Results Briefing
for the Year Ended March 31, 2015
May 18, 2015

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. Medium-Term Management Plan 2017
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

41-1. Summary of Financial Results
for the Year Ended March 31, 20155

Highlights: FY2014
 Consolidated Net Sales: ¥420.3 billion, down 6.4% year-on-year： Net sales fell 6.4% year-on-year to ¥420.3 billion, as completed
construction contracts declined.

 Operating Income: ¥12.9 billion, up 171.4% year-on-year： Operating income increased 171.4% year on year, to ¥12.9

billion, as gross profit on completed construction contracts
improved due to the thorough adoption of a profitabilityoriented order receipt policy.

 Orders Received (non-consolidated): ¥449.7 billion, down
1.0% year on year
： Orders for architectural construction fell 7.0% year on year, due
to the impact of large construction orders received in theprevious fiscal year, but thanks to civil engineering-related
large public sector projects, overall orders received fell 1.0% to¥449.7 billion.

6

Summary: FY2014(Billions of yen)

FY2014FY2013
Consolidated
net sales

Forecasts(announced
on Feb 13,
2015)

Actuals

Change(year onyear)

Difference(vs. forecast)

448.9

413.0

420.3

-6.4%

7.3

Operatingincome

4.7

8.7

12.9

171.4％

4.2

Ordinary
income

6.5

10.3

14.8

125.0%

4.5

Net income

10.2

10.5

14.0

37.1%

3.5

Ordersreceived (nonconsolidated)

454.4

425.0

449.7

-1.0%

24.7

7

Main Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

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

Federation of National Public Service
Personnel Mutual Aid Associations

Toranomon Hospital development project

Urban Redevelopment Association

Kojiya 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

Democratic Socialist Republic of Sri
Lanka

Northern Colombo non-revenue water reduction project

Osaka Gas Co., Ltd.

No. 2 east shield construction, Izumiotsu, etc.
*Honorific prefixes are omitted. Work names are abbreviations.

8

Main Works Completed
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Japan Post Co., Ltd.

Omiya Sakuragi-cho 1-chome project

Waseda University

Waseda campus D Building

Otsuma Gakuin

Reconstruction of Chiyoda school building

Shimadzu Corporation

E1 Building construction project

St. Mary’s School

Seiko Gakuin new school building development

Central Nippon Expressway Company
LimitedShin tomei Expressway Nukata Tunnel

Bureau of Waterworks, Tokyo
Metropolitan Government

Advanced Water Treatment Facility Phase II, Asaka
Purification Plant

Keio Corporation

Chofu Station area connecting grade separated crossingWest Nippon Expressway Company
Limited

Nishi Meihan Expressway Kooriyama-kita construction work

*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/A

Chiyoda Kenkou Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

Construction

Architectural
Construction

14 companies

8companies

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

Civil
Engineering

Real Estate1
company

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
FY2014Toda Corporation％

Billions of yen
Net sales

383.8

Gross profit

31.9

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

Subsidiaries Total

20.3
11.6

4.5

3.0

1.6

8.5

1.9

36.1

3.0

12.9

3.7

14.8

-0.2

-0.6

0.2

Income before income taxes

12.9

1.3

15.1

0.2

0.4

1.0

Net income

12.6

3.3

0.9

1.10
8.6

1.13

3.1

1.12

3.5

1.13

3.3

1.11

1.8

Extraordinary income

Income taxes

Ratio ofconsolidated
to nonconsolidated

23.1

0.3
3.4

％

420.3

2.9

1.5
13.1

％

54.0
8.3

FY2014
Consolidated

1.8

14.0

12

(Consolidated) Statements of Income
FY2013（actual）％

Billions of yen
Net sales

448.9

Gross profit

25.4

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

FY2014（actual）

5.7

36.1

8.6

1.1

12.9

14.8

％

-6.4

451.0

42.0

34.3

3.1

171.4

10.0

3.5

125.0

11.6

4.4

0.2

0.0

Income before income taxes

11.0

15.1

11.6

0.8

1.0

1.5

Net income

10.2

2.3

14.0

2.2

1.6

Extraordinary income

Income taxes

7.6

24.3

1.8
1.5

FY2015（Forecast）

％

23.1

1.8
6.5

％

420.3

20.6
4.7

Change

3.3

37.1

10.1

2.6

2.2
13

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

Operating Income

Architectural Construction(Billions of yen)

Real Estate and Other

6,000

454.2

5,000

Real Estate

424.1

Civil

451.0

14.0
95.7

314.3

435.7

1,000
0

4.8

FY2014

10.0

0.9
3.0

Real Estate4020FY201313.0

60Construction

Architectural

346.5

140

Civil Engineering

80
Architectural

Construction

Real Estate and Other

100

3,000
2,000

(Billions of yen)

15.3

Engineering

90.6

Architectural Construction

120

and Other

17.0

4,000

Civil Engineering

FY2015(forecast)* Net sales by segment include intersegment transactions.

