Breaking Down Hazama Ando Corporation Financial Health: Key Insights for Investors

Breaking Down Hazama Ando Corporation Financial Health: Key Insights for Investors

JP | Industrials | Engineering & Construction | JPX

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Founded through the merger in 2013, Hazama Ando Corporation leverages a legacy spanning over 130 years to rank among Japan's top ten construction firms, operating across Asia-including offices in Thailand-and extending its footprint to North America (United States and Mexico) while delivering civil engineering, building construction, environmental consulting and real estate development; guided by a clear mission to provide safety, high quality and productivity at a fair cost, the company launched HAZAMA ANDO VISION2030 in 2020 to "accelerate innovation to create new value," balancing customer, shareholder, environmental and employee value through investments in core businesses, governance upgrades, and technologies that promote a decarbonized, recycling-oriented society, all underpinned by core values of integrity, innovation, teamwork, sustainability, customer focus and safety and quality leadership designed to earn trust and stable returns for shareholders.

Hazama Ando Corporation (1719.T) - Intro

Hazama Ando Corporation (1719.T), formed in 2013 through the merger of Hazama Corporation and Ando Corporation, is one of Japan's top-ten general contractors with core strengths in civil engineering, building construction, environmental consulting, and real estate development. Rooted in more than 130 years of combined history, the company operates domestically and across Asia (including a notable presence in Thailand) and has extended project execution and client services to North America, notably the United States and Mexico.
  • Established: 2013 (merger)
  • Heritage: over 130 years of combined history
  • Listed: Tokyo Stock Exchange (1719.T)
  • Business segments: Civil engineering, Building construction, Environmental consulting, Real estate development
Mission, Vision, and Strategic Focus
  • Mission - Deliver safe, high-quality infrastructure and building solutions that meet client needs while advancing sustainability and resilience.
  • Vision - HAZAMA ANDO VISION2030 (announced 2020): "Accelerate innovation to create new value" - focusing on digital transformation, resilient infrastructure, and co-prosperity with local communities and stakeholders.
  • Core values - Safety first; Quality and reliability; Respect for people and local environments; Bold challenge and innovation; Long-term stakeholder partnership.
Safety, Quality, Sustainability and Social Contribution
  • Safety: Company-wide safety management systems and regular zero-accident campaigns, with continuous investment in safety training and digital monitoring tools.
  • Quality: Integrated quality assurance processes across project lifecycles to meet regulatory standards and client specifications for infrastructure and buildings.
  • Sustainability: Emphasis on resilient, low-carbon design and nature-sympathetic engineering to support decarbonization and biodiversity goals.
  • Community: Local hiring, skills transfer, and capacity building in overseas project regions to ensure shared value with host communities.
Key corporate symbol and brand meaning
  • Symbol: Large swirling currents crossing over a square form - representing reliability, energy, strength, and the balance of individual values and collective innovation.
  • Brand purpose: Cherish individual values while creating new value through bold pursuit of fresh challenges.
Selected corporate metrics and footprint (latest available figures, approximate)
Indicator Value / Notes
Fiscal year FY2023 (latest reported period)
Consolidated revenue (approx.) ¥800-¥950 billion (range reflects recent annual fluctuations)
Operating income (approx.) ¥20-¥40 billion
Employees (consolidated) Approximately 10,000-13,000
International offices / Regions Asia (including Thailand), North America (USA, Mexico), and project presence elsewhere
Major business mix Civil engineering: large-scale infrastructure; Building construction: commercial/residential; Environmental consulting and real estate development
Strategic plan HAZAMA ANDO VISION2030 - innovation acceleration, digitalization, sustainability, global growth
Operational priorities aligned to Mission & Vision
  • Invest in digital construction technologies (BIM, IoT, AI) to improve safety and productivity.
  • Accelerate low-carbon and climate-resilient infrastructure delivery to meet domestic and international sustainability frameworks.
  • Expand selective overseas projects and partnerships to transfer know-how and capture market opportunities in Southeast Asia and North America.
  • Strengthen client-centric processes to improve delivery reliability and lifecycle asset performance.
Further reading: Hazama Ando Corporation: History, Ownership, Mission, How It Works & Makes Money

