7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8388, Japan
Phone: +81-3-3535-1591 Fax: +81-3-3561-5745

CONSTRUTORA TODA DO BRASIL S.A.
Rua Manuel da Nobrega, 1280-3° Andar. São Paulo, Brasil
Phone: +55-11-3886-5844
THAI TODA CORPORATION LTD.
199 Column Tower 20th Floor, Ratchadapisek Road, Klongtoey, Bangkok 10110, Thailand
Phone: +66-2-261-6544 Fax: +66-2-261-6545
TODA VIETNAM CO., LTD.
10th Floor, Star Building, 33ter-33bis Mac Dinh Chi Street, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam
Phone: +84-8-6291-4127 Fax: +84-8-6291-4126
TODA AMERICA, INC.
600 Townsend Street, Suite 115W, San Francisco, CA 94103, U.S.A.
Phone: +1-415-800-8054 Fax: +1-415-932-6198

Photograph of the Cover
Waseda University
Waseda Campus, Building No. 3

1,379
Paper used in this report is produced using fiber sourced from well-managed forests and other forests where
unacceptable sources have been excluded, as defined by the Forest Stewardship Council.
Printed using 100% vegetable oil inks made from plants containing no volatile organic compound.
The CO2 emitted during manufacturing processes is offset by investments in actions that reduce such emissions.

TODA Corporate Report

2015
Year ended March 31, 2015

The Value Creation Process
The Toda Group will aim to achieve sustainable growth of corporate value with stakeholders
by means of the following kinds of value creation process.
Business risk and social issues
We strive to keep an accurate grasp on a variety
of different business risks and social issues,and take them into consideration in pursuing our business activities.
• Main business risks– Investment in construction, prices, and other trends– Construction risk, etc.
– Supplier credit risk
– Legal and compliance risks– Disaster risk
– Country risk
• Main social issues– Global environmental problems(Disposal of waste material generated during construction, dust, noise, vibration, etc.)– Energy saving and CO2 reduction in the project construction and operation stages– Disaster management(seismic isolation, vibration control, earthquake resistance technology,
reconstruction assistance in disaster areas, etc.)– Construction of social infrastructure that people can use with a sense of security

Main capital invested
We are using a variety of different capital resources to carry out business activities.
• Financial capital– Funds from shareholders and investors, financing fromfinancial institutions, etc.

Contribute to society by means of construction
Provide value to stakeholders

Credibility earned with a history of over 130 years

To our clients− We provide high-quality structures and services− We support business continuity in times ofdisaster− We develop infrastructure with safety and asense of security

TODA CORPORATION corporate philosophy
Management policy
Charter of Corporate Behavior and the President's Precepts for the Field

To our shareholders and investors− We disclose appropriate information− We return profits equitably− We maintain and enhance corporate value

Value creation strategy
Value creation activities[Business activities]− Fair and appropriate
transactions− Grasp required quality− Propose environmental
consideration− Quality control activities− Environmentallyconsiderate design− Propose optimal
construction methods

Planning andproposals

Design− Facility diagnosis,
design and implementation− Environmentally considerate
implementation

Renovation

Maintenance − Increasing the satisfaction of
our clients
andTotal solutions:management − Facility management
Group united for− Quality control activities
skilled manufacturing− Environmentally considerate
Implementation

To our business partners− We conduct fair and appropriate transactions− We form partnerships− We pursue thoroughgoing safety andsanitation management

Results ofbusiness
activities

implementation− Safety management activities− Cooperation with business
partners− Social contribution inneighboring regions• Manufacturing capital*1– Manufacturing facilities and various infrastructure, bases, etc.
• Intellectual capital– Intellectual property, know-how, related technology and othersuch resources that provide the foundation for creating safe
and comfortable social infrastructure• Human capital– The highly developed motivation of directors and employees
founded on our corporate philosophy, expertise, skills, etc.

*1 Manufactured goods used in production and provision of services

To the global environment− We seek to prevent global warming andconserve resources and ecosystems
To our employees− We provide employment and skill
development− We offer worthwhile work

Fiscal 2015 forecast

Fiscal 2017 target

Consolidated net sales

451 billion yen

480 billion yen

Consolidated
operating income

10 billion yen

17 billion yen

Increase in Toda Group corporate value

Base for value creation
Corporate governance, CSR management,compliance and related matters

Dialogue with stakeholders
Reinvest in business

Contents
The Value Creation Process

1

Financial Section

Financial and Non-Financial Highlights

3

Consolidated Balance Sheets

15

Message from Management

5

Consolidated Statements of Income

17

Business Review by Segment

11

Consolidated Statements of Changes in Net Assets

18

Overseas Business

12

Consolidated Statements of Cash Flows

19

Corporate Governance

13

Notes to Consolidated Financial Statements

20

Independent Auditor’s Report

33

Corporate Information / History

34

Board of Directors, Corporate Auditors and Executive Officers/
CSR Management1

2015_TODA Corporate Report

Makingyour success possible=
Achieving
our Global Vision

Consolidated sales and profit• Social capital– The trust of our clients and our strong relationships with
suppliers and other stakeholders• Natural capital– Natural resources such as water, air and earth; the energy
resources used in production, etc.

To local communities− We contribute to local communities− We support neighboring areas in times ofdisaster14

2015_TODA Corporate Report2Financial and Non-Financial Highlights:

Toda Corporation and Consolidated Subsidiaries—Years ended March 31

Key performance indicators
Toda Corporation and Consolidated Subsidiaries—Years ended March 31
Thousands of U.S.
dollars (Note)

Millions of yen

Data on economic aspect (consolidated)

2011

2012

2013

2014

2015

2015

Consolidated

Orders received (non-consolidated)

Net sales

Sales by business and as percentage
of total sales(millions of yen)(millions of yen)

Real estate business

Other

600,000

600,000(3.1%)(0.2%)

452,122450,000

452,499489,385

497,048448,987

420,324

3,497,748

Ordinary income (loss) Graph

7,265(6,690)(45,581)

6,584

14,813

123,274

Net income(loss) Graph

3,567(19,872)(65,285)

10,22814,026

116,721Comprehensive income(loss)(2,586)(17,167)(41,516)

16,874

46,192

384,392

Total net assets Graph

189,581

171,537

128,095

141,880

182,988

1,522,747

Total assets Graph

499,111487,160

500,199473,510495,442

4,122,849

Net sales Graph

Per share of common stock(in yen and U.S. dollars):
Net assets

602.35537.53397.18443.32587.834.891

Net income(loss)

11.53(64.28)(209.70)

32.87

45.42

0.377

Cash dividends applicable to the year

7.00

6.00

5.00

5.00

7.00

0.058

Net cash provided by (used in) operating activities

10,379(48)(17,757)

12,171(947)(7,886)

Net cash provided by (used in) investing activities(5,278)(7,837)(445)

11,441

1,982

16,498Net cash provided by (used in) financing activities(3,754)(1,557)

13,834(10,248)(4,576)(38,080)

Cash and cash equivalents at end of period

61,65452,02448,01562,061

59,245493,017452,122411,691

346,775

462,626

455,516

3,790,604

Non-Consolidated

411,691

452,499

346,775

300,000

150,000

150,000

0

2012

2013

2014

2011

2015

2012

2013

2014

2015

Number of employees (consolidated)(Persons)

5,034

5,101

5,091

4,912

4,817

Number of employees (non-consolidated)(Persons)

4,110

4,072

4,028

3,918

3,861

Men

(Persons)

3,659

3,617

3,570

3,468

3,397

Women

(Persons)

451

455

458

450

464

Average age(Years)

44.9

44.8

44.9

44.6

44.9

Average years of continuous employment(Years)

17.8

20.3

20.4

20.1

20.1

(Frequency)

0.64

0.92

1.02

1.17

1.26

Occupational accident frequency*1 Graph
Number of occupational accidents resulting
in four or more days’ absence from work

(Accidents)

28

43

52

46

88,09487,862

89,24973,18576,709SCOPE 1*2

(t-CO2)-

66,70170,30255,36657,292SCOPE 2*3

(t-CO2)-

23,79821,146

20,877

19,417SCOPE 3*4

(t-CO2)--

9,615,865

7,921,923

13,860,683(t-CO2 /100 million yen)

20.9

19.6

19.7

18.3

20.3

(10,000 t)

74.0

66.3

77.1

78.8

70.8

(%)

7.0

4.2

6.9

5.1

6.7

CO2 emissions basic unit (workplace) Graph
Construction waste generated Graph
Percentage of construction waste disposed of as landfill Graph*1 Frequency : An index showing the incidence of occupational accidents in every million man-hours of work.
*2 Scope 1 : Greenhouse gases that are direct emissions resulting from corporate activity.
*3 Scope 2 : Greenhouse gases that are indirect emissions resulting from energy use for corporate activity.
*4 Scope 3 : Greenhouse gases that are indirect emissions excluding Scope 1 and Scope 2.
Until fiscal 2013, Scope 3 was calculated using categories 2, 3, 5, 6, 7 and 11, but from fiscal 2014 it was expanded to include categories 1, 2, 3, 4, 5, 6, 7, 11 and 12.

3

2015_TODA Corporate Report

1.0billion yen

Civil engineering business

Building construction business

2013

2014

2015

(22.6%)(74.1%)

314.3 billion yen

Construction orders received showed a decline of 7.0% year on year
due to orders being received for large private-sector construction theprevious year. On the other hand, civil engineering orders received
showed an increase of 21.0% year on year. Overall orders received
therefore declined 1.5%, holding roughly to the same level as in theprevious fiscal year.

Net sales for the construction business*, which accounts forthe greater part of sales, showed a decline of 6.3% year on year.
Thus, overall sales also showed a decline of 6.4%. The decline inconstruction sales resulted from the curb placed on orders for building
construction in past fiscal years with a view to profitability.
*Construction business : Building construction business and civilengineeringbusiness.

The building construction business constituted the main business of
the Toda Group in the past, and there has been no significant variationin sales composition by business.

Ordinary income (loss)

Net income (loss)

Total net assets/ Total assets(millions of yen)(millions of yen)(millions of yen)

20,00014,8137,265

20,000

10,2286,584

10,0000-50,000

600,000

14,026

2011

2012

189,581 171,537
150,000-40,000

2013-65,285
2014

2015-80,000

499,111 487,160 500,199

Total assets

473,510 495,442

300,000-19,872-6,690Total net assets

450,000

3,567

0

2011

2012

128,095 141,880

182,988

0

2013

2014

2011

2015

2012

2013

2014

2015

Significant recovery in construction business income brought anincrease of 125.0% in ordinary income year on year.

A gain on sales of investment securities of approximately 4.1 billion yen
was recorded as an extraordinary gain in the previous fiscal year. In abacklash effect, net income showed a rate of increase lower than therate at the ordinary income stage, and recorded a year-on-year increaseof 37.1%.

With the recorded net income and rise in the current price ofshareholdings, total net assets showed an increase of 29.0% year
on year. Although there was a decrease in securities and in costs on
uncompleted construction contracts, total assets rose 4.6% year
on year due to the rise in the current price of shareholdings and thesignificant increase in investment securities.

Occupational accident frequency

CO2 emissions / Basic unit (workplace)

Construction waste generated/
Percentage disposed of as landfill

CO2 emissions

43(t-CO2)CO2 emissions (workplace) Graph

2012-45,5812011

420,3240
2011-10,000

Units

448,987

95.7 billion yen

Note: The rate of ¥120.17=US$1.00, the foreign exchange rate on March 31, 2015, has been used for translation.

Data on social and environmental aspects(non-consolidated)489,385 497,048

450,000

300,000

10,000Orders received Graph

462,626 455,516

13.0 billion yen

1.5

1.17
0.92

1.0

1.26

1.02

(10,000 t)

120,000

60

80

60,0000.5

88,094 87,862 89,249

20.9

19.6

19.7

76,709

20.3

18.3

0
2011

2012

2013

2014

2015

The number of occupational accidents resulting in four or more days’
absence from work is trending downward, but the significant decrease incumulative labor hours caused the frequency figures to deteriorate. We
set the frequency target to less than 0.7 in fiscal 2015, and have been
taking extra measures to prevent accidents.