0and Other

Total

9.0

10.0

FY2014FY2015

1.5
Civil
Engineering

2.5

Architectural
Construction

0.7

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

14

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

30.0

Non-consolidated

5.5%

SG&A ratio

5.4%

6.0%

（consolidated）

4.6%
20.0

24.3

23.1
20.6

20.3

21.5

4.0%

18.3

10.0

2.0%

0.0

0.0%

FY2013

FY2014FY2015 (forecast)15

(Consolidated) Balance Sheets
Assets(Billions of yen)

Liabilities and Net Assets

＋21.9

473.5

+21.9
495.4

Construction
related assets -14.8
Real estate for sale -0.４

473.5

Current
Current
Assets244.0

Noncurrent
assets-15.9
Buildings andstructures -1.8
Land
-0.２

-1.9

assetsCurrent

228.0

liabilities

assets+39.8

and otherassets151.0

Mar 14

Noncurrent

Investment
securities ＋37.9

72.8

Net assets

190.8

141.8

Mar 15

Mar 14100.0％ Current ratio 119.4％

208.7

Long-term loans+20.5
Deferred tax
liabilities +11.1

Noncurrent
liabilities
103.6

+41.1

and otherassets

-49.9

＋30.8

liabilities
Investments

Current
liabilities

Noncurrent
76.5

495.4

Construction related
liabilities -21.1
Provisions for loss on
construction -7.9
Short-term loans -19.7

258.7

78.4
Investments(Billions of yen)

Net assets

Retained earnings ＋13.6
Valuation difference on
available-for-salesecurities +29.4
Treasury stock -2.2

29.1％

Equity ratio

182.9

Mar 1536.4％

16

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei stock average(Billions of yen)

19,206

250.0

200.0

14,827
12,397

150.0

100.0

50.0

0.0

10,083
110.7

147.5
143.3

60.4

185.4

20,00015,000

Valuationdifference

70.4

Stock prices（yen）

110.3

10,000

26.3
5,000
84.3

Mar 2012

82.8

Mar 2013

77.1

Mar 2014

Book value

75.1
Mar 20150

17

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

85.0
＋0.7

73.4
65.5
20.6

66.3

13.2
33.7

52.7

52.3
32.5

Mar 2013

Mar 2014

Mar 2015

Mar 2016(forecast)

D/E Ratio

0.59x

0.48x

0.37x

ー
18

(Consolidated) Change in Provision for Loss on
Construction Contracts
Architectural Construction

Civil Engineering（Billions of yen）

23.1
2.2

15.5

-7.9

Civil Engineering

2.1
20.9
Architectural
Construction

13.4

7.5
2.5
5.0

Mar 2013

Mar 2014

Mar 2015
19

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

-2.8

62.0

59.2

Cash and cash
Cash and cash

equivalents
at beginning of
Increase in funds Decrease in funds

periodIncome before income taxes+15.1
Costs on uncompleted construction contracts+11.8
Notes and accounts receivable – trade+3.2
Advances received on uncompleted construction contracts (10.7)
Notes and accounts payable – trade(10.6)
Allowance for doubtful accounts
(7.3)

(0.9)
[14.3.31]

1.9

Operating CF Investing CF
Sale of stocks
+6.0
Loans
+0.2
Purchase of stocks(3.1)
Purchase of property, plant and equipment (1.1)
Time deposits(0.6)

equivalents at
end of period(4.5)
Financing CF[15.3.31]

Net increase in loans＋0.7
Dividends paid
(1.5)
Purchase of treasury stock (2.2)

201-3. Performance Forecasts

21

Forecasts for FY2015 (Year Ending March 31, 2016)

FY2015FY2014(Billions of yen)

Forecasts

Change(year
on year)

Consolidated net
sales

420.3

451.0

7.3%

30.6

Operatingincome12.9

10.0-23.0％-2.9

Ordinary income

14.8

11.6

-21.7％-3.2

Net income

14.0

10.1

-28.0％-3.9

Orders received
(Non-

449.7

400.0

-11.1%-49.7

consolidated)

