Toda Corporation · TSE:1860
Toda — FY2023 Earnings Presentation
52 slides from Toda's earnings presentation, May 22, 2024
Slide 1: Results Briefing for the Year ended March 31, 2024
Results Briefing for the Year ended March 31, 2024 May 22, 2024 TODA CORPORATION 1
Slide 2: Forward-looking statements
This material contains forward-looking statements regarding TODA CORPORATION and the Group’s business plans, strategies, and earnings forecasts. These statements are TODA CORPORATION’s forecasts based on currently available information and may involve potential risks and uncertainties. The actual re
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: FY2023 Financial Highlights (Consolidated)
FY2023 Financial Highlights (Consolidated) Consolidated net sales FY2022 FY2023 Change FY2024 ¥522.4 bil (-4.5％ YoY) (Billions of yen) (YoY) (Forecasts) ︓ Net sales decreased 4.5% YoY to ¥522.4 Consolidated net 547.1 522.4 600.0 -4.5％ bil, mainly due to lower sales in the sales domestic architectu
Slide 6: [Consolidated] Results by Segment
[Consolidated] Results by Segment （Billions of yen） Domestic Domestic Overseas Architectural Civil Investment Environment FY2023 Construction Engineering and Group Group and Energy Elimination Total Companies Companies Development Net sales 325.5 119.9 23.2 53.7 48.8 1.3 -50.3 522.4 Operating 6.5 7.
Slide 7: Construction Business: Major Orders Received
Construction Business: Major Orders Received Ordering Parties Name of Works Toranomon 1-chome East Area Construction of New Facility Building for Toranomon 1- Architectural Urban Redevelopment chome East Area Urban Redevelopment Project Association Construction MITSUBISHI ESTATE CO., LTD. Dogenzaka
Slide 8: Construction Business: Major Carryover Works
Construction Business: Major Carryover Works Ordering Parties Name of Works St. Marianna University School of St. Marianna University School of Medicine Sugao Architectural Medicine Campus Renewal Plan Construction Maishima Development SPC (Tentative name) DPL Osaka Maishima New Construction Work JA
Slide 9: [Non-consolidated] Carryover Works
[Non-consolidated] Carryover Works （Billions of yen） The amount carried over to the next 738.5 718.6 818.9 fiscal year increased from the previous fiscal year. Overseas 3.6 0.5 1.7 In the domestic construction business, Civil both public and private sector Engineering construction increased, res
Slide 10: 1-1. Details of Financial Results
１-1．Details of Financial Results 10
Slide 11: [Consolidated] Overview of TODA Group
Domestic Subsidiaries [Consolidated] Overview of TODA Group Overseas Subsidiaries Environment & Energy Business Domestic Subsidiaries Overseas Subsidiaries 43 companies APEC Engineering Co., Ltd. PT Tatamulia Nusantara Indah Chiyoda Kenkou Co., Ltd. Thai Toda Corporation Ltd. Construction Toda Road
Slide 12: [Consolidated] Balance Sheets (Assets)
[Consolidated] Balance Sheets Major variable factors Assets (Billions of yen) Current Assets -9.6 +56.5 872.0 Cash and deposits +16.9 815.5 Accounts receivable Real estate for sale -60.2 +20.2 Non-current assets +32.4 -9.6 Current Current Assets Buildings and structures -7.1 Assets 421.9 431.5 Mac
Slide 13: [Consolidated] Balance Sheets (Liabilities and Net Assets)
