November 14, 2012

Results Briefing for the Second Quarter
Ended September 30, 2012

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.

Results Briefing for the Second Quarter Ended September 30, 20122

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Review on Medium-Term Management Plan
President Shunzo Inoue

Results Briefing for the Second Quarter Ended September 30, 20123

1. Summary of Financial Results

Executive Manager Yushi Kikutani

Results Briefing for the Second Quarter Ended September 30, 20124

1-1. Summary of Financial Results
for the Second Quarter*Six Months from April 1, 2012 to September 30, 2012

Results Briefing for the Second Quarter Ended September 30, 20125

Highlights: FY2012 2Q
 Consolidated Net Sales: ¥212.8 billion(up 17.1% year-on-year)： Earnings were up 17.1% year on year as the net sales ofcompleted construction contracts rose due to the progress ofcontracted construction.

 Operating Income: -¥14.4 billion： Operating loss was recognized due to a considerable decrease inprofits in the construction business (-¥4.7 billion).

 Orders Received (non-consolidated): ¥149.9 billion(down 27.1% year-on-year)： Orders were received for restoration and other work associatedwith the Great East Japan Earthquake in addition to the priority
areas (medical and welfare facilities, educational facilities, offices,
production facilities and urban infrastructures.)
Results Briefing for the Second Quarter Ended September 30, 20126

Summary: FY2012 2Q(Millions of yen)

Apr-Sep
FY2011
Consolidated
net sales

Apr-Sep FY2012
Forecasts(announced on
Aug. 9, 2012)

Actuals

ChangeDifference(year on year)(vs. forecast)

181,721229,000

212,830+17.1%-16,169

Operating income(77)(5,200)(14,415)－-9,215

Ordinary income

670(4,700)(13,608)－-8,908Net income

41(4,100)(33,824)－-29,724

205,644

160,000

149,964-27.1%-10,035

Orders received(Non-consolidated)

Results Briefing for the Second Quarter Ended September 30, 2012

7

Main Factors for Losses Decrease in profits in the construction business：

Due to the increased harshness of the cost management
environment, a loss on purchase price adjustments reflecting amajor gap between initial projections and results was recognized.
→Profits in the construction business did not recover due to adelay in recovery of profitability.
(Architectural construction: -¥7.3 billion, Civil engineering: ¥1.6
billion, Construction total: -¥5.7 billion [non-consolidated]) Extraordinary losses： Loss on valuation of investment securities was ¥3.6 billion.

 Increase in income taxes： Deferred tax assets were fully reversed as a result of revising therecoverability of deferred tax assets given the considerable
deterioration in performance.
Results Briefing for the Second Quarter Ended September 30, 20128

Construction Business Performance(Non-consolidated)
Orders Received forConstruction

Net Sales of Completed
Construction Contracts(-27.1%)Gross Profit Margin on
Completed Construction
Contracts(+16.4%)
5.8

205.6
193.1

31.5
165.9

149.9

Civil
Engineering

-3.0

Total

3.4

)

115.3

Architectural
Construction(-33.7%)

4.5％((Billions of yen)

174.0

Civil
Engineering(+26.3%)

28.2(Billions of yen)

34.5

Civil
Engineering(+9.5%)

35.6

5.4

137.7

157.5

Architectural
Construction(+14.4%)-4.7 Architectural

Construction

Apr-Sep 11 Apr-Sep 12

Apr-Sep 11 Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

Apr-Sep 11 Apr-Sep 12

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

Breakdown by Client
205.7
0.2

(Reference) Progress

205.6
403.3
149.9
0.0

108.4

71.5

97.1
44.8

46.0

Apr-Sep 11 Apr-Sep 12

PublicSector(+2.7%)

149.9

78.4

Apr-Sep 11 Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

320.0
2Q
(-34.1%)(Billions of yen)

103.8

PrivateSector(-35.3%)(Billions of yen)(Billions of yen)

160.5

Overseas

400.0(Initial forecast)

3Q
+
4Q

51.0%
46.9%

1Q
(-19.3%)

1Q+
2Q

FY2011FY2012( forecast)

10

Main Orders Received
Architectural
construction

Civilengineering

Ordering Parties

Name of works

Yakult Honsha Co., Ltd.

Yakult Central Institute for Microbiological Research,
Pharmaceutical and Cosmetics Research Building

Dokkyo Group of
Academic Institutions

Dokkyo Medical University faculty housing

Social medical
corporation BOKOI

Tenshi Hospital second-phase construction

Kagawa University

Construction of new hospital wings and others

Toyo University

School building commemorating the 50th anniversaryof Himeji High School affiliated with Toyo University

Metropolitan Expressway
Company Limited

Roadwork on lower section of Oji Minami
entrance/exit ramp, replacement roadwork along
Shakujii-gawa (phase 5), neighboring streets

Yonden Engineering
Company, Incorporated

Shiranuka Solar Power Plant construction

Bureau of Sewerage, Tokyo
Metropolitan Government

Minami Motomachi Line
*Honorific prefixes are omitted. Work names are abbreviations.

