FINANCIAL STATEMENTS 2023
Year ended March 31, 2023

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Independent Auditor’s Report
The Board of Directors
Toda Corporation
OpinionWe have audited the accompanying consolidated financial statements of Toda Corporation and its consolidated
subsidiaries (“the Group”), which comprise the consolidated balance sheet as of March 31, 2023, and theconsolidated statement of income, consolidated statement of comprehensive income, consolidated statement ofchanges in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including a summary of significant accounting policies, all expressed in Japanese yen.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Group as of March 31, 2023, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the provisions of theCode of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
Estimates of total construction costs
How the Key Audit Matters Were
Key Audit Matters Description
Addressed in the Audit
In the building construction and civil engineering,etc., which are the Group's principal business, theGroup has the performance obligations to constructbuildings or structures, etc. and deliver the outcomesto customers based on construction contracts as
described in Note 2.8. The Group has applied themethod based on the percentage of costs incurred by
the end of each reporting period to the total expected
costs as a method of estimating the progress ofconstruction works to the satisfaction of performanceobligations. The portion of work completed by themethod based on the percentage of costs were477,357 million yen. In addition, the Group records aprovision for losses on construction contracts thathave not yet been delivered, for which losses are
expected to be incurred as of the end of the current
fiscal year and for which the amount can bereasonably estimated as described in Note 2.6).
The method based on the percentage of costs is used
to record portion of work completed and provision forlosses on construction contracts, which is affected byestimates of total construction costs. Estimating total
construction costs is highly individualized for eachcontract, and facts that become known after the startof the construction contract may exist or conditions at

To evaluate the reasonableness of estimates of total
construction costs, we mainly performed thefollowing audit procedures.
・ We understood the revenue and expenditure
management system and the construction progress
management system for each unit of construction
revenue recognition developed by the Group, andevaluated the status of related internal control
development and operation, including the approval of
the execution budget at the time of formulation andupdate, which is the basis for estimating total
construction costs.
・ As for the construction costs in the unit ofconstruction revenue recognition selected based on
certain criteria, we examined whether the total
construction costs reflect the actual situation by
examining whether there is any abnormality in thestatus of cost accrual and examining theappropriateness of deviation from the execution
budget.
・We examined the total construction costs to see if
any unusual adjustment items were included in the
total construction costs.

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the site may change, making timely and appropriate
review of total construction costs complex. As aresult, estimates of total construction costs are highly
uncertain and management's judgment has asignificant impact.
Based on the above, we have determined estimates of
total construction costs to be a key audit matter.

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・ By inspecting the process control materials andasking questions, we identified important estimation
factors related to specifications, construction period,
etc. , and evaluated the manager’s judgment regarding
the effects of uncertainty in the estimation factors.
・ As for particularly important projects, we
performed on-site observations and additionalquestioning to examine whether the progress ofconstruction was consistent with the estimate of total
construction costs and the progress toward
completion of construction.

Impairment of fixed assets related to the floating offshore wind power generation project
How the Key Audit Matters
Key Audit Matters Description
Were Addressed in the Audit
As for the floating offshore wind power generation
project, in which the Group has made and plans tomake large investment as Environment and Energy
segment, the business market itself is new anduncertain, and there is a risk that impairment of fixed
assets will not be properly assessed depending on
achievement of the business plan.
The company is constructing a floating offshore windfarm off the coast of Goto City, Nagasaki Prefecture,
as one of its businesses. The recoverable amount of
the facilities under construction, which was calculated
based on the future value in use, has fallen below thebook value, and the book value was reduced to therecoverable amount in the previous fiscal year,
resulting in an impairment loss.
In the current consolidated fiscal year, defects werediscovered in facilities under construction, and as aresult of estimating the recoverable amount, including
the cost of dealing with the defects, an impairment
loss of 9,534 million yen was recorded as an
extraordinary loss, as described in Note 9.8).
The estimates of future value in use are subject touncertainty and require management's judgment,
therefore, we have determined this matter to be a key
audit matter.

In our audit of the impairment of fixed assets related
to the floating offshore wind power generation
project , we principally performed the following audit
procedures.
・ We conducted the site visit and additionalquestions to determine whether the key assumptions
used in recording impairment losses reflect actual
conditions.
・We reviewed contracts or quotations and conductedquestions to the person in charge in order to verify
consistency with the income plan.
・ Regarding construction costs with approved
execution budgets, we evaluated the maintenance andoperation of internal controls in the formulation of
execution budgets as the basis for estimates, and thenverified the consistency between the approved
execution budgets and the expenditure plans.
・Regarding construction costs not yet approved in
the execution budget (including costs for handlingdefects), we interviewed the person in charge
regarding the process and handling method, andverified the consistency between the cost estimate
basis documents and the contract conditions in theapproved execution budget.
・ Regarding operating expenses, we reviewed thequotations from prospective order recipients andverified consistency with the expenditure plan.
・We verified that the discount rate is consistent withthe rate of return on the business plan.

Other Information
The other information comprises the information included in the disclosure document that contains audited
consolidated financial statements but does not include the consolidated financial statements and our auditor’s report
thereon.
We have concluded that the other information does not exist. Accordingly, we have not performed any work related
to the other information.

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Responsibilities of Management and Corporate auditors and the board of corporate auditors for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal
control as management determines is necessary to enable the preparation and fair presentation of the consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern in accordance withaccounting principles generally accepted in Japan.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ execution ofduties relating to the design and operating effectiveness of the controls over the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks. The procedures selected depend on
the auditor’s judgement. In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the consolidated financial statements are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation, structure
and content of the consolidated financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We are responsible forthe direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with corporate auditors and the board of corporate auditors, we determine thosematters that were of the most significance in the audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

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Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to bedisclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for theconvenience of readers, and, in our opinion, the accompanying consolidated financial statements have been properlytranslated on the basis described in Note 1.
SEINAN AUDIT CORPORATION
Minato-ku, Tokyo, Japan
June 29, 2023

Toshio Saito
Representative Partner
Engagement Partner
Certified Public Accountant

Daisuke Suzuki
Representative Partner
Engagement Partner
Certified Public Accountant

Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by the Company and
SEINAN AUDIT CORPORATION.

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Independent Auditor’s Report

The Board of Directors
Toda Corporation
OpinionWe have audited the accompanying non-consolidated financial statements of Toda Corporation (“the Company”),
which comprise the non-consolidated balance sheet as of March 31, 2023, and the non-consolidated statement ofincome and non-consolidated statement of changes in equity for the year then ended, and notes to the nonconsolidated financial statements, including a summary of significant accounting policies, all expressed in Japaneseyen.
In our opinion, the accompanying non-consolidated financial statements present fairly, in all material respects, thenon-consolidated financial position of the Company as of March 31, 2023, and its non-consolidated financial
performance for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Non-Consolidated
Financial Statements section of our report. We are independent of the Company in accordance with the provisions of
the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
non-consolidated financial statements of the current period. These matters were addressed in the context of our auditof the non-consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
《Estimates of total construction costs》
The description is omitted because the contents are the same as key audit matters (estimates of total construction
costs) stated in the Independent Auditor’s report of the consolidated financial statements.
《Impairment of fixed assets related to the floating offshore wind power generation project》
The description is omitted because the contents are the same as key audit matters (Impairment of fixed assets related
to the floating offshore wind power generation project) stated in the Independent Auditor’s report of the consolidated
financial statements.
Other Information
The other information comprises the information included in the disclosure document that contains audited nonconsolidated financial statements but does not include the non-consolidated financial statements and our auditor’sreport thereon.
We have concluded that the other information does not exist. Accordingly, we have not performed any work related
to the other information.
Responsibilities of Management and Corporate auditors and the board of corporate auditors for the NonConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these non-consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal
control as management determines is necessary to enable the preparation and fair presentation of the nonconsolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the non-consolidated financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance withaccounting principles generally accepted in Japan.

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Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ execution ofduties relating to the design and operating effectiveness of the controls over the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Non-Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the non-consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese non-consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the non-consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks. The procedures selected dependon the auditor’s judgement. In addition, we obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the nonconsolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the non-consolidated financial statements are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation, structure
and content of the non-consolidated financial statements, including the disclosures, and whether the nonconsolidated financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with corporate auditors and the board of corporate auditors, we determine thosematters that were of the most significance in the audit of the non-consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine thata matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is required to bedisclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Convenience Translation
We have reviewed the translation of these non-consolidated financial statements into U.S. dollars, presented for theconvenience of readers, and, in our opinion, the accompanying non-consolidated financial statements have been
properly translated on the basis described in Note 1.

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SEINAN AUDIT CORPORATION
Minato-ku, Tokyo, Japan
June 29, 2023

Toshio Saito
Representative Partner
Engagement Partner
Certified Public Accountant

Daisuke Suzuki
Representative Partner
Engagement Partner
Certified Public Accountant

Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by the Company and
SEINAN AUDIT CORPORATION.

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Consolidated Balance Sheets
Toda Corporation and consolidated Subsidiaries - As of March 31, 2022and 2023
Millions of yen

Thousands of
U.S. dollars
2023

2022

2023

¥ 120,538
208,892
10,300
8,301
9,680
5,124
24,887(1,188)386,536¥ 96,840
282,828700
15,616
12,102
2,709
23,807(3,032)431,573

47,912

54,240406,205

11,01911,25684,30087,65259
15,294
161,938

87,187
205
25,785
178,675

652,942
1,540
193,102
1,338,091

Intangible assets:
Goodwill
Other (Notes 8.3))
Total intangible assets

701
11,255
11,956

1,375
10,68912,065

10,30380,05090,354

Investments and other assets:
Investment securities (Notes 8.4), 5) , 14 and 15)
Long-term loans receivable (Notes 8.5) and 14)
Net defined benefit assets (Note 17)
Deferred tax assets (Note 18)
Other
Allowance for doubtful accounts
Total investments and other assets

192,650
817
2,129
677
4,585
（91)
200,768

185,072
795
1,953
921
4,581
（81)
193,243

1,385,999
5,954
14,630
6,902
34,312(611)
1,447,187

Total noncurrent assets

374,663

383,983

2,875,634¥ 761,199¥ 815,556$ 6,107,667

ASSETS
Current assets:
Cash and deposits (Notes 12 and 14)
Notes and accounts receivable - trade (Note 8.1), 14 and 23)
Short-term investment securities (Notes 14 and 15)
Real estate for sale (Notes 8.10))
Costs on uncompleted construction contracts (Note 8.9))
Other inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment: (Notes 8.2), 21 and 22)
Buildings and structures, net (Notes 8.3), 5) and 10))
Machinery, vehicles, tools, furniture and fixtures, net (Notes
8.3))
Land (Notes 8.3), 5), 8) and 10))
Lease assets, net
Construction in progress(Notes 8.3)
Total property, plant and equipment

Total assets$

725,232
2,118,091
5,242
116,954
90,636
20,290178,295(22,709)
3,232,033

TODA CORPORATION FINANCIALSTATEMENTS 2023

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Millions of yen

Thousands of
U.S. dollars
2023

2022

2023

LIABILITIESCurrent liabilities:
Notes and accounts payable - trade (Note 14)
Short-term loans payable (Note 14)
Commercial papers-liabilities (Note 14)
Current portion of bonds payable (Note 14)
Income taxes payable (Note 14)
Advances received on uncompleted construction contracts (Note 8.1) and 23)
Provision for bonuses
Provision for warranties for completed construction
Provision for loss on construction contracts (Note 8.9))
Deposits received
Other
Total current liabilities¥ 97,728
59,96920,00015,1906,175
28,369
6,071
3,819
2,666
38,465
20,660299,116¥ 111,283
81,568
－
5,050
6,329
33,408
5,115
3,305
9,434
36,48618,034
310,016

Noncurrent liabilities:
Bonds payable (Note 14)
Long-term loans payable (Note 14)
Deferred tax liabilities (Note 18)
Deferred tax liabilities for land revaluation (Note 18)
Provision for directors' retirement benefits
Provision for stock payments for directors
Provision for loss on liquidation of subsidiaries and affiliates
Net defined benefit liability (Note 17)
Asset retirement obligations (Note 21)
Other
Total noncurrent liabilities
Total liabilities

45,24538,991
22,690
6,124
239
240
1,193
21,8492,207
4,258
143,041
442,157

50,19574,724
19,244
6,069
98
465
1,141
22,932
2,242
5,165
182,278492,295

375,908559,605
144,124
45,455
735
3,486
8,547
171,737
16,797
38,6801,365,078
3,686,775

NET ASSETS
Shareholders' equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

23,001
26,457
199,155(8,462)
240,152

23,001
26,786200,996(7,625)
243,159

172,257
200,604
1,505,256(57,105)
1,821,013

73,435
385
3,073
(391)
(81)
76,421
2,467
319,042¥ 761,199

72,790111
3,087(1,567)(327)
74,094
6,007
323,261¥ 815,556

545,122838
23,122(11,739)(2,453)554,890
44,9892,420,892$ 6,107,667

Accumulated other comprehensive income (Note 10)
Valuation difference on available-for-sale securities
Deferred gains on hedges
Revaluation reserve for land (Note 8.8))
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets$

833,393
610,861－
37,81947,403
250,194
38,31224,75370,652
273,244
135,059
2,321,696

TODA CORPORATION FINANCIALSTATEMENTS 20232

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Consolidated Statements of Income
Toda Corporation and Consolidated Subsidiaries - For the years of March 31, 2022 and 2023

2022

2023

Thousands of
U.S. dollars
2023¥ 472,641
28,868501,509¥ 518,426
28,729547,155$ 3,882,469
215,152
4,097,621

417,249
21,582438,832

469,076
20,755489,8313,512,892
155,436
3,668,328

55,392
7,285
62,67738,292
24,38549,3497,973
57,323
43,18814,135369,577
59,715429,293
323,436
105,856

210
3,464
276
191
－
764
4,907

413
4,017
238
149
1,046
896
6,762

3,100
30,085
1,786
1,116
7,838
6,716
50,643

861
186
133
1,180
28,111

1,042
637
178
1,858
19,039

7,806
4,773
1,336
13,917
142,582

－
24
3,127
595
3,747

1,908
28
8,083
378
10,39914,294211
60,5402,831
77,878

1,550
492
－
1,162
423
3,629
28,230
9,271
490
9,761
18,468(92)¥ 18,560

419
10,345285
255
233
11,54017,897
10,352(3,661)
6,690
11,207211¥ 10,995

3,144
77,473
2,138
1,915
1,751
86,423134,037
77,527(27,420)
50,106
83,9301,587$
82,343

Millions of yen
Net sales: (Note 9.1))
Net sales of construction contracts
Net sales of investment development business and otherTotal net sales
Cost of sales:
Cost of sales of construction contracts (Notes 9.2) and 3))
Cost of sales of investment development business and other (Notes 9.5))
Total cost of sales
Gross profit:
Gross profit on construction contracts
Gross profit on investment development business and otherTotal gross profit
Selling, general and administrative expenses (Notes 9.4) and 5))
Operating income
Non-operating income:Interest income
Dividend income
Dividend income of insurance
Share of profit of entities accounted for using equity method
Exchange gain
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on step acquisitions
Gain on sales of noncurrent assets (Note 9.6))
Gain on sales of investment securities (Note 15)
Other
Total extraordinary income
Extraordinary loss:
Loss on abandonment of noncurrent assets (Note 9.7))
Impairment loss (Note 9.8))
Loss on valuation of investment securities (Note 15)
Provision for loss on liquidation of subsidiaries and affiliates
Other
Total extraordinary losses
Profit before income taxes and non-controlling interests
Income taxes-current
Income taxes-deferred
Total income taxes (Note 18)
Profit for the year
Loss attributable to non-controlling interests
Profit for the year attributable to owners of the parent (Note 27)

TODA CORPORATION FINANCIALSTATEMENTS 2023

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Consolidated Statements of Comprehensive Income
Toda Corporation and Consolidated Subsidiaries - For the years of March 31, 2022 and 2023

2022
¥ 18,468

2023¥ 11,207

Thousands of
U.S. dollars
2023$ 83,930(6,039)
277
1,349
88
414
(3,909)14,559

(643)
(273)
(533)
(153)
(614)
(2,219)8,987(4,821)(2,051)(3,996)(1,152)(4,602)(16,623)
67,306

Millions of yen
Profit for the year
Other comprehensive income (Note 10)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of the parent
Non-controlling interests¥

14,654
(95)

¥

8,653
333

$

64,8082,497

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Consolidated Statements of Changes in Net Assets
Toda Corporation and consolidated subsidiaries - For the years ended March 31, 2022 and 2023

