May 16, 2012

Results Briefing for the Year
Ended March 31, 2012

This report contains forward-looking statements regarding Toda
Corporation and the Group’s corporate plans, strategies, andbusiness forecasts.
These statements include Toda Corporation’s forecasts basedon information currently available as of the announcement date,
which are subject to a number of risks and uncertainties.
Therefore, the actual results or developments may differ fromthose presented in these forward-looking statements due tochanges in various factors.

Results Briefing for the Year Ended March 31, 20122

1. Summary of Financial Results

Executive Manager Yushi Kikutani

Results Briefing for the Year Ended March 31, 20123

Highlights: FY2011
 Consolidated Net Sales: ¥489.3 billion (up 8.2% year-on-year)： Net sales of completed construction contracts rose due tothe increase of contracted construction by overseas
subsidiaries.
 Operating Income: - ¥7.9 billion (down ¥13.7 billion year-on-year)： Provision for loss on construction contracts was increased
due to deteriorated construction profitability. A decrease in profit
was also attributable to loss on valuation of real estate for sale.
 Orders Received (non-consolidated): ¥403.2 billion (down ¥41.3
billion year-on-year)： Orders from the private sector remained almost flat as in theprevious fiscal year, whereas orders from the public sector
decreased by a total of 9.3% year on year due to a sluggish
order flow from large-scale projects.
Results Briefing for the Year Ended March 31, 20124

Summary: FY2011
FY2011FY2010

Original
Forecast

Actuals

ChangeDifference(year on year)(vs. forecast)

452.4

463.5

489.3

+36.8

+25.8

Operatingincome

5.7

8.9

(7.9)

-13.7

-16.8

Ordinary income

7.2

10.0

(6.6)

-13.9

-16.6

Net income

3.5

5.0

(19.8)

-23.4

-24.8

444.5

451.0

403.2

-41.3

-47.7

（Billions of yen）

Consolidated
net sales

Orders received(Non-consolidated)

Results Briefing for the Year Ended March 31, 2012

5

Main Factors for Losses Decrease in profits in the construction business：

Provision for loss on construction contracts of ¥4.7 billion wasincreased on the back of the deterioration of profitability atorder receipt, and a delay in recovery of profitability.

 Decrease in profits in the real estate business：

A loss on valuation of real estate for sale amounting to ¥7.3 billion
was realized in an effort to enhance the efficiency of investment
through the liquidation of long-held real estate assets.

 Extraordinary losses：

Loss on valuation of investment securities and impairment loss
were ¥3.3 billion and ¥2.4 billion, respectively.

 Increase in income taxes：

Tax expenses increased due to ¥5.9 billion reversal of deferred
tax assets reflecting tax revisions.

Results Briefing for the Year Ended March 31, 2012

6

(Non-consolidated) Construction Business Performance（Unit: Billions of yen）

Orders Received forConstruction
444.5

Net Sales of Completed
Construction Contracts

-9.3%

448.9

403.2
82.2

Gross Profit Margin on
Completed Construction Contracts （%）

+6.6%

421.3
73.8

Civil
engineering-10.2%

80.3

101.5

Civil
engineering+26.3%

6.6

6.2

362.3

329.4

Architectural
construction
-9.1%

340.9

347.4

4.6

Architectural
construction
+1.9%

Civil
engineering

4.2

4.0
3.8

Total

Architectural
construction

FY2010 FY2011

FY2010 FY2011

Results Briefing for the Year Ended March 31, 2011

FY2010FY2011

7

(Non-consolidated) Breakdown of the Orders Received(Unit: Billions of yen)

Breakdown by Client
444.5
1.4

By Quarter
Total

403.2
2.2

-9.3%

Overseas

119.2
97.6

+47.8%

4Q-18.1%

297.1
298.0

Privatesector

144.5

99.9

+0.3%

108.4
104.1
145.9

102.9

Publicsector
-29.5%FY2010FY2011Results Briefing for the Year Ended March 31, 2012

76.2

97.1

FY2010FY2011

3Q-30.8%

2Q
+4.1%

1Q
+27.4%

8

Main Orders Received
Ordering Parties
Architectural
construction

Civilengineering

Name of works

MORI TRUST CO., LTD.

