Results Briefing for the Second Quarter
Ended September 30, 2013

November 14, 2013

TODA CORPORATION

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

2

Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Issues and Initiatives
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

41-1. Summary of Financial Results
for the Second Quarter

5

Highlights: FY2013 2Q
 Consolidated Net Sales: ¥208.3 billion, down 2.1% year-on-year： Consolidated net sales remained at the same level as thesecond quarter of the previous year, but were down 2.1% year
on year, to ¥208.3 billion

 Operating Income: ¥5.8 billion, up ¥20.3 billion year-on-year： The Company posted ¥5.8 billion in operating income,reflecting a switch to a profitability-oriented policy for orders
conducted in FY2012, as well as an improved gross profit
margin on completed construction contracts as a result of
producing construction revenue estimates in a careful manner Orders Received (non-consolidated): ¥317.6 billion, up
111.8% year-on-year： Orders received surged 111.8% year on year, partly because oforders for large–scale redevelopment works

6Summary: FY2013 2Q(Millions of yen)

Apr-Sep FY2013
Apr-Sep
FY2012

Forecasts(announced
on May 14,
2013)

Actuals

Change(year onyear)

(vs. forecast)Difference

Consolidated
net sales

212,830

203,000

208,387

-2.1%

5,387

Operating income(loss)(14,415)

(400)

5,892

－

6,292

Ordinary income(loss)(13,608)

240

6,665

－

6,425

Net income (loss)(33,824)

3,800

11,109－7,309

Orders received

149,964

152,000

317,605111.8%

165,605(Non-consolidated)

7

Construction Business Performance (Non-consolidated)
Orders Received forConstruction

Net Sales of Completed
Construction Contracts

317.6(＋111.8%)

29.5

Civil Engineering(-14.5%)Gross Profit Margin on Completed
Construction Contracts
7.3
7.3
7.1

Architectural
Construction
Total
Civil
Engineering

4.5

288.0
Architectural
Construction(+149.7%)

157.5

115.3

42.8

143.9

Civil Engineering(+20.2%)

Architectural
Construction(-8.6%)

)

34.5

35.6

(-3.3%)％((Billions of yen)(Billions of yen)

149.9

193.1

186.7

-3.0
-4.7

Apr-Sep 12

Apr-Sep 13

Apr-Sep 12

Apr-Sep 13

Apr-Sep 12

Apr-Sep 13

8

Breakdown of the Orders Received (Non-consolidated)
By Quarter

Breakdown by Client(Reference) Progress

317.6

317.6

415.0
339.1
76.5%

Private Sector(+166.4%)

2Q(+239.7%)

149.9(Billions of yen)

276.8

(Billions of yen)(Billions of yen)

149.9

243.0

44.2%

71.5
103.8

46.0

40.7

Public Sector

Apr-Sep 12 Apr-Sep 13

78.4

74.5

(-11.5%)

Apr-Sep 12 Apr-Sep 13

1Q

317.6

3Q
+
4Q

1Q
+
2Q

149.9

(-4.9%)FY2012FY2013(forecast)9

Main Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Mitsubishi Estate Co., Ltd. and others

Otemachi 1-chome No.3 District category 1 urban
redevelopment

Hiroshima Station South Exit C-block
Urban Redevelopment Union

Hiroshima Station south exit C-block category 1 urban
redevelopment

Federation of National Public Service
Personnel Mutual Aid Associations

Overall Support Center for the elderly, Kudanzaka Hospital

Japanese Red Cross Society

Renovation and the building of a new addition to the Japanese
Red Cross Tottori Hospital

National Hospital Organization Kyushu
Cancer Center

Construction of Kyushu Cancer Center

Kobe Gakuin University

Kobe Gakuin University Port Island Campus Building D and
Gymnasium

Urban Renaissance Agency

FY2012 Orikasa and Yamada districts land readjustment

Japan Sewage Works Agency

Construction of rainwater pump station in Higashikariki,
Sapporo City

*Honorific prefixes are omitted. Work names are abbreviations.
10

Main Works Completed
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Kinki Regional Development Bureau,
Ministry of Land, Infrastructure andTransport

Construction of Kyoto National Museum Collections Hall

Tokyu Land Corporation

Construction of TOKYU Harvest Club Atami

MEGMILK SNOW BRAND Co., Ltd.

