Slide 1: Results Briefing for the Year Ended March 31, 2017
Results Briefing for the Year Ended March 31, 2017 May 15, 2017 TODA CORPORATION 1
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: Today's Schedule
Today’s Schedule 1. Summary of Financial Results Executive Manager Yushi Kikutani 2. Medium-term Management Plan 2019 President Masanori Imai 3
Slide 4: 1. Summary of Financial Results
1. Summary of Financial Results Executive Manager Yushi Kikutani 4
Slide 5: 1-1. Summary of Financial Results for the Year Ended March 31, 2017
1-1. Summary of Financial Results for the Year Ended March 31, 2017 5
Slide 6: Highlights: FY2016
Highlights: FY2016 Consolidated Net Sales: ¥422.7 billion, down 14.2% year-on-year ： Net sales fell 14.2% year-on-year to ¥422.7 billion, as completed construction contracts decreased. Operating Income: ¥24.9 billion, up 15.6% year-on-year ： Operating income increased 15.6% year on year, to ¥24.
Slide 7: Summary: FY2016
Summary: FY2016 (Billions of yen) FY2016 FY2015 Forecasts Change Difference (announced Actuals (year on (vs. forecast) in Feb. 2017) year) Consolidated net sales 492.6 430.0 422.7 -14.2% -7.3 Operating income 21.6 23.0 24.9 15.6％ 1.9 Ordinary income 23.7 25.0 27.1 14.6% 2.1 Profit attributable to ow
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Construction of new campus of Tokyo College of Tokyo College of Music Construction Music J.F. Oberlin University’s Hyakunincho Campus J.F. Oberlin University plan Planning, design work and new construction PILOT Corporation for Kyobas
Slide 9: 1-2. Details of Financial Results
1-2. Details of Financial Results 9
Slide 10: Construction (Consolidated) Toda Group
(Consolidated) Toda Group 16 Business Subsidiaries in Japan Overseas Subsidiaries companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Construction Chiyoda Kenkou Co., Ltd. Toda Construction (Shanghai) Co., Ltd. Architectural 8 Construction Thai Toda Corporation Ltd. companies TODA Ph
Slide 11: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A Consolidated Non-consolidated SG&A ratio (Billions of yen) 6.6% 30 6.6% （consolidated） 5.3% 29.0 27.9 6.0% 26.1 26.0 25.1 23.5 20 4.0% 10 2.0% 0 0.0% FY2015 FY2016 FY2017 (forecast) 11
Slide 12: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets Assets (Billions of yen) Liabilities and Net Assets (Billions of yen) -12.1 -12.1 548.7 548.7 536.5 536.5 Cash and deposits +11.6 Securities +24.6 Current Construction related liabilities -59.1 Current Current Construction-related assets -74.2 Current Short-term loans -
Slide 13: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei Stock Average (Billions of yen) Stock prices (yen) 250 19,206 20,000 18,909 200 16,758 14,827 185.5 168.7 15,000 154.8 147.5 150 Valuation 110.3 Difference 91.1 10,000 70.4 79.2 100 Book 5,000 50 Value 77.1 75.2 75
Slide 14: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term (Billions of yen) 79.7 -9.4 70.2 66.3 66.0 45.1 33.7 40.4 32.5 34.5 29.8 Mar-15 Mar-16 Mar-17 Mar 2018 (forecast) D/E ratio 14.7％ 0.37x 0.45x 0.27x ー 14
Slide 15: (Consolidated) Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts Architectural construction Civil engineering (Billions of yen) 7.6 2.6 ＋0.８ ３.2 2.4 5.0 Civil engineering Architectural 1.4 construction 3.1 1.0 0.1 Mar-15 Mar-16 Mar-17 15
Slide 16: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) ＋36.3 90.9 Cash and cash 54.6 equivalents at end of Income before income taxes 28.3 Notes and accounts receivable – trade 78.0 period Cash and cash Costs on uncompleted construction contracts 3.7 equivalents Notes and accounts payable -trade -4
Slide 17: 1-3. Performance Forecasts
1-3. Performance Forecasts 17
Slide 18: Forecasts for FY2017 (Year Ending March 31, 2018)
Forecasts for FY2017 (Year Ending March 31, 2018) (Billions of yen) FY2017 FY2016 Change Forecasts (year-on-year) Consolidated net 422.7 437.0 3.4% 14.2 sales Operating 24.9 19.0 -24.0％ -5.9 income Ordinary income 27.1 21.0 -22.8％ -6.1 Profit attributable to owners of the parent 42.0 14.0 -66.7％ -28
Slide 19: (Non-consolidated) Forecasts for the Construction Business
