Slide 1: Results Briefing for the Year Ended March 31, 2013
May 20 20, 2013 Results R lt Briefing B i fi for f the th Year Y Ended March 31,, 2013
Slide 2: Forward-looking statements notice
This report contains forward-looking statements regarding Toda Corporation p and the Group’s p corporate p p plans, strategies, g 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
Slide 3: Agenda
1. Summary of Financial Results Executive Manager Yushi Kikutani 2. Issues and Initiatives President Shunzo Inoue 3. Direction Going Forward Deputy President and Executive Officer Masanori Imai Results Briefing for the Year Ended March 31, 2013 3
Slide 4: 1. Summary of Financial Results
1. Summary of Financial Results Executive Manager Yushi Kikutani Results Briefing for the Year Ended March 31, 2013 4
Slide 5: 1-1. Summary of Financial Results for the Year Ended March 31, 2013
1-1. Summary of Financial Results for the Year Ended March 31, 2013 Results Briefing for the Year Ended March 31, 2013 5
Slide 6: Highlights: FY2012
Highlights: FY2012 Consolidated Net Sales: ¥497.0 billion, up 1.6% year-on-year ： Net sales of completed construction contracts increased due to the progress of contracted construction work by the Company and overseas subsidiaries subsidiaries. Operating Loss: (¥46.9 billion), down ¥39.0 billion
Slide 7: Summary: FY2012
Summary: FY2012 FY2012 FY2011 Forecasts announced in Change Difference the third Actuals (year on year) (vs. forecast) (Billions of yen) quarter Consolidated net sales 489.3 500.7 497.0 +7.7 -3.7 Operating income (7.9) (43.0) (46.9) -39.0 -3.9 O di Ordinary iincome (6 6) (6.6) (41 6) (41.6) (45 5) (
Slide 8: Main Factors for Losses
Main Factors for Losses Incurring loss in the construction business: (¥27.1 billion) ： Due to the increased harshness of the cost management environment caused mainly by a tight labor situation and to the slump in profits of contracted construction, a loss was posted. Closely reviewed architectura
Slide 9: (Non-consolidated) Construction Business Performance
(Non-consolidated) Construction Business Performance (Billions of yen) Orders Received for Net Sales of Completed Gross Profit Margin on Construction Construction Contracts Completed Construction Contracts (%) 4.6 448.9 452.5 ＋0.8％ 4.0 403 2 403.2 Civil Ci il 38 3.8 Civil 83.8 2.4 Engineering 101.5
Slide 10: (Non-consolidated) Breakdown of the Orders Received
(Non-consolidated) Breakdown of the Orders Received (Billions of yen) Breakdown by Client By Quarter Total 403.2 -15.9％ 2.2 Overseas 339.0 -98.2％ 97.6 0 119.9 ４Ｑ 298.0 99.9 +22.8％ Private 226.9 Sector -23.9％ 23.9％ ３Ｑ 69 1 69.1 -30.8％ 108.4 ２Ｑ 71.5 -34.0％ Public 102.9 112.0 Sector 97.1 １Ｑ 78.4 +8.7％
Slide 11: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural JAPAN POST Co., Ltd. Omiya Sakuragicho 1-chome Project Construction Keisei Hikifune Ekimae Higashi No.3 Keisei Hikifune Ekimae Higashi No.3 District Urban District Urban Redevelopment Union Redevelopment Makino Milling Machine Co., Lt
Slide 12: Main Works Completed
Main Works Completed Ordering Parties Name of Works Architectural Mitsubishi Estate Co., Ltd. Otemachi 1-chome No.2 District Building B Construction Tokyo Metropolitan Geriatric Hospital Geriatric Hospital and Institute of Gerontology and Institute of Gerontology Urban Renaissance Agency Musashi-ura
Slide 13: 1-2. Details of Financial Results
1-2. Details of Financial Results Results Briefing for the Year Ended March 31, 2013 13
Slide 14: (Consolidated) Toda Group
(Consolidated) Toda Group 16 Business Subsidiaries in Japan Overseas Subsidiaries Companies Construtora Toda do Brazil S/A Toda Reform Co., Ltd. Toda Construction (Shanghai) Co., Ltd. Construction Sipco Industries Co., Ltd. Architectural 10 Th i T Thai Toda d CCorporation ti Ltd Ltd. Construction Co
Slide 15: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance *Intra-company transaction is not eliminated in this chart. FY2012 Ratio of FY2012 Toda Corporation Subsidiaries total consolidated consolidated results to non- Billions of yen % % % consolidated Results Net sales 460 2 460.2 59 7 59.7 497 0 497.0 1 08 1.0
Slide 16: (Consolidated) Statements of Income
(Consolidated) Statements of Income FY2011 (actual) FY2012 (actual) Changes FY2013 (forecast) Billions of yen % % % Net sales 489.3 497.0 +7.6 444.0 G Gross profit fit 15 1 15.1 31 3.1 (24 6) (24.6) -5.0 50 -39.7 39 7 24 3 24.3 55 5.5 Selling, general and administrative expenses 23.1 22.3 21.0 O Ope
Slide 17: (Consolidated) Net Sales and Operating Income by Segment
(Consolidated) Net Sales and Operating Income by Segment Net Sales Operating Income (Billions of yen) ((Billions of yen) 600 30 Real Estate and Other 15.9 15.4 Real Estate and Other 15 Civil 12.0 Engineering Real Estate Total 104.6 88.5 1.3 and Other 3.3 400 1.4 0 3.5 (5.3) Construction (15) Archite
Slide 18: (Consolidated) Change in Gross Profit Margin on Completed Construction Contracts
(Consolidated) Change in Gross Profit Margin on Completed Construction Contracts (Billions of yen) Consolidated Non-consolidated 30 20 19.6 20.9 17.9 18.0 10 0 (10) (20) (27.1) (28.9) (30) FY2011 FY2012 FY2013 (forecast) Gross Profit Margin on p Completed Construction Contracts Ratio 4 1％ 4.1％ -5 5.