22

(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

449.7
410.0

400.0

378.0

117.6
90.0

Architectural Construction
9.0
Civil Engineering
Total

Civil
Engineering

90.0

Civil
Engineering

91.2

8.5

8.2
8.0

8.0

8.0

7.9
7.5

（％）

332.0

310.0

Architectural
Construction

286.8

320.0

7.1

Architectural
Construction

6.8

7.0
6.5
6.0

FY2014FY2015(forecast)

FY2014FY2015(forecast)

FY2014FY2015(forecast)23

Non-consolidated Forecasts for FY2015
Amount（billions of yen）

Profitability（％）

Net sales

417.0

Gross profit

30.7

7.4

Profits in the construction
business

29.0

7.1

[21.8][6.8][Civil engineering]

[7.2]

[8.0]

Profits in the real estate business

1.7

24.3

Selling, general and administrative
expenses

21.5[Architectural construction]

Operating income

9.2

2.2

Ordinary income

10.7

2.6

Extraordinary income
Net income

0
9.5

2.3
24

２． Medium-term Management Plan 2017

President Masanori Imai

25

Focus of Medium-term Management Plan 2017
− Break away from conventional concepts andcreate new value and systems −No.1 in Productivity

Foundation for GrowthEstablish the highest
level of productivity inthe general
construction sector

Pursue synergies
between businessdomain expansion andconstruction

26

Recap of Previous Medium-term Management Plan ①
Achieve performance targets 1 year ahead of schedule and arecovery of financial soundness
Equity Ratio

Operating Income Ratio
Previous medium-term
management plan（〜FY2015）

Previous medium-term
management plan（〜FY2015）

3.1

1.1

Target：At least 2％

36.4

34.4
︵％︶

︵％︶

-1.6

29.1

Improvement

24.7

Recovery

-9.5
11

12

13

14

（FY）

11

12

13

14
27

Recap of Previous Medium-term Management Plan ②
Responsibility/promotion framework aimed at
resolving issues

FY
2013

FY
2014

Value Creation
Promotion Office・ Create Toda Corp.’s own value
・ Reform operations and rebuild ICTGroup Control Office・ Provide value to customers through theOverseas Business
Division・ Undertake challenges in overseas

Investment &Development Project Office
Metropolitan Area
Civil Engineering Branch

construction lifecycle

markets which continue to grow・ Expand business domain with an eye tothe future

・ Try for large civil engineering projects
・ Additional success in the Civil
Engineering segment※ The period is the period of consideration and decision-making

28

Recognition of Environment
The start line towards new challenges, fromregeneration to growth
Toda Corporation

Market / Industry•

Over the medium term, expect
solid domestic construction
investment, centered in cities.

•

Due to the declining population,
fiscal constraints, etc., it isdifficult to foresee long-term
investment growth.

•

In the construction industry,
which is a labor-intensive
industry, boosting productivity
is a pressing issue.

•

Achieved performance target ofthe previous medium-term
management plan (operating
income ratio of at least 2%)
ahead of schedule.

•

Completed structural reforms
for pursuing growth strategy.

•

Formulated the Toda
Corporation Group global
vision, creating a shared vision
for future.

29

Significance and Direction of Management Plan
Phase I aimed at actualizing the global vision
Phase I

Phase II

FY2015〜FY2017

FY2018〜FY2020

Break away from conventional
concepts and create new value
and systems

Continue and deepen reforms（No.1 in Productivity）（Foundation for Growth）（No.1 in toughness）（Establish new business model)

 Pursue productivity improvements by rebuilding production
systems and work flow.
 Expand business domain with an eye to the future.
 Diversify personnel and values, thereby building a newcorporate culture.
30

FY2017 Group Performance Targets(Billions of yen)

FY2017FY2014FY2015

Actuals

Forecasts

420.3

451.0

480.0

Architectural Construction(Japan)

286.7

318.6

330.0

Civil engineering (Japan)

91.1

88.5

97.5

Investment & Development

5.7

7.0

5.0

Overseas

21.0

19.7

25.0

Domestic groupcompanies

33.1

36.0

40.0

Consolidated eliminations

-17.5

-18.8

-17.5

Operating income

12.9

10.0

17.0

Operating income ratio

3.1%

2.2%

3.5%

11,540,000

11,200,000

13,000,000

Consolidated net sales

Labor productivity
Non-consolidated, (yen)Targets※ Labor productivity＝Amount of value added（Operating income＋Total personnel costs) / Number of employees（averageduring fiscal year, including non-permanent employees, etc.)31Profit Targets by Business(Billions of yen, [％])FY2014FY2015

