Slide 1: Results Briefing for the Year ended March 31, 2022
Results Briefing for the Year ended March 31, 2022 May 18, 2022 TODA CORPORATION 1
Slide 2: Forward-looking statements
This material contains forward-looking statements regarding Toda Corporation and the Group’s corporate plans, strategies, and earnings forecasts. These statements are Toda Corporation’s forecasts based on information available as of the date of the material, which are subject to potential risks and
Slide 3: Today's Program
Today’s Program 1. Results Briefing General Manager of Corporate Administration Group Toshihiro Yamazaki 2. Medium-Term Management Plan 2024 Rolling Plan President and Representative Director Seisuke Otani 3
Slide 4: 1. Results Briefing
1. Results Briefing General Manager of Corporate Administration Group Toshihiro Yamazaki 4
Slide 5: 1-1. Results Overview
1-1. Results Overview 5
Slide 6: FY2021 Highlights
FY2021 Highlights ■ Consolidated Net Sales: ¥501.5 billion (-1.1% YoY) Consolidated net sales decreased 1.1% YoY to ¥501.5 billion, mainly due to decrease in domestic architectural construction business. ■ Operating Income: ¥24.3 billion (-12.0% YoY) Operating income decreased 12.0% YoY to ¥24.3 bil
Slide 7: FY2021 Results Overview
FY2021 Results Overview FY2021 FY2020 May 2021 Change Difference vs forecast Results (Billions of yen) (YoY) forecast Consolidated net sales 507.1 515.0 501.5 -1.1% -13.4 Operating income 27.6 23.6 24.3 -12.0% +0.7 Ordinary income 30.3 25.7 28.1 -7.4% +2.4 Net profit attributable to owners 19.7 16.9
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works Nagareyama Sogo Kaihatsu Special Purpose GLP ALFALINK Nagareyama 4 Project Company N Building Construction University of the Ryukyus (Nishi-Futenma) Faculty of University of the Ryukyus Medicine related facility construction project (Tentative name
Slide 9: Main Carryover Works
Main Carryover Works Ordering Parties Name of Works Shibuya Station Sakuragaoka Exit District Shibuya Station Sakuragaoka Exit District Type 1 Building Construction Redevelopment Association Urban Redevelopment Project St. Marianna University School of Medicine St. Marianna University School of Medi
Slide 10: [Non-consolidated] Carryover Works
[Non-consolidated] Carryover Works Architectural Civil Engineering Overseas Total (Billions of yen) Construction 800.0 751.2 Difference vs 738.5 Overseas 4.3 717.2 forecast Overseas 3.6 (Billions of yen) Overseas 4.5 700.0 Civil Engineering Civil Engineering 600.0 277.1 Civil Engineering 263.6 279.8
Slide 11: 1-2. Details of Financial Results
1-2. Details of Financial Results 11
Slide 12: [Consolidated] Toda Group
[Consolidated] Toda Group 30 Business Subsidiaries in Japan Overseas Subsidiaries companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Chiyoda Kenkou Co., Ltd. Thai Toda Corporation Ltd. Toda Road Co., Ltd. 15 Construction Toda Vietnam Co., Ltd. companies Sato Kogyo Co., Ltd. Showa Ke
Slide 13: [Consolidated] Balance Sheets
[Consolidated] Balance Sheets Assets (Billions of yen) Liabilities and Net Assets (Billions of yen) +25.4 761.1 +25.4 761.1 735.7 735.7 Notes and accounts payable- trade -16.2 Current Current Short-term loans +11.6 Cash and deposits +25.5 Current Commercial papers- liabilities liabilities Current Re
Slide 14: [Consolidated] Change in Investment Securities
[Consolidated] Change in Investment Securities Book Value Valuation Difference Nikkei Stock Average (Billions of yen) Share price (yen) 29,178 350 30,000 27,821 300 25,000 21,205 250 18,917 20,000 200.2 192.6 200 178.6 157.6 15,000 150 114.5 105.7 96.7 74.5 10,000 100 5,000 50 86.9 81.9 83.1 85.7 0
Slide 15: [Consolidated] Change in Interest-Bearing Liabilities
[Consolidated] Change in Interest-Bearing Liabilities Short-term Long-term (Billions of yen) 210.0 +28.3 179.3 151.0 84.2 111.8 82.7 210.0 62.3 95.1 68.2 49.4 March 2020 March 2021 March 2021 March 2023 (forecast) D/E ratio 0.41X 14.7％ 0.49X 0.57X - (D/E ratio = Interest-bearing debt/Equity) 15
Slide 16: [Consolidated] Change in Provision for Loss in Construction Contracts
[Consolidated] Change in Provision for Loss in Construction Contracts Architectural Construction Civil Engineering (Billions of yen) 4.00 Overseas 3.20 -0.8 3.00 2.75 2.66 Overseas 0.05 Overseas 1.01 2.00 Overseas 2.67 Civil Engineering 2.19 1.00 Civil Engineering 1.58 Civil Engineering Architectura
Slide 17: [Consolidated] Change in SG&A