Results Briefing for the Second Quarter Ended September 30, 201211

Main Works Completed
Ordering Parties
Architectural
construction

Civilengineering

Name of works

Urban Redevelopment Union

Redevelopment of southern section ofWestern Tonyamachi

Japanese Red Cross Society

Wakayama Medical Center

Cainz Co., Ltd.

New headquarters building

Nippon Telegraph andTelephone East Corporation

Training Center lodge

Medical corporation Kouenkai

Suzukake Central Hospital

Kanazawa Institute ofTechnology

Building #23 Lecture Hall

Kinki Regional Development
BureauLower part of Ikenouchi overpass

Osaka Water Supply Authority

Sakai City drainpipe construction*Honorific prefixes are omitted. Work names are abbreviations.

Results Briefing for the Second Quarter Ended September 30, 201212

1-2. Details of Financial Results

Results Briefing for the Second Quarter Ended September 30, 201213

(Consolidated) Toda Group
Business

Construction

Architectural
construction

Civilengineering

Subsidiaries in Japan:
10 companies
Toda Reform Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

APEC Engineering Co., Ltd.

Thai Toda Corporation Ltd.

Sipco Industries Co., Ltd.
(under liquidation procedures)

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

Toda Road Co., Ltd.
Chiyoda Tochi Tatemono Co., Ltd.

Real estate

Overseas Subsidiaries:
7 companies

17
Companies

10companies

ABTD, inc.

1 company
Toda America, Inc.

Yachiyo Urban Co., Ltd.
(under liquidation procedures)

3
companies

Toda Finance Co., Ltd.

OthersChiyoda Staff Service Co., Ltd.

3
companies

Towa Kanko Kaihatsu Co., Ltd.
Results Briefing for the Second Quarter Ended September 30, 201214

(Consolidated)
Summary of Group Performance
Apr-Sep 12

Toda
Corporation

Billions of yen
Net sales
Gross profit
Selling, general andadministrative
expenses
Operating income
Non-operating
incomeOrdinary income
Extraordinary
income (loss)
Income before
income taxes
Income taxes
Net income

Subsidiaries total

%
197.2
(4.5)

-2.3

10.2
(14.7)

6.4

1.2
-7.5

0.7
(14.0)

%
26.3
1.6

0.4

0.4

212.8
(3.1)

1.5

(14.4)

1.9(13.6)

(0.0)

(3.1)

(17.1)

0.4(16.7)

17.4

0.1

17.0

-17.5

0.2

Results Briefing for the Second Quarter Ended September 30, 2012

0.98

-6.4

0.97

-15.9

0.98

0.8

(3.0)

(34.5)

-6.8

%

11.2

0.0
-7.1

-1.5

Ratio ofconsolidated
results
to nonconsolidated
results
1.08
0.69

Consolidated

1.1(33.8)

15

(Consolidated) Net Sales by Subsidiaries(Japan and Overseas) (1)* Before intercompany elimination

Sales in Japan and Overseas(Billions of yen)

Figures in [ ] are percentages of total net sales.

60.0

59.3

Overseas
19.5
[33％]

40.0

20.0

24.8

26.3

7.4

9.0

[30％]

[35％]

Domestic
39.8
[67％]

0.0

17.3

17.2

[70％]

[65％]

Apr-Sep 11

Apr-Sep 12

Domestic subsidiaries

FY2012(forecast)

Overseas subsidiaries

Results Briefing for the Second Quarter Ended September 30, 201216

(Consolidated) Net Sales by Subsidiaries(Japan and Overseas) (2)* Before intercompany elimination

Overseas Sales by Region

Sales in Japan by Segment(Billions ofyen)(Billions of
yen)
50.0

25.0
Exchange rate (Average for Apr-Sep 12)

39.8
Other 1.2

40.0

Real estate

6.3
15.0

30.0

20.0

17.3

17.2

0.6
2.9

0.6
3.1

0.0

7.4

Construction

32.2

13.3
0.0

Apr-Sep 11
Construction

Apr-Sep 12
Real estate

FY2012(forecast)

Results Briefing for the Second Quarter Ended September 30, 2012

China
2.8

2.7

Brazil
8.7

1.4

3.0

3.2

Apr-Sep 11

Apr-Sep 12

BrazilOther

Thailand
5.1

1.6

1.2
1.3
1.7

5.0

13.7

Other 2.7

9.0

10.0

10.0

19.5

US dollar:¥79.78Thailand baht:¥2.57
Brazil real:¥42.91
Philippines peso: ¥1.86
Chinese renminbi: ¥12.66
Vietnamese dong: ¥0.0038