[Consolidated] Balance Sheets Major variable factors Liabilities and Net Assets (Billions of yen) Current liabilities -14.5 +56.5 Notes and account payable-trade -14.1 872.0 Short-term loans payable -7.4 815.5 Corporate bonds redeemable -5.0 Current within one year Current liabilities Advances rec
Slide 14: [Non-consolidated] Cross-Shareholdings
[Non-consolidated] Cross-Shareholdings Number of stocks The balance of cross-shareholdings 161 160 is being reduced to secure financing 159 for investments in growth. At least ¥30 bil worth of cross- shareholdings to be sold over three (Billions of yen) years (FY2022 – FY2024) 181.8 * Market val
Slide 15: [Consolidated] Interest-Bearing Liabilities
[Consolidated] Interest-Bearing Liabilities （Billions of yen） 290.0 During FY2023, interest- bearing liabilities increased by ¥15.0 bil due to ¥7.4 bil 226.5 decrease in short-term loans 211.5 payable, while corporate bonds 179.3 and long-term loans increased Long by ¥7.9 bil and ¥14.5 bil respect
Slide 16: [Consolidated] Provision for Loss on Construction Contracts
[Consolidated] Provision for Loss on Construction Contracts （Billions of yen） 9.43 Overseas Provision for loss on construction contracts 0.05 Civil -¥5.37 bil (YoY) -¥5.37 bil Engineering 2.89 Major variable factor: In the domestic construction business, provision for loss on 4.06 construction c
Slide 17: [Consolidated] Selling, General and Administrative Expenses
[Consolidated] Selling, General and Administrative Expenses FY2023: SG&A Ratio On non-consolidated basis, the expenses increased by ¥2.2 bil, 9.1% mainly due to increase in technology R&D and digitalization costs. 7.9% 8.2% In addition to the above factors, Consolidated Consolidated on consolidate
Slide 18: [Consolidated] Cashflow
[Consolidated] Cashflow Net increase (decrease) in cash and cash equivalents (Mar 2023 to Mar 2024) +17.2 Operating CF +62.1 Inv CF -48.8 Financial CF +1.0 （Billions of yen） +61.9 -8.7 -15.0 -4.3 +28.2 +17.8 +14.8 +2.9 113.1 -8.5 95.8 -11.6 -5.0 -0.3 -55.0 March before Income tax Costs on real estat
Slide 19: 1-2. Earnings Forecasts
１-２．Earnings Forecasts 19
Slide 20: [Consolidated] FY2024 Earnings Forecasts
[Consolidated] FY2024 Earnings Forecasts （Billions of yen） FY2024 FY2023 Forecasts Change (YoY) Consolidated net sales 522.4 600.0 +14.8% +77.5 Operating income 17.9 30.0 +67.5% +12.0 Ordinary income 25.4 35.5 +39.3％ +10.0 Net income attributable to 16.1 27.0 +67.7% +10.8 owners of parent Orders rec
Slide 21: [Non-consolidated] FY2024 Earnings Forecasts
[Non-consolidated] FY2024 Earnings Forecasts Amount Profit margin (¥bil） (%) Net sales 475.0 Gross profit 55.5 11.7 Profit from construction business 50.0 11.5 [Domestic architectural construction] 29.8 9.8 [Domestic civil engineering] 19.9 15.4 [Overseas] 0.1 8.6 Profit from investment and developm
Slide 22: [Non-consolidated] Earnings Forecasts for Construction Business
[Non-consolidated] Earnings Forecasts for Construction Business Orders Received for Net Sales of Completed Gross Profit Margin on Construction Construction Contracts Completed Construction 700.0 （Billions of yen） 700.0 （Billions of yen） Contracts (%) Civil Engineering 500.7 500.0 600.0 600.0 16.1 2.