2011

2012

2013

Percentage disposed of as landfill

(%)
74.0

16

78.8

77.1

70.8

66.3

73,18530,0000.0

Construction waste generated(t-CO2 /100 million yen)

90,0000.64

Basic unit

(t-CO2)

2014

2015

45

60

30

40

15

20

0

0

The breakdown of the CO2 basic unit figures shows that civil engineering
work is down year on year while building construction is up. Sincebuilding construction accounts for 70% of all the construction, the risein the CO2 basic unit figure for building construction contributes to arise in the basic unit figure for the company as a whole. The reason for
the rise in the building construction basic unit is that the large-scale
projects included many excavations of soil that released large amountsof CO2.
There will be fewer large-scale excavations in fiscal 2015, so the CO2
basic unit figure is expected to decline from fiscal 2014 on.

7.0

12
6.9

6.7

8

5.1

4.2

4
0

2011

2012

2013

2014

2015

The amount of concrete debris generated diminished 20% year on year,
and total waste declined 11%. The reduction in the percentage disposedof as landfill was caused by reduction in the amount of concrete
debris, almost 100% of which is recycled, and an increased amount ofconstruction sludge disposed of as landfill.
The percentage disposed of as landfill is determined by the amount of
concrete debris generated (the amount of demolition work done) in that
fiscal year. We will make every effort to improve the percentage disposedof as landfill in fiscal 2015 relative to fiscal 2014 by continuing to limit theamount generated and by sorting the waste more thoroughly.

2015_TODA Corporate Report4Message from Management
Performance in fiscal 2014 and prospects for fiscal 2015
Performance target of 2% or higher operating margin set for the medium-term management plan ending in fiscal 2015
achieved one year ahead of schedulePresident

Masanori Imai

Becoming a corporategroup that makes yoursuccess possible

Looking back at the environment for business in Japan during

increase over the previous period) and an operating margin of

fiscal 2014, we see that although the last-minute demand

3.1%.

from the rise in the consumption tax rate was accompanied

Under ordinary income and loss, factors including

by a reactionary decline in personal consumption, corporate

interest income and dividend income from investment

earnings improved due to such background factors as the

securities brought ordinary income to 14.8 billion yen (andepreciation of the yen and the drop in the price of crude oil.

increase of 125.0% year on year).

Overall, therefore, that moderate upswing has continued.

Net income or loss recorded for the current period

The construction industry has seen orders remain firm,

accounted for extraordinary income of 1.0 billion yen from themainly due to public sector construction. At the same time,sale of investment securities as well as a 400 million yen gain

however, the labor shortage and other concerns have noton negative goodwill, for a net income of 14.0 billion yen (anbeen cleared away, so various factors of uncertainty also

increase of 37.1% year on year).
With a continuing trend of improvement in thepersist in the environment.
Under these circumstances, the consolidated results for

employment and earnings environment, economic conditions

the Group show sales of 420.3 billion yen (a 6.4% decline

ahead appear likely to continue in modest recovery. However,year on year) due primarily to a reduction in completed

although the construction industry anticipates recovery inconstruction at the Company.

residential and private sector capital investment, there is

In terms of operating income and loss, factors including
the thoroughgoing adoption of a policy of focusing onOur creed since Toda Corporation was foundedin 1881 has been commitment to the best in
quality, construction time frames, and safety. Our

management policy is to contribute to the advancementof society’s welfare through construction, to develop the

In light of these circumstances, the Group anticipates

construction contracts. This resulted in a gross profit marginfiscal 2015 results of 451.0 billion yen in consolidated sales (anon sales of 8.6%, a 2.9-point increase over the previous

increase of 7.3% year on year), 10.0 billion yen in operating

period, and 36.1 billion yen gross profit on sales (a 42.0%

income (a decrease of 23.0% year on year), 11.6 billion yen inincrease over the previous period). Meanwhile, selling,ordinary income (a decrease of 21.7% year on year), and net

TODA Group Global Vision

general and administrative expenses increased over theincome of 10.1 billion yen belonging to shareholders of the

A corporate group that makes
your success possible

previous period by 12.0% to 23.1 billion yen, so that weparent company (a decrease of 28.0% year on year).

For the satisfaction of our clientsstability in the company business on the basis of appropriate

We will build strong reliable partnerships with our clients by deliveringprofit earned through sound management. With that as ourour precise technical expertise and comprehensive human resources.

a wide range of services to our clients and our many years of
results, we have won recognition for building relationships oftrust with our stakeholders.
Looking ahead to the 140th anniversary of the founding

For work we can be proud of
All of us at TODA work together to create a successful environment thatallows us to bring passion and a strong sense of responsibility to each

For future generations and our planet

group that makes your success possible” as an expression

We will create an environment-friendly society that is both safe andcontinue contributing to the creation of safe and comfortable

recorded an operating income of 12.9 billion yen (a 171.4%

Summary of the previous medium-term management plan1
Performance target achieved one year ahead of schedule,
financial soundness also recovered
Operating margin (%)
Equity ratio (%)
Previous medium-term plan (to fiscal 2015)
Medium-term target:
3.1
2% or higher

Summary of the previous medium-term management plan2
System for responsibility and promotion to help resolve
immediate issues

Previous medium-term plan (to fiscal 2015)

36.4

34.4

1.1

project we undertake.

of the Company in 2021, we adopted the phrase “a corporateof our global vision in January 2015. Going forward, we willlabor shortage and other such factors.

profitable orders raised the gross profit margin on completedcompany business on the basis of society’s trust, and to seek

declared foundation, and with backing from our provision ofconcern about increasing construction costs caused by the

24.7

Improvement

FY2013

29.1
Recovery

FY2014secure by deeply tackling challenges posed by changing times andsocial circumstances.
2011

2012

2013

2014

(FY)

2011

2012

2013

2014

Promotion Office for
Value Creation–Toda’s own unique value creation–Operational reform and rebuilding of
information and communication technologies (ICT)Group Control Department–Provide clients with value throughout theconstruction lifecycle

Overseas Division–Take on the challenge of overseas markets
that continue to grow

Investment and Development
Division–Expand fields of business with a view to the future

Tokyo Metropolitan Area
Civil Engineering Branch–Take on the challenge of large-scale civilengineering work
–Further dramatic advances in the civilengineering sector(FY)social infrastructure.

5

2015_TODA Corporate Report

2015_TODA Corporate Report6New medium-term management plan formulated

Overview of medium-term priority measures and performance target

It is precisely now, when steady investment in construction can be anticipated, that the Toda Group has chosen as thestarting point for transformation into a newly appealing corporation.

No.1 in productivity

Establish the high level of productivity that places us at the top of the general contracting
industry

The coming construction market is expected to see

met again in fiscal 2015. For a variety of such reasons,

I will start by describing measures to achieve No. 1 in productivity.

steady investment in the medium term, concentrated

including our completion of organizational reforms for

It is a problem for this company, as it also is for the construction

in urban areas, leading up to the 2020 Tokyo Olympics

the purpose of advancing our growth strategy, we will

industry as a whole, that we saw a peak in 1991 where the amountand Paralympics. At the same time, however, thedefine fiscal 2015 as a new starting point. We haveof value added per employee began to trend downward compareddeclining population, fiscal constraints and other such

decided to formulate the “medium-term management

to sales by employee. We therefore reviewed all of our operational

factors make long-term expansion in investment

plan 2017,” which will have fiscal 2017 as its final year.

processes and carried out improvements. We also initiated aunlikely. In this societal context, we view increased

We are positioning this plan as Phase I in

project in fiscal 2014, centered on our ICT Strategy Unit, with the

productivity as an urgent and crucial issue for the labor-

realization of the Toda Group global vision. We intend

aim of further rationalizing operations by means of information andintensive construction industry.

to carry this plan to a successful conclusion in 2021,

communication technologies (ICT). We will continue engaging in

Under these circumstances, the Group has

when we celebrate the 140th anniversary of themeasures like these with the aim of establishing a high level ofdefined the four-year period from fiscal 2012 to 2015 ascompany’s founding. By further strengthening our

productivity placing us at the top of the general contracting industry.

the time to aim for rebirth as a system for producing

measures toward that end, we will aim to epitomize “aSpecific measures we are taking based on this approachstable income. We have been promoting structural

corporate group that makes your success possible.”

include expanded use of specially negotiated contracts and designreform of our business according to our medium-term

We take the current management environment,

implementation, development and application of differentiating

management plan, which was formulated in May 2012

which is anticipated to bring steady construction

technologies, improvement of procurement methods and otherand revised in November of that year, with the two key

investment, to represent a last chance for the Groupsuch actions to strengthen our value creation capabilities and costpoints of improving profit from construction work andto refashion itself into a more appealing corporation.

competitiveness. We will also pursue adoption of labor-saving

implementing Group-wide growth strategy. Various

In that awareness, the entire Group will join as one in

implementation, promotion of BIM*, operational reform and ICT

different improvement measures have yielded results,

taking on the challenge of our medium-term priority

reconstruction, expanded collaboration with business partners andand we were one year early in achieving the operating

measures for breaking through stereotypes, and forother such measures to increase our assimilative capacity and our

margin of 2% or higher, which had been set as acreating new value and systems, in order to achieve

operational speed.

performance target for the final fiscal year of the plan.

the status of Number 1 in productivity and to realize*BIM : Building Information Modeling: a method of integrating and managing a variety of different

the foundation for our growth.

information in design and implementation by using a three-dimensional building model created by

It appears likely that our targets will continue to becomputer.

No. 1 in productivity

Positioning and orienting the plan

Value creation capabilities andcost competitiveness

Phase I in concrete implementation of our global vision

Phase II

Medium-term management plan 2017

(FY2018-2020)

Break through stereotypes and create new value and systems

Sustain and deepen reform

No. 1 in productivity

Foundation for growthEstablish the high level of produc- Enlarge our areas of businesstivity that places us at the top of and pursue synergy with conthe general contracting industry
struction

No. 1 in robust
resilience
Establish new
business models

Fiscal 2017 target
TODA Group Global Vision

A corporate groupthat makes
Your successpossible-Reorganize production systems and operational flow to pursue improvements in productivity.
-Promote enlargement of our areas of business with a view to the future.
-Taking steps to diversify our personnel and values, and build a new corporate climate.

Current state

FY2014 results
Sales

Phase I (FY2015-2017)

No. 1 in productivity

Consolidated
sales

420.3 billion yen

Labor
productivity

11.54 million yen

Sustainablegrowth that is
profitable

Consolidated
sales

480.0 billion yen

Labor
productivity

13.00 million yen(+14.2%)(+12.6%)Assimilative capacity andoperational speed (shortened hours)
Productivity

7

2015_TODA Corporate Report

2015_TODA Corporate Report8Foundation for growth

Enlarge our areas of business and pursue synergy with construction

Toward achievement of our global vision

The foundation for growth involves aiming to position

We will also continue further development of systems

investment and development, overseas, and domestic

to deal with renovation demand so that clients’Group companies in strategic fields, to enlarge

facilities can be entrusted to the Group throughout

our areas of business and to pursue synergy with

their entire construction lifecycle. By means of these

construction.

measures, we have raised our sales targets to 40.0

First, in investment and development, we are
seeking to make effective use of investments in new

billion yen in fiscal 2017 and 45.0 billion yen in fiscal
2020.

businesses such as health, agriculture, environment

Our long-term objectives for 2021 and beyond

and energy and so on, as well as of real estateinclude increasing the component percentages of theowned by the company at storehouse and so on, andstrategic areas in operating income as a whole to 35%

to promote our head office building reconstruction(9.5% in fiscal 2014), and taking steps to increase

project.

earnings.

In the overseas field, we will keep our Brazil andSoutheast Asia operations as the two main centerswhile reviewing local corporations and taking steps
to further expand our regional presence. We will also
engage actively in the environmental business, smart

Foundation for growth (three areas of strategy)
Investment and development- Effective utilization of company-owned real estate (storehouse, etc.)- Promotion of the head office building reconstruction project- Investment in new business (health, agriculture, environment and energy, etc.)- Review local corporations, expand regional presence- Initiatives in development business (environmental business, smart city, etc.)

