Results Briefing
for the Year Ended March 31, 2017
May 15, 2017

TODA CORPORATION

1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.

2

Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Medium-term Management Plan 2019
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

41-1. Summary of Financial Results
for the Year Ended March 31, 20175

Highlights: FY2016
 Consolidated Net Sales: ¥422.7 billion, down 14.2% year-on-year： Net sales fell 14.2% year-on-year to ¥422.7 billion, as
completed construction contracts decreased.

 Operating Income: ¥24.9 billion, up 15.6% year-on-year： Operating income increased 15.6% year on year, to ¥24.9 billion,
as gross profit on completed construction contracts improved
due to the thorough adoption of a profitability-oriented order
receipt policy.

 Orders Received (non-consolidated): ¥473.3 billion, up 14.6% year
on year： Orders for both architectural construction and civilengineering rose 14.6% year on year to ¥473.3 billion,
with architectural construction in particular posting a
16.0% increase thanks to a large-scale project.

6

Summary: FY2016(Billions of yen)

FY2016FY2015

Forecasts(announced
in Feb. 2017)

Actuals

Change(year onyear)

Difference(vs. forecast)

Consolidated
net sales

492.6

430.0

422.7

-14.2%-7.3

Operatingincome

21.6

23.0

24.9

15.6％

1.9

Ordinary
income

23.7

25.0

27.1

14.6%

2.1

Profit attributable

20.0

23.5

42.0

110.0%

18.5

412.8

450.0

473.3

14.6%

23.3

to owners of parent

Orders received(non-consolidated)7

Main Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Tokyo College of Music

Construction of new campus of Tokyo College ofMusic

J.F. Oberlin University

J.F. Oberlin University’s Hyakunincho Campus
plan

PILOT Corporation

Planning, design work and new construction
for Kyobashi 2 – 6

Hakodate Kokusai Hotel

Hakodate Kokusai Hotel reconstruction

Kurume University

New construction of foundation for block 3,
hospital north block, etc.

Tsuyama Jifu kai

New hospital block extension of Tsuyama Central
Hospital

Japan Railway Construction,
Transport and Technology
AgencyCentral Alps Tunnel for Chuo Shinkansen,

Chubu Regional Development
Bureau, Ministry of Land,
FY2016 Tunnel No.3, San-en Expressway
Infrastructure, Transport andTourism*Honorific prefixes are omitted. Work names are abbreviations.

8

1-2. Details of Financial Results9

(Consolidated) Toda Group
Business

Construction

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

Architectural
Construction

16
companies

8
companies

Thai Toda Corporation Ltd.
TODA Philippines, Inc.
Toda Vietnam Co., Ltd.

Civil
Engineering

Real Estate1
company

Toda Road Co., Ltd.
Toda Bldg. Partners Co., Ltd.

ABTD, inc.

Toda America, Inc.

2
companies

Toda Finance Co., Ltd.
Toda Staff Service Co., Ltd.

Other

Towa Kanko Kaihatsu Co., Ltd.

5
companies

Goto Floating Wind Power LLC.
Offshore Wind Farm
Construction LLC
10

(Consolidated) Change in SG&A
Consolidated(Billions of yen)
30

SG&A ratio
6.6%（consolidated）

6.6%
5.3%
26.1

20

Non-consolidated

23.5

29.0

27.9
25.1

26.0

6.0%

4.0%

10

0

2.0%

FY2015FY2016FY2017 (forecast)

0.0%

11

(Consolidated) Balance Sheets(Billions of yen)

Assets
-12.1

548.7

Current
assets
311.7

536.5

Cash and deposits+11.6
Securities+24.6
Construction-related assets -74.2
Real estate for sale
-7.8

-44.2

Current
assets267.5

Liabilities and Net Assets
-12.1

548.7

Current
liabilities

536.5

Construction related liabilities -59.1
Short-term loans-4.7
Unpaid consumption tax, et ＋14.1

