Consolidated Financial Results for the Nine Months Ended December 31, 2017 [Japanese GAAP]

Transcription

1 Disclaimer: This financial information, a digest of Taisei Corporation's "Consolidated Financial Results for the Nine Months Ended December 31, 2017" ("Kessan Tanshin") disclosed at the Tokyo Stock Exchange on February 8, 2018 was translated into English and presented solely for the convenience of non-japanese speaking users. If there is any discrepancy between Japanese "Kessan Tanshin" and this document, Japanese "Kessan Tanshin" will prevail. February 8, 2018 Consolidated Financial Results for the Nine Months Ended December 31, 2017 [Japanese GAAP] Listed company name: Taisei Corporation Stock exchange listings: Tokyo Stock Exchange, 1st Section Nagoya Stock Exchange, 1st Section Stock code: 1801 Location of headquarters: Tokyo, Japan Website: Representative: Yoshiyuki Murata, President and Chief Executive Officer Contact: Shuichi Okuda, General Manager of Accounting Department TEL: (from overseas) Scheduled date for submission of quarterly report: February 9, 2018 Scheduled date for dividend payment: Supplementary materials for quarterly financial summaries: Yes Quarterly financial results briefing: Yes (for analysts and institutional investors) 1. Consolidated financial results for the Nine Months Ended December 31, 2017 (From April 1, 2017 to December 31, 2017) (1) Operating results (cumulative total) (Millions of yen, rounded down) (Percentages indicate changes from the same period in the previous fiscal year.) Net sales Operating income Ordinary income Net income attributable to owners of parent FY2017(Third quarter-end) As of December 31, ,082, , , , FY2016(Third quarter-end) As of December 31, ,019,026 (8.6) 104, , , (Note) Comprehensive income: 3rd Quarter of FY2017 (As of December 31, 2017) 108,870 million yen rd Quarter of FY2016 (As of December 31, 2016) 81,666 million yen Net income per share Diluted net income per share yen Yen FY2017(Third quarter-end) As of December 31, FY2016(Third quarter-end) As of December 31, (Note) We conducted 1-for-5 consolidation of shares on October 1, 2017, and net income per share is calculated based on the assumption that the consolidation of shares was executed at the beginning of FY2016. (2) Financial position (Millions of yen, rounded down) Total assets Net assets Equity ratio FY2017(Third quarter-end) As of December 31, ,753, , FY2016 (full year) As of March 31, ,760, , (Reference) Shareholders equity: As of December 31, ,340 million yen As of March 31, ,779 million yen

2 2. Dividends Dividends per share (yen) First quarter-end Interim-end Third quarter-end Year-end Total (Full year) FY FY FY2017 (forecast) (Note) 1. Revisions of projected dividends most recently announced: None 2. The Company conducted 1-for-5 consolidation of shares on October 1, Therefore, the forecast amount of year-end dividends per share for FY2017 presented above reflects the impact of the consolidation of shares and the amount of dividends for the full year is not presented (indicated by - ). The forecast amount of year-end dividends per share for FY2017 without reflecting the impact of the consolidation of shares is 10 and the amount of dividends per share for the full year of FY2017 is 20. For details, please refer to Disclaimer regarding appropriate use of forecasts and related points of note. 3. Consolidated results forecast for the fiscal year ending March 31, 2018 (FY2017) (From April 1, 2017 to March 31, 2018) (Millions of yen, rounded down) (Percentages indicate the rate of change from the same period of the previous fiscal year) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share yen Full year 1,580, ,000 (0.6) 141,000 (2.5) 97, (Note) 1. Revisions of consolidated forecasts most recently announced: None 2. The forecast amount of net income per share for the full year of FY2017 reflects the impact of consolidation of shares. For details, please refer to Disclaimer regarding appropriate use of forecasts and related points of note *Notes (1) Changes in principal subsidiaries during the quarter under review (Changes in specified subsidiaries accompanying changes in scope of consolidation): None (2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting principles, changes in accounting estimates and restatements (i) Changes in accounting principles due to revisions to accounting standards, etc.: None (ii) Changes due to accounting principles other than (i): None (iii) Changes in accounting estimates: None (iv) Restatements: None (4) Number of shares outstanding (common stock) i. Number of shares outstanding at the end of period (including treasury stock) As of December 31, ,541,172 shares As of March 31, ,350,572 shares ii. Number of treasury stock at the end of period As of December 31, ,109 shares As of March 31, ,635 shares iii. Average number of shares during the period (quarterly cumulative total) Third quarter ended December 31, ,385,789 shares Third quarter ended December 31, ,999,666 shares (Notes) We conducted 1-for-5 consolidation of shares on October 1, 2017, and Number of shares outstanding at the end of period, Number of treasury stock at the end of period and Average number of shares during the period are calculated based on the assumption that the consolidation of shares was executed at the beginning of previous fiscal year.