Regarding our Group companies in Japan, weGroup collaboration, in which the focus will be on theenvironment of the construction
business has grown increasingly
harsh in recent years, and massive
aggregations of social issues aredemanding solutions on a global scale.
In this context, we have set out on new
initiatives to bring about sustainablegrowth that will be profitable for society
What we are aiming for is not
growth for the Group alone. We are
seeking prosperity for our stakeholders
as a whole, including clients,
shareholders, investors, business
partners, local communities, the global

Overseas

have raised our sales targets to 25.0 billion yen in fiscal

will take steps to secure core clients by strengthening

As noted above, the management

as well as for the Group.

city and other such development businesses, and we
2017 and 40.0 billion yen in fiscal 2020.

Aiming to become “a corporate group that makes your success possible” is our creed

Group companies in Japan- Secure core clients by strengthening Group collaboration- Develop systems to deal with renovation demandGroup Control Office we established in January 2014.

Performance targets
By means of measures like these, we aim to achieve

new performance indicator, and we will aim to achieve

performance targets in the final fiscal year (fiscal 2017)13.00 million yen (11.54 million yen in fiscal 2014).

environment, our employees and others. Two generalenvironmental problems, disaster management, social

directions have been mapped out for the medium-term

infrastructures and other such social issues. Furthermore,management plan 2017, which corresponds to Phase I of

the fact that there is a shortage of construction workers,

this vision.

who are absolutely essential for resolving these kinds of

One is the improvement of productivity. This meanssocial issues, is emerging as a distinctive issue faced bytaking measures to accomplish more work in the same

our industry. This issue is being addressed, not just byamount of time and with the same amount of labor,

the Group, but by the industry as a whole, with steps toand to continue raising our assimilative capacity (level ofencourage employment and retention of young skilledconstruction completion).

construction workers and technicians, and to improve

The other is to take the reserve capacity resultingof 480.0 billion yen in consolidated sales and 17.0 billion

In determining dividends, we will bear in mind

from the above measures and invest it in growth sectors

yen in operating income (operating margin of 3.5%) ora dividend payout ratio of 20%-30% and make theearly on so as to secure new sources of earnings with anhigher. We are also adopting labor productivity* as adecision taking continuity and stability into account.

eye to the future.
We will take measures like these with the aim of
becoming a still more appealing corporate group.

Group performance targets for fiscal 2017
Consolidated sales, operating income, etc.

Return to shareholders
Fiscal 2014 results

Fiscal 2017 targets

15.4%

20%~30%

the work environment to enable women, foreigners andother people to take active parts.
The concept of CSR now extends beyond the
management framework and is becoming an element ofgreatest importance in upholding the competitivenessof a business. We are engaging in the development

The Group pursues corporate social responsibilityof technology and human resources and other such

(CSR) activities in the context of a variety of measures formeasures for the purpose of achieving growth over thecollaboration on building a sustainable society. Throughmedium to long term as an integral part of our business,

our CSR activities, we engage in dialogue with ourconstantly aware of maximizing the value we provide our

Fiscal 2014 results

Fiscal 2017 targets

Consolidated sales

420.3 billion yen

480.0 billion yen (approximate)

Operating income

12.9 billion yen

17.0 billion yen or more

stakeholders and work to ascertain the expectations andstakeholders. With this commitment, and with the aim ofOperating margin

3.1%

3.5% or moreissues involved in efforts to realize a sustainable society.

becoming “a corporate group that makes your success

11.54 million yen

13.00 million yen or more

In recent years, questions have been raised about what

possible” before us, we are continuing to take on thesekind of initiatives should be promoted to deal with global

challenges.

Labor productivity (non-consolidated)

Dividend payout ratio*Labor productivity is the amount of added value per employee, defined as (operating income + total personnel expenses) ÷ Number of employees (average for the period,
including temporary employees, etc.)9

2015_TODA Corporate Report

2015_TODA Corporate Report10Business Review by Segment (consolidated)

Overseas Business

Building Construction
Fiscal 2014 performance and measures
for realization of the new medium-term
management plan
Fiscal 2014 sales in the construction
business segment amounted to 314.3 billion
yen (a 9.3% decline year on year). Due

Main results in fiscal 2014
(completed construction)

Japan Post Co., Ltd.
Omiya Sakuragi-cho 1-chome plan
(provisional name), new construction
Waseda University
Waseda Campus, Building D (provisionalname), new construction (Building No. 3)

to an increase in income from completed<See photo above>

construction, this segment recorded

Shimadzu Corporation
Building E1 construction plan

operating income of 9.0 billion yen (in fiscal
2013, operating income was 700 million
yen).

Sei Maria Gakuen
Seiko Gakuin new school building
improvement plan

Business overview

Main overseas bases

In our overseas business, consolidated

expand our specially negotiated contracts

subsidiaries with bases in Brazil,

by utilizing and evolving our technology

Thailand, Vietnam, and other places

holdings, improve our procurement

are engaged mainly in private-sector

methods and take other such measuresconstruction. We are also developing

to upgrade our value creation capabilities

business in the Asia and Africa regions

and cost competitiveness. At the same

through aid project construction, andtime, we will also improve our worksite

in the America region through our real

production systems, make more effective

estate business.

Toda participates in the building of facilities
for the Anglo-Japanese Fair in London.
1

1914

Company participates in the construction offacilities for the Panama-Pacific Exhibition
held in San Francisco.
2

1972

use of information telecommunications (ICT),
expand our collaboration with business
partners and take other such steps to

We will continue to make every effort toincrease our assimilative capacity and ourraise productivity and expand our operational

operational speed. Furthermore, we willbase in order to be able to respond withpromote measures to develop and makeagility to future changes in the competitiveeffective use of our personnel with a view

environment. Specifically, this means thatto creating the human resources value

we will conduct solution-oriented sales

that will form the foundation of the futurewith a grasp of our clients’ true needs,

construction business.

Construtora Toda do Brasil S.A. and Toda
America, Inc. are established.

Status of business in fiscal 2014

1

Fiscal 2014 sales in the overseas

Toda America, Inc.

business amounted to 21.0 billion yen

Construtora Toda do Brasil S.A.

2

(a decrease of 12.7% year on year). In
billion yen (a decrease of 6.2% year

Toda Vietnam Co., Ltd. is established.

on year).

Civil Engineering

Myanmar in March 2015.

Fiscal 2014 performance and measures

Lanka for an Asian Development Bankfor realization of the new medium-term

4

5

management plan
Fiscal 2014 sales in the civil engineeringbusiness segment amounted to 95.7 billion
yen (an increase of 5.6% year on year). This
segment recorded operating income of 3.0
billion yen (an increase of 20.3% year onyear).
Considering future market abilit yin the Tokyo Metropolitan Area, we areconcentrating management resources forsales and execution in our civil engineering
division there in order to reinforce ours ys t e m s fo r o r d e r a c c e p t a n c e a n d
construction. We established a Tokyo

11

Tokyo Metropolitan Government
Bureau of Waterworks
Asaka Water Purification Plant, Advanced
Water Treatment Facility (Phase II)
construction
Misato Interchange South District
Zoning Association
Misato Interchange South District Zoning
Project Development work (Phase I, Phase
II, Phase II(2), Phase III), etc.
Keio Corporation
Chofu Station area connecting grade
separated crossing construction (civilengineering), No. 6 Construction Section(4-2), etc.

2012

Southeast Asia Regional Office is established.

2013

loan project. Full-scale construction
work has begun. In the overseas civilof the civil engineering division is our humanresources, and we intend to promote
development in that area, as well.
Going forward, we will continue with
our efforts in technology development toprovide value for our clients and increase
our workplace productivity. At the sametime, we also intend to pursue measures
to expand our areas of business and ourearnings structure with careful attention
to the future. To that end, we will takeaggressive steps to develop business in the

Metropolitan Area civil engineering branch

agriculture sector, the environmental andoffice in April 2015 for that purpose. The corerenewable energy sector and other areas.

2015_TODA Corporate Report

6

Corporation to receive an order in Sri(completed construction)<See photo right>

Company celebrates the 100th anniversary of
the start of overseas operations.

It was also a first for Toda

Main results in fiscal 2014
Central Nippon Expressway Co., Ltd.
No. 2 Tomei Expressway, Nukata
Tunnel +1
Tunnel construction

2010

3

Asia, and in the current fiscal year weestablished a Yangon Branch Office inengineering business, this order has
given us an opportunity to amass
implementation experience, and wehope to use this in taking a new stepin business.

1988

Thai Toda Corporation Ltd. is established.

2009

fiscal 2015, we expect to record 19.7

Our priority market overseas is

Overseas Timeline
1910

3

Yangon Branch Office
4Southeast Asia Regional Office
Thai Toda Corporation Ltd.

Jakarta Representative Office is established.

2015

Yangon Branch Office is established.

5

Toda Vietnam Co., Ltd.
6

Jakarta Representative Office(Construction track record: 38 countries)

Brazil is a key market that
accounts for nearly 50% of theGroup’s overseas sales. Interest in theenvironment is increasing in Brazil,
and environment-related international
conferences and exhibitions of various
kinds are being held. Toda also took
part in these events, and we displayed
environmental technology and gave
lectures.

Honda Brazil New plant (construction completed 2015 in Brazil)

Bridgestone Asia Pacific Technical Center New laboratory(construction completed 2014 in Thailand)

2015_TODA Corporate Report12Board Of Directors, Corporate Auditors and Executive Officers As of June 26, 2015

Corporate governance
We take the view that active engagement in corporate governance measures to achieve continuing enhancement ofcorporate value is a crucial issue for management. With a view to the efficient execution of corporate business, the creationof supervisory structures, the assurance of sound, transparent management and the strengthening of compliance, we are
putting in place the needed management structures and arrangements and enacting the measures required.

Directors

Corporate Auditors

President and Representative Director
Masanori Imai

Directors
Morimichi Toda

Standing Corporate Auditors
Etsuo Nonoguchi

Makoto Hayakawa

Takeshi Nishimaki

Representative Directors

Yutaka Nishizawa

Yushi Kikutani

Toshihiro Otomo

Corporate Auditors

Shunichi Akiba

Hiroshi Uekusa

Katsutoshi Suzuki

Hiroyuki Miyazaki

Setsuhiro Shimomura

Fumiyuki Akikusa

Shunsuke Amiya

Kazuhiko Kamiya

The board of directors and reinforcing thefunctionality of business operations   Enhancement of auditing systems 

Our company has adopted the executive officer system, which separates

auditors, through seats on the Board of Directors and other means, audit

management decision-making by directors from business operations

the legality and propriety of operations. Since June 2008, we have further

Executive Officers

by executive officers. This clearly delineates the scope of roles andupgraded the management oversight function by adding one more auditor

responsibilities, and we are making every effort to reinforce functionality infrom outside the company, so there are now two internal auditors and three

President and Chief Executive Officer
Masanori Imai

those respective areas.

outside auditors.

Our company has adopted a system of corporate auditors under which

Managing Executive Officers
Makoto Hayakawa

Executive Officers
Hiroyuki Yamada

Noriaki Isemoto

Yutaka Nishizawa

Teruo Sahashi

Toshiaki Gunji

Senior Managing Executive Officers

Toshihiro Otomo

Yuji Yokomizo

Masato Miyake

Yushi Kikutani

Hiroshi Uekusa

Toshio Hirata

Kouichi Kubota

The Board of Directors has 11 members (as of June 26, 2015). As a

The Corporate Auditor Office is a unit that aids corporate auditors in

rule, the board meets once a month to deliberate on important management

their duties. Our rules call for personnel and organizational changes in thisShunichi Akiba

Katsuaki Fukushima

Kenichi Okabe

Hitoshi Asanomatters and oversee the execution of corporate business. Since fiscal 2014,

office to be determined in advance by the Board of Corporate Auditors or

Hiroyuki Miyazaki

Kaoru Mitsumochi

Takao Fukashiro

Shinichi Nagata

we have been appointing two directors from outside the company as ain accordance with advice sought from auditors designated by the Board of

Yoshihiko Yamamoto

Ken Fujita

measure to further strengthen transparency, objectivity and propriety, and the

Corporate Auditors. This arrangement preserves the independence of auditors

Kouichi Takahashi

Toshiaki Agata

Takanori Matsushima

Hidemi Wakabayashi

accountability of the Board of Directors. We have determined that personnel

from the directors and executive officers.