20.0

China

ThailandFY2012(forecast)

Other(U.S., Vietnam and Philippines)

17

(Consolidated) Gross Profit by Subsidiaries(Japan and Overseas) (1)* Before intercompany elimination

Gross Profit in Japan and Overseas(Billions of yen)

6.0

8.2%
7.0%

7.4%

5.0

5.9%

4.0

5.4%

3.0

(5.8%)

2.0
1.0
0.0

1.4

5.9%

1.6

1.6

0.5

0.6

0.9

1.0

Apr-Sep 11

Apr-Sep 12

Domestic subsidiaries

3.9

Overseas subsidiaries

Results Briefing for the Second Quarter Ended September 30, 2012

2.3

FY2012(forecast)
利益率（国内）Gross profit ratio(Japan)利益率（海外）Gross profit ratio(overseas)18

(Consolidated) Gross Profit by Subsidiaries(Japan and Overseas) (2)* Before intercompany elimination

Gross Profit in Japan by Segment(Billions ofyen)

Overseas Gross Profit by Region(Billions of
yen)

30
3.0

2.0

Exchange rate (Average for Apr-Sep 12)

2.36
Other

0.33

20
2.0

Real estate

1.02
10
1.0

0.94
0.23
0.46

0.0
0

1.5

0.52
0.5
Construction

1.00
0.38

Apr-Sep 11

Apr-Sep 12

FY2012(forecast)

Construction

Real estate

Other

0.20
Thailand

1.0

0.17

0.25

Others

0.40

1.01

0.45

1.60

US dollar:¥79.78Thailand baht:¥2.57
Brazil real:¥42.91
Philippines peso: ¥1.86
Chinese renminbi: ¥12.66
Vietnamese dong: ¥0.0038

0.0

Others 0.06

0.67
Others 0.10

0.05
0.12

0.18
0.07

0.28

0.30

Apr-Sep 11

Apr-Sep 12

Others (U.S., Vietnam and Philippines)

Results Briefing for the Second Quarter Ended September 30, 2012

China
0.22

Brazil0.77

FY2012(forecast)Thailand

China

19

Brazil(Consolidated)
Statements of Income
Apr-Sep 11(Actual)Billions of yen
Net sales
Gross profit
Selling, general andadministrative
expenses

Apr-Sep 12(Actual)

％

181.7
11.2

6.2

11.3

212.8
(3.1)

Changes

％

％

-1.5

17.1
―

％

11.2

509.8
5.0

(0.0)

Non-operating
income0.7

Ordinary income

0.6

Extraordinary
income (loss)

(0.6)

(3.1)

(2.9)

0.0

(16.7)(20.9)

(0.0)

17.0

17.6

Income before income
taxes
Income taxes
Net income

0.0

-6.8

―

0.8
0.4

0.0

(13.6)(33.8)

Results Briefing for the Second Quarter Ended September 30, 2012

1.0

24.3

Operating income-0.0(14.4)FY2012(Forecast)(19.3)

-3.8

1.3
-6.4

-15.9

―

―

(18.0)-3.5(38.5)-7.6
20

(Consolidated)
Change in Net Sales by Business
Construction

Real Estate and Others(Billions ofyen)(Billions of
yen)

600.0

20.0
496.0
Subsidiaries
and affiliates

32.0

13.8

15.0

Toda
Corporation

464.0

300.0
176.2
10.2
165.9
0.0

Apr-Sep 11
Toda Corporation

Subsidiaries
and affiliates

10.0

5.8

205.9
12.8
Toda
Corporation

193.1
Apr-Sep 12

Architectural
construction:
374.0

6.8
5.5
5.0

Civil
engineering:
90.0

FY2012(forecast)Subsidiaries
and affiliates

2.6
2.8

0.0

Subsidiaries and affiliates

Results Briefing for the Second Quarter Ended September 30, 2012

Apr-Sep 11

Toda

2.7

Corporation

Toda
Corporation

8.0

4.1
Apr-Sep 12

Toda Corporation

FY2012(forecast)Subsidiaries and affiliates
21

(Consolidated)
Change in Gross Profit by Business
Construction

Real Estate and Others(Billions ofyen)(Billions of
yen)

4.0

15.0

3.5

9.7

10.0

5.0

3.0

0.7

1.5
8.9

Subsidiaries
and affiliates
0.9

0.0
Toda
Corporation
-5.7

-5.0

-4.7

-10.0

Subsidiaries
and affiliates
1.5

Apr-Sep 11
Toda Corporation

Apr-Sep 12

Subsidiaries
and affiliates
2.5
Toda
Corporation-1.0
Architectural
construction: -5.0
Civil engineering: 4.0

FY2012(forecast)

