FY2023 1st Quarter

Financial Results

(April 1, 2023 to June 30, 2023)

August 7, 2023

Contents

  1. Summary of Financial Results
  2. Qualitative Information
  3. Financial Highlights
  4. Operating Results and Forecasts for Reportable Segments
  5. Non-consolidatedOrders Received, Net Sales and Projects in Process
  6. Consolidated Financial Statements
  7. Non-consolidatedFinancial Statements

1

2

3

6

8

10

15

Disclaimer: This "Financial Results" is the English version of the Japanese "Kessan Tanshin" and "Kessan Setsumei Shiryo" rel eased on August 7, 2023. It was translated into English and presented solely for the convenience of users who are not familiar with Japanese. If there is any discrepanc y between Japanese "Kessan Tanshin" and "Kessan Setsumei Shiryo" and this document, the Japanese "Kessan Tanshin" and "Kessan Setsumei Shiryo" will prevail. This doc ument includes forward-looking statements based on the information available at the time the Japanese "Kessan Tanshin" and "Kessan Setsumei Shiryo" were rel eased. Actual results may vary from the forward-looking statements contained herein due to various factors. Obayashi Corporation (non-consolidated) is called the "Company" in these materials.

1 Summary of Financial Results

  1. Consolidated Financial Results
    ① Consolidated Business Results

(Percentages indicate the percentage year on year change)

Net Sales

Operating Income

Ordinary Income

Profit attributable to

owners of parent

Three Months Ended

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen in millions

％

June 30, 2023

487,444

18.8

4,167

(50.6)

9,315

(28.3)

6,591

(41.6)

June 30, 2022

410,331

(6.0)

8,434

(41.7)

12,992

(26.4)

11,279

(8.2)

(Note) Comprehensive income : [Three Months Ended June 30, 2023]45,715 million yen, 95.7% ; [Three Months Ended June 30, 2022] 23,358 million yen, 21.9%

Profit attributable to owners of

parent per Share (EPS)

Three Months Ended

Yen

June 30, 2023

9.19

June 30, 2022

15.73

②Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

Net Assets per Share

(BPS)

As of

Yen in millions

Yen in millions

％

Yen

June 30, 2023

2,700,819

1,066,290

38.0

1,431.98

March 31, 2023

2,609,929

1,035,881

38.2

1,390.77

(For reference) Equity (net assets less non-controlling interests) : [As of June 30, 2023] 1,026,515 million yen ; [As of March 31, 2023] 997,109 million yen

(2) Consolidated Forecast for FY2023

(Percentages indicate the percentage year on year change)

Profit attributable to

Profit attributable to

Net Sales

Operating Income

Ordinary Income

owners of parent per

owners of parent

Share (EPS)

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen

Fiscal Year Ending March 31, 2024

2,280,000

14.9

74,000

(21.1)

79,000

(21.6)

55,000

(29.2)

76.72

* There have been no revisions to the forecasts previously announced on May 11, 2023.

  1. Non-consolidatedFinancial Results
    ① Non-consolidated Business Results

(Percentages indicate the percentage year on year change)

Net Sales

Operating Income

Ordinary Income

Profit

Profit per Share

(EPS)

Three Months Ended

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen

June 30, 2023

341,301

15.7

(748)

-

5,153

(48.3)

3,855

(62.3)

5.38

June 30, 2022

295,089

(6.3)

3,960

(45.9)

9,965

(16.9)

10,231

12.7

14.27

②Non-consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

Net Assets per Share (BPS)

As of

Yen in millions

Yen in millions

％

Yen

June 30, 2023

2,002,099

779,511

38.9

1,087.41

March 31, 2023

1,943,098

758,739

39.0

1,058.29

(Reference) Equity (net assets less non-controlling interests) : [As of June 30, 2023]

779,511 million yen ; [As of March 31, 2023]

758,739 million yen

(4) Non-consolidated Forecast for FY2023

(Percentages indicate the percentage year on year change)