Slide 19: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated 30 23.1 22.3 20 9 20.9 20 1 20.1 21 0 21.0 20 18.0 10 0 FY2011 FY2012 FY2013 (forecast) SG&A Ratio 4 7％ 4.7％ 4 5％ 4.5％ 4 7％ 4.7％ Results Briefing for the Year Ended March 31, 2013 19
Slide 20: (Consolidated) Change in Operating Income (Loss)
(Consolidated) Change in Operating Income (Loss) (Billions of yen) Consolidated Non-consolidated 3.3 2.0 0 (7.9) (8.2) (10) ((20)) (30) (40) (46.9) (47.4) (50) FY2011 FY2012 FY2013 (forecast) Operating Income R ti Ratio -1 1.6％ 6％ -9 9.5％ 5％ 0 7％ 0.7％ Results Briefing for the Year Ended March 31, 20
Slide 21: (Consolidated) Change in Ordinary Income (Loss)
(Consolidated) Change in Ordinary Income (Loss) (Billions of yen) Consolidated Non-consolidated 10 4.6 3.3 0 (6.6) ((7.1)) (10) (20) (30) (40) (45.5) (46.2) (50) FY2011 FY2012 FY2013 (forecast) Ordinary income R ti Ratio -1 1.4％ 4％ -9 9.2％ 2％ 1 0％ 1.0％ Results Briefing for the Year Ended March 31, 2
Slide 22: (Consolidated) Change in Extraordinary Income (Loss)
(Consolidated) Change in Extraordinary Income (Loss) Income (Loss) (6.3) (2.2) +4.0 6 (Billions of yen) 4.0 4 Extraordinary income 2.1 Gain on sales 2 of investment Gain on sales of investment securities 4.0 securities 1.8 0 Other income 0 0.2 2 0 Impairment loss (0.9) Impairment loss (2.4) Loss on
Slide 23: (Consolidated) Change in Net Income (Loss)
(Consolidated) Change in Net Income (Loss) (Billions of yen) Consolidated Non-consolidated 10 76 7.6 70 7.0 0 (10) (19 8) (19.6) (19.8) (19 6) (20) (30) ((65.2)) (66.3) (40) (50) (60) (70) FY2011 FY2012 FY2013 (forecast) Net income ratio -4.1％ -13.1％ 1.7％ Dividends per share 6 0 yen 6.0 5 0 yen 5.0
Slide 24: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets (Billions of (Billions of Assets yen) Liabilities and Net Assets yen) +13.0 13.0 +13 0 +13.0 500.1 500.1 487.1 487.1 Current Current Current Current assets liabilities liabilities assets 271.8 255.7 +38.2 281 3 281.3 -9.5 9.5 293.9 Noncurrent liabilities 59.8 +18.2 Nonc
Slide 25: (Consolidated) Detailed Consolidated Balance Sheets
(Consolidated) Detailed Consolidated Balance Sheets FY2011 FY2012 Remarks Billions of yen Figures in ( ) are changes from the previous year (Assets) Cash 38.7 (+1.8) Notes receivable, accounts receivable from Current assets 281 3 281.3 271 8 271.8 completed construction contracts and other 164.7 (+0
Slide 26: (Consolidated) Detailed Consolidated Balance Sheets
(Consolidated) Detailed Consolidated Balance Sheets FY2011 FY2012 Remarks Billions of yen Figures in ( ) are changes from the previous year (Liabilities) Notes payable and other accounts payable 155.1 (+22.3) Short-term loans payable / CP Current liabilities 255 7 255.7 293 9 293.9 52 7 (+15.7) 52.7
Slide 27: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities (Billions of yen) Book value Valuation difference 150 143.3 +32.6 110.2 110.7 60 4 60.4 100 26.2 26.3 50 83 9 83.9 84 3 84.3 82 8 82.8 0 FY2010 FY2011 FY2012 Nikkei stock-average stock average 11 089 yen 11,089 9 755 yen 9,755 12 397 yen 12,397 Results
Slide 28: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities (Billions of yen) Short-term Long-term 80 73 4 73.4 70.0 57.5 20.6 60 +15.8 20.4 40 70.0 52.7 20 37.0 0 FY2011 FY2012 FY2013 (forecast) Ratio of interest-bearing g liabilities 11 6% 11.6% 11 8% 11.8% ー Results Briefing for the Year Ended March 31
Slide 29: (Consolidated) Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts (Billions of yen) Architectural construction Civil engineering 28 24 23.1 Civil Engineering 2.2 20 +9.1 16 14.0 12 2.8 Architectural construction 20.9 8 11.2 4 0 FY2011 FY2012 Results Briefing for the Year Ended March 31, 2013 29
Slide 30: (Consolidated) Change in Net Sales
(Consolidated) Change in Net Sales (Billions of yen) -43.4 189.5 171.5 128.0 FY2010 FY2011 FY2012 Results Briefing for the Year Ended March 31, 2013 30