KYOBASHI TRUST TOWER

YAMATO TRANSPORT CO., LTD.

Atsugi Distribution Terminal

Nomura Real Estate Development Co.,
Ltd.; Mitsubishi Corporation

Funabashi Kita-Honcho Project

Otsuma Women’s University

Reconstruction of Chiyoda School Building

WASEDA University

Waseda School Building D

MEGMILK SNOW BRAND Co., Ltd.

Integrated Dairy Products Factory

Miyagi Prefectural Government

Disaster waste management project(Watari processing area)

Chugoku Regional Development
BureauShichiyama Bypass Fukube Sakyu Tunnel

Kanto Regional Development Bureau

Chubu Odan Daigoyama Tunnel*Honorific prefixes are omitted. Work names are abbreviations.

Results Briefing for the Year Ended March 31, 2012

9

Main Works Completed
Ordering Parties
Architectural
construction

Civilengineering

Name of works

Nakano Ekimae Development

Nakano Project

Hanasaki Danchi Rebuilding Project
Condominium Association

Hanasaki Danchi Condominium Rebuilding
Project

Kumamoto City

Redevelopment of Kumamoto Ekimae East-A
Block

Yurihonjo City

Construction of Cultural Complex Facilities

Azabu University

Construction of Azabu University New School
Building No. 3

Osaka Gas Co., Ltd.

MS Mountain Tunnel

Metropolitan Expressway Company
Limited.

Koyasudai Ventilation Center, Tunnel andbridge abutment

Bureau of Waterworks
Tokyo Metropolitan Government

Kohoku Water Station: Removal of the Existing
Facilities and Temporary Facilities*Honorific prefixes are omitted. Work names are abbreviations.

Results Briefing for the Year Ended March 31, 201210

1-1. Details of Financial Results

Results Briefing for the Year Ended March 31, 201211

(Consolidated) Toda Group
Business

Construction

Architectural
construction

Subsidiaries in Japan

Overseas subsidiaries

Toda Reform Co., Ltd.

Construtora Toda do Brazil S/A

Sipco Industries Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

APEC Engineering Co., Ltd.

Thai Toda Corporation Ltd.

Chiyoda Kenkou Co., Ltd.

Toda Vietnam Co., Ltd.
Toda Philippines, Inc.

Civil
engineering

17 companies

ABTD, inc.

10 companies*
1 company

Toda Road Co., Ltd.
Chiyoda Tochi Tatemono Co., Ltd.

Toda America, Inc.

Real estate

3 companies
Yachiyo Urban Co., Ltd.
Toda Finance Co., Ltd.

Others3 companies

Chiyoda Staff Service Co., Ltd.
Towa Kanko Kaihatsu Co., Ltd.

Results Briefing for the Year Ended March 31, 2012

*Toda Philippines, Inc. and ABTD, inc.
were established in the current fiscal year.

12

(Consolidated) Summary of Group Performance*Intra-company transaction is not eliminated in this chart.

FY2011

Toda Corporation

Subsidiaries total

FY2011
Consolidated

%

%

%

Billions of yen
Net sales

457.3

Gross profit

12.7

Selling, general andadministrative expenses
Operating income
Non-operating income
Ordinary income

58.1
2.8

20.9
(8.2)

5.4

2.6
-1.8

1.0
(7.1)

3.1

489.3

0.4

0.5

0.8

(7.9)

1.0

(6.6)

(6.8)

(0)

(6.3)

Income before income taxes(14.0)

0.5(13.0)

5.5

0.7

6.7

Net income(19.6)-4.3

Results Briefing for the Year Ended March 31, 2012

(0.2)

3.1

1.19

-1.6

-

-1.4

-

-4.1

-

1.3

Extraordinary income(loss)

Income taxes

1.07

23.1

0
-1.6

15.1

Ratio ofconsolidated results
to non-consolidated
results-0.4(19.8)

13

(Consolidated) Statements of Income
FY2010 (Actual)