Net Sales

Operating Income

Ordinary Income

Profit

Profit per Share (EPS)

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen in millions

％

Yen

Fiscal Year Ending March 31, 2024

1,575,000

13.6

43,000

(28.3)

50,500

(29.1)

39,000

(37.7)

54.40

  • There have been no revisions to the forecasts previously announced on May 11, 2023.
  1. Dividends

Dividend per Share

Total dividends

Dividend Payout

Dividends-Net Assets

Ratio

End of 1Q

End of 2Q

End of 3Q

End of 4Q

Total

paid (full year)

Ratio (Consolidated)

(Consolidated)

Yen

Yen

Yen

Yen in millions

％

％

FY2022

―

21.00

―

21.00

42.00

30,157

38.8

3.1

FY2023 (including Forecast)

―

21.00

―

21.00

42.00

54.7

* There have been no revisions to the forecasts previously announced on May 11, 2023.

1

2. Qualitative Information

1) Overview of consolidated business results

Consolidated net sales for the first three months of the fiscal year under review (from April 1 to June 30, 2023) were 487.4 billion yen, an increase of 77.1 billion yen (18.8%) from the first quarter of the previous fiscal year. This was primarily due to the progress in large-scale projects in the domestic and overseas building construction businesses. Meanwhile, construction gross profit margin worsened in the domestic building construction business as the unprofitable projects for which the Company received orders in previous fiscal years progressed, and selling, general and administrative expenses rose mainly due to higher personnel expenses from base pay increases and acceleration of digital technology-related investment. As a result, operating income came to 4.1 billion yen, a decrease of 4.2 billion yen (50.6%) from the same period in the previous fiscal year, ordinary income to 9.3 billion yen, a decrease of 3.6 billion yen (28.3%), and profit attributable to owners of parent was 6.5 billion yen, a decrease of 4.6 billion yen (41.6%).

2) Outlook for consolidated financial position

Total assets as of June 30, 2023 increased by 90.8 billion yen (3.5%) compared with the balance at the end of the previous fiscal year to 2,700.8 billion yen. This was mainly due to increases in "Construction in progress" owing to the acquisition of commercial real estate and other factors as well as "Investment securities" accompanying an increase in the market value of shares that we own in our customers' businesses, while "Cash and deposits" declined.

Total liabilities as of June 30, 2023 increased by 60.4 billion yen (3.8%) compared with the balance at the end of the previous fiscal year to 1,634.5 billion yen. This was mainly attributable to increases in interest-bearing debt such as "Short-term loans payable" and "Long-term loans payable" as well as in "Advances received on uncompleted construction contracts." The balance of interest-bearing debt increased by 25.8 billion yen (7.7%) from the end of the previous fiscal year to 363.8 billion yen.

Total net assets as of June 30, 2023 increased by 30.4 billion yen (2.9%) compared with the balance at the end of the previous fiscal year, to 1,066.2 billion yen. This was mainly due to an increase in "Valuation difference on available-for-sale securities," while "Retained earnings" declined in anticipation of payment of dividends from surplus.

As a result, the equity ratio as of June 30, 2023 was 38.0%, down 0.2 percentage points from the end of the previous fiscal year.

3) Consolidate forecasts for fiscal year ending March 31, 2024

Consolidated forecasts for the full year (fiscal year ending March 31, 2024) have not been revised from those announced when financial results were announced on May 11, 2023.

2

  • Financial Highlights

(1) Financial Results for the Three Months Ended June 30, 2023 (YoY Comparison)

Consolidated

Three Months

Three Months

Change

%

Ended

Ended

Change

June 30, 2022

June 30, 2023

%

%

Net sales of completed

3,868

4,677

809

20.9

construction contracts

Building Construction

－

－

－

－

Civil Engineering

－

－

－

－

Gross profit on completed

8.1

312

6.9

324

11

3.7

construction contracts

Building Construction

－

－

－

－

Civil Engineering

－

－

－

－

Net sales of real estate business

234

196

(38)