[Consolidated] Change in SG&A (Billions of yen) Consolidated Non-consolidated 10.00 SG&A Ratio 10.0% 8.2% 7.6% 7.3% 8.0% 6.0% 4.25 4.0% 3.71 3.82 3.70 3.26 3.33 2.0% 0.00 0.0% March 2021 March 2022 March 2023 (forecast) 17
Slide 18: [Consolidated] Statement of Cash Flow
[Consolidated] Statement of Cash Flow (Billions of yen) +25.5 Profit before income taxes 28.2 Accounts payable-trade -16.2 Cash and cash Depreciation and amortization 4.7 equivalents at end of Cash and cash period Real estate for sale 4.3 equivalents at 129.3 beginning of period 103.7 Increase in fu
Slide 19: 1-3. Earnings Forecasts
1-3. Earnings Forecasts 19
Slide 20: FY2022 Earnings Forecasts
FY2022 Earnings Forecasts FY2022 FY2021 (Forecasts) Change (YoY) (Billions of yen) Consolidated net 501.5 520.0 3.7% +18.4 sales Operating 24.3 20.5 -15.9% -3.8 income Ordinary income 28.1 22.9 -18.5% -5.2 Profit attributable to owners of the parent 18.5 18.8 1.3% +0.2 Net Income Orders received (no
Slide 21: [Non-consolidated] Earnings Forecast for Construction Business
[Non-consolidated] Earnings Forecast for Construction Business (Billions of yen) (Billions of yen) (％) Gross Profit Margin on Orders Received for Net Sales of Completed Completed Construction Construction Construction Contracts Contracts 453.0 Civil 452.2 440.0 Overseas 430.9 Overseas engineering 16
Slide 22: FY2022 Non-consolidated Earnings Forecasts
FY2022 Non-consolidated Earnings Forecasts Amount (billions of yen） Profit margin (%) Net sales 459.0 Gross Profit 54.1 11.8 Profits in the construction 48.8 11.1 business [Domestic architectural construction] (27.7) (9.0) [Domestic civil engineering] (20.7) (16.0) [Overseas] (0.3) (12.5) Profits in
Slide 23: 2. Medium-Term Management Plan 2024 Rolling Plan
2. Medium-Term Management Plan 2024 Rolling Plan President and Representative Director Seisuke Otani 23
Slide 24: Backgrounds for establishment of the rolling plan
Backgrounds for establishment of the rolling plan Strengthen strategy in response to the change in environment and aim to enhance corporate value Completion of the New Toda Building 150th anniversary 2020 2021 FY2022 - FY2024 ・・・ 2031 Medium-Term Management Plan 2024 Prolonged COVID-19 Medium-Term M
Slide 25: Future Vision CX150
Future Vision CX150 The Toda Group’s vision for its 150th anniversary in 2031 25
Slide 26: Concept framework
Concept framework Mission A corporate group that realizes “Joys” Vision -Vision of society- Co-creation society A society where people coordinate/collaborate, creating a virtuous cycle where new values are generated, and happiness and sustainability are realized Value -Key approach and actions- Gate
Slide 27: Gatekeeper of value
Gatekeeper of value Create new value through aggregation with partners Supply Demand Gatekeeper Mobility Users Consumers ICT Aggregation New Virtuous cycle in society (Collaboration) Value (Co-creation society) Local Business Community Energy Partners Health Create new value by realizing unprecedent
Slide 28: Business Development
Business Development Contribute to realization of co-creation society through business development in four areas [Smart Energy Complex City] [Infrastructure Operation] (SECC) + Social capital [Energy Management] Urban/Social Infrastructure [Floating Off-shore Wind Farm] Area Environment/Energy Area
Slide 29: Basic Business Framework
Basic Business Framework Promote sustainable growth by building a strong closed loop (Solution x Data x Management) Improve experiential value (convenience, comfort, etc.) of users Solution Technology/expertise/ Obtain/visualize knowledge of partners management data Data (experiential value data
Slide 30: Medium-Term Management Plan 2024 Interim Review
Medium-Term Management Plan 2024 Interim Review 30
Slide 31: Environment Recognition
Environment Recognition Construction Investment Construction Material Price Index (Trillions of yen) (Tokyo, 2011=100) Civil Engineering Government 80 135 Civil Engineering Private Sector Architectural Construction Government 130.5 Architectural Construction Private Sector 70 130 61.3 61.8 62.5 61.7
Slide 32: Performance Targets/Results
Performance Targets/Results Revenue growth stalling due to increased competition and soaring materials cost Architectural Construction Civil engineering Investment development / Environment & energy Group companies Consolidated Net Sales Operating Income/ Operating Margin (Billions of yen) 7.0% 600.
