Slide 1: Results Briefing for the Year Ended March 31, 2016
Results Briefing for the Year Ended March 31, 2016 May 16, 2016 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 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 Year Ended March 31, 2016
1-1. Summary of Financial Results for the Year Ended March 31, 2016 5
Slide 6: Highlights: FY2015
Highlights: FY2015 Consolidated Net Sales: ¥492.6 billion, up 17.2% year-on-year ： Net sales rose 17.2% year-on-year to ¥492.6 billion, as completed construction contracts increased. Operating Income: ¥21.6 billion, up 66.7% year-on-year ： Operating income increased 66.7% year on year, to ¥21.6
Slide 7: Summary: FY2015
Summary: FY2015 (Billions of yen) FY2015 Forecasts FY2014 (announce Change Difference d on Feb. Actuals (year on (vs. forecast) 2016) year) Consolidated net sales 420.3 496.0 492.6 17.2% -3.3 Operating income 12.9 19.1 21.6 66.7％ 2.5 Ordinary income 14.8 21.0 23.7 60.1% 2.7 Net income 14.0 18.8 20.0
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Nagasaka Sangyo Nagasaka Sangyo Kyobashi Building Construction (Kyobashi 1 chome) Nippon Steel Kowa Real Nittetsu Nihonbashi Building Estate Co., Ltd. Kuwana City Medical Kuwana City Medical Center Center Toyo University Akabanedai Ca
Slide 9: Main Works Completed (Architectural Construction)
Main Works Completed (Architectural Construction) *Project names are abbreviation Nishitomihisa district category one Kudanzaka Hospital complex urban redevelopment, Nishitomihisa building work, Federation of National District Urban Development Public Service Personnel Mutual Aid Association Associa
Slide 10: Main Works Completed (Civil Engineering)
Main Works Completed (Civil Engineering) *Project names are abbreviation Yamoto Ishinomaki Road substructure Kinki Expressway Kisei Line work, Tohoku Regional Development Wabukagawa Tunnel, Ministry of Land, Bureau, Ministry of Land, Infrastructure, Infrastructure, Transport and Tourism, Kinki Trans
Slide 11: 1-2. Details of Financial Results
1-2. Details of Financial Results 11
Slide 12: Construction: Toda Group companies
(Consolidated) Toda Group 15 Business Subsidiaries in Japan Overseas Subsidiaries companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Chiyoda Kenkou Co., Ltd. Toda Construction (Shanghai) Co., Ltd. Construction Architectural 8 Construction Thai Toda Corporation Ltd. companies Toda Vi
Slide 13: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance FY2015 Toda Corporation Subsidiaries Total FY2015 Consolidated Ratio of consolidated to non- Billions of yen ％ ％ % consolidated Net sales 463.4 46.3 492.6 1.06 Gross profit 44.0 9.5 3.9 8.4 47.8 9.7 1.08 Selling, general and administrative expenses 23.5 2.
Slide 14: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A ratio 5.8% 30.0 （consolidated） 6.0% 5.5% 5.3% 26.1 26.0 23.1 23.5 23.5 20.0 4.0% 20.3 10.0 2.0% 0.0 0.0% FY2014 FY2015 FY2016 (forecast) 14
Slide 15: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets (Billions of yen) (Billions of yen) Assets Liabilities and Net Assets ＋53.3 +53.3 548.7 548.7 495.4 495.4 Construction related Construction related liabilities +54.1 assets +90.2 Provisions for loss on Securities -10.1 construction -5.1 Current Real estate for sale +5.3
Slide 16: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei stock average (Billions of yen) Stock prices（yen） 250 19,206 20,000 16,758 200 14,827 185.4 15,000 12,397 154.8 147.5 150 [値].3 Valuation 110.3 10,000 60.4 70.4 difference 100 79.2 5,000 50 Book value 82.8 77.1 75.