Noncurrent
assets

＋17.6

78.4
+14.4

Investments
and otherassets158.5

Investment securities+13.8
Retirement benefit assets +0.5

Mar
2016
16/3
116.2％

Current ratio

96.0
Investments
and otherassets

-46.0

177.4

Mar
2017
17/3

16/3
Mar
2016

-4.7
-10.9

Noncurrent
liabilities

87.6

-15.5

103.2

173.0

120.5％

Long-term loans
Deferred tax liabilities

Noncurrent
liabilities

Net
assetsCurrent
liabilities
222.0

268.0

Buildings and structures +2.5
Land
+10.2
Construction in progress +4.0

Noncurrent
assets(Billions of yen)

+49.4
Retained earnings ＋39.9
Valuation difference on available
for sale securities
+8.4

31.9％

Net
assets
226.8

17/3
Mar
2017
Equity ratio

41.7％
12

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei Stock Average(Billions of yen)

Stock prices (yen)19,206

250

200

150

14,827

185.5

50

0

70.4

77.1
Mar-14

16,758
154.8

147.5

110.3
100

18,90975.2
Mar-1520,000168.7
Valuation
Difference

79.2

75.7
Mar-1615,00091.1

10,000

Book
Value

5,000

77.6

Mar-170

13

(Consolidated) Change in Interest-Bearing Liabilities
Short-termLong-term

79.7
66.3

-9.4

(Billions of yen)

70.2

66.0

45.1
40.4

33.7

D/E ratio

32.5

34.5

Mar-15Mar-16

Mar-17

Mar 2018(forecast)

14.7％
0.37x

0.45x

0.27x

ー

29.8

14

(Consolidated) Change in Provision for Losson Construction Contracts
Architectural construction

Civil engineering(Billions of yen)

7.6
＋0.８

2.6
5.0

Mar-15

2.4
1.4
1.0

Mar-16

３.2
Civil engineering
3.1

Architectural
construction
0.1

Mar-1715

(Consolidated) Statement of Cash Flow
(Billions of yen)
＋36.3
90.9
54.6
Cash and cash
equivalents
at beginning of
period＋58.8

Income before income taxes
28.3
Notes and accounts receivable – trade
78.0
Costs on uncompleted construction contracts 3.7
Notes and accounts payable -trade-49.2
Advances received on uncompleted construction
contracts-9.8

Increase in funds Decrease in funds

Operating CF

Investing CF
March 31, 2016

Cash and cash
equivalents
at end ofperiod-9.7

Investment securities
2.1
Property, plant and equipment -11.7

Financing CF
-12.6

Loans
Dividends paid

March 31, 2017

-9.4
-3.0

16

1-3. Performance Forecasts

17

Forecasts for FY2017 (Year Ending March 31, 2018)(Billions of yen)

FY2017FY2016
Forecasts

Change(year-on-year)

Consolidated net
sales

422.7

437.0

3.4%

14.2

Operatingincome24.9

19.0-24.0％-5.9

Ordinary income

27.1

21.0

-22.8％-6.1

Profit attributable toowners of the parent

42.0

14.0

-66.7％-28.0

Orders received(Non-consolidated)

473.3

445.0

-6.0%

-28.3

18

(Non-consolidated) Forecasts for theConstruction Business(Billions of yen)（％）
Net Sales of Completed
Construction Contracts

Orders Received forConstruction
473.3

114.4

Gross Profit Margin on Completed
Construction Contracts

445.0

95.0

394.3

400.0

ArchitecturalConstruction

100.0

12.5
11.9

Civil
Engineering

101.4

Civil
Engineering

10.2
358.8

FY2016350.0

FY2017(forecast)

Civil
Engineering

Architectural
Construction

292.9

300.0

FY2016FY2017(forecast)Architectural
Construction

FY2016

Civil
Engine
ering

[値]
Total
[値]
10.2
ArchitecturalConstructionFY2017(forecast)19

Non-consolidated Forecasts for FY2017
Amount（billions of yen）

Profitability（％）

Net sales

404.5

Gross profit

43.1

10.7

Profits in the construction
business

41.5

10.4

[Architectural construction][30.5][10.2][Civil engineering][11.0][11.0]