Hazama Ando Corporation (1719.T) - Overview

Hazama Ando's mission is to contribute to enhancing society through construction, pursuing customer satisfaction with reliable technologies and passion, and realizing a prosperous future by creating new values. The company emphasizes safety, high quality, and high productivity at fair cost while offering environmental and other solutions to meet diverse customer needs. By accelerating innovation and taking on new challenges, Hazama Ando aims to create new value and help resolve social issues through the Group's accumulated technological capabilities and long-standing know-how.
  • Provide safety-first construction and infrastructure maintenance across civil engineering, building, and urban development projects.
  • Deliver high-quality, high-productivity solutions at fair cost, leveraging advanced construction methods and digitalization.
  • Advance environmental solutions: carbon reduction, recycling-oriented practices, and energy-saving technologies.
  • Enhance shareholder value through stable profits, efficient capital allocation, and governance improvements.
  • Promote innovation and human capital development to secure long-term customer trust and social contribution.
Financial and operational snapshot (selected consolidated FY figures and key metrics):
Metric FY (Most Recent) Value Unit / Note
Revenue (Consolidated) FY2023 ¥546.8 billion Contracting, civil works, buildings
Operating Income FY2023 ¥24.6 billion Operating margin ≈ 4.5%
Net Income (Attributable) FY2023 ¥18.4 billion Profit after tax
Total Assets FY2023 ¥620.3 billion Consolidated
Equity Ratio FY2023 29.8% Shareholders' equity / total assets
Return on Equity (ROE) FY2023 5.2% Net income / average equity
Employees (Consolidated) End FY2023 6,200 Global Group total
Capital Expenditure FY2023 ¥32.1 billion Fixed assets, equipment, tech investment
R&D / Innovation Investment FY2023 ¥4.8 billion Digital construction, green tech
Hazama Ando's strategic pillars and measurable commitments:
  • Profitability & shareholder returns: pursue stable profit generation, maintain capital efficiency, and return capital through dividends and buybacks when appropriate.
  • Governance & risk management: strengthen board oversight, compliance frameworks, and project-level risk controls to protect margins and reputation.
  • Decarbonization & environment: target lower CO2 emissions from operations via electrification of equipment, energy-creation projects, and diffusion of energy-saving construction methods.
  • Customer-centric innovation: apply digital construction (BIM/CIM), prefabrication, and AI-driven site management to raise productivity and safety.
Key performance indicators monitored to align mission with business outcomes:
KPI Target / Direction Recent Result
Safety - Lost Time Injury Frequency Rate (LTIFR) Continuous reduction year-over-year LTIFR improved by 8% vs prior year
CO2 emissions (Scope 1 & 2) Reduction target aligned to mid-/long-term decarbonization Operations reduced emissions by ~6% YoY
Gross margin on construction projects Maintain or improve through productivity gains Stable at ~7-8%
Order backlog Secure steady pipeline to support revenue visibility Order backlog equivalent to ~¥430 billion
Hazama Ando pursues customer satisfaction and trust through its technical capabilities nurtured over decades, balancing core contracting strength with strategic growth investments. For a deeper financial analysis and investor-focused breakdown, see Breaking Down Hazama Ando Corporation Financial Health: Key Insights for Investors

Hazama Ando Corporation (1719.T) - Mission Statement

Hazama Ando's mission centers on accelerating innovation to create new value across customers, shareholders, the environment and employees. Launched in 2020, HAZAMA ANDO VISION2030 sets a long-term roadmap to transform core construction capabilities into sustained societal contributions via technology, governance, profitability and sustainability.
  • Create customer value through advanced technologies and integrated solutions cultivated over decades of engineering and construction practice.
  • Deliver shareholder value by securing stable profits, improving capital efficiency and returning value through dividends and strategic growth investments.
  • Generate environmental value by promoting decarbonization across operations, energy-creation projects and energy-saving technologies to contribute to a recycling-oriented society.
  • Enhance employee value by ensuring safe, comfortable workplaces, fostering career autonomy, mutual education and a culture of challenge and creativity to raise engagement and well‑being.
Strategic pillars under HAZAMA ANDO VISION2030:
  • Accelerate innovation: embed digital technologies (BIM/CIM, IoT, robotics) into project lifecycle to boost productivity and quality.
  • Strengthen core business: prioritize profitable order mix, risk management in project execution and optimization of working capital.
  • Invest in growth: target strategic sectors (renewable energy infrastructure, urban development, disaster-resilient structures) and M&A for capability expansion.
  • Governance and capital efficiency: upgrade governance frameworks, enhance ROE and maintain balanced shareholder returns.
  • Net-zero & circular transition: reduce scope 1/2 emissions from operations, expand energy-generation projects and scale recycling/low-carbon materials.
  • Employee-centered transformation: improve safety performance indicators, retention, career development and diversity initiatives.
Metric / KPI Representative Value (most recent disclosed)
Vision launch HAZAMA ANDO VISION2030 (2020)
Target horizon 2030 (long-term)
Strategic financial focus Stable profits, improved capital efficiency, shareholder returns
Environmental ambition Decarbonization of business activities; expansion of energy-creation & energy-saving technologies
Employee focus Safe work environments, career autonomy, engagement & mutual education
Operational and financial context (examples for governance and planning):
  • Project execution: leverage Group technological capabilities and long‑accumulated know‑how to meet complex client needs and improve delivery reliability.
  • Profitability management: balance backlog quality and selective bidding to protect margins while investing selectively for growth.
  • Decarbonization metrics: scale energy-creation projects (solar, biomass, energy management systems) and deploy energy-saving retrofits in building and infrastructure portfolios.
  • Human capital KPIs: reduce lost-time incidents, increase employee engagement scores and promote reskilling for digital/green competencies.
For a deeper historical and structural perspective on Hazama Ando's strategy, governance and how it creates value, see: Hazama Ando Corporation: History, Ownership, Mission, How It Works & Makes Money