(Non-consolidated) Forecasts for the Construction Business (Billions of yen) （％） Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts 473.3 445.0 Archite ctural 394.3 400.0 Constr 114.4 uction Civil 95.0 Civil 12.5 Eng
Slide 20: Non-consolidated Forecasts for FY2017
Non-consolidated Forecasts for FY2017 Amount（billions of yen） Profitability（％） Net sales 404.5 Gross profit 43.1 10.7 Profits in the construction business 41.5 10.4 [Architectural construction] [30.5] [10.2] [Civil engineering] [11.0] [11.0] Profits in the real estate business 1.6 35.6 Selling, gene
Slide 21: 2. Medium-term Management Plan 2019
2. Medium-term Management Plan 2019 President Masanori Imai 21
Slide 22: Positioning of Medium-term Management Plan 2019
Positioning of Medium-term Management Plan 2019 Toda Group Global Vision A corporate group that makes your success possible To a new phase to realize the global vision FY2015 - FY2016 FY2017 - FY2019 FY2020 - Phase I Phase II Establishing growth Building profit base for Continuous foundation continu
Slide 23: 1. Achievements of Previous Medium-term Plan and Issues
1. Achievements of Previous Medium-term Plan and Issues 23
Slide 24: Performance Targets in the Previous Medium-term Plan and Achievement Status
Performance Targets in the Previous Medium- term Plan and Achievement Status Achieved profitability and productivity goals ahead of schedule, to move to new Medium-term Plan (Billions of yen) Previous FY2015 FY2016 FY2017 medium-term targets Actuals Actuals Forecast (FY2017) Consolidated 492.6 422.7
Slide 25: Status of Construction Work Carried Forward
Status of Construction Work Carried Forward Both Architectural Construction and Civil Engineering works in hand are at a high level Architectural Construction (Japan) Civil Engineering (Japan) 412.2 423.4 182.8 168.8 368.1 359.8 157.4 (Billions of yen) 135.0 2013 2014 2015 2016 2013 2014 2015 2016 （
Slide 26: Review of Strategy
Review of Strategy FY2013 FY2014 FY2015 FY2016 Strategic Regeneration period Establishing growth foundation phase － Winning back trust after two consecutive － Efforts to reach No.1 in productivity terms of posting losses － and safety － -Floating Offshore Wind -Customer center Turbine Generator -Prod
Slide 27: Initiatives for Continuous Growth
Initiatives for Continuous Growth Investments for future revenue Investments for business foundation Headquarters building reconstruction Business Process Restructuring, expanding education Floating Offshore Wind Turbine Generator (Goto WF) Rebuilding ICT New real estate Developing Tsukuba Institute
Slide 28: Promotion of Social Contribution Activity through Toda Mirai Foundation
Promotion of Social Contribution Activity through Toda Mirai Foundation List of recipients of the 1st Grants for Activities to Promote Hiring and Nurturing of Young Engineers Company/organization Based Activity theme in SHOKUNINIKUSEIJUKU Operation of workmen’s school, collaboration 1 Kagawa with th
Slide 29: Recognition of Issues
Recognition of Issues • Improve capacity in response to strong order At the environment moment • Issues faced by the construction industry (reform of way of working, shortage of workers, social insurance, etc.) • Decline in construction investment anticipated after 2020 Medium- • Change in social st
Slide 30: Medium-term Issues and Direction of Corporate Activities
Medium-term Issues and Direction of Corporate Activities Continuous growth we aspire to achieve Anticipate changes in environment and formulate new 2015 onwards - the medium medium-term management plan -term management plan (added value, labor productivity) Earnings targets achieved (ahead of the pl
Slide 31: 2. What We Aspire to Be
2. What We Aspire to Be 31
Slide 32: 30 Years in Toda's View
Next Future Map 30 Years in Toda’s View 技術（T） 資源（R） （年） 2050 人 シンギュラリティ(AI＞人間) 飛 火 Ｉ 遺 情 ３ コンピューター翻訳 行 高 星 財 Ⅳ.個人が最適化されていく時代 ｏ 伝 報 Ｄ あ セマンティック・ウェブ 運 高 度 へ 付 価 個人レベルでの最適化 E 子 科 印 ら （ 転 度 判 の 情 加 操 学 刷 ゆ 値 娯楽関連建設物の高度化への対応 試 報 価 一部簡易施工大型建設物の小売化 全 作 断 作 × に 高 る の 自 験 の 値 て 業 能 仮 に ナ よ 度 情 変 予防医学の主流化 動 移
Slide 33: What We Aspire to Be: Assembly & Collaboration
What We Aspire to Be Create new values through Assembly ＆ Collaboration Evolution of No. 1 productivity, No. 1 safety Take on challenge of achieving a 30% improvement in net sales of completed construction contracts per worker, no overtime, no accident Acquisition of values through differentiation E
