Toda Corporation · TSE:1860
Toda — Q2 FY2015 Earnings Presentation
38 slides from Toda's earnings presentation, Nov 16, 2015
Slide 1: Results Briefing for the Second Quarter Ended September 30, 2015
Results Briefing for the Second Quarter Ended September 30, 2015 November 16, 2015 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. Progress in Implementation of Management Plan 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 Second Quarter
1-1. Summary of Financial Results for the Second Quarter 5
Slide 6: Highlights: FY2015 2Q
Highlights: FY2015 2Q Consolidated Net Sales: ¥218.4 billion, up 16.3% year-on-year ： Net sales rose 16.3% year-on-year to ¥218.4 billion, as completed construction contracts increased. Operating Income: ¥10.9 billion, up 61.5% year-on-year ： Operating income increased 61.5% year on year, to ¥10
Slide 7: Summary: FY2015 2Q
Summary:FY2015 2Q (Billions of yen) Apr-Sep FY2015 Apr-Sep Forecasts at Change FY2014 the beginning Actuals (year on Difference of the term year) (vs. forecast) Consolidated net sales 187.8 200.0 218.4 16.3% 18.4 Operating income 6.8 4.5 10.9 61.5％ 6.4 Ordinary income 7.6 5.2 11.9 56.2% 6.7 Profit a
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Kuwana City Medical Center Kuwana City Medical Center Construction Hyogo Prefecture New particle radio therapy facility Toyo University Akabanedai Campus new school building ORIX Corp., The Sankei Building Co., Ltd. Sanno Project Kama
Slide 9: Main Works Completed
Main Works Completed Ordering Parties Name of Works Architectural Dokkyo Gakuen Dokkyo Medical University teaching staff quarters Construction Nagasaki Tadewara Solar LLC Nagasaki Mega Solar Power Plant Asahishuzo Co., Ltd. New sake storehouse construction Azabu University Construction of new Block
Slide 10: 1-2. Details of Financial Results
1-2. Details of Financial Results 10
Slide 11: Toda Group (Consolidated)
(Consolidated) Toda Group Business Subsidiaries in Japan Overseas Subsidiaries 14 companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Chiyoda Kenkou Co., Ltd. Toda Construction (Shanghai) Co., Ltd. Construction 8 Architectural Construction Thai Toda Corporation Ltd. companies Toda Vi
Slide 12: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance Apr-Sep FY2015 Toda Corporation Subsidiaries total Consolidated Ratio of consolidated to non- Profit Profit Profit consolidated Billions of yen margin margin margin Net sales 205.2 21.7 218.4 1.06 Gross profit 21.2 10.4 1.3 6.4 22.5 10.3 1.06 Selling, gene
Slide 13: (Consolidated) Factors Contributing to Changes in Operating Income
(Consolidated) Factors Contributing to Changes in Operating Income (Billions of yen) Lower cost of sales, etc. -0.2 -0.2 Net sales Higher -0.2 increase 2.0 employee Higher salaries and allowance for doubtful Other allowances accounts due due to the to increase in across-the- accounts receivable from
Slide 14: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets Assets (Billions of yen) Liabilities and Net Assets (Billions of yen) ＋11.9 +11.9 495.4 507.3 495.4 507.3 Notes payable, accounts payable for construction Notes receivable, accounts contracts and other -4.5 receivable from completed construction contracts and Provision
Slide 15: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei stock average (term-end) (Billions of yen) Stock price (yen) 250.0 19,206 20,000 17,388 200.0 14,827 185.4 15,000 166.2 12,397 147.5 150.0 143.3 110.3 10,000 91.6 60.4 70.4 100.0 5,000 50.0 82.8 77.1 75.1 74.5 0.0
Slide 16: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Long-term Corporate bonds （Billions of yen） Short-term 80.8 80.0 ＋14.5 65.5 66.3 37.4 13.2 33.7 10.0 52.3 32.5 33.4 Mar 2014 Mar 2015 Sep 2015 Mar 2016 (forecast) D/E ratio 0.48x 0.37x 0.46x ー 16
Slide 17: (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) 15.5 2.1 -3.3 7.5 13.4 2.5 4.2 1.9 5.0 2.2 Mar 2014 Mar 2015 15/9 Sep 2015 17
Slide 18: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) ＋3.6 62.8 59.2 Income before income taxes +12.6 Advances received on uncompleted construction contracts +11.9 Cash and cash Cash and cash Notes and accounts receivable – trade (26.4) equivalents equivalents Costs on uncompleted construction con
Slide 19: 1-3. Performance Forecasts
1-3. Performance Forecasts 19
Slide 20: Forecasts for FY2015 (Year Ending March 31, 2016)
Forecasts for FY2015 (Year Ending March 31, 2016) FY2015 FY2014 (Billions of yen) Forecasts Change (year on year) Consolidated net sales 420.3 496.0 75.6 18.0% Operating income 12.9 19.1 6.1 47.2％ Ordinary income 14.8 21.0 6.1 41.8％ Profit attributable to owners of parent 14.0 18.8 4.7 34.0％ Orders
