Results Briefing for theSecond Quarter Ended
September 30, 2022
November 16, 2022

TODA CORPORATION
1This material contains forward-looking statements
regarding Toda Corporation and the Group’s
corporate plans, strategies, and earnings forecasts.
These statements are Toda Corporation’s forecasts
based on information available as of the date of thematerial, which are subject to potential risks anduncertainties.
The actual results or developments may differ fromthe forward-looking statements due to changes invarious factors.

2

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

1. Results Briefing
General Manager
of Corporate Administration Group
Toshihiro Yamazaki41-1. Results Overview

5Financial Highlights■ Consolidated Net Sales:¥239.8 billion (+1.8% YoY)

Consolidated net sales increased 1.1% YoY to ¥239.8
billion, mainly due to increase in domestic groupcompanies business.

■ Operating Income:¥0.4 billion (△94.6% YoY)

Operating income decreased 94.6% YoY to ¥0.4 billion.
The material prices such as steel frames, etc. have risen
due to changes in the market environment. As a result, theCompany’s domestic construction business was recorded a
provision for losses on construction contracts.

■ Orders received (non-consolidated):¥182.9 billion (+3.4% YoY)

Mainly due to increase in domestic architectural
construction orders from the public sector, overall orders
increased 3.4% to ¥182.9 billion.
6

Results Overview(Billions of yen)
Consolidated
net sales

Apr-Sep
FY2021

Apr-Sep FY2022
Results％(YoY)

Amount
(YoY)

235.5

239.8

+1.8%

+4.2

Operatingincome8.5

0.4△94.6％△8.1

Ordinary
income10.7

3.7△65.0%

△6.9

7.5

3.2

△57.6%

△4.3

176.9

182.9

+3.4%

+5.9

Net profit

attributable to ownersof the parent

Orders received(non-consolidated)

7

[Consolidated] Results for Each Segment(Billions of yen)

Apr-Sep
FY2021

Architectural
Construction

Net sales
Segment
income(loss)

Civil
Engineering

Domestic
Investment
andDevelopment

DomesticGroup
Companies

Overseas
Investment andDevelopment

148.9

67.7

11.7

15.0

3.7

3.9

1.0

0.3

Environment
and Energy

Adjustment

1.1

0

△9.1

235.5

0.4

△0.5

△0.4

8.5

(2.5%)(5.9%)(8.8%)(2.3%)(33.9%)

Apr-Sep
FY2022

Architectural
Construction

Civil
Engineering

Domestic
Investment andDevelopment

DomesticGroup
Companies

Overseas
Investment andDevelopment

Environment
and Energy

Adjustment

Total

Net sales

148.2

67.7

12.5

21.3

1.3

0.7

△12.2

239.8

Segment
income(loss)

△4.7

4.7

0.8

0.3

0.3

△0.2

△0.8

0.4

(Profit margin)(Profit margin)(ー)(7.1%)(6.5%)(1.6%)(29.6%)

(ー)

Total

(ー)

(3.7%)(0.2%)

8

Main Orders Received
Ordering Parties

Name of Works

Building Construction
Civil Engineering

Maishima Development Specified
Purpose Company( Tentative name ) DPL Osaka Maishima
construction work

Lam Specified Purpose Company

ESR OS1 Data Center construction work

National Printing Bureau

Oji Plant new business building construction workand other works (construction)

The Kitasato InstituteKitasato University Sagamihara Campus for Facultyof Future Technology construction work

Tokyo University of Agriculture

The First High School, Tokyo University ofAgriculture, Secondary School building rebuilding
and development work Phase I

Central Nippon Expressway Company
LimitedShin-Meishin Expressway Kirigataki Bridge andother one bridge widening works (PC upper work)

Ministry of Land, Infrastructure,
Transport and Tourism Chubu Regional
Development Bureau

Susami Kushimoto road Higashiji tunnel and otherworks

Ministry of The Environment

Iitate Village temporary storage site restoration
work, etc. for 2022 through 2024

Ministry of Land, Infrastructure,
Transport and Tourism, Kanto Regional
Development Bureau

2022 National Route 20 Hachioji South Bypass Yakata
No.2 Tunnel work 2* Honorifics are omitted. Work names are abbreviated.

9

Main Carryover Works
Ordering Parties

Name of Works

Building Construction
Civil Engineering

Shibuya Station Sakuragaoka Exit
District Redevelopment Association

Shibuya Station Sakuragaoka Exit District Type 1
Urban Redevelopment Project

St. Marianna University School of
Medicine

St. Marianna University School of Medicine Sugao
Campus Renewal Plan

JAPANET HOLDINGS Co., Ltd

Nagasaki Stadium City Project(II and III sections)

Yokohama Shinko Partners Co., Ltd.

(Tentative name) Yokohama District Government
Office Complex maintenance and other works

Takashimaya South Area
Redevelopment Project

Takashimaya South Area Type 1 Urban
Redevelopment Facility and Building
Construction Work

Ministry of Land, Infrastructure,
Transport and Tourism, Kanto
Regional Development Bureau

Yokohama Shonan Road tunnel works

Central Nippon Expressway Company
LimitedTokyo Outer Ring Road
Main Line Tunnel (north bound) Tomei North
works

West Nippon Expressway Company
LimitedShin-Meishin Expressway Ujitawara Tunnel East
Works

Tokyo Metropolitan Government

Johoku Chuo Park retention reservour( Phase 1)work2* Honorifics are omitted. Work names are abbreviated.