Balance at March 31, 2021
Changes during period
Dividends from surplus
Profit for the year attributableto owners of the parent
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Reversal of revaluation
reserve for land
Net changes of items otherthan shareholders' equity
Total changes of items
during the period
Balance at March 31, 2022
Changes during period
Dividends from surplus
Profit for the year attributableto owners of the parent
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Reversal of revaluation
reserve for land
Net changes of items otherthan shareholders' equity
Total changes of items
during the period
Balance at March 31,2023

Balance at March 31, 2022
Changes during period
Dividends from surplus
Profit for the year attributableto owners of the parent
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Change in parent's ownershipinterests arising from capitalincrease of consolidated subsidiary
Reversal of revaluation
reserve for land
Net changes of items otherthan shareholders' equity
Total changes of items
during the period
Balance at March 31, 2023

Millions of yen
Valuation
Total
difference on Deferred
Foreign Remeasure- accumulated
Total
availablegains or Revaluation currency
ments ofother
NonCapital
CapitalRetained Treasury shareholders' for-salelosses on reserve for translation
defined comprehensive controlling Total net
stock
surplusearnings
stock
equitysecurities
hedgeslandadjustments benefit plans income
interests
assets¥23,001¥26,259 ¥189,217 ¥(9,388) ¥229,089¥79,474¥108¥3,674 ¥(2,174)¥(153)¥80,928¥2,515 ¥312,533――(9,223)―(9,223)

―

―

―

―

―

―

―

(9,223)――

18,560―18,560

―

―

―

―

―

―

―

18,560

―
―
―

―
―
198

―
―
―

32
(1)
894

32
(1)
1,093

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

32
(1)
1,093

―

―

600

―

600

―

―

―

―

―

―

―

600

―

―

―

―

―

(6,039)

277

(600)

1,782

72

(4,507)(47)(4,554)

―

198

9,938

925

11,063(6,039)

277

(600)

1,782

72

(4,507)

(47)

6,508

¥23,001¥26,457¥199,155¥(8,462)¥240,152¥73,435¥385¥3,073¥(391)¥(81)¥76,421¥2,467¥319,042－－(9,139)－(9,139)

－

－

－

－

－

－

－

(9,139)－－10,995－

10,995

－

－

－

－

－

－

－

10,995

－
－
－

172
－
156

－
－
－

1,128
(1,293)
1,001

1,301
(1,293)
1,157

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

1,301
(1,293)
1,157

－

－

(14)

－

(14)

－

－

－

－

－

－

－

(14)

－

－

－

－

－

(645)

(273)

14

(1,175)(246)(2,327)

3,539

1,212

－

328

1,841

837

3,007

(645)

(273)

14

(1,175)(246)(2,327)

3,539

4,219

¥23,001¥26,786¥200,996¥(7,625)¥243,159¥72,790¥111¥3,087¥(1,567)¥(327)¥74,094¥6,007¥323,261

Thousands of U.S. dollars
Valuation
Total
difference on Deferred
Foreign Remeasure- accumulated
gains or Revaluation currency
Total
availablements of
other
NonCapital
CapitalRetained Treasury shareholders' for-salelosses on reserve for translation
defined comprehensive controlling Total net
securities
hedgesstock
surplusearnings
stock
equityland
adjustments benefit plans income
interests
assets$172,257 $198,140 $1,491,468 $(63,373) $1,798,492 $549,954$2,889$23,051 $(2,932)$(609) $572,317$18,480 $2,389,291――(68,447)―(68,447)

―

―

―

―

―

―

―

(68,447)――

82,343―82,343

―

―

―

―

―

―

―

82,343

―
―
―

1,290
―
1,172

―
―
―

8,454
(9,684)
7,498

9,745
(9,684)
8,671

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

―
―
―

9,745
(9,684)
8,671

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

(107)

―

(107)

―

―

―

―

―

―

―

(107)

―

―

―

―

―

(4,832)(2,051)107(8,806)(1,843)(17,427)

26,508

9,081

2,463

13,788

6,268

22,250(4,832)(2,051)107(8,806)(1,843)(17,427)

26,50831,601$200,604 $1,505,256 $(57,105) $1,821,013$545,122$838$23,122 $(11,739)$(2,453)$554,890$44,989 $2,420,892―$172,257

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Consolidated Statements of Cash Flows
Toda Corporation and consolidated subsidiaries - For the years ended March 31, 2022 and 2023
Thousands of
U.S. dollars

Millions of yen
2022

2023

2023

Net cash provided by (used in) operating activities:
Profit before income taxes and non-controlling interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on liquidation of subsidiaries and affiliates
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Increase (decrease) in other provision
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Loss on abandonment of noncurrent assets
Loss on step acquisitions
Share of loss (profit) of entities accounted for using equity method
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in costs on uncompleted construction contracts
Decrease (increase) in real estate for sale
Decrease (increase) in costs on real estate business
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received on uncompleted construction contracts
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities¥ 28,230
4,765
492
104
(172)
1,164
148
(63)
(869)
0
(3,115)
(24)
1,550
－
(191)
(3,675)
861
1,625
1,435
4,304
1,136
6,025
(16,298)
658
7,877
(187)
35,785
3,681(853)(11,526)
186
27,274¥17,897
6,296
10,345
340
164
(53)
52
436
5,335
285
(8,039)101419(1,908)(149)(4,431)
1,042(57,398)
2,644
2,640
2,543
2,114
7,129
(2,004)(8,046)(1,691)(23,930)
4,433
(916)
(10,431)－(30,845)$ 134,037
47,15577,473
2,549
1,231
(398)
391
3,271
39,9582,138(60,204)
758
3,144(14,294)(1,116)(33,185)7,806(429,855)
19,805
19,777
19,05015,83553,393(15,014)(60,261)(12,666)(179,216)
33,205(6,865)(78,120)－(230,996)

Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments from retirement of property, plant and equipment
Purchase of intangible assets
Proceeds from subsidy income
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments of loans receivableCollection of loans receivable
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Purchase of shares of equity method affiliate
Payments for lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

－
69
100
(21,814)80(1,471)(2,511)
2,900(3,357)
6,321
(3)
28
(1,037)
(57)
(263)
582
(20,433)

(158)
552
300
(35,874)
1,688
(389)
(1,344)－(2,649)12,053
(32)
20
(918)
－
(18)
667
(26,102)(1,185)4,134
2,246(268,659)
12,646(2,916)(10,071)－(19,843)
90,269(239)
153(6,876)
－
(139)
4,997
(195,483)

Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments for acquisition of shares of subsidiaries not affecting the scope of consolidation
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities

13,809－12,920(9,037)
10,000(30)(9,223)
(2)
(76)
(1)
(51)
18,30623,184(20,000)
40,630(6,942)
10,000(15,190)(9,139)
(2)
－
(0)
(3)
22,534

173,624(149,779)
304,276(51,994)
74,889(113,757)(68,447)
(16)
－
(5)
(28)
168,761

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of current period
Cash and cash equivalents at the end of current period (Note 12)426
25,574
103,727
129,301

977(33,435)
129,301
95,866

7,323(250,395)
968,334
717,938

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Notes to Consolidated Financial Statements
Toda Corporation and Consolidated Subsidiaries
1.

Basis of Presenting Consolidated Financial Statements

The consolidated financial statements presented herein of Toda Corporation (the "Company") and its consolidated subsidiaries (together, the"Companies") are prepared in accordance with the provisions set forth in the Financial Instruments and Exchange Law of Japan, and in conformity
with accounting principles generally accepted in Japan.
These consolidated financial statements incorporate certain modifications in format so as to make the financial statements more meaningful toreaders outside Japan.
These modifications have no effect on total assets, net sales, retained earnings or profit for the year.
(U.S. Dollar Amounts)
The accounts of consolidated financial statements presented herein are expressed in Japanese yen by rounding down to nearest million.
The U.S. dollar amounts are included solely for convenience and have been translated, as a matter of arithmetical computation only, at the rate of¥133.53 = US$1, the exchange rate prevailing on the Tokyo foreign exchange market on March 31, 2023, and have been then rounded down to thenearest thousand. This translation should not be construed as a representation that the yen amounts actually represent, have been or could be
converted into U.S. dollars at this or any other rate.

2.

Summary of Significant Accounting Policies

1)

Scope of consolidation
The accompanying consolidated financial statements include the accounts of Toda Corporation and 39 subsidiaries, namely APEC Engineering
Co., Ltd., Chiyoda Kenkou Co., Ltd., Toda Road Co., Ltd., Toda Bldg. Partners Co., Ltd., Toda Finance Co., Ltd., Towa Kanko Kaihatsu Co., Ltd.,
Toda Staff Service Co., Ltd., Goto Floating Wind Power LLC, Offshore Wind Farm Construction Co., Ltd., Sato kogyo Co., Ltd., Showa
Construction Co., Ltd., Goto Floating Wind Farm LLC, Toda Solar Energy Fukaya LLC, Toda America, Inc., Construtora Toda do Brasil S/A, Thai
Toda Corporation Ltd., Toda Vietnam Co., Ltd., Tobic Co., Ltd., PT Toda Group Indonesia, PT Toda Eksekutif Properties, PT Tatamulia Nusantara
Indah, TODA Energia do Brasil Ltda. and other 17 companies.
Other subsidiaries were not consolidated, as they were not significant in terms of the effect on total assets, net sales, profit for the year or
retained earnings of the consolidated financial statements.

2)

Application of the equity method
The affiliate to which the equity method is applied is as follows:
Jack-up Wind Farm Construction Co., and other 2 companies.
The acquisition of additional shares of PT Tatamulia Nusantara Indah changed its status from an equity-method affiliate to a consolidated
subsidiary.

3)

Fiscal year of consolidated subsidiaries
Of the consolidated subsidiaries, Toda America, Inc., Thai Toda Corporation Ltd., Toda Vietnam Co., Ltd., PT Toda Group Indonesia., Tobic Co.,
Ltd., TODA Energia do Brasil Ltda., PT Tatamulia Nusantara Indah, Goto Floating Wind Farm LLC, and other 14 companies close their fiscal
year on December 31 each year.
In preparing the consolidated financial statements, the Company used financial statements as of December 31 of all these subsidiaries.
However, adjustments necessary for the purpose of consolidation have been made for fiscal year-end.
In the current fiscal year, the closing date of Goto Floating Wind Farm LLC was changed from March 31 to December 31, and that of Toda
Solar Energy Fukaya LLC was changed from January 31 to March 31.

4)Standards and evaluation methods for significant assets(a) Short term investment securities and investment securities
Held-to-maturity debt securities
Amortized cost method (straight-line method)
Available-for-sale securities
・Other than equity securities without market prices:Stated at fair value (the difference between the book value and the fair value is recorded as a component of net assets, while the cost of
securities sold is computed using the moving-average method)・Equity securities without market prices:Stated at cost, determined by the moving-average method In addition, the valuations for investments in investment business limited
partnerships and similar partnerships (those deemed to be securities under Article 2, Paragraph 2 of the Financial Instruments andExchange Law of Japan) are based on recent financial statements available according to the settlement closing dates stipulated in thepartnership contracts, and are recorded in the net amounts equivalent to their equity.
The accounting methods are as follows:
In the case of investment for the main business purpose, the equity-equivalent profit and loss to be attributable is recorded in "operating
profit and loss" and added to or subtracted from "investment securities".
In the case of investment for purposes other than the main business purpose, the equity-equivalent profit and loss to be attributable isrecorded as "non-operating profit and loss" and added to or subtracted from "investment securities".
(b) Derivatives
Stated at fair value.
(c) Inventories
Costs on uncompleted construction contracts
Stated at cost, determined by the specific identification cost method
Real estate for saleStated at cost, determined by the specific identification cost method (The book value on the consolidated balance sheets is presented after
writedown for decline in profitability.)(d) Other inventories
Raw materials and supplies
Stated at cost, determined by the weighted average method (The book value on the consolidated balance sheets is presented after writedown for decline in profitability.)
Costs on real estate businessStated at cost, determined by the specific identification cost method (The book value on the consolidated balance sheets is presented after
writedown for decline in profitability.)

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5)

Methods of depreciation and amortization
depreciable assets(a) Property, plant and equipment (excluding lease assets)
The declining-balance method is primarily used. However, the straightline method is used for buildings (excluding building fixtures) acquired
on and after April 1, 1998 and building fixtures and other structures acquired on and after April 1, 2016.
In addition, the straight-line method is used for Machinery, vehicles, tools, furniture and fixtures in some of the consolidated subsidiaries.
Standards Identical to regulations in the Corporate Income Tax Law are utilized to determine expected lifetime and residual value.
(b) Intangible fixed assets (excluding lease assets)
The straight-line method is used.
Standards identical to regulations in the Corporate Income Tax Law are utilized to determine expected lifetime and residual value.
However, the amortization of software used by the Companies is computed using the straight-line method based on the estimated usefullife.
(c) Lease assets
Leased assets under finance leases other than those that are deemed to transfer ownership to lessees
Depreciation is based on the straight-line method over the lease term of the leased assets with no residual value.

6)

Allowances and provisions(a) Allowance for doubtful accounts
The allowance for doubtful trade receivables and loans has been provided based on historic loss experience for general accounts and also
includes the aggregate amount of the estimated loss for the accounts for which concern actually exists for collectability.
(b) Provision for bonuses
This is provided for the payment of bonuses for employees, based on expected payment amount.
(c) Provision for warranties to completed construction
To cover expenses for defects claimed concerning completed work, this is provided based on the estimated amount of compensation in the
future for the work completed during the current consolidated fiscal year.
(d) Provision for loss on construction contracts
The provision for loss on construction contracts is provided at the estimated amount for the future losses on contract backlog at the current
consolidated fiscal year-end which will be probably incurred and which can be reasonably estimated.
(e) Provision for directors' retirement benefits
To prepare for the payment of retirement benefits for executive officers and subsidiaries' directors, the provision is provided at the amount tobe paid according to internal regulations if they had retired at the current consolidated fiscal year-end.
(f) Provision for loss on liquidation of subsidiaries and affiliates
The provision for loss on liquidation of subsidiaries and affiliates is provided at the estimated amount for a possible future loss arising fromliquidation.
(g) Provision for stock payments to directors
The provision for stock payments to directors is provided for stock award debt based on predetermined regulations for awarding stock, which
is prepared for future awards of the Company's shares to its directors and executive officers.

7)

Accounting Policies of retirement benefits
The provision for retirement benefits to employees is calculated based on estimated amounts of retirement benefit obligations and pension
assets as of the consolidated fiscal year-end.
Regarding lump-sum severance indemnity plan for some of the consolidated subsidiaries, the amount is calculated based on simplified
method (method to assume required payment amount based on voluntary termination of employment on the closing date as retirement benefit
obligations).
The estimated amount of retirement benefit is allocated to periods of service based on the benefit formula.
Actuarial differences are amortized commencing the following year after the difference is recognized respectively by the straight-line method
over a period of five years.

8)

Recognition of net sales from construction
contracts and related costs
In the building construction and civil engineering, etc., which are the Companies' principal business, the Companies have the performanceobligations to construct buildings or structures, etc. and deliver the outcomes to customers based on construction contracts.
The construction contracts are a transaction in which performance obligations are satisfied over time, and the Companies recognize revenue
according to the progress in the satisfaction of performance obligations.
The Companies have applied the method based on the percentage of costs incurred by the end of each reporting period to the total expected
costs as a method of estimating the progress of construction works to the satisfaction of performance obligations.
In addition, revenue is recognized by the cost recovery method when the progress in the satisfaction of performance obligations cannot bereasonably estimated, but the costs incurred are recoverable.
For construction contracts with a very short term between the commencement date of the transaction in the construction contract and the datewhen the performance obligations are expected to be fully satisfied, the Companies apply alternative treatment and do not recognize revenue
over time.
In this case, the Companies recognize revenue when the performance obligations are fully satisfied. When certain refund obligations tocustomers are expected to arise, such as compensation for damages incurred in association with performance of contracts, the Companies
reduce revenue to the extent of the estimated refund liability.
The Companies estimate a financing component of each individual construction contract and determine whether it is significant because thetiming of receipt of the consideration for the transaction of the construction contracts varies depending on the terms of each individual
construction contract.
As a result, the Companies determined that there are no construction contracts with a significant financing component.

9)

Translation of foreign currency assets andliabilities
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates prevailing at theconsolidated fiscal year-end.
The resulting gains and losses are included in net income or loss for the consolidated fiscal year.
Assets and liabilities accounts of foreign consolidated subsidiaries are translated into Japanese yen at the exchange rate prevailing at the
fiscal year-end.
Income and expense accounts of foreign consolidated subsidiaries are translated into Japanese yen at the average annual exchange rate.
The resulting translation adjustments are included in foreign currency translation adjustment and minority interests in the net assets of theconsolidated balance sheets.

10) Hedge Accounting
The Companies apply hedge accounting as follows:(a) Method of hedge accounting adopted
Deferral hedge accounting
If the interest rate swap contracts are used as hedge and meet certain hedging criteria, net amounts to be paid or received under the interest
rate swap contracts are added to or deducted from the interest or liabilities for which the swap contract were executed ("special treatment").
(b) Measure and objects

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1.