Slide 34: Significance of Toda Group Assembly Collaboration
Significance of Toda Group Customers Environment Turning information Culture into added value New business Assembly Collaboration Society High integration of Technology information development Engineers Output Partner companies Offer value (constructed structures, businesses) 34
Slide 35: Business Structure for Continuous Growth
Business Structure for Continuous Growth Maximize group corporate value Investment development business Branch Branch New business Branch Partner company New business Partner company Group company Overseas business Group company Group company Local subsidiary Local subsidiary Architectural Construct
Slide 36: 3. Performance Targets
3. Performance Targets 36
Slide 37: Group Earnings Targets for FY2019
Group Earnings Targets for FY2019 (Billions of yen) FY2016 FY2017 FY2019 actuals forecasts targets Consolidated net sales 422.7 437.0 500.0 Architectural 291.7 298.0 340.0 construction (Japan) Civil engineering (Japan) 100.5 97.2 115.0 Investment & 5.2 4.5 8.5 development + new fields Domestic group
Slide 38: Profit Target by Business
Profit Target by Business (Billions of yen, %) Long- FY2016 FY2017 FY2019 term results forecasts targets targets Operating income 24.9 [100] 19.0 [100] 25.0 [100] [100] Architectural construction (Japan) 19.7 [79.0] 12.4 [65.3] 16.5 [66.0] [50.0] Civil engineering (Japan) 4.5 [18.2] 5.2 [27.4] 6.5 [
Slide 39: Capital Efficiency, Shareholder Returns, Investment Plan
Capital Efficiency, Shareholder Returns, Investment Plan [Capital efficiency, FY2016 FY2017 FY2019 shareholder returns] actuals forecasts targets 21.1％ ROE (return on equity) 7.0％ About 8.0％ (9.7%) 11.0％ * Total return ratio 26.3％ About 30.0％ (23.8%) *Total return ratio= Total shareholder return (to
Slide 40: Performance Targets and How to Grasp Impact of Measures
Performance Targets and How to Grasp Impact of Measures Labor productivity Continuous growth 15.50 or more 15.45 (Impact of resource (Impact of reconstructing shift) 15.00 (Millions of yen) the headquarters building) Impact of 14.55 measures Evolution of productivity, safety Acquisition of values th
Slide 41: 4. Business Policy
4. Business Policy 41
Slide 42: Evolution of No. 1 in Productivity, No. 1 in Safety
Evolution of No. 1 in Productivity, No. 1 in Safety Evolution of front loading Development, application of new technology, ICT Enhanced implementation structure (March 2017) Structural Architectural BIM-CM Office enhancement Construction (Japan) Front Loading Promotion Section New (branches) Civil E
Slide 43: Acquire values through differentiation
Acquire values through differentiation Create strengths corresponding to competitiveness in each field Stable growth fields (area of specialty) Offer values unique to Toda Group Hospitals, Mountain Lot schools Redevelopment tunnel development Key reinforcement fields Continuously win contracts, impr
Slide 44: Strategic Businesses
Strategic Businesses Promote shifting resources to future income pillars (newly established the Strategic Business Promotion Office in March 2017) Business Main initiatives •Investment, operation of earning properties, lot development projects, etc. Investment •Promote Kyobashi 1-chome East Side dev
Slide 45: Strengthen Management Base, Improve Stakeholder Value
Strengthen Management Base, Improve Stakeholder Value Boost diversity, variety, potential of Human Human employees through reform for flexible resources resources use of human resources and working styles Improve cash flow and secure Financial Financial appropriate level of internal reserve (about 4
Slide 46: Summary
Summary Maximize corporate value of Toda Group creation Income from value Stable income field Stable, ・ Explore, strengthen advantages (hospitals, schools, sustainable redevelopment, mountain tunnels, lot development, etc.) ・ Utilize assets of the Group (reconstruction of headquarters building, mach
Slide 47: A corporate group that makes your success possible
A corporate group that makes Your success possible 47