Construction of Integrated Dairy Products Factory

Urban Redevelopment Association

Kita Toda Station East 1 District Redevelopment

Tajimi City, Gifu Prefecture

Construction of New Tajimi Municipal Hospital

Global Environment Bureau, Ministry of
the Environment

FY2012 Floating Offshore Wind Turbine Demonstration ProjectJapan Railway Construction, Transport
and Technology Agency

Hokkaido Shinkansen Line, Mantaro road bed, etc.

Tohoku Regional Bureau, Ministry ofLand, Infrastructure and Transport

Sendai Bay South Area MLIT Recovery Project – Nakahama
construction area, Sakamoto District*Honorific prefixes are omitted. Work names are abbreviations.

111-2. Details of Financial Results12

(Consolidated) Toda Group
Business

Subsidiaries in Japan

Toda Reform Co., Ltd.

Overseas Subsidiaries

15
Companies

Construtora Toda do Brazil S/A
Toda Construction (Shanghai) Co., Ltd.

Construction

Architectural
Construction

APEC Engineering Co., Ltd.
Chiyoda Kenkou Co., Ltd.

Thai Toda Corporation Ltd.

9
Companies

Toda Vietnam Co., Ltd.
TODA Philippines Inc.
Civil
Engineering

Real Estate

1Company

Toda Road Co., Ltd.

Chiyoda Tochi Tatemono Co., Ltd.

ABTD, inc.

Toda America, Inc.

2
Companies

Toda Finance Co., Ltd.
Other

Chiyoda Staff Service Co., Ltd.

3
Companies

Towa Kanko Kaihatsu Co., Ltd.

13

(Consolidated) Summary of Group Performance
Toda
Corporation

Apr-Sep 13
Billions of yen%

Net sales

191.8

Gross profit

15.0

Selling, general andadministrative expenses
Operating income (loss)
Non-operating income
Ordinary income (loss)

Subsidiaries total

7.9

8.5
6.4

0.7

3.4

(0.5)

3.1

(0.5)

15.6

-2.3

5.8

-2.2

6.6

3.7

1.3

4.6

Income before income taxes

10.9

0.7

11.2

0.0

0.0

0.1

Net income

10.9

5.7

0.6

7.5

1.04

2.8

0.91

3.2

0.92

5.3

1.02

0.7

Extraordinary income

Income taxes

1.09

9.7

0.0
3.8

%
208.3

1.3

0.7
7.2

%
24.9

Ratio ofconsolidated
results tonon-consolidated
results

Consolidated

2.6

11.1

14

(Consolidated) Statements of Income
Apr-Sep 12(Actual)Billions of yen%

Net sales

212.8

Gross profit (loss)(3.1)

Selling, general andadministrative expenses
Operating income (loss)
Non-operating income
Ordinary income (loss)
Extraordinary income (loss)

Apr-Sep 13(Actual)

208.3
-1.5

7.5

%
-2.1

450.0

―

26.1

9.7
-6.8

0.8
(13.6)

15.6

5.8

6.6

2.8

―

4.7

3.2

―

6.0

4.6

4.5

(16.7)

11.2

10.5

Income taxes

17.0

0.1

0.5

Net income (loss)(33.8)

-15.9

11.1

1.0

1.3

(3.1)

Income (loss) before income
taxes

5.8

21.4

0.7
-6.4

FY2013 (Forecast)

%

%

11.2
(14.4)

Changes

5.3

―

10.0

*Forecasts for FY2013 were revised in the second quarter.

