【Materials for Investor Briefing 】
FY2023 Results
and Annual Forecasts FY2024
MAY 24, 2024
- SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.
CORPORATE PHILOSOPHY
SEM VALUE
Recognizing its social mission and responsibility, the Sumitomo Densetsu Group:
-Aims to develop a favorable environment to support a prosperous and secure society.
-Values its technical prowess and the customer's confidence in it and provides high quality engineering service that gives a high level of customer satisfaction.
-Practices fair and transparent management based on compliance in keeping with a high standard of corporate ethics.
-Seeks to create a vibrant and pleasant business environment while fostering employees rich in creativity.
SEM VALUE
Sincerity
Meet the needs of society in a cordial attitude.
Meet the needs of customer and society, place yourself in the other person's position, and perform tasks properly and actively with sincerity and passion.
Teamwork
Recognize diversity and show a team effort.
Show our integrated strengths and recognize diversity and values, thereby strengthening unity and enabling further growth.
Creation | |
Create a sustainable future with advanced | |
technologies. | |
Develop our established technologies and continue to challenge creation of a sustainable | |
society. | 2 |
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved. |
Agenda | SEM VALUE |
1.FY2023 Results
2.FY2024 Forecast
3. FY2024 Forecast by Works Type
4.Medium term Management Plan VISION 24(FY2020-FY2024)
5.Policy on the Distribution of Profits to Shareholders
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved. | 3 |
1.FY2023 Results
- Explanation of Business Results
SEM VALUE
Orders received, Net sales, ordinary profit, and Backlog of Orders reached a record high.
[Orders Received・Net Sales]increase year on year (YoY).
Steady growth in large-scale projects such as Power Transmission works for private sector and electricity companies as well as General Electrical works for data centers.
[Operating profit・Ordinary profit]decrease year on year (YoY).
There were individual unprofitable projects and an increase in expenses associated with investments in human resources and technologies, such as work style reforms and IT investment.
■ FY2023
FY2022 | FY2023 | Growth | |||||
(¥bn) | Actual① Plan ② | Actual ③ | Difference | Growth | Percentage | ||
③-② | ③-① | ||||||
Orders Received | 188.8 | 190.0 | 225.9 | 35.9 | 37.1 | 19.6% | |
Net Sales | 175.1 | 185.0 | 185.5 | 0.5 | 10.4 | 5.9% | |
Operating profit | 13.46 | 13.50 | 12.55 | △0.95 | △0.91 | △6.8% | |
Margin | 7.7% | 7.3% | 6.8% | △0.5% | △0.9% | ||
Ordinary profit | 14.39 | 14.50 | 13.50 | △1.00 | △0.89 | △6.2% | |
Margin | 8.2% | 7.8% | 7.3% | △0.5% | △0.9% | ||
Profit attributable to | 9.38 | 9.50 | 10.06 | 0.56 | 0.68 | 7.2% | |
owners of parent | |||||||
5.4% | 5.1% | 5.4% | 0.3% | 0.1% | |||
Margin | |||||||
Backlog of Orders | 122.4 | 162.8 | 40.3 | 33.0% | |||
■ Year-end dividend for FY2023 was ¥59 per share |
(up ¥12 per share from the forecast at the start of the fiscal year), annual dividend of ¥106 per share
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved. | 4 |
2.FY2024 Forecast | SEM VALUE |
- Business EnvironmentOverall steady growth
Expected demand:Growth areas such as data centers, redevelopment projects in the metropolitan areas, carbon-neutral investments including renewable energy, information &communication-related investments for the creation of ICT environment, investments related to Expo 2025 Osaka, Kansai.
Potential risks:Increased costs due to progression of the weak yen, high prices of materials, equipment, and cables, soaring labor costs, and rush construction due to delays in the progress of our construction work associated with delays in general contractor's processes.
- Consolidated Forecast for FY2024:
Our forecast for FY2024 is in line with the numerical targets set forth in VISION 24
VISION24 | |||||||
(¥bn) | 2020 | 2021 | 2022 | 2023 | FY2024 | Growth(%) | |
Forecast | |||||||
Orders Received | 162.1 | 179.0 | 188.8 | 225.9 | 220.0 | △2.6% | |
Net Sales | 154.1 | 167.6 | 175.1 | 185.5 | 200.0 | 7.8% | |
Operating profit | 11.32 | 13.01 | 13.46 | 12.55 | 14.50 | 15.6% | |
Margin | 7.3% | 7.8% | 7.7% | 6.8% | 7.3% | ||
Ordinary profit | 11.94 | 13.90 | 14.39 | 13.50 | 15.00 | 11.1% | |
Margin | 7.7% | 8.3% | 8.2% | 7.3% | 7.5% | ||
Profit attributable | |||||||
to owners of | 8.05 | 9.14 | 9.38 | 10.06 | 10.00 | △0.6% | |
parent | |||||||
Margin | 5.2% | 5.5% | 5.4% | 5.4% | 5.0% | ||
- Dividends Forecast for FY2024
An annual dividend of ¥114 per share (interim ¥57) is planned, up¥8 per share from FY2023.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved. | 5 |
3.Net Sales for FY2024 by WorksSEMTypeVALUE
- Net Sales for FY2023 Results by Works Type
(Our forecast for FY2024 are explained on the following pages by Works Type)
Power Transmission | Significant increase YoY due to progress on large-scale Backlog of Orders in |
projects for electricity companies, electric furnace projects for private sector, and | |
renewable energy projects. |
General Electrical
Info & Comms
Facility & HVAC
J a p a n :Increased YoY due to progress of large-scale projects such as data centers and redevelopment projects in the metropolitan areas
Overseas :Decreased YoY due to a decline in projects for Japanese companies mainly following the rapid depreciation of the yen.