Yoshinori Shibuya

Toshihiro Yamazaki

Morimichi Toda

Atsushi Ouchi

matters for the Board of Directors and key executives in the operating
divisions, including their qualifications and fitness, are to be subjected toEnhancement of internal controls  

deliberation in the newly established Personnel Committee, which is chaired

Toda established a Risk Management Office in March 2014 for the purposeby an outside director, and reported to the Board of Directors.

of risk awareness on a company-wide basis, related reform of corporate

The executive officers execute Toda corporate business in accordance

culture, and institution of more advanced management. Through this office, wewith basic management policy decided by the Board of Directors. We also

will promote the rearrangement of internal controls and crisis management

hold regular meetings of the Management Committee, Strategy Committee,

systems. We have also established an Audit Department as an internal audit

and Executive Committee to deliberate on important matters of management

unit that conducts regular audits of the state of operations in the various

and company business and make their findings known. These bodies also

corporate departments and divisions. In addition to reporting audit results toassign responsible executives, establish the scope of their responsibilities,
prescribe procedures, and determine other such matters regarding company

the President, various steps are also taken for collaboration and coordination bymeans of reports to the corporate auditors and regular exchanges of views withorganization, division of duties, management authority, and formal approvalaccounting auditors regarding their vision for internal auditing. Internal audits

procedures according to their respective rules and regulations.

of Group companies are also conducted as required, in accordance with the
management rules of the companies concerned.

Corporate governance structure (as of June 26, 2015)
General Meeting of Shareholders
Appointment

Appointment/
Oversight

Appointment
Audit

Board of Directors
Reporting

ReportingPresident (Representative Director)

Board of Corporate Auditors

Reporting
ReportingAccounting audit

ReportingCommittees

Executive Officers(Managers of Headquarters, Supervisory Department and Branch Offices)
Direction

ReportingExecutive Committee

Departments

13

2015_TODA Corporate Report

Internal audit

Coordination
Risk Management
Compliance
OfficeCommittee
Training

Training
Reporting(internal contacts)

CSR policy and KPI selection   

The concept of corporate social responsibility (CSR) is becoming an essential

In recent years there has been a wide variety of social issues such as

element in upholding the competitiveness of a business. In order to promote

environmental problems and social infrastructure that are related to the

CSR as a function integral with business throughout the entire Group,

construction industry and for which solutions are anticipated.

executive officers in charge of CSR have been appointed under the President

Out of the various issues involved with our business activities, the Groupand a CSR Liaison Conference has also been created to formulate CSR policy,

has identified four topics in which society has shown a high degree of concern

approve programs, and manage progress in these and related areas.

and which we think the Group should address in the interest of achieving

In order to promote the more widespread awareness and adoption ofsustainable growth with society. We have designated these as our four CSR

CSR activities, we conduct a questionnaire survey of employee awareness ofpolicies: soundness and fairness, skilled manufacturing, job satisfaction,these matters (a separate Group survey is also conducted). Issues identified

and communication. Under these four CSR policies we have designatedby comparative analysis of surveys and other sources are included in factors

priority program items and selected key performance indicators (KPI), and we

considered for our efforts to improve and promote CSR activities.

are taking steps to manage the status of our progress and pursue ongoing
improvement by implementing the Plan-Do-Check-Action (PDCA) cycle.
In determining priority program items and KPI, we have taken into
consideration the GRI*1 Guidelines (4th edition) and ISO 26000*2, which

President
ReportingDirection

Audit Department

Reporting

CSR promotion system  

CSR promotion system

Accounting Auditors

Coordination

Strategic Meeting

Direction

Coordination

Coordination Corporate Auditor Office

Management Meeting
Appointment/
Oversight

Appointment

CSR management

Group Control OfficeInternal audit

Direction

Reporting(internal contacts)
Affiliates

ReportingPresidents of Group companies
Executive officers in charge of CSR
CSR Liaison Conference
Members from 20 head office units;
secretariat situated in the Public Relations and CSR Division

Coordination andcollaboration

are international CSR standards. We have also engaged in dialogue withstakeholders inside and outside the company and taken their views into account.
*1 GRI : Global Reporting Initiative: a non-profit organization with the mission of creating internationalguidelines for sustainability reporting. It is a United Nations Environment Programme (UNEP) Collaborating
Center with headquarters in the Netherlands.
*2 ISO 26000 : international guidelines for the social responsibility of organizations, published by theInternational Organization for Standardization (ISO) in November 2010.

2015_TODA Corporate Report14Consolidated Balance Sheets

Toda Corporation and consolidated Subsidiaries - As of March 31, 2014 and 2015
Thousands of
U.S. dollars

Millions of yen

2014

2015

2015

2014

2015

2015

¥ 117,656¥ 107,216¥ 892,207

52,35332,597271,262

LIABILITIESASSETS

Current liabilities:

Current assets:
Cash and deposits (Notes 9 and 11)

Thousands of
U.S. dollars

Millions of yen

Notes and accounts payable-trade (Note 11)¥ 44,296¥ 43,488$ 361,887

Notes and accounts receivable-trade (Note 11)

124,056

121,009

1,006,989

798

651

5,423

Short-term investment securities (Notes 11 and 12)

18,050

10,23585,172

Advances received on uncompleted construction contracts

37,455

26,763

222,712

Real estate for sale

21,38520,903

173,947

Provision for bonuses

2,863

3,905

32,500Costs on uncompleted construction contracts (Note5.7))

22,62910,80689,928Provision for warranties for completed construction

2,773

2,316

19,277

Other inventories

801

424

3,535

Provision for loss on construction contracts (Note 5.7))

15,545

7,576

63,049

435

435

3,625

Deferred tax assets (Note 15)

72

230

1,916

127,436

Other
Allowance for doubtful accounts
Total current assets

13,51722,088183,811(795)(1,114)(9,276)

244,014228,072

1,897,912

Noncurrent assets:
Property, plant and equipment: (Notes 5.1) and 17)
Buildings and structures, net

14,022

12,179101,353

765

709

5,903

Land (Note 5.6))

60,61360,367502,350

Lease assets, net

191

182

1,515

Machinery, vehicles, tools, furniture and fixtures, net

Construction in progress
Total property, plant and equipment

10

122

1,020

75,60273,561

612,144

Short-term loans payable (Note 11)
Income taxes payable (Note 11)

Provision for loss on litigation
Deposits received

15,93615,314Other

12,933

11,992

99,792

Total current liabilities

258,752

208,769

1,737,287

Long-term loans payable (Note 11)

13,20633,735

280,732

Deferred tax liabilities (Note 15)

25,10236,252

301,678

Deferred tax liabilities for land revaluation (Note 15)

9,418

8,268

68,808

172

133

1,110

Noncurrent liabilities:

Provision for directors' retirement benefits
Provision for loss on liquidation of subsidiaries and affiliates
Net defined benefit liability (Note 14)
Asset retirement obligations

-

532

4,434

21,824

21,466

178,637

149

167

1,392

Other

3,004

3,126

26,020Total noncurrent liabilities

72,877

103,684

862,815331,629

312,4542,600,102

191,408

Total liabilities
NET ASSETS

Intangible assets

2,868

2,969

24,713

Investments and other assets:
Investment securities (Notes 5.2), 3) , 11 and 12)

147,572

185,476

1,543,448

Long-term loans receivable (Notes 5.3) and 11)

1,325

765

6,373

-

2,296

19,109

169

176

1,466

Other

3,184

2,630

21,892

Allowance for doubtful accounts(1,227)(506)(4,210)Total investments and other assets

151,024

190,839

1,588,079

Net defined benefit assets (Note 14)
Deferred tax assets (Note 15)

Total noncurrent assets

Total assets

229,495¥ 473,510

267,370¥ 495,442

2,224,936$ 4,122,849

Shareholders' equity:
Capital stock

23,001

23,001

Capital surplus

25,50425,504

212,236

Retained earnings

45,47259,155492,267

Treasury stock(6,007)(8,212)(68,340)

Total shareholders' equity

87,971

99,449827,572

45,47774,942

623,640-

3

27

Revaluation reserve for land (Note 5.6))

5,722

6,017

50,077

Foreign currency translation adjustments

(700)

40

335

Remeasurements of defined benefit plans (Note 14)

(522)

91

759

Accumulated other comprehensive income (Note 7)
Valuation difference on available-for-sale securities
Deferred gains on hedges

49,977

81,095

674,840

Minority interests

Total accumulated other comprehensive income

3,930

2,443

20,334

Total net assets

141,880

182,988

1,522,747¥ 473,510¥ 495,442$ 4,122,849

Total liabilities and net assets

See accompanying notes to consolidated financial statements.

15

2015_TODA Corporate Report

2015_TODA Corporate Report16Consolidated Statements of Income

Consolidated Statements of Changes in Net Assets

Toda Corporation and Consolidated Subsidiaries - For the years of March 31, 2014 and 2015
Thousands of
U.S. dollars

Millions of yen

Net sales:
Net sales of construction contracts
Net sales of real estate business and otherTotal net sales
Cost of sales:
Cost of sales of construction contracts (Notes 6.1) and 4))
Cost of sales of real estate business and other (Note 6.2))
Total cost of sales
Gross profit:
Gross profit on construction contracts
Gross profit on real estate business and otherTotal gross profit
Selling, general and administrative expenses (Notes 6.3) and 4))
Operating income
Non-operating income:Interest income
Dividend income
Dividend income of insurance
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets (Note 6.5))
Gain on sales of investment securities (Note 12)
Gain on negative goodwill (Note 16)
Reversal of provision for loss on litigation
Other
Total extraordinary income
Extraordinary loss:
Loss on sales of noncurrent assets (Note 6.6))
Impairment loss (Note 6.7))
Loss on sales of investment securities (Note 12)
Loss on valuation of investment securities (Note 12)
Loss on abandonment of noncurrent assets
Provision for loss on liquidation of subsidiaries and affiliates
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes (Note 15)
Net income before minority interests
Minority interests in income
Net income (Note 20)

Toda Corporation and consolidated subsidiaries - For the years ended March 31, 2014 and 2015
Millions of Yen

2014

2015

2015

¥ 434,958
14,028448,987¥ 407,650
12,673
420,324$ 3,392,285
105,4623,497,748

412,916
10,644
423,561

374,595
9,619
384,215

3,117,214
80,0483,197,263

22,042
3,383
25,425
20,643
4,782

33,055
3,054
36,10923,13012,978275,070
25,414300,484
192,481
108,003

Changes during period

272
1,928
269
426
2,897

416
2,097
173
346
3,033

3,468
17,453
1,444
2,879
25,246

855
188
51
1,095
6,584

902
193
103
1,198
14,813

490
4,161
133
550
1
5,336
15
684
2
139
7
29
879
11,041
732
(194)
538
10,503274¥ 10,228

Capitalstock

Balance at March 31, 2013-

Treasury
stock

-

-

-

-

23,001 25,502 36,723 (5,987) 79,240 40,046

1

Purchase of treasury stock-- (1,556)- 10,228-

Reversal of revaluation reserve
for land

-

-

217

-

Other

-

1

(140)

Net changes of items
other than shareholders' equity

-

-

7,506
1,610
858
9,974
123,274

Total changes of items
during the period

-

1

307
1,051
480
1
1,842

2,562
8,750
3,998
16
15,328

Restated balance

13
802
186
532
12
1,548
15,107
930
(219)
711
14,395369¥ 14,026

115
6,677
1,551
4,434
107
12,887125,715
7,746(1,826)
5,919
119,796
3,074$ 116,721

Net income

Balance at March 31, 2014

Toda Corporation and Consolidated Subsidiaries - For the year of March 31, 2014 and 2015
2014

2015

2015

¥ 10,503¥ 14,395$ 119,796

5,423
(1)
948
6,370
16,87429,467
3
844
867
613
31,79646,192245,216
27
7,029
7,219
5,103
264,596384,392

