Obayashi Group Medium-Term Business Plan 2015

Transcription

1 Obayashi Group Medium-Term Business Plan 2015 (FY FY2017) Toward social safety, security and further stable management Evolution 2015

2 Report from Medium-Term Business Plan 2012 (FY2012 to FY2014) Net sales were well over initial target because of the increase of net sales in construction business primarily due to the recovery of private capital expenditures and reconstruction from Great East Japan Earthquake. Consolidated operating margin did not reach the target level, however, construction gross margin shows a recovery trend due to the reduced influence of increased construction costs. 01

3 Medium-Term Business Plan 2015 Market Trend In Japan, construction investment is likely to be maintained at a certain level due to infrastructure development aiming for national resilience and industrial competitiveness as well as the demands for urban reconstruction in the Tokyo metropolitan area and regional revitalization. However, the market is not expected to expand in the medium and long term. In the construction industry, where decreasing workforce is a concern, enhancing productivity is imperative by securing and training human resources as well as innovating a production system fusing manpower and technology. Overseas, especially in Southeast Asia, North America and Oceania, our priority region, construction investment is expected to expand due to infrastructure and urban development. Ⅰ Initiatives under Evolution

4 Ⅱ Principal Management Indicators Medium-Term Business Plan

5 Ⅱ Principal Management Indicators ( EBITDA is newly adopted) Medium-Term Business Plan2015 Due to capital investment in new businesses (renewable energy business etc.), depreciation and amortization increase. EBITDA (earnings before interest, taxes, depreciation and amortization) is adopted as a management indicator to evaluate profitability on a cash flow basis. Unit: 100 *A model case is shown for reference in building and civil construction businesses. million yen 400 Civil engineering Building construction Real estate development New businesses (five (5 年 years 後 ) later) 2024 ( ten (10 years 年 後 ) later ) Changes of "EBITDA" by business unit (Unit: 100 million yen) FY Building construction Civil engineering Subtotal Real estate development New businesses Others Total EBITDA Depreciation and amortization 04

6 Ⅲ-1 Management strategy - Investment & Finance Medium-Term Business Plan Investment to Diversify the Earnings Base R&D of construction technologies Real estate development business and new businesses (renewable energy business etc.) [Capital Expenditure Plan] Construction machinery and business facilities R&D and ICT Real estate development business* New businesses Plan Average (Cumulative) per year (Unit: 100 million yen) Result Average Plan Average (Cumulative) per year (Cumulative) per year , Total 1, , , * New investment in real estate for lease (excluding real estate for sale) 05

7 Ⅲ-1 Management strategy - Investment & Finance Medium-Term Business Plan Maintain balance between investment and financial soundness Improve cash flow and ensure financial soundness by the effective use of assets. (Unit: 100 million yen) Cash flow from operating activities 1 Cash flow from investing activities* 2 Free cash flow 1+2 FY FY2014 (3 years) Average Forecast 400 (320) 80 FY FY2017 (3 years) Average Plan 690 (480) 210 * Sales of portfolio assets are deducted from new investment in cash flow from investing activities End of March in 2015 End of March in 2018 Forecast Plan Interest-bearing debt (of which nonrecourse loans) 4,300 About 4,000 (900) (1,100) 06

8 Ⅲ-2 Management strategy - Businesses Medium-Term Business Plan Building construction business (1) Bolster competitiveness in growing markets such as Tokyo metropolitan and renewal areas making use of overall capabilities of design, technology and development. Actualize stable earnings by offering value-added services utilizing advanced engineering technology. (2) Develop labor-saving and short-period construction methods, optimize ICT including BIM and systematically ensure production capacity by securing and training skilled construction workers. (3) Stabilize management of overseas building construction business through localized business development by overseas subsidiaries and close cooperation between domestic and overseas offices. 07

9 III-2 Management strategy - Businesses Medium-Term Business Plan Civil engineering business (1) Promote planned marketing focusing on projects such as new infrastructure improvement that requires advanced technology, renewal of aging infrastructure and measures for disaster prevention and mitigation. (2) Improve production capacity through innovative design and flexible construction plans, labor-saving by the promotion of precast products and adoption of production systems that optimize ICT such as CIM. (3) Stabilize earnings of overseas civil engineering business through business development tailored to regional environment and cooperation between domestic and overseas offices. 08

10 III-2 Management strategy - Businesses Medium-Term Business Plan Real estate development business (1) Add value to domestic leasing business, a major source of earnings. (Priority area: 5 major wards in the Tokyo metropolitan area) [Changes of floor space of office buildings for lease by region] Total 228 Total 260 Total End 2012 of 年 March 3 月 末 End 2015 年 of 3 March 月 末 2018 End 年 of 3 月 March 末 in 2012 in 2015 in (3 年 2018 後 ) (in 3 years) Total End 年 3 of 月 March 末 (5 in 年 2020 後 ) (in 5 years) (Unit: 1,000 sqm) 東 5 京 major 都 5 wards 区 in the Tokyo metropolitan area 東 Tokyo 京 ( 都 (except 5 区 5 以 major 外 ) wards) Osaka 阪 地 Other 主 major 要 都 市 regional cities (2) Increase earnings by diversifying leasing business (residence and distribution) and investing in the promotion of sales-in-lots business in urban areas. (3) Improve profitability by enhancing cooperation with construction business and proposal capability. 09

11 Ⅲ-2 Management strategy - Businesses Medium-Term Business Plan New businesses (1) Expand new businesses focusing on renewable energy business following solar power. Total 200 MW Wind, biomass, geothermal power generation etc. [Changes of renewable energy power generation in volume] バイオマス Biomass 他 etc. Wind power 太 陽 Solar 光 power 70 Total 140 MW End 年 of 3 March 月 末 in 2018 End 年 3 of 月 March 末 in 2020 End 年 3 月 of 末 March in 2015 ( 年 後 (in ) 3 years) (52020 年 後 )(in 5 years) (2) Establish a new business model and create sources of earnings utilizing possessed technology and know-how. Agricultural and hydrogen-related businesses etc. (3) Ensure earnings by reinforcing initiatives toward PPP projects (Unit: Megawatt) 10

12 Ⅲ-3 Management strategy - Technology Medium-Term Business Plan Promote Technology innovation responding to social issues and customers needs. Environment measures, renewal, realization of safety and security, short-period and low-cost construction, automation and labor-saving etc. 2. Promote research and development of technology leading to the growth in construction business and new businesses. 3. Expand engineering business by enhancing sales and technology proposal capability. 4. Reinforce initiatives toward nuclear power related projects inside and outside the country. 11

13 Ⅲ-4 Management strategy - Human resources Medium-Term Business Plan Enrich human resources as a base of business strategy. Global expansion Expansion of new businesses Diversity Management 2. Secure certified personnel and improve employees skill putting emphasis on requisite techniques to execute operations. 3. Secure young skilled construction workers by making the construction industry more attractive. 12

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