47 slides from Toa Corporation (construction)'s earnings presentation, May 20, 2025
Slide 1: FY2024 Financial Results Briefing Material
FY2024 Financial Results Briefing Material May 20, 2025 President and Representative Director Takeshi Hayakawa Head of Corporate Management General Headquarters Takeshi Nakao
Slide 2: Agenda
Agenda 1. FY2024 Results and FY2025 Forecasts 2. Progress of the Medium-Term Management Plan 3. Action Plan to Improve Price-to-Book Ratio 2025 TOA CORPORATION
Slide 3: Summary of FY2024 Financial Results
Summary of FY2024 Financial Results ✓ Increased in sales and profits for two consecutive terms. ✓ Orders received (non-consolidated), operating profit (consolidated), and ordinary profit (consolidated) reached new record highs. ✓ ROE increased along with net income growth. Orders received (Non-conso
Slide 4: FY2024 Financial Results
FY2024 Financial Results Orders received (non-consolidated) : Orders for Overseas were significantly higher than the previous year, resulting in a record-high overall. Net sales (consolidated) : Large projects progressed steadily in Domestic Civil Engineering, Domestic Building Construction, and Ove
Slide 5: [Non-consolidated] Breakdown of Orders Received by Business
[Non-consolidated] Breakdown of Orders Received by Business (Unit: billions of yen) FY2023 FY2024 Orders received Previous forecast Change vs. previous Actual Actual YoY change % YoY difference (Feb. 2025) (Feb. 2025) Public 128.7 101.7 (20.9%) (26.9) 85.0 16.7 Private 24.7 35.4 43.1% 10.6 34.0 1.4
Slide 6: [Non-consolidated] Breakdown of Net Sales and Gross Profit by Business
[Non-consolidated] Breakdown of Net Sales and Gross Profit by Business (Unit: billions of yen) FY2023 FY2024 Net Sales: 317.8 billion yen (YoY +17.3%) Previous Change vs. Net sales YoY Domestic civil engineering: 137.3 billion yen Actual % of total Actual % of total YoY change % forecast previous di
Slide 7: Analysis of Increase/Decrease in Gross Profit (Non-consolidated) for FY2024
Analysis of Increase/Decrease in Gross Profit (Non-consolidated) for FY2024 © 2025 TOA CORPORATION All rights reserved. 6
Slide 8: Consolidated Balance Sheets
Consolidated Balance Sheets Total assets Total liabilities and net assets (Unit: billions of yen) (Unit: billions of yen) 350.0 350.0 272.9 298.9 272.9 298.9 300.0 300.0 250.0 250.0 170.5 200.0 200.0 161.2 150.0 214.0 242.6 150.0 20.5 100.0 100.0 14.9 50.0 50.0 96.7 107.8 34.8 32.7 23.3 22.8 0.0 0.0
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows Operating CF : Decreased due to increase in trade receivables and decrease in advances received on construction contracts in progress, etc. Investment CF : Increased due to proceeds from sales of investment securities, despite purchase of property, plant and equipment, etc. F
Slide 10: Summary of FY2025 Forecasts
Summary of FY2025 Forecasts ✓ Net sales are expected to increase slightly through steady progress of constructions on hand (non-consolidated) of 512.9 billion yen. ✓ Gross profit, operating profit, and profit are expected to decrease at the beginning of the term. However, we will work together to fu
Slide 11: FY2025 Forecast
FY2025 Forecast Orders received (non-consolidated) : Although the market environment is extremely favorable due to such factors as the initiatives to build up national resilience and increased in defense-related expenditure, orders received will decrease as priority is placed on completing abundant
Slide 12: [Non-consolidated] Forecast of Orders Received by Business
[Non-consolidated] Forecast of Orders Received by Business (Unit: billions of yen) FY2024 FY2025 Orders received Actual Forecast YoY change % YoY difference Orders received: 230.0 billion yen (YoY -35.0%) Public 101.7 69.0 (32.2%) (32.7) Domestic Civil Engineering ：107.0 billion yen (YoY -22.0%) Pri
Slide 13: [Non-consolidated] Forecast of Net Sales and Gross Profit by Business