2.0

1.5
0.4

1.6
Subsidiaries
and affiliates
0.3

1.0

0.0

Subsidiaries and affiliates

Results Briefing for the Second Quarter Ended September 30, 2012

1.0

Toda
Corporation
1.2

Apr-Sep 11

Apr-Sep 12

Toda Corporation

Toda
Corporation
2.0

FY2012(forecast)Subsidiaries and affiliates

22

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

Consolidated

Non-consolidated

SG&A expense ratio

30.0

9.0%

24.3
20.0

21.6

6.2%
5.3%

10.0

0.0

11.3

10.2

Apr-Sep 11

11.2

4.8%
3.0%

10.2

Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

6.0%

FY2012 (forecast)

0.0%

23

(Consolidated)
Change in Operating Loss
Consolidated

Non-consolidated

Operating income ratio(Billions of yen)

5.0

2.0%

0.0
-0.07
-5.0

0.0%

-0.13

-0.0%
- 2.0%

-10.0

-3.8%
-14.4

-14.7

- 4.0%

-15.0
-19.3

-20.0

-20.6

- 6.0%

-6.8%
-25.0

Apr-Sep 11

Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

FY2012 (forecast)- 8.0%

24

(Consolidated) Change in
Non-operating Income (Loss)
Account Balance

0.7

0.8

1.3

1.2

1.2

1.3

0.1

Other income 0.1(Billions of yen)
1.5

1.0
Non-operating
income

0.5

0.0

0.9

0.1
-0.3

Non-operating
expenses

-0.5

-1.0

Dividend income
0.9Interest income 0.1
Interest expenses

-0.3

-0.1

Other expenses -0.1

-0.4

-0.4

Apr-Sep 11

Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

FY2012 (forecast)25

(Consolidated)
Change in Ordinary Income (Loss)(Billions of yen)

Consolidated

Non-consolidated

Ordinary income ratio
2.0%

10.0
0.4%
5.0

0.0

0.0%
0.6

0.4
- 2.0%-3.5%-5.0- 4.0%
-13.6

-10.0

-14.0
-15.0
-6.4%
-20.0

Apr-Sep 11

Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

- 6.0%
-18.0

-19.3

FY2012 (forecast)- 8.0%

26

(Consolidated)
Change in Extraordinary Income (Loss)
Account
Account Balance
Balance

-0.6
(0.6)

-3.1
(3.1)

-2.9
(2.9)

(Billions of yen)

1.0

Extraordinary
income0.0-1.0

Extraordinary
loss

0.5
0.0
0.0
-0.6
-0.1
-0.6

Sales of investment
securities 0.3
Sales of real estate, etc.
0.2

Loss on valuation of
investment securities
-3.6

-2.0

-3.0

-2.9

-4.0
Apr-Sep 11-3.6
Apr-Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

FY2012 (forecast)27

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

Consolidated

Non-consolidated

Net income ratio
5.0%

10.0

0.0

0.0 0.0%

0.0%
-0.0

-10.0

-7.6%
-33.8

-20.0

-10.0%

-34.5
-38.5

-30.0

-39.8

-15.9%-40.0

Net income
incomeNetper
Per share
share

Apr-Sep 11

Apr-Sep 12

FY2012 (forecast)

0.13
yen
0.13yen-108.64yen-108.64yen-123.66 yen

Results Briefing for the Second Quarter Ended September 30, 2012

-5.0%

-15.0%-20.0%

28

(Consolidated)
Comprehensive Income(Millions of yen)

Consolidated statements of comprehensive income

Apr-Sep 11 Apr-Sep 12

Income before minority interest

69(33,734)(6,139)(3,611)

Deferred gains or losses on hedges

(9)

(103)

Foreign currency translation adjustment

(14)

40

Total other comprehensive income(6,162)(3,675)

Quarterly comprehensive income(6,093)(37,410)

Other comprehensive income
Valuation difference on available-for-sale securities

Sep 11
Nikkei stock average (yen)8,700

Results Briefing for the Second Quarter Ended September 30, 2012

Sep 12
8,870

Change+2％29

(Consolidated) Balance Sheets(Billions ofyen)

Assets-30.0

Liabilities and Net Assets
487.1

487.1

-30.0
457.1

457.1

Current
assets

-21.1

281.3

Current
assetsCurrent
liabilities
255.7

Current+3.8

Noncurrent
liabilities

59.8

assets

205.7

-8.9

+5.5

196.8

Noncurrent
liabilities

65.3

Noncurrent

assetsliabilities
259.5

260.2

Noncurrent(Billions ofyen)

Net assets

171.5

-39.3

Net
assets132.2
Mar 12

Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

Mar 12

Sep 1230

(Consolidated)
Detailed Consolidated Balance Sheets
Mar 12

Sep 12

Billions of yen

Remarks
Figures in ( ) are changes from the previous year.

