Toda Corporation · TSE:1860
Toda — Q2 FY2013 Earnings Presentation
50 slides from Toda's earnings presentation, Nov 14, 2013
Slide 1: Results Briefing for the Second Quarter Ended September 30, 2013
Results Briefing for the Second Quarter Ended September 30, 2013 November 14, 2013 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. Issues and Initiatives 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: FY2013 2Q
Highlights: FY2013 2Q Consolidated Net Sales: ¥208.3 billion, down 2.1% year-on-year ： Consolidated net sales remained at the same level as the second quarter of the previous year, but were down 2.1% year on year, to ¥208.3 billion Operating Income: ¥5.8 billion, up ¥20.3 billion year-on-year ：
Slide 7: Summary: FY2013 2Q
Summary: FY2013 2Q (Millions of yen) Apr-Sep FY2013 Apr-Sep Forecasts Change FY2012 (announced Actuals (year on Difference on May 14, (vs. forecast) 2013) year) Consolidated net sales 212,830 203,000 208,387 -2.1% 5,387 Operating income (loss) (14,415) (400) 5,892 － 6,292 Ordinary income (loss) (13,
Slide 8: Construction Business Performance (Non-consolidated)
Construction Business Performance (Non-consolidated) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts Architectural 7.3 Construction 317.6 (＋111.8%) 7.3 Total 7.1 Civil Engineering Civil 29.5 (-14.5%) Engineering 4
Slide 9: Breakdown of the Orders Received (Non-consolidated)
Breakdown of the Orders Received (Non-consolidated) Breakdown by Client By Quarter (Reference) Progress 317.6 317.6 415.0 3Q 339.1 + 76.5% 4Q (Billions of yen) (Billions of yen) (Billions of yen) 243.0 2Q 276.8 Private Sector (+239.7%) 149.9 149.9 (+166.4%) 1Q 71.5 44.2% + 317.6 103.8 2Q 1Q 149.9 Pu
Slide 10: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Otemachi 1-chome No.3 District category 1 urban Mitsubishi Estate Co., Ltd. and others Construction redevelopment Hiroshima Station South Exit C-block Hiroshima Station south exit C-block category 1 urban Urban Redevelopment Union red
Slide 11: Main Works Completed
Main Works Completed Ordering Parties Name of Works Kinki Regional Development Bureau, Architectural Ministry of Land, Infrastructure and Construction of Kyoto National Museum Collections Hall Construction Transport Tokyu Land Corporation Construction of TOKYU Harvest Club Atami MEGMILK SNOW BRAND C
Slide 12: 1-2. Details of Financial Results
1-2. Details of Financial Results 12
Slide 13: Construction Toda Group
(Consolidated) Toda Group 15 Business Subsidiaries in Japan Overseas Subsidiaries Companies Construtora Toda do Brazil S/A Toda Reform Co., Ltd. Toda Construction (Shanghai) Co., Ltd. APEC Engineering Co., Ltd. Construction Architectural 9 Construction Thai Toda Corporation Ltd. Companies Chiyoda Ke
