Slide 1: Results Briefing for the Year ended March 31, 2023
Results Briefing for the Year ended March 31, 2023 May 19, 2023 TODA CORPORATION 1
Slide 2: Forward-looking statements
This material contains forward-looking statements regarding TODA CORPORATION and the Group’s business plans, strategies, and earnings forecasts. These statements are TODA CORPORATION’s forecasts based on currently available information and may involve potential risks and uncertainties. The actual re
Slide 3: Today's Program
Today’s Program １．Results Briefing General Manager of Corporate Administration Group Toshihiro Yamazaki ２．Progress of the Management 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: FY2022 Financial Highlights (Consolidated)
FY2022 Financial Highlights (Consolidated) Consolidated net sales FY2021 FY2022 Change FY2023 ¥547.1 bil (+9.1％ YoY) (Billions of yen) (YoY) (Forecast) ︓ Net sales increased 9.1% YoY to ¥547.1 Consolidated net 501.5 547.1 540.0 9.1% bil, mainly due to increase in sales in the sales overseas invest
Slide 6: [Consolidated] Results by Segment
[Consolidated] Results by Segment （Billions of yen） Domestic Domestic Overseas Architectural Civil Investment Environment FY2022 Construction Engineering and Group Investment and and Energy Adjustment Total Companies Development Development Net sales 343.8 141.6 19.5 52.3 26.4 1.5 -38.1 547.1 Segmen
Slide 7: Major Orders Received
Major Orders Received Ordering Parties Name of Works Maishima Development SPC (Tentative name) DPL Osaka Maishima Construction Work Architectural Construction Lam SPC ESR OS1 Data Center Construction Work Sun Rise Inzai 4 SPC (Tentative name) Sun Rise Inzai 4 DC Construction Work National Printing B
Slide 8: Major Carryover Works
Major Carryover Works Ordering Parties Name of Works Shibuya Station Sakuragaoka Exit Shibuya Station Sakuragaoka Exit District Type 1 Urban Architectural District Redevelopment Redevelopment Project Association Construction St. Marianna University School of St. Marianna University School of Medicin
Slide 9: [Non-consolidated] Carryover Works
[Non-consolidated] Carryover Works （Billions of yen） The amount carried over to the next fiscal year decreased slightly from the 717.2 738.5 718.6 previous fiscal year. 4.5 3.6 In the domestic construction business, Overseas 0.5 both public and private sector Civil construction decreased, result
Slide 10: 1-1. Details of Financial Results
１-1．Details of Financial Results 10
Slide 11: [Consolidated] Overview of TODA Group
[Consolidated] Overview of TODA Group Business Subsidiaries in Japan Overseas Subsidiaries 39 companies APEC Engineering Co., Ltd. Construtora Toda do Brasil S/A Chiyoda Kenkou Co., Ltd. PT Tatamulia Nusantara Indah Construction Toda Road Co., Ltd. Thai Toda Corporation Ltd. 23 Sato Kogyo Co., Ltd.
Slide 12: [Consolidated] Balance Sheets Assets
[Consolidated] Balance Sheets Assets Major variable factors (Billions of yen) Current Assets +45.0 +54.3 815.5 761.1 Cash and deposits -23.6 Accounts receivable ＋73.9 Securities -9.5 Current +45.0 Current Assets Non-current assets +16.8 Assets 431.5 Buildings and structures ＋6.3 386.5 Machinery, v
Slide 13: [Consolidated] Balance Sheets Liabilities and Net Assets
[Consolidated] Balance Sheets Liabilities and Net Assets Major variable factors (Billions of yen) Current liabilities +10.9 815.5 761.1 +54.3 Notes and account payable-trade +13.5 Short-term loans payable +21.5 Current Commercial paper -20.0 Current liabilities Corporate bonds redeemable -10.1 lia
Slide 14: [Non-consolidated] Cross-Shareholdings
[Non-consolidated] Cross-Shareholdings Number of stocks The balance of cross-shareholdings is being reduced to secure financing 157 159 156 for investments in growth. At least ¥30 bil worth of cross- shareholdings to be sold over three years (FY2022 – FY2024) (Billions of yen) * Market value bas
Slide 15: [Consolidated] Interest-Bearing Liabilities
[Consolidated] Interest-Bearing Liabilities During FY2022, interest- （Billions of yen） bearing liabilities increased by 245.0 ¥32.1 bil due to ¥21.5 bil 211.5 increase in short-term loans payable and ¥35.7 bil increase 179.3 in long-term loans payable, 151.0 Long while commercial paper and corpora
Slide 16: [Consolidated] Provision for Loss in Construction Contracts
[Consolidated] Provision for Loss in Construction Contracts （Billions of yen） 9.43 Provision for loss in Overseas 0.05 construction contracts Civil Engineering + ¥6.76 bil (YoY) 2.89 Major variable factors: In several projects in +¥6.76 bil domestic construction business, the cost of constructio
Slide 17: [Consolidated] SG&A