3 * This financial results report is not subject to the quarterly auditing procedures. * Disclaimer regarding appropriate use of forecasts and related points of note We conducted 1-for-5 consolidation of shares on October 1, 2017, with approved of consolidation of shares at the General meeting of shareholders held on June 29, For reference purposes, when converted to the amount before the consolidation of shares, dividends per share and net income per share are as follows. 1.Dividend forecast for FY2017 Dividends per Share Interim-end:10 yen Year-end (Forecast):10 yen Total (Full year):20 yen 2.Consolidated financial forecast for FY2017 Net income per Share Full Year :85.90 yen Earnings forecasts in this document are based on information available at present and logical assessments and do not represent any promise by the Company. Actual results may be materially different from expectations due to a variety of factors.

4 Overview of Consolidated Earnings Forecasts for Fiscal Year 2017 ending in March 2018 (Unit: 100 million yen; amounts less than 100 million yen are rounded up to the nearest 100 million yen (partially adjusted for fractions)) First three quarters Full fiscal year Previous fiscal year (From April 1, 2016 to December 31, 2016) Current fiscal year (From April 1, 2017 to December 31, 2017) Previous fiscal year (From April 1, 2016 to March 31, 2017) Current fiscal year (From April 1, 2017 to March 31, 2018) Result Result Over previous Result Forecast * fiscal year Over previous fiscal year Amount of orders received 11,850 12, ,550 16,300 (250) Civil engineering 3,033 3, ,276 4,100 (176) Building construction 8,000 7,801 (199) 11,015 10,900 (115) Real estate development (28) 1,153 1, Other (8) (6) Net sales 10,190 10, ,873 15, Civil engineering 2,881 2, ,229 4, Building construction 6,503 7, ,386 10, Real estate development (26) 1,152 1,100 (52) Other (8) (6) 16.1 Gross Profit 1,642 Civil engineering Building construction Real estate 21.8 development 163 Other SG&A expenses (5.9) (598) Operating income , , (5.5) (597) , (1.4) (7) 0.7 (1) 2.7 (1) , , (5.7) (855) 14,2 2, , (5.3) (850) Non-operating income (expenses) (23) (28) (Net financial revenue) Ordinary income , ,176 Extraordinary income (loss) 25 (4) (29) (94) (10) 84 Income before income taxes and minority interests , ,172 Income taxes and others (354) (362) (8) (448) (430) 18 Net income (0.2) , , , , , , (1.0) (13) (1.4) (48) (0.4) 84 (2.5) (40) (7.9) (9) (0.6) (8) (0.8) (36) (0.2) Net income (loss) attributable to non-controlling interests (0) (0) 0 2 (2) Net income attributable to owners of parent * The Forecasts refer to the revised earnings forecasts outlined on November 10,