Measures: Forward foreign exchange contracts
Objects:Transactions to be paid in foreign currencies in cases of overseas construction of work and overseas procurement of materials
2. Measures: Interest rate swap
Objects: Borrowings(c) Hedging principles:
Based on internal regulations which stipulate the execution authority regarding on derivative transactions and those for transaction limits, theCompanies utilize hedges to minimize the risk of currency exchange rate and interest rate fluctuations associated with the hedge objects.
(d) Evaluation method of effectiveness of hedging:
During the period from the time when the hedging first started until the current consolidated fiscal year-end, the Companies have beenassessing the hedge effectiveness primarily by comparing, in terms of variation amounts, (1)cumulative cash flow changes or exchange ratechanges of the hedge objects and (2)cumulative cash flow changes or exchange rate changes of the hedge measures.
However, the evaluation of hedge effectiveness is omitted for interest swaps as they meet certain hedging criteria for the special treatment.
11) Goodwill
Goodwill is amortized by the straight-line method over a period of up to 10 years in which it is effective. However, goodwill that is immaterial ischarged to expense in the period.
12) Cash and cash equivalents
For the consolidated statements of cash flows, cash and cash equivalents are defined as cash on hand, deposits that can be withdrawn at any
time and highly liquid short-term investments with a maturity date within three months after acquisition.
13) Other significant matters for preparing
consolidated financial statements
Principles and procedures of accounting treatment adopted when the provisions of related accounting standards, etc. are not clear
The accounting method for joint venture (JV) in the construction industry is mainly based on the method of recognizing assets, liabilities, income
and expenses according to the investment ratio of the members.

3.

Significant Accounting Estimates

1)

Estimates for the method of recognizing revenue over time(the so-called old percentage of completion method)(a) Amount recorded in the consolidated financial statements
Millions of yen

For the years ended March 31
Net sales of construction contracts2022¥ 429,888

2023¥ 477,357

Thousands of
U.S. dollars
2023$ 3,574,911(b) Information about the content of significant accounting estimates for the identified item
In applying the method of recognizing revenue over time (the so-called old percentage of completion method), in principle, the Companies
make the best estimate for all construction works based on the information obtained, regarding the total construction revenue, the total
construction cost and the progress of construction on the fiscal closing date.
In the calculation of the total construction revenue, if there is an uncontracted increase or decrease construction, the construction priceestimated based on the negotiation status with the ordering party is recorded.
In the calculation of the total construction cost, the Companies are continuously reviewing the estimate according to the progress of theconstruction, based on the negotiation situation with the partner company and the assumption of various conditions.
Accordingly, if the total construction revenue and total construction cost are different from the estimates, it may affect the consolidated
financial statements for the next consolidated fiscal year.
2)

Estimates for impairment loss on fixed assets(a) Amount recorded in the consolidated financial statements
Millions of yen

For the years ended March 31
Impairment loss

2022
¥
492

2023
¥ 10,345

Thousands of
U.S. dollars
2023$

77,473(b) Information about the content of significant accounting estimates for the identified item
Asset grouping method is based on management accounting classification, and business assets used by the Companies are grouped bybusiness establishment, and rental assets and idle assets are grouped by individual property.
As a result of examining the necessity of recognition of impairment loss, if it is determined that it should be recognized, the carrying
amount is reduced to the recoverable amount and the reduced amount is recorded as an impairment loss.
The recoverable value is calculated based on net selling price and future value in use.
However, since the estimate of the recoverable value is uncertain, if the preconditions for the estimate change due to economic conditions
or deterioration of market conditions, it may affect the consolidated financial statements for the next consolidated fiscal year and thereafter.

4.

Change in Accounting Policies(Guidance on Accounting Standard for Measurement of Fair Value)“The Guidance on Accounting Standard for Measurement of Fair Value” (ASBJ Guidance No. 31, June 17, 2021; hereinafter referred to as
the “Guidance”) is applied from the beginning of the current fiscal year. The Company shall apply the new accounting policy stipulated in
Paragraph 27-2 of the Guidance in the future. The impact of this change on the consolidated financial statements for the current fiscal year
is minor.
In addition, notes regarding investment trusts in "Fair value information of financial instruments by level of inputs" are not stated for theprevious consolidated fiscal year in accordance with Paragraph 27-3 of Guidance.

5.

Accounting Standards Issued but Not Yet Adopted
For the year ended March 31, 2023
None

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6.

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Change in presentation methods(Notes to consolidated statements of income)“Foreign exchange gains”, which was included in “Other” under “Non-operating income” in the previous consolidated fiscal year, is described
separately because of item in the current consolidated fiscal year it exceeded 10/100 of the total amount of “Non-operating income”. The
consolidated financial statements for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, ¥764 million presented as “Other” under “Non-operating income” in the consolidated statements of income for the previous fiscal year
has been reclassified as “Foreign exchange gains” of ¥151 million and “Other” of ¥613 million.
“Loss on sales of investment securities” under “Extraordinary loss”, which was independently presented in the previous consolidated fiscal year,
is now included in “Other” in the current consolidated fiscal year because it has become insignificant. To reflect this change in presentation, thefinancial statements for the previous consolidated fiscal year have been reclassified.
As a result, “Loss on sales of investment securities” of ¥12 million and “Other” of ¥409 million, which were included in “Extraordinary loss” in the
consolidated statement of income for the previous fiscal year, have been reclassified as “Other” of ¥422 million.

7.

Additional Information(Performance-linked stock compensation plan for directors and executive officers)
1.Outline of the PlanAt the Board of Directors' meeting held on May 13, 2016 and the 93rd General Meeting of Shareholders held on June 29, 2016, theCompany resolved to introduce the BIP Trust for Directors' Remuneration (BIP Trust) and the ESOP Trust for Stock Grant (ESOP Trust, andtogether with the BIP Trust, the Plan) for the Company's directors and executive officers (excluding outside directors and non-residents ofJapan; hereinafter collectively referred to as the Directors), for the purpose of improving the Company's medium- to long-term performance,enhancing corporate value, and raising awareness of shareholder-oriented management.
The Plan is an incentive scheme for the Directors and shares of the Company acquired through the Plan are distributed to the Directors inproportion to the degree of achievement of performance targets for each fiscal year.
Additionally, the resolution was passed at the 99th General Meeting of Shareholders held on June 29, 2022 (the General Meeting of
Shareholders) to revise the Plan by increasing the ratio of stock compensation. After the revision, outside directors are also eligible for nonperformance-linked stock compensation.
In response to the above resolution, at the Board of Directors meeting held on August 10, 2022, the Company made an additional
contribution to the trust and acquired the Company's shares as follows.
＜Outline of additional contribution to the trust and acquisition of the Company’s shares＞
Additional cash contributions and additional acquisition of shares were made within the limits of the maximum trust (¥1,400 million in total
for three fiscal years, including ¥15 million for outside directors) and the maximum number of shares to be acquired (800,000 shares,
including 8,000 shares for outside directors, per year; 2,400,000 shares, including 25,800 shares for outside directors, for a three-year period)
as approved at the General Meeting of Shareholders.
(1) Date of the agreement to amend the trust:(2) Period of trust:(3) Total amount of additional trust:(4) Date of share acquisition:(5) Number of additional shares to acquired:(6) Method of share acquisition:

August 29, 2022
August 29, 2022 - September 30, 2025
¥1,292,401,800 (US$9,678,737) (including trust fees and expenses)
September 1, 2022
1,897,800 shares(Breakdown: 1,865,600 shares for BIP Trust, 32,200 shares for ESOP Trust)
Acquisition through third-party allotment of treasury stock

2.The Company’s shares remaining in the trust
The Company's shares remaining in the trust are recorded as treasury stock under net assets at the book value (excluding incidental
expenses). The book value and number of shares of such treasury stock at the end of previous fiscal year were ¥297 million and 584,633
shares for the BIP Trust and ¥76 million and 152,517 shares for the ESOP Trust respectively. At the end of the fiscal year under review, thebook value and number of shares were ¥1,559 million(US$11,679 thousand) and 2,435,810 shares for the BIP Trust and ¥98 million(US$740
thousand) and 184,717 shares for the ESOP Trust respectively.

8.

Notes to Consolidated Balance Sheets1)

The amount of receivables arising from contracts with customers and contract assets, among notes and accounts
receivable - trade, and the amount of contract liabilities among advances received on uncompleted construction
contracts are described in the consolidated financial statements "Notes (23. Revenue Recognition, (a) Balances, etc. of contract
assets and contract liabilities)".
Thousands ofMillions of yen
U.S. dollars
As of March 31
2022
2023
2023
¥ 34,650$ 302,131
2) Accumulated depreciation of property, plant and equipment¥ 40,343
3) Advanced depreciation:
Buildings and structures
133
133
996
Machinery, vehicles, tools, furniture and fixtures
7,597
7,597
56,895
Land
－
183
24
Construction in progress－
168
22
Intangible assets
8
8
63
Total
¥ 7,739$ 58,307¥ 7,785¥ 6,407$ 14,350
4) Investments in Non-consolidated subsidiaries and affiliates included in investment securities¥ 1,916
5) Pledged assets and Secured debt
①Pledged assets and Secured debt are as follows:
Buildings¥
25$ 9,948¥ 1,328
Land
296
1,030
7,720
Total
¥
321
$ 17,669¥ 2,359
Liabilities secured thereby
Short-term loans payable
¥
9
$
¥
11
87
Current portion of bonds payable
90
50
374
Bonds payable
245
195
1,460
Long-term loans payable
－
3
29
Total
¥
344
$ 1,950¥260②Assets pledged as collateral:
Investment securities¥435$ 3,110¥415
Long-term loans receivable
610
597
4,474
Total
¥ 1,046$ 7,585¥ 1,012¥169$ 1,149
6) Contingent liabilities (guarantee liabilities)¥
153

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7)

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Loan commitment agreement:
Maximum limit under the agreement¥ 30,000$ 224,668¥ 30,000
Loan balance outstanding－－－
Difference (unused portion)¥ 30,000$ 224,668¥ 30,000
Land revaluation
Based on the Land Revaluation Law, the Company has revaluated land held for business use and has recorded any discrepancies in the
consolidated balance sheets as revaluation reserve for land.
Provision for loss on construction contracts included in costs on uncompleted construction contracts

8)9)Millions of yen
As of March 31
Costs on uncompleted construction contracts

2022
¥
292

2023
¥
890

Thousands of
U.S. dollars
2023$ 6,665

10) Change in holding purpose of assets
The following noncurrent assets were reclassified as real estate held for sale due to change in holding purpose.
Millions of yen
As of March 31
Buildings and structures
Land
Machinery,vehicles,tools,furniture and fixture
Construction in progress

2022
¥
530
1,452
－
－

2023
¥ 18198,051
30Thousands of
U.S. dollars
2023$ 13,628
60,294
22
0

The following real estate held for sale was reclassified as noncurrent assets due to change in holding purpose.
Thousands of
U.S. dollars
2023

Millions of yen
As of March 31
Buildings and structures
Land

9.

2022
¥

－
510

2023
¥

－
－

$

－
－

Notes to Consolidated Statements of Income

1)

Revenue from contracts with customers
Net sales are not stated separately for revenue from contracts with customers and other revenue. The amount of revenue from contracts withcustomers is described in the consolidated financial statements "Notes (23. Revenue Recognition, (1) Disaggregation of revenue from contracts
with customers)".
Thousands ofMillions of yen
U.S. dollars
For the years ended March 31
2022
2023
2023
¥ 1,513$ 50,682
2) Provision for loss on construction contracts included in costs of sales¥ 6,767¥16$ 1,225
3) Valuation loss on inventories included in costs of sales¥
1634) Principal components of selling, general and administrative expenses:
Employees' salaries and allowances¥ 13,481$ 111,163¥ 14,843
Provision for bonuses
4,312
3,558
26,649Retirement benefit expenses
988
984
7,375
Provision (reversal) of allowance for doubtful accounts
(175)
336
2,518
5) Research and development expenditures included in selling, general¥ 2,801$ 24,151¥ 3,224
and administrative expenses and construction costs6) Gain on sales of noncurrent assets:
Buildings and structures
¥
8
$
¥
15
115
Land
14
8
60
Other
1
4
36
Total
¥
24
$
¥
28
211
7) Loss on abandonment of noncurrent assets:
Buildings and structures
¥
160
$
¥
0
0
Other
20
16
122
Dismantlement cost
1,369
402
3,016
Total
¥ 1,550$ 3,139¥419
8)Impairment loss on fixed assets
The group puts its assets for business purposes, primarily into main office and branch office. And other assets are put each properties.
Impairment loss on fixed assets was as follows:
For the fiscal year ended March 31, 2022
Location

PurposeType

Assets for businesses(Domestic investment andBuilding and Structure
Development Business)
Assets for businesses(Domestic investment andBuilding and Structure
Naruto City, Tokushima Pref, Japan
Development Business)
Assets for businesses
Goto City, Nagasaki Pref, Japan(Environment and Energy
Construction in progress
Business)
Assets for businesses
Kamakura City, Kanagawa Pref, Japan
Building and Structure(Our company)
Note: Impairment losses other than the above were not considered material and therefore not provided.
Minato Ward, Tokyo Pref, Japan

Impairment loss
(Millions of yen)
¥ 104
¥

35

¥ 312
¥

39

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For the fiscal year ended March 31, 2023
Location

PurposeAssets for businesses(Architectual Construction
Business)
Assets for businesses(Environment and Energy
Business)

Impairment loss
(Millions of yen)Type

(Thousands of
U.S. dollars)

348

Building and Structure¥

Construction in progress¥ 9,534$ 71,400

Koto Ward, Tokyo Pref, Japan

Assets for businesses(Environment and Energy
Business)

Machinery,transportationequipment and tools,fumitureand fixtures,construction inprogress,and intangible fixed
assetd

¥

288

$

2,157

Goto City, Nagasaki Pref, Japan

Assets for businesses(Environment and Energy
Business)

Machinery,transportationequipment and tools,fumitureand fixtures¥

476(Note)$

3,567

Matsudo City, Chiba Pref, Japan
Goto City, Nagasaki Pref, Japan

46$

Note: An impairment loss recorded by the Company's consolidated subsidiary.
Calculation method of recoverable amount:
For assets whose profitability is expected to decline based on future income and expenditure projections, the future cash flows expected to result
from their continued use and disposal after use are discounted to present value at 2.250% for the Company and 5.590% for the consolidated
subsidiaries.

