Slide 1: Results Briefing for the Second Quarter Ended September 30, 2011
November 14 14, 2011 Results Briefing for the Second Quarter E d d September Ended S t b 30, 30 2011
Slide 2: Forward-looking statements
This report contains forward-looking statements regarding Toda Corporation and the Group’s Group s corporate plans, plans strategies strategies, and business forecasts. These statements include Toda Corporation’s C ’ fforecasts based on information currently available as of the announcement date, wh
Slide 3: Agenda
1 Summary of Financial Results and 1. Progress of Medium-Term Management Plan - President Shunzo Inoue 2. Details of Financial Results - Executive Manager Toshiro Oka O Results Briefing for the Second Quarter Ended September 30, 2011 3
Slide 4: Summary of Financial Results and Progress of Medium-Term Management Plan
1. Summary of Financial Results and Progress of Medium-Term Medium Term Management Plan President Shunzo Inoue Results Briefing for the Second Quarter Ended September 30, 2011 4
Slide 5: Summary of Financial Results for the Second Quarter
1-1. Summary of Financial Results f th for the Second S d Quarter Q t *Six Months from April 1, 2011 to September 30, 2011 Results Briefing for the Second Quarter Ended September 30, 2011 5
Slide 6: Highlights: FY2011 2Q
Highlights: g g FY2011 2Q Consolidated Net Sales: ¥181.4 billion (down 4.5% year-on-year) ： Net sales of completed construction contracts decreased both for architectural construction and civil engineering. Net sales were below the initial p projection j for reasons including g the fact that the p
Slide 7: Summary: FY2011 2Q
Summary: y FY2011 2Q (Millions of yen) Apr-Sep Apr Sep FY2011 Apr-Sep FY2010 Original Change g Difference Actuals Forecast (year on year) (vs. forecast) Consolidated net sales 189,905 206,400 181,434 -4.5% -24,965 O Operating ti income i 1 620 1,620 500 (76) － -576 576 Ordinary income 2 200 2,200 1,
Slide 8: Construction Business Performance (Non-consolidated)
Construction Business Performance (Non consolidated) (Non-consolidated) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts (+14.0%) 205 6 205.6 Civil 180.4 engineering 7.2 31.5 178.8 (-7.3%) (-23.1%) Architectural 16
Slide 9: Breakdown of Orders Received
Breakdown of Orders Received (Non consolidated) (Non-consolidated) Breakdown by Client By Quarter (Reference) Progress 0.2 02 Overseas 444.5 451.0 0.0 3Q 108.4 2Q + (+4.1%) 4Q 160.5 Domestic 104.1 124.1 private ns of yen) ns of yen) ns of yen) sector 45.6% (+29.3%) 40.6% (Billion (Billion (Billion 1
Slide 10: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Yamato Transport Co., Ltd. Atsugi Logistics Terminal construction Otsuma Gakuin Reconstruction of Chiyoda School Building National Printing Bureau Annex of Takinogawa Plant Fukuoka City Hospital Development of New Hospital, etc. Organ
Slide 11: Main Works Completed
Main Works Completed p Ordering Parties Name of Works Architectural Azabu Jyui Gakuen Architectural Construction for New Building construction No.3, etc. Toyo University Construction of Itabashi-ku, Itabashi ku Shimizu Shimizu-cho cho Campus Tokyo University of Construction of New Lecture Building A
Slide 12: Great East Japan Earthquake-related Works
Great East Japan p Earthquake-related q Works The “Disaster Restoration Office” has been expanded p in response to the full- full-scale restoration demand. (Millions of yen) Apr-Sep Orders Details of Main Works FY2011 Received Architectural ・ Restoration and repair works (structures, ceilings, 7,053
Slide 13: Progress of Medium-Term Management Plan
1-2. Progress of Medium-Term M Management t Pl Plan * Planned period: FY2009 - FY2011 Results Briefing for the Second Quarter Ended September 30, 2011 13
Slide 14: Recognition of Business Conditions (Forecasts)
Recognition of Business Conditions (Forecasts) Change in Orders for Construction Works Received by Top 50 Domestic Economy Construction Companies FY2011 (year-on-year) Downward risk is increasing 60 due to the rapid appreciation of 50 the yen and slowdown of the global economy economy. 40 Domestic
