Toda Corporation · TSE:1860
Toda — Q2 FY2022 Earnings Presentation
61 slides from Toda's earnings presentation, Nov 16, 2022
Slide 1: Results Briefing for the Second Quarter Ended September 30, 2022
Results Briefing for the Second Quarter Ended September 30, 2022 November 16, 2022 TODA CORPORATION 1
Slide 2: This material contains forward-looking statements regarding Toda Corporation and the Group’s corporate plans, strateg…
This material contains forward-looking statements regarding Toda Corporation and the Group’s corporate plans, strategies, and earnings forecasts. These statements are Toda Corporation’s forecasts based on information available as of the date of the material, which are subject to potential risks and
Slide 3: Today's Program
Today’s Program 1. Results Briefing General Manager of Corporate Administration Group Toshihiro Yamazaki 2. Progress of the Management Plan President and Representative Director Seisuke Otani 3
Slide 4: 1. Results Briefing
1. Results Briefing General Manager of Corporate Administration Group Toshihiro Yamazaki 4
Slide 5: 1-1. Results Overview
1-1. Results Overview 5
Slide 6: Financial Highlights
Financial Highlights ■ Consolidated Net Sales: ¥239.8 billion (+1.8% YoY) Consolidated net sales increased 1.1% YoY to ¥239.8 billion, mainly due to increase in domestic group companies business. ■ Operating Income: ¥0.4 billion (△94.6% YoY) Operating income decreased 94.6% YoY to ¥0.4 billion. The
Slide 7: Results Overview
Results Overview Apr-Sep Apr-Sep FY2022 (Billions of yen) FY2021 Results ％ Amount (YoY) (YoY) Consolidated net sales 235.5 239.8 +1.8% +4.2 Operating income 8.5 0.4 △94.6％ △8.1 Ordinary income 10.7 3.7 △65.0% △6.9 Net profit attributable to owners 7.5 3.2 △57.6% △4.3 of the parent Orders received (n
Slide 8: [Consolidated] Results for Each Segment
[Consolidated] Results for Each Segment (Billions of yen) Apr-Sep Architectural Civil Domestic Investment Domestic Group Overseas Investment and Environment Adjustment Total FY2021 Construction Engineering and Development and Energy Development Companies Net sales 148.9 67.7 11.7 15.0 1.1 0 △9.1 235
Slide 9: Main Orders Received
Main Orders Received Ordering Parties Name of Works Maishima Development Specified ( Tentative name ) DPL Osaka Maishima Building Construction Purpose Company construction work Lam Specified Purpose Company ESR OS1 Data Center construction work Oji Plant new business building construction work Natio
Slide 10: Main Carryover Works
Main Carryover Works Ordering Parties Name of Works Shibuya Station Sakuragaoka Exit Shibuya Station Sakuragaoka Exit District Type 1 Building Construction District Redevelopment Association Urban Redevelopment Project St. Marianna University School of St. Marianna University School of Medicine Suga
Slide 11: [Non-consolidated] Carryover Works
[Non-consolidated] Carryover Works Architectural Civil Overseas Total （Billions of yen） Construction Engineering 800.0 738.5 717.2 Overseas 3.6 717.2 予測との差異 単位：億円 Overseas 4.5 Overseas 2.5 Civil Civil Civil 600.0 Engineering Engineering Engineering 263.6 279.8 259.2 400.0 Architectural Architectural
Slide 12: 1-2. Details of Financial Results
1-2. Details of Financial Results 12
Slide 13: [Consolidated] Toda Group
[Consolidated] Toda Group Business Subsidiaries in Japan Overseas Subsidiaries 38 companies APEC Engineering Co., Ltd. Construtora Toda do Brasil S/A Chiyoda Kenkou Co., Ltd. PT Tatamulia Nusantara Indah Toda Road Co., Ltd. Thai Toda Corporation Ltd. Construction 23 Sato Kogyo Co., Ltd. Toda Vietnam
Slide 14: [Consolidated] Balance Sheets
[Consolidated] Balance Sheets (Billions of (Billions of Assets yen) Liabilities and Net Assets yen) 761.1 △28.7 761.1 △28.7 732.4 732.4 Notes and accounts payable- trade △7.4 Current Short-term loans △12.6 Current Cash and deposits △41.7 Current Accounts receivable +10.8 liabilities Commercial paper
Slide 15: [Consolidated] Change in Cross-Shareholdings
[Consolidated] Change in Cross-Shareholdings Book Valuation Number of stocks Nikkei Stock Average （Billions of yen） Value Difference Share price（yen） 350 27,821 30,000 118 25,937 29,178 300 25,000 101 250 18,917 98 96 20,000 200 167.3 155.8 158.1 15,000 150 130.4 Valuation Valuation Valuation Valuat
Slide 16: [Consolidated] Change in Interest-Bearing Liabilities
[Consolidated] Change in Interest-Bearing Liabilities Short-term Long-term （Billions of yen） 220.0 179.3 151.0 152.6 Long-term 84.2 111.8 Long-term Long-term 220.0 82.7 95.1 Long-term 62.3 Short-term Short-term 95.1 Short-term Short-term 68.2 57.5 49.4 March 2020 March 2021 March 2022 September 2022
