Slide 1: Results Briefing for the Year Ended March 31, 2012
May 16, 2012 Results Briefing for the Year Ended March 31, 2012
Slide 2: Forward-looking statements
This report contains forward-looking statements regarding Toda Corporation and the Group’s corporate plans, strategies, and business forecasts. These statements include Toda Corporation’s forecasts based on information currently available as of the announcement date, which are subject to a number of
Slide 3: 1. Summary of Financial Results
1. Summary of Financial Results Executive Manager Yushi Kikutani Results Briefing for the Year Ended March 31, 2012 3
Slide 4: Highlights: FY2011
Highlights: FY2011 Consolidated Net Sales: ¥489.3 billion (up 8.2% year-on-year) ： Net sales of completed construction contracts rose due to the increase of contracted construction by overseas subsidiaries. Operating Income: - ¥7.9 billion (down ¥13.7 billion year-on-year) ： Provision for loss o
Slide 5: Summary: FY2011
Summary: FY2011 FY2011 FY2010 Original Difference Change （Billions of yen） Forecast Actuals (year on year) (vs. forecast) Consolidated 452.4 463.5 489.3 +36.8 +25.8 net sales Operating 5.7 8.9 (7.9) -13.7 -16.8 income Ordinary income 7.2 10.0 (6.6) -13.9 -16.6 Net income 3.5 5.0 (19.8) -23.4 -24.8 O
Slide 6: Main Factors for Losses
Main Factors for Losses Decrease in profits in the construction business ： Provision for loss on construction contracts of ¥4.7 billion was increased on the back of the deterioration of profitability at order receipt, and a delay in recovery of profitability. Decrease in profits in the real esta
Slide 7: (Non-consolidated) Construction Business Performance
(Non-consolidated) Construction Business Performance （Unit: Billions of yen） Orders Received for Net Sales of Completed Gross Profit Margin on Construction Construction Contracts Completed Construction Contracts （%） 444.5 -9.3% +6.6% 403.2 448.9 82.2 421.3 Civil 73.8 Civil engineering 101.5 engineer
Slide 8: (Non-consolidated) Breakdown of the Orders Received
(Non-consolidated) Breakdown of the Orders Received (Unit: Billions of yen) Breakdown by Client By Quarter 444.5 Total 1.4 403.2 -9.3% 2.2 119.2 Overseas +47.8% 97.6 4Q -18.1% 297.1 Private 298.0 sector 144.5 99.9 3Q +0.3% -30.8% 108.4 2Q 104.1 +4.1% 145.9 Public 102.9 1Q sector 97.1 76.2 +27.4% -29
Slide 9: Main Orders Received
Main Orders Received Ordering Parties Name of works Architectural construction MORI TRUST CO., LTD. KYOBASHI TRUST TOWER YAMATO TRANSPORT CO., LTD. Atsugi Distribution Terminal Nomura Real Estate Development Co., Funabashi Kita-Honcho Project Ltd.; Mitsubishi Corporation Otsuma Women’s University Re
Slide 10: Main Works Completed
Main Works Completed Ordering Parties Name of works Architectural construction Nakano Ekimae Development Nakano Project Hanasaki Danchi Rebuilding Project Hanasaki Danchi Condominium Rebuilding Condominium Association Project Redevelopment of Kumamoto Ekimae East-A Kumamoto City Block Yurihonjo City
Slide 11: 1-1. Details of Financial Results
1-1. Details of Financial Results Results Briefing for the Year Ended March 31, 2012 11
Slide 12: Toda Group structure
(Consolidated) Toda Group Business Subsidiaries in Japan Overseas subsidiaries 17 companies Toda Reform Co., Ltd. Construtora Toda do Brazil S/A Sipco Industries Co., Ltd. Toda Construction (Shanghai) Co., Ltd. Construction Architectural APEC Engineering Co., Ltd. Thai Toda Corporation Ltd. 10 compa
Slide 13: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance *Intra-company transaction is not eliminated in this chart. FY2011 Ratio of FY2011 Toda Corporation Subsidiaries total consolidated results Consolidated to non-consolidated Billions of yen % % % results Net sales 457.3 58.1 489.3 1.07 Gross profit 12.7 2.8
Slide 14: (Consolidated) Statements of Income
(Consolidated) Statements of Income FY2010 (Actual) FY2011 (Actual) Changes FY2012 (forecast) Billions of yen % % % Net sales 452.4 489.3 +36.8 477.8 Gross profit 30.5 6.7 15.1 3.1 -15.3 28.6 6.0 Selling, general and 24.7 23.1 24.5 administrative expenses Operating income 5.7 1.3 (7.9) -1.6 -13.7 4.
