Toda Corporation · TSE:1860
Toda — Q2 FY2010 Earnings Presentation
48 slides from Toda's earnings presentation, Nov 15, 2010
Slide 1: Results Briefing for the Second Quarter Ended September 30, 2010
November 15, 2010 Results Briefing for the Second Quarter Ended September 30, 2010
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: Summary and Details of Financial Results
1. Summary of Financial Results - President Shunzo Inoue 2. Details of Financial Results - Executive Manager Toshiro Oka Results Briefing for the Second Quarter Ended September 30, 2010 3
Slide 4: 1-1. Summary of Financial Results for the Second Quarter
1-1. Summary of Financial Results for the Second Quarter *Six Months from April 1, 2010, to September 30, 2010 Results Briefing for the Second Quarter Ended September 30, 2010 4
Slide 5: Highlights: FY2010 2Q
Highlights: FY2010 2Q Consolidated Net Sales ¥189.9 billion (up 38.3% year-on-year): Significant increase in completed work following the full application of percent of completion (17.9% ⇒ 79.8%). Operating Income ¥1.6 billion: Higher sales and an improvement of the profit margin on completed co
Slide 6: Summary: FY2010 2Q
Summary: FY2010 2Q (Millions of yen) Apr-Sep FY2010 Apr-Sep FY2009 Forecast Actual Difference Consolidated net sales 137,312 192,000 189,905 (2,094) Operating income (2,693) 1,500 1,620 120 Ordinary income (2,122) 2,100 2,200 100 Net income (1,577) 1,000 1,104 104 Orders received 167,913 170,000 180
Slide 7: Construction Business Performance (Non-consolidated)
Construction Business Performance (Non-consolidated) Orders Received Net Sales of Completed Gross Profit Margin on for Construction Construction Contracts Completed Construction Contracts +7.5% +42.6% 180.4 178.8 7.1 167.9 7.2 Architectural Civil Civil construction 28.6 41.0 engineering engineering
Slide 8: Breakdown of the Orders Received (Non-consolidated)
Breakdown of the Orders Received (Non-consolidated) (Reference) Breakdown by Client By Quarter Progress 420.0 0.0 Overseas 396.5 1.2 -94.5% 2Q 3Q + (Billions of yen) (Billions of yen) (Billions of yen) 104.1 +5.6% 124.1 Domestic 98.6 4Q 124.7 private sector 43.0% -0.5% 42.3% 1Q 1Q Domestic 69.2 76.2
Slide 9: Main Orders Received
Main Orders Received Ordering parties Name of works Architectural St. Mary’s Hospital Phase II Works of the Redevelopment construction Project, etc. East Japan Railway Company Kanda Manseibashi Building Japanese Red Cross Society Kinki Block Blood Center Tsukuba City, Ibaraki Kasuga Elementary Schoo
Slide 10: Main Works Completed
Main Works Completed Ordering parties Name of works Architectural Warabi Station West Area Warabi Station West Area construction Redevelopment Association Redevelopment Shinagawa-ku, Tokyo Ebaranishi Area Integrated Elementary and Middle Schools Japanese Red Cross Society Okinawa Prefectural Branch
Slide 11: 1-2. Progress of Medium-Term Management Plan
1-2. Progress of Medium-Term Management Plan * Planned period: FY2009 - FY2011 Results Briefing for the Second Quarter Ended September 30, 2010 11
Slide 12: Recognition of Business Conditions (Forecasts)
Recognition of Business Conditions (Forecasts) (Reference) Change in the Perception of Private sector Excess Production Capacity The perception that excess capacity ▲5 95 Diffusion index (DI) of “Excess capacity” exists in various industries has led to minus “Insufficient capacity” (Left scale) Pr
Slide 13: (Reference) Implementing Measures
(Reference) Implementing Measures Target Index FY2011 Ratio of renovations to completions 25% Ratio of orders in the priority areas 70% Overseas orders received ¥20.0 billion (Consolidated) Real estate investment (cumulative ¥23.0 billion + α total for the period of the plan) Ratio of sales in the 6
