Slide 1: Results Briefing for the Second Quarter Ended September 30, 2016
Results Briefing for the Second Quarter Ended September 30, 2016 November 14, 2016 TODA CORPORATION 1
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: Today's Schedule
Today’s Schedule 1. Summary of Financial Results Executive Manager Yushi Kikutani 2. Issues and Initiatives President Masanori Imai 3
Slide 4: 1. Summary of Financial Results
1. Summary of Financial Results Executive Manager Yushi Kikutani 4
Slide 5: 1-1. Summary of Financial Results for the First Half
1-1. Summary of Financial Results for the First Half 5
Slide 6: Summary: FY2016 1H
Summary:FY2016 1H (Billions of yen) Apr-Sep FY2016 Apr-Sep FY2015 Forecasts at Change Difference the beginning of the term Actuals (year on year) (vs. forecast) Consolidated net sales 218.4 205.0 204.1 -6.6% -0.8 Operating income 10.9 6.5 12.1 10.4％ 5.6 Ordinary income 11.9 7.5 13.1 9.7% 5.6 Profit
Slide 7: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Narita International Medical New construction of UHW Narita Hospital, Construction City Organization International University of Health And Welfare Tokyo Metropolitan Housing Kosha Heim Mukaihara (3rd Phase) construction, Supply Corpo
Slide 8: Main Works Completed (Architectural Construction)
Main Works Completed (Architectural Construction) *Project names are abbreviation Construction work for Dazaifu City’s Kenseikai new gymnasium and composite facility, New plan for Tachikawa Sogo Hospital Dazaifu City Fukuoka Prefecture 8
Slide 9: Main Works Completed (Civil Engineering)
Main Works Completed (Civil Engineering) Japan National Highway 45, Upgrading of Hirama regulating reservoir Yamada No.1 tunnel work Tohoku Regional Development Bureau, Water and Wastewater Works Bureau, Ministry of Land, Infrastructure and Transport Kawasaki City, Kanagawa Prefecture 9
Slide 10: 1-2. Details of Financial Results
1-2. Details of Financial Results 10
Slide 11: Construction (Consolidated) Toda Group
(Consolidated) Toda Group 15 Business Subsidiaries in Japan Overseas Subsidiaries companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Chiyoda Kenkou Co., Ltd. Toda Construction (Shanghai) Co., Ltd. Construction Architectural 8 Construction Thai Toda Corporation Ltd. companies Toda Vi
Slide 12: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance Apr-Sep FY2016 Toda Corporation Subsidiaries total Consolidated Ratio of consolidated to non- Billions of yen ％ ％ ％ consolidated Net sales 192.9 18.2 204.1 1.06 Gross profit 23.4 12.1 1.7 9.4 25.0 12.3 1.07 Selling, general and administrative expenses 11.5
Slide 13: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets (Billions of yen) (Billions of yen) Assets Liabilities and Net Assets 548.7 548.7 -43.7 -43.7 504.9 504.9 Construction related liabilities Current -44.2 Provision for loss on Current construction contracts ＋1.0 Current liabilities assets Current Short-term loans +1.0 li
Slide 14: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei Stock Average (Billions of yen) Stock prices（yen） 250 19,206 20,000 16,758 16,449 200 14,827 185.5 15,000 154.8 147.5 146.7 150 110.3 Valuation 10,000 70.4 79.2 difference 100 70.6 5,000 50 Book value 77.1 75.2 75.
Slide 15: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities Short-term Long-term, corporate bonds (Billions of yen) 79.7 77.9 65.5 66.3 13.2 45.1 42.3 33.7 52.3 32.5 34.5 35.6 Mar 2014 Mar 2015 Mar 2016 Sep 2016 D/E Ratio 14.7％ 0.48x 0.37x 0.45x 0.43x 15
Slide 16: (Consolidated) Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts Architectural construction Civil Engineering (Billions of yen) 15.5 2.1 7.6 13.4 [系列名] ＋1.0 2.6 3.4 [系列名] 2.4 5.0 1.4 2.9 1.0 0.5 Mar 2014 Mar 2015 Mar 2016 Sep 2016 16
Slide 17: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) ＋13.8 68.5 54.6 Income before income taxes 13.0 Notes and accounts receivable – trade 54.2 Cash and cash Cash and cash Costs on uncompleted construction contracts -4.2 equivalents equivalents Notes and accounts payable -trade -44.1 at end of at
Slide 18: 1-3. Performance Forecasts
1-3. Performance Forecasts 18
Slide 19: Forecasts for FY2016 (Year Ending March 31, 2017)
Forecasts for FY2016 (Year Ending March 31, 2017) FY2016 FY2015 Change Forecasts （Billions of yen) (year-on-year) Consolidated net 492.6 430.0 -12.7% -62.6 sales Operating income 21.6 20.0 -7.5％ -1.6 Ordinary income 23.7 22.0 -7.3％ -1.7 Profit attributable to owners of parent 20.0 19.0 -5.2％ -1.0 Or
Slide 20: (Non-consolidated) Forecasts for the Construction Business
(Non-consolidated) Forecasts for the Construction Business （Billions of yen, including overseas) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts 455.5 440.0 （％） 412.8 400.0 Archit 93.2 90.0 Civil ectural 103.6 Civ
Slide 21: Non-consolidated Forecasts for FY2016
Non-consolidated Forecasts for FY2016 Amount（Billions of yen） Profitability（％） Net sales 404.5 Gross profit 44.0 10.9 Profits in the construction business 42.5 10.6 [Architectural construction] [33.5] [11.2] [Civil engineering] [9.0] [9.0] Profits in the real estate business 1.5 33.3 Selling, genera