1.3

2.2

15

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

Operating Income (Loss)

Architectural Construction(Billions of
yen)

Civil
Engineering

Real Estate
and Other

450.0

500

Architectural Construction(Billions ofyen)Real Estate
and Other

10

1.4

1.2

215.3
Real Estate
and Other

200

7.9

8.8

Civil
Engineering

43.7

36.8

100

Architectural
Construction

170.5

0

0

210.4

Apr-Sep 12

4.7

Architectural
Construction

4.7

5.8

0.1

Construction

437.3

(5)

(12.4)

(10)

157.8

Apr-Sep 13

Civil
Engineering

1.6

5

300

Real Estate
and Other

9.0

12.7

400

Civil
Engineering

FY2013(forecast)* Net sales by segment include intersegment transactions.

(15)(11.0)
Apr-Sep 12

Apr-Sep 13

FY2013(forecast)* Companywide expenses are not included in operating
income (loss) by segment.

16

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

Consolidated

Non-consolidated

Gross Profit Margin on
Completed Construction
Contracts Ratio

30

10.0%
6.8%

5.2% (Consolidated)
22.8

20

7.5%

21.0
5.0%

13.6

13.6

10

2.5%

0.0%
0
(4.7)

-2.5%

(5.7)

-2.3%
(10)

Apr-Sep 12

Apr-Sep 13

FY2013(forecast)

-5.0%

17

Change in SG&A
(Billions of yen)

Consolidated

Non-consolidated

SG&A Ratio

30

6.0%
5.3%
4.7%

4.8% (Consolidated)

21.4

20

4.0%
18.5

10

0

11.2

10.2

Apr-Sep 12

2.0%
9.7

8.5

Apr-Sep 13

FY2013(forecast)

0.0%

18

Change in Operating Income (Loss)
Consolidated

Non-consolidated

Operating Income Ratio(Billions of yen)

10

4.0%
2.8%

1.0%
(Consolidated)

5

5.8

6.4
4.7

2.0%

4.5

0

0.0%

(5)

-2.0%
(14.4) (14.7)

(10)

-4.0%

(15)

-6.0%
-6.8%

(20)

Apr-Sep 12

Apr-Sep 13

FY2013(forecast)

-8.0%

19

Change in Ordinary Income (Loss)
Consolidated

Non-consolidated

Ordinary Income Ratio(Billions of yen)

10

4.0%

3.2%

1.3%
(Consolidated)

2.0%

5
6.6

7.2

6.0

5.8

0.0%

0
-2.0%
(5)

(13.6) (14.0)
-4.0%

(10)

(15)

-6.0%
-6.4%
Apr-Sep 12

Apr-Sep 13

FY2013(forecast)

-8.0%

20

(Consolidated) Change in Extraordinary Income (Loss)
Extraordinary
income (loss)

(3.1)

4.6

4.5

(Billions of yen)

6

Allowance for loss oncompensation for damage
0.5

Extraordinary
income42Gain on salesof investment
securities

Gain on sales ofinvestment
securities 0.2

4.1

Extraordinary
income4.50Extraordinary loss

(2)

Loss on valuation of
investment securities(3.6)

Other losses (0.2)(4)
Apr-Sep 12

Apr-Sep 13

FY2013(forecast)21

Change in Net Income (Loss)(Billions of yen)

Consolidated

Non-consolidated

Net Income Ratio

20

10.0%
5.3%

2.2%
(Consolidated)

11.1

10.9

0

10.0

5.0%

9.5
0.0%
-5.0%

(33.8)(20)(34.5)-10.0%-15.0%-15.9%(40)
Net income (loss)
par share

Apr-Sep 12

Apr-Sep 13

FY2013(forecast)(108.64 yen)

35.70 yen

30.99 yen

-20.0%

22

(Consolidated) Balance Sheets(Billions ofyen)

Assets500.1

Liabilities and Net Assets
500.1

-46.4

-46.4

453.7
Current
assets

271.8

-51.8

Current
assets

219.9

453.7

Current
liabilities

293.9

Noncurrent
liabilities
Noncurrent
assets228.3

Mar 13+5.4

Noncurrent
assets

78.1

233.8

Net
assetsSep 13(Billions of
yen)