(Assets)
Current assets

281.3

260.2

Noncurrent assets

205.7

196.8

Property, plant andequipment

87.3

87.5

Intangible assets

3.0

2.9

Investments andother assets

115.4

106.3

Notes receivable, accounts receivablefrom completed construction contracts
and other: 127.8 (-36.3)
Costs on uncompleted construction
contracts: 45.2 (+14.2)
Real estate for sale: 17.3 (-2.1)
Deferred tax assets: 0.06 (-10.1)
Buildings and structures: 19.4 (+1.7)
Land: 67.1 (+0.5)
Investment securities: 101.8 (-8.9)

Total assets

487.1

457.1

Results Briefing for the Second Quarter Ended September 30, 201231

(Consolidated)
Detailed Consolidated Balance Sheets
Mar 12

Sep 12

Billions of yen(Liabilities)
Current liabilities
Noncurrent liabilities(Net Assets)
Shareholders’ equity
Valuation andconversion adjustment
Minority interests
Total Net Assets
Total Liabilities andNet Assets

Remarks
Figures in ( ) are changes from the previous year.

255.7

259.5

59.8

65.3

146.2
21.0

110.8
17.1

4.1
171.5

4.2
132.2

487.1

457.1

Notes payable, accounts payable for construction
contracts and other : 115.6 (-17.1)
Short-term loans payable: 37.7 (+0.7)
Advances received on uncompleted construction
contracts: 49.0 (+7.8)
Provision for loss on construction contracts: 16.6(+2.6)

Results Briefing for the Second Quarter Ended September 30, 2012

Long-term loans payable: 21.4 (+1.0)
Provision for retirement benefits: 22.3 (+0.2)
Long-term deferred tax liabilities: 7.6 (+4.4)
Retained earnings: 68.2 (-35.4)
Valuation difference on available-for-salesecurities: 13.3 (-3.6)
Total interest-bearing liabilities: 59.2 (+1.7)
57.5 (Mar 12) → 59.2 (Sep 12)

32

(Consolidated)
Change in Real Estate Holding
For business use (own use)

For business use (rent)

For sale(Billions of yen)

+0.1

120.0

113.0
30.4

108.7
28.6

106.0

105.9
19.5

(-2.2)For sale

17.4

Decreased by sales: -1.7
Transfer to business use(YURAKUCHO ITOCiA):
-0.5

80.0
52.3

40.0

0.0

82.6

54.5
80.1

30.3

25.6

Mar
10
22/3

Mar
11
23/3

54.5

For business use(rent)(+2.1)

86.3

31.8
Mar
12
24/3

Results Briefing for the Second Quarter Ended September 30, 2012

56.6
88.6

For business use(own use)(+0.2)

32.0

Acquisition of
Tonyamachi, Gifu: +2.2
Transfer from sale
(YURAKUCHO ITOCiA):+0.5
Depreciation andamortization: -0.5
Acquisition of Tsukuba
Technology ResearchInstitute: +0.3

Sep
12
24/9
33

(Consolidated) Capital Investments( Billions of yen)

Capital investments

Mar 12

Mar 13(forecast)

Sep 12

Property, plant and equipment

3.4

1.4

4.2

Intangible assets

1.1

0.1

1.3

Total

4.5

1.5

5.5
( Billions of yen)

Mar 12

Mar 13(forecast)

Sep 12

Depreciation and amortization

2.1

0.9

2.1

R&D expenses

1.9

0.6

1.3

Results Briefing for the Second Quarter Ended September 30, 2012

34

(Consolidated)
Change in Investment Securities
Book value

Valuation difference

Nikkei stock average(Billions of yen)

200.0

11,089Earthquake
9,755

150.0
119.6
100.0

36.0

Share Price(Yen)

12,00010,0838,870

Immediately
after the earthquake
8,228

110.2

110.7

26.3

26.4

9,000

-8.9
101.8
Valuation difference

6,000

20.7

50.0

0.0

83.6

84.0

84.3

Book value

Mar 10Mar 11

Mar 12

Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

3,000

81.0

0

35

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

Ratio of interest-bearing liabilities

Non-consolidated

Figures in ( ) represent current portion of long-term loans payable.