Slide 14: Renovations (Architectural Construction)
Renovations (Architectural Construction) Strengthened proposals for renovations for resistance to earthquakes and the updating of energy-conserving/environmentally friendly facilities Sales of Completions in Architectural Earthquake-resistant technology (TO- Remodeling Construction STC Method: seism
Slide 15: Priority Areas (Types of Works)
Priority Areas (Types of Works) The ratios of medical/welfare facilities and roads increased Orders received for Orders received for Ratio in the priority areas: 82.7% Ratio in the priority areas: 70.6% Architectural construction civil engineering 17.9 14.4 12.3 Others 15.8 Others 21.2 5.0 Housing 3
Slide 16: Environmental Initiatives
Environmental Initiatives Environmentally friendly technology used for the TODA BUILDING AOYAMA Photovoltaic power generation system: Rooftop gardening: Install solar panels on the rooftop Plant trees on part of a rooftop surface Turntable to reduce the load due to direct sunlight Mechanical parking
Slide 17: Overseas Business
*For overseas corporations; based on the Overseas Business cumulative operating results for nine months from January to September 2010 Considerable increase in orders received in Brazil and China China (Shanghai, Guangzhou, Shenzhen) Orders received for the construction of electrical machine-related
Slide 18: Major Initiatives to Be Addressed in the Second Half
Major Initiatives to Be Addressed in the Second Half Strengthen our engineering proposal capability in the priority areas Streamline our Environmental Strategy Counsel (permanent organ) Incorporate overseas demand centering on the emerging nations (e.g., Brazil, China) Review our internal or
Slide 19: 1-3. Results Forecasts
1-3. Results Forecasts Results Briefing for the Second Quarter Ended September 30, 2010 19
Slide 20: Forecasts for FY2010
Forecasts for FY2010 (Millions of yen) FY2010 FY2009 Forecast Change Consolidated net sales 475,055 467,000 -1.7% Operating income 6,408 7,100 10.8% Ordinary income 7,724 8,200 6.2% Net income 3,175 4,000 26.0% Orders received (Non-consolidated) 396,545 420,000 5.9% Results Briefing for the Second Q
Slide 21: Forecasts of the Construction Business
Forecasts of the Construction Business (Non-consolidated) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts +5.9% -3.7% 446.3 420.0 430.0 396.5 Civil 97.9 Civil 6.3 6.4 Architectural 85.0 engineering construction 80
Slide 22: 2-1. Consolidated Statements of Income
2-1. Consolidated Statements of Income Results Briefing for the Second Quarter Ended September 30, 2010 22
Slide 23: (Consolidated) Statements of Income
(Consolidated) Statements of Income (Billions of yen) Apr-Sep Apr-Sep Apr-Sep 10 Mar 11 Change Progress 09 10 Published Published Net sales 137.3 189.9 52.5 192.0 467.0 40.7% Gross profit 9.6 13.5 3.9 Selling, general and 12.3 11.9 (0.4) administrative expenses Operating income (loss) (2.6) 1.6 4.3
Slide 24: (Consolidated) Changes in Net Sales
(Consolidated) Changes in Net Sales Construction Real Estate and Other (Billions of yen) (Billions of yen) 500.0 14.0 450.0 400.0 12.0 350.0 10.0 300.0 5.9 5.7 14.0 131.3 184.1 453.0 8.0 250.0 6.0 0.3 0.5 200.0 18% 1.0 0.6 80% 150.0 23.5 147.0 4.0 100.0 4.6 4.4 82% 2.0 50.0 107.7 20% 37.1 0.0 0.0 Ap
Slide 25: (Consolidated) Changes in Gross Profit
(Consolidated) Changes in Gross Profit Construction Real Estate and Other (Billions of yen) (Billions of yen) 30.0 4.0 25.0 3.0 20.0 1.8 1.6 3.8 11.9 28.0 0.1 2.0 0.1 0.0 15.0 7.7 0.0 16% 10.0 91% 1.6 1.1 1.0 1.5 10.8 84% 5.0 9% 6.5 1.0 0.0 0.0 Apr-Sep 09 Apr-Sep 10 Mar 11 Apr-Sep 09 Apr-Sep 10 Mar
