February 13, 2012
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TODA CORPORATION
Shunzo Inoue
President and Chief Executive Officer
1860
First Section of Tokyo Stock Exchange andFirst Section of Osaka Securities Exchange
Toshihiro Otomo
Executive Officer and General Manager,
General Affairs Division
Tel.: +81-3-3535-1357

Notice Regarding Posting of Valuation Loss on Real Estate for Sale, Etc.,
and Reversal of Deferred Tax Assets
We hereby announce the prospective posting of significant losses and other items for the fiscal year
ending March 31, 2012 (fiscal year 2011), as described below.
1. Provision for Loss on Construction Contracts
In TODA CORPORATION (the “Company”)’s mainstay construction business, profitability has
increasingly deteriorated owing to intensifying competition with regard to the Company’s efforts toobtain orders. Moreover, the momentum for recovering costs has waned, which has been
considerably affected by deteriorating labor conditions and other factors.
To cope with this harsh reality, the Company has reviewed its cost estimation method and thepotential profitability of its contract backlog. After careful consideration, the Company has decidedto address such factors that could adversely affect profits from construction work undertaken in
fiscal year 2012 and beyond, by increasing the provision for loss on construction contracts byapproximately ¥3.5 billion, which corresponds to the loss estimated to be generated by the end offiscal year 2011. The Company thus intends to improve the profitability of its mainstay construction
business through careful selection of orders to ensure future profits.
2. Valuation Loss on Real Estate for Sale
The Company newly established the Real Estate Division during fiscal year 2011 to improve theprofitability of its real estate business, by enhancing the efficiency of the utilization of real estateholdings through an integrated management structure. The biggest issue of the Company’s real estatebusiness is how to liquidate its long-held properties to raise overall investment efficiency. The
Company has determined that it is essential to take radical measures, in particular, those involving
large-scale housing lots.
To this end, the Company has addressed calculating the value of available-for-sale real estate on
the basis of early sales. As a result, the Company expects to post a valuation loss on real estate forsale (cost of sales in real estate business) of approximately ¥7.3 billion, primarily for large-scale
housing lots. In the future, the Company intends to sell early long-held properties and allocate thefunds obtained therefrom to new investments with the aim of ensuring stable profits.
3. Loss on Valuation of Investment Securities
For the third quarter of fiscal year 2011, the Company posted an approximately ¥3.3 billion loss on
valuation of investment securities, of which approximately ¥2.7 billion accounted for a loss onvaluation due to a significant decline in the asset value of a portion of the preferred investment
certificates related to the real estate business, in which the Company invests. On a full-year basis,
approximately ¥4.0 billion in loss on valuation of investment securities is expected to be recorded
for fiscal year 2011, including loss on valuation of other types of investment securities.

4. Reversal of Deferred Tax Assets in Association with Revision in Tax System
Pursuant to the change in corporate tax rates in association with a revision in the tax system, it has
become necessary for the Company to conduct a reversal of deferred tax assets. In calculating theamount of the reversal, the Company has decided to conduct a reversal of deferred tax assets ofapproximately ¥5.2 billion based on a conservative judgment of collectability in view of the harshbusiness environment.
5. Outlook
Please refer to the “Notice Regarding Revisions to Earnings and Dividend Forecasts,” which wasalso released today, for the impact on the Company’s forecasts for its full-year businessperformance.
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