Slide 17: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term (Billions of yen) 79.7 ＋13.3 72.0 65.5 66.3 13.2 45.1 33.7 52.3 32.5 34.5 Mar 2014 Mar 2015 Mar 2016 Mar 2017(forecast) D/E Ratio 0.48x 0.37x 0.45x ー 17
Slide 18: (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 7.6 -5.2 13.4 [系列名] 2.6 2.4 [系列名] 5.0 1.4 1.0 Mar 2014 Mar 2015 Mar 2016 18
Slide 19: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) 59.2 -4.6 54.6 Income before income taxes +22.9 Notes and accounts receivable – trade -90.4 Cash and cash Costs on uncompleted construction contracts -5.3 equivalents Real estate for sale +5.6 at beginning of Notes and accounts payable – trade
Slide 20: 1-3. Performance Forecasts
1-3. Performance Forecasts 20
Slide 21: Forecasts for FY2016 (Year Ending March 31, 2017)
Forecasts for FY2016 (Year Ending March 31, 2017) FY2016 FY2015 Change （Billions of yen) Forecasts (year-on-year) Consolidated net 492.6 445.0 -9.7% -47.6 sales Operating income 21.6 18.5 -14.5％ -3.1 Ordinary income 23.7 20.3 -14.4％ -3.4 Profit attributable to owners of parent 20.0 17.3 -13.7％ -2.7
Slide 22: (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 455.5 440.0 （％） 412.8 410.0 93.3 90.0 Civil 103.6 Civil 100.0 Engineering Engineering Ar
Slide 23: Non-consolidated Forecasts for FY2016
Non-consolidated Forecasts for FY2016 Amount（billions of yen） Profitability（％） Net sales 414.5 Gross profit 40.5 9.8 Profits in the construction business 39.0 9.5 [Architectural construction] [30.0] [9.7] [Civil engineering] [9.0] [9.0] Profits in the real estate business 1.5 33.3 Selling, general a
Slide 24: 2. Progress of Management Plan
2. Progress of Management Plan President Masanori Imai 24
Slide 25: Focus of Medium-term Management Plan 2017
Focus of Medium-term Management Plan 2017 (FY2015 – FY2017) － Break away from conventional concepts and create new value and systems － No.1 in Productivity Foundation for Growth Establish the highest Expand business level of productivity in domain and pursue the general synergies with construction s
Slide 26: 2-1. FY2015 Review
2-1. FY2015 Review 26
Slide 27: Achieving Medium-term Management Plan Ahead of Schedule
Achieving Medium-term Management Plan Ahead of Schedule Achieved both profitability and productivity targets in FY2015 FY2014 FY2015 FY2017 targets (Billions of yen) actuals actuals (initial targets) Consolidated net sales 420.3 492.6 480.0 Operating income 12.9 21.6 17.0 (operating income ratio) （3
Slide 28: Changes in Operating Income by Segment
Changes in Operating Income by Segment Profit increase at Architectural Construction (Japan) led the rest (Strategic businesses) Architectural Construction (Japan) ・ Net sales increased due to completion of large-scale projects 21.6 ・ Gross margin rate improved (Billions of yen) due to cost reductio
Slide 29: Capital Efficiency, Shareholder Returns
Capital Efficiency, Shareholder Returns ROE (return on equity) Dividend per share, payout ratio Dividend per share Payout ratio (20.0) * Medium-term goal: 11.3 20% to 30% 15.2 15.4 15.3 （％） (yen, %) 8.8 7.8 10.0 8% or more in the long term 7.0 5.0 2013 2014 2015 2013 2014 2015 (fiscal year) Total di
Slide 30: Productivity-related Efforts
Productivity-related Efforts 1.25 Labor productivity of 13 million yen is (Sales per employee, 100 million yen) achieved on this line (FY2017 target *initial target) 1.00 FY2015 actuals 0.75 FY2014 actuals Net sales per employee : 102 million yen Net sales per employee : 85 million yen Operating inc
Slide 31: Achievements and Issues
Achievements and Issues Performance Measures ・ Improved income ・ Progress in efforts to ・ Achievement of medium- term targets ahead of improve additional values schedule ・ Make strategic businesses ・ Improve net sales per employee (consumption profitable capability, work speed) Further strengthen ef
Slide 32: 2-2. Medium-term Direction
2-2. Medium-term Direction 32
Slide 33: Management Concept: A company that grows continuously