100.0

15.0%

13.0%
80.0

11.9%

11.8%

11.6%

12.0%
+1.7

60.0

40.0

59.4

58.0

18.7

14.2

(1.9)

(8.5)

57.5

59.2

20.4

21.4

20.0

0.0

50.6

6.0%

(2.7)

(3.5)

51.3

9.0%

50.0

Nonconsolidated

51.4

40.7

43.8

37.0

37.7

Mar 10Mar 11

Mar 12

Sep 12

Results Briefing for the Second Quarter Ended September 30, 2012

3.0%

0.0%

36

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

Civil engineering

20.0
+2.6
16.6
15.0

14.0

Civil engineering
2.6
-0.2

2.8

6.4
5.0

(Non-consolidated)

9.3

10.0

1.9

1.2

11.2

11.1

+2.9
Architectural
construction
14.1

7.3

Civil engineering
1.0

Architectural
construction
10.1

5.2
0.0

Mar 10Mar 11

Mar 12

Results Briefing for the Second Quarter Ended September 30, 2012

Sep 12

Mar 13(forecast)37

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

+5.5

57.5

52.0

Cash and cash
Increase in fundequivalents at
beginningof period

Decrease in fundMar 2012

Profit before tax: -16.7
Loss on valuation of investment
securities: +3.6
Provision for loss on construction
contracts: +2.6
Construction-related funds: +12.7

Cash and cash

equivalents at
Purchase of property, plant and equipment: -0.3 end of
Sales of property, plant and equipment: +0.5
periodPurchase of investment securities: -1.7
Sales of investment securities: +1.6

Operating CF

Investing CF

Financing CF

5.3

0.5

-0.2

Results Briefing for the Second Quarter Ended September 30, 2012

Sep 2012

Dividends paid: -1.8
Loans: +1.7

38

(Reference) Share Price andOther Indices (Consolidated)
Mar 10Share price (Yen)

Mar 11

Mar 12

Sep 12

Mar 13(forecast)

337

329

278

235

－

Net assets per share (Yen)

617.42602.35537.53411.08－Net income(loss) per share
(Yen)

9.36

11.53

(64.28)(108.64)(123.66)

36.00
ＰＥＲ: Price earning ratio(times)
ＰＢＲ: Price-book value ratio(times)

28.53

0.57
PER

0.55

0.55
PBR

0.52
-2.16

-1.90

-4.32
Results Briefing for the Second Quarter Ended September 30, 201239

1-3. Performance Forecasts

Results Briefing for the Second Quarter Ended September 30, 201240

Forecasts for FY2012(Millions of yen)

FY2012FY2011

Forecasts(announced on
Aug. 9, 2012)

Current
forecast

Change(year on year)

Consolidated net sales

489,385

477,800

509,800+4.2%

Operating income(7,994)

4,100(19,300)―

Ordinary income(6,690)

5,200(18,000)―

Net income(19,872)

1,200(38,500)―

Orders received(Non-consolidated)403,256

400,000

320,000-20.6%

Dividends per share

6.0 yen

6.0 yen

5.0 yen-1.0 yen

Results Briefing for the Second Quarter Ended September 30, 201241

Forecasts for Construction Business(Non-consolidated)
Orders Received forConstruction

Net Sales of Completed
Construction Contracts(+3.4%)(-20.6%)

448.9
403.2
73.8

Gross Profit Margin on
Completed Construction
Contracts

101.5

4.6

464.0
Civil
engineering(-11.3%)374.0

Architectural
construction(+7.6%)

4.4
Civil engineering

3.8

320.0

)

250.0

Architectural
construction(-24.1%)(Billions of yen)

329.4

Civil
engineering(-5.2%)％(

70.0(Billions of yen)

90.0

4.0

347.4

-0.2

Total

-1.3
Architectural
construction

FY2011FY2012(forecast)

FY2011FY2012(forecast)

Results Briefing for the Second Quarter Ended September 30, 2012

FY2011FY2012(forecast)42

2. Review on Medium-Term
Management Plan
President Shunzo Inoue

Results Briefing for the Second Quarter Ended September 30, 201243

2-1. Recognized Issues

Results Briefing for the Second Quarter Ended September 30, 201244

Excessive Price Competition
Change in orders received for construction(FY2006 = 100)
Maintaining
business scale

Toda Corporation(100)

Excessive pricecompetition
50 leading companies

73.2

76.8

Market stagnation
FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012(forecast)

Source: “Current Survey on Orders Received for Construction” by the Ministry of Land, Infrastructure, Transport and Tourism

Results Briefing for the Second Quarter Ended September 30, 201245

Loss on Purchase Price Adjustments
Changes in construction profitability andprice of construction materials
Construction profitability
5.5

5.4

6.3

Orders actively
received

6.6

5.6

Recognition of a loss
on purchase priceadjustments
3.8

Construction materials*One-year-slide
FY2006

FY2007

FY2008FY2009FY2010-1.3
FY2011FY2012

Rise in price ofconstruction materials(forecast)

Source: “Corporate Goods Price Index” by Bank of Japan

Results Briefing for the Second Quarter Ended September 30, 201246

Effects of Unprofitable Construction
Works
Breakdown of net sales ofcompleted construction (by year)
Orders for large-scale andunprofitable construction
work were concentrated in
FY2010 and FY2011