[Non-consolidated] Forecast of Net Sales and Gross Profit by Business (Unit: billions of yen) FY2024 FY2025 Net sales Actual % of net sales Foreast % of net sales YoY change YoY difference Domestic civil engineering 137.3 43.2% 154.0 48.1% 12.1% 16.6 Domestic building construction 108.9 34.3% 86.5 2
Slide 14: Agenda
Agenda 1. FY2024 Results and FY2025 Forecasts 2. Progress of the Medium-Term Management Plan 3. Action Plan to Improve Price-to-Book Ratio 2025 TOA CORPORATION
Slide 15: Basic Policies of the Medium-Term Management Plan (Repeated)
Basic Policies of the Medium-Term Management Plan (Repeated) Along with advancing the existing business, accelerate the expansion of business domains and further strengthen the management base to realize our long-term vision. In addition, strengthen the management base to support business strategies
Slide 16: Progress of Integration of Business and Human Resource Strategies
Progress of Integration of Business and Human Resource strategies Improve ROE ✓Acquisition of human resources steady progress beyond the plan. ✓ Steadily increase operating profit by enhancing construction capacity while further improving the quantity and quality of human resources. ✓ The target ope
Slide 17: Domestic Civil Engineering (1) Government Budget Trends
Domestic Civil Engineering (1) Government Budget Trends ✓ The budget of the MLIT Ports and Harbours Bureau remained at a high level due to the Five-Year Acceleration Plan for Disaster Prevention, Mitigation, and National Resilience. ✓ Defense-related budgets have also increased significantly, indica
Slide 18: Domestic Civil Engineering (2) Strengthening Initiatives in Offshore Wind Power
Domestic Civil Engineering (2) Strengthening Initiatives in Offshore Wind Power ✓ Participating in offshore wind power construction projects, both fixed-bottom and floating types. ✓ With regard to floating type, our project was adopted as a Green Innovation Fund Project by the New Energy and Industr
Slide 19: Domestic Building Construction (1) Large-Scale Logistics Facilities with High Productivity
Domestic Building Construction (1) Large-Scale Logistics Facilities with High Productivity ✓ Demand for large-scale logistics warehouse projects with high productivity (construction completed per person) is strong. ✓ By coordinating civil engineering and building construction for smooth progress, we
Slide 20: Domestic Building Construction (2) Government Budget Trends
Domestic Building Construction (2) Government Budget Trends ✓ As defense-related facilities age, an increase in demand for renewal, new construction, and renovation of existing facilities is expected. ✓ We will promote the further diversification of business fields by targeting defense-related proje
Slide 21: Overseas: Securing a Significant Amount of Business and Expanding Our Business Domain
Overseas: Securing a Significant Amount of Business and Expanding Our Business Domain ✓ We will steadily secure the extensive civil engineering projects available in areas such as Singapore and through ODA. ✓ We are promoting localization to participate in building construction projects funded by lo
Slide 22: Enhancing the Quantity and Quality of Human Resources
Enhancing the Quantity and Quality of Human Resources [Quantity secured] Both new graduates and mid-career hires are being recruited as planned. Furthermore, by suppressing turnover, we have been able to secure more employees than planned. [Quality improvement] While employees in 20s currently accou
Slide 23: Integration of Business and Human Resource Strategies: Current Investment Plan
Integration of Business and Human Resource Strategies Current Investment Plan Improve ROE ✓ During the period of this medium-term management plan, we are aiming for the integration of our business and human resource strategies to realize our long-term vision, focusing on expanding operating profit b
Slide 24: Agenda
Agenda 1. FY2024 Results and FY2025 Forecasts 2. Progress of the Medium-Term Management Plan 3. Action Plan to Improve Price-to-Book Ratio 2025 TOA CORPORATION