FY2011 (Actual)%%

Billions of yen
Net sales

452.4

Gross profit

30.5

Selling, general andadministrative expenses
Operating income
Non-operating income
Ordinary income

489.3
6.7

24.7
5.7

3.1

1.3

(7.9)

+36.8

477.8

-15.3

28.6

(6.6)

-1.6

-13.7

4.1

-1.4

-13.9

5.2

(0.4)

(6.3)

0

Income before income taxes

6.7(13.0)

5.2

3.1

6.7

2.5

Net income

3.5

0.8

Results Briefing for the Year Ended March 31, 2012(19.8)

0.9

1.1

Extraordinary income(loss)

Income taxes

6.0

24.5

1.3
1.6

FY2012 (forecast)
%

23.1

1.4
7.2

15.1

Changes

-4.1

-23.4

2.7

1.1

0.6

14

(Consolidated) Net Sales and Operating Income
by Segment
Net Sales

Operating Income(Billions ofyen)(Billions of
yen)

600

16
Real estate
and Other
15.9
14.9

400

84.2

1.9
13.3

Civil
engineering
104.6

8
12.2

200

0

359.2

Construction
464.5

Architectural
construction
374.1

0

Architectural construction

FY2011

4.1

Real estate
and Other(5.3)-8
FY2010Civil
engineering
1.3
Architectural
construction
3.5

FY2012(forecast)

Civil engineering

Real estate and Other

Results Briefing for the Year Ended March 31, 2012

FY2010Architectural construction

FY2011
Civil engineering

FY2012(forecast)
Real estate and Other

15

(Consolidated) Change in Gross Profit Margin on
Completed Construction Contracts(Billions of yen)

Consolidated

Non-consolidated

30
28.0
26.0

25.0
22.2

20
19.6
17.9

10

0
Gross Profit Margin on Completed
Construction Contracts Ratio

FY2010FY2011FY2012 (forecast)

6.4％

4.1％

5.4％

Results Briefing for the Year Ended March 31, 201216

(Consolidated) Change in SG&A
(Billions of yen)

Consolidated

Non-consolidated

30
24.7
22.5

24.5

23.1
20.9

21.7

20

10

0

SG&A Ratio

FY2010FY2011FY2012(forecast)

5.5％

4.7％

5.1％

Results Briefing for the Year Ended March 31, 201217

(Consolidated) Change in Operating Income (Loss)(Billions of yen)

Consolidated

Non-consolidated

8

4

5.7

5.4
4.1

2.6

0

-4
(7.9)

-8

(8.2)

-12

Operating Income
Ratio

FY2010FY2011FY2012(forecast)

1.3％

-1.6％

0.9％

Results Briefing for the Year Ended March 31, 201218

(Consolidated) Change in Non-Operating Income (Loss)
Account Balance

1.4

1.3

2.5

2.5

1.1

(Billions of yen)

3

2

0.7

1

1.6

0

0.1

Other income 0.5

Non-operating
income(0.7)

Non-operating
expenses

-1

(0.2)

(1.0)
-2

FY2010Results Briefing for the Year Ended March 31, 2012

Dividend income 1.7

Interest income 0.2
Interest expenses (0.7)
Provision of allowance for
doubtful accounts (0.1)

Other expenses (0.3)(1.2)
FY2011FY201219

(Consolidated) Change in Ordinary Income (Loss)(Billions of yen)

Consolidated

Non-consolidated

10

7.2
5

6.7
5.2
3.7

0

-5

(6.6)

(7.1)

-10

Ordinary income
ratio
a o

FY2010FY2011FY2012(forecast)

1.6％

-1.4％

1.1％

Results Briefing for the Year Ended March 31, 201220

(Consolidated) Change in Extraordinary Income (Loss)
Account Balance

(0.4)

(6.3)

(Billions of yen) 2

0.4
Extraordinary
income00(0.9)

Impairment loss (2.4)-2Loss on valuation
(3.3)

-4
Extraordinary loss

Loss on disaster (0.1)
Other losses (0.3)-6Impairment loss (2.4)

Loss on valuation of
investment securities
(3.3)