Slide 14: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance Toda Ratio of Apr-Sep 13 Subsidiaries total Consolidated consolidated Corporation results to Billions of yen % % % non-consolidated results Net sales 191.8 24.9 208.3 1.09 Gross profit 15.0 7.9 0.7 3.1 15.6 7.5 1.04 Selling, general and 8.5 1.3 9.7 adminis
Slide 15: (Consolidated) Statements of Income
(Consolidated) Statements of Income Apr-Sep 12 Apr-Sep 13 Changes FY2013 (Forecast) (Actual) (Actual) Billions of yen % % % % Net sales 212.8 208.3 -2.1 450.0 Gross profit (loss) (3.1) -1.5 15.6 7.5 ― 26.1 5.8 Selling, general and 11.2 9.7 21.4 administrative expenses Operating income (loss) (14.4)
Slide 16: (Consolidated) Net Sales and Operating Income (Loss) by Segment
(Consolidated) Net Sales and Operating Income (Loss) by Segment Net Sales Operating Income (Loss) Architectural Construction Civil Real Estate Architectural Construction Civil Real Estate (Billions of Engineering and Other (Billions of Engineering and Other yen) yen) 9.0 500 450.0 10 Real Estate and
Slide 17: Change in Gross Profit (Loss) on Completed Construction Contracts
Change in Gross Profit (Loss) on Completed Construction Contracts Gross Profit Margin on (Billions of yen) Consolidated Non-consolidated Completed Construction Contracts Ratio 30 10.0% 5.2% (Consolidated) 6.8% 7.5% 22.8 20 21.0 5.0% 13.6 13.6 10 2.5% 0.0% 0 (4.7) (5.7) -2.5% -2.3% (10) -5.0% Apr-Sep
Slide 18: Change in SG&A
Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A Ratio 30 6.0% 5.3% 4.7% 4.8% (Consolidated) 20 21.4 4.0% 18.5 10 11.2 2.0% 10.2 9.7 8.5 0 0.0% Apr-Sep 12 Apr-Sep 13 FY2013 (forecast) 18
Slide 19: Change in Operating Income (Loss)
Change in Operating Income (Loss) Consolidated Non-consolidated Operating Income Ratio (Billions of yen) 10 4.0% 2.8% 1.0% (Consolidated) 5 2.0% 5.8 6.4 4.7 4.5 0 0.0% (5) -2.0% (14.4) (14.7) (10) -4.0% (15) -6.0% -6.8% (20) -8.0% Apr-Sep 12 Apr-Sep 13 FY2013 (forecast) 19
Slide 20: Change in Ordinary Income (Loss)
Change in Ordinary Income (Loss) Consolidated Non-consolidated Ordinary Income Ratio (Billions of yen) 10 4.0% 3.2% 1.3% (Consolidated) 2.0% 5 6.6 7.2 6.0 5.8 0.0% 0 -2.0% (5) (13.6) (14.0) -4.0% (10) -6.0% -6.4% (15) -8.0% Apr-Sep 12 Apr-Sep 13 FY2013 (forecast) 20
Slide 21: (Consolidated) Change in Extraordinary Income (Loss)
(Consolidated) Change in Extraordinary Income (Loss) Extraordinary income (loss) (3.1) 4.6 4.5 (Billions of yen) 6 Allowance for loss on compensation for damage Extraordinary 0.5 income 4 Gain on sales Extraordinary of investment income 2 securities 4.5 Gain on sales of 4.1 investment securities 0.2
Slide 22: Change in Net Income (Loss)
Change in Net Income (Loss) (Billions of yen) Consolidated Non-consolidated Net Income Ratio 20 10.0% 5.3% 2.2% (Consolidated) 5.0% 11.1 10.9 9.5 10.0 0 0.0% -5.0% (33.8) (34.5) (20) -10.0% -15.0% -15.9% (40) -20.0% Apr-Sep 12 Apr-Sep 13 FY2013 (forecast) Net income (loss) par share (108.64 yen) 35.