Profits in the real estatebusiness

1.6

35.6

Selling, general andadministrative expenses

26.0

Operating income

17.1

4.2

Ordinary income

18.9

4.7

Extraordinary income
Profit

0.0
12.7

3.1
20

2. Medium-term Management
Plan 2019
President Masanori Imai

21

Positioning of Medium-term Management
Plan 2019Toda Group Global Vision

A corporate group that makes
your success possible
To a new phase to realize the global vision
FY2015 - FY2016

FY2017 - FY2019

Phase I

Phase II

Establishinggrowthfoundation

Building profit base forcontinuous growth（business, mindset
reform）(resource shift and new value
creation)

FY2020 -Continuous
growth（tenacity, diversity)22

1. Achievements of Previous
Medium-term Plan and Issues

23Performance Targets in the Previous Mediumterm Plan and Achievement Status
Achieved profitability and productivity goals ahead ofschedule, to move to new Medium-term Plan
(Billions of yen)

FY2015FY2016FY2017

Previous
medium-termtargets

Actuals

Actuals

Forecast(FY2017)

Consolidated
net sales

492.6

422.7

437.0

480.0

Operatingincome

21.6

24.9

19.0

20.0

Operating income
ratio

4.4％

5.9％

4.3％

4.2％

14.55

15.45

13.45

13.20

Labor
productivity(million yen)

* Labor productivity = Added values (Operating income + Overall labor cost)÷Number of employees (averageduring fiscal year, including temporary staff, etc.)24Status of Construction Work Carried Forward
Both Architectural Construction and Civil
Engineering works in hand are at a high level
Architectural Construction (Japan)

Civil Engineering (Japan)

423.4

412.2

182.8
168.8

368.1

157.4

359.8

(Billions of yen)

135.0

2013

2014

2015

2016

2013

（Fiscal year end）

2014

2015

2016
25

Review of Strategy
FY2013Strategic
phase

FY2014

Regeneration period－ Winning back trust after two consecutive
terms of posting losses －FY2015FY2016

Establishing growth foundation－ Efforts to reach No.1 in productivity
and safety －-Floating Offshore Wind

Organizational
restructuring-Customer center-Toda Bldg. Partners
Co., Ltd.
-Value Creation
Promotion Office-Overseas Business
Division-Group Control Office-Order settlement
based on operating
income ratio
Reform and-Proposal by structural
implementation reform WG-Visualization throughmanagement strategy
roadmap

Turbine Generator
Business Promotion
Committee-Diversity Promotion
Office-Investment &Development Division-Metropolitan Area Civil
Engineering Branch-Business Process
Reengineering, start of
ICT rebuilding-Activities by Vision Draft
PJT, drafting of global
vision-Restructuring ofimportant meetings*Organizational restructuring is the timing for discussion and finalization-Productivity No.1
Promotion Committee-Safety Management
Control Division,
Safety Management
Division-Goto FWP

-OWFC
-Toda Mirai
Foundation-Strategic Business
Promotion Office-Performance evaluation
based on laborproductivity-Promotion of utilizationand evaluation oftechnologies inpossession-Review of occupationalgroups, retirement
extension standards, etc.

-Get better with age PJ,
new business initiatives-Development of
Tsukuba Institute ofConstruction
Technology-Next Future Map, Mirai
no Arukikata

26

Initiatives for Continuous Growth
Investments for future revenue
Headquarters building reconstruction
Floating Offshore Wind Turbine Generator(Goto WF)
New real estate
Effective utilization of assets owned(Machinery and equipment center, etc.)
Sixth-order industrialization of agriculture

Investments for business foundation
Business Process Restructuring,
expanding education
Rebuilding ICT
Developing Tsukuba Institute ofConstruction Technology facility,
technology development
Improving treatment of employees andpartner companies, etc.
*Conceptual diagram

Low environmental Use of natural energy
load exterior system
Automated
Natural daylighting ventilation systemsystemLatent heat, sensible
heat separation typeair conditioning

Photo: Hoichi Nishiyama

Reconstruction of theheadquarters building

Floating offshore windturbine generator

Integrated profit
management system

Environmental Technology Verification
Block, Tsukuba Institute ofConstruction Technology

27

Promotion of Social Contribution Activity
through Toda Mirai Foundation
List of recipients of the 1st Grants for Activities to Promote Hiring and
Nurturing of Young Engineers
Company/organization

Based
in

SHOKUNINIKUSEIJUKU
1Project

Kagawa2 TAKENOBE Co., Ltd.