-65.5

Current
liabilities

228.4

+3.7

Noncurrent
liabilities

+15.4

Net
assets

81.8

128.0

143.5

Mar 13

Sep 1323

(Consolidated) Detailed Consolidated Balance Sheets

Mar 13

Sep 13

Billions of yen(Assets)

Remarks
Figures in ( ) are changes from the previous year
Cash34.6 (-4.1)

Notes receivable, accounts receivable fromCurrent assets

271.8

219.9

completed construction contracts and other
118.4 (-46.2)
Real estate for saleNoncurrent assets

228.3

233.8

Property, plantand equipment

78.1

78.2

Intangible assets

3.0

2.8

Investments andother assets

147.1

152.7

Costs on uncompleted construction contracts
27.4 (+7.2)
Buildings and structures

16.0 (-0.3)

Land

61.1 (+0.2)

Goodwill

Investment securities

Total assets

500.1

22.3 (-2.4)－ (-0.3)

149.1 (+5.8)

453.7
24

(Consolidated) Detailed Consolidated Balance Sheets

Mar 13

Sep 13

Billions of yen(Liabilities)
Current liabilities

Noncurrent liabilities

293.9

228.4

78.1

81.8

(Net assets)
Shareholders’ equity

79.2

88.6

Valuation and conversion
adjustment

48.8

54.8

Remarks
Figures in ( ) are changes from the previous year
Notes payable and other accounts payable
109.7 (-45.4)
Short-term loans payable / CP
38.9 (-13.8)
Advances received on uncompleted construction
contracts
34.5 (+0.2)
Provision for loss on construction contracts
15.6 (-7.5)

Long-term loans payable

20.7 (+0.0)

Deferred tax liabilities

25.4 (+3.0)

Provision for retirement benefits

21.9 (+0.5)

Retained earnings

46.1 (+9.4)

Valuation difference on available-for-sale securities

Total liabilities andnet assets

500.1

453.7

46.2 (+6.2)

25

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei stock average
Stock price (Yen)(Billions of yen)200

14,456

16,00012,397
150

100

50

0

143.3

149.1

9,755

10,083

110.2

110.7

27.7

26.3

82.5

84.3

82.8

Book value

Mar 11

Mar 12

Mar 13

Sep 1360.4

12,000

Valuationdifference

71.5

8,000

4,000

77.5

0

26

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

80

60

73.4

57.5

20.6

Long-term
-13.7

70.0

59.6

20.7

20.4

40
52.7

20

0
Ratio of interestbearing liabilities

38.9

37.0

Mar 12

Mar 13

Sep 13

FY2013(forecast)

11.8%

14.7%

13.1%

－
27

(Consolidated) Change in Provision for Loss on
Construction Contracts
Architectural construction(Billions of yen)
25

Civil engineering

23.1
Civil engineering

2.2
20

15

-7.5
14.0
2.8

10

5

0

15.6
2.0
Architectural
construction

20.9
13.5

11.1

Mar 12

Mar 13

Sep 1328

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

48.0
-11.1
36.8

Increase in fundCash and cash
equivalents at
beginningof period

Income before income taxes+11.2
Notes and accounts receivable-trade+46.4
Notes and accounts payable-trade (45.7)
Costs on uncompleted construction contracts(7.2)
Loss (gain) on sales of securities(4.1)

Cash and cash
equivalents
at end ofperiodInvesting CF

8.6

Decrease in fund(March 31,
2013)

Operating CF(4.1)
Sales of stocks+9.7
Purchase of property, plant andequipment(1.0)

Financing CF(16.0)(September
30, 2013)

Redemption of commercial
papers
(11.0)
Dividends paid (1.5)

291-3. Performance Forecasts

30

Forecasts for FY2013 (Year Ending March 31, 2014)

FY2013
FY2012(Billions of yen)

Forecasts

Change(year on year)

Consolidated net
sales

497.0

450.0

Operating income(loss)(46.9)

4.7+51.6

Ordinary income(loss)(45.5)

6.0+51.5

Net income (loss)(65.2)

10.0

+75.2

Orders received(Non-consolidated)

339.0

415.0

-9.5%

+22.4%

-47.0

+75.9

*Forecasts for FY2013 were revised in the second quarter.