(6.4)
-8
FY2010Results Briefing for the Year Ended March 31, 2012

FY201121

(Consolidated) Deferred Tax Assets(B/S)(Billions of yen)15(P/L)
Income taxes deferred
Decrease of deferred tax assets
2.5
Increase of deferred tax liabilities

10

2.8

Deferred tax assets
ChangeDeferred tax assets
12.9

Deferred tax assets
10.4

5

5.3

Loss on valuation of investment
securities and other
1.4
Elimination of intra-company
transaction
(0.9)
Total

0
Deferred tax liabilities

Deferred tax liabilities(0.2)

Deferred tax liabilities(3.1)

FY2010FY2011

12.6

7.2

5.9

(Gain on adjustment for changesof tax ratio
2.1)-5
Deferred tax assets (net)(5.3)
Results Briefing for the Year Ended March 31, 201222

(Consolidated) Change in Net Income (Loss)
Consolidated(Billions of yen)5
3.5

Non-consolidated

2.9

2.7

0

2.0

-5
(19.8) (19.6)

-10

-15

-20
FY2010FY2011FY2012(forecast)

Net income ratio

0.8％

-4.1％

0.6％

Dividends per share

7.0 yen

6.0 yen

6.0 yenResults Briefing for the Year Ended March 31, 201223

(Consolidated) Balance Sheets
Liabilities and Net Assets(Billions ofyen)(11.9)

(5.1)

(6.7)

499.1

487.1

Current
liabilities
255.9

(0.1)

Current
liabilities
255.7

Noncurrent
liabilities
53.5

+6.2

Noncurrent
liabilities
59.8

Net
assets
189.5(18.0)FY2010Results Briefing for the Year Ended March 31, 2012

Net
assets171.5
FY201124

(Consolidated) Detailed Consolidated Balance Sheets
FY2010FY2011

Billions of yen

Figures in ( ) are changes from the previous year

(Assets)
Current assets

Remarks

286.5

281.3

Cash
36.9 (-5.3)
Notes receivable, accounts receivable fromcompleted construction contracts and other
164.2 (+31.6)
Costs on uncompleted construction contracts
30.9 (-20.0)

Noncurrent assets

212.5

205.7

Property, plantand equipment

89.1

87.3

Intangible assets

2.2

3.0

Investments andother assets

121.1

115.4

Real estate for sale

19.5 (-9.0)

Deferred tax assets

10.2 (+2.9)

Buildings and structures

17.7 (-0.3)

Land

66.5 (-2.5)

Investment securities

110.7 (+0.4)

Long-term deferred tax assets

Total assets

499.1

Results Briefing for the Year Ended March 31, 2012

0.2 (-5.3)

487.1
25

(Consolidated) Detailed Consolidated Balance Sheets
FY2010FY2011

Billions of yen(Liabilities)
Current liabilities

255.9

255.7

Noncurrent liabilities

53.5

59.8

(Net Assets)
Shareholders' equity
Valuation andconversion
adjustment
Total Liabilities andNet Assets

167.8
18.3

146.2
21.0

Remarks
Figures in ( ) are changes from the previous
year
Notes payable and other accounts payable
132.7 (+14.6)
Short-term loans payable
37.0 (-6.8)
Advances received on uncompleted construction
contracts
41.2 (-14.2)
Provision for loss on construction contracts
14.0 (+4.7)
Long-term loans payable

20.4 (+6.2)

Deferred tax liabilities

3.1 (+2.9)

Provision for retirement benefits

22.0 (-0.7)

Retained earnings

103.7 (-22.1)

Valuation difference on available-for-salesecurities
17.0 (+1.4)

499.1

Results Briefing for the Year Ended March 31, 2012

487.1
26

(Consolidated) Change in Real Estate Holding(Billions of yen)

For business use (own use)

For business use (rent)

For sale

Figures in brackets represent the total of real estate for business use.