10. Notes to Consolidated Statements of Comprehensive Income
Millions of yen
Reclassification and tax effect of comprehensive income for the years ended March 31
Valuation difference on available-for-sale securities:
AccrualReclassification
Before adjust tax effectTax effect
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges:
AccrualReclassification
Before adjust tax effectTax effect
Deferred gains (losses) on hedges
Foreign currency translation adjustments:
AccrualRemeasurements of defined benefit plans:
AccrualReclassification
Before adjust tax effectTax effectRemeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method:
AccrualReclassification
Share of other comprehensive income of entities accounted for using equity
methodTotal of other comprehensive income

Thousands of
U.S. dollars
2023

2022

2023

¥ (5,786)(2,987)(8,774)2,734¥ (6,039)¥

6,978(7,905)
(927)
283
¥
(643)

(59,206)(6,946)
2,124$ (4,821)

¥

¥

¥

(222)
(172)
(394)
120
(273)

$ (1,664)

¥

404
(4)
400
(122)
277

¥

1,349

¥

(533)

$ (3,996)

¥

32
95
127
(39)
88

¥

(337)
116
(221)
67
(153)

$ (2,529)

414
－

591
(1,206)

4,433(9,035)

414

(614)

(4,602)¥ (3,909)¥ (2,219)$ (16,623)$ 52,259(1,290)(2,955)904$ (2,051)

869(1,660)508(1,152)

11. Notes to Consolidated Statements of Changes in Net Assets
Number of shares
Increase
Decrease――
1,580,231
1,594
Number of shares
Increase
Decrease－－
3,608,716
1,898,863
Number of shares
Record date
Dividends per share

For the fiscal year ended March 31, 2022
Issued stock
Treasury stock

Class of shares
Common stock
Common stock

April 1, 2021
322,656,796
16,018,986

March 31, 2022
322,656,796
14,440,349

For the fiscal year ended March 31, 2023
Issued stock
Treasury stock

Class of shares
Common stock
Common stock

April 1, 2022
322,656,796
14,440,349

For the fiscal year ended March 31, 2022
June 29, 2021 Resolution by Annual
General Meeting of Shareholders
Novemver 15, 2021 Resolution by
Board of Directors
June 29, 2022 Resolution by Annual
General Meeting of Shareholders

Class of shares

Total Dividends

Common stock¥6,148 million¥20.00March 31, 2021

June 30, 2021

Common stock¥3,074 million¥10.00

September 30, 2021

December 13, 2021

Common stock¥4,943 million¥16.00March 31, 2022

June 30, 2022

March 31, 2023
322,656,796
12,730,496
Effective date

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For the fiscal year ended March 31, 2023
June 29, 2022 Resolution by Annual
General Meeting of Shareholders
November 11, 2022 Resolution by
Board of Directors
June 29, 2023 Resolution by Annual
General Meeting of Shareholders

Class of shares
Common stock
Common stock
Common stock

印刷日時:23/09/01 16:31

Number of shares
Total Dividends Dividends per share
Record date
Effective date
¥4,943 million¥16.00March 31, 2022
June 30, 2022($37,019 thousand)¥4,196 million¥13.50 September 30, 2022 December 9, 2022($31,427 thousand)¥4,219 million¥13.50March 31, 2023
June 30, 2023($31,598 thousand)

12. Notes to Consolidated Statements of Cash Flows
Thousands of
U.S. dollars

Millions of yen
Reconciliation between cash and deposits on the consolidated balance sheets and cash
and cash equivalents at the fiscal year-end:
Cash and deposits of the consolidated balance sheets(Less) time deposits with maturities of more than three months
Short-Term investment securities
Cash and cash equivalents of the consolidated statements of cash flows

2022

2023

2023

¥ 120,538(1,236)
10,000¥ 129,301¥$ 725,232(7,293)

96,840(973)－
95,866¥－$ 717,938

Consolidated fiscal year under review (April 1, 2022 to March 31, 2023)
Breakdown of assets and liabilities at the time of consolidation of a company that became a newly consolidated subsidiary due to the shareacquisition, and the relationship between the cost of the share acquisition and the expenditure (net amount) for the acquisition.
Thousands of
U.S. dollars
2023$ 162,903
45,157
8,327(102,489)(8,655)(32,859)$
72,383(28,932)(14,294)
29,156$(22,280)$
6,876

Millions of yen(PT Tatamulia Nusantara Indah)
Current assets
Fixed assets
Goodwill
Current liabilities
Fixed liabilities
Non-current liabilities
Acquisition cost of shares
equity method valuation up to the time control acquired
Net gain on step acquisitions
Additional acquisition cost of shares
Cash and cash equivalents
Payment for purchase2023¥

21,752
6,029
1,112(13,685)(1,155)(4,387)¥
9,665(3,863)(1,908)¥3,893(2,975)¥918

13. Lease Transactions
Millions of yen
As of March 31
Future minimum lease payments under non-cancelable operating leases:
Due within one year
Due after one year
Total
Future minimum lease income under non-cancelable operating leases:
Due within one year
Due after one year
Total

2022

2023

1,140
2,497
3,638

¥

3,724
11,411¥ 15,136

¥

¥
¥
¥

¥

1,152
2,577
3,729

4,026
18,846¥ 22,872

Thousands of
U.S. dollars
2023

8,628
19,302$ 27,930$$ 30,152
141,140$ 171,293

14. Financial Instrument
Fair value of financial instrument
As of March 31, 2022
(1) Notes and accounts receivable - trade(2) Short-term investment securities,
investment securities (Note 2)(3) Long-term loans receivable
Assets total

Book value¥ 208,892

Millions of yen
Fair value¥ 208,850

186,225

186,339114

817¥ 395,935

852¥ 396,041

34
¥ 106

(1) Notes and accounts payable - trade(2) Short-term loans payable andCommercial papers-liabilities(3) Current portion of bonds payable(4) Income taxes payable(5) Bonds payable(6) Long-term loans payable
Liabilities total
Derivative transactions (Note 3)¥ 97,728¥ 97,728¥

79,96979,969－15,1906,175
45,24538,991¥ 283,299¥
505

15,202
6,175
44,94438,879¥ 282,899
¥
505

12
－
(300)
(112)
¥ (400)¥－Difference¥ (42)－

Note:1."Cash and deposits" are not shown because these financial instruments are in cash or have a short maturity and these values approximate
these book values.
2. Equity securities without market prices and investments in partnerships for which equity interests are recorded on a net basis are notincluded in "(2) Short-term investment securities and investment securities".
These financial instruments recorded in the consolidated balance sheets are as follows:

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Millions of yen

As of March 31, 2022
Equity securities without market prices
Stocks of subsidiaries
Stocks of affiliated companies
Unlisted stocks
Investments in Limited Liability Company
Unlisted preferred equity securities
OthersInvestments in partnerships for which equity interests are recorded
on a net basis
Investments in silent partnerships
Others

¥

55
4,785
6,065
325
140
9

¥ 1,943
3,399

3. Net receivables/payables arising from derivatives are shown.
Millions of yen

Thousands of U.S. dollars

As of March 31, 2023
(1) Notes and accounts receivable - trade
Allowance for doubtful receivables(Note 2)
Subtotal(2) Short-term investment securities,
investment securities (Note 3)(3) Long-term loans receivable
Assets total

Book value¥ 282,828

Fair value－¥

Difference－¥Book value$ 2,118,091(1,483)－－

11,107－－

281,345

281,331(13)

2,106,983

2,106,879(104)

172,195

172,158(36)

1,289,562

1,289,286

(275)

795
¥ 454,335

821¥ 454,311

¥

25
(24)

5,954
$ 3,402,500

6,148$ 3,402,314

$

193
(186)

(1) Notes and accounts payable - trade(2) Short-term loans payable andCommercial papers-liabilities(3) Current portion of bonds payable(4) Income taxes payable(5) Bonds payable(6) Long-term loans payable
Liabilities total
Derivative transactions (Note 4)¥ 111,283¥ 111,283

¥

－

$

$

$

－

81,56881,568－610,861

610,861

－

5,050
6,329
50,19574,724¥ 329,150
¥
(91)

5,049
6,329
49,341
74,028¥ 327,600
¥
(91)

¥
¥

(0)
－
(853)
(695)
(1,549)－37,81947,403375,908559,605$ 2,464,992$(682)

37,81647,403
369,512554,397$ 2,453,385
$
(682)

(3)
－
(6,395)(5,208)$ (11,606)$－

833,393$

Fair value－

833,393

Difference$－

Note: 1. "Cash and deposits" are not shown because these financial instruments are in cash or have a short maturity and these values approximate
these book values
2. Allowance for doubtful accounts individually recorded on accounts receivable for completed construction contracts is deducted.
3. Equity securities without market prices and investments in partnerships for which equity interests are recorded on a net basis are notincluded in "(2) Short-term investment securities and investment securities".
These financial instruments recorded in the consolidated balance sheets are as follows:
Thousands of
U.S. dollars

Millions of yen

As of March 31, 2023
Equity securities without market prices
Stocks of subsidiaries
Stocks of affiliated companies
Unlisted stocks
Investments in Limited Liability Company
Unlisted preferred equity securities
OthersInvestments in partnerships for which equity interests are recorded
on a net basis
Investments in silent partnerships
Others

¥

$

55
631
6,667
305
140
9

417
4,730
49,930
2,287
1,049
73

$ 12,539
30,652¥ 1,674
4,093

4. Net receivables/payables arising from derivatives are shown.
Fair value information of financial instruments by level of inputs
The fair values of financial instruments are categorized into the following three levels based on the observability and materiality of the inputs used
to measure fair values.
Level 1 fair value: The fair values which are measured by using observable inputs that reflect the quoted market prices for identical assets or
liabilities in active markets
Level 2 fair value: The fair values which are measured by using observable inputs that are not included in level 1
Level 3 fair value: The fair values which are measured by using unobservable inputs
If multiple inputs that have significant impact on measurement of fair values are used, the fair values are categorized in the lowest priority level inmeasurement of fair values among the levels to which these inputs belong.
(1) Financial assets and liabilities of which fair value is recognized in the consolidated balance sheets

As of March 31, 2023
Short-term investment securities,
investment securities
Other investment securities
Stocks
Bonds
OthersAssets total

Level 1

¥ 153,491－－
153,491

Millions of yen
Fair value
Level 2
Level 3¥－697
12,86813,566

¥

Total

－
－
－
－

Level 1Thousands of U.S. dollars
Fair value
Level 2
Level 3

¥ 153,491 $ 1,149,491 $
－
5,224
－
697
96,371－
12,868
101,596
1,149,491
167,057$

Total－ $ 1,149,491
5,224－
96,371－－ 1,251,088

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Derivative Transactions
Currency-related transactions
Liabilities total

682
682

－
－

¥

¥

91
91

¥

－
－

¥

91
91 $

－
－ $

$

－
－$

682
682

(2) Financial assets and liabilities of which fair value is not recognized in the consolidated balance sheets

As of March 31, 2023
Notes and accounts receivable - trade
Short-term investment securities,
investment securities
Held-to-maturity debt securities
Bonds
OthersLong-term loans receivable
Assets total
Notes and accounts payable - trade
Short-term loans payable andCurrent portion of bonds payable
Income taxes payable
Bonds payable
Long-term loans payable
Liabilities total

Level 1
－
¥

¥
¥

¥

－
－
－
－
－
－
－
－
－
－
－

Millions of yen
Fair value
Level 2
Level 3
¥ 281,331
－
¥

Total
¥ 281,331

5,100
－
821
¥ 287,253¥ 111,283
81,5685,049
6,329
49,341
74,028¥ 327,600

5,100
－
821
¥ 287,253¥ 111,283
81,5685,049
6,329
49,341
74,028¥ 327,600

¥
¥

¥

－
－
－
－
－
－
－
－
－
－
－

Thousands of U.S. dollars
Fair value
Level 1
Level 2
Level 3Total$$
－ $ 2,106,879－ $ 2,106,879$$$

38,198
－
－
－
6,148
－
－ $ 2,151,226－ $ 833,393
610,861－
37,816－47,403－
369,512－554,397－－ $ 2,453,385$$$

38,198
－
－
－
6,148
－
－ $ 2,151,226－ $ 833,393
610,861－
37,816－47,403－
369,512－554,397－－ $ 2,453,385

Note: Description of the valuation techniques and inputs used to measure fair value
Assets
Notes and accounts receivable - trade
The fair values are based on the present value of discounted cash flows using the interest rate determined by the factors of the estimatedcollection terms, period to maturity and credit risks, with respect to each receivable categorized by collection terms.
These financial instruments are classified as Level 2.
Short-term investment securities, investment securities
Listed stocks and Bonds are based on the prices of exchange and the prices presented by the dealing financial institutions.
Listed stocks are classified as Level 1 because these financial instruments are traded in active markets.
Bonds of the Company are classified as Level 2 because these financial instruments are not traded in the market frequently and are notrecognized as quoted market prices in active markets.
Certificates of deposit are classified as Level 2 because these financial instruments have a short maturity and these value approximatesthese book value.
Long-term loans receivable
These financial instruments are categorized by collection terms and made into credit risk categories for credit management.
The fair values of these are based on the present value of discounted cash flows at the Companies' assumed corporate discount rate byadding the credit spread to the appropriate indexes, such as the yield of government bonds.
These financial instruments are classified as Level 2.
Liabilities
Notes and accounts payable - trade, Short-term loans payable and Commercial papers-liabilities, and Income taxes payable
These financial instruments are classified as Level 2 because these have a short maturity and these value approximates these book value.
Current portion of bonds payable and Bonds payable
The fair values of the Companies' bonds payable are based on the market prices and classified as Level 2.
However, the fair values of some of the consolidated subsidiaries' bonds payable are classified as Level 2 because there is no market
price.
The fair values are based on the present value of discounted cash flows using the interest rate assumed for a similar new bond, withrespect to the total amount of principal and interest.
Long-term loans payable
The fair values of these financial instruments are based on the present value of discounted cash flows using the interest rate assumed fora similar new loan, with respect to the total amount of principal and interest, and are classified as Level 2.
However, Some long-term loans payable are subject to exceptional treatment of interest rate swaps.
The fair values of these financial instruments are based on the present value of discounted cash flows using the interest rate assumed fora similar new loan, with respect to the total amount of principal and interest treated together with the interest rate swap.
Derivative Transactions
The fair values of interest rate swaps to which the exceptional treatment is applied are included in the fair values of long-term loans
payable because these financial instruments are accounted for as an integral part of long-term loans payable that are hedged (referred to“Liabilities” above).
The fair values of foreign exchange contracts are based on the prices presented by the dealing financial institutions, and classified as
Level 2.

15. Marketable Securities and Investment Securities
Held-to-maturity debt securities:
As of March 31, 2022
Securities with a fair value that exceeds the book value
Securities with a fair value that does not exceed the book value
Total

Book value¥ 3,845
1,200¥ 5,045

Millions of yen
Fair value¥ 4,007
1,152¥ 5,159

Difference
¥ 162
(47)
¥ 114

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Available-for-sale securities with a fair value:
As of March 31, 2022
Securities with a book value that exceeds the acquisition cost:
Stocks
Bonds
OthersSubtotal
Securities with a book value that does not exceed the acquisition cost:
Stocks
Bonds
OthersSubtotal
Total

Book value

For the fiscal year ended March 31, 2022
Available-for-sale securities soldMillions of yen
Acquisition cost

Difference¥ 152,889
619
10,431
163,941¥ 46,773
600
9,307
56,681¥ 106,115
19
1,124
107,259

5,623
99
11,514
17,238¥ 181,179

7,089
100
11,556
18,746¥ 75,428(1,466)(0)(42)(1,508)¥ 105,751

Sales amount¥5,123

Millions of yen
Total gain on sales¥ 3,127

Total loss on sales
12

Held-to-maturity debt securities:
As of March 31, 2023
Securities with a fair value that exceeds
the book value
Securities with a fair value that does notexceed the book value
Total

Book value

Millions of yen
Fair value¥ 2,324¥ 2,409

2,813

2,691

¥ 5,137¥ 5,100

Difference
¥

¥

85

Thousands of U.S. dollars
Book value
Fair value
Difference$ 17,407$ 18,045

$

638

(122)

21,066

20,152

(913)

(36)

$ 38,474$ 38,198$ (275)

Available-for-sale securities with a fair value:
As of March 31, 2023
Securities with a book value that exceeds
the acquisition cost:
Stocks
Bonds
OthersSubtotal
Securities with a book value that does notexceed the acquisition cost:
Stocks
Bonds
OthersSubtotal
Total

Book value

Millions of yen
Acquisition cost

¥

¥

¥

148,213207
12,433160,853
5,278
490
434
6,203
167,057¥

43,966200
10,62554,792
6,391
500
486
7,378
62,171

Difference¥¥

Thousands of U.S. dollars
Book value
Acquisition cost
Difference

104,246
7
1,808
106,061$ 1,109,963
1,550
93,114
1,204,628(1,113)(9)(51)(1,174)
104,886

39,5283,673
3,257
46,459$ 1,251,088$$

329,266
1,497
79,573410,337
47,8683,744
3,646
55,258465,596$$780,69752
13,540794,290(8,339)(70)(388)(8,798)785,492

Note: The Companies recognized losses on write-down of ¥285 million(US$2,132 thousand) for securities (¥137 million(US$1,033 thousand) for
other than equity securities without market prices and ¥147 million(US$1,098 thousand) for equity securities without market prices).
Write-down losses are recognized in each of following cases.
Case of other than equity securities without market prices
・Fair value of fiscal year end and quarter settlement day in a row decline more than 30% compared to book value in succession.
・Fair value declined more than 50% compared to book value.
Case of equity securities without market prices
・Net worth of equivalent of Equity declines more than 50% compared to acquisition cost.