Slide 26: (Consolidated) Changes in SG&A
(Consolidated) Changes in SG&A (Billions of yen) 9.0% (%) 30.0 9.0 Consolidated Non- 6.3% consolidated 20.0 5.2% 6.0 Consolidated Non- Consolidated Non- consolidated consolidated 24.7 22.2 10.0 3.0 12.3 11.0 11.9 10.7 0.0 0.0 Apr-Sep 09 Apr-Sep 10 Mar 11 (Forecast) SG&A SG&A Rate of SG&A (Consolidat
Slide 27: (Consolidated) Changes in Operating Income (Loss)
(Consolidated) Changes in Operating Income (Loss) (Billions of yen) 2.0% 1.5% 9.0 7.0 0.9% 1.0% 5.0 7.1 0.0% 3.0 1.0 1.6 -1.0% -1.0 (2.6) -3.0 -2.0% -2.0% Apr-Sep 09 Apr-Sep 10 Mar 11 (Forecast) Operating income Profit margin Results Briefing for the Second Quarter Ended September 30, 2010 27
Slide 28: (Consolidated) Changes in Non-operating Income (Loss)
(Consolidated) Changes in Non-operating Income (Loss) Account balance 0.5 0.5 1.1 (Billions of yen) 2.5 1.1 1.1 Dividends income 1.5 Interest income 0.1 0.1 2.1 0.1 0.1 Other 0.5 0.8 0.8 (0.4) (0.4) (0.1) -0.5 (0.0) (1.0) (0.5) (0.5) -1.5 Interest expenses Other -2.5 Apr-Sep 09 Apr-Sep 10 Mar 10 (Fo
Slide 29: (Consolidated) Changes in Ordinary Income (Loss)
(Consolidated) Changes in Ordinary Income (Loss) (Billions of yen) 1.8% 2.0% 9.5 1.2% 7.5 1.0% 5.5 8.2 3.5 0.0% 1.5 2.2 -1.0% -0.5 -1.5% (2.1) -2.5 -2.0% Apr-Sep 09 Apr-Sep 10 Mar 11 (Forecast) Ordinary income Profit margin Results Briefing for the Second Quarter Ended September 30, 2010 29
Slide 30: (Consolidated) Changes in Extraordinary Income (Loss)
(Consolidated) Changes in Extraordinary Income (Loss) Account balance (8) (0.9) (100 million) 10 5 Gain on sales of noncurrent assets 1 5 1 Reversal of allowance for doubtful accounts 4 1 Gain on negative goodwill 0 (1) Loss on valuation of investment securities Provision of allowance (1) Asset reti
Slide 31: (Consolidated) Changes in Net Income (Loss)
(Consolidated) Changes in Net Income (Loss) (Billions of yen) 1.5% 4.0 0.9% 3.0 0.6% 0.5% 2.0 4.0 1.0 1.1 0.0 -0.5% (1.5) -1.0 -2.0 -1.1% -1.5% Apr-Sep 09 Apr-Sep 10 Mar 11 (Forecast) Results Briefing for the Second Quarter Ended September 30, 2010 31
Slide 32: (Reference) Consolidated Statements of Comprehensive Income
(Reference) Consolidated Statements of Comprehensive Income (Billions of yen) Consolidated Statements of Comprehensive Income Mar 10 Sep 10 Income before minority interests 3.1 1.0 Other comprehensive income： Valuation difference on available-for-sale securities 15.3 (8.3) Deferred gains or losses o
Slide 33: 2-2. Consolidated Balance Sheets
2-2. Consolidated Balance Sheets Results Briefing for the Second Quarter Ended September 30, 2010 33
Slide 34: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets Assets Liabilities and Net Assets (Billions of yen) (15.2) (15.2) 600.0 502.4 487.1 502.4 487.1 500.0 Current Current Current Current 400.0 288.3 (2.3) 285.9 240.0 (2.7) 237.3 300.0 Noncurrent Noncurrent (2.7) 65.5 62.7 200.0 Noncurrent Noncurrent Net assets Net assets
Slide 35: (Consolidated) Balance Sheets: Assets
(Consolidated) Balance Sheets (Billions of yen) Sep 10 Mar 10 Notes receivable, accounts Assets 487.1 502.4 receivable from completed construction contracts and other: Current assets 285.9 288.3 107.6 (up 9.4 year-on-year) Costs on uncompleted construction contracts: 71.6 (down 5.9 year-on- Noncurre
Slide 36: (Consolidated) Balance Sheets: Liabilities and Net Assets
(Consolidated) Balance Sheets (Billions of yen) Sep 10 Mar 10 Notes payable, accounts payable for construction contracts and other : 84.8 (down 15.8 year-on-year) Liabilities 300.0 305.5 Advances received on uncompleted construction contracts: 73.5 (up 11.3 year- Current liabilities 237.3 240.0 on-y