150

(11.4)
113.0

117.2
105.8

100

30.4
(76.5)

52.3

28.6

(9.1)

(81.7)

54.5

Decreased by sales
Inserted valuation loss

-1.5
-7.3

19.5
(82.6)(0)54.5

Acquisition of trust
beneficiary rights
+1.4

50

30.3

34.0

FY2009FY2010

(2.2)

31.8

Impairment loss

-2.4

0
Results Briefing for the Year Ended March 31, 2012

FY201127

(Consolidated) Change in Investment Securities(Billions of yen)Book value

Valuation difference

150
＋0.5

119.6

100

110.2

110.7

26.2

26.3

83.6

83.9

84.3

FY2009FY2010FY2011

11,089 yen

9,755 yen

10,083 yen

35.9

50

0

Nikkei Stock-Average

Results Briefing for the Year Ended March 31, 201228

(Consolidated) Change in Interest-Bearing Liabilities
Short-term(Billions of yen)
59.5

60

Long-term

58.1

- 0.6

57.5

18.7

14.2

40.8

43.9

FY2009FY2010FY2011

11.9％

11.6％

11.7％

20.4

40

20

37.0

0
Ratio of interest-bearing
liabilities

Results Briefing for the Year Ended March 31, 201229

(Consolidated) Change in Provision for Loss on Construction Contracts(Billions of yen)

Architectural construction

Civil engineering

16
14.0
+4.8

12

Civil engineering 2.8

9.2
8

1.9
Architectural
construction 11.2

4

7.3

0
FY2010Results Briefing for the Year Ended March 31, 2012

FY201130

(Consolidated) Statement of cash flow
（Billions of yen）

- 9.6

61.6

52.0
Profit before tax
Construction-related funds
Real estate for sale

(13.0)(11.1)+10.5

Increase in fundCash and cash
equivalents at beginningof period
Purchase of property, plant andequipment, etc.
(4.5)
Purchase of investment securities, etc.
(3.6)

(0)

Decrease in fund（March 31, 2011）

Results Briefing for the Year Ended March 31, 2012

(7.8)
Investing CF

Cash and cash
equivalents at end of
period

(1.5)(March 31, 2012)

Dividends paid
(2.1)
Repayment of loans (0.6)
Disposal of treasury stock +1.3

31

(Reference) Share Price and Other Indices
FY2008FY2009FY2010FY2011FY2012(forecast)

303

337

329

278

230

Net assets per share(Yen)

563.76617.42602.35537.53537.53

Net income per share
(Yen)

8.10

9.36

11.53

(64.28)

8.67

Share price (Yen)

37.41
36.00

Price earning ratio (PER,
times)

PER
26.52

28.53

Price-book value ratio (PBR,
times)

0.53

0.55

0.55
0.52

PBR

Results Briefing for the Year Ended March 31, 2012

0.43

32

(Reference) Overseas Net Sales and Gross Profit by Region

Overseas Net Sales

Overseas Gross Profit(Billions ofyen)(Billions of
yen)

23.1

20

1.8

2.3

1.5

8.2

DirectControl 0.4

0.1

18.1
Directcontrol
2.9Southeast
Asia
4.6

10

7.8

1.2

3.5

China 3.4

0.6
9.1

BrazilChina

Southeast Asia

0.3

Brazil0.7

0.8

FY2011FY2012(forecast)Southeast Asia

Direct Control

0.4

4.9
FY2011

0.5

0.1
0.2

Brazil 7.2

FY2010Southeast
Asia
0.3
China 0.1

0.8

0.9
1.9

0

1.7

FY2012(forecast)
Direct control

0

FY2010BrazilChina*Southeast Asia: Thailand, Vietnam, Philippines
Results Briefing for the Year Ended March 31, 201233

1-2. Performance Forecasts

Results Briefing for the Year Ended March 31, 201234

Performance Forecasts
Regarding the economic environment in coming years, we expect amodest recovery.
In the domestic market, we anticipate that the outlook for orders willremain tough despite growth in the construction of municipal government
offices relating to post-earthquake restoration and reconstruction efforts
and signs that the private sector is recovering.
In the fiscal year ending March 2013, we will make the utmost efforts torecover profitability, but still there are some concerns over a possibly
worsening earnings environment caused by such negative factors as
intensifying competition, power shortages and rising labor costs.
We will continue to monitor changes in business conditions and if any are
expected to impact our performance, we will promptly disclose therelevant information in accordance with the “Rules for Timely Disclosure.”