10[Non-consolidated] Carryover Works（Billions of yen）

800.0

単位：億円
600.0

Architectural

Civil

Construction

Engineering

717.2

738.5
Overseas 4.5

Civil
Engineering
279.8

Overseas

Overseas 3.6

Civil
Engineering
263.6

Total

717.2

予測との差異Overseas 2.5

Civil
Engineering
259.2

400.0
Architectural

Architectural

Construction

Construction

432.7

471.2

455.4

March 2021

March 2022

September 2022

Architectural

200.0

0.0

Construction111-2. Details of Financial Results

12[Consolidated] Toda Group
Business

Construction

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brasil S/A

Chiyoda Kenkou Co., Ltd.

PT Tatamulia Nusantara Indah

Toda Road Co., Ltd.

Thai Toda Corporation Ltd.

Sato Kogyo Co., Ltd.

Toda Vietnam Co., Ltd.

38

companies

23

companies

Showa Construction Co. , Ltd.
3 other companies
Toda Bldg. Partners Co., Ltd.
Real estate

11 other companies
PT Toda Group Indonesia
Toda America, Inc.
1 other companies

Toda Finance Co., Ltd.
Toda Staff Service Co., Ltd.
Towa Kanko Kaihatsu Co., Ltd.
Other

Toda Energia do Brasil Ltda.
Architectural Construction

Offshore Windfarm
Construction Co., Ltd.

Domestic Group Companies

3 other companies

companies

Toda Investimento
do Brasil Ltda.

Goto Floating Wind Power LLC.

Toda Noubou Inc.

4

11

companies

Overseas Investment and Development
Environment and Energy

13

[Consolidated] Balance Sheets(Billions of

Assets761.1

Current
Assets386.5

Noncurrent△28.7

Cash and deposits
Accounts receivable
Securities

732.4

△41.7
+10.8
△9.4

Current
Assets349.3△37.1
Buildings and structures +3.0
Machinery, vehicles, tools,
furniture and fixtures
+1.3
Land
+1.8
Construction in progress +6.9

assetsNoncurrent

yen)

732.4

Notes and accounts payabletrade△7.4
Short-term loans△12.6
Commercial papersliabilities△20.0

Current
liabilities
254.7

△44.4
Noncurrent

Corporate bonds+9.9Long-term loans payable +0.9

143.0

liabilities
155.1

+12.0

187.8

Investment securities △5.7

assetsand other

200.7

195.2

March 2022

September 2022

129.2%△28.7(Billions ofassets△5.4

and other

Current
liabilities
299.1

liabilities

Investments

Investments

761.1

Noncurrent

+13.9

173.8

assetsyen)

Liabilities and Net Assets

Current Ratio 137.1%+3.6

Net assets
319.0

Net assets

Retained earning△1.8
Foreign currency translation
adjustments+1.6
Non-controlling interests+4.2

March 2022
41.6%

322.6

September 2022

Equity Ratio

43.1%
14

[Consolidated] Change in Cross-Shareholdings（Billions of yen）

350

Book

Valuation

Value

Difference

118

300
250

18,917200

29,178
101

130.4

100

Valuation

Valuation

Difference

Difference

113.4

73.9

50
0

Nikkei Stock Average
Share price（yen）

27,821

167.3

150

Number of stocks

30,00025,93725,000

98

96

158.1

155.8

15,000

Valuation

Valuation

Difference

Difference

10,000104.5

20,000

103.3

5,000

Book

Book

Book

Value

Book

Value

Value

56.4

Value

53.9

53.6

52.5

Value

March 2020

March 2021

March 2022

September 2022

March 2023

Book

0

(forecast)
Decreased
number of stocks

11

21

12

6

13

Sales amount(Billions of yen)

2.8

5.7

4.5

1.4

ー
15

[Consolidated] Change in Interest-Bearing Liabilities
Short-termLong-term（Billions of yen）

220.0
179.3
152.6

151.0
Long-term

111.8

84.2
Long-termLong-term

82.7

220.0

95.1

Long-term
62.3
Short-term
Short-term
49.4

March 2020

Short-term

95.1

68.2

March 2021

Short-term
57.5

March 2022

September 2022

March 2023
(forecast)

Ｄ/Ｅ ratio

0.41X

0.49X

0.57X

(D/E ratio = Interest-bearing debt/Equity)

0.48X

―
16

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

12.50

Architectural

Civil

Overseas

Construction

Engineering
Overseas

10.00

9.29

0.03

Civil
Engineering

7.50

2.49

+6.63
Overseas

5.00

1.01
Architectural

2.75
2.50
Civil
Engineering

0.00

1.58

March 2021

Construction
0.16

Overseas

Architectural

2.66

0.05

Civil

ArchitecturalEngineering
2.19

March 2022

Construction
6.77

Construction
0.41

September 202217

[Consolidated] Change in SG&A
Consolidated
Non-consolidated
SG&A Ratio（Billions of yen）

30.0

10.0%
8.1%

8.0%

8.0%

7.2%
20.0

10.0

0.0

6.0%

Consolidated

Consolidated

Consolidated

17.0

17.0

Non-consolidated

Non-consolidated

Non-consolidated

15.1

14.9

16.7

September 2020

4.0%

19.3

2.0%

September 2021

September 2022

0.0%

18

[Consolidated] Statement of Cash Flow
(Billions of yen)

△51.5

Cash and cash
equivalents at
beginning of period
129.3
Increasein funds
Decreasein funds(March 31, 2022)