[Consolidated] SG & A （Billion of yen） FY2022 On non-consolidated basis, the 9.3% expenses increased by ¥3.3 bil, mainly due to increase in SG&A Ratio technology R&D and digitalization costs. 7.9% In addition to the above factors, 7.6% Consolidated 50.0 on consolidated basis, the Consolidated expe
Slide 18: [Consolidated] Cashflow
[Consolidated] Cashflow Net increase (decrease) in cash and cash equivalents (Mar 2022 to Mar 2023) -33.4 Operating CF -30.8 Inv CF -26.1 Financial CF +22.5 （Billions of yen） +6.2 +7.1 +17.8 129.3 +51.6 -57.3 +0.0 +0.9 95.8 -4.6 -9.1 +12.0 -2.3 -35.8 -20.0 Investment Income March before tax Deprecia
Slide 19: 1-2. Earnings Forecasts
１-２．Earnings Forecasts 19
Slide 20: [Consolidated] FY2023 Earnings Forecasts
[Consolidated] FY2023 Earnings Forecasts （Billions of yen） FY2023 FY2022 Forecasts Change (YoY) Consolidated net sales 547.1 540.0 -1.3% -7.1 Operating income 14.1 16.0 +13.2％ +1.8 Ordinary income 19.0 19.5 +2.4％ +0.4 Net income attributable to 10.9 19.5 +77.3％ +8.5 owners of parent Orders received
Slide 21: [Non-consolidated] FY2023 Earnings Forecasts
[Non-consolidated] FY2023 Earnings Forecasts Amount Profit margin (¥bil） (%) Net sales 440.0 Gross profit 53.5 12.2 Profit from construction business 47.0 11.2 [Domestic architectural construction] 25.9 9.0 [Domestic civil engineering] 20.9 16.2 [Overseas] 0.0 6.2 Profit from investment and developm
Slide 22: [Non-consolidated] Earnings Forecasts for Construction Business
[Non-consolidated] Earnings Forecasts for Construction Business Orders Received for Net Sales of Completed Gross Profit Margin on Construction Construction Contracts Completed 700.0 （Billions of yen） 700.0 （Billions of yen） Construction Contracts (%) Civil Engineering 426.7 460.0 600.0 446.5 420.0 6
Slide 23: 2. Progress of the Management Plan
2．Progress of the Management Plan President and Representative Director Seisuke Otani 23
Slide 24: Results
Results 24
Slide 25: Market Environment: Construction investment
Market Environment Construction investment stayed flat in FY2022; slight increase expected in FY2023 In FY2022, construction Construction Investment investment stayed flat (Trillions of yen) (Nominal value) Forecasts despite pickup in the 80 domestic economy due to 66.6 66.7 68.4 progress in the 7
Slide 26: Market Environment: Rising prices of construction materials and labor
Market Environment Source: Calculated from Ministry of Land, Infrastructure, Transport and Tourism, and Construction Research Institute data Rising prices of construction materials and labor pushing up construction costs Construction Material Price Index Construction design (Tokyo, based on 2015) la
Slide 27: Forecasts and Results
Forecasts and Results 2022 2024 2023 Target Forecasts Actual Forecasts (Medium-term Plan) Consolidated sales 520.0 547.1 540.0 600.0 ¥ bil Profitability Operating income 20.5 14.1 16.0 33.0 ¥ bil Operating margin 3.9 2.6 3.0 5.5 ％ Capital Net income 18.8 10.9 19.5 26.0 ¥ bil efficiency ROE 6.0 3.5 6
Slide 28: Results by Segment
Results by Segment * Sales and operating income by each segment do not match the totals because of the inclusion of consolidation eliminations. * Figures for FY2023 onwards include adjustments for segment reclassification. (Construction-related overseas subsidiaries are scheduled to be transferred f
Slide 29: Carryover Works (Architectural Construction)
Construction Carryover Works (Architectural Construction) Business FY2021 FY2022 Stores 0.7 Others 1.6 Others 2.2 Stores 2.5 Others Accommodations Accommodations ［¥13.9 bil］ 3.4 4.0 2.9 Offices and Factories Others Factories government and power buildings ［¥14.6 bil］ and power Offices and Redevelopm
Slide 30: Carryover Works (Civil Engineering)
Construction Carryover Works (Civil Engineering) Business FY2021 FY2022 Others Erosion and 9.8 Erosion and flood flood control Others control 1.3 12.6 1.5 Roads Land Land development 35.0 development 5.5 Roads 7.2 ［¥92.7 bil］ ［¥15.3 bil］ 43.0 ［¥19.1 bil］ Carryover Renewable Carryover energy Works Wo
Slide 31: Business Conditions (Key Challenges for FY2023)
Business Conditions（Key Challenges for FY2023） Measures to address the cause of deteriorating business conditions (high Business inflation etc) Recovery Strengthen agility and organizational responsiveness to environmental changes HR development, skill development, mid-career hirings Investmen
Slide 32: Investments
Investments 32
Slide 33: Investment Plan
Investment Plan Full scale investment in new TODA BUILDING in FY2023 2022 Medium- term Planned at 2023 Business Plan beginning of Actual Plan 2024 the term （2022-2024） Real Estate Development 27.3 42.0 （New TODA 77.0 （New TODA ¥bil 160 ¥bil Investments Environment & BLDG: 9.2） BLDG: 30.0) for Growth
Slide 34: Investments for Growth