Slide 23: 2. Progress of the Management Plan
2．Progress of the Management Plan President and Representative Director Seisuke Otani 23
Slide 24: Basic Policy of the Medium-term Business Plan - Rolling Plan
Basic Policy of the Medium-term Business Plan - Rolling Plan Realizing Strengthening Future Vision the business CX150 portfolio Through the realization of Future To strengthen the business portfolio, we Vision CX150, we aim to provide are promoting growth investments such value that is truly recogni
Slide 25: Priority Management
Strategic Scenario Continue to drive priority management businesses to contribute to earnings in fiscal 2025 and beyond Phase2 Phase3 Phase1 150th Realization of Access to sources of value society of collaborative Anniversary Value reconstruction creation Fiscal year 2022 2023 2024 - 2027 - 2030 203
Slide 26: Forecasts and Results
Forecasts and Results FY2022 FY2023 FY2024 Medium-term Management Actual Actual Forecasts Plan Target (May 17, 2022) Consolidated net sales 547.1 522.4 600.0 600.0 ¥ bil Profitability Operating income 14.1 17.9 30.0 33.0 ¥ bil Operating margin 2.6 3.4 5.0 5.5 ％ Net income attributable Capital to own
Slide 27: Results by Segment
Results by Segment FY2022 FY2023 FY2024 Consolidated net sales Actual Actual Forecasts Medium-term Management Plan Target Architectural Construction 332.4 325.5 350.0 350.0 ¥bil Civil Engineering 141.6 119.9 135.0 145.0 ¥bil Investment and Development/ 21.0 24.6 45.5 30.0 ¥bil Strategic Green Transf
Slide 28: Medium-term Management Plan Variance Analysis (Operating Income)
Medium-term Management Plan Variance Analysis (Operating Income） Global business drives overall revenue Investments in human capital and technology development increased Gross Profit General Administrative Expenses Gross Profit • The construction business Global has been affected by the Personnel
Slide 29: Non-financial Business Objectives
Non-financial Business Objectives FY2022 FY2023 Medium-term Quantitative evaluation indicators Actual/ Management Plan Actual Forecasts Target (FY2024) E CO2 emissions Reduction rate （vs FY2020） -14.5 （-30.6） -16.8 % or more Scope 1+2 Basic unit (per 100 million yen） 13.6 （12.9） 11.2 t-CO2 or less C
Slide 30: Understanding the Challenges and Direction of the Strategy
Understanding the Challenges and Direction of the Strategy Ordering strategy that emphasizes brand value and profitability in the business Core Strengthening the ability to manage costs and securing the labor force for facility construction and other works Businesses Dealing with the 2024 prob
Slide 31: Core Businesses
Core Businesses 31
Slide 32: Market Environment (Construction Investment)
Construction Market Environment (Construction Investment) Business Construction investment rises in nominal terms but remains flat in real terms Construction Investment Construction Investment （Nominal values) （Real terms) (Trillions of yen) Forecasts (Trillions of yen) 80 72.4 74.4 80 66.4 67.8 68.
Slide 33: Market Environment: Orders Received by Major Construction Companies
Construction Market Environment (Construction Investment) Business Orders received by major construction companies are increasing in both nominal and real terms Trends in orders received Trends in orders received by major construction companies (Nominal) by major construction companies (Real value e
Slide 34: Market Environment (Construction Cost)
Construction Market Environment (Construction Cost) Business Rising construction costs (materials, labor, equipment, etc.) remain a concern Construction Materials Price Index Unit labor cost for public works design (Tokyo, based on 2015) (Nationwide, weighted average of all occupations) 140 137.7 15
Slide 35: Carryover Works (Architectural Construction)
Construction Carryover Works (Architectural Construction) Business FY2022 Others 2.2 FY2023 Stores 2.5 Others ［¥3.7 bil］ Redevelopment Others 1.9 Accommodations 0.7 4.0 ［¥15.3 bil］2.9 Stores Others 2.5 Factories Housing ［¥14.6 bil］ and power Offices and 3.6 3.3 plants 7.9 government Accommodations b
Slide 36: Carryover Works (Civil Engineering)
Construction Carryover Works (Civil Engineering) Business FY2022 FY2023 Erosion and flood Others 9.8 control 1.5 Others 8.3 Erosion and flood control 2.8 Land development Land 5.5 development Roads ［¥15.3 bil］ Roads 35.1 4.2 Renewable 43.0 ［¥101.5 bil］ Carryover ［¥120.1 bil］ ［¥12.0 bil］ energy Carry
Slide 37: Investment Plan