Orders received in
FY2013
Orders received in
FY2012
Orders received in
FY2011

Ratio of orders received
in FY2011 or before will
decline in FY2013

Orders received in
FY2010Orders received in
FY2009 or before

FY2011Result

FY2012
Forecast

FY2013
Assumption

Results Briefing for the Second Quarter Ended September 30, 2012

Evade adverse effects
on future financial
performance byrecording provision forloss on construction
contracts47

Review on Medium-Term Management
Plan

Challenges

Must be in the black in the next fiscal year
Ensure thorough pursuit of profits
Rebuild business models

Review on medium-term management plan

Revision

Performance targets

Revise net sales and target period
by rebuilding the construction
business and securing anappropriate business scale

Reinforcement Priority measures

Introduce emergency measuresand medium-term measures toincrease the effectiveness of theplan in accordance with thepreviously announced plan

Results Briefing for the Second Quarter Ended September 30, 201248

Reference: Medium-Term Management
Plan (Announced on May 14, 2012)
1. Basic Policy(2) Growth strategies as a Group1) Early improvement in revenues
2) Creation of new values

1) Renovate Business Processes• Shift from business model of “selling tailored itemswith no post-sale services”• Promote the securing of capable technicians• Cooperate and enter alliances with companies
and organizations outside the Group

2. Performance Targets (FY2014)• Consolidated net sales: ¥500.0 billion more or less
• Operating margin: 2.0% and higher

3. Priority measures(1) Improvement of construction revenue• Scrutiny of projects and risk management together
with Sales and Construction Departments• Enhance technical proposals and comprehensive
evaluation method• Strengthen priority areas• Cost control; Streamline the purchasing function• Eliminate defects, rework and waste in the processof construction• Reduce total costs• Focus on reconstruction demand arising from theGreat East Japan Earthquake2) Business areas requiring strategic development andenhancement• Overseas, Investment Business, Environment &Energy3) Strengthen management base
• Compliance, Quality/Environment/Safety, BCP• Inherit technological capability, develop andsecure human resources globally• Develop a unifying management structure as aGroup

Results Briefing for the Second Quarter Ended September 30, 201249

2-2. Emergency Measures

Results Briefing for the Second Quarter Ended September 30, 201250

Make Selection of Orders More
StringentProfitability-oriented policy

Review target figures fororders received forarchitectural construction

Make selection of orders more
stringentApproximately ¥250.0 billion for
the time being(FY2011 results: ¥329.4 billion)

Improve profitability

Results Briefing for the Second Quarter Ended September 30, 201251

Improvement on Management
Structure of Construction Work
Establishment of a Cost Control CenterAt orderreceipt

Duringconstruction
work

Establishment of a Committee for
Review on Judgments Taken at Order
Receipt
Timely identification of purchasing status,labor shortage and other factors, andguidance for branches by Architectural
Construction Department of Head Office

Implemented

Implemented
StartedMonitoring by Accounting Department
Ensuring proper cost control at
operational site

At financial
closing

Under consideration

Identification of actual state, guidance
and improvement of analytical skills on
financial matters by Architectural
Construction Department of Head Office

Results Briefing for the Second Quarter Ended September 30, 2012

Implemented
Started52

Improvement on Management Structureof Construction Work at Order Receipt
Cost Control Center
Establish a Cost Control Centerby integrating the estimation
department and the purchasing
department. Reflect market prices
on a real-time basis and makeappropriate and competitive priceestimations.

Estimation
Integrate

Cost Control
CenterPurchasing

Committee for Review on
Judgments Taken at Order Receipt
In the early stages of the process ofdetermining the working budget for
construction, secure preciseness andappropriateness of the judgment
made upon order receipt. Provide
feedback for subsequent judgment(approval) upon order receipt.

Committee
Verifyfor Review on
Judgments
Taken at
Order
Feedback
Receipt

Under consideration towards FY2013

Results Briefing for the Second Quarter Ended September 30, 2012

Judgment
Judgment

In operation (since October)53

Companywide Cost Reductions
Promote further rationalization of the organization andits operations
Reorganize organizational structure of head office and branch• Eliminate redundancy, be front-line oriented, outsourcing• Perform operations under a new framework and with new ideas

Reduce SG&A expenses for FY2013 to roughly ¥18.0 billion(non-consolidated)

Results Briefing for the Second Quarter Ended September 30, 201254

2-3. Medium-Term Measures

Results Briefing for the Second Quarter Ended September 30, 201255

Direction of Business
Shift from “individual project-oriented” to “solutionoriented” approach
Solution to aim forStart with “people”

Service value

Long-term
relationshipFace customers sincerely
Ensure appropriate sizing(Narrow down targets)Accelerate actions to achieve medium- to longterm management strategy
Results Briefing for the Second Quarter Ended September 30, 201256