Slide 33: Status of Growth Investment
Status of Growth Investment Promote steady investment, execute large-scale investments from FY2022 Real estate development Environment/energy, etc. M&A/CVC Major investments NET Investment Investments (Aggregated) (Billions of yen) 160.0 41.2 Minamisuna Corporate 26.6 Dormitory/Training Center 111 P
Slide 34: Non-financial Targets
Non-financial Targets FY2020 FY2021 FY2024 Quantitative Evaluation Indicators Results Results Target CO2 emissions reduction rate (vs Decrease by Environment 2.4% -0.9% FY2019) 10% or more Society Total accident frequency rate 3.60 2.88 1.00 or less Construction sites: Rate of 8-days 38.8% 35.7% 100
Slide 35: Basic Policy and Goals
Basic Policy and Goals 35
Slide 36: Basic Policy for the Rolling Plan
Basic Policy for the Rolling Plan Realize Enhance Future business Vision portfolio CX150 Provide truly recognized Promote growth investments to values to all stakeholders by strengthen business portfolio such realizing Future Vision CX150 as the New Toda Building and floating offshore wind power 36
Slide 37: FY2024 Performance Targets
FY2024 Performance Targets FY2021 FY2024 FY2021 to FY2024 Results Target Consolidated net sales ¥501.5 billion c. ¥600.0 billion +19.6% Profitability Operating income ¥24.3 billion ¥33.0 billion + +35.3% Operating margin 4.9% 5.5% + +0.6P Profit ¥18.5 billion ¥26.0 billion + +40.1% Capital efficienc
Slide 38: Performance targets by business segment
Performance targets by business segment Architectural Construction Civil engineering Investment & development / Environment & energy Group companies Net Sales Operating Income *( ) indicates operating margin (Billions of yen) 600.0 55.0 33.0 501.5 50.0 3.5 (6.4) 45.1 24.4 5.3 (10.6) 145.0 24.3 1.9 (
Slide 39: Basic Strategy
Basic Strategy 39
Slide 40: To achieve the earnings target
To achieve the earnings target Realize growth for both core business and priority areas Consolidated Net Sales Operating Income (Billions of yen) Priority business Businesses aiming for medium- to 600.0 long-term growth 58.5 Active involvement by top 501.5 management 15.0 33.0 New Toda Building
Slide 41: Strategic Scenario
Strategic Scenario Promote focus areas towards revenue contribution from FY2025 onwards 150th Phase 1 Phase 2 Phase 3 anniversary (FY) 2022 to 2024 To 2027 To 2030 2031 Promote Smart Innovation Core business (Architectural Construction Enhance experiential value (customer experience) Civil Engineeri
Slide 42: Promote Smart Innovation
Promote Smart Innovation Enhance value as a company that “sells technology” Enhance safety and productivity with automated construction and utilization of new technologies/ICT Create new business model with digital transformation Unmanned tunnel support construction project Technology R&D invest
Slide 43: Enhance experiential value (customer experience)
Enhance experiential value (customer experience) Design the “experience” up to the use of building by the customer Create new customer value by incorporating experiential value for revenue growth [Market/Customer needs] Experiential value [CX150 Business Development Area] （Manager/User) Surprise Sec
Slide 44: Establish value units (VU)
Establish value units (VU) Promote technology/solutions based on VU (Internal/external collaboration, open innovation, etc.) Business development area VU Vision and focus area Intellectual Office Minimize resource investment (labor, productivity School time, etc.) by creating space environment and
Slide 45: Case Study: Echizen City's Example of Smart City
Urban/Social Infrastructure Area Case Study: Echizen City’s Example of Smart City (Echizen Takefu Innovation Valley) Landscape with plaza and green infrastructure Image of the district viewed from Echizen-Takefu along the north-south line Station Selected as the partner corporation for the “Public
Slide 46: Positioning and Initiatives Concerning the Priority Area
Positioning and Initiatives Concerning the Priority Area New Toda Building Overseas Renewable energy Image of floating off-shore wind farm] Deploy construction and As the flagship of our development business Commercialize the hybrid spar type floating offshore wind technology, construct a main