5 Overview of Non-consolidated Earnings Forecasts for Fiscal Year 2017 ending in March 2018 (Unit: 100 million yen; amounts less than 100 million yen are rounded up to the nearest 100 million yen (partially adjusted for fractions)) First three quarters Full fiscal year Previous fiscal year (From April 1, 2016 to December 31, 2016) Current fiscal year (From April 1, 2017 to December 31, 2017) Previous fiscal year (From April 1, 2016 to March 31, 2017) Current fiscal year (From April 1, 2017 to March 31, 2018) Result Result Over previous Result Forecast * fiscal year Over previous fiscal year Amount of orders received 9,707 10, ,482 13,200 (282) Civil engineering 2,128 2, ,153 2,950 (203) Domestic 2,382 2, ,411 2,600 (811) Overseas (254) (258) Building construction 7,424 7,175 (249) 10,088 10,000 (88) Domestic 7,282 7,010 (272) 9,945 9,600 (345) Overseas Total 9,552 10, ,241 12,950 (291) Real estate development (23) Other (7) (12) Net sales 8,163 8, ,767 12, Civil engineering 2,166 2,109 (57) 3,125 3,100 (25) Domestic 2,053 1,955 (98) 2,980 2,880 (100) Overseas Building construction 5,843 6, ,402 9, Domestic 5,658 6, ,191 9,330 1,139 Overseas (160) (141) Total 8,009 8, ,527 12, Real estate development (20) (28) Other (7) (12) Gross Profit ,317 Civil engineering Building construction Total ,262 Real estate development Other SG&A expenses (4.9) (405) Operating income , , (4.6) (404) (0.1) (1.5) (1) 97 (7.0) (15) 2.1 (0) , , , (4.9) (580) , ,800 17, , , (4.6) (580) 9.6 1,220 Non-operating income (expenses) (67) (70) (Net financial revenue) (40) (45) Ordinary income , ,028 (0.6) , ,230 Extraordinary income (loss) 26 (5) (31) 23 (10) (33) Income before income taxes , ,023 (1.0) (15) , ,220 Income taxes and others (308) (309) (1) (378) (370) 8 Net income (0.7) (16) * The Forecasts refer to the revised earnings forecasts outlined on November 10, (0.8) 34 (1.2) (42) (0.3) 101 (0.7) 59 (5.1) (20) (3.2) (5) 0.3 (0) (0.5) 34 (1.1) (36) (1.4) (69) (1.0) (61)

6 Quarterly consolidated financial statements (1) Quarterly consolidated balance sheet (Millions of yen) Previous fiscal year As of March 31, 2017 Third Quarter of FY2017 As of December 31, 2017 Assets Current assets Cash and deposits 535, ,061 Notes receivable-trade and accounts receivable from completed construction contracts 420, ,363 Costs on uncompleted construction contracts 67,053 91,750 Real estate for sale and development projects in progress 102, ,860 Other inventories 3,462 4,601 Other 94,888 93,488 Allowance for doubtful accounts (297) (130) Total current assets 1,223,572 1,179,995 Noncurrent assets Property, plant and equipment 175, ,163 Intangible assets 5,084 5,848 Investments and other assets Investment securities 309, ,272 Net defined benefit asset 10,777 10,846 Other 38,111 34,481 Allowance for doubtful accounts (2,464) (1,846) Total investments and other assets 355, ,754 Total noncurrent assets 536, ,765 Total assets 1,760,078 1,753,761

7 (Millions of yen) Previous fiscal year As of March 31, 2017 Third Quarter of FY2017 As of December 31, 2017 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 424, ,082 Short-term loans payable 114,600 84,377 Short-term non-recourse loans 100 3,000 Current portion of bonds 10,000 10,000 Current portion of non-recourse bonds 500 Advances received on uncompleted construction contracts 175, ,203 Provision for warranties for completed construction 3,391 3,156 Provision for loss on construction contracts 15,666 11,596 Provision for loss on order received Other 243, ,819 Total current liabilities 986, ,750 Noncurrent liabilities Bonds payable 30,000 40,000 Non-recourse bonds payable 500 Long-term loans payable 79,995 94,622 Long-term non-recourse loans payable 2,950 Provision for directors' retirement benefits Provision for loss on business of subsidiaries and associates Provision for environmental measures Provision for loss on Anti-Monopoly Act 11,035 11,035 Net defined benefit liability 41,262 41,862 Other 35,939 47,790 Total noncurrent liabilities 202, ,780 Total liabilities 1,189,264 1,124,531 Net assets Shareholders' equity Capital stock 122, ,742 Capital surplus 85,150 60,198 Retained earnings 278, ,618 Treasury stock (1,110) (1,487) Total shareholders' equity 485, ,072 Accumulated other comprehensive income Valuation difference on available-for-sale securities 82, ,586 Deferred gain (loss) on hedges (158) (114) Revaluation reserve for land Foreign currency translation adjustment (2,969) (3,094) Remeasurements of defined benefit plans 3,275 5,117 Total accumulated other comprehensive income 83, ,267 Non-controlling interests 2,034 1,889 Total net assets 570, ,229 Total liabilities and net assets 1,760,078 1,753,761

