Results Briefing
for the Second Quarter Ended September 30, 2014

November 14, 2014

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

2Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Progress in Implementation ofManagement Plan
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

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

5

Highlights: FY2014 2Q
 Consolidated Net Sales: ¥187.8 billion, down 9.8% year-on-year： Net sales fell 9.8% year-on-year to ¥187.8 billion, as completedconstruction contracts at the Company and overseas subsidiaries
declined Operating Income: ¥6.8 billion, up 15.5% year-on-year： Operating income rose 15.5% to ¥6.8 billion, despite an increase
in selling, general and administrative expenses, as theimprovement in gross profit on completed construction
contracts due to reinforcement of profitability-oriented order
receipt policy contributed.

 Orders Received (non-consolidated): ¥220.9 billion, down
30.4%year-on-year： Orders received declined 30.4% to ¥220.9 billion reflecting theimpact of the order for the large-scale project the Company
received last year in architectural construction, while orders for
public sector road projects in civil engineering increased.

6Summary:FY2014 2Q(Billions of yen)

Apr-Sep FY2014
Apr-Sep
FY2013
Consolidated
net sales

Forecasts(announcedon Aug 7,2014)

Actuals

Change(year onyear)

Difference(vs. forecast)

208.3

199.0

187.8

-9.8%

-11.1

Operatingincome

5.8

4.1

6.8

15.5％

2.7

Ordinary income

6.6

4.9

7.6

14.9%

2.7

Net income

11.1

5.3

7.9

-28.4%

2.6

317.6

175.0

220.9

-30.4%

45.9

Orders received(Non-consolidated)7

Main Orders Received
Ordering Parties
Architectural
Construction

CivilEngineering

Name of Works

The Kitasato InstituteRebuilding of School of Pharmacy Building and Kitasato
Main Building, Shirokane Campus, the Kitasato Institute

Aichi Prefectural Government

Aichi High School of Technology and Engineering

Kojiya Station Area Urban
Redevelopment AssociationKojiya Station area urban redevelopment project

Takasaki City

New gymnasium

Kenseikai

Tachikawa sogo Hospital

Central Nippon Expressway Company
LimitedMain line tunnel, Tokyo Outer Ring Road

East Nippon Expressway Company
LimitedTenjindo Tunnel, Joshin-etsu Expressway

West Nippon Expressway Company
LimitedMinoh Interchange, Shin-meishin Expressway

Tohoku Regional Development
Bureau,Ministry of Land,
Infrastructure andTransport

Ryoishi area, National Road 45*Honorific prefixes are omitted. Work names are abbreviations.

8Main Works Completed
Ordering Parties
ArchitecturalConstruction

CivilEngineering

Name of Works

Japan Post Co., Ltd.

Omiya Sakuragi-cho 1-chome project

Otsuma Gakuin

Reconstruction of Chiyoda school building

FCH Partners

Fukuoka City Hospital (Children’s Hospital)

Akihabara Radiokaikan

New construction of Akihabara Radiokaikan

Urban Redevelopment Association

Redevelopment of Ichiban-cho 2-chome 4 District

Central Nippon Expressway
Company Limited

Nukata Tunnel +1, Shin tomei Expressway

Bureau of Waterworks, Tokyo
Metropolitan Government

Advanced Water Treatment Facility Phase II, AsakaPurification Plant

West Nippon Expressway Company
LimitedTokushima Interchange, Shikoku Odan Expressway

Sendai City Transportation Bureau

Sendai City Rapid Transit Railway East-West Line Renbo
Section*Honorific prefixes are omitted. Work names are abbreviations.

91-2. Details of Financial Results

10(Consolidated) Toda Group
Business

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/AChiyoda Kenkou Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

Construction

ArchitecturalConstruction

14 companies

8companies

Thai Toda Corporation Ltd.
Toda Vietnam Co., Ltd.
TODA Philippines, Inc.

CivilEngineering

Real Estate

1company

Toda Road Co., Ltd.

Toda Bldg. Partners Co., Ltd.

ABTD, inc.

Toda America, Inc.

2
companies

Toda Finance Co., Ltd.
Other

Chiyoda Staff Service Co., Ltd.

3
companies

Towa Kanko Kaihatsu Co., Ltd.