Slide 25: Review (Stock Price Trend/PBR Trend)
Review (Stock Price Trend/PBR Trend) ✓ On May 12, 2023, we disclosed the “Action Plan to Improve Price-to-Book Ratio,” and although PBR exceeded 1:1 at the end of FY2023, it ended up slightly below 1:1 at the end of FY2024. ✓ In April 2025, our stock price also temporarily declined due to the impact
Slide 26: Assessment of Current Situation
Assessment of Current Situation ✓ Amid the favorable management environment, despite continuously achieving an ROE of 10% or more, which exceeds the cost of shareholders’ equity as recognized by the Company (approx. 7%). ✓ However, there is a major gap between its capital efficiency and earning powe
Slide 27: Review of Action Plan for PBR Improvement
Review of Action Plan for PBR Improvement 1. Steadily improve operating profit while enhancing the quantity and quality of human resources 2. Balance sheet review (further enhancement of shareholder returns, reduction of policy shareholdings) 3. Further strengthening of IR activities 26
Slide 28: Review of Cash Flow Allocation
Review of Cash Flow Allocation Improve ROE ✓ Operating profit has grown significantly more than anticipated from when the medium-term management plan was formulated, and we are reviewing the cash flow allocation. ✓ We are planning to clearly state the balance between growth investment and shareholde
Slide 29: Shareholder Returns
Shareholder Returns Improve ROE ✓ Policy ： Ensure a dividend payout ratio of 40% or more. Also we aim to achieve a total return ratio of approximately 70% for the three-year cumulative period from FY2023 to FY2025. ✓ Dividends ： For FY2025, we plan a dividend of 76 yen per share. We plan to introduc
Slide 30: Reduction of Cross-Shareholdings
Reduction of Cross-Shareholdings Improve ROE ✓ We will further advance the reduction of cross-shareholdings, aiming to reduce the amount of cross-shareholdings (excluding deemed holdings) to less than 10% of consolidated net assets by the end of FY2025 and thereby improve capital efficiency. Amount
Slide 31: Organizational Restructuring to Strengthen IR Activities
Organizational Restructuring to Strengthen IR Activities Improve PER ✓ We have newly established the Corporate Communication Department to further strengthen IR activities. ✓ The Corporate Communication Department will consolidate and increase personnel experienced in SR/IR and those capable of hand
Slide 32: Initiatives to Improve Recognition Among Domestic and Overseas Investors
Initiatives to Improve Recognition Among Domestic and Overseas Investors Improve PER ✓ The background to our PER remaining at a sluggish, single-digit level is considered to be influenced not only by doubts about future growth potential but also by the low recognition level among domestic and overse
Slide 33: Review of Measures Through Constructive Dialog With Capital Markets
Review of Measures Through Constructive Dialog With Capital Markets Improve PER ✓ In FY2024, we held 77 dialogs with shareholders and investors. ✓ Although this number has steadily increased compared to FY2022 and FY2023, we have newly established the Corporate Communication Department with increase
Slide 34: References
References FY2024 Major Completed Projects and Orders Received Date Book
Slide 35: Major Completed Projects (Domestic Civil Engineering)
Major Completed Projects (Domestic Civil Engineering) Construction of Piers (−18 m) at the Yokohama Port Shinhonmoku District (Part 2) Construction period Outline of construction work October 2023 to January 2025 As part of the Yokohama Port international marine container terminal restructuring and
Slide 36: Major Completed Projects (Domestic Building Construction)
Major Completed Projects (Domestic Building Construction) (Tentative Name) Kawaguchi City Yahei Logistics Facility Plan (New Construction) Construction period Outline of construction work July 2023 to December 2024 Located in Kawaguchi City, Saitama Prefecture, this logistics warehouse has an RCS +