Accounts payable-trade
Income taxes paid
Accounts receivable-trade

△13.4
△5.9
+4.5

Cash and cash
equivalents at end of

Operating CF Investing CF▲ 8.3
Financing CF▲ 12.0period77.7(September 30, 2022)▲ 32.2

Property, plant and equipment △11.4
Investment securities+0.4

Commercial papersliabilities
Loans payable andIssuance of bonds
Cash dividends paid

△20.0
△7.2
△4.9
19

1-3. Earnings Forecasts

20

FY2022 Earnings Forecasts

FY2021(Billions of yen)

FY2022(Forecasts)

Change (YoY)

Consolidated
net sales

501.5

540.0

7.7%

+38.4

Operatingincome24.3

12.6△48.3％△11.7

Ordinary
income28.1

16.7△40.6％

△11.4

18.5

14.7

△20.8％

△3.8

452.2

453.0

0.2%

＋0.7

Profit attributable toowners of the parent

Net Income

Orders received(non-consolidated)

21

[Non-consolidated] Earnings Forecast for Construction Business(Billions of yen)Orders Received forConstruction(Billions of yen)
Net Sales of Completed
Construction Contracts(％)
Gross Profit Margin on Completed
Construction Contracts
Civil

452.2

453.0

2.7

1.5

128.6

119.5

Overseas

430.9
3.7

Civil
engineering

144.8

engineering 18.0

445.0

Overseas

Civil

16.0

engineering

2.8

15.0

13.2

129.7

Civil
engineering

Total
11.6

Total
9.6

Architectural

320.8

332.0

Architectural
construction

282.4

312.5

Architectural
construction

construction

12.0
9.0

10.6
Architectural

6.0

construction
7.0
March 2022 March 2023

March 2022 March 2023

(forecast)(forecast)March 2022

March 2023

3.0

(forecast)22

FY2022 Non-consolidated Earnings Forecasts
Amount (billions of yen）

Profit margin (%)

463.5

Net sales
Gross Profit

47.6

10.3

Profits in the construction
business

42.8

9.6

[Domestic architectural construction](21.8)(7.0)[Domestic civil engineering](20.8)(16.0)[Overseas]

(0.2)

(7.1)

Profits in investment development
business and other

4.8

25.9

Selling, general and administrative
expenses

38.3

Operating income

9.3

2.0

Ordinary income

13.0

2.8

Income taxes
Profit

5.7
12.3

2.7
23

1-4．Shareholder Returns

24

Shareholder Returns
 Dividend forecast
🔸🔸From the perspective maintaining of for dividend on
equity (DOE) at 2.5% or more, the Company plans to keep a

dividend of 27 yen per share (including an interim dividend 13.5
yen per share) for the fiscal year ending March 31, 2023.
Shareholder
Return Policy(As of March 31, 2022)(As of March 31, 2023)

DOE

2.5％ or more

2.6％

2.6％

Total return ratio

40.0％ or more

43.0％

57.1％

FY2021 Actual

FY2022 Forecast

Note : The Company will flexibly acquire treasury stock after comprehensively
considering the stock price situation, improvement of capital efficiency, changes inthe business environment, etc.

🔸🔸In order to strengthen the Company’s management base andimprove the Company’s return on equity (ROE), the Company willcontinue to retain the necessary internal reserves for growthinvestment , aiming for shareholder returns through direct profit
returns and medium- to long-term share price increases.
25

２．Progress of the Management Plan

President and Representative Director
Seisuke Otani

262-1. Earnings outlook

27

Earnings Outlook
FY2021Results

Profitability

Capitalefficiency

Productivity

Shareholder
returnFY2022
Forecast at
beginning of
the term

Current forecast

FY2024
TargetConsolidated net sales¥501.5 billion¥520.0billion¥540.0 billion¥600.0 billion

Operating income¥24.3 billion¥20.5 billion¥12.6 billion¥33.0 billion

Operating margin

4.9%

3.9%

2.3%

5.5 ％

Profit¥18.5 billion¥18.8 billion¥14.7 billion¥26.0 billion

ROE

5.9%

6.0%

4.7%

8.0 ％

¥14.58 million¥13.50
million¥11.40 million¥15.0 million

DOE

2.6%

2.6%

2.6%

2.5 ％

Total return ratio

43.0%

44.1％

57.1％

40.0％

(Annual dividend)(26.0 yen)

（27.0 yen）

(27.0 yen)Labor productivity(non-consolidated)*Labor productivity = Added value (operating profit + total labor cost) / Number of employees (yearly average, including temporary workers, etc.)*DOE (dividend on equity) = Dividend per share / Net assets per share at end of term
*Total return ratio = Total shareholder return (total dividends + total shares buyback amount) / Net income attributable to owners of the parent

28

Net Sales / Operating Income by Business Segment
FY2021 Actual

FY2022
Forecast at
beginning of theterm

Current forecast

FY2024
Target¥501.5 billion¥520.0 billion¥540.0 billion

Architectural construction¥304.6 billion¥322.0 billion¥325.5 billion¥360.0 billion

Civil engineering¥147.9 billion¥130.0 billion¥130.0 billion¥145.0 billion¥24.4 billion¥23.2 billion¥42.0 billion¥50.0 billion¥45.1 billion¥54.0 billion¥52.0 billion¥55.0 billion

Operating income¥24.3 billion¥20.5 billion¥12.6 billion

Architectural construction¥7.8 billion¥5.1 billion-¥2.1 billion¥10.0 billion

Civil engineering¥11.9 billion¥11.1 billion¥10.5 billion¥14.2 billion¥3.8 billion¥2.1 billion¥3.0 billion¥5.3 billion¥1.9 billion¥2.2 billion¥1.2 billion¥3.5 billion