(16.3)

and other

Gross profit on real estate business

26.4

61

23.3

45

(16)

(26.1)

and other

Net sales

4,103

4,874

771

18.8

Gross profit

9.1

374

7.6

370

(4)

(1.2)

Selling, general and

7.0

290

6.7

328

38

13.2

administrative expenses

154

169

15

(Personnel expenses)

(Others)

135

158

23

Operating Income

2.1

84

0.9

41

(42)

(50.6)

Non-operating expenses

7

6

(1)

(16.8)

Ordinary income

3.2

129

1.9

93

(36)

(28.3)

Extraordinary income

33

3

(30)

(90.2)

Extraordinary loss

4

5

0

19.3

Income before income taxes

3.9

158

1.9

90

(68)

(42.9)

Total income taxes

42

22

(20)

(47.3)

Profit

116

68

(47)

(41.2)

Profit attributable to non-controlling

3

2

(0)

(29.2)

interests (deduction)

Profit attributable to

owners of parent

2.7

112

1.4

65

(46)

(41.6)

(Non-consolidated: Profit)

(Yen in 100 millions)

Non-consolidated

Three Months

Three Months

Change

%

Ended

Ended

Change

June 30, 2022

June 30, 2023

%

%

2,910

3,368

458

15.8

2,222

2,678

456

20.5

688

689

1

0.3

8.0

233

6.3

210

(22)

(9.8)

5.9

132

4.2

111

(20)

(15.4)

14.7

101

14.3

98

(2)

(2.5)

40

44

3

8.8

28.3

11

23.4

10

(1)

(10.0)

2,950

3,413

462

15.7

8.3

245

6.5

220

(24)

(9.8)

7.0

205

6.7

228

23

11.2

101

108

6

103

120

16

1.3

39

(0.2)

(7)

(47)

－

4

2

(1)

(34.3)

3.4

99

1.5

51

(48)

(48.3)

33

1

(31)

(94.4)

2

5

2

87.6

4.4

129

1.4

47

(81)

(63.1)

27

9

(18)

(66.0)

－

－

－

－

－

－

－

－

3.5

102

1.1

38

(63)

(62.3)

Orders Received

Consolidated

Three Months

Three Months

Change

%

Ended

Ended

Change

June 30, 2022

June 30, 2023

Building Construction

2,949

4,342

1,392

47.2

Domestic

1,936

2,578

641

33.1

Overseas

1,012

1,764

751

74.2

Civil Engineering

824

820

(4)

(0.5)

Domestic

575

621

45

7.9

Overseas

248

199

(49)

(20.0)

Construction Total

3,774

5,162

1,388

36.8

Domestic

2,512

3,199

686

27.3

Overseas

1,261

1,963

701

55.6

Real Estate Business and Other

138

186

47

34.2

Total Orders received

3,913

5,348

1,435

36.7

(Yen in 100 millions)

Non-consolidated

Three Months

Three Months

Change

%

Ended

Ended

Change

June 30, 2022

June 30, 2023

2,069

2,445

375

18.1

1,876

2,436

560

29.9

193

8

(185)

(95.6)

443

555

112

25.3

426

397

(29)

(6.8)

16

157

141

847.9

2,513

3,000

487

19.4

2,302

2,833

531

23.1

210

166

(43)

(20.8)

40

44

3

8.8

2,553

3,044

490

19.2

Interest-bearing Debt Balances

Consolidated

Results

Results

%

As of

As of

Change

Change

March 31, 2023

June 30, 2023

Interest-bearing debt

2,612

2,874

262

10.0

(except nonrecourse loans)

Nonrecourse loans

766

763

(3)

(0.5)

Total Interest-bearing debt

3,379

3,638

258

7.7

(Yen in 100 millions)

Non-consolidated

Results

Results

%

As of

As of

Change

Change

March 31, 2023

June 30, 2023

1,946

2,061

114

5.9

－

－

－

－

1,946

2,061

114

5.9

3

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Disclaimer

Obayashi Corporation published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2023 05:50:05 UTC.