Results Briefing for the Year Ended March 31, 201235

Forecasts for FY2012 (Year Ending March 31, 2013)

FY2012FY2011
Forecasts(Billions of yen)

Change(year on year)

Consolidated net
sales

489.3

477.8

Operating income

(7.9)

4.1

+12.0

Ordinary income

(6.6)

5.2

+11.9

Net income(19.8)

2.7+22.5

Orders received(Non-consolidated)

403.2

400.0

Results Briefing for the Year Ended March 31, 2012

-2.4%

-0.8%

-11.5

(3.2)

36

(Non-consolidated) Forecasts of the Construction Business(Unit: Billions of yen)Orders Received forConstruction

Net Sales of Completed
Construction Contracts
-0.8%

403.2

400.0

73.8

80.0

-3.7%

448.9
Civil engineering+8.3%

Gross Profit Margin on
Completed Construction Contracts

101.5

（％）

432.5
87.5

Civil engineering-13.8%

4.6

329.4

320.0

Architectural
Construction
-2.9%

347.4

345.0

Architectural
Construction-0.7%

Civil engineering
5.4
Architectural
construction
5.1
Total
5.1

4.0
3.8

FY2011FY2012(forecast)

FY2011Results Briefing for the Year Ended March 31, 2012

FY2012(forecast)

FY2011FY2012(forecast)37

2. Medium-Term Management Plan
President Shunzo Inoue

Results Briefing for the Year Ended March 31, 201238

2-1. Current Status and Our Challenges

Results Briefing for the Year Ended March 31, 201239

Environmental Changes and Business Performance
Price of construction materials*Reference: Bank of Japan

Gross Profit Margin on Completed Construction
Contracts (non-consolidated)（2005＝100）

１１７.４
Bottoming out at the endof FY 2009, the priceshows an upward trend.

Civil
engineering

Total

１０９.３
Architectural
construction

Revenue model
basedon the gain onpurchase priceadjustments
reached its limit.

4.6

(％)

4.0
１０５.６
FY2008 FY2009 FY2010 FY2011

Results Briefing for the Year Ended March 31, 2012

3.8
FY2008 FY2009 FY2010 FY201140

Principal Indices of the Former Medium-Term Management Plan

Target (FY2011)

FY2008FY2011

25%

15%

14%

68%

64%

Ratio of renovations tocompletions
Ratio of orders in thepriority areas

70%(Architectural construction
and civil engineering)

Overseas orders received(Consolidated)¥20.0 billion¥9.7 billion¥21.5 billion

Real estate investment(cumulative total for the periodof the plan)¥23.0 billion +α—¥19.1 billion

Ratio of sales in the Tokyo
metropolitan area

60%

51%

56%

Results Briefing for the Year Ended March 31, 201241

Breakdown of Orders Received in the Priority Areas(Type of Construction Work)
Orders received forarchitectural construction

9.9
21.1

11.7
22.5

17.5

6.7

(%)

7.4

11.6

Housing

17.6

Education
research

15.7

Office buildings
Government offices

11.2

Production facilities

36.6

FY2010

2.9
10.6
13.5

14.2
2.2
9.0

33.7

Others

17.0

1.3
8.9

Land reclamation

9.1

Water and sewage

8.1

Railways

38.9

Roads

7.9

12.5

Soil and river conservation

49.7
39.3

21.4

20.1

FY2009

21.2

11.9

15.6
27.1

Others(%)

14.4

Orders received for
civil engineering

Medical welfare

FY2011

FY2009FY2010FY2011

The category “Others” grew in the FY2011 due to the orders received for large-scale
distribution facilities and quake-disaster reconstruction-related work, etc.
Results Briefing for the Year Ended March 31, 201242

Overseas orders received
Overseas order received (by Region)
21.5
2.2

Others

3.1

China

6.5

Southeast
Asia

14.9
(Billions of yen)

1.4
3.5
2.0

6.1
1.2
1.4
0.7

7.8

9.6

Achieved the target of￥20.0 billion.
*Southeast Asia: Thailand, Vietnam, Philippines

2.6

FY2009BrazilThe number of orders
received grew steadily in
Brazil and the Southeast
Asia.