Slide 21: (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 449.7 455.0 Civil Engineering 8.7 8.9 400.0 378.0 95.0 117.6 Total 8.7 Civil 90.0 Civil
Slide 22: Non-consolidated Forecasts for FY2015
Non-consolidated Forecasts for FY2015 Amount（billions of yen） Profitability（％） Net sales 462.5 Gross profit 41.0 8.9 Profits in the construction business 39.3 8.6 [Architectural construction] [31.0] [8.6] [Civil engineering] [8.3] [8.7] Profits in the real estate business 1.7 22.7 Selling, general a
Slide 23: 2. Progress in Implementation of Management Plan
2. Progress in Implementation of Management Plan President Masanori Imai 23
Slide 24: Focus of Medium-term Management Plan 2017
Focus of Medium-term Management Plan 2017 － Break away from conventional concepts and create new value and systems － No.1 in Productivity Foundation for Growth Establish the highest Pursue synergies level of productivity in between business the general domain expansion and construction sector constr
Slide 25: Concept of Business Strategy
Concept of Business Strategy Strong construction Decline in investments Intensified competition investments Labor productivity = Increased added value (Change in construction 2. Strategic business to investments) produce profit Concentrate human resources in investment & development, overseas, group
Slide 26: 2-1. Efforts in First Half
2-1. Efforts in First Half 26
Slide 27: Productivity-related Efforts
No.1 in productivity Productivity-related Efforts 125 Line attaining labor productivity 13 million yen FY2015 Forecasts (Net sales per employee [million yen]) (medium-term goal) Net sales per employee : ¥101.0mn Operating income ratio : 4.0% Labor productivity : ¥13.50mn 100 75 FY2014 Results Net sa
Slide 28: No. 1 Productivity Promotion Committee
No.1 in productivity No. 1 Productivity Promotion Committee Promotes Business Process Re-engineering (BPR) and technological development efforts Business flow review, group-wide lateral spread and implementation Development and spread of new ICT, construction technology and procurement system No. 1
Slide 29: Initiatives in Strategic Investments
Foundation for growth Initiatives in Strategic Investments Redevelopment Kyobashi 1-chome East Side ■ To form an open art and cultural base in the town ■ strengthening of disaster Block redevelopment, response capability, reduction of environment burden Block A: FY2016 - FY2019 Block B (the headquar
Slide 30: Headquarters Building Reconstruction Project
Foundation for growth Headquarters Building Reconstruction Project Disseminating company stance and securing stable income Improving and concentrating technical ability Social contribution *Low-rise portion Securing stable income after completion Application: Office, retail outlets, cultural facilit
Slide 31: 2-2. Performance by Business (Forecast)
2-2. Performance by Business (Forecast) 31
Slide 32: Net Sales by Business
Net Sales by Business Total ¥420.3 billion ¥496.0 billion ¥480.0 billion 36.0 40.0 Group 18.9 companies 25.0 33.1 7.5 Overseas 5.0 21.0 93.5 Investment & development 5.7 97.5 Civil 91.1 engineering (Japan) 358.6 330.0 Architectural construction 286.7 (Japan) FY2014 FY2015 (forecast) FY2017 [Medium-t
Slide 33: Operating Income (Domestic Construction Business)
Operating Income (Domestic Construction Business) Initial forecast Revised forecast Architectural construction Civil engineering (Japan) (Japan) 15.6 ［4.3％］ Medium-term goal ¥3.6 billion Medium-term goal ¥11.5 billion 3.4 3.0 ［4.7％］ (Billions of yen) 8.9 ［3.3％］ 2.4 ［3.1％］ 7.3 ［2.8％］ ［2.3％］ FY2014 FY
Slide 34: Operating Income (Strategic Businesses)
Operating Income Initial forecast (Strategic Businesses) Revised forecast Investment & Overseas Group companies development Medium-term goal ¥0.7 billion Medium-term goal ¥0.7 billion 1.0 ［2.8％］ (0.3) (Billions of yen) Medium-term goal 0.8 ¥0.5 billion ［2.6％］ 0.7 0.6 ［1.9％］ (0.8) ［11.8％］ 0.4 ［5.7％］
Slide 35: 2-3. Second Half Policy
2-3. Second Half Policy 35
Slide 36: Recognition of Issues and Measures
Recognition of Issues and Measures Accelerate productivity improvement and strengthen personnel base Productivity improvement Issues Improving profit level Shifting resources to Uncertainties regarding strategic businesses construction investment outlook Further strengthening Strengthening personnel
Slide 37: Towards Further Growth
Towards Further Growth Promote initiatives to crystallize the growth strategy FY2015 FY2016 FY2017 FY2018 - No.1 in productivity Foundation for growth Where are the Bolstering and building strengths? “strengths” What needs to be No.1 in toughness strengthened? • Further strengthen strong fields • Bu
Slide 38: A corporate group that makes Your success possible
A corporate group that makes Your success possible 38