16,569¥ 305

45,694¥498

380,247$ 4,144

-

-

-

-

5,940 (1,611)¥

Minority
interests

Total net
assets- ¥44,376 ¥4,478 ¥128,095--- 44,376--

4,478 128,095

-

-

-

-

-

-

- (1,556)- 10,228
(19)

217

-

-

-

-

-

-

-

217

-

(138)

-

-

-

-

-

-

-

(138)

-

-

-

5,431

(1)

(217)

910

(522)

5,600

(547)

5,053

8,749

(19)

8,731

5,431

(1)

(217)

910

(522)

5,600

(547) 13,784

662

-

662

¥ - ¥5,722 ¥(700) ¥(522) ¥49,977 ¥3,930 ¥141,880

-

-

-

-

23,001 25,504 46,135 (6,007) 88,634 45,477

-

5,722

(700)

-

-

(522) 49,977-

662

3,930 142,542

Changes during period

Purchase of treasury stock-- (1,555)- (1,555)- 14,026- 14,026- (2,205) (2,205)

-

-

-

-

-

-

- (1,555)- 14,026- (2,205)

Reversal of revaluation reserve
for land

-

-

549

-

549

-

-

-

-

-

-

-

549

Other

-

-

-

-

-

-

-

-

-

-

-

-

-

Net changes of items
other than shareholders' equity

-

-

-

-

- 29,465

3

294

740

613 31,117 (1,487) 29,630

Total changes of items
during the period-- 13,020 (2,205) 10,815 29,465

3

294

740

613 31,117 (1,487) 40,445¥3 ¥6,017¥40¥91 ¥81,095 ¥2,443 ¥182,988

Dividends from surplus
Net income

Balance at March 31, 2015

¥23,001 ¥25,504 ¥59,155 ¥(8,212) ¥99,449 ¥74,942

Thousands of U.S. dollars

Capitalstock

Cumulative effects of changes
in accounting policies
Restated balance
Changes during period

Thousands of
U.S. dollars

Millions of yen- (1,556)- 10,228(19)(19)¥23,001 ¥25,504 ¥45,472 ¥(6,007) ¥87,971 ¥45,477

Cumulative effects of changes
in accounting policies

Balance at March 31, 2014

Consolidated Statements of Comprehensive Income-¥ 1 ¥5,940 ¥(1,611)-

Dividends from surplus

See accompanying notes to consolidated financial statements.

Income before minority interests
Other comprehensive income (Note 7)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Shareholders of the Company
Minority interests

Retainedearnings¥23,001 ¥25,502 ¥36,723 ¥(5,987) ¥79,240 ¥40,046

Cumulative effects of changes
in accounting policies
Restated balance

Capitalsurplus

Valuation
Total
difference
Foreign
Remeasure- accumulated
Total
on available- Deferred Revaluation currency
ments ofothershareholders' for-sale gains or losses reservetranslation defined benefit comprehenequity
securities
on hedges
for landadjustments
plans
sive income

Dividends from surplus
Net income
Purchase of treasury stock

CapitalsurplusRetainedearnings

Valuationdifference
Total
on availableshareholders' for-sale
equitysecurities

Treasurystock$191,408 $212,236 $378,403 $(49,988) $732,060 $378,441
-

-

5,513

-

5,513

-

191,408 212,236 383,916 (49,988) 737,573 378,441- (12,947)- (12,947)- 116,721- 116,721- (18,351) (18,351)-

Total
Foreign
Remeasure- accumulated
Revaluation currency
ments ofother
reservetranslation
definedcomprehenfor land adjustments benefit plans sive income

Deferred
gains orlosses onhedgesMinority
interests

Total net
assets$ - $47,624 $(5,830) $(4,343) $415,890 $32,711 $1,180,662
-

-

-

-

-

-

5,513

- 47,624 (5,830) (4,343) 415,890 32,711 1,186,175- (12,947)- 116,721- (18,351)

Reversal of revaluation reserve
for land

-

-

4,576

-

4,576

-

-

-

-

-

-

-

4,576

Other

-

-

-

-

-

-

-

-

-

-

-

-

-

Net changes of items
other than shareholders' equity

-

-

-

-

- 245,199

27

2,453

6,165

5,103 258,949 (12,376) 246,572

Total changes of items
during the period-- 108,350 (18,351) 89,998 245,199

27

2,453

6,165

5,103 258,949 (12,376) 336,571$27 $50,077$335$759 $674,840 $20,334 $1,522,747

Balance at March 31, 2015

$191,408 $212,236 $492,267 $(68,340) $827,572 $623,640

See accompanying notes to consolidated financial statements.

See accompanying notes to consolidated financial statements.

17

2015_TODA Corporate Report

2015_TODA Corporate Report18Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Toda Corporation and consolidated subsidiaries - For the years ended March 31, 2014 and 2015

Millions of yen

Net cash provided by (used in) operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Increase (decrease) in net defined benefit asset
Increase (decrease) in other provision
Gain on negative goodwill
Loss on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Interest and dividend income
Interest expenses
Decrease in notes and accounts receivable-trade
Decrease (increase) in costs on uncompleted construction contracts
Decrease in real estate for sale
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received on uncompleted construction contracts
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

Toda Corporation and Consolidated Subsidiaries
Thousands of
U.S. dollars

2014

2015

2015

¥ 11,041
1,875
684
27
(478)
(21,356)
21,824(5,128)(133)
139(4,159)(474)(2,201)855
41,009(2,445)3,470(37,952)
3,078
1,739
11,416
2,204
(863)
(586)
12,171¥ 15,107
1,667
802
(435)
(245)
(1,444)(6,898)(480)(1,051)(294)(2,514)902
3,237
11,828
1,663(10,697)(10,715)(1,614)(1,183)
2,515(892)(1,386)(947)$ 125,715
13,874
6,677(3,621)(2,045)(12,022)(57,407)(3,998)(8,750)(2,446)(20,922)
7,506
26,94098,433
13,840(89,018)(89,167)(13,437)(9,849)20,929(7,428)(11,537)(7,886)(193)707(1,626)
3,119
(411)
(475)
10,117(71)
78
196
11,441(200)
193(2,439)1,845(525)(3,124)
6,013
(1)
232
(11)
1,982

(1,668)
1,613(20,300)
15,360(4,376)(26,000)
50,045
(8)
1,932
(99)
16,498Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Decrease in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Purchase of treasury stock
Payment for purchase of treasury stock by consolidated subsidiaries
Other, net
Net cash provided by (used in) financing activities(2,812)(11,000)
8,865(2,910)(1,556)
(19)
(19)
(715)
(79)
(10,248)(7,236)24,470(16,459)(1,555)(17)(2,205)(1,494)(75)(4,576)(60,222)
203,628(136,971)(12,947)(145)(18,351)(12,437)(632)(38,080)

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 9)680
14,04548,01562,061725(2,815)62,061
59,245

6,038(23,430)
516,447
493,017

See accompanying notes to consolidated financial statements.

19

2015_TODA Corporate Report

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") areprepared 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 to readers
outside Japan.
These modifications have no effect on total assets, net sales, retained
earnings or net income.

(U.S.Dollar Amounts)
The U.S.dollar amounts are included solely for convenience and have beentranslated, as a matter of arithmetical computation only, at the rate of ¥120.17= US$1, the exchange rate prevailing on the Tokyo foreign exchange market on
March 31,2015, and have been then rounded down to the nearest thousand. Thistranslation 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 accountsof Toda Corporation and 14subsidiaries, namely Toda Road Co., Ltd., Toda
Bldg. Partners Co., Ltd., Chiyoda Kenkou Co., Ltd.,Chiyoda Staff Service
Co., Ltd., APEC Engineering Co., Ltd., Toda Finance Co., Ltd., Towa Kanko
Kaihatsu Co., Ltd.,Toda America, Inc., Construtora Toda do Brasil S/A, Toda
Construction(Shanghai)Co.,Ltd., Thai Toda Corporation Ltd., Toda Vietnam Co.,
Ltd., ABTD, INC. and Toda Philippines, INC.
Other subsidiaries were not consolidated, as they were not significant interms of the effect on total assets, net sales, net income or retained earningsof the consolidated financial statements.
2) Application of the equity method
All non-consolidated subsidiaries and affiliates were not accounted for using
the equity method, as these companies were not significant in terms of
the effect on net income or retained earnings of the consolidated financial
statements.
3) Fiscal year of consolidated subsidiaries
Of the consolidated subsidiaries, Toda America, Inc., Construtora Toda do
Brasil S/A, Toda Construction (Shanghai)Co., Ltd., Thai Toda Corporation Ltd.,
Toda Vietnam Co., Ltd., ABTD, INC. and Toda Philippines, INC. close their fiscal
year on December 31 each year.
In preparing the consolidated financial statements, the Company usedfinancial statements as of December 31 of all these subsidiaries.
However, adjustments necessary for the purpose of consolidation havebeen made for fiscal year-end.
The fiscal year-end of all other consolidated subsidiaries is the same as
the consolidated fiscal year-end.
4) Standards and evaluation methods for important assets(a) Short term investment securities and investment securities
Held-to-maturity debt securities
Amortized cost method (straight-line method)
Available-for-sale securities• Securities with a fair value:
Stated at fair value, determined by the market price at the consolidated
fiscal year-end date (the difference between the book value and thefair value is recorded as a component of net assets, while the cost of
securities sold is computed using the moving-average method)• Securities with no fair value:
Stated at cost, determined by the moving-average method(b) Inventories
Costs on uncompleted construction contracts
Stated at cost, determined by the specific identification cost method
Real estate for sale
Stated at cost, determined by the specific identification cost method (Thebook value on the consolidated balance sheets is presented after writedown for decline in profitability.)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 straight-line
method is used for buildings (excluding building fixtures) acquired on andafter April 1, 1998.
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 iscomputed using the straight- line method based on the estimated useful life.
(c) Lease assets
Leased assets under finance leases other than those that are deemed totransfer ownership to lessees
Depreciation is based on the straight-line method over the lease termof 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 for completed construction
To cover expenses for defects claimed concerning completed work, this isprovided based on the estimated amount of compensation in the future forthe work completed during the consolidated fiscal year.
(d) Provision for loss on construction contracts
The provision for loss on construction contracts is provided at the estimatedamount for the future losses on contract backlog at the 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 andsubsidiaries' directors, the provision is provided at the amount to be paid according
to internal regulations if they had retired at the consolidated fiscal year-end.
(f) Provision for loss on litigation
The provision for loss on litigation is provided at the estimated amount fora possiblefuture loss arising from litigation.
(g) Provision for loss on liquidation of subsidiaries and affiliates
The provision for loss on liquidation of subsidiaries and affiliates isprovided at the estimatedamount for a possible future loss arising from liquidation.

2015_TODA Corporate Report207) Accounting Policies of retirement benefits
The provision for retirement benefits for 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 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 ofservice based on the benefit formula.
Actuarial differences are amortized commencing the following year
after the difference is recognized primarily by the straight-line method over a
period of five years.
Prior service cost is amortized by the straight-line method over a periodof five years.
8) Recognition of net sales from construction contracts
and related costs
The Companies apply the percentage of completion method to those contracts
in which the percentage of completion at the consolidated fiscal year-end canbe reliably estimated, and other contracts are recorded under the completed
contract method.
9) Translation of foreign currency assets and liabilities
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 aretranslated into Japanese yen at the exchange rate prevailing at the fiscal year-end.
Income and expense accounts of foreign consolidated subsidiaries aretranslated into Japanese yen at the average annual exchange rate.
The resulting translation adjustments are included in foreign currencytranslation 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 forwhich the swap contract were executed.
(b) Measure and objects
1. Measures: Forward foreign exchange contracts
Objects: Transactions to be paid in foreign currencies in cases ofoverseas construction of work and overseas procurement ofmaterials
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 rateand 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
consolidated fiscal year-end, the Companies have been assessing thehedge effectiveness primarily by comparing, in terms of variation amounts,(1)cumulative cash flow changes or exchange rate changes 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 exceptional treatment.
11) 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 andhighly liquid short-term investments with a maturity date within three months
after acquisition.