Consolidated net sales

Strategic

Investment
development/Environment &energyGroup companies

Strategic

Investment
development/Environment &energyGroup companies*Consolidated net sales and operating income reflects elimination of intragroup transactions¥600.0 billion¥33.0 billion

29

Reason for revision of forecast (difference with initial forecast)Investment
development
Environment &energyArchitectural
construction

Civilengineering(Billions of yen)

520.0

3.5

18.8

Elimination ofGroup
company
consolidation

-2.0

-0.3

540.0

Architectural
construction(Billions of yen)

20.5

Investment
development
Environment& energyGroupcompanies

00.9-7.2 -0.6+20.0

Forecast at beginningof the term

Elimination ofGroup
company
consolidation

Civil
engineeringGroupcompanies

12.6
-1.0

-¥7.9 billion

Current forecast

Upward revision of ¥20.0 billion due to increase in investment
development and net sales from TATA becoming full subsidiary.

Forecast at beginningof the term

Current forecast

Downward revision of ¥7.9 billion due to reporting provision for loss
in architectural construction contracts and increase in SG&A
expenses (R&D expenses, etc.)
30

Measures against deteriorating net income

Measures

Background of downward revisionConstruction costs increased inseveral projects in the architectural
construction business due to therise in material prices caused bychanges in the market environment
Recorded a provision for losses onarchitectural construction
contracts in preparing working
budget; resolved impact onfinances(Secure additional/revised works)

Continue discussion on additional
contract for price increase and VE(value engineering) proposal(Central management of cost information)

Cost Control Center established(August 1, 2022) to centrally manage
estimate and procurement
information, and implement stricter
screening(Correction of review process)Strengthen cost control before startof architectural construction, early
appointment of Pm/work manager

31

Architectural construction: carryover works
2Q FY2021

2Q FY2022(Unit: % *[contract amount] )Stores 1.5

Stores 0.3
Leisure 0.5
Other1.6
Accommodations

Leisure 0.3
Other 1.7

Plants/power

3.2

plants 4.1
Accomodations

Warehousing
and distribution

5.0

25.5

Office and［106.6］

vernment buildings

Carryover Works

14.9(Sep. 30, 2021)
Education,
research［19.5］［34.6］

7.6

Housing

15.5［64.7］

15.5［¥64.9 billion］

2.9［¥12.0 billion］

Healthcare and

12.6

16.1
［67.2］

Redevelopment

Warehousing anddistribution

4.3

Redevelopment

welfareand cultural

Plants/power plants
7.8

Other

¥418.5 billion［62.5］

Other(Unit: % *[contract amount] )24.3

Housing
11.8［54.1］

Healthcare andwelfare［56.6］
12.4［110.8］Carryover Works¥456.9 billion(Sep. 30, 2022)

Education,
research andcultural

Office andGovernmentbuildings
21.6［98.7］

16.5［75.2］［52.8］*Above graph does not include proprietary construction contract (2Q FY2021: approx. ¥57.0 billion, 2Q FY2022: approx. ¥57.0 billion)

32

Civil engineering: carryover works
2Q FY2021

2Q FY2022(Unit: % *[contract amount] )Soil and water

Tunnel24.6

Soil and water Other
conservation 1.7 12.6

1.0

Roads

［16.4］

Carryover Works［27.9］

Renewal¥268.9 billion

Renewal (as of September
30, 2021)

energy16.2

Water and
［43.6］
sewageRailways
18.7［50.2］

energyShield20.3［54.6］

12.8［34.4］

Other
8.6

Bridges / elevated bridges
5.5[¥23.2 billion] [¥14.7 billion]［82.2］

Roads

6.3［74.2］

31.6

13.1

Land development

27.6

development

Tunnelconservation Other［66.2］

Land
10.4(Unit: % *[contract amount] )33.7

Carryover Works ［87.6］¥260.3 billion(as of September
14.0
30, 2022)［34.7］ Water and
Railwayssewage18.6
13.3
Shield
［48.4］
15.2
Other ［36.5］［39.5］
11.6［30.1］
Bridges / elevated bridges
7.2［18.7］*Above graph does not include proprietary construction contract (2Q FY2021: approx. ¥1.0 billion, 2Q FY2022:
approx. ¥18.0 billion)33

Non-financial Targets(Quantitative evaluation Indicators)
CO2 emissions
Scopes 1+2E

CO2 emissions
Scope 3

G***

Forecast (Actual)

FY2024
TargetReduction rate (vs FY2020）

-0.4

-20.2

-16.8 %

Basic unit (100 mil yen)

16.5

15.5

11.2 t-CO2

Reduction rate (vs FY2020）

-0.7

－

-10.0%

739.6－

540.7 t-CO2

3.4－

3.5 t-CO2

Category 1 basic unit (100 mil yen)
Category 11 basic unit (sqm)S

FY2022

FY2021
ActualTotal accident
frequency rate

*as of September 30

2.88

4.98

1.00

Accident
frequency rate

*as of September 30

0.35

0.48

0.10

6,884

5,450

7,500 yenLabor productivity per hour

Scope 1: Direct CO2 emissions from the use of diesel, etc.
Scope 2: Indirect CO2 emissions by power plants for use of purchased electricity/heat
Scope 3: Indirect emissions other than Scopes 1 and 2
Category 1: Emission at time of construction material manufacturing, Category 11: Emission during period of operation of constructed buildings
Basic unit: Scopes 1 + 2: Emission per ¥100 million net sales
Category 1: Emission per ¥100 million transaction amount, Category 11: Emission per 1 m2 completed gross floor area
Total accident frequency rate = Total occupational accidents/total working hours (million hours)
Accident frequency rate = Number of occupational accidents requiring 4 or more days of leave / total working hours (million hours)
Labor productivity per hour = Amount of added value (operating income + total human resources expenses) / Number of employees / average total working hour34