Slide 15: Implementing Measures
((Reference)) Implementing p g Measures Target Index FY2011 Ratio of renovations to completions 25% Ratio of orders in the priority areas 70% O Overseas orders d received i d ¥20.0 billion (consolidated) Real estate investment ¥23.0 billion + α (cumulative total for the period of the plan) Ratio off
Slide 16: Remodeling Construction (Architectural Construction)
Remodeling Construction (Architectural Construction) Prepared p Guidelines for Earthquake q Resistance Measures for Production Facilities Sales of Completions in Architectural Remodeling Construction * The line charts shows the ratio of completions in architectural remodeling construction to the tot
Slide 17: Priority Areas (Types of Works)
Priority y Areas ((Types yp of Works)) The ratios of “Others” increased as a result of orders received for logistics facilities and soil contamination countermeasures. Orders received Orders received for architectural Ratio in the priority for civil Ratio in the priority construction areas: 62.2% en
Slide 18: Environment and Energy Field
Environment and Energy gy Field Initiatives for Office Buildings Initiatives Toward (Design and Construction) Renewable Energy Kyobashi East Building Date Wind Farm (To be completed in April 2013) (To be completed in December 2011) Design and construction project related to Proposal of solutions for
Slide 19: Overseas Business
* For overseas subsidiaries; based on the cumulative operating results Overseas Business for nine months from January to September 2011, reference figures b based d on th the plan l rates t att b beginning i i off period. i d With solid results in Brazil and Southeast Asia,, overseas orders of ¥20 2
Slide 20: Expansion of Overseas Locations
Expansion p of Overseas Locations Reinforcement of Business Foundations in Southeast Asia A subs subsidiary d a y was as es established ab s ed in the e Philippines pp es where an increasing number of Japanese companies are expected to have businesses in th ffuture. the t ● Company name: TODA Phil
Slide 21: Performance Forecasts
1-3. 1 3. Performance Forecasts Results Briefing for the Second Quarter Ended September 30, 2011 21
Slide 22: Forecasts for FY2011
Forecasts for FY2011 (Millions of yen) FY2011 FY2010 Original New Change Forecast F Forecast t (year on year) Consolidated net sales 452,762 463,500 463,500 +2.4% Operating income 6,004 8,900 8,900 +48.2% Ordinary income 7,478 10,000 10,000 +33.7% Net income 3,774 5,000 4,600 +21.9% Orders received
Slide 23: Forecasts for Construction Business
Forecasts for Construction Business (Non-consolidated) Gross Profit Margin on Orders Received Net Sales of Completed Completed Construction f Construction for C t ti C Construction t ti C Contracts t t Contracts (+1.4%) 444.5 451.0 (+0 9%) (+0.9%) Architectural construction 82.2 81.0 Civil 421.3 425
Slide 24: Details of Financial Results
2. Details of Financial Results Executive Manager Toshiro Oka Results Briefing for the Second Quarter Ended September 30, 2011 24
Slide 25: Toda Group
((Consolidated)) Toda Group p Subsidiaries in Japan: Overseas Subsidiaries : 17 Business 10 companies 7 companies Companies Toda Reform Co., Ltd. Construtora Toda do Brazil S/A SIPCO Co., Ltd. Toda Construction (Shanghai) Co., Ltd. nstruction n Architectural Apec Engineering Co., Ltd. Thai Toda Corp
Slide 26: Summary of Group Performance
(Consolidated) Summary of Group Performance Toda Subsidiaries Ratio of Apr-Sep 11 Consolidated consolidated Corporation total results to non- consolidated Billions of yen % % % results N t sales Net l 168 7 168.7 24 5 24.5 181 4 181.4 1 08 1.08 Gross profit 10.0 6.0 1.4 6.0 11.2 6.2 1.12 Selling, ge
Slide 27: Net Sales by Subsidiaries (Japan and Overseas)
(Consolidated) Net Sales by Subsidiaries (Japan and Overseas) * Before intercompany elimination Sales in Japan and Overseas Overseas Sales by Region <Forecast of orders Fi Figures in i [ ] are percentages t off total t t l nett sales. l to be received> (Billions of yen) (Billions of yen) 60 60.0 57.