8 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income First three Quarters of FY2017 (April 1, 2017 to December 31, 2017) (Millions of yen) Net sales From April 1, 2016 to December 31, 2016 From April 1, 2017 to December 31, 2017 Net sales of completed construction contracts 926, ,532 Net sales of development business and other 92,650 90,452 Total net sales 1,019,026 1,082,985 Cost of sales Cost of sales of completed construction contracts 782, ,523 Cost of sales on development business and other 72,129 70,018 Total cost of sales 854, ,542 Gross profit Gross profit on completed construction contracts 143, ,008 Gross profit on development business and other 20,520 20,434 Total gross profit 164, ,443 Selling, general and administrative expenses 59,836 59,704 Operating income 104, ,738 Non-operating income Interest income Dividends income 2,954 3,243 Foreign exchange gains 3,404 Other 1,500 1,113 Total non-operating income 8,302 4,824 Non-operating expenses Interest expenses 1,692 1,322 Taxes and dues 748 Other Total non-operating expenses 3,068 1,934 Ordinary income 109, ,629 Extraordinary income Gain on sales of investment securities 2, Other Total extraordinary income 3, Extraordinary loss Impairment loss 373 Loss on retirement of non-current assets Loss related on Anti-Monopoly Act 676 Other Total extraordinary loss 1, Income before income taxes and minority interests 112, ,230 Income taxes 35,353 36,238 Net income 76,741 80,992 Net income attributable to non-controlling interests Net income attributable to owners of parent 76,650 80,961

9 Quarterly consolidated statement of comprehensive income First three Quarters of FY2017 (April 1, 2017 to December 31, 2017) (Millions of yen) From April 1, 2016 to December 31, 2016 From April 1, 2017 to December 31, 2017 Net income 76,741 80,992 Other comprehensive income Valuation difference on available-for-sale securities 4,543 26,120 Deferred gain (loss) on hedges 2 6 Foreign currency translation adjustment (913) (29) Remeasurements of defined benefit plans 2,198 1,837 Share of other comprehensive income of associates accounted for using equity method (905) (55) Total other comprehensive income 4,925 27,878 Comprehensive income 81, ,870 Comprehensive income attributable to owners of the parent 81, ,846 Comprehensive income attributable to non-controlling interests (116) 24

10 (3) Segment Information Reporting segment information (net sales and income (loss)) First three Quarters of FY 2016 (April 1, 2016 December 31, 2016) Net sales Civil engineering Reporting Segment Building construction Real estate development Subtotal Others (Note 1) Total Adjustments (Note 2) (Millions of yen) Amounts on Quarterly consolidated income statement (Note 3) Sales on third party Intersegment sales and transfers 288, ,331 74,885 1,013,305 5,721 1,019,026 1,019,026 15,960 26,865 4,407 47,233 1,755 48,988 (48,988) Total 304, ,197 79,293 1,060,538 7,476 1,068,015 (48,988) 1,019,026 Segment income 33,598 62,656 7, , ,990 (594) 104,396 Note 1: Businesses that cannot be classified into the company s reporting segments are shown as Others. This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and also, leisure-related business and other service business. Note 2: The adjustments of segment income, (594 million yen), include elimination of intra-segment transaction. Note 3: The segment income is adjusted in accordance with operating income on quarterly consolidated income statement. Reporting segment information (net sales and income (loss)) First three Quarters of FY 2017 (April 1, 2017 December 31, 2017) Net sales Civil engineering Reporting Segment Building construction Real estate development Subtotal Others (Note 1) Total Adjustments (Note 2) (Millions of yen) Amounts on Quarterly consolidated income statement (Note 3) Sales on third party Intersegment sales and transfers 295, ,287 72,259 1,078,078 4,906 1,082,985 1,082,985 18,511 28,842 3,577 50,932 1,940 52,872 (52,872) Total 314, ,130 75,837 1,129,011 6,846 1,135,858 (52,872) 1,082,985 Segment income 44,611 62,142 7, , , ,738 Note 1: Businesses that cannot be classified into the company s reporting segments are shown as Others. This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and also, leisure-related business and other service business. Note 2: The adjustments of segment income, 41 million yen, include elimination of intra-segment transaction. Note 3: The segment income is adjusted in accordance with operating income on quarterly consolidated income statement.

