Slide 1: Results Briefing for the Second Quarter Ended September 30, 2014
Results Briefing for the Second Quarter Ended September 30, 2014 November 14, 2014 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: FY2014 2Q
Highlights: FY2014 2Q Consolidated Net Sales: ¥187.8 billion, down 9.8% year-on-year ： Net sales fell 9.8% year-on-year to ¥187.8 billion, as completed construction contracts at the Company and overseas subsidiaries declined Operating Income: ¥6.8 billion, up 15.5% year-on-year ： Operating incom
Slide 7: Summary: FY2014 2Q
Summary:FY2014 2Q (Billions of yen) Apr-Sep FY2014 Apr-Sep Forecasts Change Difference FY2013 (announced Actuals (year on on Aug 7, (vs. forecast) year) 2014) Consolidated net sales 208.3 199.0 187.8 -9.8% -11.1 Operating income 5.8 4.1 6.8 15.5％ 2.7 Ordinary income 6.6 4.9 7.6 14.9% 2.7 Net income
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Rebuilding of School of Pharmacy Building and Kitasato The Kitasato Institute Construction Main Building, Shirokane Campus, the Kitasato Institute Aichi Prefectural Government Aichi High School of Technology and Engineering Kojiya Sta
Slide 9: Main Works Completed
Main Works Completed Ordering Parties Name of Works Architectural Japan Post Co., Ltd. Omiya Sakuragi-cho 1-chome project Construction Otsuma Gakuin Reconstruction of Chiyoda school building FCH Partners Fukuoka City Hospital (Children’s Hospital) Akihabara Radiokaikan New construction of Akihabara
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 Ratio of Apr-Sep FY2014 Toda Corporation Subsidiaries total Consolidated consolidated results to non- Billions of yen % % % consolidated Results Net sales 172.5 22.7 187.8 1.09 Gross profit 15.6 9.1 2.1 9.5 17.6 9.4 1.13 Selling, general and administrative
Slide 13: (Consolidated) Statements of Income
(Consolidated) Statements of Income Apr-Sep FY2013 Apr-Sep FY2014 FY2014 Changes (actual) (actual) (Forecast) Billions of yen ％ ％ ％ ％ Net sales 208.3 187.8 -9.8 413.0 Gross profit 15.6 7.5 17.6 9.4 12.7 32.3 7.8 Selling, general and administrative expenses 9.7 10.8 23.6 Operating income 5.8 2.8 6.8
Slide 14: (Consolidated) Net Sales and Operating Income by Segment
(Consolidated) Net Sales and Operating Income by Segment Net Sales Operating Income Architectural Construction Architectural Construction (Billions of yen) Civil Engineering (Billions of yen) Civil Engineering Real Estate and Other Real Estate and Other 500 208.3 187.8 413.0 10.0 5.8 6.8 8.7 9.0 12.
Slide 15: (Consolidated) Breakdown of Net Income Increase
(Consolidated) Breakdown of Net Income Increase Gain on sales of investment (Billions of yen) securities -3.8 14 Extraordinary income (loss) - 3.8 12 Income taxes -0.2 Gross profit SG&A 10 -1.1 +2.0 Other -0.4 8 Apr-Sep FY2013 15.6 Apr-Sep FY2014 17.6 6 11.1 4 7.9 2 0 Apr-Sep Apr-Sep FY2013 FY2014 1
Slide 16: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A ratio 5.7% 30 5.8% 6.0% (consolidated) 4.7% 23.6 20 4.0% 20.5 10 10.8 2.0% 9.7 9.3 8.5 0 0.0% Apr-Sep FY2013 Apr-Sep FY2014 FY2014 (forecast) 16
Slide 17: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets Assets (Billions of Liabilities and Net Assets (Billions of yen) yen) 473.5 -22.1 473.5 -22.1 451.3 451.3 Current Current Current Current assets -36.3 assets liabilities -42.2 liabilities 244.0 207.6 258.7 216.5 Noncurrent Noncurrent ＋7.8 liabilities liabilities 80.6 No
Slide 18: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei stock average Stock price (yen) (Billions of yen) 2,500 250 16,173 14,827 16,000 2,000 200 12,397 160.1 12,000 10,083 147.5 1,500 143.3 150 Valuation 110.7 difference 8,000 60.4 70.4 1,000 84.5 100 26.3 4,000 500 5
Slide 19: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term (Billions of yen) 73.4 2.7 68.3 70.0 65.5 20.6 15.7 13.2 52.7 52.3 52.5 Mar 2013 Mar 2014 Sep 2014 FY2014 (forecast) Ratio of interest- bearing liabilities 14.7％ 14.7％ 13.8％ 15.1％ ー 19
Slide 20: (Consolidated) Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts Architectural Construction (Billions of yen) Civil Engineering 23.1 2.2 15.5 -4.8 Civil Engineering 2.1 10.7 20.9 2.5 Architectural Construction 13.4 8.1 Mar 2013 Mar 2014 26/9 Sep 2014 20
Slide 21: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow （Billions of yen) 62.0 -11.8 50.1 Income before income taxes +8.5 Cash and cash equivalents Notes and accounts receivable-trade +22.6 at beginning Advances received on uncompleted ＋2.3 Cash and cash of period construction contracts equivalents at Notes and accou
Slide 22: 1-3. Performance Forecasts
1-3. Performance Forecasts 22
Slide 23: Forecasts for FY2014 (Year Ending March 31, 2015)
Forecasts for FY2014 (Year Ending March 31, 2015) FY2014 FY2013 Change Forecasts (Billions of yen) (year on year) Consolidated net 448.9 413.0 -8.0% -36.0 sales Operating income 4.7 8.7 81.9％ 3.9 Ordinary income 6.5 10.3 56.4％ 3.7 Net income 10.2 10.5 2.7％ 0.3 Orders received 454.4 380.0 -16.4% -74.
