October 31, 2012

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TODA CORPORATION
Shunzo Inoue
President and Chief Executive Officer
1860
First Section of Tokyo Stock Exchange andFirst Section of Osaka Securities Exchange
Keiichi Ebihara
Executive Officer and General Manager,
Accounting Division
Tel.: +81-3-3535-1357

Notice Regarding Reversal of Deferred Tax Assets and Revisions to Earnings and Dividend Forecasts
We hereby announce revisions to the earnings and dividend forecasts for the first six months of the fiscal year ending
March 31, 2013, which were publicly announced on August 9, 2012, as described below, taking into account trends
of recent business performance and other factors.
IRevisions to Earnings Forecast

Revisions to the forecasts of the consolidated business performance for the six months of FY2012, the year ending March
31, 2013 (from April 1, 2012, to September 30, 2012)(Millions of yen unless otherwise stated)
Net income
OperatingOrdinary
Net sales
Net income
per share
incomeincome(Yen)
Previous forecast (A)229,000(5,200)(4,700)(4,100)(13.17)
Revised forecast (B)212,800(14,400)(13,600)(33,800)(108.56)
Increase/decrease (B – A)
-16,200-9,200-8,900-29,700
Rate of change (%)-7.1———(Reference) Actual results for
181,721
(77)
670
41
0.13
the six months of FY2011
Revisions to the forecasts of the full-year consolidated business performance for FY2012, the year ending March 31,2013 (from April 1, 2012, to March 31, 2013)(Millions of yen unless otherwise stated)
Net income
Operating
Ordinary
Net sales
Net income
per share
incomeincome(Yen)
Previous forecast (A)477,800
4,100
5,200
1,200
3.85
Revised forecast (B)509,800(19,300)(18,000)(38,500)(123.66)
Increase/decrease (B – A)
32,000-23,400-23,200-39,700
Rate of change (%)
6.7———(Reference) Actual results for
489,385(7,994)(6,690)(19,872)(64.28)the full year of FY2011
Revisions to the forecasts of the non-consolidated business performance for the six months of FY2012, the year ending
March 31, 2013 (from April 1, 2012, to September 30, 2012)(Millions of yen unless otherwise stated)
Net income
Operating
Ordinary
Net sales
Net income
per share
incomeincome(Yen)
Previous forecast (A)213,500(5,600)(5,100)(4,300)(13.81)
Revised forecast (B)197,000(14,800)(14,000)(34,500)(110.81)
Increase/decrease (B – A)
-16,500-9,200-8,900-30,200
Rate of change (%)-7.7———(Reference) Actual results for168,772
(133)
497
(94)
(0.30)
the six months of FY2011-1-

Revisions to the forecasts of the full-year non-consolidated business performance for FY2012, the year ending March 31,
2013 (from April 1, 2012, to March 31, 2013)(Millions of yen unless otherwise stated
Net income
OperatingOrdinary
Net sales
Net income
per shareincomeincome(Yen)
Previous forecast (A)440,0002,600
3,700500
1.61
Revised forecast (B)472,000(20,600)(19,300)(39,800)(127.83)
Increase/decrease (B – A)
32,000-23,200-23,000-40,300
Rate of change (%)
7.3———(Reference) Actual results for
457,387(8,236)(7,182)(19,603)(62.96)the full year of FY2011

Reason for the revisions
1. Non-consolidated earnings forecast(1) First six months of the fiscal year ending March 31, 2013
Net sales are expected to decrease \16.5 billion from the previous forecast, because the progress of contracted
construction has fallen short of expectations.
Operating income and ordinary income are expected to decrease ¥9.2 billion and ¥8.9 billion, respectively,
due to a considerable fall in profits from construction work. Net income is expected to decline ¥30.2 billion,
mainly because the Company projects a loss on valuation of investment securities of ¥3.6 billion (compared tothe previous forecast of ¥2.8 billion) to extraordinary loss and fully reverse deferred tax assets of ¥19.4 billion
due to a deterioration of performance.
Regarding the loss on valuation of investment securities, the Company posted a loss of ¥2.8 billion as of theend of the first quarter of the fiscal year ending March 31, 2013, as publicly announced in “Notice Regarding
Loss on Valuation of Investment Securities in the First Quarter of the Fiscal Year Ending March 31, 2013” dated
July 13, 2012.
(2) Full year
Net sales are expected to increase ¥32.0 billion from the previous forecast, because construction work is likely toprogress further in the third and fourth quarters of the year than initially projected.
Operating income and ordinary income are expected to decrease ¥23.2 billion and ¥23.0 billion, respectively,
because profit from construction work will continue to decline significantly. Net income is projected to decrease¥40.3 billion, due mainly to the expected posting of ¥3.6 billion for a loss on valuation of investment securities
to extraordinary loss and the reversal of ¥19.4 billion in deferred tax assets in the second quarter.
2. Consolidated earnings forecast
The relevant figures of the consolidated earnings forecast have been revised due to same reasons to those for therevisions to the non-consolidated earnings forecast.
3.