Slide 17: [Consolidated] Change in Provision for Loss in Construction Contracts
[Consolidated] Change in Provision for Loss in Construction Contracts （Billions of yen） Architectural Civil Overseas 12.50 Construction Engineering Overseas 0.03 10.00 9.29 Civil Engineering 7.50 2.49 +6.63 Overseas 1.01 5.00 Architectural Overseas Architectural Construction 0.05 2.75 2.66 Construct
Slide 18: [Consolidated] Change in SG&A
[Consolidated] Change in SG&A Consolidated （Billions of yen） Non-consolidated 30.0 SG&A Ratio 10.0% 8.0% 8.1% 7.2% 8.0% 20.0 6.0% 4.0% Consolidated 10.0 Consolidated Consolidated 19.3 17.0 17.0 2.0% Non-consolidated Non-consolidated Non-consolidated 15.1 14.9 16.7 0.0 0.0% September 2020 September 2
Slide 19: [Consolidated] Statement of Cash Flow
[Consolidated] Statement of Cash Flow (Billions of yen) △51.5 Cash and cash equivalents at beginning of period Cash and cash 129.3 Accounts payable-trade △13.4 equivalents at end of Income taxes paid △5.9 Accounts receivable-trade +4.5 period Increase in funds 77.7 Operating CF Investing CF (March 3
Slide 20: 1-3. Earnings Forecasts
1-3. Earnings Forecasts 20
Slide 21: FY2022 Earnings Forecasts
FY2022 Earnings Forecasts FY2022 FY2021 (Forecasts) Change (YoY) (Billions of yen) Consolidated 501.5 540.0 7.7% +38.4 net sales Operating 24.3 12.6 △48.3％ △11.7 income Ordinary 28.1 16.7 △40.6％ △11.4 income Profit attributable to owners of the parent 18.5 14.7 △20.8％ △3.8 Net Income Orders received
Slide 22: [Non-consolidated] Earnings Forecast for Construction Business
[Non-consolidated] Earnings Forecast for Construction Business (Billions of yen) (Billions of yen) (％) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts Civil engineering 18.0 452.2 453.0 Overseas 430.9 445.0 16.0 O
Slide 23: FY2022 Non-consolidated Earnings Forecasts
FY2022 Non-consolidated Earnings Forecasts Amount (billions of yen） Profit margin (%) Net sales 463.5 Gross Profit 47.6 10.3 Profits in the construction business 42.8 9.6 [Domestic architectural construction] (21.8) (7.0) [Domestic civil engineering] (20.8) (16.0) [Overseas] (0.2) (7.1) Profits in i
Slide 24: 1-4. Shareholder Returns
1-4．Shareholder Returns 24
Slide 25: Shareholder Returns
Shareholder Returns Dividend forecast 🔸🔸From the perspective maintaining of for dividend on equity (DOE) at 2.5% or more, the Company plans to keep a dividend of 27 yen per share (including an interim dividend 13.5 yen per share) for the fiscal year ending March 31, 2023. Shareholder FY2021…
Slide 26: 2. Progress of the Management Plan
２．Progress of the Management Plan President and Representative Director Seisuke Otani 26
Slide 27: 2-1. Earnings outlook
2-1. Earnings outlook 27
Slide 28: Earnings Outlook
Earnings Outlook FY2022 FY2021 FY2024 Results Forecast at Target beginning of Current forecast the term ¥520.0 Consolidated net sales ¥501.5 billion billion ¥540.0 billion ¥600.0 billion Profitability Operating income ¥24.3 billion ¥20.5 billion ¥12.6 billion ¥33.0 billion Operating margin 4.9% 3.9%
Slide 29: Net Sales / Operating Income by Business Segment
Net Sales / Operating Income by Business Segment FY2022 FY2021 Actual FY2024 Forecast at Target beginning of the Current forecast term Consolidated net sales ¥501.5 billion ¥520.0 billion ¥540.0 billion ¥600.0 billion Architectural construction ¥304.6 billion ¥322.0 billion ¥325.5 billion ¥360.0 bil
Slide 30: Reason for revision of forecast (difference with initial forecast)
Reason for revision of forecast (difference with initial forecast) Investment development Investment Elimination of Architectural Environment & development Group construction energy company Environment Architectural & energy Civil 18.8 consolidation construction engineering 540.0 (Billions of yen) C
Slide 31: Measures against deteriorating net income
Measures against deteriorating net income Measures (Secure additional/revised works) Background of downward revision Continue discussion on additional contract for price increase and VE Construction costs increased in (value engineering) proposal several projects in the architectural (Central mana
Slide 32: Architectural construction: carryover works
Architectural construction: carryover works 2Q FY2021 2Q FY2022 (Unit: % *[contract amount] ) (Unit: % *[contract amount] ) Leisure 0.3 Stores 0.3 Stores 1.5 Other 1.7 Leisure 0.5 Accommodations Other1.6 Plants/power 3.2 plants 4.1 Plants/power plants Warehousing Warehousing and Accomodations 7.8 Ot