Basic Strategies

Shift management resources to medium-sized projects

Reinforce the aftercare business for completed construction
Establish an earnings base to complement thedomestic architectural construction businessResults Briefing for the Second Quarter Ended September 30, 201257

Shift to Medium-Sized Projects
Secure profits by thorough selection & planning
Composition ratio of net sales of completed
construction (image for FY2015)

Others

Housing (10%)

Office buildings(15%)

Medical welfare(25%)

Focus on attracting orders frommedium-size private hospitals,
schools, production facilities
and office buildings

Educational
facilities (15%)

Limit large-scale projects tosectors that require
involvement from the upstream
process (e.g. redevelopment
projects)

Production
facilities (10%)

Results Briefing for the Second Quarter Ended September 30, 201258

Earnings Structure of Medical
Welfare Facilities
Cumulative sales amount and profitability ratio by amount of sales for construction(Completed construction contracts from FY2006 through FY2011, excluding orders received
in FY2010 and FY2011)

Areas that account for half of the total and with high profitability¥5.0 billion and higher¥2.0 billion level(Gross profit margin)

selectionof orders¥1.5 - 2.0 billion¥1.0 - 1.5 billion

Create profits by offering
Toda-style solutions¥0.5 -1.0 billion

Less than ¥0.5 billion

Renovation
construction
work¥4.0 billion level¥3.0 billion level(Cumulative sales amount)
Results Briefing for the Second Quarter Ended September 30, 201259

Aftercare Business
Establish a new organization to manage the aftercare business

RenewalNew
construction

One-Stop
Maintenanceandmanagement

Results Briefing for the Second Quarter Ended September 30, 2012

Currently considering a unifying
management structure as a
Group
Toda Corporation
Toda Reform Co., Ltd.
APEC Engineering Co., Ltd
Chiyoda Tochi Tatemono Co., Ltd.

60

Overseas Business
Exploit opportunities in Brazil and Southeast Asia

Target for FY2015: Net sales of ¥30.0 billion

Overseas net sales (consolidated)Line graph signifies net sales of orders received

２５.２

Localize a Brazilian affiliate,
expand business activities
Exploit markets (countries
and regions) in Southeast
Asia

２１.５
(Billions of yen)

１８.１

FY2011Result２１.０

Initiatives being taken (FY2012)
Opened an area office inSoutheast Asia (July)FY2012
Forecast

Results Briefing for the Second Quarter Ended September 30, 2012

Plan to open a representative
office in Jakarta, Indonesia for
FY201361

Real Estate Business
Implement investment for securing stable earning source
Target for FY2015: Gross profit of ¥4.0 billion
Income from real estate, etc. (consolidated)
３.５(Billions of yen)

-４.４

FY2011Result

FY2012
Forecast

Results Briefing for the Second Quarter Ended September 30, 2012

Eliminated asset risk by
posting a valuation loss in
FY2011
Shorten real estate
investment and purchasing
processes and expand
earnings
Initiatives being taken (FY2012)
Narrowed down and examined
investment items by the Real EstateBusiness Department
Held two Real Estate Investment
Advisory Committee meetings withparticipation of outside specialists(May and August)62

Organization & Cost, Governance
Organization and cost reforms
Promote further streamlining and maintain a ¥18.0 billion SG&A
expenses structure (non-consolidated)
Promote flexible manpower allocation including group companies
Increase centralized purchasing levels by the Cost Control Centerand from overseas
Reduce costs in collaboration with subcontractors

Governance reforms
Revise authority standards for orders received, and promote
involvement from the Board of Directors and the management
committee
Rebuild a matrix management mechanism by branch and bybusiness
Implement a multidimensional and 360-degree evaluation system for
managerial staffs
Results Briefing for the Second Quarter Ended September 30, 201263

2-4. Revisions to Performance Targets

Results Briefing for the Second Quarter Ended September 30, 201264

Revisions to Performance Targets
Consolidated net sales to roughly ¥400.0 billion; extend
target date by one year
(Billions of yen)

Consolidated
net sales
Operatingincome (ratio)

Before revision

After revision(Reference)

FY2014FY2015FY2012(forecast)

500.0
400.0
more or less more or less
2.0%
2.0%
and higher
and higher

Results Briefing for the Second Quarter Ended September 30, 2012

509.8
-3.8%

65

Promotion Structure
Structural Reform Committee
Committee Chairman: President

Implemented in October;
five meetings held
*As of November 14

Sales Operation Reform Working Group (WG)
Estimation and Procurement Reform WG
Construction Cost Reduction and Construction
Efficiency Promotion WG
Facility Lifecycle WG
Structural Reform WG
Cost Reduction WG

WG is comprised of amanager and four or five
staffsFormulate specificproposals for submission
to the Committee
To newly establish, revise
or eliminate WG as
necessary going forward

Personnel System Reform WG

Results Briefing for the Second Quarter Ended September 30, 201266

67