Slide 22: 2. Issues and Initiatives
2. Issues and Initiatives President Masanori Imai 22
Slide 23: 2-1. Forecast by Business
2-1. Forecast by Business 23
Slide 24: Net Sales by Business
Net Sales by Business (Strategic businesses) ¥492.6 billion ¥430.0 billion ¥480.0 billion Group companies (Japan) 34.5 Overseas 40.0 13.8 Investment & 7.9 33.0 20.0 development 10.0 5.0 Civil 92.0 4.5 engineering 100.0 (Japan) 99.2 Architectural 361.4 construction 298.8 330.0 (Japan) FY2015 FY2016 (
Slide 25: Changes in Operating Income (vs. Initial Forecast)
Changes in Operating Income (vs. Initial Forecast) Achievement of the medium term goal of ¥20.0 billion is within reach (Strategic businesses) Architectural Civil Group engineering Investment & construction Overseas companies (Japan) development (Japan) (Japan) Medium-term goal (FY2017) ¥20.0 billio
Slide 26: Operating Income (Domestic Construction Business)
Operating Income Initial forecast (Domestic Construction Business) Revised forecast Architectural construction Civil engineering (Japan) (Japan) 16.9 17.9 ［5.7％］ Medium-term Medium-term ［5.0％］ 4.0 goal goal ¥14.0 billion ¥4.5billion 14.0 ［4.1％］ ［4.5％］ 3.7 (billion yen) ［4.0％］ 3.4 ［3.5％］ FY2015 FY201
Slide 27: Operating Income (Strategic Businesses)
Operating Income Initial forecast (Strategic Businesses) Revised forecast Investment & Group companies Overseas development （Japan） (Billion yen) Medium-term goal ¥0.5 billion 1.4 0.2 ［4.1％］ Medium-term goal ［6.1％］ ¥0.2 billion 1.1 -0.7 Medium-term ［3.2％］ goal ¥0.8 billion 0.1 ［2.2％］ 0.6 -1.3 -1.3 ［
Slide 28: Recognition of Issues
Recognition of Issues Domestic Construction Strategic businesses Business •Promote enhancement of •Initiatives for profitability values and strengths that enhancement are still enables differentiation. halfway through. •While profitability of some •Steady progress in projects worsened, the rest of d
Slide 29: 2-2. Direction of Initiatives
2-2. Direction of Initiatives 29
Slide 30: Process for Achieving Continuous Growth
Process for Achieving Continuous Growth Steady construction Decline in Intensified investment investment competition Labor productivity = Increased added value (Change in construction Make strategic investment) businesses profitable Investment development, add manpower overseas and at group companie
Slide 31: Construction Innovation
Innovation in Construction Technologies for improving Productivity Construction Innovation Dismantling Underground Above-ground Construction Construction work work management system we aspire to achieve Improvement of TO-ZERO system construction efficiency with Improvement of construction vertical c
Slide 32: Improvement of Labor Productivity
Improvement of Labor Productivity Labor productivity (non-consolidated basis) 14.55 14.10 Medium-term goal ¥13.2 million 11.54 Further improvement in net sales and profits per employee through (million yen) energy saving and labor saving FY2014 FY2015 FY2016 (forecast) *Labor productivity = Operatin
Slide 33: Case Study: New Construction of MFLP Fukuoka Sue
Case Study: New Construction of MFLP Fukuoka Sue Effective utilization of the plot of our machinery and equipment center Achieved 33% productivity improvement through complete front loading. *Completion on October 31, 2016 (design work, workshop and partnering company operations) 33
Slide 34: Strengthening of Strategic Businesses
Strengthening of Strategic Businesses Promoting flexible use of human resources reflecting business expansion Investment & Overseas Group companies development (Japan) Promoting Kyobashi 1- Expansion of overseas Expansion of each chome project civil engineering works company’s business Commercializa
Slide 35: Capital Efficiency, Shareholder Returns
Capital Efficiency, Shareholder Returns ROE (return on equity) Dividend per share, payout ratio Dividend per share Payout ratio Medium-term goal: 19.4 11.3 20% to 30% 10.8 15.4 15.3 （％） (yen, ） 8.8 12.0 10.0 % 8% or more in the long term 7.0 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 (forecast) (fore
Slide 36: Promoting Social Contribution Activities
Promoting Social Contribution Activities Top rating in climate change mitigation measures Photo: Hoichi Nishiyama Floating offshore wind Fuel-cell boat turbine generator At The Climate A List 2016, 193 companies around the world including 22 from Japan were certified as especially outstanding compan
Slide 37: For the Next Leap
For the Next Leap Evolve initiatives to realize continuous growth FY2015 FY2016 FY2017 FY2018 onwards Consolidated net sales ¥480.0 bln Operating income ¥20.0 bln [4.2％] Labor productivity ¥13.20 mil No. 1 in Productivity (revised earnings targets: formulated in April 2016) Foundation for Consolidat
Slide 38: A corporate group that makes Your success possible
A corporate group that makes Your success possible 38