11

(Consolidated) Summary of Group Performance
Apr-Sep FY2014

Toda Corporation

Billions of yen%Net sales

172.5

Gross profit

15.6

Selling, general andadministrative expenses
Operating income
Non-operating income
Ordinary income

Subsidiaries total

9.3
6.2

2.1

3.6

0.7

9.5

0.9

17.6

3.3

6.8

4.07.6

0.1

- 0.2

0.8

Income before income taxes

7.1

0.7

8.5

0.0

0.2

0.5

Net income

7.0

4.1

0.4

1.09
9.4

1.13

3.6

1.09

4.1

1.10

4.2

1.13

0.8

Extraordinary income

Income taxes

Ratio ofconsolidated
results
to nonconsolidated
Results

10.8

0.1
4.0%

187.8

1.4

0.7
6.9%

22.7
9.1

Consolidated

1.9

7.912

(Consolidated) Statements of Income
Apr-Sep FY2013(actual)Apr-Sep FY2014(actual)％％Billions of yen
Net sales

208.3

Gross profit

15.6

Selling, general andadministrative expenses
Operating income
Non-operating income
Ordinary income

187.8
7.5

9.7
5.8

9.4

2.8

6.8

7.6

％

-9.8

413.0

12.7

32.3

3.6

15.5

8.7

4.1

14.9

10.3

4.6

0.8

0.6

Income before income taxes

11.2

8.5

10.9

0.1

0.5

0.4

Net income

11.1

5.3

7.9

2.1

1.6

Extraordinary income

Income taxes

7.8

23.6

0.8
3.2

FY2014(Forecast)

％

10.8

0.7
6.6

17.6

Changes

4.2

-28.4

10.5

*FY2014 forecasts are the figures revised this time

2.5

2.5
13

(Consolidated) Net Sales and Operating Income by Segment
Net Sales
Architectural Construction
Civil Engineering
Real Estate and Other(Billions of yen)

500

Operating Income

208.3

187.8

(Billions of yen)

413.0

12.2
400

10.0

Architectural Construction
Civil Engineering
Real Estate and Other

5.8

8.0

300

6.0
Real Estate
and Other

9.3
CivilEngineering

43.6

100

Architectural
Construction

6.8
43.2

ArchitecturalConstruction

400.8

139.3

Apr-Sep
FY2014

Real Estateand Other

5.0

1.0

4.0

CivilEngineering

2.3

1.1

2.0

Architectural
Construction

1.0

3.7

0.0
Apr-Sep
FY2013

0.5

Total
8.7

3.0

157.7
0

8.7

9.07.0200

6.8

FY2014(forecast)

Apr-Sep
FY2013

3.9

Apr-Sep
FY2014FY2014(forecast)14

(Consolidated) Breakdown of Net Income Increase(Billions of yen)

Gain on sales of investment
securities-3.8

Extraordinary income (loss)
- 3.8

1412

Income taxes -0.2

Gross profit
+2.0

1086

SG&A-1.1

Other-0.4

Apr-Sep FY2013 15.6
Apr-Sep FY2014 17.6

11.1

4

7.9

20
Apr-Sep
FY2013Apr-Sep
FY201415

(Consolidated) Change in SG&A
Consolidated(Billions of yen)

Non-consolidated

5.8%

30

SG&A ratio

5.7%(consolidated)

6.0%

4.7%
23.6
2020.5

109.7

0

10.8
8.5

Apr-Sep FY2013

4.0%

2.0%
9.3

Apr-Sep FY2014

FY2014 (forecast)

0.0%

16

(Consolidated) Balance Sheets(Billions ofyen)

Assets473.5

Current
assets
244.0

-22.1

-36.3

Liabilities and Net Assets
473.5

451.3

Current
liabilities
258.7

Noncurrent
liabilities
Noncurrent
assets229.4

Mar 2014

+14.2

-22.1

451.3

Current
assets207.6

Noncurrent
assets

243.6

Sep26/9
2014(Billions ofyen)

Current
liabilities
216.5

-42.2

＋7.8

Noncurrent
liabilities

80.6

72.8
Net
assets
141.8

+12.2

26/3
Mar
2014
29.1％

Net
assets
154.1
26/9
Sep
2014

Equity ratio

33.7％

17

(Consolidated) Change in Investment Securities
Book value
2,500
250

Valuation difference

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

16,17316,00014,827
2,000
200
1,500
150

12,397
10,083
110.7

1,000
100
500
5000

143.3
60.4

160.1

12,000

Valuationdifference

8,000

147.5
70.4

26.3

84.5
4,000

84.3

Mar 2012

82.8

Mar 2013

77.1

Mar 2014

Book value

75.5
26/9
Sep
2014

018

(Consolidated) Change in Interest-Bearing Liabilities
Short-term

2.7

73.4

(Billions of yen)