11 (Reference) Quarterly non-consolidated financial statements (1) (Summary) Quarterly non-consolidated balance sheet (Millions of yen) Assets Current assets As of March 31, 2017 As of December 31, 2017 Cash and deposits 486, ,507 Notes receivable-trade, accounts receivable from completed construction contracts and other 349, ,375 Real estate for sale 43,260 45,918 Costs on uncompleted construction contracts and other 62,161 77,771 Development projects in progress 4,764 5,158 Other 89,503 83,556 Allowance for doubtful accounts (170) (90) Total current assets 1,035, ,197 Noncurrent assets Property, plant and equipment 92,029 92,205 Intangible assets 2,406 2,962 Investments and other assets Investment securities 362, ,498 Other 35,742 32,599 Allowance for doubtful accounts (9,156) (8,740) Total investments and other assets 389, ,357 Total noncurrent assets 483, ,525 Total assets 1,518,693 1,519,722

12 (Millions of yen) Liabilities As of March 31, 2017 As of December 31, 2017 Current liabilities Notes payable, accounts payable for construction contracts and other 368, ,531 Short-term loans payable 70,261 50,960 Current portion of bonds 10,000 10,000 Advances received on uncompleted construction contracts 166, ,417 Deposits received 210, ,326 Provision for warranties for completed construction 1,727 1,818 Provision for loss on construction contracts 14,968 10,887 Other 58,774 26,795 Total current liabilities 901, ,736 Noncurrent liabilities Bonds payable 30,000 40,000 Long-term loans payable 54,714 71,056 Provision for retirement benefits 20,865 24,063 Provision for loss on business of subsidiaries and associates 1,139 1,082 Provision for environmental measures Other 26,969 38,841 Total noncurrent liabilities 133, ,080 Total liabilities 1,035, ,817 Net assets Shareholders' equity Capital stock 122, ,742 Capital surplus 85,167 60,502 Legal capital surplus 30,686 30,686 Other capital surplus 54,481 29,816 Retained earnings 196, ,561 Other retained earnings 196, ,561 Reserve for advanced depreciation of noncurrent assets 1,414 1,414 General reserve 94, ,500 Retained earnings brought forward 100,249 82,647 Treasury stock (1,110) (1,487) Total shareholders' equity 402, ,319 Valuation and translation adjustments Valuation difference on available-for-sale securities 80, ,580 Deferred gains or losses on hedges (0) 5 Total valuation and translation adjustments 80, ,585 Total net assets 483, ,905 Total liabilities and net assets 1,518,693 1,519,722