2-2. Investment Plan Progress

35

Investment Plan and Capital Allocation *Announced on May 17, 2022
Utilize interestbearing debt

*Maintain financial
soundness

Cash Allocation Policy(FY2022 - FY2024 aggregatedamount)D/E ratio

0.8 or lessSales of shares
held for strategic
reasons¥10.0 billion+ p.a.
(Market value basis)

Income taxes
Increased interestbearing debt
Sale of shares held forstrategic reasons¥30.0 billion +Sale of Assets(Cash generation andreinvestment)¥67.0 billion

Real estatedevelopment¥160.0 billion

Environment/¥30.0 billion
energy etc.
Investment in intangible assets
Strengthen business platform/enhance
non-financial assets

Investment Plan
¥225.0 billion

Sale of Assets¥67.0 billion

Investments for growthBusiness area expansion/ increasevalue of assets

HR¥3.0 billion

Technology R&D¥20.0 billion

Digitalization¥9.0 billion*SG&A + assets
Growth investment¥190.0 billion
Intangible assets¥32.0 billion
Machinery & equipment¥3.0 billion

Machinery & equipment
Machinery &equipment¥3.0 billion

Operating income¥80.0 billion +Cash generation

Shareholder return

Shareholder return(Cash dividends/sharebuyback）

DOE

2.5% or more

Total return
ratio

40.0% or more

Cash allocation(Source of investment capital)*Operating income after considering proceeds from real estate for sale, depreciation and amortization, etc.

36

Investments for growth

Real estate development

Environment/energy, etc.

M&A, etc.

Promote growth investment towards business area expansion andrevenue stability
Investment/Sale

Growth Investment(Billions of yen)(Billions of yen)

190.0
30.0

(Incl. offshore wind:
20.0

Major investments (FY2022
actual/scheduled)

58.0
4.0
12.0

Net investment: 45.5

Toyota Butsuryu Soko
(investment/sale)

42.0
160.0
58.0
12.0

4.0

(Incl. New Toda
Building: 60.0)-12.5(Incl offshore wind: 10.0)

42.0

-12.5

(Incl. New Toda
Building: 11.0)

FY2022

FY2022-FY2024[Projected][Plan]Net investment = Investment amount - Collected amount(Investment)(Sale)FY2022 Projected

Brazil onshore wind *Photo during Phase 1
Brazil onshore wind (Phase 2) scheduled
to start construction in May 2023, start
operation in August 2024

37

Enter private REIT/asset management business
Promote capital efficiency and real estate business growth
Originate private REIT by 2025 and aim early achievement of ¥100.0 billion AUM

Leasing/tenancy
New construction/renovation/ landdevelopment

Asset Management
Property saleLand acquisition
Building acquisition

Investment capital recovery

Benefit of real estatecontingent revenue

PrivateREIT

Private fund(nonconsolidated)Promote capital efficiency
and real estate businessgrowth through circular
model



Expansion of cooperation
among the three businesses:
Construction, Civil
Engineering, and Investment& Development(Medium-Term Target)

8%+ ROE

Acquire older properties
AM, PM, BM
Property operation(management/operation)

Financing“Same boat” investment with investors
38

Investment in intangible assets
HR

Technology R&D

Digitalization

Enhance initiatives to strengthen business platform/enhance nonfinancial assets
Intangible Asset Investment

Main Technology R&D(FY2022 News Release)

32.0(Billions of yen)

9.0

20.0

8.5

Tower crane 3D automatedguiding system

Worker safety monitoring
system

3.5
4.0

3.0

1.0

FY2022

FY2022-FY2024[Projected][Plan]*Figures are total of SG&A and assets

DX service/store management DX tool for construction machinery
leasing industry (CVC)39

Reestablishment of Evaluation/Remuneration System
Rebuild evaluation/remuneration system that promotes job satisfaction reform Redefine roles and realize flexible

 Promotion of younger/female employees

to key positions, recruitment, andtreatment
retention of external resources Eliminate seniority elements (evaluation
Realize allocation/treatment as/ treatment based on work / roles /“investment” for contribution/expectation
contribution)

Evaluation/treatment
based on job / roles /contribution

Appropriate treatmentof superior talent Secure transparency/confirm own

positioning

Open wage system

Framework
renewal(Scheduled for implementation fromFY2023)

Respond to internal / externalchange inenvironment/employment views
 Response to new/strategic businesses and new jobs/roles Response to diversity (human resource/workstyle/values,etc.) Flexible response to organizational reform and number of
positionsMarket competitive
treatment Secure appropriate level compared withindustry peers and other industries

 Build model annual salary according to life plan40

2-3. Priority Area Initiatives
New Toda Building

Overseas business

Renewable energy

41Strategy road map
Promote focus areas towards revenue contribution from FY2025 onwards
Phase1(FY)Core Business(Architectural Construction/
Civil Engineering/
Strategic Business)

2022

-

Phase2
2024

2031

Enhance experiential value (customer experience)