For the fiscal year ended March 31, 2023
Available-for-sale securities soldMillions of yen
Sales amount Total gain on sales Total loss on sales¥11,676¥ 8,083¥ 44

Thousands of U.S. dollars
Sales amount Total gain on sales Total loss on sales$ 87,445$ 60,540$ 336

16. Derivative Transactions
For the year ended March 31, 2022
Derivative transactions to which the hedge accounting method is not applied:
None
Derivative transactions to which the hedge accounting method is applied:(1) Currency-related transactions
Method of processing
Method in principle
Total

Measures
Forward foreignexchange contracts
Buy EUR
Buy USD

Objects
Forecasted purchasing transaction
Forecasted purchasing transaction

Contract amount¥ 4,630¥ 1,562¥ 6,193

Millions of yen
more than 1 year Estimated fair value¥ 1,147¥ 537¥ 1,684

¥
¥
¥

240
265
505

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印刷日時:23/09/01 16:31(2) Interest-related transactions
Method of processing

MeasuresInterest rate swaps
Exceptional treatment
Payment fixed,of interest rate swaps
Receive floating

Objects

Contract amountLong-term loans payable¥ 8,080

Millions of yen
more than 1 year Estimated fair value¥ 5,720*(*) The fair value of interest rate swaps that qualify for special treatment is included in long-term loans payable.
For the year ended March 31, 2023
Derivative transactions to which the hedge accounting method is not applied:(1) Currency-related transactions
MeasuresNon-market
transactions

Contract
amountForward foreignexchange contracts
Buy EUR¥

633

Buy USD

¥

324

¥

958

Total

Millions of yen
more than Estimated
1 yearfair value

Loss (gain)
on valuation

Contract
amountThousands of U.S. dollars
more than EstimatedLoss(gain)
on valuation
1 yearfair value

¥
¥

－

¥

84

¥

84

$ 4,746

$

－

$

630

$

630

－

¥

95

¥

95

$ 2,433

$

－

$

711

$

711

¥

－

¥

179

¥

179

$ 7,179$－$ 1,341$1,341(2) Interest-related transactions
None
Derivative transactions to which the hedge accounting method is applied:(1) Currency-related transactions
Method of processing

Millions of yen
more than
Estimated
1 yearfair value

Objects

Contract
amountBuy EUR

Forecasted purchasingtransaction¥ 1,011¥

Buy USD

Forecasted purchasingtransaction¥ 3,025¥ 2,860

Buy CNH

Forecasted purchasingtransaction¥ 2,323¥ 6,361

MeasuresThousands of U.S. dollars
Estimated
Contract more than
1 yearfair value
amountForward foreignexchange contracts
Method in principle

Total

24

$ 7,578$ 4,931$¥ (163)$ 22,660$ 21,420$ (1,223)¥ 1,258¥ (131)$ 17,403$ 9,424$ (986)¥ 4,777¥ (270)$ 47,641$ 35,776$ (2,024)

658

¥

185

(2) Interest-related transactions
Method of processing
Exceptional treatment
of interest rate swaps

MeasuresInterest rate swaps
Payment fixed,
Receive floating

Millions of yen
more than
Estimated
1 yearfair value

Objects

Contract
amountLong-term loans
payable¥ 5,720¥4,360Thousands of U.S. dollars
Contract more than
Estimatedamount1 yearfair value*$ 42,836$ 32,651*(*) The fair value of interest rate swaps that qualify for special treatment is included in long-term loans payable.

17. Retirement Benefits
The Company has a defined benefit plan that consists of a defined benefit pension plan and a lump-sum benefit plan,and has also a corporate defined contribution pension plan since April 2020.
Some of the domestic consolidated subsidiaries have a defined benefit pension plan and a defined contribution pension plan, and some of theforeign consolidated subsidiaries have a defined contribution plan.
In addition, the other consolidated subsidiaries have lump-sum benefit plans based on the simplified method.
The schedule of the defined benefit obligation
Balance at the beginning of the fiscal year
Service cost
Interest cost
Actuarial gain and loss
Benefit paid
Prior service cost
Other
Balance at the end of the fiscal year

Millions of yen
2022
43,1932,333
83
3(2,258)－234¥
43,588¥2023
43,5882,245
111
48(2,088)(39)919¥
44,785¥

Thousands of
U.S. dollars
2023$ 326,432
16,813838
362(15,638)
(296)
6,883
$ 335,395

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The schedule of the pension assets
Balance at the beginning of the fiscal year
Expected return on pension assets
Actuarial gain and loss
Contributions by the employer
Benefit paid
Other
Balance at the end of the fiscal year

Millions of yen
2022
23,689283
35860(1,004)
3¥
23,867¥

The reconciliation of the defined benefit obligations and pension assets to the liabilities
and assets on retirement benefits recognized in the consolidated balance sheets

Retirement benefit obligation of unfunded plan
Net amount of liabilities and assets recognized in consolidated balance sheets
Net defined benefit liability
Net defined benefit asset
Net amount of liabilities and assets recognized in consolidated balance sheets

21,849(2,129)19,720¥¥The breakdown of items in retirement benefit costs
Service cost
Interest cost
Expected return on pension assets
Amortization of actuarial differences
Amortization of prior service costother
Retirement benefit costs

2023
23,867
276
(302)
916
(991)
39
¥
23,806¥2023
22,746(23,806)(1,060)22,03820,97822,932(1,953)
20,978

171,737(14,630)$ 157,107

2023
2,245
111
(276)
116
(39)
(28)
¥
2,128

Thousands of
U.S. dollars
2023$
16,813838(2,069)
869
(296)
(216)
$
15,938¥¥Millions of yen
2022
2,333
83
(283)
95
－
－
¥
2,228
¥

Remeasurements of defined benefit plans¥

Millions of yen
2022

Actuarial gain and loss
Total

¥
¥

127
127

Unrecognized remeasurements of defined benefit plans

¥
¥

2023
(222)
(222)

Millions of yen
2022

Unrecognized actuarial (gain) loss
Total

¥
¥

2023
250
250

The breakdown of pension assets by major category
Bonds
Equities
General account
other
Total

2022

The items of actuarial assumptions
Discount rate
Expected long-term return on pension assets
Expected rate of salary raise

2022

¥
¥

472
472

Thousands of
U.S. dollars
2023
$
3,535
$
3,535

25%
8%
59%
8%
100%
2023
0.2%
1.2%
5.6%

0.2%
1.2%
5.6%

2022
¥

Thousands of
U.S. dollars2022$ (1,666)$ (1,666)

2023

24%
9%
58%
9%
100%

Millions of yen
Required amount of contribution to the corporate defined contribution pension plan

Thousands of
U.S. dollars
2023$ 178,745
2,069(2,263)
6,863(7,425)298$ 178,287
Thousands of
U.S. dollars
2023$ 170,349(178,287)(7,938)165,046
157,107

Millions of yen
2022
21,738(23,867)(2,129)21,84919,720Retirement benefit obligation of funded plan
Pension assets

印刷日時:23/09/01 16:31

2023
445

¥

494

Thousands of
U.S. dollars
2023
$
3,697

18. Deferred Tax Accounting
The tax effects of temporary differences which gave rise to deferred tax assets
and liabilities at March 31, 2022 and 2023 are as follows:
As of March 31
Deferred tax assets:
Real estate for sale
Buildings, structures and land
Investment securities
Allowance for doubtful receivables
Provision for bonuses
Provision for loss on construction contracts
Net defined benefit liability
Tax loss carryforwards
Other
Subtotal
Less: valuation allowance

Millions of yen
2022
¥

194
1,217
242
389
1,888
818
6,727
1,281
4,711
17,472(5,110)

2023
¥

171
5,042
264
533
1,597
2,898
6,775
1,638
5,328
24,250(7,739)Thousands of
U.S. dollars
2023
$

1,285
37,764
1,980
3,997
11,962
21,70450,742
12,271
39,902
181,611(57,959)

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Deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Net defined benefit asset
Other
Deferred tax liabilities
Net deferred tax assets (liabilities)¥

12,361(32,244)(651)(1,479)(34,374)¥ (22,012)

印刷日時:23/09/01 16:31

16,511$ 123,652(32,035)(598)(2,199)(34,834)¥ (18,323)(239,914)(4,484)(16,474)(260,874)$ (137,222)¥

In addition to the above, the Companies recognized deferred tax liabilities of ¥6,124 million and ¥6,069 million (US$45,455 thousand) related torevaluation reserve for land at March 31, 2022 and 2023, respectively.
Reconciliation between the statutory tax rate and the effective tax rate
2022
2023
Statutory tax rate
30.6%
30.6%
Expenses not deductible for income tax purposes
1.0%
2.6%
Non-taxable income(0.7)%(1.3)%
Inhabitant taxes (per capita levy)
0.7%
1.1%
Valuation allowance
3.8%
7.2%
Tax exemption(0.5)%(1.4)%(0.3)%(1.4)%
Other
Effective tax rate
34.6%
37.4%

19. Business Combinations(Becoming a subsidiary through additional acquisition of shares)
On September 12, 2022, the Company acquired an equity-method affiliate, PT Tatamulia Nusantara Indah (headquartered in the Republicof Indonesia, hereinafter referred to as “TATA”), from existing shareholders and made it a consolidated subsidiary.
Since the capital of TATA is equivalent to more than 10/100 of the Company's capital, TATA is a specified subsidiary of the Company.
1.

Outline of this Business Combination(1)
Name and business of the acquired company
Name of the acquired company: PT Tatamulia Nusantara Indah
Description of business: General construction business(2) Main reasons for the Business Combination
TATA is one of the leading companies in the construction industry in the Republic of Indonesia, a growing market. In October
2020, the Company subscribed to a third-party allotment of new shares of TATA and made it an equity-method affiliate of theCompany.
As the Group has identified overseas business development as one of the key management priorities in the “Medium-Term
Management Plan 2024 Rolling Plan”, we aim to establish a market position in growing country by strengthening relationships
with local capital.
(3) Date of the Business Combination
June 30, 2022 (deemed acquisition date)
September 12, 2022 (additional share acquisition date)(4) Legal form of the Business Combination
Acquisition of shares for cash consideration(5) Company names after the Business Combination
Unchanged.
(6) Ratio of voting rights acquired
Ratio of voting rights before acquisition:
40.01%
Ratio of voting rights additionally acquired:26.99%
Ratio of voting rights after acquisition:
67.00%(7) Main basis for determining the acquisition
The Company acquired shares for cash consideration.

2.

Period of the acquired company's results included in the consolidated financial statements
As June 30, 2022 is the deemed acquisition date, the results from July 1, 2022 to December 31, 2022 are included. Since TATA wasan equity-method affiliate of the Company, the portion of TATA's results from January 1, 2022, to June 30, 2022, attributable to theCompany, is reported as equity in earnings of affiliates.
TATA's fiscal year ends on December 31, which is three months different from the Company's consolidated fiscal year end on March
31.

3.

Breakdown of acquisition cost by type of consideration
Fair value of shares of the acquired company held prior to the additional acquisition on the date ofbusiness combination
Consideration for additional shares of the acquired company acquired on the date of businesscombination: cash
Acquisition cost

4.

¥5,772 million(US$43,226 thousand)¥3,893 million(US$29,156 thousand)¥9,665 million(US$72,383 thousand)

Details and amounts of major acquisition-related expenses
Advisory fees, etc. ¥13 million (US$98 thousand)Difference between the acquisition cost of the acquired company and the total acquisition cost for each transactionthat led to the acquisition
Difference related to step acquisitions ¥1,908 million(US$14,294 thousand)5.

Amount of goodwill incurred, reason for incurrence, amortization method and amortization period(1) Amount of goodwill incurred ¥1,112 million(US$8,327 thousand)(2) Reason for the incurrence
Since the acquisition cost exceeded the net amount allocated to the assets received and liabilities assumed, the excess amount
was recorded as goodwill.
(3) Amortization method and period
Equal amortization over 3 years

6.

Amounts of assets received and liabilities assumed on the date of business combination and their major breakdown
Current assets¥21,752 million(US$162,903 thousand)Fixed assets¥6,029 million(US$45,157 thousand)

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7.

Total assets¥27,782 million(US$208,060 thousand)Current liabilities
Fixed liabilities
Total liabilities¥13,685 million¥1,155 million¥14,841million(US$102,489 thousand)(US$8,655 thousand)(US$111,145 thousand)

印刷日時:23/09/01 16:31

Effect of the Business Combination on the consolidated statement of income for the current consolidated fiscal year assuming theBusiness Combination had been completed on the first day of the consolidated fiscal year:
Net sales¥15,775 million(US$118,138 thousand)Operating income¥813 million(US$6,089 thousand)
Method of calculating the estimated amountThe difference between the net sales and profit/loss information calculated as if the business combination had been completed on thefirst day of the consolidated fiscal year and the net sales and profit/loss information in the consolidated statement of income for thecurrent consolidated fiscal year is the estimated amount of impact.

20. Transaction under common control(Toda Bldg. Partners Co., Ltd. becomes a wholly owned subsidiary through a share exchange)
At the Board of Directors' meeting held on December 27, 2022, the Company resolved to implement a share exchange in which theCompany becomes the wholly owning parent company and Toda Bldg. Partners Co. Ltd. (Head office: 3-4-10 Ariake, Koto-ku, Tokyo;
Representative Director: Yoshihiko Saito; hereinafter referred to as “Toda BP”), the Company’s consolidated subsidiary, as its wholly owned
subsidiary through a share exchange (hereinafter referred to as the “Share Exchange”), and concluded a share exchange agreement withToda BP on the same date.
The Share Exchange was implemented through a simplified share exchange procedure pursuant to Article 796, Paragraph 2 of theCompanies Act for the Company, and through a short-form share exchange procedure pursuant to Article 784, Paragraph 1 of the Companies
Act for Toda B.P, without obtaining approval by a resolution at a general meeting of shareholders of the respective companies, and effected on
February 28, 2023.
1.

Outline of the transaction(1) Name and the business of the company involved in the combination
Name of the combined company: Toda Bldg. Partners Co., Ltd.
Description of business: Building management business, construction business, etc.
(2) Date of the Business Combination
February 28, 2023 (effective date of the Share Exchange)(3) Legal form of the Business Combination
Acquisition of shares through share exchange with non-controlling shareholder(4) Company names after the Business Combination
Unchanged.
(5) Other matters relating to outline of the transaction
The Company decided to make Toda BP a wholly owned subsidiary in order to strengthen the unity of the Group and further
enhance the Group's flexible management.

2.

Outline of accounting procedures implemented
In accordance with the “Accounting Standard for Business Combinations” and the “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures, etc.”, the transaction was accounted for as a transaction with anoncontrolling shareholder among transactions under common control.

3.

Matters listed in the case of additional acquisition of shares of a subsidiary(1) Breakdown of acquisition cost by type of consideration
Consideration for acquisition - Market price of the Company’s common stock on the effective date of
the Share Exchange (February 28, 2023)
Acquisition cost
(2)

Exchange ratio by type of shares, calculation method and number of shares delivered① Exchange ratio by type of shares
The Company
Company name
(Wholly owning parent company inshare exchange)
Allotment ratio for the Share Exchange(Share exchange ratio)

1¥645 million(US$4,832 thousand)¥645 million(US$4,832 thousand)Toda BP(Wholly owned subsidiarycompany in share exchange)
673.27(Note1)

Note1: Rounded to two decimal places.
Note2: Shares of common stock of the Company were allotted and delivered for each share of common stock of Toda BP at theabovementioned allotment ratio. However, no shares were allocated for the 20,650 shares of Toda BP common stock heldby the Company as of the effective date of the Share Exchange (February 28, 2023). The Company did not issue any newshares because all the shares delivered were allocated from the treasury stock held by the Company.
Note3: Toda BP did not issue any stock acquisition rights or bonds with stock acquisition rights in connection with the Share
Exchange.
②

Calculation method of the Share Exchange ratio
As the Company's common stock is listed on the Tokyo Stock Exchange Prime Market, the market price method was used
to calculate the value of the Company's shares. November 30, 2022 was set as the calculation base date for the market
price method, and the closing price of the Company's common stock on the Tokyo Stock Exchange Prime Market on thebase date, the simple average closing price for the one-month period prior to the base date, the simple average closing pricefor the three-month period prior to the base date, and the simple average closing price for the six-month period prior to thebase date were used.
The results of each calculation were as follows.
Closing market price on the base date
Simple average of closing price for the last 1 month
Simple average of closing price for the last 3 months
Simple average of closing price for the last 6 months¥732(US$5.482)¥708(US$5.302)¥730(US$5.467)¥716(US$5.362)

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With respect to the value of Toda BP’s shares, in order to ensure fairness and appropriateness when considering the shareexchange ratio to be used in the Share Exchange, YAMADA Consulting Group Co., Ltd. was appointed as a third-party
appraiser independent of the Company and Toda BP.
YAMADA Consulting Group Co., Ltd. did not adopt the market price method or the comparable listed company method forthe valuation of the common stock of Toda BP as it is unlisted and there were no comparable listed companies available.
Instead as the source of the stock's value was its ability to earn future earnings, the discounted cash flow method (hereinafterreferred to as the “DCF method”) was used to reflect the ability to earn earnings based on future business activities in thevaluation, rather than the adjusted book value net asset method.
The results of YAMADA Consulting Group’s calculation of Toda BP’s equity value per share based on the DCF method are
as follows.
Calculation result(yen/ share)
431,136 – 539,909(US$ 3,228 — 4,043)

DCF method

The valuation range of the share exchange ratio, assuming that the value per share of common stock of the Company was
1 based on the above calculation method, was as follows.
Calculation method adopted
The Company
Toda BP
Market price method③
4.