70.0

65.5

68.3

13.2

15.7

52.7

52.3

52.5

Mar 2013

Mar 2014

Sep 2014

FY2014 (forecast)

14.7％
14.7％

13.8％

15.1％

ー20.6

Ratio of interestbearing liabilities

Long-term19

(Consolidated) Change in Provision for Loss onConstruction Contracts
Architectural Construction(Billions of yen)

Civil Engineering
23.1
2.2

15.5

-4.8

Civil Engineering

2.1
10.7
20.9

2.5
ArchitecturalConstruction

13.4
8.1

Mar 2013

Mar 2014

26/9
Sep201420

(Consolidated) Statement of Cash Flow
（Billions of yen)
62.0

-11.8
50.1

Cash and cash
equivalents
at beginningof period

Increase in fund Decrease in fund

Income before income taxes
Notes and accounts receivable-trade
Advances received on uncompleted
construction contracts
Notes and accounts payable-trade
Provisions

0.0

(9.3)
(March 31, 2014) Operating CF

Investing CF

Sale of stocks
Sale of property, plant and equipment
Purchase of stocks
Purchase of property, plant and equipment

+2.6
+0.3
(0.7)
(2.1)

+8.5
+22.6
＋2.3
(35.8)(4.8)

Cash and cash
equivalents atend of period(2.4)
Financing CF(September 30,2014)

Long-term loans payable＋4.7
Long-term loans repaid(2.3)
Dividends paid(1.5)
Purchase of treasury stock(2.1)
Purchase of subsidiary’s treasury stock (1.4)

211-3. Performance Forecasts

22Forecasts for FY2014 (Year Ending March 31, 2015)

FY2014FY2013
Forecasts(Billions of yen)

Change(year on year)

Consolidated net
sales

448.9

413.0

-8.0%

-36.0

Operating income

4.7

8.7

81.9％

3.9

Ordinary income

6.5

10.3

56.4％

3.7

Net income

10.2

10.5

2.7％

0.3

Orders received(Non-consolidated)

454.4

380.0

-16.4%-74.4

23

(Non-consolidated) Forecasts
for the Construction Business(Billions of yen)Orders Received forConstruction

Net Sales of Completed
Construction Contracts

Gross Profit Margin on Completed
Construction Contracts

454.4
97.1

401.2

380.0
90.0

Civil
Engineering

373.0
Civil
Engineering

8.5

86.4

Total

Civil
Engineering

88.0

7.7
（％）
5.1

357.2
290.0

FY2013

ArchitecturalConstruction

FY2014(forecast)

314.8

FY2013285.0

ArchitecturalConstruction

FY2014(forecast)

4.5

FY2013

7.1
ArchitecturalConstru
ction

6.7FY2014(forecast)24

Non-consolidated Forecasts for FY2014
Amount(billions of yen)

Profitability（％）

Net sales

378.0

Gross profit

28.3

7.5

Profits in the construction
business

26.5

7.1

[19.0][6.7][Civil engineering]

[7.5]

[8.5]

Profits in the real estatebusiness

1.8

36.0

Selling, general andadministrative expenses

20.5[Architectural construction]

Operating income

7.8

2.1

Ordinary income

9.2

2.4

Extraordinary income
Net income

(0.1)
9.2

2.4
25

2. Progress in Implementation ofManagement Plan

President Masanori Imai

26

Performance Trend
Improve productivity/profitability and aim forcontinued growth
Consolidated net sales

Operating income ratio

413.0

To get on growthtrajectory

Medium-termgoal

2.1︵％︶

1.1

3.02.0FY2005
FY2006
FY2007
FY2008FY2009FY2010FY2011FY2012FY2013
FY2014FY2015FY2016FY2017

Actual/forecast

FY2005
FY2006
FY2007
FY2008FY2009FY2010FY2011FY2012FY2013
FY2014FY2015FY2016FY2017(billions of yen)

Medium-term goalofabout 400.0

Actual/forecast27

Management Strategy Roadmap
FY2012FY2013

FY2014FY2015

Identifying issues

Becoming
profitable without
failureReview process

SteadyprofitsStructural reform

Value Creation Promotion
OfficeOverseas Business Division
Investment & Development
Project OfficeGroup Control Office
Toda Bldg. Partners Co., Ltd.

Stable funding
Review of assets owned

Mindsetreform

Onto growth Acceleration
trajectoryStrengthening of order settlement andmonitoring

1 Review of sales strategy(regionality, target, offering of value)

２ BPR (Business Process Re-engineering),
Rebuilding ICT

3FY2017

Strengthening strategic areas(Overseas, investment development, environment andenergy, group company)

Securing funds for advance payment ofconstruction cost and real estate development

Operating income ratio 3%Thoroughimplementation ofimprovement measures

FY2016

Review of human resource
nurturing (training structure,nurturing management personnel, etc.)