Slide 33: Civil engineering: carryover works
Civil engineering: carryover works 2Q FY2021 2Q FY2022 (Unit: % *[contract amount] ) (Unit: % *[contract amount] ) Soil and water Tunnel Tunnel Soil and water Other conservation Other 24.6 conservation 1.7 12.6 1.0 13.1 31.6 ［66.2］ Roads ［82.2］ Land Land development 27.6 Roads development 6.3 ［74.2］
Slide 34: Non-financial Targets
Non-financial Targets FY2021 FY2022 FY2024 (Quantitative evaluation Indicators) Actual Forecast (Actual) Target CO2 emissions Reduction rate (vs FY2020） -0.4 -20.2 -16.8 % Scopes 1+2 Basic unit (100 mil yen) 16.5 15.5 11.2 t-CO2 E CO2 emissions Reduction rate (vs FY2020） -0.7 － -10.0% Scope 3 Catego
Slide 35: 2-2. Investment Plan Progress
2-2. Investment Plan Progress 35
Slide 36: Investment Plan and Capital Allocation
Investment Plan and Capital Allocation *Announced on May 17, 2022 Cash Allocation Policy Investments for growth Utilize interest- (FY2022 - FY2024 aggregated Business area expansion/ increase bearing debt value of assets *Maintain financial amount) soundness Real estate ¥160.0 billion D/E ratio deve
Slide 37: Investments for growth
Investments for growth Real estate development Environment/energy, etc. M&A, etc. Promote growth investment towards business area expansion and revenue stability Growth Investment Investment/Sale Major investments (FY2022 actual/scheduled) (Billions of yen) (Billions of yen) 190.0 58.0 4.0 30.0 (Inc
Slide 38: Enter private REIT/asset management business
Enter private REIT/asset management business Promote capital efficiency and real estate business growth Originate private REIT by 2025 and aim early achievement of ¥100.0 billion AUM Leasing/tenancy New construction Asset Management /renovation/ land development Promote capital efficiency Property
Slide 39: Investment in intangible assets
Investment in intangible assets HR Technology R&D Digitalization Enhance initiatives to strengthen business platform/enhance non- financial assets Intangible Asset Investment Main Technology R&D (FY2022 News Release) 32.0 (Billions of yen) 9.0 Worker safety monitoring 20.0 Tower crane 3D automated s
Slide 40: Reestablishment of Evaluation/Remuneration System
Reestablishment of Evaluation/Remuneration System Rebuild evaluation/remuneration system that promotes job satisfaction reform Redefine roles and realize flexible Promotion of younger/female employees treatment to key positions, recruitment, and retention of external resources Secure transpare
Slide 41: 2-3. Priority Area Initiatives
2-3. Priority Area Initiatives New Toda Building Overseas business Renewable energy 41
Slide 42: Strategy road map
Strategy road map Promote focus areas towards revenue contribution from FY2025 onwards 150th Phase1 Phase2 Phase3 anniversary (FY) 2022 - 2024 To 2027 To 2030 2031 Core Business Promote Smart Innovation (Architectural Construction/ Civil Engineering/ Enhance experiential value (customer experience)
Slide 43: Technology Strategy for New Toda Building
New Toda Building Technology Strategy for New Toda Building Building Size: 3 basement floors, 28 above- ground floors, 1 penthouse floor. Building Height: 165m Visualize the whole building to communicate Structure: Earthquake-resistant core-wall structure, RC-SRC-S structure Gross Floor Area: 94,813
Slide 44: Visualization of Entire Building
New Toda Building Visualization of Entire Building Use as a place for resolving customers’ issues Secure a tour route to observe Establish technology show our unique technology room/museum Continuously improving terrace Green (pillar) Chuo-dori Ave. side Bench Conference Green (floor) room Rooftop P
Slide 45: Structural Technology
New Toda Building Structural Technology Utilize “highest level earthquake resistance” achieved for the next-generation design Mass damper for Core wall controlling vertical Core-wall vibration Hybrid outrigger beam Damping beam Becomes an axle that Exterior thin S column Rooftop greening mass secure
Slide 46: Construction technology
New Toda Building Construction technology Promote safety and labor saving in construction by deploying automated construction technologies Remotely monitor the climbing action of the self-climbing Use of drones for construction progress and quality control formwork Automated Automated Automated Clim
Slide 47: Environment-Friendly Technology