Slide 23: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets (Billions of (Billions of Assets yen) Liabilities and Net Assets yen) -46.4 500.1 -46.4 500.1 453.7 453.7 Current Current assets Current Current -51.8 assets liabilities -65.5 271.8 liabilities 219.9 293.9 228.4 Noncurrent Noncurrent liabilities liabilities +3.7 81.8 No
Slide 24: (Consolidated) Detailed Consolidated Balance Sheets (Assets)
(Consolidated) Detailed Consolidated Balance Sheets Remarks Mar 13 Sep 13 Figures in ( ) are changes from the previous year Billions of yen (Assets) Cash 34.6 (-4.1) Notes receivable, accounts receivable from Current assets 271.8 219.9 completed construction contracts and other 118.4 (-46.2) Real es
Slide 25: (Consolidated) Detailed Consolidated Balance Sheets (Liabilities)
(Consolidated) Detailed Consolidated Balance Sheets Remarks Mar 13 Sep 13 Figures in ( ) are changes from the previous year Billions of yen (Liabilities) Notes payable and other accounts payable 109.7 (-45.4) 38.9 (-13.8) Current liabilities 293.9 228.4 Short-term loans payable / CP Advances receive
Slide 26: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei stock average (Billions of yen) Stock price (Yen) 200 16,000 14,456 12,397 150 149.1 12,000 143.3 9,755 10,083 Valuation 110.2 110.7 60.4 difference 100 71.5 8,000 27.7 26.3 50 4,000 82.5 84.3 82.8 Book value 77.5
Slide 27: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities (Billions of yen) Short-term Long-term 80 73.4 -13.7 70.0 20.6 59.6 60 57.5 20.7 20.4 40 52.7 20 37.0 38.9 0 Mar 12 Mar 13 Sep 13 FY2013 (forecast) Ratio of interest- bearing liabilities 11.8% 14.7% 13.1% － 27
Slide 28: Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts (Billions of yen) Architectural construction Civil engineering 25 23.1 Civil engineering 2.2 20 -7.5 15.6 15 14.0 2.0 2.8 Architectural construction 10 20.9 13.5 5 11.1 0 Mar 12 Mar 13 Sep 13 28
Slide 29: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) 48.0 -11.1 36.8 Income before income taxes +11.2 Notes and accounts receivable-trade Cash and cash +46.4 equivalents at Notes and accounts payable-trade (45.7) beginning Costs on uncompleted construction contracts Cash and cash of period (7.2)
Slide 30: 1-3. Performance Forecasts
1-3. Performance Forecasts 30
Slide 31: Forecasts for FY2013 (Year Ending March 31, 2014)
Forecasts for FY2013 (Year Ending March 31, 2014) FY2013 FY2012 Change Forecasts (Billions of yen) (year on year) Consolidated net 497.0 450.0 -9.5% -47.0 sales Operating income (46.9) 4.7 +51.6 (loss) Ordinary income (45.5) 6.0 +51.5 (loss) Net income (loss) (65.2) 10.0 +75.2 Orders received 339.0
Slide 32: (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 (%) 415.0 80.0 Civil 401.0 Engineering 317.6 Civil Civil Civil Engineering Engineering 8
Slide 33: Non-Consolidated Forecasts for FY2013
Non-Consolidated Forecasts for FY2013 Amount Profitability (Billions of yen) (%) Net sales 408.0 Gross profit 23.0 5.6 Profits in the construction business 21.0 5.2 [Architectural construction] [16.0] [5.1] [Civil engineering] [5.0] [5.9] Profits in the real estate business 2.0 28.6 Selling, general
Slide 34: 2. Issues and Initiatives
2. Issues and Initiatives President Masanori Imai 34
Slide 35: Strategies for FY2013
Strategies for FY2013 1. Take all possible measures to be in the black Ensure execution of improvement measures Ensure through monitoring and prompt response 2. Revive earning power Convert sense of values in the Company Create mechanisms and structures for growth 35
Slide 36: Status of Improvement Measures
Status of Improvement Measures Make selection of Concentrate on priority areas. orders more Reinforce selection and planning from upstream processes for areas of opportunity stringent Review the approval flow of sales to orders received Reinforce order and budgeting. Enhance profit margins upon rece
Slide 37: Order Composition Ratio in the Construction Business
Order Composition Ratio in the Construction Business Ratio changing due to orders of large-scale redevelopment and reconstruction projects Architectural Construction Civil Engineering (by construction category) (by construction category) Other Other Housing Soil and river conservation ％( ) ％( ) 21.3
Slide 38: Reinforce order management system