Slide 15: (Consolidated) Net Sales and Operating Income by Segment
(Consolidated) Net Sales and Operating Income by Segment Net Sales Operating Income (Billions of (Billions of yen) yen) 600 16 Real estate and Other 1.9 15.9 13.3 14.9 Civil engineering 400 84.2 104.6 8 12.2 Civil engineering 1.3 Architectural Construction construction 4.1 Architectural 464.5 3.5 20
Slide 16: Change in Gross Profit Margin on Completed Construction Contracts
(Consolidated) Change in Gross Profit Margin on Completed Construction Contracts (Billions of yen) Consolidated Non-consolidated 30 28.0 26.0 25.0 22.2 20 19.6 17.9 10 0 FY2010 FY2011 FY2012 (forecast) Gross Profit Margin on Completed Construction Contracts Ratio 6.4％ 4.1％ 5.4％ Results Briefing for
Slide 17: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated 30 24.7 24.5 23.1 22.5 21.7 20.9 20 10 0 FY2010 FY2011 FY2012(forecast) SG&A Ratio 5.5％ 4.7％ 5.1％ Results Briefing for the Year Ended March 31, 2012 17
Slide 18: Change in Operating Income (Loss)
(Consolidated) Change in Operating Income (Loss) (Billions of yen) Consolidated Non-consolidated 8 5.7 5.4 4 4.1 2.6 0 -4 (7.9) (8.2) -8 -12 FY2010 FY2011 FY2012(forecast) Operating Income 1.3％ -1.6％ 0.9％ Ratio Results Briefing for the Year Ended March 31, 2012 18
Slide 19: Change in Non-Operating Income (Loss) Account Balance
(Consolidated) Change in Non-Operating Income (Loss) Account Balance 1.4 1.3 1.1 (Billions of yen) 3 2.5 2.5 Other income 0.5 2 0.7 Non-operating income 1 Dividend income 1.7 1.6 0.1 Interest income 0.2 0 Interest expenses (0.7) (0.7) Provision of allowance for (0.2) doubtful accounts (0.1) -1 Other
Slide 20: Change in Ordinary Income (Loss)
(Consolidated) Change in Ordinary Income (Loss) (Billions of yen) Consolidated Non-consolidated 10 7.2 6.7 5 5.2 3.7 0 -5 (6.6) (7.1) -10 FY2010 FY2011 FY2012(forecast) Ordinary income 1.6％ -1.4％ 1.1％ ratio a o Results Briefing for the Year Ended March 31, 2012 20
Slide 21: Change in Extraordinary Income (Loss) Account Balance
(Consolidated) Change in Extraordinary Income (Loss) Account Balance (0.4) (6.3) (Billions of yen) 2 0.4 0 Extraordinary 0 income Impairment loss (2.4) (0.9) Impairment loss (2.4) -2 Loss on valuation -4 (3.3) Loss on valuation of Extraordinary loss investment securities (3.3) Loss on disaster (0.1)
Slide 22: (Consolidated) Deferred Tax Assets
(Consolidated) Deferred Tax Assets (Billions of yen)15 (B/S) (P/L) Income taxes deferred Decrease of deferred tax assets 2.5 10 Increase of deferred tax liabilities 2.8 Deferred tax assets Deferred tax assets Change 5.3 12.9 Deferred tax assets Loss on valuation of investment 5 10.4 securities and o
Slide 23: Change in Net Income (Loss)
(Consolidated) Change in Net Income (Loss) (Billions of yen) Consolidated Non-consolidated 5 3.5 2.9 2.7 2.0 0 -5 -10 (19.8) (19.6) -15 -20 FY2010 FY2011 FY2012(forecast) Net income ratio 0.8％ -4.1％ 0.6％ Dividends per share 7.0 yen 6.0 yen 6.0 yen Results Briefing for the Year Ended March 31, 2012 2
Slide 24: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets (Billions of Liabilities and Net Assets yen) (11.9) 499.1 487.1 Current Current liabilities (0.1) liabilities (5.1) 255.9 255.7 Noncurrent liabilities Noncurrent +6.2 liabilities 53.5 59.8 (6.7) Net Net assets (18.0) assets 189.5 171.5 FY2010 FY2011 Results Briefing for
Slide 25: Detailed Consolidated Balance Sheets (Assets)
(Consolidated) Detailed Consolidated Balance Sheets FY2010 FY2011 Remarks Billions of yen Figures in ( ) are changes from the previous year (Assets) Cash 36.9 (-5.3) Notes receivable, accounts receivable from Current assets 286.5 281.3 completed construction contracts and other 164.2 (+31.6) Costs o
Slide 26: Detailed Consolidated Balance Sheets (Liabilities)
(Consolidated) Detailed Consolidated Balance Sheets FY2010 FY2011 Remarks Billions of yen Figures in ( ) are changes from the previous year (Liabilities) Notes payable and other accounts payable 132.7 (+14.6) Current liabilities 255.9 255.7 Short-term loans payable 37.0 (-6.8) Advances received on u