Slide 37: (Consolidated) Changes in Real Estate Holding
(Consolidated) Changes in Real Estate Holding （Billions of yen） 140.0 112.1 114.3 113.0 114.1 120.0 100.0 32.8 30.4 30.4 35.5 80.0 60.0 50.0 53.8 41.0 52.3 40.0 76.5 81.7 82.6 83.7 20.0 35.5 31.7 30.3 29.9 0.0 Mar 08 Mar 09 Mar 10 Sep 10 For business use For business use (rent) For sale Results Brie
Slide 38: (Consolidated) Changes in Investment Securities
(Consolidated) Changes in Investment Securities the Nikkei ¥12,525 ¥8,109 ¥11,089 ¥9,369 Stock Average (Billions of yen) 200.0 136.6 150.0 119.6 105.3 91.1 59.1 35.9 100.0 21.9 10.1 50.0 77.5 81.0 83.7 83.4 0.0 Mar 08 Mar 09 Mar 10 Sep 10 Cost Valuation difference Total Results Briefing for the Seco
Slide 39: (Consolidated) Changes in Provision for Loss on Construction Contracts
(Consolidated) Changes in Provision for Loss on Construction Contracts (Billions of yen) 9.0 6.0 8.6 3.0 6.4 2.8 3.2 0.0 Mar 08 Mar 09 Mar 10 Sep 10 Results Briefing for the Second Quarter Ended September 30, 2010 39
Slide 40: 2-3. Consolidated Statements of Cash Flow
2-3. Consolidated Statements of Cash Flow Results Briefing for the Second Quarter Ended September 30, 2010 40
Slide 41: (Consolidated) Statements of Cash Flow
(Consolidated) Statements of Cash Flow Decrease in funds by ¥6.9 billion (Billions of yen) 70.0 (3.7) ・ Profit before (1.8) (1.4) tax 2.1 ・ Purchase of ・ Dividends property, plant (2.1) ・ Construction and equipment income/ (1.8) expenses 60.4 (7.9) 53.5 ・ Allowance 2.2 0.0 Beginning of Operating Inv
Slide 42: 2-4. Reference
2-4. Reference Results Briefing for the Second Quarter Ended September 30, 2010 42
Slide 43: (Reference 1) Consolidated Subsidiaries
(Reference 1) Consolidated Subsidiaries [Construction]: 9 companies [Real estate] 3 companies (Architectural construction ) Chiyoda Tochi Tatemono Co., Ltd. Toda Reform Co., Ltd Yachiyo Urban Co., Ltd. Chiyoda Kenko Co., Ltd. Toda America, Inc. SIPCO Co., Ltd Apec Engineering Co., Ltd Construtora To
Slide 44: (Reference 2) Ratio of Non-consolidated to Consolidated Earnings
(Reference 2) Ratio of Non-consolidated to Consolidated Earnings (Billions of yen) Apr-Sep FY2010 FY2009 Net sales Net sales 181.7 189.9 600.0 200.0 475.0 452.5 1.04-fold 400.0 100.0 1.05-fold 200.0 0.0 0.0 Toda Corporation Consolidated Toda Corporation Consolidated Net Income Net income 3.1 2.0 3.0
Slide 45: (Reference 3) Operations Overview of the Consolidated Subsidiaries
(Reference 3) Operations Overview of the Consolidated Subsidiaries Actual Results for Apr-Sep 2010 (Millions of yen) Architectural Civil Real estate Other Total construction engineering Net sales 14,304 Forecast: FY2010 1,548 3,192 659 19,705 (Millions of yen) Gross profit 464Architectural 63 Civil5
Slide 46: (Reference 4) Changes in Orders Received in the Priority Areas
(Reference 4) Changes in Orders Received in the Priority Areas for Architectural Construction Major Orders Received (Billions of yen) during Apr-Sep 2010 [Medical/Welfare Facilities] Mar 10 51.8 30.0 262.4 344.2 - Redevelopment Project of St. Mary’s Hospital 15% 9% - Kinki Block Blood Center [Educat
Slide 47: (Reference 5) Changes in Completions in the Priority Areas
(Reference 5) Changes in Completions in the Priority Areas for Architectural Construction Mar 08 53.4 25.8 255.1 16% 8% 334.3 337.3 Medical and welfare Mar 09 39.1 42.2 256.0 facilities 11% 13% Mar 10 51.3 56.6 240.5 348.4 Education and research 15% 16% facilities Apr-Sep 10 40.8 82.1 Other 27% 150.
Slide 48: TODA CORPORATION
OSTODA TODA CORPORATION (SINCE 1881)