Osaka

Hidaka Region Human
3 Resource Development
CenterHokkaido

4 HIRAIWA TOSO Co., Ltd.

Tokyo

5 Tohwa Corp.

Saitama

6 NihonkutaiTokyo

Activity theme
Operation of workmen’s school, collaboration
with the community through the school andenlightenment in the industry
Operation of facility for development ofconstruction work engineers for hiring,
nurturing, development and acquisition ofcertificates
Training of civil engineers for construction
companies in the Hidaka area
Activities for hiring, nurturing of high school
graduates (enrollment in vocational training
schools, participation in external seminars,
etc.)
Training program aimed at nurturing andcontinuation of young engineers (in-house
OJT, utilization of vocational training facilities)
Creation of public certification system, theJapan Construction Skeleton Concrete
Placement Certificate, improvement of civilengineering workers’ wage and position

The second round of grant recipients to be
decided and announced on May 18*Honorific prefixes are omitted. In no particular order.

28

Recognition of Issues
At themomentMediumto longterm• Improve capacity in response to strong orderenvironment• Issues faced by the construction industry(reform of way of working, shortage of workers,social insurance, etc.)• Decline in construction investment anticipatedafter 2020
• Change in social structure due to dwindlingbirthrate and ageing of society• Impact of reconstruction of the headquarters
building (funds, human resources)*Demolition: FY2019, 2020; construction: from 2021 to 2023

Promote resource shift through productivity
improvement
Build revenue base29

Medium-term Issues and Direction of
Corporate Activities
Continuous growth we aspire to achieve
Anticipate changes in environment and formulate new2015 onwards - the medium medium-term management plan
-term management plan(added value, labor productivity)

Earnings targets achieved(ahead of the plan)2017 onwards - the new
medium-term management plan

Evolution of
productivity, safety
Resource shift

Acquire value throughdifferentiation
Intensified competition
from 2020 onwards

Raise the processing
volumeReconstruction of theheadquarters building

2015

2017

2020

2025

(fiscal year)30

2. What We Aspire to Be

31

30 Years in Toda’s View

Next Future Map
技術（T）

（
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間
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宙
開
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値
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トレーサビリティ

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スマートビルディング

リスマートグリッド

ティスマートインフラメンテナンス

カーボンフリー2025

国際分業の加速グローバルサプライチェーン

建設物に関するビッグデータの活用

サプライチェーンの短縮

II.Ⅱ.産業構造変化に伴う異業種共創の時代
Age of cross-industrial co-creationaccompanying
industrial structure changes

クラウド

産業構造が変化し既存のビジネスが崩壊、異業種と一

自動配送

ス
キ 処
ル 理
の
・ 早
経 さ
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験 正
・ 確
さ
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格

ドローン輸送エコシステムの確立

ウェアラブル

生産施設の小型化

シェアリングエコノミー

ソーシャルレンディング

Ⅰ.生産性向上とチャレンジの時代
実務面における生産性向上と企業のあり方を模索

世
界

資源
（R）

セキュリティリスクの増大

It is necessary to have thecompetency to turn diverse
information and technology into
added value and highly integrate it.
減災システム