FY2010FY2011Results Briefing for the Year Ended March 31, 201243

Problematic Issues

Slow reaction to environmental changes
Weakened capacity to formulate proposals and tonegotiate for additional construction work
Stagnating innovation (slowdown in productivity
growth, labor shortages, etc.)

Unclear growth scenario

Results Briefing for the Year Ended March 31, 201244

Basic Policy of the Medium-Term Management Plan

(2) Creation of new values(1) Early improvement
in revenues

Growth strategies
as a Group

1.3%

Improvement ofconstruction revenues(Operating margin)-1.6%

FY2010Top priority
challenges

FY2011Results Briefing for the Year Ended March 31, 201245

2-2. Improvement of construction revenues

Results Briefing for the Year Ended March 31, 201246

Towards the Restoration of Core Business
Review the whole process toward a target of 7% in gross profit margin
on completed construction contracts
Scrutiny of projects and risk management together with Sales andConstruction Departments
Enhance technical proposals and comprehensive evaluation method;
Strengthen priority areas
Cost control; Streamline the purchasing function.
Eliminate defects, rework and waste in the process of construction.
Reduce total costs including SG&A expenses and non-operating
expenses.
Focus on reconstruction demand arising from the Great East Japan
Earthquake.
Results Briefing for the Year Ended March 31, 201247

Towards the Restoration of Core Business
Enhance the selection of orders under the appropriate target.
(Billions of yen)

FY2010FY2012FY2011

TargetTargetResultTargetResultArchitectural
construction

340.0

362.3

370.0

329.4

320.0

Civil
engineering

80.0

82.2

81.0

73.8

80.0

420.0

444.5

451.0

403.2

400.0

Total

Results Briefing for the Year Ended March 31, 201248

2-3. Growth strategies as a Group

Results Briefing for the Year Ended March 31, 201249

Background to strategy formulation
Social Challenges to be Resolved"Stock-type"society

Redevelopmentof infrastructure

Disasterprevention

Globalization

Globalenvironmental
issuesCustomer base of the Group

Total business capability beyond the framework ofconstruction is required.
Results Briefing for the Year Ended March 31, 201250

Medium- to Long-Term Management Strategy
Target Period: FY 2012 to FY 2017

Creation by people. Created with people…

Create new answers
Give “Construction” a wider and deeper significance.
Seek the best results for our customers.

Growth target: Operating margin of 3% or higher
Three Challenges
Comprehensive approach
to facility lifecycle

Ultimate operations

Complete businessservices

Offering solutions throughout
the lifecycle of a facility

Excelling in bothconstruction andproduction system

Providing complete services
from business planning todevelopment*Customers: Order placers and end-users
Results Briefing for the Year Ended March 31, 2012

51

Actual Image of “Three Challenges” (Example: Hospital)
Information
network

Energy, CO2

Complete businessservices

PFI forhospitals
Medical mall

Ultimate
operations

Comprehensive
approach tofacility lifecycle

Propose and realize
a smart hospital

Reconstruction

DesignNew
construction

Maintenance andmanagement

Renovation

Planning
Medical equipment,
supplies
Results Briefing for the Year Ended March 31, 2012

Business Continuity
Plan (BCP)
52

Forecast for the Next Three Years
Year ending
March 2018
(FY 2017)

Year ending
March 2013
(FY 2012)

Year ending
March 2014
(FY 2013)

Year ending
March 2015
(FY 2014)

Stable revenues
Realizefurther growth

Growth strategies as a Group
Create growth opportunities(1) Renovate business processes
areas requiring strategic(2) Businessdevelopment and enhancement(3) Strengthen management base

Results Briefing for the Year Ended March 31, 201253

(1) Renovate Business Processes
ⅲ. Feedback the status of

New organizations
including subsidiaries
will handle this area.

operations.

Life careEngineering and Design
Secure our critical technologies
and know-how

Integrated promotion ofmaintenance and management,
and renovation

Outside the Group(companies andorganizations)

ⅱ.

