Slide 1: Results Briefing for the Year Ended March 31, 2019
Results Briefing for the Year Ended March 31, 2019 May 15, 2019 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. Management Plan Progress Status 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, 2019
1-1. Summary of Financial Results for the Year Ended March 31, 2019 5
Slide 6: Highlights: FY2018
Highlights: FY2018 Consolidated net sales: ¥510.4 billion, up 19.0% year-on-year ： Consolidated net sales rose by 19.0% year-on-year to ¥510.4 billion due to increased net sales for domestic construction Operating income: ¥34.5 billion, up 13.3% year-on-year ： Progress in profitable major constr
Slide 7: Summary: FY2018
Summary: FY2018 (Billions of yen) FY2018 FY2017 Forecasts Change (announced Actuals (year on Difference in Feb. 2019) (vs. forecast) year) Consolidated net sales 429.0 507.0 510.4 19.0% +3.4 Operating income 30.4 30.4 34.5 13.3％ +4.1 Ordinary income 33.0 33.2 37.4 13.5% +4.2 Profit attributable to o
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works New building of Akabanedai Campus, Toyo Toyo University University Architectural Construction Urban Renewal Association for New construction of facilities for first phase of urban First District Around South Gate renewal works for First District ar
Slide 9: 1-2. Details of Financial Results
1-2. Details of Financial Results 9
Slide 10: (Consolidated) Toda Group
(Consolidated) Toda Group 21 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. 11 Construction Toda Road Co., Ltd. Toda Vietnam Co., Ltd. companies Sato Kogyo Co., Ltd. 2 other
Slide 11: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A ratio 40.0 7.0% 8.0% 6.8% 6.4% 35.5 30.0 32.5 6.0% 31.5 29.8 28.9 26.8 20.0 4.0% 10.0 2.0% 0.0 0.0% FY2017 FY2018 FY2019 (forecast) 11
Slide 12: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets Assets (Billions of yen) Liabilities and Net Assets (Billions of yen) +109.4 +109.4 667.7 667.7 Notes and accounts payable – trade +26.8 Cash and deposits +16.8 Commercial papers +50.0 558.3 Notes and accounts 558.3 Income taxes payable +6.1 receivable – trade +90.2 Sec
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) 300.0 25,000 21,454 21,205 250.0 18,909 20,000 16,758 200.0 174.7 178.6 168.7 15,000 154.8 150.0 91.1 96.1 96.7 79.2 10,000 100.0 5,000 50.0 75.7 77.6 78.6 81.9 0.
Slide 14: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term (Billions of yen) 132.0 +56.5 112.0 52.5 75.4 70.2 112.0 40.4 49.9 79.4 29.8 25.4 Mar-17 Mar-18 Mar-19 Mar-20 (forecast) D/E ratio 14.7％ 0.45x 0.43x 0.68x — 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 Overseas Total 4.0 (Billions of yen) 3.60 3.27 3.5 Overseas 0.04 3.0 2.5 2.0 3.27 Civil engineering 1.5 3.17 1.0 0.44 0.5 Architectural construction 0.33 0.06 0.02 0.26 0.06 0.0 0.09 Ma
Slide 16: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) ＋9.5 Cash and cash equivalents at Cash and cash beginning of equivalents at period Income before income taxes 38.3 end of period Notes and accounts payable – trade 25.7 96.5 Increase in funds 100.5 Notes and accounts receivable – trade −90.3 Ad
Slide 17: 1-3. Performance Forecasts
1-3. Performance Forecasts 17
Slide 18: Forecasts for FY2019 (Year Ending March 31, 2020)
Forecasts for FY2019 (Year Ending March 31, 2020) (Billions of yen) FY2019 FY2018 Change Forecasts (year‐on‐year) Consolidated net 510.4 520.0 1.9% 95.6 sales Operating 34.5 30.7 −11.1％ −3.8 income Ordinary income 37.4 32.8 −12.5％ −4.6 Profit attributable to owners of the parent 25.5 22.8 −10.9％ −2.