13 (2) (Summary) Quarterly non-consolidated statements of income First three Quarters of FY2017 (April 1, 2017 to December 31, 2017) (Millions of yen) Net sales From April 1, 2016 to December 31, 2016 From April 1, 2017 to December 31, 2017 Net sales of completed construction contracts 800, ,138 Net sales of development business and other 15,387 12,655 Total net sales 816, ,794 Cost of sales Cost of sales of completed construction contracts 674, ,250 Cost of sales on development business and other 9,853 8,625 Total cost of sales 684, ,876 Gross profit Gross profit on completed construction contracts 126, ,887 Gross profit on development business and other 5,534 4,030 Total gross profit 131, ,917 Selling, general and administrative expenses 40,500 40,420 Operating income 91,184 99,497 Non-operating income 12,540 4,770 Non-operating expenses 2,521 1,501 Ordinary income 101, ,767 Extraordinary income 2, Extraordinary loss Income before income taxes 103, ,276 Income taxes 30,701 30,920 Net income 73,048 71,355 (Reference) Net income per share First three Quarters of FY2017: yen First three Quarters of FY2016: yen (Note) 1. The Company s quarterly financial statements are prepared in accordance with the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Financial Statements, etc. and the Construction Industry Law s enforcement regulations. 2. Classifications of categories are noted in summary. 3. We conducted 1-for-5 consolidation of shares on October 1, 2017, and net income per share is calculated based on the assumption that the consolidation of shares was executed at the beginning of FY2016.

14 Supplementary Information (1) (Non-consolidated) Amount of orders received, net sales and balance carried forward (i) Amount of orders received Civil engineering (1) (Millions of yen, rounded down) First three Quarters of FY2016 April 1, 2016 to First three Quarters of FY2017 April 1, 2017 to Change over previous year Rate of change FY2016(Full year) April 1, 2016 to March 31, 2017 December 31, 2016 December 31, 2017 Domestic public sector 157, , (26,927) (17.1) 223, Domestic private sector 80, , , , Overseas (25,391) (2.6) 2, ,467 - (25,791) (1.9) Total 212, , , , Building construction (2) Domestic public sector 230, , (162,161) (70.3) 249, Domestic private sector 497, , , , Overseas 14, , , , Total 742, , (24,879) (3.4) 1,008, Total (1) + (2) Domestic public sector 388, , (189,089) (48.7) 472, Domestic private sector 578, , , , Overseas (11,220) (1.2) 18, ,835 - (11,510) (0.9) Subtotal 955, ,008, , ,324, Real estate development 10, , (2,287) (22.4) 13, Other 5, , (737) (13.8) 10, Total 970, ,020, , ,348, Note: The percentages indicate the proportion. (ii) Net sales (Millions of yen, rounded down) Civil engineering (1) First three Quarters of FY2016 April 1, 2016 to First three Quarters of FY2017 April 1, 2017 to Change over previous year Rate of change FY2016(Full year) April 1, 2016 to March 31, 2017 December 31, 2016 December 31, 2017 Domestic public sector 137, , (25,074) (18.3) 186, Domestic private sector 68, , , , Overseas 11, , , , Total 216, , (5,766) (2.7) 312, Building construction (2) Domestic public sector 76, , , , Domestic private sector 489, , , , Overseas 18, , (16,038) (86.5) 21, Total 584, , , , Total (1) + (2) Domestic public sector 213, , , , Domestic private sector 557, , , , Overseas 29, , (11,955) (40.1) 35, Subtotal 800, , , ,152, Real estate development 10, , (1,994) (19.8) 13, Other 5, , (737) (13.8) 10, Total 816, , , ,176, Note: The percentages indicate the proportion.

15 (iii) Balance carried forward Civil engineering (1) (Millions of yen, rounded down) Third Quarter of FY2016 As of December 31, 2016 Third Quarter of FY2017 As of December 31, 2017 Change over previous year Rate of change FY2016(Full year) As of March 31, 2017 Domestic public sector 328, , , , Domestic private sector 229, , , , Overseas 48, , (16,951) (35.0) 44, Total 606, , , , Building construction (2) Domestic public sector 431, , (68,731) (15.9) 410, Domestic private sector 1,077, ,212, , ,112, Overseas 5, , , , Total 1,515, ,592, , ,525, Total (1) + (2) Domestic public sector 760, , (33,661) (4.4) 755, Domestic private sector 1,306, ,510, , ,335, Overseas 53, , (5,361) (10.0) 47, Subtotal 2,121, ,285, , ,138, Real estate development (224) (50.0) Other Total 2,121, ,285, , ,138, Note: The percentages indicate the proportion.