TODA Group has been working towards strengthening its business portfolio and creating sustainable value based on the “Medium-Term Management Plan 2024 - Rolling Plan” (announced in May 2022, the “2024 Medium-Term Plan”). This plan aims to achieve the “Future Vision CX150” (the “CX150”), with 2024 set as the final fiscal year of the plan.
Under the 2024 Medium-Term Plan, we made growth investments focused on Phase 1 of CX150, “Access to Sources of Value.” These investments included the reconstruction of the new headquarters building, “TODA BUILDING,”; the launch of “Agriscience Valley Joso,” a project aimed at regional revitalization; and the advancement of the “Offshore Wind Power Generation Project off the Coast of Goto City (floating offshore wind power generation business)” to pursue carbon neutrality. These initiatives were driven by our forward-looking vision. While some performance targets were not met, revenue in the construction business entered a recovery trend in the final fiscal year, and we will capitalize on this momentum to drive new growth
In light of these achievements and challenges, we recognize the importance of identifying and leveraging our key strengths to navigate the uncertain business environment ahead and to create the TODA Group’s unique “Distinctive Value.” To achieve high profitability, we will pursue “Vertical Expansion” to enhance the value at sales and construction site offices, along with “Horizontal Expansion” to strengthen collaboration between our construction and strategic businesses. We will also reposition our employees to client-facing roles, increase investments in digital solutions and technology, and enhance capital efficiency to further strengthen our business foundation.
Under this plan, we will move forward with Phase 2 of CX150, “Value Restructuring,” and achieve sustainable growth that meets your expectations, while also enhancing our medium- to long-term corporate value.
1. Basic Policy
- By identifying our key strengths and leveraging them as convergence knowledge, we will create the unique value (distinctive value) of TODA Group that contributes to our competitive advantage.
- We aim to achieve high profitability by providing value at the front lines, such as sales and construction site offices (vertical expansion), and by creating synergies through collaboration between construction and strategic businesses (horizontal expansion).
2. Financial Targets
Alongside revenue growth (+36.4% in net sales and +62.4% in operating income compared to FY2024), we will promote management with a focus on capital efficiency, targeting an ROE of 10.0% or higher.
| FY2024 Actual |
FY2027 Target |
Compared to FY2024 |
|
| Consolidated net sales | 586.6 billion yen | Approx. 800 billion yen | +36.4 % |
| Operating income | 26.6 billion yen | 43.5 billion yen or more | +62.4 % |
| Operating profit margin | 4.6% | 5.4% or higher | +0.8 pt |
| Net income | 25.1 billion yen | 35 billion yen or more | +38.9 % |
| ROE (return on equity) | 7.4% | 10.0% or higher% | +2.6 pt |
| Labor productivity (non-consolidated) |
14.93 million yen | 17.50 million yen or more | +17.2 % |
We will strive to deliver direct shareholder returns by driving medium- to long-term stock price growth, targeting a DOE of at least 3.5%, with a total payout ratio of approximately 70%.
| 2024 Medium-Term Plan |
Medium-Term Management Plan 2027 |
|
| DOE (dividends on equity ratio) | 2.5% or higher | 3.5% or higher |
|---|---|---|
| Total payout ratio | 40.0% or higher | Approx. 70.0% |
* Total payout ratio = Total amount returned to shareholders (Total dividends + Total share buybacks) / Net income attributable to owners of the parent
Medium-Term Management Plan 2027 - Executive Summary（PDF：1.44MB）