Slide 24: (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 454.4 Civil Enginee 401.2 ring 97.1 380.0 373.0 8.5 86.4 Total Civil 90.0 Civil 88.0 Eng
Slide 25: Non-consolidated Forecasts for FY2014
Non-consolidated Forecasts for FY2014 Amount Profitability (billions of yen) （％） Net sales 378.0 Gross profit 28.3 7.5 Profits in the construction business 26.5 7.1 [Architectural construction] [19.0] [6.7] [Civil engineering] [7.5] [8.5] Profits in the real estate business 1.8 36.0 Selling, general
Slide 26: 2. Progress in Implementation of Management Plan
2. Progress in Implementation of Management Plan President Masanori Imai 26
Slide 27: Performance Trend
Performance Trend Improve productivity/profitability and aim for continued growth Consolidated net sales Operating income ratio To get on growth trajectory Medium-term 413.0 goal 2.1 3.0 Actual/forecast (billions of yen) Medium-term goal ︵％︶ of 1.1 2.0 about 400.0 Actual/forecast FY2005 FY2006 FY200
Slide 28: Management Strategy Roadmap
Management Strategy Roadmap FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Identifying issues Becoming Review process Steady Onto growth Acceleration profitable without failure profits trajectory Thorough Strengthening of order settlement and implementation of monitoring improvement measures Operating in
Slide 29: Order Composition Ratio (Non-consolidated)
Sales 1 strategy Order Composition Ratio (Non-consolidated) In addition to priority areas, lodging facilities, land reclamation, etc. increased Re-examine investment trends in various regions as well as Toda Corporation’s strengths Architectural Construction (by construction category) Civil Engineer
Slide 30: Completed Construction Composition Ratio (Non-consolidated, Forecast)
Sales 1 strategy Completed Construction Composition Ratio (Non-consolidated, Forecast) Eliminated most large, unprofitable construction work (Construction work orders prior to FY2012) Construction completed Civil engineering work completed (by year) (by year) 100% 100% FY2015 FY2014 80% 80% 60% 60%
Slide 31: Metropolitan Area Civil Engineering Branch
Sales 1 strategy Establish Metropolitan Area Civil Engineering Branch (Planned) Secure new branch structure for pursuing marketability and rationality *Detailed examination underway for an April 2015 establishment Tokyo Branch Yokohama Branch Civil Engineering Division Civil Engineering Division Jur
Slide 32: BPR Rebuild ICT
2 BPR Progress of BPR (Business Process Re-engineering) Established BPR Committee and started activities BPR Rebuild ICT Group 1 led by the head office Drafted ICT medium-term plan implements business process (investment, grand design) visualization activities in proposal. Started overall system adv
Slide 33: Cycle of Sustainable Growth
2 BPR Goal of Business Process Re-engineering Link success of business process re-engineering to next level of growth Stabilization/expansion of Completion of BPR profit Cycle of Strengthening of Elimination of competitiveness Sustainable overburden and Growth waste Allocating management Creation of
Slide 34: Strategic Area: Overseas and Real Estate Businesses
Strategic 3 area Overseas and Real Estate Businesses Performance Forecast Strengthen medium-term strategy of Overseas Business Division Net sales of overseas construction Income from real estate, etc. (consolidated) (consolidated) Line graph signifies net orders received 15.3 21.0 (billions of yen)
Slide 35: Overseas Business: Regional Strategy
Strategic 3 area Overseas Business: Regional Strategy Overseas construction orders received [Brazil] (by region) Received strong orders from [15.3 billion yen] [21.0 billion yen] production facilities of Japanese and non-Japanese businesses [Asia] 5.0 Direct control work To establish sales office in
Slide 36: Basic Recognition of the Second Half (Construction Business)
Basic Recognition of the Second Half (Construction Business) Architectural While receiving steady orders (achievement rate of Construction 55%), variations seen depending on the region. Civil Won orders for large-scale works such as Outer Ring Engineering Road. Focus on further improvement in profit
Slide 37: Toda Corporation means value
－ Toda Corporation means value－ 37