions of JPY | ||||
25,000 | 13.2% | 9.5% | 9.9% | |
20,851 | 20,752 | |||
20,000 | 19,134 | 1,986 | 2,053 | |
2,526 | ||||
15,000 | ||||
10,000 | ||
18,865 | 18,699 | |
16,608 | ||
5,000 | ||
0
FY2021 FY2022 FY2023
Domestic Sales | Overseas Sales | Overseas ratio | ||
[Factors in sales changes]
Overseas: Steady sales growth of finished goods in Asia
Domestic: The sales of large machinery used in the construction of permanent structures decreased. In contrast, robust sales of general machinery used in the construction of temporary structures were recorded.
Press-in Work Segment
Unit: Millions of JPY | ||||||||
12,000 | 41.8% | |||||||
34.6% | ||||||||
10,000 | 9,526 | 23.9% | ||||||
8,484 | 8,519 | |||||||
8,000 | ||||||||
3,978 | 2,038 | |||||||
2,934 | ||||||||
6,000 | ||||||||
4,000 | ||||||||
6,480 | ||||||||
5,550 | 5,547 | |||||||
2,000 | ||||||||
0 | ||||||||
FY2021 | FY2022 | FY2023 | ||||||
Domestic Sales | Overseas Sales | Overseas ratio | ||
[Factors in sales changes]
Overseas: Large-scale projects overseas undertaken mainly in the previous fiscal year have been completed.
Domestic: Adoption of our method has strongly increased for disaster recovery and reconstruction projects and other fields.
6
Financial Results Trend-Operating Profit by Segment
Construction Machinery Segment
25,000 | Unit: Millions of JPY | ||
20,097 | 21,694 | 21,276 | |
20,000 | 842 | 523 | |
963 | |||
15,000 | |||
10,000 | |||
4,775 | 6,068 | 4,668 | |
(28.0%) | |||
5,000 | (23.8%) | (21.9%) | |
Press-in Work Segment
10,000 | Unit: Millions of JPY |
9,656 |
8,663 | 129 | 8,796 | |
8,000 | 179 | 276 | |
6,000
4,000
1,243
2,000 (14.4%) 948875
(9.8%) (10.0%)
19,134 | 20,851 | 20,752 | |||||
0 | |||||||
0
8,484 9,526 8,519
FY2021 | FY2022 | FY2023 |
External Customer Sales | Internal Sales | |
Operating Profit | Figures in brackets show the | |
operating profit margin |
[Factors in profit margin changes]
- The sales of high gross margin finished goods and parts decreased.
- Selling, general and administrative expenses, including research and development expenses, increased.
FY2021 | FY2022 | FY2023 | |
External Customer Sales | Internal Sales | ||
Operating Profit | Figures in brackets show | ||
the operating profit margin |
[Factors in profit margin changes]
- Completion of large-scale overseas projects with low gross margin undertaken mainly in the previous fiscal year increased
operating profit margin. Domestic operating profit remains at the
level seen in the first half of the year due to the decrease of | 7 |
high gross margin projects. |
Extraordinary Losses on Dissolution of Joint Venture with J Steel
Background
- December 2017
- Acquisition of 50.1% of outstanding shares of J Steel Group Pty Limited to drive our global expansion.
- May 2023
- Agreement on dissolution of the joint venture relationship due to differences in management policies.
- Recording an extraordinary losses of 1,367 million yen as a loss on liquidation of subsidiaries and associates for the consolidated financial results of the third quarter of the fiscal year ended August 31, 2023.
- June 2023
• Completion of transfer of J Steel shares. Dissolution of the joint venture relationship.
Going Forward
- J Steel continues operations as a user of the press-in method in the Oceania market.
- J Steel has an ongoing dispute with one of its customers regarding construction work for which J Steel received orders. The Company had a parent company guarantee covering the disputed transactions and will continue to cooperate with J steel in resolving the issue even after the dissolution of the joint venture agreement.
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FY2024 Forecast
9
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Disclaimer
Giken Ltd. published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 00:26:10 UTC.