Slide 31: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) -4 0 -4.0 52.0 48.0 Profit before tax (47.8) Costs on uncompleted construction contracts +10.8 Notes and accounts payable- trade +22.0 Cash and cash Cash and cash equivalents at Sales of investment securities +3.2 equivalents beginning at end o
Slide 32: 1-3. Performance Forecasts
1-3. Performance Forecasts Results Briefing for the Year Ended March 31, 2013 32
Slide 33: 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 497.0 444.0 -10.7% -53.0 sales Operating income (46.9) 3.3 +50.2 Ordinary income (45 5) (45.5) 46 4.6 +50 1 +50.1 Net income (65.2) 7.6 +72.8 Orders received 339.0 330.0
Slide 34: (Non-consolidated) Forecasts of the Construction Business
(Non-consolidated) Forecasts of the Construction Business (Billions of yen) Gross Profit Margin on Orders Received for Net Sales of Completed Completed Construction Construction Construction Contracts Contracts Civil Engine 452.5 (%) -ering 6.3 6 3 Total 394.0 -12.9% 339.0 -2.7% 83.8 4.6 330.0 Civil
Slide 35: Non-Consolidated Forecasts for FY2013
Non-Consolidated Forecasts for FY2013 Amount Profitability (Billions of yen) (%) Net sales 400 0 400.0 Gross profit 20.0 5.0 Profits o ts in the t e construction co st uct o bus business ess 18.0 80 4.6 6 [Architectural construction] [13.0] [4.1] [Civil engineering] [5.0] [6.3] Profits in the real e
Slide 36: 2. Issues and Initiatives
2. Issues and Initiatives P id t Sh President Shunzo IInoue Results Briefing for the Year Ended March 31, 2013 36
Slide 37: 2-1. Recognized Issues
2-1. Recognized Issues Results Briefing for the Year Ended March 31, 2013 37
Slide 38: Strategies to Improve Financial Results
Strategies to Improve Financial Results Operating loss for two consecutive years Series of downward revisions Urgent need to reconstruct the construction business (Awareness, strategies, organization) Results Briefing for the Year Ended March 31, 2013 38
Slide 39: Cause of Deteriorating Performance
Cause of Deteriorating Performance Recognition that the cause lies within ithi the th CCompany Market Price Surge in material stagnation competition prices Tight Receipt of construction t ti Unachieved cost unprofitable cycle; loss cost management plan orders incurred Maintaining Orders taken for La
Slide 40: 2-2. Initiatives to Recover Performance
2-2. Initiatives to Recover Performance Results Briefing for the Year Ended March 31, 2013 40
Slide 41: Key Initiatives
Key Initiatives Pursue appropriate operating size Make selection of orders more stringent Reinforce order management system Closely Cl l review i and d manage profitability of construction Reduce selling, general, and administrative expenses Results Briefing for the Year Ended March 31, 2013 41
Slide 42: Pursue Appropriate Operating Size
Pursue Appropriate Operating Size Change in orders received for construction (FY2006 = 100) Toda Secure a size of Corporation p orders that matches the market （１００） Maintain M i t i ab balance l （255.8 billion yen） between quantity and 78.6 quality; strictly adopt a 50 leading profit oriented policy
Slide 43: Make Selection of Orders More Stringent
Make Selection of Orders More Stringent Take orders of “priority priority area × mid mid-size size property property” By category By size (distribution ratio of construction orders) (distribution ratio of construction orders) Other More than 4 Housing billion 3-4 billion Office 12.8 buildings 2-3 bi
Slide 44: (Reference) Status of Sales by Year
(Reference) Status of Sales by Year Breakdown of net sales of completed construction (By year) Orders for large-scale and unprofitable construction (347.4 billion yen) (368.7 billion yen) work were concentrated in (314.0 billion yen) FY2010 and FY2011 FY2013 orders FY2012 orders FY2013 will see a lo
Slide 45: Reinforce Order Management System