Overseas business

Enhance local business/
strengthen alliances

Renewableenergy businessPriority BusinessNew building
construction

Floating
complex

To 2030150th
anniversary

Promote Smart Innovation

New Toda Building

Floating
offshore wind
power
generation

To 2027

Phase3

Build wind farm
2,100 kW×8 turbinesCompletion

Start
opera
tion

Full-scale operation/reachprofitability
Create stable
growth/synergies

Realize
coCreationsociety

Stable operation/deploy to
new areas

Initiatives to realize floating complex
42

Technology Strategy for New Toda Building
Building Size: 3 basement floors, 28 aboveground floors, 1 penthouse floor.
Building Height: 165m
Structure: Earthquake-resistant core-wallstructure, RC-SRC-S structure
Gross Floor Area: 94,813m2
Site Area: 6,147m2

New Toda Building

Visualize the wholebuilding to communicate
our technology
Deploy highest level earthquake
resistanceConstruction Labor saving/use of safety
improvement technologies
Environment Promote environmental load
reduction/decarbonization
Structure

Contribute to future orders

16 patents

P06310648 P06888944 P06879786 P06875155
P06684616 P06971895 P06208448 P06345024
P2021-042582
P2021-152326 P2020-138303
P2022-050977
P2020-159080 PA2021-118816
PA 2022-016656 PA 2021-118833

3 technologies with performance evaluation

Artist’s Impression

SuperCFT : URABAN HOUSING EVALUATION CENTER Structural evaluation(S17007)
TO-RCSB: General Building Research Corporation (GBRC) Performance
Evaluation Certificate No. 13-15
TO-BRB: The Building Center of Japan (BCJ Evaluation) - ST0272-01

43

New Toda Building

Visualization of Entire Building

Use as a place for resolving customers’ issues
Secure a tour route to observe
our unique technology

Establish technology showroom/museum
Continuously improving terrace
Green (pillar)
Green (floor)

Rooftop Plaza

Ceiling*Design underconsideration

R&D / Co-creation(Observation
tour route)Cafe / Workshop
FutureMachineRoomChuo-dori Ave. side

Conferenceroom

Issue Resolution
Case Studies by
Use

Bench

Reception

Area signage

History

Conference
room
Counter seats

Corporate Profile

How to create a building Reception(New Toda Building)
Building Information

Continuously improving voidMuseumTerrace

Conference Room

Art Square

CommonLobby

44

New Toda Building

Structural Technology

Utilize “highest level earthquake resistance” achieved
for the next-generation designCore wall

Core-wall

Mass damper forcontrolling verticalvibration

Hybrid outrigger beamDamping beam
Exterior thin S column

Becomes an axle that
secures rigidity and sharethe earthquake force

Rooftop greening massdamperBelt truss

Laminated natural rubber

Large earthquake-readyoil damper

Mass damper for controllingvertical vibration
Super-CFT pillar featuringhigh strength
Next generation
seismic-isolated
construction method

Trigger part

Φ1800 Laminated natural
rubberOil damper with
automatic restoration
trigger mechanism
45

New Toda Building

Construction technology

Promote safety and labor saving in construction by deploying automated construction
technologies
Use of drones for construction progress and quality control
Automated
tower crane
operation

Automatic
measurementof collapse andcontrol of steel
columns during
erection
Easy temporary
fixing of steel
columns andlarge beamsteel frames
Control rotationof materials
lifted by a craneAutomate
mounting anddismounting ofloads
Automatedsteel frame
welding

Automatedindoorinspection withdronesAutomatedsteel frame
Tower crane 3D
automated guiding
systemRemotely monitor the climbing action of the self-climbing
formwork

Climbing framework(DOKA)
Monitoring system

System for temporary use ofpermanent elevator
Waterproof
masking(Temporarydeck)
Top working
platform andlifting unit
(Developed by
Toda
Construction)

Automatic steel
column measuring/collapse adjustment
systemElastic beam
(Developed by
Toda
Construction)
Climbing unit
Machineryroom unit

Temporary bolt-freejoining(Gachanto Pin)

Elastic beam
(Developedby TodaConstruction)

Rotation control
for lifted material
Permanentelevator
Automated
mounting/dismounting

Automated welding
robot

Vertical/horizontal automated delivery
systemEarly
installation of
permanentelevator to be
used asconstruction
work elevator

Delivermaterials andequipment toposition with
automatedguided vehicle
(AGV)

46

New Toda Building

Environment-Friendly Technology

Achieve both environmentfriendliness and high functionality

Rooftopgarden“ZEB Ready”
certification（Typical environment-friendly technologies）
Upper floorbank(Tenants)

CASBEE Superior (S)grading

Middle floorbank(Tenants)

OfficeBusiness Support Facility
・ Cafeteria
・ Lounge
・ Rental conference rooms

9

10 Cogeneration system

3

Inverter cooling tower fan

11 Highly efficient LED lighting

4

Green wall heat control

5

Eco-void natural ventilation

sensor automatic
12 Daylightdimming

operation with ESP
13 Efficientbusiness

6

Daylight shield with exterior
fins

7

Exterior high-insulation glassand floor hybrid radiant15 Wallheat transfer air conditioning

8

Electric blinds

16 Geothermal HP chiller system(Natural ventilation)(Simulated ventilation)

14 Highly efficient equipment

Lower
floor bank

Necessary ventilation7,200m3/h(Toda Floor)

Outdoor terrace, cafe

MuseumHall andconference rooms
OfficeGallery complex
Restaurants, convenience store
Shops, cafe