Slide 28: Gross Profit by Subsidiaries (Japan and Overseas)
(Consolidated) Gross Profit by Subsidiaries (Japan and Overseas) * Before intercompany elimination Gross Profit in Japan and Overseas Overseas Gross Profit byy Region g (Billions of yen) (Billions of yen) 6.0 12.0 1.2 Exchange rate (Average for Apr Apr-Sep Sep 11) 1.0 US dollar: ¥81.78 Others 7.0% 7
Slide 29: Consolidated Statements of Income
2-1. Consolidated Statements of Income Results Briefing for the Second Quarter Ended September 30, 2011 29
Slide 30: Statements of Income
(Consolidated) Statements of Income Apr-Sep 10 Apr-Sep 11 FY2011 Change (Actual) (Actual) (Forecast) Billions of yen % % % % Net sales 189.9 181.4 -4.5 463.5 Gross profit 13.5 7.1 11.2 6.2 -16.9 33.2 7.2 Selling, general and administrative expenses 11 9 11.9 11 3 11.3 24 3 24.3 Operating income (los
Slide 31: Change in Net Sales by Business
(Consolidated) Change in Net Sales by Business Construction Real Estate and Others (Billions of yen) (Billions of yen) 5,000 500.0 160 16.0 450.0 Subsidiaries 13 5 13.5 and affiliates 25.0 120 12.0 Subsidiaries and affiliates 5.5 2,500 250.0 Toda 80 8.0 184.1 175.9 Corporation Subsidiaries 425.0 5.7
Slide 32: Change in Gross Profit by Business
(Consolidated) Change in Gross Profit by Business Construction Real Estate and Others (Billions of yen) 29 5 29.5 (Billions of yen) 300 30.0 Subsidiaries 4.0 40 and affiliates 3.7 1.5 Subsidiaries 3.0 30 and affiliates 20.0 20 0 1.5 200 Toda p Corporation 2.0 20 11 9 11.9 16 1.6 9.7 28.0 1.5 0.4 Sub
Slide 33: Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A 30.0 300 9.0% 24.3 20.0 22 0 22.0 200 6.0% 6.3% 6.2% Including reversal of allowance 5.2% for doubtful accounts: 0.2 10.0 100 11.9 11.3 3.0% 10 7 10.7 10 2 10.2 0.0 0 0.0% Apr-Sep 10 Apr-Sep 11 FY2011 (forecast) Resul
Slide 34: Change in Operating Income (loss)
(Consolidated) Change in Operating Income (loss) Consolidated Non-consolidated Operating income ratio (Billions of yen) 10.0 100 1.9% 2.0% 8.9 8.0 80 1.6% 8.2 6.0 60 1.2% 0.9% 4.0 4 400 0 8% 0.8% 2.0 20 1.6 0.4% 1.7 -0.0% 0.0 (0.07) 0 0.0% (0 13) (0.13) ▲(2.0) 20 -0.4% Apr-Sep 10 Apr-Sep 11 FY2011 (
Slide 35: Change in Non-Operating Income (Loss)
(Consolidated) Change in Non Non-Operating Operating Income (Loss) Account Balance 0.5 0.7 (Billions of yen) 1.5 15 1.1 1.2 1.0 10 Other income 0.6 02 0.2 Non-operating income 0.5 5 Dividend income 08 0.8 09 0.9 0.0 0 Interest expenses (0.3) Non-operating (0.3) (0.1) Other expenses (0.1) expenses (0
Slide 36: Change in Ordinary Income
(Consolidated) Change in Ordinary Income Consolidated Non-consolidated Ordinary income ratio (Billions of yen) 12.0 120 2.4% 2.1% 10.0 9.3 8.0 80 1.6% 1.2% 4.0 40 0.8% 0.4% 2.2 2.2 0.6 0.4 0.0 0 0.0% Apr-Sep 10 Apr-Sep 11 FY2011 (forecast) Results Briefing for the Second Quarter Ended September 30,
Slide 37: Change in Extraordinary Income (Loss)
(Consolidated) Change in Extraordinary Income (Loss) Account Balance ((0.0)) ((0.6)) ((0.8)) (Billions of yen) 0.5 5 Extraordinary 0.1 income Gain on negative 0.0 0.0 0 goodwill 0.1 0.0 Valuation loss (0.1) Other losses (0.1) Valuation V l ti lloss (0.2) (0.5) Valuation loss Extraordinary (0.7) Loss
Slide 38: Change in Net Income (loss)
(Consolidated) Change in Net Income (loss) (Billions of yen) Consolidated Non-consolidated Net income ratio 6.0 60 1.2% 1.0% 4.6 40 4.0 4.2 0.8% 0.6% 2.0 20 0.4% 1.1 1.0 0.0% 00 0.0 0 0.04 ((0.06)) 0 0% 0.0% Apr-Sep 10 Apr-Sep 11 FY2011 (forecast) Net income per share h 3 5 yen 3.5 0 2 yen 0.2 14 9
Slide 39: Comprehensive Income
(Consolidated) Comprehensive Income (Millions of yen) Consolidated Statements of Comprehensive Income Apr-Sep 10 Apr-Sep 11 Income before minority interest 1 079 1,079 63 Other comprehensive income: Valuation difference on available-for-sale securities (8,338) (6,139) Deferred gains or losses on hed
Slide 40: Consolidated Balance Sheets