Reinforce order management system Promote judgment and verification cycles through processes ① ② ③ Sales Orders Budgeting Estimation costs Working budget Feedback (1) Order Approval Meeting (2) Committee for Review on (3) Working Budget Council Judgments taken at Order Receipt (Established in April
Slide 39: Forecasts for this Fiscal Year and Operating Income
Forecasts for this Fiscal Year and Operating Income Continue with initiatives and ensure black figures ¥4.7 Impact of improvement measures billion ¥3.3 (1.0%) Change employee billion mindsets (earnings and (0.7%) risk management) Initial forecast +¥1.4 billion Revised forecast Note: Figures in paren
Slide 40: Strategies for FY2013
Strategies for FY2013 1. Take all possible measures to be in the black Ensure execution of improvement measures Ensure through monitoring and prompt response 2. Revive earning power Convert sense of values in the Company Create mechanisms and structures for growth 40
Slide 41: Composition Ratio of Sales in the Construction Business (FY2014 Forecasts)
Composition Ratio of Sales in the Construction Business (FY2014 Forecasts) Composition Ratio of Sales for FY2014 (by year) 100% Sales primarily from orders Before FY2012 received in FY2013 and 80% FY2014 60% FY2013 40% Will book most orders received for the architectural construction business in FY2
Slide 42: Initiatives for the Second Half
Initiatives for the Second Half Reinforce earning power for FY2014 and beyond (Improve earnings in contracted construction works and reinforce selection and planning in areas of opportunity) Key priorities Swiftly attain a desired position and growth base Create values Reinforce strategic areas Boos
Slide 43: Build a Base for Creating Values
Build a Base for Creating Values Revamp Structures for Autonomously Creating Values Customer Strategies Boost productivity values Business flows (Sales operation, design & planning, construction, and staffing) Expand into new markets Promote collaboration Medical care and health, new Base for Compan
Slide 44: Direction of Efforts to Reinforce Strategic Areas
Direction of Efforts to Reinforce Strategic Areas International Investment & Development Act swiftly to introduce a business Narrow down pilot operations department system Explore integrating construction & Rebuild medium- to long-term strategies, development & real estate rental including for devel
Slide 45: Overseas Business and Real Estate Businesses
Overseas Business and Real Estate Businesses Earnings Forecast Target for FY2015: Net sales for of ¥30.0 billion Target for FY2015: Gross profit of ¥4.0 billion Net sales of overseas construction Income from real estate, etc. (consolidated) (consolidated) Line graph signifies net sales of orders rec
Slide 46: Initiatives of Power Generation by Floating Offshore Wind Turbines
Initiatives of Power Generation by Floating Offshore Wind Turbines Inaugurating a two-megawatt demonstration facility In October, we began operating a power generation by floating offshore wind turbine, incorporating a two- megawatt turbine, near Kabashima, Goto City, Nagasaki Prefecture This was th
Slide 47: Creation of Customer Values through Construction Life Cycles
Creation of Customer Values through Construction Life Cycles Increase its organizational power by intergroup collaboration and information sharing Centralize customer contacts and take prompt response Customer Instructions & center Instructions & reporting reporting Customer values Group Toda branch
Slide 48: Establishment of a New Organization
Establishment of a New Organization Swiftly accommodating market needs September 8 September 20 Tokyo chosen to host the Set up the Tokyo Olympics 2020 Summer Olympics Project Office within the Tokyo Branch Future direction: Linear Chuo Shinkansen and government growth strategies 48
Slide 49: Medium- to Long-Term Objectives and Image
Medium- to Long-Term Objectives and Image ¥450 billion 140th anniversary Consolidated net vision sales (Around ¥400 billion) Subsidiaries and affiliates Investment & development International Domestic civil Sustainable engineering growth by Operating income ratio creating values 2.0 ％ and 3.0 ％ and
Slide 50: TODA CORPORATION (Since 1881)
OSTODA TODA CORPORATION (SINCE 1881) 50