建設物を通じたリスク軽減手法の提供

2025

モノ・供給者中心

2035

情報・エンドユーザー中心

世界人口の増加（70億人台）（高齢化2025年10％）

（年）
2050

産業構造の変化

均一化（貧富の差縮小・多様化）

ボーダーレス社会

都市間の格差拡大・国家間の格差縮小・中間層増加（中流層17％）

アフリカ諸国の発展（人口は欧州の3倍）

世界人口の増加（80億人台、増加分の半分はアフリカ）

高齢化（16％）建設需要の急増（新興国の建設量は現在までに建設された建設物の量に匹敵）
食糧難・水不足（2030年までに需要が各々35％増・40％増）

都市化（70％台へ近づいていく）
紛争の拡大・移民の増加

多極化・地域主義の拡大

安全保障の構造変化（

気候変動（21世紀末までに20世紀末から最大+4.8℃）

S）

New Field
新領域

アジアの台頭顧客のビジネス構造変化に対する柔軟な対応

公共領域における規制緩和

センシング技術FA（工場自動化）

独裁国家の民主化

異業種間の統合加速

エッジコンピューティング

マスカスタマイゼーション

社
会

Existing Field
既存領域

地域包括ケアシステム

As体となった価値提供の主流化
industrial structure changes 日本建設への外資参入
and existing
business collapse,AIoffering of value
together with 男女差別の解消
建設への異業種参入
ロボット
different industries
becomes mainstream
中間産業の崩壊

勢力図の書き換え（新興国の成長・先進国の凋落）Assembly
受注・組立

世界規模のマーケット・調達手段の開拓

バリューチェーンの短縮

労働分配率の低下施工における小型のロボットやドローンの活用想定する未来Construction

施工における大型ロボット等の活用

取引コストの低減

新興国の急激な成長（アジアの台頭）（中流層7％）

技術（T）

急速・簡易施工技術の進歩
企業のピラミッド構造崩壊

最適化の時代

建設物における環境・エネルギー技術の活用
スマート生産システム

カスタマイズ可能な建設物のニーズ対応

メガ企業とミニ起業家

企業人財の高度化

スマートフードチェーン

ビッグデータ

2015
社会
（S）

フィンテックスマートシティ

オーダーメイド性のさらなる向上

モノの最適化会社を超えた技能人財

オープンイノベーション

自然回帰地域の増加

利用者個人のニーズに対する汎用性の要求

ビッグ・アイデア・クラウド

個人知の集団による補完

仮想通貨

グリーン産業の成長

都市の商品化メガシティ・メガリージョン

統合型材料開発システム

地球環境情報プラットフォーム

ブロックチェーンの応用

）

量
と
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の 情
向 報
上 の
収
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・
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循環型社会の構築

ク
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公共情報システムの改善

タイムレス社会

Ⅲ.カスタマイゼーションの時代

技術革新による建設業の既存構造崩壊

行政の集団知化BEMS・HEMS

大型建物の小売化
芸術性の排除と追求

オフィスの不要化

おもてなしシステム

新たなものづくりシステム

高度道路交通システム

エネルギーバリューチェーンの最適化

病院の不要化

仮想空間ビジネス

立体映像・ＶＲ・ＡＲ

ブロックチェーンの建設への応用

一部簡易施工大型建設物の小売化

社会がコンパクト化する時代

仮想空間の主流化による建物の変化への対応

第４次産業革命（Society 5.0）

高個人レベルでの最適化

予防医学の主流化

個人×ナノデバイス

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Ⅳ.個人が最適化されていく時代

セマンティック・ウェブ

娯楽関連建設物の高度化への対応

2035

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高
度
情
報
化

低
度
行
動
を
理
解
し
た
Ａ
Ｉ

情
報
科
学
×
ナ
ノ
テ
ク
に
よ
る
革
命

（年）

ー

ー

自
動
自
律
化

遺
伝
子
操
作
仮
に
想
よ
空
る
間
予
と
防
現
治
実
療
世 効
発
界 率
達
的
の
連 な
動 エ
ネ
ル
ギ
幹
シ 細
ス 胞
テ 技
ム 術
の の
構 実
築 用
娯
化
楽 技
レ 術
ベ 革
ル 新

2050
人

ー

飛
Ｉ
高
行
ｏ
高 度
運
E
度 判
転
全 作 断
て 業 能
× の 力
イ 代 を
全 ン 替 保自 タ ロ 有動
ボ し
運 ネ ッ た転 ッ ト Ａト
Ｉ