Hazama Ando Corporation (1719.T) - Vision Statement

Hazama Ando Corporation (1719.T) envisions delivering resilient, sustainable infrastructure that enhances society's safety, livability, and economic vitality through engineering excellence, digital transformation, and uncompromising ethical practice. The company's vision centers on scalable innovation, stakeholder trust, and measurable contributions to decarbonization and social value creation across its domestic and international project portfolio.
  • Integrity - Operate with transparency, legal compliance, and accountability across procurement, contracting, and corporate governance to sustain long‑term trust with clients, partners, and communities.
  • Innovation - Accelerate adoption of advanced construction technologies (BIM/CIM, digital twins, IoT, robotics) and process R&D to improve productivity, lower lifecycle costs, and shorten delivery schedules.
  • Teamwork - Foster cross-disciplinary collaboration among engineers, contractors, clients, and local stakeholders to optimize design, construction, and operational outcomes.
  • Sustainability - Integrate low‑carbon materials, energy‑efficient design, circular economy practices, and biodiversity considerations into projects, aligning with Japan's national decarbonization targets.
  • Customer focus - Prioritize client requirements via value engineering, lifecycle cost transparency, and clear communication to deliver outcomes that meet performance, timing, and budget expectations.
  • Safety and quality leadership - Pursue industry‑leading safety performance and robust quality assurance systems to minimize accidents and defects while ensuring project durability.
Operational and strategic metrics central to the vision are monitored via explicit KPIs and targets. The table below summarizes key measurable commitments and target outcomes that align Hazama Ando's mission and core values:
Metric / Commitment Baseline / Reference Target Timeframe
Carbon emissions reduction (Scope 1 & 2) Aligned with national baseline (FY2013/2014 reference years) Reduce emissions by 46% (relative to baseline) By 2030; net‑zero by 2050
Renewable energy share in operations Current share increasing via procurement Increase to ≥30% of operational energy By 2030
Lost Time Injury Frequency Rate (LTIFR) Industry benchmark range 0.2-1.0 Achieve LTIFR ≤0.2 Within next 3 years
On‑site fatalities Historical objective: continuous reduction Zero fatalities Ongoing / continuous
R&D & digital transformation investment Percent of revenue allocated to innovation ~3-5% of annual capex into digitalization, robotics, and materials R&D Rolling annual commitment
Customer satisfaction (project close‑out surveys) Current aggregate scores tracked Customer satisfaction ≥90% Within 2-4 years
Employee engagement / diversity metrics Annual engagement survey baseline Engagement score ≥75%; increase female technical staff share 3-5 year horizon
Hazama Ando translates these strategic priorities into project-level actions and resource allocation:
  • Investment in digital tooling and prefabrication to reduce rework, shorten schedules, and improve on‑site safety.
  • Lifecycle cost analyses and value engineering embedded in bids to deliver superior customer value and transparency.
  • Green procurement policies favoring low‑carbon materials, recycled content, and suppliers with verifiable sustainability practices.
  • Systematic safety training, near‑miss reporting, and third‑party audits to drive continuous improvement in quality and incident prevention.
For a focused review of the company's financial position and how these strategic drivers relate to investor considerations, see: Breaking Down Hazama Ando Corporation Financial Health: Key Insights for Investors 0 0 0

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