Calculation results of share exchange ratio
608.95 – 737.58(US$4.56 — 5.52)

DCF method

Number of shares delivered
908,915 shares

Matters related to changes in the Company's interest in transactions with noncontrolling shareholder(1)
Main reasons for changes in capital surplus
Acquisition of additional shares of a subsidiary(2)

Amount of capital surplus decreased due to transactions with noncontrolling shareholder¥87 million (US$652 thousand)Toda Road Co., Ltd. becomes a wholly owned subsidiary through a share exchange
At the Board of Directors' meeting held on December 27, 2022, the Company resolved to implement a share exchange in which theCompany becomes the wholly owning parent company and Toda Road Co. Ltd. (Head office: 2-13-6 Nihonbashi-Kakigaracho, Chuo-ku,
Tokyo; Representative Director: Koichi Kubota; hereinafter referred to as “Toda Road”), the Company’s consolidated subsidiary, as its wholly
owned subsidiary through a share exchange (hereinafter referred to as the “Share Exchange”), and concluded a share exchange agreementwith Toda Road on the same date.
The Share Exchange was implemented through a simplified share exchange procedure pursuant to Article 796, Paragraph 2 of theCompanies Act for the Company, without obtaining an approval of the general meeting of shareholders of the Company, and for Toda Road,
the implementation of the share exchange agreement was approved by a resolution at an extraordinary general meeting of shareholders of
Toda Road held on January 19, 2023, and effected on February 28, 2023.
1.

Outline of the transaction(1) Name and the business of the company involved in the combination
Name of the combined company: Toda Road Co., Ltd.
Description of business: Road paving and road construction business(2) Date of the Business Combination
February 28, 2023 (effective date of the Share Exchange)(3) Legal form of the Business Combination
Acquisition of shares through share exchange with non-controlling shareholder(4) Company names after the Business Combination
Unchanged.
(5) Other matters relating to outline of the transaction
The Company decided to make Toda Road a wholly owned subsidiary in order to strengthen the unity of the Group andfurther enhance the Group's flexible management.

2.

Outline of accounting procedures implemented
In accordance with the “Accounting Standard for Business Combinations” and the “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures, etc.”, the transaction was accounted for as a transaction with anoncontrolling shareholder among transactions under common control.

3.

Matters listed in the case of additional acquisition of shares of a subsidiary(1) Breakdown of acquisition cost by type of consideration
Consideration for acquisition - Market price of the Company’s common stock on the effective date of
the Share Exchange (February 28, 2023)
Acquisition cost

(2)¥559 million(US$4,187 thousand)¥559 million(US$4,187 thousand)Exchange ratio by type of shares, calculation method and number of shares delivered
Exchange ratio by type of shares①
The Company
Toda Road
Company name
(Wholly owning parent company in(Wholly owned subsidiaryshare exchange)
company in share exchange)

Allotment ratio for the Share Exchange(Share exchange ratio)1

220.61(Note 1)

Note1: Rounded to two decimal places.
Note2: Shares of common stock of the Company were allotted and delivered for each share of common stock of Toda Road at
the abovementioned allotment ratio. However, no shares were allocated for the 20,430 shares of Toda Road common
stock held by the Company as of the effective date of the Share Exchange (February 28, 2023). The Company did notissue any new shares because all the shares delivered were allocated from the treasury stock held by the Company.

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Note3: Toda Road did not issue any stock acquisition rights or bonds with stock acquisition rights in connection with the Share
Exchange.
②

Calculation method of the Share Exchange ratio
As the Company's common stock is listed on the Tokyo Stock Exchange Prime Market, the market price method wasused to calculate the value of the Company's shares. November 30, 2022 was set as the calculation base date for themarket price method, and the closing price of the Company's common stock on the Tokyo Stock Exchange Prime Market
on the base date, the simple average closing price for the one-month period prior to the base date, the simple averageclosing price for the three-month period prior to the base date, and the simple average closing price for the six-month
period prior to the base date were used.
The results of each calculation were as follows.

Closing market price on the base date
Simple average of closing price for the last 1 month
Simple average of closing price for the last 3 months
Simple average of closing price for the last 6 months¥732(US$5.482)¥708(US$5.302)¥730(US$5.467)¥716(US$5.362)

With respect to the value of Toda Road’s shares, in order to ensure fairness and appropriateness when considering theshare exchange ratio to be used in the Share Exchange, YAMADA Consulting Group Co., Ltd. was appointed as a third-party
appraiser independent of the Company and Toda Road.
YAMADA Consulting Group Co., Ltd. did not adopt the market price method or the comparable listed company method forthe valuation of the common stock of Toda Road as it is unlisted and there were no comparable listed companies available.
Instead as the source of the stock's value was its ability to earn future earnings, the discounted cash flow method (hereinafterreferred to as the “DCF method”) was used to reflect the ability to earn earnings based on future business activities in thevaluation, rather than the adjusted book value net asset method.
The results of YAMADA Consulting Group’s calculation of Toda Road’s equity value per share based on the DCF method
are as follows.
Calculation result(yen/ share)
147,625 – 170,333
DCF method(US$ 1,105 — 1,275)
The valuation range of the share exchange ratio, assuming that the value per share of common stock of the Company was
1 based on the above calculation method, was as follows.
Calculation method adopted
The Company
Toda Road
Market price method③
4.

Calculation results of share exchange ratio
208.51 - 232.70(US$1.56 — 1.74)

DCF method

Number of shares delivered
787,578 shares

Matters related to changes in the Company's interest in transactions with noncontrolling shareholder(1) Main reasons for changes in capital surplus
Acquisition of additional shares of a subsidiary(2) Amount of capital surplus increased due to transactions with noncontrolling shareholder¥44 million (US$334 thousand)

21. Asset Retirement Obligations
The asset retirement obligations in the consolidated balance sheets
We chose not to describe the detail in the report due to its immateriality.

22. Investment and Rental Properties
As of March 31, 2022
Real estate for rent

Millions of yen
Book Value
Fair Value¥ 116,313¥ 226,704

As of March 31, 2023
Real estate for rent

Millions of yen
Book Value
Fair Value¥124,483¥ 236,154

Thousands of U.S. dollars
Book Value
Fair Value$ 932,247$ 1,768,551

23. Revenue Recognition(1) Disaggregation of revenue from contracts with customers

For the year ended
March 31, 2023
Goods or services transferredover time
Goods or services transferred
at a point in time
Revenue from contracts withcustomers
Other revenue
Sales on third parties

Millions of yen
Reporting segments
Domestic
Domestic
Overseas
Investment andGroup
Investment andDevelopment
Companies
Development

Building
Construction

Civil
Engineering¥ 312,270¥ 123,427

20,5801,676

14,36923,378398

1,527

61,930332,850

125,103

14,36941,626

23,8101,527

539,28824¥ 332,875－¥ 125,103

¥

¥

－

4,361
18,731¥¥

18,247871
42,498¥¥23,412

2,594
26,404

Environment
and Energy
¥

¥

－

14
1,541

Total
¥

¥

477,357

7,866
547,155

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Building
Construction

For the year ended
March 31, 2023

Civil
Engineering

Thousands of U.S. dollars
Reporting segments
Domestic
Domestic
Overseas
Investment andGroup
Investment andDevelopment
Companies
Development

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Environment
and Energy

Total

Goods or services transferred$ 2,338,576$ 924,345$－$ 136,654$ 175,335 $－$ 3,574,911
over time
Goods or services transferred
154,124
12,552
107,614175,083
2,980
11,441
463,796
at a point in time
Revenue from contracts with
2,492,700
936,897
107,614311,737
178,316
11,441
4,038,708
customers
186
32,665
6,527
19,428105
58,913
Other revenue－
Sales on third parties$ 2,492,886$ 936,897$ 140,279$ 318,265$ 197,744 $ 11,546$ 4,097,621(2) Information as a basis to understand revenue from contracts with customers
Information as a basis to understand revenue from contracts with customers is described in the consolidated financial statements "Notes (2.
Summary of Significant Accounting Policies, 8) Recognition of net sales from construction contracts and related costs)".
(3) Information related to the relationship between the satisfaction of performance obligations based on contracts with customers and the cash
flows resulting fromsuch contracts, and the amounts and timing of revenue expected to be recognized in or after the next consolidated fiscal year from contracts
with customers that existed at the current consolidated fiscal year-end(a) Balances, etc. of contract assets and contract liabilities
Thousands of
U.S. dollars
Balance as ofMarch 31, 2023
$ 795,002
1,319,480
250,194

Millions of yen
Balance as ofApril 1, 2022
¥ 71,821
136,657
28,369Receivables from contracts with customers
Contract assets
Contract liabilities

Balance as ofMarch 31, 2023
¥ 106,156
176,190
33,408Contract assets are rights of the Companies to the unbilled consideration for performance obligations satisfied or partially satisfied as ofclosing date, with respect to performance obligations related to the construction, etc. of buildings or structures, etc. based on construction
contracts.
Contract assets are transferred to receivables from contracts with customers when the rights of the Companies to the consideration become
unconditional upon invoicing or delivery.
In addition, there is no clear link between the timing of satisfaction of performance obligations and the timing of receipt of the consideration
for transaction because payment terms for construction contracts vary.
Contract liabilities consist primarily of advances received from customers based on payment terms stipulated for individual construction
contracts, with respect to construction contracts for which revenue is recognized over time.
In addition, contract liabilities are reversed upon recognition of revenue.
The amounts of contract liabilities recognized as revenue in the current consolidated fiscal year among the balance of contract liabilities inthe beginning of the current consolidated fiscal year are ¥24,659 million (US$184,670 thousand).
Furthermore, the amounts of revenue recognized in the current consolidated fiscal year for performance obligations that were satisfied or
partially satisfied in the past consolidated fiscal years is not material.
(b) Transaction price allocated to the remaining performance obligations
At the current consolidated fiscal year-end, the total transaction price allocated to unsatisfied or partially unsatisfied performance obligationsis ¥821,404 million (US$6,151,458 thousand) in the Companies.
The total transaction price allocated to the remaining performance obligations, such as the construction, etc. of buildings or structures, etc. in"Building Construction" and "Civil Engineering", etc., is expected to be recognized as revenue within approximately 4 years
In addition, building management services are expected to be recognized as revenue within 1 year, and sales of real estate in "Domestic
Investment and Development" and "Overseas Investment and Development" are expected to be recognized as revenue within 5 years.

24. Segment Information
Changes in Reportable Segments
Effective from the current consolidated fiscal year, the Group changed its reporting segments from the previous five segments of “Building
Construction”, “Civil Engineering”, “Investment and Development”, “Domestic Group Companies”, and “New Business” to six segments of “Building
Construction”, “Civil Engineering”, “Domestic Investment and Development”, “Domestic Group Companies”, “Overseas Investment andDevelopment”, and “Environment and Energy”. The changes were made to align the classification of reportable segments with the classification ofbusiness performance targets in the “Medium-Term Management Plan 2024 Rolling Plan” and the classification of business reports in the monthly
report materials of the Board of Directors.

For the year ended
March 31, 2022
Net sales:
Customers
Inter-segment
Total
Segment profit (loss)
Depreciation andamortization
Amortization of goodwill
Impairment loss on
fixed assets

Millions of yen
Reporting segments
Domestic
Overseas
Domestic
Building
Civil
Environment
Investment and Group Investment andConstruction Engineeringand Energy
Development Companies Development

Total

Adjustments Consolidated¥

293,168 ¥
11,456
304,624
7,823 ¥

145,959 ¥
1,996
147,956
11,912 ¥20,683 ¥810
21,494
4,057 ¥

38,726 ¥
6,480
45,207
1,913 ¥

2,283 ¥
－
2,283
705 ¥

¥

1,767 ¥

476 ¥

1,334 ¥

240 ¥

460 ¥

¥

－ ¥

－ ¥

69 ¥

9 ¥

－¥

25 ¥

104

¥

－ ¥

104

¥

－ ¥

－ ¥

140 ¥

0 ¥

－¥

312 ¥

453

¥

39 ¥

492

¥

687 ¥ 501,509－
20,744687
522,254(897) ¥ 25,513

¥

486 ¥

¥

4,765

－ ¥ 501,509(20,744)－(20,744)
501,509¥ (1,128) ¥ 24,385－ ¥TODA CORPORATION FINANCIALSTATEMENTS 2023

4,765

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For the year ended
March 31, 2023
Net sales:
Customers
Inter-segment
Total
Segment profit (loss)
Depreciation andamortization
Amortization of goodwill
Impairment loss on
fixed assets

For the year ended
March 31, 2023
Net sales:
Customers
Inter-segmen
Total
Segment profit (loss)
Depreciation andamortization
Amortization of goodwill
Impairment loss on
fixed assets

Millions of yen
Reporting segments
Domestic
Overseas
Domestic
Building
Civil
Environment
Investment and Group Investment andConstruction Engineeringand Energy
Development Companies Development

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Total

Adjustments Consolidated¥

332,875 ¥
10,989343,865(2,043) ¥125,103 ¥16,507
141,611
11,789 ¥18,731 ¥770
19,502
3,257 ¥

42,498 ¥9,880
52,378
1,971 ¥

26,404 ¥－26,404
1,740 ¥¥

2,260 ¥

712 ¥

1,541 ¥

263 ¥

839 ¥

679 ¥

6,296

¥

－ ¥

6,296

¥

－ ¥

－ ¥

69 ¥

70 ¥

168 ¥

32 ¥

340

¥

－ ¥

340

¥

46 ¥

－ ¥

－ ¥

－ ¥

－¥

10,298 ¥

10,345¥－ ¥10,345¥

1,541 ¥ 547,155－
38,1481,541
585,304
124 ¥ 16,839

Millions of yen
Reporting segments
Domestic
Overseas
Domestic
Environment
Building
Civil
Investment and Group Investment andand Energy
Construction Engineering
Development Companies Development$ 2,492,886 $ 936,897 $
123,626
82,302
2,575,189
1,060,523$ (15,306) $88,294 $140,279 $ 318,265 $
5,772
73,993146,052
392,259
24,394 $ 14,764 $$

11,546 $16,926 $

$

－ $

$

348 $

5,337 $
－ $－$1,970 $

197,744 $－
197,744
13,034 $6,287 $Total¥

－ ¥ 547,155－(38,148)(38,148)547,155¥ (2,704) ¥ 14,135

Adjustments Consolidated

11,546 $ 4,097,621 $－ $ 4,097,621
285,695 (285,695)－
11,546
4,383,316 (285,695) 4,097,621
931 $
126,111 $ (20,255) $ 105,856
5,086 $

47,155 $－$47,155

－$

2,549

－$

77,473

518 $

526 $

1,261 $

241 $2,549 $

－ $

－ $

－$

77,125 $77,473 $Note: 1. Adjustments of segment profit (loss) is negative ¥1,128 million and negative ¥2,704 million (US$20,255 thousand) elimination of intersegment transactions.
2. Segment profit (loss) is adjusted in accordance with operating income as recorded in the consolidated statements of income.
An overview of each reporting segment is as follows.
Building Construction ……………Contracting of building construction work and related business conducted by the Group
Civil Engineering …………………Contracting of civil engineering work and related business conducted by the Company.
Domestic Investment and ………… Businesses related to the Company's independent development, purchase and sale, and leasing of real estate inJapan.
Development
Domestic Group Companies ……Business conducted by domestic consolidated subsidiaries including architectural construction business, civilengineering business, real estate business mainly for building management, hotel business, temporary staffing
service business mainly within the Group companies, and finance and leasing business.
Overseas Investment and ………Businesses related to the independent development, sale and purchase, and leasing of real estate overseas
conducted by overseas consolidated subsidiaries, and construction business conducted by an overseas
Development
consolidated subsidiary in the Republic of Indonesia.
Environment and Energy ………Businesses related to power generation and sales of electricity conducted by the Group.

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25. Related Party Transactions
Related party transactions between the Company and related parties
For the year ended March 31, 2022
None
For the year ended March 31, 2023

Category

affiliatedcompanies

RelatedParty

Yokohama
ShinkoPartnersCo., Ltd.

Capital or
Investment

Address

Type ofBusiness(Millions of
Yen)

Yokohama City,
Yokohama

Percentage ofvoting rights
held(Held by others)

Facility
development,
maintenanceandoperation,
Welfareservice
operationbusiness,etc

50(US$374
thousand)Nature ofTransaction

RelationshipOrders forconstruction
work
Loan of funds
Interlocking
directors

39%(Direct)

Amounts ofTransaction(Millions of
Yen)

Orders forconstruction work

13,184(US$98,734
thousand)

Loan of funds－

Receipt of interest

2(US$14thousand)Account

Balance at theend of the year
(Millions ofYen)accounts
receivable- tradeAccounts
receivable- otherLong-term
loans
receivable

16,416(US$122,945
thousand)57(US$428
thousand)400(US$2,995
thousand)－－Note: 1. Orders for construction work, etc. are determined in the same manner as general terms and conditions of business after price negotiations.
Note: 2. Transaction terms are determined reasonably, taking market interest rates into consideration.
Directors and principal shareholders (only individual shareholders), etc., of the Company
For the year ended March 31, 2022
None
For the year ended March 31, 2023

Category

Officer(equivalent
to officer)

Note: 1.
Note: 2.