Slide 47: Investment Plan and Capital Allocation
Investment Plan and Capital Allocation Utilize interest- Cash Allocation Policy Investments for growth Business area expansion/ bearing debt (FY2022 - FY2024 aggregated amount) increase value of assets *Maintain financial Real estate soundness ¥160.0 billion development D/E ratio Income taxes Enviro
Slide 48: Investments for growth
Investments for growth Floating offshore Amount/breakdown of wind power investments for growth New Toda generation Composition ratio (%) Building New Toda Building and floating 10.5% (Approx. ¥20.0 31.6% offshore wind power generation billion) (Approx. ¥60.0 account for 40% overall billion) Real
Slide 49: Enhancement of Investment Process
Enhancement of Investment Process Established Investment Adopted ROIC by business Screening Division segment (Established in Corporate Administration Group in March 2022) (Applied to management accounting from FY2022) Screen proposals from business Visualize cost of capital for each units from p
Slide 50: Enhance ESG management: non-financial target
Enhance ESG management: non-financial target Re-established priority management indicators based on *See appendix the basic policies on sustainability Quantitative evaluation indicators Medium-Term Target (FY2024) E CO2 emissions Scopes 1+2 Reduction rate (vs FY2020） -16.8% Basic unit (100 mil yen)
Slide 51: CO2 Emissions (1)
Scope 1 Direct CO2 emissions from the use of diesel, etc. CO2 Emissions (1) Scope 2 Indirect CO2 emissions by power plants for use of purchased electricity/heat CO2 Emissions (Scope 1+2) Office, etc. Scope 2 Office, etc. Scope 1 Aim at medium-term target Civil Engineering Scope 2 aligned with SBT ta
Slide 52: CO2 emissions (2)
CO2 emissions (2) Scope 3 Indirect emissions other than Scope 1 and 2 (emissions from other companies in relation to our business) CO2 Emissions (Scope 3) Other Emissions from buildings constructed by Toda during operation (Category 11) Emissions during manuracturing of construction materials (Categ
Slide 53: Governance Reform
Governance Reform Change to directors and executive officers system that separates management supervision and business execution *after the general meeting of shareholders Board of Directors Improve effectiveness of the Board of General Directors Meeting of Board of Directors discusses managemen
Slide 54: Organizational Reform: Company-wide Optimization
Executive Unit Organizational Reform: Company-wide Optimization *From March 1, 2022 Current Matrix System Direction of Reform Large headquarters, branches struggling Strengthen top management functions to cooperate (management/strategy/planning) Same functionality scattered among Centralize
Slide 55: Deploy to Functional Strategy
Deploy to Functional Strategy Deploy technology / DX / human resources / financial strategies in accordance with the basic strategy Human Resource Strategy Recruit/develop diverse/self-motivated personnel Basic Strategy Acquire and utilize Technology R&D based on VU Core VU Management experiential v
Slide 56: To conclude: Brand Slogan
To conclude: Brand Slogan Build the Culture. Built by people. Built with people. Imagine the people who will be here and the stories that starts now, to create a future full of smiles. Create with ideas. Create with passion. Create by uniting the aspiration of people. Human creation with intelligenc
Slide 57: appendix
appendix 57
Slide 58: Floating complex
Floating complex Offshore wind power plant and floating housing 58
Slide 59: Floating complex
Floating complex 59
Slide 60: Basic Policies on Sustainability
Basic Policies on Sustainability Sustainability Vision 2050 A corporate group that creates a better future Materiality CX150 (target/strategy) Non-financial targets CX150 CX150 E Create cities that support Develop infrastructure in prosperous life harmony with Realize a decarbonized environment soci
Slide 61: nz” TODA
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