Communication System: Secured the same level as FY2022 mainly due to projects of digital radio communication system for fire and ambulance service offsetting the decrease of mobile base station projects
Information & Telecommunication: Increased YoY due to plant, medical, and educational facility-relatedprojects.
Increased YoY due to a progress of Backlog of Orders in HVAC division.
Net Sales for by Works | 2020 | 2021 | 2022 | 2023 | FY22→23 | 2024 | FY23→24 | |
Type(¥bn) | Growth | Forecast | Growth | |||||
Power Transmission | 20.9 | 20.3 | 19.1 | 24.5 | 5.4 | 30.0 | 5.5 | |
General Electrical | 87.1 | 100.7 | 106.0 | 111.1 | 5.2 | 116.0 | 4.9 | |
Non-consolidated + | 68.1 | 76.8 | 76.6 | 83.2 | 6.6 | 85.0 | 1.8 | |
Japanese Subsidiaries | ||||||||
Overseas Subsidiaries | 19.0 | 23.8 | 29.3 | 27.9 | △ 1.4 | 31.0 | 3.1 | |
Info & Comms | 27.7 | 27.5 | 28.5 | 29.6 | 1.1 | 32.0 | 2.4 | |
Facility & HVAC | 10.1 | 10.6 | 12.1 | 12.4 | 0.4 | 14.0 | 1.6 | |
Others | 8.3 | 8.6 | 9.5 | 7.8 | △ 1.6 | 8.0 | 0.2 | |
TOTAL | 154.1 | 167.6 | 175.1 | 185.5 | 10.4 | 200.0 | 14.5 | |
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved. | 6 |
3-1.Power Transmission Works SEM VALUE
Energy
Provide high-quality, reliable electric transmission technologies to meet the needs of customers
Electricity is vital to modern society. Sumitomo Densetsu has a range of experience in the
construction of the facilities required for the transmission of "electricity," including overhead
and underground transmission, electrical substations, and electrical power distribution systems. We are also engaged in the construction of interconnected systems to supply electricity from new energy facilities, including photovoltaic power stations, wind power
Ⓒ stations and hydroelectric power stations. | For more details, please refer to the link below | 7 |
https://www.sem.co.jp/english/business/ |
3-1.Power Transmission FY2024 ForecastSEM VALUE
- Summary of the FY2024
Both Orders received and Net sales are planned to increase YoY
Orders received・Net Sales(bn) | Orders received |
Net Sales |
60.0
50.0
40.0
30.0
20.0
10.0
0.0
50.0
34.2 | ||||||
30.0 | ||||||
18.6 20.9 | 24.2 | 24.5 | ||||
19.8 20.3 | 19.1 | |||||
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
Forecast |
We will make it our highest priority to acquire large-scale private transmission line projects related to renewable energy. We will also continue to focus on acquiring projects for electricity companies and projects for private sector such as those for steel manufacturers.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved. | 8 |
3-2.General Electrical Works
SEM VALUE
Environment | Electric | Overseas |
Electric : Provide speedy and high-qualityservices for electrical systems that are becoming increasingly important.
Overseas : 50 years of experience in Southeast Asia. Contributing to the development of customers and regions.
Environment:Contribute to the use of energy for a new age, such as solar, storage cell and biomass systems.
Engineering : Offer highly satisfactory engineering expertise in control/management systems such as FMS and BM
Sumitomo Densetsu has been implementing speedy and high-quality planning, design, construction and maintenance, making use of our high technological capabilities for various electrical systems (high-voltage,low-voltage, disaster preventive and security). We will meet any kind of needs based on substantial experience both inside and outside Japan.
Ⓒ
3-2.General Electrical Works FY2023SEMForecastVALUE
- Summary of the FY2024
Orders received are planned to decrease YoY, Net sales are planned to increase YoY
Orders received・Net Sales(bn) | Orders received | |||||||||||||||||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||||||||||||||||
160 | ||||||||||||||||||||||||||||||||||||||
138.4 | ||||||||||||||||||||||||||||||||||||||
140 | 112.0 | |||||||||||||||||||||||||||||||||||||
112.2 | ||||||||||||||||||||||||||||||||||||||
108.8 | ||||||||||||||||||||||||||||||||||||||
116.0 | ||||||||||||||||||||||||||||||||||||||
120 | 111.1 | |||||||||||||||||||||||||||||||||||||
106.0 | ||||||||||||||||||||||||||||||||||||||
100.7 | ||||||||||||||||||||||||||||||||||||||
100 | 93.4 | |||||||||||||||||||||||||||||||||||||
87.1 | ||||||||||||||||||||||||||||||||||||||
80 | ||||||||||||||||||||||||||||||||||||||
60 | ||||||||||||||||||||||||||||||||||||||
40 | ||||||||||||||||||||||||||||||||||||||
34.7 | ||||||||||||||||||||||||||||||||||||||
20 | 31.0 | 31.0 | over | |||||||||||||||||||||||||||||||||||
20.6 | 19.0 | 26.7 | 23.8 | 28.2 | 29.3 | 27.9 | seas | |||||||||||||||||||||||||||||||
0 | ||||||||||||||||||||||||||||||||||||||
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | ||||||||||||||||||||||||||||||||||
Forecast |
Japan : In addition to growth areas such as data centers, we will focus on acquiring projects expecting continued orders into the future such as plants.
Overseas: We will focus on semiconductor-related and data center projects for Japanese companies. It is vital that we expand projects for non-Japanese companies.
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Sumitomo Densetsu Co. Ltd. published this content on 24 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 June 2024 01:39:06 UTC.