RelatedParty

Morimichi
Toda

Address－

Capital or
Investment(Millions ofYen)Type ofBusiness－

Executive
vice officer(Former
director)

Percentage ofvoting rights held
(Held by others)

Relationship

1.36%(Note1）－Nature ofTransaction

StockexchangeAmounts ofTransaction(Millions ofYen)

Account

Balance atthe end of theyear(Millions
of Yen)893(US$6,693
thousand)－－Indicates percentage of held by others.
The purpose of the share exchange was to make Toda Building Partners Co., Ltd,and Toda Road.,Ltd a consolidated subsidiary of theCompany, a wholly owned subsidiary. The share value for determining the share exchange ratio and transaction amount was calculatedusing the market share price method for the Company, Toda Building Partners Co., Ltd. and Toda Road Co., Ltd. are calculated by
YAMADA Consulting Group’s, an independent third party, using the DCF method.

26. Notes regarding Special Purpose Entities Subject to Disclosure
1.

Outline of special purpose entities subject to disclosure, and outline of transactions using such entities
For the diversification of funding sources of stable funds procurement, the Group's implements securitization of real estate.
In these securitizations, the Group’s transfers the above-mentioned real estate, to the special purpose entities, and receives funds that the
special purpose entities obtain by issuing borrowings backed by the transferred assets as proceeds of the sales.
※(meaning a special purpose company within the Act on Securitization of Assets Act No. 105 of 1998)
In addition, the Group holds preferred securities in special purpose companies. The Group plans to recover the full amount of these preferred
securities.
As of the end of the current consolidated fiscal year, the following special-purpose companies with investments in securitized real estate had
the following balance of investments, and the Group does not have any voting rights in these companies, nor does it dispatch any directors tothese companies.
The information is omitted because it was immaterial as of the end of the previous fiscal year.

Number of Special Purpose Companies
Total assets as of the most recent balance sheet dateAggregate amount of indebtedness

For the year ended March 31, 2023
1 company¥2,802Million(US$20,988 thousand)¥157Million(US$1,176thousand)

2． Amounts of transactions with special purpose entities subject to disclosure
For the year ended March 31, 2022
We chose not to describe the detail in the report due to its immateriality.
For the year ended March 31, 2023
Amount of major transactions orbalance at the end of theconsolidated fiscal year
preferred securities¥140Million(US$1,049 thousand)Main profit and loss
item

Amountdividend¥2,505Million(US$18,762 thousand)

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27. Per Share Information
Yen
As of March 31
Net assets per share of common stock
Profit for the year per share of common stock2022¥ 1,027.12
60.43

2023
¥ 1,023.64
35.64

Millions of yen
Years ended March 31
Basis for calculation of net assets per share:
Total net assets
Amount attributable to items other than common stock
Net assets attributable to common stock
Number of shares of common stock outstanding at fiscal year-end
Basis for calculation of profit for the year per share:
Profit for the year attributable to owners of the parent
Profit for the year attributable to owners of the parent attributable to common stock
Average number of shares of common stock outstanding during the fiscal year

2022

2023

U.S. dollars
2023
$
7.666
0.266
Thousands of
U.S. dollars
2023¥

319,0422,467¥ 316,574
308,216,447
shares¥323,261
6,007¥ 317,254
309,926,300
shares$ 2,420,892
44,989$ 2,375,903¥
18,560¥18,560307,139,020
shares¥10,995¥
10,995
308,484,939
shares$$82,34382,343TODA CORPORATION FINANCIALSTATEMENTS 2023

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Non-consolidated Balance Sheets
Toda Corporation - As of March 31, 2022 and 2023
Millions of yen

Thousands of
U.S. dollars
2023

2022

2023

ASSETS
Current assets:
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable from completed construction contracts
Short-term investment securities
Real estate for sale (Notes 6.5))
Costs on uncompleted construction contracts
Costs on real estate business
Raw materials and supplies
Accounts receivable - other
Advanced paid
Other
Allowance for doubtful accounts
Total current assets¥107,668
930
2,578
190,784
10,000
5,250
8,629
4,044
685
1,373
17,945
3,656(1,154)352,390¥62,310118
1,030
252,077－
8,295
13,457
1,525
861
1,878
17,6902,284(1,508)360,022$ 466,638
885
7,718
1,887,796－
62,126
100,785
11,424
6,453
14,071
132,484
17,106(11,300)
2,696,188

Noncurrent assets:
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net (Notes 6.1) and 5))
Structures
Accumulated depreciation
Structures, net (Notes 6.1) and 5))
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net (Notes 6.1))
Land (Notes 6.1),5))
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress(Notes 6.1))
Total property, plant and equipment

55,522(18,555)
36,967
2,295(1,213)
1,082
7,065(4,855)
2,209
73
(68)
5
2,077
(1,635)441
77,168120(82)
38
15,092133,005

60,011(18,163)
41,847
2,442
(957)
1,485
7,234
(5,438)
1,795
89
(73)
16
2,071
(1,733)337
76,030146(44)
101
19,359140,974

449,420(136,027)
313,393
18,292(7,170)11,122
54,181(40,731)
13,449
670
(550)
120
15,510(12,982)2,528
569,391
1,096
(334)
761
144,982
1,055,750

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Millions of yen

Thousands of
U.S. dollars
2023

2022

2023

Intangible assets
Leasehold right
Software (Notes 6.1))
Goodwill
Other
Total intangible assets

5,123
2,448
381
2,879
10,833

5,123
4,309
311
387
10,13238,37232,2702,335
2,900
75,879Investments and other assets:
Investment securities
Stocks of subsidiaries and affiliates (Notes 6.2) and 8)
Investments in other securities of subsidiaries and affiliates (Notes 8)
Investments in capital
Long-term loans receivable
Long-term loans receivable from employees
Long-term loans receivable from subsidiaries and affiliates (Notes 6.2))
Claims provable in bankruptcy, claims provable in rehabilitation and other
Long-term prepaid expenses
Long-term non-operating accounts receivable
Prepaid pension cost
Other
Allowance for doubtful accounts
Total investments and other assets

178,983
28,643
1,566
3
103
5
1,661
－
259
3
2,012
3,114
(91)
216,264

175,786
39,583
1,228
3
103
1
11,742
－
159
3
2,138
2,953
(143)
233,561

1,316,457
296,439
9,202
26
772
12
87,936－
1,197
25
16,012
22,116(1,073)
1,749,127

Total noncurrent assets

360,103384,6672,880,757¥712,493¥744,689$ 5,576,946

Total assets

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Millions of yen
2022
LIABILITIESCurrent liabilities:
Notes payable - trade
Electronically recorded obligations - operating
Accounts payable for construction contracts
Short-term loans payable
Commercial paper
Current portion of bonds payable
Lease obligations
Accounts payable - other
Income taxes payable
Advances received on uncompleted construction contracts
Deposits received
Provision for bonuses
Provision for warranties for completed construction
Provision for loss on construction contracts
Deposits received from employees
Other
Total current liabilities
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities (Notes 9)
Deferred tax liabilities for land revaluation (Notes 9)
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for stock payments for directors
Provision for loss on business of subsidiaries and affiliates
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders' equity:
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus

¥

2,156
31,982
57,39255,471
20,00015,000
14
3,116
5,767
26,77437,706
5,586
3,782
2,580
11,3404,413
283,083

2023
¥

2,016
24,55968,79677,001
－
5,000
19
3,440
5,528
27,55535,714
4,587
3,128
9,195
11,605
1,263
279,412

Thousands of
U.S. dollars
2023$

15,098
183,924515,216
576,657
37,444
145
25,76541,403
206,361
267,461
34,35323,431
68,862
86,916
9,465
2,092,509

45,00036,52828
22,2796,124
20,353
128
240
1,608
411
3,211
135,915
418,998

50,00072,48691
18,126
6,069
20,665
－
465
1,706
446
3,936
173,995
453,408

374,447
542,850688
135,751
45,455
154,765
3,486
12,776
3,344
29,4791,303,046
3,395,555

23,001

23,001

172,257

25,573
198
25,771

25,573574
26,147

191,516
4,300
195,816

Retained earnings
Legal retained earnings
Other retained earnings
Reserve for construction
General reserve
Retained earnings brought forward
Total retained earnings

5,750

5,750

43,06450,000101,774
18,780176,305

50,000109,774
8,250
173,775

374,447
822,097
61,786
1,301,396

Treasury stock
Total shareholders' equity(8,462)
216,617(7,625)215,299(57,105)
1,612,365

73,419385
3,073
76,878
293,495¥ 712,493

72,782111
3,087
75,981
291,281¥ 744,689

545,064
838
23,122569,025
2,181,391$ 5,576,946

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

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Non-consolidated Statements of Income
Toda Corporation - For the years of March 31, 2022 and 2023
Thousands of
U.S. dollars

Millions of yen
Net sales:
Net sales of construction contracts
Net sales of investment development business and otherTotal net sales
Cost of sales:
Cost of sales of construction contracts
Cost of sales of investment development business and otherTotal cost of sales
Gross profit:
Gross profit on construction contracts
Gross profit on investment development business and otherTotal gross profit
Selling, general and administrative expenses
Directors’ compensations
Provision for share allocation to directors
Employees’ salaries and allowances
Provision for bonuses
Provision for directors’ retirement benefits
Retirement benefit expenses
Legal welfare expenses
Welfare expenses
Repair and maintenance
Stationery expenses
Correspondence and transportation expenses
Power utilities expenses
Research study expenses
Advertising expenses
Provision of allowance for doubtful accounts
Entertainment expenses
Contribution
Rents
Depreciation
Amortization of goodwill
Taxes and dues
Insurance expenses
Miscellaneous expenses
Total selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Interest on securities
Dividend income
Dividend income of insurance
Exchange gain
Miscellaneous income
Total non-operating income
Non-operating expenses:
Interest expenses
Interest on bonds
Commission fee
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets (Notes 7.1))
Gain on sales of investment securities
Other
Total extraordinary income

2022

2023

¥430,983
20,786
451,770¥446,563
18,888465,451$3,344,289
141,454
3,485,744

380,879
14,958395,837

405,903
13,267419,1703,039,794
99,357
3,139,152

50,103
5,828
55,93240,6595,621
46,280304,494
42,097
346,592480
36
11,440
4,141
108
913
1,757
706
191
1,577
912
88
2,278
297
(178)
608
194
2,047
1,760
69
1,543
36
2,380
33,392
22,540302
233
11,923
3,269
－
996
1,888
706
197
1,864
1,111
103
3,495
302
360
954
108
2,071
2,178
69
2,459
41
2,117
36,755
9,524

2,265
1,749
89,29624,482
7,462
14,141
5,290
1,477
13,961
8,324
778
26,179
2,264
2,697
7,144
816
15,514
16,314518
18,420307
15,856275,263
71,328

39
0
3,724
276
－
506
4,547

62
0
4,459
238
498
508
5,767

470
0
33,396
1,786
3,730
3,807
43,191

583
195
210
101
1,091
25,995

730
229
637
104
1,702
13,589

5,473
1,718
4,773
785
12,751
101,768

0
3,008
280
3,290

0
8,058
438
8,497

1
60,351
3,287
63,6402022

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Extraordinary loss:
Loss on abandonment of noncurrent assets (Notes 7.2))
Impairment loss
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries and affiliates
Provision for loss on business of subsidiaries and affiliates
Other
Total extraordinary losses
Profit before income taxes and non-controlling interests
Income taxes-current
Income taxes-deferred
Total income taxes (Notes 9)
Profit for the year

1,542
492
0
1,189
1,181
344
4,750
24,535
7,966
353
8,320
¥ 16,215

印刷日時:23/09/01 16:31

3,144
73,906
2,132
2,584
1,014
1,494
84,274
81,13460,578(29,048)
31,530$ 49,603

419
9,868
284
345
135
199
11,253
10,8338,089(3,878)
4,210¥6,623

Non-consolidated Statements of Changes in Net Assets
Toda Corporation - For the years ended March 31, 2022 and 2023
Millions of yen

Capitalstock

Capital surplus

Legalcapitalsurplus

OthercapitalsurplusTreasurystock

Retained earnings

Total
capitalsurplusLegalretainedearnings

Total
net
assetsValuation and translation
adjustments

Shareholders’ equity

Total
retainedearnings

Other retained earnings

Reserve
Generalforreserveconstruction

Valuation
DeferredTotal
difference
Total
gains or Revaluation valuationonsharelosses
reserveandholders’ available-foron
for land translation
sale
equityhedgesadjustments
securities

Retainedearnings
brought
forward¥23,001¥25,573¥―¥25,573¥5,750¥50,000¥91,774¥21,187 ¥168,712

Provision of general reserve

－

－

―

―

―

―

10,000(10,000)――

Dividends from surplus

－

－

―

―

―

―

―

(9,223)(9,223)―

Profit for the year

－

－

―

―

―

―

―

16,215

16,215―

Disposal of treasury stock

－

－

―

―

―

―

―

―

―

32

Purchase of treasury stock

－

－

―

―

―

―

―

―

―

Increase by share exchanges

－

－

198

198

―

―

―

―

Reversal of revaluation reserve
for land

－

－

―

―

―

―

―

Net changes of items other thanshareholders' equity

－

－

―

―

―

―

Total changes of items
during the period

－

－

198

198

―

―

¥23,001¥25,573¥198¥25,771¥5,750

Provision of general reserve

－

－

－

－

－

－

8,000

(8,000)

－

－

－

－

－

－

－

－

Dividends from surplus

－

－

－

－

－

－

－

(9,139)(9,139)－(9,139)

－

－

－

－

(9,139)Profit for the year
Disposal of treasury stock

－
－

－
－

－

－
172

－
－

－
－

－
－

6,623
－

6,623
－

－

172

1,128

6,623
1,301

－
－

－
－

－
－

－
－

6,623
1,301

Purchase of treasury stock

－

－

－

－

－

－

－

－

－

(1,293)(1,293)

－

－

－

－

(1,293)

Increase by share exchanges

－

－

203

203

－

－

－

－

－

1,001

1,204

－

－

－

－

1,204

－

－

－

－

－

－

－

(14)

(14)

－

(14)

－

－

－

－

(14)

－

－

－

－

－

－

－

－

－

－

－

(636)

(273)

14

(896)

(896)

－

－

375

375

－

－

8,000

(10,530)(2,530)837(1,317)

(636)

(273)

14

(896)

(2,214)¥23,001¥25,573¥574¥26,147¥5,750¥(7,625) ¥215,299¥72,782¥111¥3,087

Balance at March 31, 2021¥(9,388) ¥207,899¥79,430¥108¥3,674¥83,213 ¥291,112

―

―

―

―

―

―

(9,223)

―

―

―

―

(9,223)

16,215――――

16,215

32

―

―

―

―

32

(1)

(1)

―

―

―

―

(1)

―

894

1,093

―

―

―

―

1,093

600

600

―

600

―

―

―

―

600

―

―

―

―

―

(6,011)

277

(600)

(6,334)(6,334)10,000(2,406)

7,593

925

8,717

(6,011)

277

(600)

(6,334)

2,383¥(8,462) ¥216,617¥73,419¥385¥3,073¥76,878 ¥293,495

Changes during period

Balance at March 31, 2022

¥50,000 ¥101,774¥18,780 ¥176,305

Changes during period

Reversal of revaluation reserve
for landNet changes of items other thanshareholders' equity
Total changes of items
during the period
Balance at March 31, 2023

¥50,000 ¥109,774¥8,250 ¥173,775

TODA CORPORATION FINANCIALSTATEMENTS 2023

¥75,981 ¥291,281

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Thousands of U.S. dollars

Capitalstock

Capital surplus

Legalcapitalsurplus

Balance at March 31, 2022
Changes during period
Provision of general reserve
Dividends from surplus
Profit for the year
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Reversal of revaluation reserve forland
Net changes of items other thanshareholders' equity
Total changes of items
during the period
Balance at March 31, 2023

$172,257 $191,516

OthercapitalsurplusTreasurystock

Retained earnings

Total
capitalsurplus$1,487 $193,003

Legalretainedearnings

Total
net
assetsValuation and translation
adjustments

Shareholders’ equity

Valuation
DeferredTotal
difference
gains or Revaluation valuationonlossesreserveandavailableon
for land translation
for-salehedgesadjustments
securities

Total
shareholders’equityTotal
retainedearnings

Other retained earnings

Reserve
Retainedfor
General earnings
constructio reserve broughtnforward$43,064 $374,447 $762,186 $140,648 $1,320,346 $(63,373) $1,622,234 $549,832$2,889$23,015 $575,737 $2,197,972

―
―
―
―
―
―

―
―
―
―
―
―

―
―
―
1,290
―
1,522

―
―
―
1,290
―
1,522

―
―
―
―
―
―

―
―
―
―
―
―

59,911―――――(59,911)(68,447)
49,603――――(68,447)
49,603
―
―
―

―
―
―
8,454
(9,684)
7,498―(68,447)
49,603
9,745(9,684)
9,020

―
―
―
―
―
―

―
―
―
―
―
―

―
―
―
―
―
―

―
―
―
―
―
―

―
(68,447)
49,603
9,745(9,684)
9,020

―

―

―

―

―

―

―

(107)

(107)

―

(107)

―

―

―

―

(107)

―

―

―

―

―

―

―

―

―

―

―

(4,768)(2,051)

107(6,712)(6,712)

―

―

2,812

2,812

―

―

59,911(78,862)(18,950)

6,268(9,869)(4,768)(2,051)

107(6,712)(16,581)$61,786 $1,301,396 $(57,105) $1,612,365 $545,064$838$172,257 $191,516$4,300 $195,816$43,064 $374,447 $822,097$23,122 $569,025 $2,181,391

Notes to Non-consolidated Financial Statements
Toda Corporation
1.