Slide 37: Major Completed Projects (Domestic Building Construction)
Major Completed Projects (Domestic Building Construction) (Tentative Name) Hiratsuka City School Catering Center Development and Operation Project Construction period Outline of construction work January 2023 to June 2024 To help solve issues such as the commencement of full catering service at juni
Slide 38: Major Completed Projects (Overseas)
Major Completed Projects (Overseas) Package WD-1: Jamuna Rail Bridge Project, Eastern Part of Civil Works *The name of the construction project has been changed from the previous one. The previous name of the construction project: Package WD-1: Bangabandhu Sheikh Mujib Railway Bridge Construction Pr
Slide 39: List of Major Orders Received
List of Major Orders Received Construction period Segment Project name Client name Formation (from the first to the last) Kanto Regional Development Bureau, FY2024 Offshore Soil Improvement, Including Yokohama Port Shinhonmoku District Partition Weir Ministry of Land, Infrastructure, JV Jun. 2024 ～
Slide 40: [Non-consolidated] Transition of Orders Received, Net sales, and Constructions on Hand
[Non-consolidated] Transition of Orders Received, Net sales, and Constructions on Hand Domestic Civil Engineering (Unit: billions of yen) Orders received Net sales Constructions on hand 191.4 191.3 200.0 171.9 146.4 153.4 150.0 134.0 137.2 137.3 124.2 124.7 124.8 106.6 106.5 99.3 92.1 100.0 50.0 0.0
Slide 41: [Non-consolidated] Orders Received Over the Past Five Years by Business
[Non-consolidated] Orders Received Over the Past Five Years by Business (Unit: billions of yen) Orders Received FY2020 FY2021 FY2022 FY2023 FY2024 Construction Marine civil engineering 70.1 58.0 122.4 97.4 95.9 Type On land civil engineering 54.0 48.5 24.0 56.0 41.2 Public 91.3 79.7 126.5 128.7 101.
Slide 42: Consolidated Number of Employees
Consolidated Number of Employees (Unit: person) Civil engineering Building construction Overseas Other business Common 2,052 1,877 1,945 2,000 1,810 1,848 111 102 82 99 262 79 262 287 295 284 146 1,500 123 112 116 118 491 461 403 412 426 1,000 500 1,042 923 947 952 997 0 FY2020 FY2021 FY2022 FY2023
Slide 43: Information on Consolidated Subsidiaries (Building Construction, Real Estate and Other Business)
Information on Consolidated Subsidiaries (Building Construction, Real Estate and Other Business) *Number of employees includes board of directors and executive officers. (Unit: millions of yen, persons) (Unit: millions of yen, persons) FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 F
Slide 44: Information on Consolidated Subsidiaries (PFI Business)
Information on Consolidated Subsidiaries (PFI Business) *Number of employees includes board of directors and executive officers. (Unit: millions of yen, persons) (Unit: millions of yen, persons) FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 ■ PFI Funeral Hall Management Co.,
Slide 45: Capital Investments, Research and Development Costs, and Depreciation Expenses and Number of Employees
Capital Investments, Research and Development Costs, and Depreciation Expenses and Number of Employees FY2025 FY2020 FY2021 FY2022 FY2023 FY2024 （plan） ■ Capital investments (Unit: millions of yen) Consolidated 7,039 2,389 3,434 2,948 1,568 2,700 Non-consolidated 6,782 2,190 2,970 2,485 814 2,000 *W
Slide 46: Matters Related to Shares (as of March 31, 2025)
Matters Related to Shares (as of March 31, 2025) Total number of shares, etc. Major shareholders (Unit: 1,000 shares) Total number of shares issued 87,978,516 Number of Percentage of Shareholder’s name shares owned shares owned Number of treasury shares 5,725,660 The Master Trust Bank of Japan, Ltd.
Slide 47: Contact
Contact Shinjuku Park-Tower 31F 3-7-1, Nishi-Shinjuku, Shinjuku-Ku, Tokyo 163-1031, Japan TOA CORPORATION Corporate Management General Headquarters Corporate Communication Dept. TEL :03-6757-3821 https://www.toa-const.co.jp/ir/inquiry/ This document contains predictions based on current assumptions