Investment Plan Implementing growth investments to enhance corporate value over the medium to long term 3 Year Medium-term FY2002 FY2023 FY2024 Forecasts Management Plan Actual Actual Plan (FY2022-2024) (FY2022 - 2024) Real Estate Development 28.3 66.8 71.0 166.1 160.0 ¥bil （New TODA BLDG: 60.0） Inv
Slide 38: Capital Allocation
Capital Allocation Medium-term Management Plan Forecasts （FY2022 – FY2024 Cumulative） （FY2022 – FY2024 Cumulative） Interest-bearing Income taxes etc Income taxes etc debt increased Interest-bearing D/E Ratio Investment Plan debt increased Investment Plan 0.8 or below 0.8倍 以下 ¥225.0 bil ¥254.0 bil Sa
Slide 39: Investments for Growth
Investments for Growth Expansion of investment scale in real Major investment plans for FY2024 estate development business Spa facility (under construction) Amount Invested and Recovered (by fiscal year) ¥bil M&A 90.8 91.5 Environment & energy 24.0 20.5 Real estate development Incl. 25.0 for New TOD
Slide 40: Investment in Intangible Assets
Investment in Intangible Assets Initiatives to improve productivity through technology R&D and digitalization Major Technology R&D Projects in FY2023 (press releases) Intangible asset Digitalization investment Technology R&D Expanded application of the “Muscat H Method®” to demolition work for radia
Slide 41: Priority Management Businesses
Priority Management Businesses - New TODA BUILDING - Overseas Business - Renewable Energy Business (Offshore Wind Power Generation) 41
Slide 42: New TODA BUILDING
Priority New TODA BUILDING Management Projects Expanding the value potential of TODA BUILDING in various directions Grand Opening scheduled Town planning Area management for November 2024 Art & Culture Art business TODA BUILDING Disaster Core-wall seismic isolation structure × Prevention and (seismi
Slide 43: New TODA BUILDING
New TODA BUILDING 12F West side (office) 14F Southwest side molded ceiling installation priority construction area Panoramic view of construction site 8F Conference rooms 6F Lobby cafe area steel (May 2, 2024) boarded up staircase installation 43
Slide 44: Deployment of construction technologies in new TODA BUILDING
Deployment of construction technologies in new TODA BUILDING Upper deck Movable fall Shorter Safety 安全性向上 Lifting long objects in tight spaces working floor protection construction （”Gian”, Hoisted load turn improvement period controlling device) Telescopic beam Labor-saving Hoisting machine room 機械
Slide 45: Conceptual Drawings of TODA Museum (tentative name)
Conceptual Drawings of “TODA Museum” (tentative name) * These are finished images from the planning stage. They may differ from the actual completion. Co-creation Area Future Zone (360-degree cylindrical theater) Solution Zone (15m wide Dynamic Vision)） Welcome Zone 45
Slide 46: Overseas Business: Entry into the Oceania region
Overseas Business (expansion of the business portfolio with the entry into the Oceania region) Coherent Hotel Ltd., a hotel company in NZ, consolidated into the Group Kamana Lakehouse Expected finished image of the Singapore-based (Existing Hotel) residence-type building subsidiary (TAP) (exterior
Slide 47: Renewable Energy Business (offshore wind power generation)
Renewable Energy Business (offshore wind power generation) Continue to make steady progress as a front runner in the offshore wind power business 150 th Phase1 Phase2 Phase3 anniversary 2022 2023 2024 - 2027 - 2030 2031 Offshore Wind Power January 2026 (scheduled) Generation Project (floating type
Slide 48: Enhancing Corporate Value
Enhancing Corporate Value 48
Slide 49: Improve ROE
ROE Improvement PBR ＝ ROE × PER * Total assets and equity forecasts for FY2024 are based on FY2023 actuals. Achieve ROE in excess of cost of equity to increase corporate value （recognized at approximately 7-8%） Pursuit of Growth and Earning Power FY24 forecasts ROE Growth strategies and FY23 actual
Slide 50: Shareholder Returns
Shareholder Returns Shareholder return policy based on stable dividends and flexible share buybacks 84.9% 300 Medium-term Management Plan Target for FY2024 76.5% 80.0% 250 DOE (Dividend on Equity): 2.5％ or more Total return (51.7%) 60.0% ratio 200 43.2% Total Rerun Ratio: 40％ or more 40% 40.0% 1
Slide 51: Launch of New Medium-term Management Plan
Launch of New Medium-term Management Plan New Medium-term Management Plan to be announced in May 2025 150th anniversary of Company foundation FY2022 FY2025 FY2027 (2031） Value Management Plan New Medium-term Medium-term Medium-term Management Plan Management Plan to be announced in 2024 – Rolling Pl
Slide 52: nZO” TODA
e nZO” TODA ==::= CORPORATION aa