Entrance

Plaza Common
lobby

Loading zone
Car parking, driveway

Mechanical car parking

Earthquake
resistancefloorsNaturalventilation
Floor

MachineRoom

Latent/sensible heat separation
air conditioning system

1 Solar power
2 Hydrogen storage system

27F
26F
25F
24F
23F
22F
21F
20F
19F
18F
17F
16F
15F
14F
13F
12F
11F
10F
9F
8F

Disaster(summer)
災害時(夏期)Disaster(interim period)
災害時(中間期)

0

10,000 20,000 30,000
Ventilation [m3/h]

47

New Toda Building

Full view of the construction site (as of September 28, 2022)

48

Positioning of Overseas Business in Toda Group

Overseas Business

Sustainable development of society /improvement of corporate value(Social value x Economic value)-SignificanceImprove customer loyalty

Capture overseas growth capacity

Seamless domestic and overseas customer
serviceOne-stop support for construction andmaintenance of factories, etc., for overseas
business development by Japanese companies(important customers)
Japanese companies

Investment of resources in sustainable growth
Expand business by entering growth markets,
acquire new knowledge as well as revenue
Local
construction

Development /EnergyODA /Overseas civilengineering

Basic stance on strategies and measures Localization strategy adapted to the market/customers in each country / area (strategy,

adaptation)
 Governance for managing diversity (visualize management, appointment / evaluation /remuneration of directors)

49

New Overseas Business Strategy

Overseas BusinessRealize growth through collaboration with overseas partners
Lesson of Brazil
Difficulty adjusting tochange in the market
Started supporting overseas
business development by animportant customer
Decrease in investment by
Japanese companies(Stalling of new businessdevelopment)(From “new construction” to“maintenance and renovation”)

Business deterioration from costcompetition with local generalcontractors

Corporate weakening
Avoid falling into thesame pattern inThailand and Vietnam
businesses

Overseas Partners

Toda Corporation /(TATA / local general contractors,
sub-contractors)

Subsidiaries

Construction track record andcustomer platform in Japan

Collaboration

Provide quality and satisfaction

Understanding of local
commercial customs/cultures
Strong local supplier network

Credibility as a Japanesegeneral contractor

Locally suited costcompetitiveness

TATA collaboration as the leading model
Support Japanese companies entering business in Indonesia
Maintenance/renovation of buildings constructed by Japanese/other companies
Initiatives on non-Japanese and local construction

Apply to M&A/business affiliation strategy inThailand, Vietnam, etc.
New Overseas Business Model- Sustainable growth through localization 50

Overseas Business

Made TATA a consolidated subsidiary - Creating Synergies

By making TATA a consolidated subsidiary, promoting growth
and revenue expansion as TODA Group
Promote business development
utilizing TATA’s corporate strength(Strategic needs and corporate abilities)(Cooperate in market cultivation anddevelopment business)

 Increase presence ingrowth market ofIndonesia
 Acquire premium local
partner for investment
business(development/PPP)Technology /expertiseJapanesecustomerplatform

Expand development
business*TATA: PT Tatamulia Nusantara Indah(Strategic needs and corporate abilities)

 Capture construction

Promote business growth withToda’s technology and management(Human resource exchange, customer
referral)investment/orders fromJapanese companies
 Enhancetechnology/capital forentering civil engineeringbusiness
Local
presence /network

Supply chain

Expand construction
business

51

Renewable energy

Commencement of Offshore Wind Turbine AssemblyConstruction gaining full momentum towards start ofcommercial operation (January 2024)
First of the eight floating generator
was completed and loaded on thesemi-submersible spud barge,“Float Raiser.” On October 8, 2022, it sailed out of
Fukue Port towards the waters off
Kaba Island to commence offshore
assembly of the wind turbine.


Wider area map(2) Northernshores off
Kaba Island(1) Fukue Port Pier

Goto City
Fukue Island(3) Final location

Larger map of Fukue Port

(1) Fukue Port Pier
(Building yard)

Floating generator loading52

Unit No.1 Float-Off to Raising
STEP1

Renewable energy

STEP2

Float-off

STEP3

Swaying immediately after raising

Raising to about 40°

STEP4

Completed raising53

Renewable energy

Increase revenue by expanding marine area anddeveloping larger wind turbines
Offshore wind power (medium- to long-term installation
potential)

Hokkaido
2.89-6.79 million kW

Approx. 91 million kW

1.50-5.02 million kW

Approx. 34 million kW

TohokuRegion(Potential based on natural conditions by Japan Wind Power Association)(Areas currently considered by businesses for development)

4.26-5.57 million kW
3.76-5.07 million kW

Approx. 7.7-15.0 million kW(Areas where businesses have partially started on local coordination)

Japan Sea side
(HokurikuChugoku)

3.96-4.76 million kW

Approx. 2.8 million kW(Promising areas for the first round and second round)
KyushuRegion3.63-7.72 million kW
0.70-1.80 million kW
0.20-0.51 million kW

1.11-1.91 million kW

2.23-2.35 million kW

Pacific Ocean side
(Kanto-Shikoku)

5.88-9.20 million kW
0.67-0.79 million kW
0.37 million kW*Source: First Meeting of Public-Private Council on Enhancement of Industrial Competitiveness for Offshore Wind Power Generation, July 2020 (Ministry of Economy, Tradeand Industry, Ministry of Land, Infrastructure, Transport and Tourism)
Trial calculation based on research and interviews with major companies

Artist’s Impression

54

55

Initiatives on Creation of Regional
ValuesSixth sector industrialization of agriculture56

6th sector industrialization of agriculture

Development of New Business involving Investment and Development:
Achieving Sixth Sector Industrialization of Agriculture

Top-class track record in Japan
Deploy to land development, architectural
construction, investment/development
business••
Chuo
Expressway

Resolve regional issues and create regional value
Diverse business development including architectural
construction and investment⇒ Build the TODA brand strength
SUSTAINABLE
CITIES ANDCOMMUNITIESAFFORDABLE AND

One-stop construction for land development
Support for agricultural land aggregation/largescale agriculture

1.
2.
3.
4.
5.
6.