資源（R）

成長の負債返済期（超高齢化社会・資本の老朽化）

規模縮小期

コンパクトな社会世界における日本の地位低下（2050年までにアメリカ以外の先進国は、中国・インド・ブラジル・ロシア・インドネシア・メキシコなどと入れ替わる）

日本

超高齢化社会（人口1.2億人台・高齢化率20％台）

人口の急激な減少（2030年人口1.2億人以下・高齢化率31.8％）

医療と年金の負担増加（社会保障費対ＧＤＰ比2012年22.8％→2025年24.4％）

人口減少（2050年人口1億人以下・高齢化率39.6％へ）
人財不足と人材余剰

新築の建設需要の減少（建設投資は2025年50兆前後で横ばいだが新築が減少）
国土基盤の維持管理・更新費増加（2030年は2010年比2倍の15兆規模）

32

都市化・無居住地域の増加（人口増加は東京・名古屋圏、半分以下となる地域が60%）
リニアの開通What We Aspire to Be

Create new values throughAssembly ＆ Collaboration
Evolution of No. 1 productivity, No. 1 safety
Take on challenge of achieving a 30% improvement in net salesof completed construction contracts per worker, no overtime,no accident

Acquisition of values through differentiation
Explore advantages, strengthen them further and diversify
revenue bases

33

Significance of Toda Group
Customers

Environment
Turning information
into added value

CultureAssembly

New business

Collaboration
Society

Technology
development

High integration of
information

Engineers

OutputOffer valuePartnercompanies(constructed structures, businesses)

34

Business Structure for Continuous Growth
Maximize group corporate value
Investment development
Branchbusiness
New business

BranchBranchPartner company

New business
Partner company
Group company
Overseas businessGroup company
Group company

Local subsidiary
Local subsidiaryArchitectural Construction Business Unit, Civil Engineering
Business Unit, Administrative Unit, Value Creation Promotion
Office, Information Center, Audit Office, Human Resource
Strategy Office, Risk Management Office35

3. Performance Targets

36Group Earnings Targets for FY2019(Billions of yen)

FY2016FY2017FY2019actuals

forecasts

Consolidated net sales

422.7

437.0

500.0

Architectural
construction (Japan)

291.7

298.0

340.0

Civil engineering (Japan)

100.5

97.2

115.0

Investment &development + new fields
Domestic groupcompanies

5.2

4.5

8.5

35.4

32.5

36.0

Overseas

9.6

17.2

22.0

(19.9)(12.5)(21.5)

Operating income

24.9

19.0

25.0

Operating income ratio

5.9%

4.3%

5.0%

Labor productivity

15.45

13.45

15.00

Consolidated eliminations(non-consolidated, millions of yen)targets*The new fields include energy-related business and other businesses* Labor productivity = Added values (Operating income + Overall labor cost)÷Number of employees (average
37
during fiscal year, including temporary staff, etc.)

Profit Target by Business(Billions of yen, %)FY2016FY2017

results

forecasts

Longterm
targets

FY2019targets

24.9

[100]

19.0

[100]

25.0

[100]

[100]

19.7

[79.0]

12.4[65.3]

16.5[66.0][50.0]

4.5[18.2]

5.2[27.4]

6.5[26.0][15.0]

0.4

[1.7]

0.5

[2.6]

0.4

[1.6]

[15.0]

1.5

[6.4]

1.2

[6.3]

1.6

[6.4]

[10.0]

Overseas(1.1)[-4.5](0.3)[-1.6]

0.0[0.0][10.0]

Consolidated
eliminations(0.1)[-0.7]

－

[－]

－

[－]

[－]

Operating income
Architectural
construction (Japan)
Civil engineering(Japan)Investment &development + new
fieldsDomestic groupcompanies*[ ] shows composition ratio.
*The long-term targets are the management directions, taking into account 2020 onwards.