Slide 27: (Consolidated) Change in Real Estate Holding
(Consolidated) Change in Real Estate Holding (Billions of yen) For business use (own use) For business use (rent) For sale Figures in brackets represent the total of real estate for business use. 150 (11.4) 117.2 113.0 105.8 Decreased by sales -1.5 28.6 Inserted valuation loss -7.3 100 30.4 (9.1) 19
Slide 28: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities (Billions of yen) Book value Valuation difference 150 119.6 ＋0.5 110.2 110.7 100 35.9 26.2 26.3 50 83.6 83.9 84.3 0 FY2009 FY2010 FY2011 Nikkei Stock-Average 11,089 yen 9,755 yen 10,083 yen Results Briefing for the Year Ended March 31, 2012 28
Slide 29: Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term (Billions of yen) 59.5 - 0.6 58.1 57.5 60 18.7 14.2 20.4 40 40.8 43.9 20 37.0 0 FY2009 FY2010 FY2011 Ratio of interest-bearing liabilities 11.9％ 11.6％ 11.7％ Results Briefing for the Year Ended March 31, 2012 29
Slide 30: Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts (Billions of yen) Architectural construction Civil engineering 16 14.0 +4.8 Civil engineering 2.8 12 9.2 8 1.9 Architectural construction 11.2 4 7.3 0 FY2010 FY2011 Results Briefing for the Year Ended March 31, 2012 30
Slide 31: Statement of Cash Flow
(Consolidated) Statement of cash flow （Billions of yen） 61.6 - 9.6 52.0 Profit before tax (13.0) Construction-related funds (11.1) Real estate for sale +10.5 Cash and cash equivalents at beginning Cash and cash Increase in fund of period equivalents at end of Purchase of property, plant and period e
Slide 32: (Reference) Share Price and Other Indices
(Reference) Share Price and Other Indices FY2012 FY2008 FY2009 FY2010 FY2011 (forecast) Share price (Yen) 303 337 329 278 230 Net assets per share 563.76 617.42 602.35 537.53 537.53 (Yen) Net income per share 8.10 9.36 11.53 (64.28) 8.67 (Yen) 37.41 Price earning ratio (PER, 36.00 times) PER 26.52 2
Slide 33: Overseas Net Sales and Gross Profit by Region
(Reference) Overseas Net Sales and Gross Profit by Region Overseas Net Sales Overseas Gross Profit (Billions of (Billions of yen) yen) 23.1 1.8 1.7 2.3 1.5 0.1 20 18.1 Direct Direct 0.5 control 8.2 1.2 Control 0.4 2.9 Southeast Southeast Asia Asia 0.3 4.6 0.3 3.5 10 7.8 0.8 China 0.1 China 3.4 0.6 0
Slide 34: 1-2. Performance Forecasts
1-2. Performance Forecasts Results Briefing for the Year Ended March 31, 2012 34
Slide 35: Performance Forecasts
Performance Forecasts Regarding the economic environment in coming years, we expect a modest recovery. In the domestic market, we anticipate that the outlook for orders will remain tough despite growth in the construction of municipal government offices relating to post-earthquake restoration and re
Slide 36: Forecasts for FY2012
Forecasts for FY2012 (Year Ending March 31, 2013) FY2012 FY2011 Change (Billions of yen) Forecasts (year on year) Consolidated net 489.3 477.8 -2.4% -11.5 sales Operating income (7.9) 4.1 +12.0 Ordinary income (6.6) 5.2 +11.9 Net income (19.8) 2.7 +22.5 Orders received 403.2 400.0 -0.8% (3.2) (Non-c
Slide 37: Forecasts of the Construction Business
(Non-consolidated) Forecasts of the Construction Business (Unit: Billions of yen) Orders Received for Net Sales of Completed Gross Profit Margin on Construction Construction Contracts Completed Construction Contracts -0.8% -3.7% 403.2 （％） Civil engineering 400.0 448.9 432.5 5.4 73.8 Civil engineerin
Slide 38: 2. Medium-Term Management Plan
2. Medium-Term Management Plan President Shunzo Inoue Results Briefing for the Year Ended March 31, 2012 38
Slide 39: 2-1. Current Status and Our Challenges
2-1. Current Status and Our Challenges Results Briefing for the Year Ended March 31, 2012 39
Slide 40: Environmental Changes and Business Performance