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 2.2 Overseas Overseas Civil 155.8 7.0 Engineering 4.5 6.0 Civil 17.7 Civil 115.0 Eng
Slide 20: Non-consolidated Forecasts for FY2019
Non-consolidated Forecasts for FY2019 Amount (billions of yen) Profitability (%) Net sales 471.5 Gross profit 60.0 12.7 Profits in the construction business 56.4 12.2 [Domestic architectural construction] [39.0] [11.5] [Domestic Civil engineering] [17.0] [14.5] [Overseas] [0.4] [6.7] Profits in inve
Slide 21: 2. Management Plan Progress Status
2. Management Plan Progress Status 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 Establish a foundation to realize the global vision FY2015 – FY2016 FY2017 – FY2019 FY2020– Phase I Phase II Establishing Building profit base for Continuous growth foundation
Slide 23: 2-1. Achievements and Issues
2-1. Achievements and Issues 23
Slide 24: Changes in Operating Income by Business
Changes in Operating Income by Business Domestic construction business continued to drive profit increases (Strategic businesses) Domestic Investment & Domestic Consolidated Domestic Construction construction development + Group Overseas eliminations Business new fields companies ・ Net sales increas
Slide 25: Change in Construction Work Carried Forward
Change in Construction Work Carried Forward Securing high level results due to an increase in orders received Domestic Architectural Construction Domestic Civil Engineering 496.0 469.3 423.4 239.2 182.8 182.4 (Billions of yen) FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 (Fiscal year end) 25
Slide 26: Construction Work Carried Forward by Construction Category
Construction Work Carried Forward by Construction Category A shift to key fields and evolution of the value we provide Domestic Architectural Construction (%) Domestic Civil Engineering (%) Other 1.9 Accommodations 5.9 Warehousing and Tunnels distribution 7.2 Other 24.6 22.9 Offices 27.0 Production
Slide 27: Safety Results and Productivity Indices
Safety Results and Productivity Indices Continuous improvements of safety and productivity Safety Results Productivity Indices (Domestic Construction Business) (non-consolidated) Total number of accidents Labor productivity (millions of yen) Total accident frequency rate Net sales/employees (million
Slide 28: Investment Plan Progress Status
Investment Plan Progress Status Investment surpassing planned levels to diversify business ¥74.9 billion FY2019 investment breakdown (%) (Initial plan: ¥72.0 billion) Technology FY2019 and ICT Forecast Approximately 11.3 ¥31.0 billion New fields Investment & 17.7 development 71.0 FY2018 Actuals ¥32.
Slide 29: Challenges and Initiatives
Challenges and Initiatives Creating new value by connecting information, technology and resources Front loading in all businesses Coordination among different businesses and development of new technology and business Corporate practice that solves issues • Developing environmental/energy busin
Slide 30: 2-2. Business Result Forecast by Business
2-2. Business Result Forecast by Business 30
Slide 31: Net Sales and Operating Income by Business
Net Sales and Operating Income by Business (Billions of yen) Upper: Net sales FY2019 Medium-term targets Lower: Operating income FY2018 Actuals （FY2019） Forecast Domestic architectural 355.0 340.0 340.0 construction 24.7 7.0% 18.3 5.4% 16.5 Domestic civil 99.0 117.5 115.0 engineering 11.0 11.2% 9.8
Slide 32: Shareholder Returns
Shareholder Returns Total shareholder returns・ total return ratio Total purchase of treasury stock Total annual dividends Total return ratio 10.0 34.2 40 29.6 Mid-term 8.0 23.8 24.0 30 (Billions of yen) target: 2.50 approx. 30% 6.0 0.0 20 ︵％︶ 0.01 4.0 10 6.1 6.1 6.7 2.0 4.6 0 0.0 (10) FY2016 FY2017
Slide 33: 2-3. Toward the Next Medium-term Management Plan
2-3. Toward the Next Medium-term Management Plan 33
Slide 34: Future Population Changes
Future Population Changes (Billions of people) 10.0 Market expansion 9.772 8.0 Global Potential (+32.4%) 7.383 6.0 Evolution of digital technology (Millions of Creation of New business people) 200.0 Japan/Global Globalization of customers (%) 180.0 2.0 1.72% Decline of existing business models 160.0
Slide 35: Changes in Construction Investment and Our Net Sales
Changes in Construction Investment and Our Net Sales Making buildings Creating value for customers (Trillions of yen) Buildings with Labor-intensive business through buildings uniform functions Specializing in construction technology Paradigm Creating value Creativity with data Multiple specialties
Slide 36: Efforts to evolve business
Efforts to evolve business Performance Invigorating corporate activity Effective use of capital, human Lifting efforts resources, networks, and information Strategic initiatives based on market projections ・ Strategic business (investment & development, environment & energy, etc.) ・ Investment in te
Slide 37: Reconstruction of the TODA Building
Reconstruction of the TODA Building FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (December) Removal process Construction process Demolition Construction work Moving in Creating Toda Innovation Site Creating a building of high added value Mechanization Automation Energy Zero/low Computerization C
Slide 38: Fostering human resources for continuous growth
Fostering human resources for continuous growth Creating working styles and staff evaluation system suited to the coming era Stable era/contracting era VUCA Era （Volatility/Uncertainty/Complexity/Ambiguity） Increase in diverse Set ways won’t work business opportunities Set ways of business Different
Slide 39: Practicing ESG-conscious management
Practicing ESG-conscious management Contribution to continuous development of society, customers, and the Group Environmental/energy business, zero-carbon initiatives, contributing to Development of diverse Securing/fostering supporters, promoting a recycling society, etc. business activities divers
Slide 40: Environment, Social, Governance initiatives
TO-MINICA CASBEE Waste reduction/reuse Biotopes CO2 emission rights Green procurement Protection of rare animals Bio oil RE100, CDP, SBT Eco first Zero carbon/low carbon Resource recycling Biodiversity preservation [Act on Promotion of Global [Paris Agreement] [Basic Act on Estab
Slide 41: Direction in the Medium Term
Direction in the Medium Term Developing diverse, strong business from a global perspective Strengthening strategic business Evolving the construction business Serving and gaining globalizing customers 41
Slide 42: A corporate group that makes your success possible
A corporate group that makes your success possible 42