Investments for Growth Real estate development Environment & energy M&A Full scale investment in new TODA BUILDING in FY2023 Planned investments other than new TODA BUILDING Investment Recovery (by fiscal year) 103.0 (Billions of yen) 26.0 Net Investment 86.0 77.0 41.8 3.9 Agri-Science Valley Joso 1
Slide 35: Investment in Intangible Assets
Investment in Intangible Assets Human capital Technology R&D Digitalization Actively investing in technology R&D Main Technology R&D (FY2022 News Release) Intangible asset (Billions of yen) investment (by fiscal year） 18.0 Remote control room 3.5 13.5 Remote control system for concrete 6.5 spraying
Slide 36: Priority Initiatives
Priority Initiatives 36
Slide 37: Priority Initiatives Roadmap
Priority Priority Initiatives Roadmap Initiatives New TODA BUILDING construction volume peaks and overseas business growth strategy Phase1（Medium-term Phase2 Phase3 150 th Plan 2024） Anniversary (FY) 2022 2023 2024 To 2027 To 2030 2031 New TODA Monetization, technology and New building constriction
Slide 38: New TODA BUILDING: Progress of construction
Priority New TODA BUILDING Initiatives Progress of construction Steel frame erection Full view of the construction site (as of May 9, 2023) (as of May 16, 2023) 38
Slide 39: New TODA BUILDING: Build a new revenue base
Priority New TODA BUILDING Initiatives Build a new revenue base by creating value with the new head office building TODA CREATIVE LABO Growth Investments Community Smartification Development × × Construction Construction Area Management Digitalization ⇒ Redevelopment and urban revitalization proposa
Slide 40: Overseas Business: Global Business Administration Division
Priority Overseas Business Initiatives Establishment of Global Business Administration Division to centralize management resources Previously FY2023 onwards Overseas business Dept Segment Overseas business Dept Segment Architectural Building Architectural Construction Construction Construction Const
Slide 41: Overseas Business: Southeast Asia / North and South America
Priority Overseas Business Initiatives Southeast Asia / North and South America as the foundation of our growth strategy Stable cash flow generation Information acquisition base North America Overseas business headquarters Increase income gains from investment business Europe Possibility of cont
Slide 42: Floating Offshore Wind Power Generation
Priority Floating Offshore Wind Power Generation Initiatives A defect found in the floating structure in the two units that are currently being fabricated in the ground yard. Carefully handing the three wind turbines already installed offshore, including inspections for quality assurance. The
Slide 43: Non-financial Business Objectives
Non-financial Business Objectives 43
Slide 44: Non-financial Business Objectives
Non-financial Business Objectives Medium-term Quantitative evaluation FY2022 FY2023 Business Plan indicators Target Actual/Forecasts Target (FY2024) Reduction rate E CO2 emissions （vs FY2020） -8.4 (-20.5) -12.6 -16.8 % Scope 1+2 Basic unit (per 100 million yen） 14.1 (11.9) 13.0 11.2 t-CO2 Reduction
Slide 45: Towards Carbon Neutrality
Towards Carbon Neutrality Recognition of excellent achievements of “GREEN OFFICE” at the Tsukuba Technical Research Institute External Evaluation and Certification “GREEN OFFICE” wins Good Design Award In addition to energy conservation, carbon minus through reduction of CO2 emissions, etc., archi
Slide 46: External Evaluations (FY2022 News Releases)
External Evaluations （FY2022 News Releases） Recognized for proactive environmental initiatives to contribute to solving social challenges Placed on the prestigious CDP 2022 A-List for Climate Change 283 companies worldwide and 74 companies in Japan, including TODA CORPORATION, were selected for
Slide 47: Sustainable Growth of Corporate Value
Sustainable Growth of Corporate Value 47
Slide 48: Practice capital efficiency-conscious management
Sustainable Growth of Corporate Value Practice capital efficiency-conscious management Elements of Indicator Internal standards Segmenting in sub-elements improvement → KPIs Net sales ROE ROIC Return on Operating (Return on equity) (Return on invested margin Sales profit ratio invested capital) capi
Slide 49: Build a competitive advantage business portfolio through strategic cash allocation
Sustainable Growth of Corporate Value Build a competitive advantage business portfolio through strategic cash allocation Continuously aim for ROE of 8.0% or more Building a competitive advantage business portfolio Creation of business キャッシュ配分 synergies Cash generation (Expand revenue base Cash alloc
Slide 50: mZ4”A TODA
oO mZ4”A TODA === CORPORATION aa