Environmental Changes and Business Performance Gross Profit Margin on Completed Construction Price of construction materials *Reference: Bank of Japan Contracts (non-consolidated) １１７.４ Civil Revenue model Bottoming out at the end engineering based of FY 2009, the price on the gain on shows an upwar
Slide 41: Principal Indices of the Former Medium-Term Management Plan
Principal Indices of the Former Medium-Term Management Plan Target (FY2011) FY2008 FY2011 Ratio of renovations to completions 25% 15% 14% Ratio of orders in the 70% priority areas (Architectural construction 68% 64% and civil engineering) Overseas orders received (Consolidated) ¥20.0 billion ¥9.7 bi
Slide 42: Breakdown of Orders Received in the Priority Areas
Breakdown of Orders Received in the Priority Areas (Type of Construction Work) Orders received for Orders received for architectural construction civil engineering 14.4 11.7 22.5 Others 14.2 21.2 9.9 11.9 2.2 33.7 Others 2.9 9.0 11.6 Housing 17.5 10.6 (%) 21.1 (%) 17.0 1.3 Soil and river conservatio
Slide 43: Overseas Orders Received by Region
Overseas orders received Overseas order received (by Region) 21.5 2.2 Others The number of orders 14.9 3.1 China received grew steadily in Brazil and the Southeast (Billions of yen) 1.4 Southeast 3.5 6.5 Asia Asia. 2.0 6.1 Achieved the target of 1.2 1.4 7.8 9.6 Brazil ￥20.0 billion. 0.7 2.6 *Southea
Slide 44: Problematic Issues
Problematic Issues Slow reaction to environmental changes Weakened capacity to formulate proposals and to negotiate for additional construction work Stagnating innovation (slowdown in productivity growth, labor shortages, etc.) Unclear growth scenario Results Briefing for the Year Ended March 31, 20
Slide 45: Basic Policy of the Medium-Term Management Plan
Basic Policy of the Medium-Term Management Plan (2) Creation of new values (1) Early improvement Growth strategies in revenues as a Group 1.3% Improvement of construction revenues (Operating margin) Top priority -1.6% challenges FY2010 FY2011 Results Briefing for the Year Ended March 31, 2012 45
Slide 46: 2-2. Improvement of construction revenues
2-2. Improvement of construction revenues Results Briefing for the Year Ended March 31, 2012 46
Slide 47: Towards the Restoration of Core Business
Towards the Restoration of Core Business Review the whole process toward a target of 7% in gross profit margin on completed construction contracts Scrutiny of projects and risk management together with Sales and Construction Departments Enhance technical proposals and comprehensive evaluation method
Slide 48: Towards the Restoration of Core Business: Order Targets
Towards the Restoration of Core Business Enhance the selection of orders under the appropriate target. (Billions of yen) FY2010 FY2011 FY2012 Target Result Target Result Target Architectural construction 340.0 362.3 370.0 329.4 320.0 Civil engineering 80.0 82.2 81.0 73.8 80.0 Total 420.0 444.5 451.0
Slide 49: 2-3. Growth strategies as a Group
2-3. Growth strategies as a Group Results Briefing for the Year Ended March 31, 2012 49
Slide 50: Background to strategy formulation
Background to strategy formulation Social Challenges to be Resolved "Stock-type" Redevelopment Disaster Global of infrastructure Globalization environmental society prevention issues Customer base of the Group Total business capability beyond the framework of construction is required. Results Briefi
Slide 51: Medium- to Long-Term Management Strategy: Create new answers
Medium- to Long-Term Management Strategy Target Period: FY 2012 to FY 2017 Creation by people. Created with people… Create new answers Give “Construction” a wider and deeper significance. Seek the best results for our customers. Growth target: Operating margin of 3% or higher Three Challenges Compre
Slide 52: Actual Image of Three Challenges (Example: Hospital)