Reinforce Order Management System Promote transparency and reinforcement of processes Order authorization Pricing determination Approval decision process process review Administration department to Newly establish a cost center Establishment of a Committee be actively involved in (estimation departm
Slide 46: Closely Review and Manage Profitability of Construction
Closely Review and Manage Profitability of Construction Monitor costs and reinforce cost competitiveness Close review of construction work costs Actions A ti (elimination of uncertain elements) taken in ・ Strict evaluation of additional construction work, VE and CD FY2012 ・ Reflection of tight proce
Slide 47: Reduce Selling, General, and Administrative Expenses
Reduce Selling, General, and Administrative Expenses p Plan to reduce SG&A expenses to ¥18.0 billion in FY2013 (non (non-consolidated) consolidated) Build up from zero Reduce expenses for Personnel costs FY2013 by roughly ¥2.1 (attrition, reallocation) billion (non-consolidated) Outsourcing expenses
Slide 48: (Reference) Overseas and Real Estate Businesses
(Reference) Overseas and Real Estate Businesses Target for FY2015: Net sales of ¥30.0 ¥30 0 billion Target for FY2015: Gross profit of ¥4.0 ¥4 0 billion Net sales of overseas construction Income from real estate, etc. ((consolidated)) ((consolidated)) Line graph signifies net sales of orders receive
Slide 49: (Reference) Environmental Business Activities
(Reference) Environmental Business Activities Concept rendering by FS Business Department Power generation by floating Kawamata--machi, Kawamata machi Fukushima wind turbines (Small-scale testing device) – Smart Community for lightly populated areas Results Briefing for the Year Ended March 31, 2013
Slide 50: Strategies for Business Recovery (Summary)
Strategies for Business Recovery (Summary) Take all possible measures to be in the black in FY2013 Ensure execution of improvement measures Ensure through monitoring and prompt response Revive earning power Convert sense of values in the Company Create mechanisms and structures for growth Results Br
Slide 51: 3. Direction for the Future
3. Direction for the Future D Deputy t President P id t and dEExecutive ti Offi Officer Masanori Imai Results Briefing for the Year Ended March 31, 2013 51
Slide 52: Biography (Work History)
Biography (Work History) 1978 April Joined the Company 1999 April Construction Manager, Manager Architectural Construction Department Department, Tokyo Branch 2000 February Sales Division Manager, Architectural Construction Sales Department, Osaka Branch 2001 October Manager, Keiji General Sales Off
Slide 53: Toda Corporation as a Valuable Company
Toda Corporation as a Valuable Company Customers’ recognition of Toda’s values leads to earnings Profit--generating scheme Profit Toda Customers Recognizing Corporation values (clients and end-users) Securing Valuable employees revenues Source of revenues An entity of valuable employees A company se
Slide 54: Our Tactics
Our Tactics Provide solutions beyond the boundaries of architectural a c tectu a coconstruction st uct o aand dccivil e engineering g ee g Investment International & Development ・ Support overseas activities of clients of domestic sales office ・ Offer solutions based on development ・ Expand construc
Slide 55: Roles and Responsibilities of the Organization
Roles and Responsibilities of the Organization Build a customer- customer-oriented organization Customer Cycle of Extract Specify Select & plan Demonstrate Add again value creation: S l Sales Design D i & Maintenance & Branches operation planning Construction management Renewal (Subsidiaries and aff
Slide 56: Company with True Value = Highly Profitable Company
Company with True Value = Highly Profitable Company Achieve the minimum level of earnings expected by society and market No bright future if we keep the current approach Highly profitable FY2012 FY2013 company Extension of status quo (Gross Profit Ratio 8% and higher) (Gross Profit Ratio -5.0%) 5 0%
Slide 57: Toda Corporation
OSTODA TODA CORPORATION (SINCE 1881) 57