31

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

Orders Received forConstruction

Gross Profit Margin on Completed
Construction Contracts

(%)

415.0
80.0
317.6

401.0

Civil
Engineering

85.0

29.5

Civil

Civil
Engineering

Civil
Engineering
Engineering
5.9 5.9
6.3

Total
5.2

4.6

288.0

335.0

Architectural
Construction

186.7
42.8

4.1

316.0

Architectural
Construction

Architectural
Architectural
Construction
Construction
5.1
5.1

143.9

Apr-Sep 13

FY2013(forecast)

Apr-Sep 13

FY2013(forecast)

Forecasts(May 2013)

FY2013(forecast)*Forecasts for FY2013 were revised in the second quarter.

32

Non-Consolidated Forecasts for FY2013
Amount(Billions of yen)

Profitability(%)

Net sales

408.0

Gross profit

23.0

5.6

Profits in the construction business

21.0

5.2

[Architectural construction][16.0][5.1][Civil engineering]

[5.0]

[5.9]

Profits in the real estate business

2.0

28.6

Selling, general and administrative
expenses

18.5

Operating income

4.5

1.1

Ordinary income

5.8

1.4

Extraordinary income

3.7

Net income

9.5

Gain on sales ofinvestment securities

2.3*Forecasts for FY2013 were revised in the second quarter.

33

2. Issues and Initiatives
President Masanori Imai

34

Strategies for FY2013
1. Take all possible measures to be in the black
Ensure execution of improvement measures
Ensure through monitoring and prompt
response

2. Revive earning power
Convert sense of values in the Company
Create mechanisms and structures for
growth35

Status of Improvement Measures
Make selection oforders more
stringent

Concentrate on priority areas.
Reinforce selection and planning from upstream
processes for areas of opportunity

Reinforce ordermanagement system

Review the approval flow of sales to orders received
and budgeting. Enhance profit margins upon receiving
ordersClosely manage
profitability of
construction

Produce more conservative revenue estimates andensure through monitoring. Raise full-year forecasts forprofits from completed construction contracts

Reduce selling, generaland administrative
expenses

Performing largely as planned.
Full-year forecasts: ¥18.5 billion (down 8.0% year on
year on a non-consolidated basis)

36Order Composition Ratio in the Construction Business
Ratio changing due to orders of large-scale
redevelopment and reconstruction projects
Architectural Construction

Civil Engineering(by construction category)(by construction category)
Other

Other

Housing

36.1

Officebuildings

8.1

Production
facilities
Education
research

10.0
16.0

12.6

Note:

27.3

21.0

FY2012FY2013 2Q

means priority areas.

％( )

％( )

21.3

Soil and riverconservationLand
reclamation

14.3
6.4
40.6

MedicalwelfareFY2012

13.2

Water andsewerage

7.3

Railways

28.0

Roads

FY2013 2Q

37

Reinforce order management system
Promote judgment and verification cycles through processes

①
Sales

②

③

OrdersBudgetingWorking budget

Estimation costs

Feedback(1) Order Approval Meeting(Established in April 2013)(2) Committee for Review on
Judgments taken at Order Receipt(Established in October 2012;
restructured)(3) Working Budget Council(Restructured)

Ensure timeliness and contribute to expansion by the head
office and the administration department
38

Forecasts for this Fiscal Year and Operating Income
Continue with initiatives and ensure black figures

Impact of improvement
measures¥3.3
billion(0.7%)

Change employee
mindsets (earnings andrisk management)

Initial forecast+¥1.4 billion¥4.7
billion(1.0%)