The effected of the adoption of these issued accounting standards was
included in retained earnings as cumulative effect of change in method of
accounting as of April 1, 2014 in accordance with transitional accounting
treatments provided in the issued accounting standards.
As a result of the adoption of these issued accounting standards, net defined
benefit assets increased by ¥851 million($7,087 thousand) , net defined benefit
liability decreased by ¥114 million($949 thousand) , and retained earnings increasedby ¥662 million($5,513 thousand) as of April 1, 2014. In addition, the effect of thischange on operating income, ordinary income and income before income taxes andminority interests for the year ended March 31, 2015 were immaterial. The effect of
this change on net assets per share as of March 31, 2015 was immaterial.

4. Accounting standards issued but not yet adopted(Accounting Standard for Business Combinaions)• Accounting Standard for Business Combinations (ASBJ Statement No.21 issued
on September 13, 2013)• Accounting Standard for Consolidated Financial Statements (ASBJ Statement
No.22 issued on September 13, 2013)• Accounting Standard for Business Divestitures (ASBJ Statement No.7 issued on
September 13, 2013)• Accounting Standard for Earnings Per Share (ASBJ Statement No.2 issued on
September 13, 2013)• Guidance on Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures (ASBJ Guidance No.10 issued on September
13, 2013)• Guidance on Accounting Standard for Earnings Per Share (ASBJ Guidance No.4
issued on September 13, 2013)21

2015_TODA Corporate Report1) Summary
These accounting standards and guidance have been revised with respect tothe treatm‑ent of changes in equity held by the parent company in subsidiaries
when control is retained, the treatment of acquisition-related expenses, andthe treatment of the disclosure of net income, changes in terminology fromminority interest to non-controlling interests and the finalization of tentative
accounting treatment related to the additional acquisition of shares insubsidiaries.
2) Planned date of adoption
These revisions are due to be applied from the biginning of the fiscal year
ending March 31,2016. The tentative accounting treatment described in thestandard is due to be applied to business combinations implemented after the
beginning of the fiscal year ending March 31, 2016.
3) Effect of adoption of the accounting standard
The amount of the impact was being evaluated at the time of preparing theaccompanying consolidated financial statements.

Thousands of
U.S. dollars

Millions of yen

As of March 31
1) Accumulated depreciation of property, plant and equipment
2) Investments in Non-consolidated subsidiaries and affiliates
included in investment securities
3) Assets pledged as collateral:
Short-term investment securities
Investment securities
Long-term loans receivable
Total4) Contingent liabilities (guarantee liabilities)
5) Loan commitment agreement:
Maximum limit under the agreement
Loan balance outstanding
Difference (unused portion)2014¥ 33,317

2015¥ 32,772

2015$ 272,721¥ 1,390¥ 1,445$ 12,031

637
597¥ 1,235
¥
210

235
397
509
¥ 1,141
¥
267

$
$

1,956
3,304
4,237
9,498
2,229

¥ 30,000¥ 30,000¥ 30,000¥ 30,000$ 249,646$ 249,646

6) 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.
7) Provision for loss on construction contracts included in costs on uncompleted construction contracts
Thousands of
U.S. dollars

Millions of yen

As of March 31
Costs on uncompleted construction contracts

2014¥ 4,136

2015
¥ 37

2015
$ 308

8) Change in holding purpose of assets

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

Millions of yen

2014

3. Change in accounting method
Effective the year ended March 31, 2015, paragraph 35 of "Accounting Standard
for Retirement Benefits" (ASBJ Statement No.26, issued on May 17, 2012) andparagraph 67 of "Guidance on Accounting Standard for Retirement Benefits " (ASBJ
Guidance No.25, issued on May 17, 2012) were adopted.
As a result of the adoption of these issued accounting standards, themethod for calculating retirement benefit obligation and service cost has beenrevised. The method for attributing projected benefits to periods has beenchanged from the straight-line basis to the benefit formula basis, and the methodfor determining the discount rate has been changed to use a single weightedaverage discount rate that reflects the periods until the expected payment of
retirement benefits and the amount of projected benefits every such period.

5. Notes to Consolidated Balance Sheets

Buildings and structures

-

2015
771

2015
6,418

Land

-

398

3,319

6. Notes to Consolidated Statements of Income
Thousands of U.S.
dollars

Millions of yen

For the years ended March 31
1) Provision for loss on construction contracts included in costs of sales
2) Valuation loss on real estate for sale included in costs of sales
3) Principal components of selling, general and administrative expenses:
Employees' salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision (reversal) of allowance for doubtful accounts
4) Research and development expenditures included in selling, generaland administrative expenses and construction costs5) Gain on sales of noncurrent assets:
Buildings and structures
Land
Other
Total
6) Loss on sales of noncurrent assets:
Buildings and structures
Land
Other
Total

2014
¥ 8,808¥16

2015¥ 2,719¥53

2015$ 22,633
$
445

¥

9,546
1,609
996
(453)

¥ 10,165
2,337
730
(24)

$ 84,592
19,451
6,081
(207)

¥

1,201

¥

1,066

$

8,871

¥

153
335
2
490

¥

0
284
22
307

$

8
2,367
187
2,562

¥
¥

¥

10
5
0
15

¥
¥

¥

0
13
0
13

$
$

$

1
113
0
115

2015_TODA Corporate Report228. Notes to Consolidated Statements of Changes in Net Assets

7) 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.

Number of shares
For the fiscal year ended March 31, 2014

Class of shares

Issued stock
Treasury stock

Common stock
Common stock

For the fiscal year ended March 31, 2015

Class of shares

The recoverable value is mainly the net sale value. The net sale value is computed by withholding the cost of disposal from the sale value.
Impairment of goodwill is caused by business environment and yieldability of APEC Engineering Co., Ltd.,

Issued stock
Treasury stock

Common stock
Common stock

For the fiscal year ended March 31, 2015

For the fiscal year ended March 31, 2014

Class of shares

Total Dividends

Dividends per share

Record date

Effective dateCommon stock¥1,556million¥5.00

March 31, 2013

June 28, 2013

Common stock¥1,555million¥5.00

March 31, 2014

June 30, 2014

Class of shares

Total Dividends

Dividends per share

Record date

Effective date

¥ 5.00March 31, 2014

June 30, 2014

¥ 7.00March 31, 2015

June 29, 2015

For the fiscal year ended March 31, 2014
Location

PurposeType

Impairment loss
(Millions of Yen)

Kasukabe City, and other

Business property

Buildings, structures and land

¥396

-

-

Goodwill¥288

April 1, 2013

322,656,796
11,418,734

Increase

Decrease

63,355-

March 31, 2014

322,656,796
11,482,089

Number of shares
April 1, 2014

322,656,796
11,482,089

Increase

Decrease

4,038,545-

March 31, 2015

322,656,796
15,520,634

Number of shares
Location

Chuo Ward , Tokyo,
and other

PurposeType

Impairment loss
(Millions of Yen)

Impairment loss
(Thousands of U.S. dollars)

Rental locations

Buildings, structuresand land¥802$6,677

The recoverable value is mainly the net sale value. The net sale value is computed by withholding the cost of disposal from the sale value.

June 27, 2013 resolution by annual
general meeting of shareholders
June 27, 2014 resolution by annual
general meeting of shareholders

Number of shares
For the fiscal year ended March 31, 2015

June 27, 2014 Resolution by Annual
Common stock
General Meeting of Shareholders

7. Notes to Consolidated Statements of comprehensive income
Thousands of U.S.
dollars

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:
Accrual
Revaluation reserve for land:Tax effectRevaluation reserve for landRemeasurements of defined benefit plans:
AccrualReclassification
Before adjust tax effectTax effectRemeasurements of defined benefit plans
Total of other comprehensive income

23

2015_TODA Corporate Report

2014

2015

2015

¥ 12,344(4,126)8,217(2,794)¥ 5,423¥ 40,934(1,051)
39,882(10,415)¥ 29,467$ 340,638(8,750)331,887(86,671)$ 245,216

¥

¥

$

¥

15
(17)
(2)
0
(1)

¥

¥

¥

8
(3)
4
(1)
3

$

67
(25)
41
(13)
27

948

¥

867

$

7,219

-

¥
¥

844
844

$
$

7,029
7,029

6,370

¥

1,076
(287)
789
(175)
613
¥ 31,796$

8,956(2,389)6,566(1,463)
5,103$ 264,596

June 26, 2015 Resolution by Annual
Common stock
General Meeting of Shareholders¥ 1,555million($12,947thousand)¥ 2,149million($17,890thousand)9. 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:

2014

2015

2015

Cash and deposits of the consolidated balance sheets(Less) time deposits with maturities of more than three months
Short-Term investment securities
Current assets: Other
Cash and cash equivalents of the consolidated statements of cash flows¥ 44,296(235)
18,000¥ 62,061¥ 43,488(241)
10,0005,999¥ 59,245$ 361,887(2,012)
83,21549,926$ 493,017

10. Lease Transactions
Thousands of
U.S. dollars

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

2014

2015

2015
$

¥ 128
173
¥ 302

¥

94
153
¥ 248

788
1,278
$ 2,067¥ 1,869
5,724¥ 7,594¥ 2,195
5,629¥ 7,824$ 18,272
46,843$ 65,115

2015_TODA Corporate Report2411. Fair value of Financial Instrument

12. Marketable Securities and Investment Securities
Held-to-maturity debt securities:

Millions of yen

As of March 31, 2014
(1) Cash and deposits(2) Notes and accounts receivable - trade(3) Short-term investment securities,
investment securities (Note)(4) Long-term loans receivable
Assets total

Book value(1) Notes and accounts payable - trade(2) Short-term loans payable(3) Income taxes payable(4) Long-term loans payable
Liabilities total
Derivative transactions

Fair value

Millions of yen

Difference¥ 44,296
124,056¥ 44,296
124,035(20)

156,532

156,693160

935¥ 325,821

983¥ 326,009

48
¥ 187

As of March 31, 2014
Securities with a fair value that exceeds
the book value
Securities with a fair value that does notexceed the book value
Total¥ 117,656
52,353798
13,206¥ 184,015-¥ 117,656
52,353798
13,214¥ 184,022-¥

Available-for-sale securities with a fair value:

¥ 7
¥ 7
-

Unlisted stocks
Millions of yen

¥ 109
221
1,055

¥ 2,921

¥ 160

339

339

(0)

¥ 3,101¥ 3,261¥ 160

Book value

Acquisition cost

Difference¥ 123,145
1,065
124,211¥ 52,236
1,002
53,239¥ 70,909
62
70,972

11,17050
18,00029,220¥ 153,431

11,71850
18,00029,768¥ 83,007

(547)
(547)
¥ 70,424

Sales amount

Total gainon salesTotal loss
on sales¥ 8,096¥ 4,161¥2

Thousands of U.S. dollars

Book value

Fair value

DifferenceBook value

Fair value¥ 43,488
121,009¥ 43,488
120,939¥(70)$ 361,887
1,006,989$ 361,887
1,006,406

188,230

188,462232

1,566,370

1,568,302

1,931

765
¥ 353,494

818¥ 353,709

52
¥ 214

6,373
$ 2,941,622

6,812$ 2,943,409

439$ 1,787(1) Notes and accounts payable - trade(2) Short-term loans payable(3) Income taxes payable(4) Long-term loans payable
Liabilities total
Derivative transactions

107,216
32,597651
33,735¥ 174,201¥2

107,216
32,597651
33,790¥ 174,256
¥
2

54
¥ 54
¥ -

892,207271,262
5,423
280,732$1,449,625$
23

892,207271,262
5,423
281,189$1,450,082
$
23

457
$ 457
$
-

Unlisted stocks

2015_TODA Corporate Report

As of March 31, 2014
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

For the year ended March 31, 2014
Available-for-sale securities sold
Difference

$

(583)

Note: 1. The fair value of unlisted stocks is considered to be extremely difficult to calculate, as there are no market prices and no valuations of future cash flow.
Therefore, these stocks are not included in "Short-term investment securities and investment securities."
2. Long-term loans receivable are equivalent to the carrying amount after deduction of allowance for doubtful accounts.