Actuals

Forecasts

FY2017Long-term
Targets

Targets

12.9

[100]

10.0

[100]

17.0

[100]

[100]

Architectural
Construction (Japan)

8.9[69.3]

7.3[73.0]

11.5[67.6][50.0]

Civil engineering(Japan)3.0[23.3]

2.4[24.0]

3.6[21.2][15.0]

Investment &Development

0.6

[5.3]

0.4

[4.0]

0.5

[2.9]

[15.0]

Overseas-0.3[-2.5]-0.8[-8.0]

0.7[4.1][10.0]

Domestic groupcompanies

0.8

[6.7]

0.7

[7.0]

0.7

[4.1]

[10.0]

Consolidated
eliminations-0.2[-2.0]

0.0

[0.0]

−

[−]

[−]

Operating income※ Figures in brackets are percentages of total※ Long-term targets represent management vision for 2021 and beyond

32

Shareholder Returns, etc.

Total amount of personnel
costs

Labor
productivity
×
Number of
employees

Valueadded
amountOperatingincomeEmployees

Non-operating
income (loss)

Creditors, etc.

Extraordinary
income (loss)―

Income taxes

Society

Dividend

Payout ratio（/Net income）

Shareholders

20〜
30％

(Shareholders)

80〜
70％

Net
incomeSurplus, etc.

Equity ratio
consistently atleast 35%

※ Based on the above policy, dividends will be determined taking continuity and stability into consideration

33

Key Medium-termManagement Plan
Strategies（Plan)

No.1 in Productivity

Ability to create value / cost competitiveness・ Expand special and design constructionof differentiating
・ Development/use
technologies
・ Improved purchasing methods, etc.

Sales

FY2017 Targets
Consolidated net sales ¥480.0bn（+14.2％）
Labor productivity¥13,000,000（+12.6％）

Sustainable growth with profits
Consumption capability/work speed（shorten time）

FY2014 Results
Consolidated net sales ¥420.3bn
Labor productivity¥11,540,000

Productivity

・ Pursue labor-saving construction, promote BIM
・ Operational reforms and rebuilding ICT（BPR）
・ Increase collaboration with partnering companies,
etc.

34

Key Medium-termManagement Plan
Strategies（Plan)

Foundation for Growth
Investment & Development
・ Effective use of company-owned real estate（machinery andequipment center, etc.)
・ Headquarters building reconstruction project・ New business investment（healthcare, agriculture,environment/energy, etc.）

Full-fledged investment from FY2017

Overseas
・ Revise local subsidiaries, expand regions in

Domestic Group Companies
・ Secure core customers by bolstering

which we do business・ Development business（environment
business, smart cities, etc.

Group teamwork
・ Enhance framework targeting renovation
demandNet Sales（Target）
FY17 ¥25.0bn, FY20 ¥40.0bn

Net Sales（Target）
FY17 ¥40.0bn, FY20 ¥45.0bn
35Key Medium-Term
Management Plan
Strategies（Plan)

Response to Investment Demand
Full-fledged investment
FY2015
Parts expected
in planDemand for
funds（Excluding
advances of
construction
funds）FY2016FY2017FY2018〜

Technological development（including capital investment）
Rebuilding ICT
Real estate development（purchase and effective use ofreal estate for lease, etc.）

Headquarters building reconstruction project（design and other expenses)

Tear down /rebuild, etc.

New business（including investments and loans）
Basic Policy

Funding
PolicyCash flow improvement, secure appropriate retained earnings（Consistently have equity ratio of at least 35%）
Consider outside funding, etc.
（Consider financial soundness/
efficiency）

Implement as needed※The amount and the timing of investments for the headquarters building reconstruction and new businesses are currently
still undecided.

36

37

Reference：Business Domains and Scope of
Financial Results（Group）（Business Domain）（Scope of Financial Results）

Architectural
Construction
HQ

Architectural Construction(Japan)Civil
Engineering
HQ

Civil Engineering (Japan)

Investment &Development
Project Dept.

Investment & development

Overseas
Business
Department

Overseas

Group Control
OfficeDomestic group companies

Nonconsolidated
financialresults

Consolidated
financialresults（directly managed projects）（Local subsidiaries）

3839