38

Capital Efficiency, Shareholder Returns,
Investment Plan
[Capital efficiency,
shareholder returns]

ROE (return on equity)
Total return ratio

FY2016FY2017FY2019actuals

forecasts

targets

21.1％(9.7%)

11.0％(23.8%)

About 8.0％

7.0％
26.3％

*

About 30.0％*Total return ratio= Total shareholder return (total dividends paid ＋ total amount of treasury stock purchased)÷ Profit attributable toowners of parent*The figure in ( ) for FY2016 actuals is the amount calculated by multiplying profit before income taxes with effective statutory tax rate
*The total return ratio for FY2017 does not take into account purchase of treasury stock.
(Billions of yen)

[Investment plan]

Total for theperiodFiscal year
average

Investment
development(real estate, etc.)

42.0

14.0

New fields(energy, etc.)

24.0

8.0

Institute of Construction Technology
improvement, ICT reconstruction

6.0

2.0

Total

72.0

24.0

39

Performance Targets and How to Grasp
Impact of Measures
Labor productivity
Continuous growth(Millions of yen)

15.45 (Impact of resource
shift)
15.00

15.50 or more

(Impact of reconstructing
the headquarters building)

14.55

Evolution of
productivity, safety
Acquisition of values
through differentiation

13.45

Medium-termManagement Plan
2019

(extension ofcurrent status)

Competition intensificationfrom 2020 onwards
Reconstruction of theheadquarters building

11.54(demolition)

2014

Impact ofmeasures

2015

2016

2017

2018

2019

2020

(construction)

2021

2022

2023

2024

2025
(fiscal year)40

4. Business Policy

41Evolution of No. 1 in Productivity, No. 1 in Safety

Evolution of front loading

Development, applicationof new technology, ICT

Enhanced implementation structure (March 2017)
Architectural
Construction(Japan)BIM-CM Office
Front Loading Promotion Section

Structuralenhancement(branches)

New

Civil Engineering(Japan)ICT Promotion Section

New

Technology
Development Center

Construction Innovation Unit

New
42

Acquire values through differentiation
Create strengths corresponding to competitivenessin each field
Stable growth fields (area of specialty)

Offer values unique to Toda Group
Hospitals,
schools

Redevelopment

MountaintunnelLotdevelopment

Key reinforcement fields

Continuously win contracts, improve technologicalcapability
High value added
offices

Large-scale
infrastructure

Technology forcreating buildings thatget better with time

43

Strategic Businesses
Promote shifting resources to future income pillars(newly established the Strategic Business Promotion Office in March 2017)
Business

Main initiatives•Investment, operation of earning properties, lot development
projects, etc.
Investment •Promote Kyobashi 1-chome East Side development plandevelopment (reconstruction of headquarters building)•Utilize company assets including the machinery andequipment center

New fields•Commercialize floating offshore wind turbine generators•New energy, sixth-order industrialization of agriculture, newbusinesses•Strengthen offering of omni-azimuth customer values,Grouplife-cycle business (building management,
companies in construction
renewal, facilities, etc.)
Japan•Acquire special technologies through M&As, etc.

Overseas•Strengthen sales capabilities in Brazil and Southeast Asia
•Continuously win orders of civil engineering projects overseas•Deploy technologies the Group has
44Strengthen Management Base, Improve
Stakeholder Value

Human
Human
resources
resources

Boost diversity, variety, potential of
employees through reform for flexible
use of human resources and working
stylesFinancial
Financial

Improve cash flow and secure
appropriate level of internal reserve(about 40% of equity ratio)
Promote initiatives for building a

Sustailabil
Sustainability sustainable society led byityenvironmental conservation
45

Summary

Simplecontracts(business model)

Income from value
creation

Maximize corporate value of Toda Group
Stable income field・ Explore, strengthen advantages (hospitals, schools,
redevelopment, mountain tunnels, lot development, etc.)
・ Utilize assets of the Group (reconstruction of headquarters
building, machinery and equipment center)

Stable,sustainable

Challenge-for-growth field・ High value added offices, large-scale infrastructure,get-better-with-age technology, etc.
・ Floating offshore wind turbine generators, sixthorder industrialization of agriculture,
・ Overseas business, etc.

Toda Group

AssemblyGroup
company

Toda

Collaboration
No.1 in productivity,
No. 1 in safety

Single order,
contracts
Competition(Mobility of customers)

Specialconstruction46

A corporate group that makes
Your success possible

47