Major Factors Behind Revisions to Earnings Forecast(1) Major decline in profits from construction work
Improving the profitability of construction work has been difficult, primarily due to the increasing severity of thecost management environment caused by tight labor conditions and other factors, which resulted in therecognition of a loss on purchase price adjustments under labor and facility contracts far beyond the initialprojections, mainly with respect to large-scale architectural construction work.
Under such circumstances, the Company re-examined the projection for profit from construction business andrevised the previous forecast to a decrease in profit from construction business of ¥9.6 billion (non-consolidated)
for the second quarter and ¥23.2 billion (non-consolidated) for the full year.

-2-Breakdown of non-consolidated earnings forecast of Construction business for FY2012(Millions of yen)
Full year
Six months
Architectural
Civil
Construction Architectural
Civil
Construction
construction engineering business total construction engineering business total(Profit margin) (Profit margin) (Profit margin) (Profit margin) (Profit margin) (Profit margin)

Previous forecast (A)Revised forecast (B)Increase/decrease (B – A)
Rate of change (%)(Reference) Actual
results for the full year ofFY2011

17,500
5.1%(5,000)-1.3%-22,500
—

4,700
5.4%
4,000
4.4%
-700
-14.9

22,2005.1%(1,000)-0.2%-23,200
—

2,500
1.5%
(7,400)-4.7%-9,900
—

1,300
3.3%
1,600
4.5%
300
23.1

3,800
1.8%
(5,800)-3.0%-9,600—13,279
3.8%

4,686
4.6%

17,966
4.0%

8,013
5.8%

971
3.4%

8,985
5.4%

(2) Reversal of deferred tax assets
Given the major deterioration in earnings in the second quarter, the Company has revised its projection on therecoverability of deferred tax assets and will fully reverse ¥19.4 billion (non-consolidated) in deferred tax assets.
In conjunction with this reversal, income taxes-deferred is expected to be ¥17.2 billion (non-consolidated) in thesecond quarter as a result of partially reversing deferred tax liabilities of ¥2.1 billion (non-consolidated).
For the reasons described above, the Company is revising the earnings forecasts for the first six months and forthe full year of the fiscal year ending March 31, 2013.

Future Outlook
Having taken seriously the circumstances in which the business is expected to fall into deficit again after theprevious period, the Company has established an internal Structural Reform Committee headed by the President
with the aim of promoting fundamental reforms of the business and cost structure of Toda along with its Group
companies. Going forward, the Committee will take the lead in implementing initiatives to secure profits in theyear ending March 2014, including ensuring profits at the time an order is received and enhancing the profit
management structure, as well as further promoting reductions of general expenses.
Details of the Company’s initiatives will be notified when announcing the results of the second quarter on
November 12, 2012, along with the notice regarding partial revisions to the current Medium-term Management
Plan (announced on May 14, 2012).

-3-

II Revisions to Dividend Forecast(Yen)
1Q-endPrevious forecast
Revised forecast
Actual result forFY2012
Actual result for thefull year of FY2011——

Annual dividend per share
2Q-end3Q-endYear-end
—
—
6.00
—
—
5.00

——

—

—

—

—

6.00

Total
6.00
5.00

6.00

Reason for the revisionsThe Company’s basic policy on returning profits to shareholders is to continue to provide each of its
shareholders with stable dividend payments by taking into account business performance and the businessenvironment, while ensuring that there are sufficient internal reserves to strengthen its competitiveness andfinancial structure.
Based on this policy, the Company has revised the forecast of the annual dividend per share for FY2012 to¥5.00 by comprehensively taking into account the aforementioned forecasts of the full-year businessperformance and the anticipated future business environment.

(Note) The forecasts above were based on information currently available to the Company. Actual results may,therefore, differ from those described above due to various unforeseen factors.

(End of document)-4-