25¥ 2,761

Millions of yen

As of March 31, 2015
(1) Cash and deposits(2) Notes and accounts receivable - trade(3) Short-term investment securities,
investment securities (Note)(4) Long-term loans receivable
Assets total

Stocks of non-consolidated subsidiaries and affiliated companies
which are not accounted for by the equity method:
Stocks of subsidiaries
Stocks of affiliated companies
Unlisted preferred equity securities
Other investment securities
Unlisted stocks
Unlisted preferred equity securities
Investments in silent pertnersships
OthersDifference

Note: The Companies recognized losses on write-down of ¥139 million for available-for-sale securities.

¥ 5,3852,303
9Millions of yen

As of March 31, 2015(stated at book value)

Fair value

Millions of yen

Note: 1. The fair value of unlisted stocks is considered to be extremely difficult to calculate, as there are no market prices and no valuations of future cash flow.
Therefore, these stocks are not included in "Short-term investment securities and investment securities."
2. Long-term loans receivable are equivalent to the carrying amount after deduction of allowance for doubtful accounts.

As of March 31, 2014 (stated at book value)
Stocks of non-consolidated subsidiaries and affiliated companies
which are not accounted for by the equity method:
Stocks of subsidiaries
Stocks of affiliated companies
Unlisted preferred equity securities
Other investment securities
Unlisted stocks
Unlisted preferred equity securities
OthersBook value

Millions of yen

Thousands of
U.S. dollars

¥ 109
281
1,055

$

907
2,343
8,779

¥ 5,384140500
9$ 44,810
1,166
4,160
81

Held-to-maturity debt securities:
Millions of yen

As of March 31, 2015
Securities with a fair value that exceeds
the book value
Securities with a fair value that does notexceed the book value
Total

Thousands of U.S. dollars

Book value

Fair value

DifferenceBook value

Fair value

Difference¥ 3,057¥ 3,292¥ 234$ 25,445$ 27,395$ 1,949

242

240

(2)

2,018

2,000

(17)

¥ 3,300¥ 3,532¥ 232$ 27,464$ 29,396$ 1,931

Book value

Acquisition cost

DifferenceBook value

Acquisition cost

Difference¥ 172,793
1,617
174,410¥ 62,494
1,529
64,024¥ 110,298
87
110,386$ 1,437,909
13,4591,451,368$ 520,051
12,730532,781$ 917,857
728
918,586519
10,00010,519¥ 184,930

598
10,00010,598¥ 74,623(79)(79)¥ 110,307

4,323
83,21587,538$ 1,538,906

4,982
83,21588,198$ 620,979

(659)
(659)
$ 917,927

Available-for-sale securities with a fair value:
Millions of yen

As of March 31, 2015
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

Thousands of U.S. dollars

Note: The Companies recognized no loss on write-down.
Write-down losses are recognized in each of following cases.
Case of securities with a fair value
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 securities without a fair value
Net worth of equivalent of Equity declines more than 50% compared to acquisition cost.

2015_TODA Corporate Report26For the fiscal year ended March 31, 2015
Available-for-sale securities soldMillions of yen

Thousands of U.S. dollars

Sales amount Total gain on sales Total loss on sales

Sales amount Total gain on sales Total loss on sales

3,286

1,051

-

27,3458,750-

For the year ended March 31, 2014
Derivative transactions to which the hedge accounting method is not applied:
None
Derivative transactions to which the hedge accounting method is applied:2014¥ 22,342
267
569
1,182
(2,067)¥ 22,293

The reconciliation of the defined benefit obligations and pension assets to the liabilities
and assets on retirement benefits recognized in the consolidated balance sheet(1) Currency-related transactions
None

Method of processing

Measures

Objects

Interest rate swaps
Payment fixed ,Receive floating

Contract amountMillions of yen
more than 1 year

¥ 3,960¥ 1,800

Long-term loans
payableEstimated fair value**These interest rate swaps, subject to the exceptional treatment are treated en bloc with the relevant long-term loans payable.
Therefore, the fair value of the contracts is included in the fair value of the relevant long-term loans payable.

(1) Currency-related transactions
Method of processing

Method in principle

Measures

Objects

Contract
amountMillions of yen
more than Estimated
1 yearfair value

Thousands of U.S. dollars
Contract more than Estimatedamount1 yearfair value

Forward foreignexchange contracts
Buy USD

Forecasted
purchasingtransaction

Total¥ 1,329¥ 17¥2$ 11,062

$ 145

$ 23

Net amount of liabilities and assets recognized in consolidated balance sheet
Net defined benefit liability
Net defined benefit asset
Net amount of liabilities and assets recognized in consolidated balance sheet

21,824¥ 21,824

21,466(2,296)¥ 19,170

178,637(19,109)$ 159,528¥ 1,329¥ 17¥2$ 11,062

$ 145

$ 23

(2) Interest-related transactions
Method of processing

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

Objects

Long-term loans
payableMillions of yen
Contract more than Estimatedamount1 yearfair value

Thousands of U.S. dollars
Contract more than Estimatedamount1 yearfair value¥ 4,360$ 36,281 $ 34,118¥ 4,100***These interest rate swaps, subject to the exceptional treatment are treated en bloc with the relevant long-term loans payable.
Therefore, the fair value of the contracts is included in the fair value of the relevant long-term loans payable.

14. Retirement Benefits
The Company had a defined benefit plan that consists of a defined benefit pension plan and a lump-sum benefit plan. Some of the foreign consolidated subsidiaries
have defined contribution plans. And the other consolidated subsidiaries have lump-sum benefit plans.
The schedule of the defined benefit obligation
As of April 1, 2014
Cumulative effects of changes in accounting policies
Restated balance
Service cost
Interest cost
Actuarial losses
Benefit paid
other
As of March 31, 201527

2015_TODA Corporate Report

Millions of yen

2014¥ 45,602
45,602
1,856
531
(177)
(3,696)1¥ 44,1182015¥ 44,118(965)
43,152
1,783
503
(229)
(3,251)
2¥ 41,960

Thousands of
U.S. dollars

2015$ 367,130(8,035)359,094
14,8394,189(1,906)(27,055)17$ 349,178

2014¥ 1,856
531
(267)
931
(296)
¥ 2,756

Service cost
Interest cost
Expected return on pension assets
Amortization of actuarial differences
Amortization of prior service costs
Retirement benefit costs
Remeasurements of defined benefit plans

Unrecognized remeasurements of defined benefit plans

Thousands of
U.S. dollars

Millions of yen

2015¥ 1,783
503
(267)
9
(296)
¥ 1,7312014¥ ¥ Millions of yen

Unrecognized prior service cost
Unrecognized actuarial (gain) loss
Total

2014
¥(296)
818
¥ 522

2015
¥
(267)
¥(267)The breakdown of pension assets by major category
Bonds
Equities
General account
other
Total

2014
21%
12%
64%
3%
100%

2015
25%
13%
61%
1%
100%

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

2014
1.20%
1.20%
5.60%

2015
1.20%
1.20%
5.60%

2015
$ 14,839
4,189(2,226)81(2,471)$ 14,412
Thousands of
U.S. dollars

Millions of yen

Prior service cost
Actuarial loss
Total

Estimated fair value was calculated based on price information provided by the counterparty financial institution.

Thousands of
U.S. dollars

Millions of yen

2015$ 349,178(189,650)
159,528
159,528

For the year ended March 31, 2015

Derivative transactions to which the hedge accounting method is applied:2015$ 185,520
2,226
7,050
9,856
(15,003)$ 189,650

2015¥41,960(22,790)
19,17019,170The breakdown of items in retirement benefit costs

Derivative transactions to which the hedge accounting method is not applied:
None

2015
¥ 22,293
267
847
1,184
(1,802)¥ 22,790

2014¥44,118(22,293)
21,824
21,824

Funded defined benefit obligations
Pension assets(2) Interest-related transactions

Thousands of
U.S. dollars

Millions of yen

As of April 1, 2014
Expected return on pension assets
Actuarial losses
Contributions by the employer
Benefit paid
As of March 31, 201513. Derivative Transactions

Exceptional treatment ofinterest rate swaps

The schedule of the pension assets

2015¥ (296)
1,086
¥ 789

2015
$ (2,471)
9,038$ 6,566

Thousands of
U.S. dollars

2015$(2,222)$(2,222)

2015_TODA Corporate Report28

15. Deferred Tax Accounting
The tax effects of temporary differences which gave rise to deferred
tax assets and liabilities at March 31, 2014 and 2015 are as follows:
As of March 31
Deferred tax assets:
Real estate for sale
Buildings and structures
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
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)

Millions of yen

2014

Thousands of
U.S. dollars

2015

2015

¥

296
1,378
2,187
727
1,019
5,523
7,593
20,493
2,946
42,167(41,885)
¥
282

¥

293
1,319
1,211
461
1,299
2,456
6,875
18,1142,323
34,355(33,939)
¥
416

$

2,442
10,976
10,083
3,840
10,817
20,44057,215
150,741
19,335285,894(282,425)$
3,468(24,940)(202)(25,142)¥ (24,860)(35,356)
(741)
(166)
(36,264)¥ (35,847)(294,217)(6,172)(1,387)(301,777)$ (298,309)

In addition to the above, the Companies recognized deferred tax liabilities of ¥9,418million and ¥8,268million(US$68,808 thousand) related to revaluation reserve for land at March 31, 2014 and 2015, 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
Gain on negative goodwill
Inhabitant taxes (per capita levy)
Valuation allowance
Other
Effective tax rate

2014
38.0%
4.5%
-8.4%
-0.5%
2.3%
-30.5%
-0.5%
4.9%

2015
35.6%
3.1%
-2.5%
-1.1%
1.6%
-30.3%-1.7%
4.7%

2) Acquisition of treasury stock by consolidated subsidiary(a) Summary of transactiona) Name of the parties of the transaction and their businesses
Company nameToda Bldg. Partners Co., Ltd.

Business
Real estate management, construction and insurance agencyb) Date of the business combination
July 30, 2014c) Scheme of the business combination
Acquisition of additional shares of subsidiary from minority interests by consolidated subsidiaryd) Name of the company after transaction
No changee) Other information related to the summary of transaction
Toda Bldg. Partners Co., Ltd. which is one of the Company’s consolidated subsidiaries purchased its treasury stock with the aim of enabling the execution of aflexible capital policy responding to the changes in its business environment.
(b) Accounting for the transaction
The transaction was accounted as transaction under common control in accordance with ASBJ Statement No.21, "Accounting Standard for Business Combinations"and ASBJ Guidance No.10, "Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures"(both issued by ASBJ
on December 26, 2008).
(c) Acquisition of additional shares of subsidiarya) Detail of acquisition cost
Millions of yen

Value of the acquisition
Acquisition cost

Cash and deposits

Thousands of U.S. dollars¥ 1,494¥ 1,494¥ 12,438¥ 12,438b) Amount of gain on negative goodwill and cause of gain on negative goodwill
Amount of gain on negative goodwill¥461 million ($3,838 thousand)Cause of gain on negative goodwill
Gain on negative goodwill arose from the acquisition of additional shares of the subsidiary as the difference between the acquisition cost and the resulting
decrease in minority interents.

17. Investment and rental properties
Millions of yen

As of March 31,2014
Real estate for rentBook Value

Fair Value¥ 49,103¥ 69,437

As of March 31,2015
Real estate for rentBook Value

Fair ValueBook Value

Fair Value¥ 49,234¥ 80,751$ 409,710$ 671,978

Total

Adjustments

Consolidated¥¥ 448,987
448,987¥ 4,782¥ 1,875¥
27

Millions of yen

16. Business Combination (Transaction under common control)
1) Business combination of Chiyoda Tochi Tatemono Co., Ltd. and Toda Reform Co., Ltd..
(a) Summary of transactiona) Name of the parties of the transaction and their businesses

18. Segment Information

Continuing company

Millions of yen

Company nameBusiness

Chiyoda Tochi Tatemono Co., Ltd.

Real estate management and insurance agency

Merged company
Company nameBusiness

Toda Reform Co., Ltd.