Revised forecast

Note: Figures in parentheses are operating income ratios

39

Strategies for FY2013
1. Take all possible measures to be in the black
Ensure execution of improvement measures
Ensure through monitoring and prompt
response

2. Revive earning power
Convert sense of values in the Company
Create mechanisms and structures for
growth40

Composition Ratio of Sales
in the Construction Business (FY2014 Forecasts)

Composition Ratio of Sales for FY2014 (by year)
100%

80%

Sales primarily from orders
received in FY2013 andFY2014

BeforeFY201260%

40%

FY2013

Will book most orders received forthe architectural construction
business in FY2013 by 2Q

20%

FY20140%Architectural
Construction

Civil Engineering

41

Initiatives for the Second Half

Reinforce earning power for FY2014 and beyond(Improve earnings in contracted construction works and reinforce
selection and planning in areas of opportunity)

Key priorities
Swiftly attain a desired position and growth baseCreate values

Reinforce strategic areas

Boost productivity

Continue improvement measures

42

Build a Base for Creating Values
Revamp Structures for Autonomously Creating Values

CustomervaluesStrategies

Boost productivity

Business flows(Sales operation, design & planning,
construction, and staffing)

Expand into new markets
Medical care and health, newenergy, and logistics andinfrastructure

Promote collaboration

Base forcreating value
Organizational restructuring oftechnology and IT

Companies in different
industries, public
sector, andeducational
institutions

43

Direction of Efforts to Reinforce Strategic Areas
International
Act swiftly to introduce a businessdepartment system
Rebuild medium- to long-term strategies,
including for developing businesses andcultivating human resources

Investment & Development
Narrow down pilot operations
Explore integrating construction &development & real estate rental
businesses

Environment & Energy

Subsidiaries and Affiliates

Underpin the organization with a value
creation base

Shift to a management structure thatcreates values for customers throughconstruction life cycles

Push ahead with efforts to commercialize
power generation by floating offshore
wind turbines

44

Overseas Business and Real Estate Businesses
Earnings Forecast

Target for FY2015: Net sales for of ¥30.0 billion

Net sales of overseas construction(consolidated)

Target for FY2015: Gross profit of ¥4.0 billion

Income from real estate, etc.
(consolidated)Line graph signifies net sales of orders received

19.0

20.6

25.4

FY2012FY2013(forecast)

Note: FY2013 estimated rate: 1US$ = ¥96.9(Billions of yen)(Billions of yen)

23.3

3.3
2.4

FY2012FY2013(forecast)

Note: Loss on valuation FY2012: ¥0.5 billion

45

Initiatives of Power Generation by Floating Offshore Wind Turbines

Inaugurating a two-megawatt
demonstration facility

In October, we began operating a
power generation by floating offshore
wind turbine, incorporating a twomegawatt turbine, near Kabashima,
Goto City, Nagasaki PrefectureThis was the first commercial-scale
facility of its type in Japan and thefirst hybrid-spar platform in the world46

Creation of Customer Values through Construction Life Cycles

Increase its organizational power by intergroupcollaboration and information sharing
Centralize customer contacts and take prompt response

Customercenter

Instructions &reportingInstructions &reportingCustomer values

Toda branchesGroup
companies

Design & planning,
new construction, repairs

Administrative operation,
management, renewals

Sales cooperation,
information sharing

47

Establishment of a New Organization
Swiftly accommodating market needs

September 8

September 20

Tokyo chosen to host the2020 Summer Olympics

Set up the Tokyo Olympics
Project Office within theTokyo Branch

Future direction: Linear Chuo Shinkansen andgovernment growth strategies
48Medium- to Long-Term Objectives and Image¥450 billion
Consolidated net
sales
Subsidiaries andaffiliates
Investment &development

140th anniversary
vision(Around ¥400 billion)

International
Domestic civilengineering

Operating income ratio

2.0 ％ and 3.0 ％ andDomesticarchitectural
construction

FY2013
forecast

higherhigher

FY2015FY2017

Sustainablegrowth bycreating values(Net sales andincome ratio)

・・・・・

FY202149

50