28

Salesstrategy

1

Order Composition Ratio (Non-consolidated)
In addition to priority areas, lodging facilities, land
reclamation, etc. increased
Re-examine investment trends in various regions as well as Toda Corporation’s strengths
Architectural Construction (by construction category)

Civil Engineering (by construction category)

Other
Other(lodging, etc.)

32.4
9.0
13.6

7.8
8.9

Office buildings

31.5

Educationculture︵％︶︵％︶Housing

Soil and river conservation

Production
facilities

12.9

4.2
2.8

Water and sewage
Railways

64.5

Roads

10.9

46.2

21.9

16.5

FY2013Apr-Sep

Medicalwelfare

FY2014Note:

Land reclamation

denotes priority areas.

FY2013Apr-Sep
FY201429

1Salesstrategy

Completed Construction Composition Ratio(Non-consolidated, Forecast)Eliminated most large, unprofitable construction work
(Construction work orders prior to FY2012)
Construction completed

Civil engineering work completed(by year)(by year)

100%
FY2014FY201580%
60%80%60%

FY2013

40%
20%

100%

40%
20%

FY2012 orbefore0%0%

FY2014FY2015FY2014FY2015

forecast

forecast

forecast

forecast30

1Salesstrategy

Establish Metropolitan Area
Civil Engineering Branch (Planned)

Secure new branch structure for pursuing marketabilityand rationality*Detailed examination underway for an April 2015 establishment
Tokyo Branch
Civil Engineering Division

Yokohama Branch
Civil Engineering Division

Jurisdiction: Tokyo, Chiba,
Yamanashi

Jurisdiction: Kanagawa, parts ofShizuoka

Metropolitan Area
Civil Engineering BranchStreamlining of sales and construction
Objectives

Taking on large projects
Nurturing human resources
312BPR

Progress of BPR (Business Process Re-engineering)
Established BPR Committee and started activities

BPR

Rebuild ICTGroup 1 led by the head office
implements business processvisualization activities inadvance.

Drafted ICT medium-term plan
(investment, grand design)
proposal. Started overall systemdesign.

Going forward, the activities tobe expanded to medium-sized
branches to ensure
standardization of businessprocess.

Some operations such as work
flow and information sharing
tools launched in advance.

32

2BPR

Goal of Business Process Re-engineering
Link success of business process re-engineering
to next level of growth
Stabilization/expansion of
profitCycle of
Sustainable
GrowthStrengthening ofcompetitiveness

Allocating management
resources to new
initiatives
Focusing on
traditional business

Completion of BPR

Elimination of
overburden andwaste

Creation of timeand money

33

Strategicarea

3Overseas and Real Estate Businesses
Performance Forecast
Strengthen medium-term strategy ofOverseas Business Division

Net sales of overseas construction(consolidated)

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

21.0

23.2

19.4

FY2013

FY2014 (Forecast)(billions of yen)(billions of yen)15.3

3.3

3.3FY2013

FY2014 (Forecast)*Note: FY2014 estimated rate: US$1=¥103.034

Strategicarea3

Overseas Business: Regional Strategy

Overseas construction orders received(by region)[15.3 billion yen](billions of yen)

0.6
6.3

8.2

Received strong orders fromproduction facilities of Japaneseand non-Japanese businesses[21.0 billion yen]

5.0
5.5

[Brazil]

Direct controlwork(ODA, etc.)

Asia[Asia]
To establish sales office in
Myanmar (Yangon).
*To open July-end 2015

[Direct control work]
10.5

BrazilWater supply facilities work in
Sri Lanka (ADB loan, total JVamount of about 5.0 billion yen).
*Being processed

FY2013

FY2014 (Forecast)* Asia: China, Thailand, Vietnam, Philippines

Promoting it by positioning it asoverseas re-entry work for civilengineering.
35

Basic Recognition of the Second Half
(Construction Business)

Architectural
Construction

CivilEngineering

While receiving steady orders (achievement rate of55%), variations seen depending on the region.
Won orders for large-scale works such as Outer Ring
Road. Focus on further improvement in profit level(forecast at 8.5% for the current term).

Promote differentiation with values to customers
Strengthen construction system, measuresrelated to productivity
Generate and ensure next-term orders
36

－ Toda Corporation means value－37