Constructionb) Date of the business combination
April 1, 2014c) Scheme of the business combination
Absorption-type Merger: Chiyoda Tochi Tatemono Co., Ltd. is the continuing company and Toda Reform Co., Ltd. is the merged company.
d) Name of the company after transaction
Toda Bldg. Partners Co., Ltd.
e) Purpose of the transaction
To improve general building management technology by enhancement of business competitiveness and management foundation, while the Companies aim toenhance building aftercare management business which accompanies our construction business.
(b) Accounting for the transaction
The transaction was accounted as transaction under common control in accordance with ASBJ Statement No.21, "Accounting Standard for Business Combinations"and ASBJ Guidance No.10, "Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures"(both issued by ASBJ
on December 26, 2008).

29

2015_TODA Corporate ReportThousands of U.S. dollars

For the year ended
March 31, 2014

Building
construction

Reporting segments
Civil
Real estateEngineering

Net sales:
Customers
Inter-segment
Total
Segment profit (loss)
Depreciation and amortization
Amortization of goodwill¥ 345,277
1,283
346,560
¥
787
¥
872
¥
27

¥ 89,145
1,523
90,669¥ 2,535¥135¥-¥ 14,006
1,956
15,962¥ 1,496
¥
853
¥
-

Other

¥

¥
¥
¥

557
525
1,082
6
13
-

¥ 448,987
5,287
454,275¥ 4,826¥ 1,875¥27(5,287)(5,287)
¥
(44)
¥
¥
-

2015_TODA Corporate Report30For the year ended March 31, 2014
Not applicable

Millions of yen

For the year ended
March 31, 2015

Building
construction

Reporting segments
Civil
Real estateEngineering

Net sales:
Customers
Inter-segment
Total
Segment profit (loss)
Depreciation and amortization
Amortization of goodwill¥ 313,453
902
314,355¥ 9,020¥807¥-¥ 94,854
886
95,741¥ 3,051¥
117¥-¥ 11,485
1,566
13,051
¥
984
¥
728
¥
-

Other

¥

¥
¥
¥

531
475
1,007
(14)
13
-

Total

¥ 420,324
3,830
424,155¥ 13,041¥ 1,667¥-

Adjustments

Consolidated¥¥ 420,324
420,324¥ 12,978¥ 1,667¥-(3,830)(3,830)
¥
(62)
¥
¥
-

For the year ended March 31, 2015
Category

Officer
Hideshige(equivalent
Toda
to officer)
and his close Hidehiro
Toda
familyBuilding
construction

Civil
Engineering$ 2,608,413
7,507
2,615,920$
75,061$
6,722$-$ 789,333
7,379
796,713$ 25,390$
979$-

Real estate$

95,57813,032
108,610
$
8,194
$
6,061
$
-

Other

$

$
$
$

4,422
3,959
8,381
(121)
110
-

Total

$ 3,497,748
31,8783,529,626$ 108,524$ 13,874$-

Consolidated$$ 3,497,748(31,878)(31,878)
$
(520)
$
$
-

3,497,748$ 108,003$ 13,874$-

The Companies operate in the following four reporting segments:
Building Construction………Research, planning, design, management and execution of building construction work, and architectural and comprehensive engineeringand consulting related thereto
Civil Engineering….......……Research, planning, design, management and execution of civil engineering work, such as tunnel construction, and architectural andcomprehensive engineering and consulting related thereto
Real estate…...............……Resale, rent and intermediating of real estate and building management
Other business……..........…Worker dispatching and hotel business, and financing and leasing mainly for the group companies

19. Related Party Transactions

For the year ended March 31, 2014

Main
shareholder

Address

DaiichiChuo-ku
ShokusanTokyo*1Co.,Ltd.

Capital or
Investment(Millions of Yen)

12

Type of Business

Percentage ofvoting rights held
(Held by others)

Relationship

Nature ofTransaction

Type of Business

Percentage ofvoting rights held
(Held by others)-

Relationship-adviser(former director)

Direct:(4.79%)--

Oldest son ofHideshige Toda

Direct:(1.96%)-Nature ofTransaction

Millions of Yen

Thousands of
U.S. Dollars

Account Millions of Yen

Amounts of Transaction

Account

Millions of Yen

Rental ofland*2
Real estate Direct: interlocking
business (11.77%) directors Purchase of golf
membership

Balance at the end of the year

Acquisition oftreasury stock*1¥831¥6,918---Acquisition oftreasury stock*1¥1,073¥8,930---CategoryMainshareholder

RelatedParty

Address

DaiichiChuo-ku
ShokusanTokyo
Co.,Ltd.*1

Capital or
Investment(Millions of Yen)

12

Type of Business

Percentage ofvoting rights held
(Held by others)

RelationshipAmounts of Transaction

Nature ofTransaction

Account

Balance at the end of the year

Millions of Yen

Consolidated
subsidiary's stockacquisition *2
Real estate Direct: interlocking
Acquisitionbusiness (11.77%) directors
priceGain on negative
goodwill

Millions of Yen

¥715

-

-

¥133

-

-

*1 51.4% of voting rights are held by our director and his close family.
*2 Trading price is decided by accordance with fair appraisal prices and consultation between both parties.
For the year ended March 31, 2015
Category

RelatedParty

Address

DaiichiChuo-ku
ShokusanTokyo*1Co.,Ltd.

Capital or
Investment(Millions of Yen)

12

Type of Business

Percentage ofvoting rights held
(Held by others)

Real estate Direct:
business (11.77%)

Relationship

Nature ofTransaction

Amounts of Transaction
Thousands of
U.S. Dollars

Account¥1,494 ¥12,437

-

-

-

-

-

-

Millions of Yen

Consolidated
subsidiary's stockacquisition *2
interlocking
Acquisition
directors
priceGain on negative
goodwill¥461

Balance at the end of the year
Thousands of
U.S. Dollars

Millions of Yen¥3,837*1 64.5% of voting rights are held by our officer(equivalent to officer) and his close family.
*2 Trading price is decided by accordance with fair appraisal prices and consultation between both parties.

Millions of Yen

¥ 21

-

-

¥ 55

-

-

*1 51.4% of voting rights are held by our director and his close family.
*2 About rental lands, the rental charge is decided by vicinal state.
*3 About accept golf membership, trading price is decided by trader's quoting prices and considering normal market prices.

20. Per share information
As of March 31
Net assets per share of common stock
Net income (loss) per share of common stock

Yen

2014
¥ 443.32
32.87

U.S. dollars

2015¥ 587.83
45.42

Main
shareholder

RelatedParty

Address

DaiichiChuo-ku
ShokusanTokyo*1Co.,Ltd.

Capital or
Investment(Millions of Yen)

12

Type of Business

Percentage ofvoting rights held
(Held by others)

RelationshipReal estate Direct: interlocking
business (12.55%) directors

Nature ofTransaction

Purchaseof land*2

Amounts of Transaction
Thousands ofMillions of Yen
U.S. Dollars¥820*1 64.5% of voting rights are held by our officer and his close family.
*2 Purchase amount of the land was determined considering the valuations of independent real-estate appraisers.

¥6,823

Account-

Balance at the end of the year
Thousands ofMillions of Yen
U.S. Dollars--

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

2014

2015_TODA Corporate Report2015$ 1,522,747
20,334$ 1,502,412

shares¥ 10,228¥ 14,026¥ 10,228¥ 14,026
311,205,385 308,810,907
shares31

2015¥ 141,880¥ 182,988
3,930
2,443
¥ 137,949¥ 180,544
311,174,707 307,136,162
sharesBasis for calculation of net income (loss) per share:
Net income (loss)
Net income (loss) attributable to common stock
Average number of shares of common stock outstanding during the fiscal year2015
$ 4.891
0.377
Thousands of
U.S. dollars

Millions of yen
For the year ended March 31, 2015
Category

Thousands of
U.S. Dollars

For the year ended March 31, 2014

Main
shareholder

1. Related party transactions between the Corporation and related parties
Parent Company and major shareholders (Company, etc. only), etc., of the Corporation
Related
Party

Capital or
Investment(Millions of Yen)

2. Related party transactions between subsidiaries and related parties
Parent Company and major shareholders (Company, etc. only), etc., of the Corporation

Adjustments

Adjustments of segment profit (loss) is negative ¥44million and negative ¥62million (US$520 thousand) elimination of intersegment transactions.
Segment profit (loss) is adjusted in accordance with operating income as recorded in the consolidated statements of income.

Category

Address*1 The Company purchased through an off auction treasury stock trading at Tokyo Stock Exchange, Inc. (ToSTNeT-3) on August 11, 2014 at 547 yen which
was the closing price (including the final special bid and asked price) based on the resolution of the Board of Directors’ meeting held on June 25, 2014.

Thousands of U.S. dollars

For the year ended
March 31, 2015
Net sales:
Customers
Inter-segment
Total
Segment profit or loss
Depreciation and amortization
Amortization of goodwill

RelatedParty$ 116,721$ 116,721

shares2015_TODA Corporate Report32Independent Auditor’s Report
Toda Corporation and Consolidated Subsidiaries

Corporate Information(As of March 31, 2015)
Company NameTODA CORPORATION

Company Headquarters

7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8388, JapanFoundedJanuary 5, 1881

Stock Listings

Tokyo Stock Exchange

Capital Stock¥23.0 billion

Number of Employees

4,817 (Consolidated)
3,861 (Non-consolidated)
1. Research, planning, design, management and execution associated with all aspects of architecturaland civil engineering together with related comprehensive engineering and consulting

Areas of Business

2. Research, planning, design, management and execution associated with local development, urban
development and other comprehensive engineering and consulting
3. Real estate sale and purchase, rental, intermediary services, management and appraisal

History
1881

Foundation: Toda-kata Construction is founded by Rihei Toda, who becomes its first president.

1908

Company changes its name from Toda-kata to Toda-gumi.

1914

Company participates in the construction of facilities for the Taisho Exhibition held in Tokyo .

1936

Incorporation: Company is reorganized as Toda-Gumi Co., Ltd.

1963

Company changes its name to the Toda Corporation.

1969

The company’s stock is listed on the Tokyo Stock Exchange.

1970

Company builds nine pavilions, including the Swiss pavilion, for Expo ‘70 in Osaka.

1981

Company celebrates its centennial.

1988

Company participates in the construction of the Pacific Convention Plaza Yokohama, Japan’s first building project involving
foreign contractors (completed in 1991).

1994

Toda announces its Global Environment Charter.

1995

Toda becomes Japan’s first general contractor to acquire ISO 9001 certification.

1999

Toda acquires ISO 14001 certification.

2000

Toda becomes Japan’s first company to achieve zero emissions at construction sites.

2003

Toda announces its Charter of Corporate Behavior.

2005

Toda introduces an executive officer system.

2010

Toda is certified as an "Eco-First" company.

2013

Toda acquires ISO 27001 certification.

2015

The Toda Group Global Vision is unveiled.

* See p. 12 for the overseas timeline.

33

2015_TODA Corporate Report

2015_TODA Corporate Report34

7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8388, Japan
Phone: +81-3-3535-1591 Fax: +81-3-3561-5745

CONSTRUTORA TODA DO BRASIL S.A.
Rua Manuel da Nobrega, 1280-3° Andar. São Paulo, Brasil
Phone: +55-11-3886-5844
THAI TODA CORPORATION LTD.
199 Column Tower 20th Floor, Ratchadapisek Road, Klongtoey, Bangkok 10110, Thailand
Phone: +66-2-261-6544 Fax: +66-2-261-6545
TODA VIETNAM CO., LTD.
10th Floor, Star Building, 33ter-33bis Mac Dinh Chi Street, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam
Phone: +84-8-6291-4127 Fax: +84-8-6291-4126
TODA AMERICA, INC.
600 Townsend Street, Suite 115W, San Francisco, CA 94103, U.S.A.
Phone: +1-415-800-8054 Fax: +1-415-932-6198

Photograph of the Cover
Waseda University
Waseda Campus, Building No. 3

1,379
Paper used in this report is produced using fiber sourced from well-managed forests and other forests where
unacceptable sources have been excluded, as defined by the Forest Stewardship Council.
Printed using 100% vegetable oil inks made from plants containing no volatile organic compound.
The CO2 emitted during manufacturing processes is offset by investments in actions that reduce such emissions.

TODA Corporate Report

2015
Year ended March 31, 2015