2-2. 2 2. Consolidated Balance Sheets Results Briefing for the Second Quarter Ended September 30, 2011 40
Slide 41: Balance Sheets
(Consolidated) Balance Sheets Assets Liabilities and Net Assets -11.5 (Billions of yen) (Billions of yen) -11.5 500.8 489.3 500.8 489.3 Current -2.3 Current Current Currentt C liabilities li biliti liabilities assets -6.9 assets 255.4 253.1 288.2 281.2 Noncurrent Noncurrent liabilities -0.9 liabilit
Slide 42: Detailed Consolidated Balance Sheets
(Consolidated) Detailed Consolidated Balance Sheets Mar 11 Sep 11 Remarks Billions of yen Figures in ( ) are changes from the previous year year. (Assets) Notes receivable, accounts receivable from completed construction contracts and other 116 8 ((-16.6) 116.8 16 6) Current assets 288.2 281.2 Costs
Slide 43: Detailed Consolidated Balance Sheets
(Consolidated) Detailed Consolidated Balance Sheets Mar 11 Sep 11 Remarks Billions of yen Fi Figures in i ( ) are changes h ffrom th the previous i year. (Liabilities) Notes payable and other accounts payable 98.9 (-19.1) Current liabilities 255.4 253.1 Short-term loans payable 45.5 (+1.6) Advances
Slide 44: Change in Real Estate Holdings
(Consolidated) Change in Real Estate Holdings ((Billions of yyen)) For business use (own use) For business use (rent) For sale +1.8 117.2 119.0 1120.0 1,200 200 114.5 113 0 113.0 For sale Decrease by sales -0.5 28.6 29.6 Transfer of costs +1.5 32.8 30.4 800 80.0 For businessuse 54.5 (rent) Purchase
Slide 45: Capital Investments
(Consolidated) Capital Investments ((Billions of yen) y ) Mar 12 Capital investments Mar 11 Sep 11 (forecast) P Property, t plant l t and d equipment i t 51 5.1 17 1.7 42 4.2 Intangible assets 0.3 0.3 1.3 Total 54 5.4 21 2.1 55 5.5 (Billions of yen) Mar 11 Sep 11 Mar 12 (forecast) D Depreciation i i
Slide 46: Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei Stock Average Share Price (Billions of yen) (Yen) 200.0 2,000 GFC Earthquake 12,000 11,089 9 755 9,755 150.0 Immediately 8,700 1,500 after the earthquake 9,000 8,109 8 228 8,228 119.6 110.2 100.4 1,000 1 0000 100 1
Slide 47: Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest Interest-Bearing Bearing Liabilities Short-term Long-term Ratio of interest-bearing liabilities Non-consolidated (Billions of yen) Figures in ( ) represent current portion of long-term loans payable. 80.0 800 12.0% 10.9% 11.9% 11.6% 11.7% 59.2 59.5 58.1 58.5 600 60.
Slide 48: Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts (Billions of yen) Architectural construction Civil engineering g g 100 10.0 9.3 9.2 1.9 Civil engineering 80 8.0 2.1 64 6.4 6.0 60 1.2 Architectural 4.0 40 3.2 7.3 construction 5.2 7.1 1.2 20 2.0 1.9 0.0 0 Mar 09 Mar 10 Mar 11 Sep
Slide 49: Consolidated Statements of Cash Flow
2-3. Consolidated Statements of Cash Flow Results Briefing for the Second Quarter Ended September 30, 2011 49
Slide 50: Statements of Cash Flow
(Consolidated) Statements of Cash Flow 61.6 -11.4 50 1 50.1 Profit before tax +0.0 Depreciation and amortization +1.0 Construction-related funds -7.0 ncrease in fund Decrease in fund In (Mar 11) (Sep 11) Dividends paid -2.1 Loans +0.3 Results Briefing for the Second Quarter Ended September 30, 2011
Slide 51: (Reference) Share Price and Other Indices
(Reference) Share Price and Other Indices (Consolidated) Mar 12 Mar 2009 Mar 2010 Mar 2011 Sep 2011 (forecast) Share price (Yen) 303 337 329 306 306 Net assets per share (Yen) 567.37 621.93 607.54 580.82 580.82 Net income per share (Yen) 9.01 10.23 12.20 0.16 14.89 PER: Price earning ratio (times) P
Slide 52: (Reference) Introduction of Hospitality Program for Shareholders
(Reference) Introduction of Hospitality Program for Shareholders • Purpose of the introduction: To increase the attractiveness of Toda Corporation stock • Outline of the program: p g Record date: Hospitality tickets are sent every December to shareholders who own shares as of the end of September ea
Slide 53: Toda Corporation
STODA TODA CORPORATION (SINCE 1881)