Misato Interchange southern area land readjustment project (LRP)
１．三郷インター南部土地区画整理事業
Wako North Interchange area LRP
２．和光北インター地域土地区画整理事業
Nissai eastern area LRP
３．入西東部土地区画整理事業
Atsugi City Morinosato east LRP
４．厚木市森の里東土地区画整理事業
Kawamuko-cho south agricultural area LRP
５．川向町南耕地地区土地区画整理事業
Joso City Ken-O Expressway Joso Interchange surrounds
６．常総市圏央道常総インターチェンジ周辺地域整備事業
development project
７．三郷インター南部南土地区画整理事業
7. Misato Interchange southern area south LRP
８．所沢市北秋津・上安松土地区画整理事業
8. Tokorozawa City, Kita-Akitsu/Kamiyasumatsu LRP
９．（仮称）所沢市若松町土地区画整理事業
9. (Temporary name) Tokorozawa City, Wakamatsu-cho LRP
１０．（仮称）和光北インター東部地区土地区画整理事業
10. (Temporary name) Wako North Interchange Eastern area LRP
１１．厚木市酒井土地区画整理事業
11. Atsugi City, Sakai LRPCovers 620ha
around Japan(Including
current
applications
for approval)

QUALITYINNOVATION AND
INFRASTRUCTUREDUCATIONE
PARTNERSHIPSFOR THE GOALSBusiness
promotion

RESPONSIBLE
CONSUMPTION ANDPRODUCT
ION

Create regionalvalue

Participate in regions at stageof setting business concept
Prior acquisition of site

CLIMATEACTIONsaving/labor saving in the region

INDUSTRY,

Investment to attract
companies participating inbusiness operation

LIFE ON LAND

Introduction of renewable energy

Infrastructuredevelopment

Examples of land readjustment
projects in metropolitan area

CLEAN ENERGYDECENT
WORK ANDECONOMICGROWTH

Cooperation withresearch andeducational institutions
Human resource
development for regional
industries

Regional
supportCollaboration with local businesses
Revitalization of regional corebusinesses
Support establishment of
employment environment©2022 TODA CORPORATION

57

6th sector industrialization of agriculture

Challenge Creating the Future for the Region around Sixth
Sector Industrialization of Agriculture
Createthe new Joso City brandPrimary
industryNew
agriculture
model

Secondaryindustry

Production/logi
stics business

Tertiary
industry
PPP forcommerce

Use ofrenewableenergyandSocialcontribution

58©2022 TODA

6th sector industrialization of agriculture

Status of Non-Farmers with Land Ownership(Joso City, Ibaraki Prefecture)
Up to 40s

～40歳代

Areas around Ken-O Expressway Joso
Interchange Number of land owners: about 100
 About 80% are aged 60 or above Only 40% directly engage in farming About 75% do not have successors→ Farmland that can become abandoned

4%

80+
80歳以上
31%

50歳代
50s
事業対象地域
Project Area

21%

地権者年齢
LandownerAge(as of July 2015)（2015年7月調査）

70歳代
70s

60歳代
60s

16%

28%

5%

Owner is farming

自ら耕作
40%

Other

Other

その他

Leasing
貸している

事業対象地域
Project Area

55%

耕作状況
Farming
Status(as of July 2015)（2015年7月調査）

未定
Undecided

その他
1%

Yes
いる

13%
事業対象地域
Project Area24%

後継者についてSuccessorPlan(as of July 2015)（2015年7月調査）

No
いない

62%

*Based on interview in July 2015
©2022 TODA CORPORATION

59

6th sector industrialization of agriculture

Collaborate with Municipal Government on Regional
Revitalization Project to Resolve Regional Issues
Issues for Joso City

Promoteagriculture

Response to
decreasing
population

Industrial parkarea

Flood recovery

Agricultural
production area

Promoteagriculture

Agriscience valley concept

Expected effect
Secure new
farmers

Large facility horticulture “Challenge Farm” Tourist Farm
✓ Create alternative crop for rice and next-generation
agriculture suited to the area
✓ Support younger generation entering farming✓ Utilize agricultural resources for tourism (example:
experience farming)

Create regional
employment

Inflow of people andgoods
Roadside direct
produce sales, etc.

Urban park

Industrial facility(Multi-tenant logistics facility)✓ Logistics facility leveraging on the location near expressway
interchange for “wide area accessibility” and businessdevelopment linked with surrounding agricultural production
area (Roadside station)

Stable tax income

PPP agreement©2022 TODA

60

6th sector industrialization of agriculture

Regional Contribution through New City Development

Employment creation: about 2,000(estimate)Tax revenue: About 500 million yen in
Fixed Property Tax (estimate)

Distribution warehouse(investment business)
Tourist farm zone

Distribution warehouse
Urban park

Refrigerated warehouse

Large facility horticulture zone

Private sector visitor facilities
Roadside station

Toda Corporation sales: about 78 billion yen

Joso City Agriscience Valley Project
Artist’s Impression©2022 TODA CORPORATION

61