Management Concept A company that grows continuously Continuous improvement of productivity (reform production system and work process, rebuild ICT, mechanized construction, etc.) Redistribution and optimization of human resources Acquire values through Make strategic differentiation businesses prof
Slide 34: Process for Achieving Continuous Growth
Process for Achieving Continuous Growth Steady construction Decline in Intensified investment investment competition Labor productivity = Amount of value added (Change in construction Make strategic investment) businesses profitable Investment development, add manpower overseas and at group companie
Slide 35: Benchmarks to Be Achieved (FY2020 onwards)
Benchmarks to Be Achieved (FY2020 onwards) Consolidated net sales About 500 billion yen Operating income ratio 4.5 ％ or more Labor productivity 14 million yen or more *Labor productivity is on a non-consolidated basis 35
Slide 36: Medium-term Targets (Revised)
Medium-term Targets (Revised) (Billions of yen) FY2015 FY2016 FY2017 FY2017 Actuals Forecasts Revised targets Initial targets Consolidated net sales 492.6 445.0 480.0 480.0 Architectural Construction (Japan) 361.4 309.0 330.0 330.0 Civil engineering (Japan) 92.0 98.0 100.0 97.5 Investment & Developm
Slide 37: Profit Targets by Business
Profit Targets by Business (Billions of yen) FY2015 FY2016 FY2017 FY2017 Actuals Forecasts Revised targets Initial targets Operating income 21.6 18.5 20.0 17.0 14.0 Architectural Construction (Japan) 17.9 14.0 11.5 4.5 Civil engineering (Japan) 3.7 4.0 3.6 0.2 Investment & Development -0.0 0.1 0.5 O
Slide 38: 2-3. Key Initiatives for FY2016
2-3. Key Initiatives for FY2016 38
Slide 39: Production System Reform, Business Process Re-engineering
Production System Reform, Business Process Re-engineering Build a highly productive business promotion structure Promote front loading Re-build business processes (Business process re- (Utilization of BIM, CIM) engineering activities) Facility integration Effect of reduced model business hours (FY20
Slide 40: Technological Development
Technological Development Unmanned and automated construction system *Brushing up existing technologies – an image Toda-type automated Chimurisu chimney Board separating machine construction system dismantling for composite boards –Roof Robot- A list of robots Toda has developed Toda will contribute
Slide 41: Institute of Construction Technology Facility Development
Institute of Construction Technology Facility Development Tsukuba Institute of Construction Technology facility layout drawing Environmental Technology shows facilities to be newly Verification Block constructed or renovated Acoustic (to be newly constructed) Tent Clean block warehouse TNH room Actu
Slide 42: Collaboration with Other Industries
Collaboration with Other Industries Contribute to social development together with partners Technology development of building Urban development initiatives facilities, maintenance management Sixth-order industrialization of agriculture; Building medical system Yure Kanchi (tremor promoted in Joso C
Slide 43: Promotion of Investment & Development Business
Promotion of Investment & Development Business Advancing initiatives for future revenue Redevelopment of Kyobashi 1- Floating offshore wind power chome East Side generation business Photo by Hoichi Nishiyama (Power plant commencement ceremony in Goto, (Rendering) Nagasaki Prefecture, on April 15, 20
Slide 44: Conclusion: Positioning of FY2016
Conclusion: Positioning of FY2016 Establish a strong earnings structure to move into the next growth stage FY2015 FY2016 FY2017 FY2018 onwards No.1 in Productivity Consolidated net sales ¥480.0 bln Operating income ¥20.0 bln Labor productivity ¥13.20 mil Foundation for Growth (resetting earnings tar
Slide 45: A corporate group that makes Your success possible
A corporate group that makes Your success possible 45