Actual Image of “Three Challenges” (Example: Hospital) Information Complete business PFI for Energy, CO2 network hospitals services Medical mall Comprehensive Ultimate approach to operations facility lifecycle Propose and realize a smart hospital Reconstruction Renovation Maintenance and New managem
Slide 53: Forecast for the Next Three Years
Forecast for the Next Three Years Year ending March 2018 (FY 2017) Year ending Year ending Year ending March 2013 March 2014 March 2015 Stable revenues (FY 2012) Realize (FY 2013) (FY 2014) further growth Growth strategies as a Group Create growth opportunities (1) Renovate business processes (2) Bu
Slide 54: (1) Renovate Business Processes
(1) Renovate Business Processes ⅲ. Feedback the status of New organizations operations. including subsidiaries will handle this area. Life care Integrated promotion of Engineering and Design maintenance and management, Secure our critical technologies and renovation and know-how Outside the Group (c
Slide 55: Points for Renovation
(1) Renovate Business Processes Points for Renovation Shift from business model of “selling tailored items with no post-sale services” Promote the securing of capable technicians. Cooperate and enter alliances with companies and organizations outside the Group. Results Briefing for the Year Ended Ma
Slide 56: (2) Business areas requiring strategic development and enhancement
(2) Business areas requiring strategic development and enhancement Investment Business Environment & Overseas (Real estate, PFI, Energy PPP) Target for FY2014 Target for FY2014 Improve contribution Net sales Income from real outside Japan: ¥35.0 billion estate, etc. ¥4.0 billion to construction orde
Slide 57: Overseas Business Development
(2) Business areas requiring strategic development and enhancement Overseas Business Development Three-base system of Brazil, Southeast Asia + China and West Africa The Overseas Division (Tokyo) Gather information on international West Africa (ODA) investments Continuous order receipt Cooperate with
Slide 58: Real Estate Business
(2) Business areas requiring strategic development and enhancement Real Estate Business New investment of approximately ¥5.0 billion every year while utilizing properties efficiently Efficient use of properties New investment Improve occupancy ratio New investment in income of rental properties prop
Slide 59: Environment and Energy
(2) Business areas requiring strategic development and enhancement Environment and Energy Enhance cross-industrial collaboration and focus on renewable energy. Sterile filtration air-conditioning system Sterilization by S-Plasma ion (with air outlets) Sterilization using Sterilization using Triosyn
Slide 60: (3) Strengthen management base
(3) Strengthen management base Group as a whole Management Compliance structure Inheritance of Quality, Environment, Safety technological BCP (Business Continuity Plan) capability Global human resources Development Universal of human improvement resources Results Briefing for the Year Ended March 31
Slide 61: 2-4. Performance Targets and Other
2-4. Performance Targets and Other Results Briefing for the Year Ended March 31, 2012 61
Slide 62: Performance Targets
Performance Targets (Billions of yen) Medium- to Long- FY2010 FY2011 FY2014 Term Target Result Result Target Target Consolidated 500.0 452.4 489.3 — net sales more or less Operating 5.7 (7.9) Income 2.0% 3.0% and higher and higher [ratio] [1.3%] [-1.6%] Results Briefing for the Year Ended March 31,
Slide 63: Policy of Profit Return to Shareholders
Policy of Profit Return to Shareholders Dividend per share Continuous and stable ６.０ dividend payment （Yen） Consider appropriate dividends according to the profit growth. FY2002 FY2007 （年/月） FY2012（Forecast) Results Briefing for the Year Ended March 31, 2012 63
Slide 64: At the End: Corporate Philosophy
At the End Re-realize the importance of our Corporate Philosophy Results Briefing for the Year Ended March 31, 2012 64
Slide 65: Toda Corporation
OSTODA TODA CORPORATION (SINCE 1881) 65