Basis of Presenting Non-consolidated Financial Statements

The non-consolidated financial statements presented herein of Toda
Corporation (the "Company") are prepared in accordance with theprovisions set forth in the Financial Instruments and Exchange Law ofJapan, and in conformity with accounting principles generally acceptedin Japan.
These non-consolidated financial statements incorporate certain
modifications in format so as to make the financial statements moremeaningful to readers outside Japan.
These modifications have no effect on total assets, net sales,
retained earnings or profit for the year.

2.

(U.S. Dollar Amounts)
The accounts of non-consolidated financial statements presented
herein are expressed in Japanese yen by rounding down to nearest
million.
The U.S. dollar amounts are included solely for convenience and havebeen translated, as a matter of arithmetical computation only, at therate of ¥133.53 = US$1, the exchange rate prevailing on the Tokyo
foreign exchange market on March 31, 2023, and have been thenrounded down to the nearest thousand. This translation should not be
construed as a representation that the yen amounts actually represent,
have been or could be converted into U.S. dollars at this or any otherrate.

Summary of Significant Accounting Policies

1) Standards and evaluation methods for significant assets(a) Short term investment securities and investment securities
Held-to-maturity debt securities
Amortized cost method (straight-line method)
Stocks of subsidiaries and affiliates
Stated at cost, determined by the moving-average method
Available-for-sale securities
・Other than equity securities without market prices:Stated at fair value (the difference between the book value andthe fair value is recorded as a component of net assets, while
the cost of securities sold is computed using the movingaverage method)・Equity securities without market prices:Stated at cost, determined by the moving-average method In
addition, the valuations for investments in investment businesslimited partnerships and similar partnerships (those deemed to
be securities under Article 2, Paragraph 2 of the Financial
Instruments and Exchange Law of Japan) are based on recent
financial statements available according to the settlement
closing dates stipulated in the partnership contracts, and arerecorded in the net amounts equivalent to their equity.

The accounting methods are as follows:
In the case of investment for the main business purpose, theequity-equivalent profit and loss to be attributable is recorded
in "operating profit and loss" and added to or subtracted from"investment securities" or "investments in other securities ofsubsidiaries and affiliates".
In the case of investment for purposes other than the main
business purpose, the equity-equivalent profit and loss to be
attributable is recorded as "non-operating profit and loss" andadded to or subtracted from "investment securities" or"investments in other securities of subsidiaries and affiliates".
(b) Derivatives
Stated at fair value.
(c) Inventories
Costs on uncompleted construction contracts
Stated at cost, determined by the specific identification cost
methodReal estate for saleStated at cost, determined by the specific identification cost
method (The book value on the non-consolidated balance sheetsis presented after write-down for decline in profitability.)

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ファイル名:00Wordデータ（FINANCIAL STATEMENTS 2023)第五版.docx更新日時:2023/09/01 16:31:00(d) Other inventories
Raw materials and supplies
Stated at cost, determined by the weighted average method (Thebook value on the non-consolidated balance sheets is presented
after writedown for decline in profitability.)
Costs on real estate businessStated at cost, determined by the specific identification cost
method (The book value on the non-consolidated balance sheetsis presented after write-down for decline in profitability.)

4)2) Methods of depreciation and amortization depreciable assets(a) Property, plant and equipment (excluding lease assets)
The declining-balance method is used. However, the straight-line
method is used for buildings (excluding building fixtures) acquired
on and after April 1, 1998 and building fixtures and otherstructures acquired on and after April 1, 2016.
Standards Identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual
value.
(b) Intangible fixed assets (excluding lease assets)
The straight-line method is used.
Standards identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual
value.
However, the amortization of software used by the Company iscomputed using the straight-line method based on the estimateduseful life.
(c) Lease assets
Leased assets under finance leases other than those that are
deemed to transfer ownership to lessees
Depreciation is based on the straight-line method over thelease term of the leased assets with no residual value.
3) Allowances and provisions(a) Allowance for doubtful accounts
The allowance for doubtful trade receivables and loans has been
provided based on historic loss experience for general accounts
and also includes the aggregate amount of the estimated loss forthe accounts for which concern actually exists for collectability.
(b) Provision for bonuses
This is provided for the payment of bonuses for employees,
based on expected payment amount.
(c) Provision for warranties for completed construction
To cover expenses for defects claimed concerning completed
work, this is provided based on the estimated amount ofcompensation in the future for the work completed during the
fiscal year.
(d) Provision for retirement benefits
To prepare for retirement benefits to employees, the provision for
retirement benefits is calculated based on estimated amounts ofretirement benefit obligations and pension assets as of the fiscal
year-end.
1. Period attribution method for estimated retirement benefits
The estimated amount of retirement benefit is allocated toperiods of service based on the benefit formula.
2. Actuarial differences expense processing method
Actuarial differences are amortized commencing thefollowing year after the difference is recognized primarily by
the straight-line method over a period of five years.
(e) Provision for loss on construction contracts
The provision for loss on construction contracts is provided at theestimated amount for the future losses on contract backlog at the
fiscal year-end which will be probably incurred and which can bereasonably estimated.
(f) Provision for directors' retirement benefits
To prepare for the payment of retirement benefits for executive
officers, the provision is provided at the amount to be paid
according to internal regulations if they had retired at the fiscal
year-end.
(g) Provision for loss on business of subsidiaries and affiliates
To prepare for the loss of investment in subsidiaries and affiliates,
the amount that is expected to be borne beyond the investment
and loans to subsidiaries and affiliates is estimated.
(h) Provision for stock payments to directors
The provision for stock payments to directors is provided forstock award debt based on predetermined regulations forawarding stock, which is prepared for future awards of theCompany's shares to its directors and executive officers.

印刷日時:23/09/01 16:31

Recognition of net sales from construction
contracts and related costs
In the building construction and civil engineering, etc., which are
the Company's principal business, the Company has theperformance obligations to construct buildings or structures, etc.
and deliver the outcomes to customers based on construction
contracts. The construction contracts are a transaction in which
performance obligations are satisfied over time, and the Company
recognizes revenue according to the progress in the satisfaction of
performance obligations. The Company has applied the method
based on the percentage of costs incurred by the end of eachreporting period to the total expected costs as a method of
estimating the progress of construction works to the satisfaction of
performance obligations.
In addition, revenue is recognized by the cost recovery method
when the progress in the satisfaction of performance obligations
cannot be reasonably estimated, but the costs incurred arerecoverable. For construction contracts with a very short term
between the commencement date of the transaction in theconstruction contract and the date when the performanceobligations are expected to be fully satisfied, the Company applies
alternative treatment and do not recognize revenue over time.
In this case, the Company recognizes revenue when theperformance obligations are fully satisfied.
When certain refund obligations to customers are expected toarise, such as compensation for damages incurred in association
with performance of contracts, the Company reduces revenue tothe extent of the estimated refund liability.
The Company estimates a financing component of each individual
construction contract and determine whether it is significant
because the timing of receipt of the consideration for thetransaction of the construction contracts varies depending on theterms of each individual construction contract. As a result, theCompany determined that there are no construction contracts witha significant financing component.

5)

Hedge Accounting
The Company applies hedge accounting as follows:(a) Method of hedge accounting adopted
Deferral hedge accounting
If the interest rate swap contracts are used as hedge and meetcertain hedging criteria, net amounts to be paid or received under
the interest rate swap contracts are added to or deducted fromthe interest or liabilities for which the swap contract were
executed ("special treatment").
(b) Measure and objects
1. Measures : Forward foreign exchange contracts
Objects : Transactions to be paid in foreign currencies incases of overseas construction of work andoverseas procurement of materials
2. Measures : Interest rate swap
Objects : Borrowings(c) Hedging principles:
Based on internal regulations which stipulate the execution
authority regarding on derivative transactions and those fortransaction limits, the Company utilizes hedges to minimize therisk of currency exchange rate and interest rate fluctuations
associated with the hedge objects.
(d) Evaluation method of effectiveness of hedging:
During the period from the time when the hedging first started
until the fiscal year-end, the Company has been assessing thehedge effectiveness primarily by comparing, in terms of variation
amounts, (1)cumulative cash flow changes or exchange ratechanges of the hedge objects and (2)cumulative cash flowchanges or exchange rate changes of the hedge measures.
However, the evaluation of hedge effectiveness is omitted forinterest swaps as they meet certain hedging criteria for the
special treatment.

6)

Other significant matters for preparing non-consolidated
financial statements(a) Accounting for retirement benefits
The method of accounting for unrecognized actuarial differences
to retirement benefits is different from the method of accounting
for consolidated financial statements.
(b) Principles and procedures of accounting treatment adopted when
the provisions of related accounting standards, etc. are not clear
The accounting method for joint venture (JV) in the constructionindustry is mainly based on the method of recognizing assets,
liabilities, income and expenses according to the investment ratioof the members.

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3.

Significant Accounting Estimates

1)

Estimates for the method of recognizing revenue over time(the so-called old percentage of completion method)(a) Amount recorded in the non-consolidated financial statements

印刷日時:23/09/01 16:31

Millions of yen
For the years ended March 31
Net sales of construction contracts¥

2022
410,386¥2023
424,510

Thousands of
U.S. dollars
2023$ 3,179,137(b) Information about the content of significant accounting estimates for the identified item
The information is the same as the content described in the consolidated financial statements "Notes (3. Significant Accounting Estimates, 1)
Estimates for the method of recognizing revenue over time (the so-called old percentage of completion method))".
2)

Estimates for impairment loss on fixed assets(a) Amount recorded in the non-consolidated financial statements
Millions of yen

For the years ended March 31
Impairment loss

2022
¥

492

¥

2023
9,868

Thousands of
U.S. dollars
2023$
73,906(b) Information about the content of significant accounting estimates for the identified item
The information is the same as the content described in the consolidated financial statements "Notes (3. Significant Accounting Estimates, 2)
Estimates for impairment loss on fixed assets)".

4.

Change in Accounting Policies(Guidance on Accounting Standard for Measurement of Fair Value)“ The Guidance on Accounting Standard for Measurement of Fair
Value”(ASBJ Guidance No. 31, June 17, 2021; hereinafter referred to as
the “Guidance”) is applied from the beginning of the current fiscal year.
The Company shall apply the new accounting policy stipulated in
Paragraph 27-2 of the Guidance in the future. The impact of this changeon the consolidated financial statements for the current fiscal year isminor.

6.

5. Additional Information(Performance-linked stock compensation plan for directors andexecutive officers)
Since the same content is described in the consolidated financial
statements "Notes (7. Additional Information)", the notes areomitted.

Notes to Non-consolidated Balance Sheets
Thousands of
U.S. dollars
2023

Millions of yen
As of March 31
1) Advanced depreciation:
Buildings
Structures
Tools, furniture and fixtures
Land
Construction in progress
SoftwareTotal
2) Pledged assets:
Stocks of subsidiaries and affiliates
Long-term loans receivable from subsidiaries and affiliates
Total3) Contingent liabilities (guarantee liabilities)
4) Loan commitment agreement:
Maximum limit under the agreement
Loan balance outstanding
Difference (unused portion)

5)

2022
¥

2023
130
2
7
－
－
8
148

¥

¥

435
610
¥ 1,046¥ 6,818¥¥ 30,000－¥ 30,000

¥

130
2
7
24
22
8
195

$

415
597
¥ 1,012¥ 10,058

$

3,110
4,474
$ 7,585$ 75,328¥ 30,000－¥ 30,000$ 224,668－$ 224,668

¥

$

977
19
52
183
168
63
1,464

Change in holding purpose of assets
The following noncurrent assets were reclassified as real estate held for sale due to change in holding purpose.
Millions of yen

As of March 31
Buildings
Structures
Land

2022
¥

－
－
－

2023
¥
819
2
5,066

Thousands of
U.S. dollars
2023$ 6,140
21
37,939The following real estate held for sale was reclassified as noncurrent assets due to change in holding purpose.
Millions of yen
As of March 31
Land

2022

2023
510

－

Thousands of
U.S. dollars
2023－

TODA CORPORATION FINANCIALSTATEMENTS 2023

34

ファイル名:00Wordデータ（FINANCIAL STATEMENTS 2023)第五版.docx更新日時:2023/09/01 16:31:00

7.

印刷日時:23/09/01 16:31

Notes to Non-consolidated Statements of Income
Thousands of
U.S. dollars
2023

Millions of yen
For the years ended March 31
1) Gain on sales of noncurrent assets:
Machinery and equipment
VehiclesTools, furniture
Total2) Loss on abandonment of noncurrent assets:
Buildings and structures
Other
Dismantlement cost
Total

8.

2022
¥

2023
0
－
0
0

¥

160
20
1,362
¥ 1,542

¥

¥

¥

¥

¥

－
0
－
0

$

0
16
402
419

$

$

－
1
－
1

5
122
3,016
$ 3,144

Securities

For the year ended March 31, 2022
The stocks of subsidiaries and affiliates whose fair value is extremely
difficult to calculate due to the lack of market prices are as follows:
Stocks of subsidiaries
Stocks of affiliated companies
Investments in Limited Liability Company
Investments in silent partnerships
Total

Millions of yen
2022¥24,695
3,947
325
1,240
¥ 30,209

Note: For the stocks of subsidiaries and affiliates whose fair value is extremely difficult to calculate, the fair value are not shown.
Thousands of
U.S. dollars
2023$ 294,188
2,251
2,287
6,915
$ 305,642

Millions of yen

For the year ended March 31, 2023
The book value of the stocks of subsidiaries and affiliates is as follows:

2023
Stocks of subsidiaries¥ 39,282
Stocks of affiliated companies
300
Investments in Limited Liability Company
305
Investments in silent partnerships
923
Total
¥40,812
Note: 1. The stocks of subsidiaries and affiliates are not shown because they are equity securities without market prices.
2. The stocks of subsidiaries and affiliates includes in the investments in partnerships for which equity interests are recorded on a net basis. In
addition, the fair value of the investments are omitted.

9. Deferred Tax Accounting
The tax effects of temporary differences which gave rise to deferred tax assets
and liabilities at March 31, 2022 and 2023 are as follows:
As of March 31
Deferred tax assets:
Real estate for sale
Buildings, structures and land
Investment securities
Allowance for doubtful receivables
Provision for bonuses
Provision for loss on construction contracts
Provision for retirement benefits
Other
Subtotal
Less: valuation allowance
Deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Prepaid pension cost
Other
Deferred tax liabilities
Net deferred tax assets (liabilities)

Millions of yen
2022
¥

¥

183
838
2,253
490
1,727
789
6,228
3,566
16,078(4,883)
11,195(32,192)
(615)
(665)
(33,474)¥ (22,279)

2023

Thousands of
U.S. dollars
2023

171
4,057
2,376
632
1,407
2,813
6,323
3,267
21,049(5,961)
15,088

1,285
30,384
17,795
4,733
10,541
21,07147,35824,467
157,636(44,642)$ 112,994(31,985)
(654)
(575)
(33,215)¥ (18,126)(239,534)(4,899)(4,311)(248,746)$ (135,751)

¥

¥

$

In addition to the above, the Company recognized deferred tax liabilities of ¥6,124 million and ¥6,069 million (US$45,455 thousand) related torevaluation reserve for land at March 31, 2022 and 2023, respectively.
Reconciliation between the statutory tax rate and the effective tax rate
Statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable income
Inhabitant taxes (per capita levy)
Valuation allowance
Tax exemption
Other
Effective tax rate

2022
30.6%
1.1%
(1.2)%
0.7%
3.3%(0.6)%(0.0)%
33.9%

2023
30.6%
4.1%
(3.6)%
1.7%
9.9%(2.3)%(1.5)%
38.9%

10. Revenue Recognition
Information as a basis to understand revenue from contracts with customers is described in non-consolidated financial statements "Notes (2.
Summary of Significant Accounting Policies, 4) Recognition of net sales from construction contracts and related costs)".

TODA CORPORATION FINANCIALSTATEMENTS 2023

35