≪Enhance cooperation and alliances≫

Construction work
ⅰ. Realize customer needs
through “production andestablishment of amechanism.”

Advantage on reliability andintensive streamline

Secure revenue
opportunities through“New construction tomaintenance andmanagement to RN.”
Subcontractor≪Secure capable technicians≫

Results Briefing for the Year Ended March 31, 201254

(1) Renovate Business
Processes

Points for Renovation

Shift from business model of “selling tailoreditems with no post-sale services”
Promote the securing of capable technicians.
Cooperate and enter alliances with companies andorganizations outside the Group.

Results Briefing for the Year Ended March 31, 201255

(2) Business areas requiring strategic development andenhancement

Overseas

Investment
Business(Real estate, PFI,
PPP)

Target for FY2014

Target for FY2014

Net sales
outside Japan:

Income from realestate, etc.

¥35.0 billion¥4.0 billion

Medium- to Long-Term target:

Medium- to Long-Term target:

Net sales
outside Japan:

Income from realestate, etc.

¥50.0 billion¥5.0 billion

Environment &EnergyImprove contribution
to construction orders
Commercialize
renewable energy•FY2011: Approximately ¥18.0 billion * FY2011: Approximately ¥3.0 billion(excluding valuation losses)
Results Briefing for the Year Ended March 31, 201256

(2) Business areas requiring strategic
development and enhancement

Overseas Business Development

Three-base system of Brazil, Southeast Asia + China and West Africa

The Overseas Division (Tokyo)
West Africa (ODA)

Continuous order receipt
Build civil engineering work
track record

Gather information on international
investments
Cooperate with other branches
Southeast Asia + China

Establishment of a control
officeDevelopment of newmarkets (countries)
Brazil*Southeast Asia: Thailand, Vietnam and the Philippines
Results Briefing for the Year Ended March 31, 2012

Further localization
Improvement of construction
work capabilities; M&A
57

(2) Business areas requiring strategic
development and enhancement

Real Estate Business

New investment of approximately ¥5.0 billion every year while
utilizing properties efficiently

Efficient use of properties
Improve occupancy ratioof rental properties
Repair, reconstruction,
redevelopment, etc.

New investment
New investment in income
properties
Approximately ¥5.0 billion annually
Establish a Real Estate
Investment Advisory Board

Cooperation between construction business andbuilding management industry(Selloff and disposition)
Results Briefing for the Year Ended March 31, 201258

(2) Business areas requiring strategic
development and enhancement

Environment and Energy

Enhance cross-industrial collaboration and focus on renewable energy.
Sterile filtration air-conditioning system

Sterilization using Triosyn
antimicro-bial filters

Sterilization by S-Plasmaion (with air outlets)

Sterilization using
antimicrobial filters of
S-Plasma ion plus
triosyn (Ceiling type)

Power generation by floating
wind turbines

Task & Ambient Lighting technology

Environment-friendly city
(Post-earthquake reconstruction)

Results Briefing for the Year Ended March 31, 201259

(3) Strengthen management baseGroup as a whole

Compliance
Quality, Environment, Safety
BCP (Business Continuity Plan)

Management
structure

Universal
improvement

Results Briefing for the Year Ended March 31, 2012

Inheritance oftechnologicalcapability
Global humanresources

Developmentof human
resources60

2-4. Performance Targets and Other

Results Briefing for the Year Ended March 31, 201261

Performance Targets(Billions of yen)

Consolidated
net sales
Operating
Income[ratio]FY2010FY2011FY2014

Medium- to LongTerm Target

ResultResultTargetTarget

500.0

—

452.4

489.3

5.7

(7.9)

[1.3%]

Results Briefing for the Year Ended March 31, 2012[-1.6%]

more or less

2.0%

3.0%

and higher

and higher

62

Policy of Profit Return to Shareholders

Dividend per share

６.０

Continuous and stabledividend payment（Yen）

Consider appropriate
dividends according to
the profit growth.
FY2002

FY2007FY2012（Forecast)（年/月）

Results Briefing for the Year Ended March 31, 201263

At the End

Re-realize
the importance of
our Corporate
Philosophy
Results Briefing for the Year Ended March 31, 201264

65