New Toda Building Environment-Friendly Technology Achieve both environment- Rooftop friendliness and high functionality garden “ZEB Ready” （Typical environment-friendly technologies） certification Latent/sensible heat separation 1 Solar power 9 air conditioning system Upper floor bank 2 Hydrogen sto
Slide 48: New Toda Building
New Toda Building Full view of the construction site (as of September 28, 2022) 48
Slide 49: Positioning of Overseas Business in Toda Group
Overseas Business Positioning of Overseas Business in Toda Group Sustainable development of society / improvement of corporate value (Social value x Economic value) -Significance- Improve customer loyalty Capture overseas growth capacity Seamless domestic and overseas customer Investment of resource
Slide 50: New Overseas Business Strategy
Overseas Business New Overseas Business Strategy Realize growth through collaboration with overseas partners Toda Corporation / Overseas Partners Lesson of Brazil (TATA / local general contractors, Subsidiaries sub-contractors) Difficulty adjusting to Collaboration Construction track record and Unde
Slide 51: Made TATA a consolidated subsidiary - Creating Synergies
Overseas Business Made TATA a consolidated subsidiary - Creating Synergies By making TATA a consolidated subsidiary, promoting growth and revenue expansion as TODA Group Promote business development utilizing TATA’s corporate strength (Cooperate in market cultivation and (Strategic needs and corpora
Slide 52: Commencement of Offshore Wind Turbine Assembly
Renewable energy Commencement of Offshore Wind Turbine Assembly Construction gaining full momentum towards start of commercial operation (January 2024) First of the eight floating generator was completed and loaded on the semi-submersible spud barge, “Float Raiser.” On October 8, 2022, it sailed
Slide 53: Unit No.1 Float-Off to Raising
Renewable energy Unit No.1 Float-Off to Raising STEP1 STEP2 Float-off Raising to about 40° STEP3 STEP4 Swaying immediately after raising Completed raising 53
Slide 54: Increase revenue by expanding marine area and developing larger wind turbines
Renewable energy Increase revenue by expanding marine area and developing larger wind turbines Offshore wind power (medium- to long-term installation Hokkaido potential) 2.89-6.79 million kW Approx. 91 million kW 1.50-5.02 million kW (Potential based on natural conditions by Japan Wind Power Associa
Slide 55: mZ4”A TODA
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Slide 56: Initiatives on Creation of Regional Values
Initiatives on Creation of Regional Values Sixth sector industrialization of agriculture 56
Slide 57: Development of New Business involving Investment and Development
6th sector industrialization of agriculture Development of New Business involving Investment and Development: Achieving Sixth Sector Industrialization of Agriculture Top-class track record in Japan Deploy to land development, architectural construction, investment/development business • Resolve regi
Slide 58: Challenge Creating the Future for the Region around Sixth Sector Industrialization of Agriculture
6th sector industrialization of agriculture Challenge Creating the Future for the Region around Sixth Sector Industrialization of Agriculture Create the new Joso City brand Primary Secondary Tertiary Use of and industry New industry industry renewable Social Production/logi PPP for contribution agri
Slide 59: Status of Non-Farmers with Land Ownership (Joso City)
6th sector industrialization of agriculture Status of Non-Farmers with Land Ownership (Joso City, Ibaraki Prefecture) Up to 40s ～40歳代 4% Areas around Ken-O Expressway Joso Interchange 80+ 50s 50歳代 80歳以上 Number of land owners: about 100 21% 31% 事業対象地域 About 80% are aged 60 or above Project Area
Slide 60: Collaborate with Municipal Government on Regional Revitalization Project
6th sector industrialization of agriculture Collaborate with Municipal Government on Regional Revitalization Project to Resolve Regional Issues Issues for Joso City Agriscience valley concept Expected effect Promote Secure new production area Agricultural agriculture farmers Large facility horticult
Slide 61: Regional Contribution through New City Development
6th sector industrialization of agriculture Regional Contribution through New City Development Employment creation: about 2,000 (estimate) Distribution warehouse (investment business) Tax revenue: About 500 million yen in Fixed Property Tax (estimate) Tourist farm zone Distribution warehouse Urban p