Results Briefing
for the Year Ended March 31, 2016

May 16, 2016

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 of Management Plan
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, 20165

Highlights: FY2015
 Consolidated Net Sales: ¥492.6 billion, up 17.2% year-on-year：

Net sales rose 17.2% year-on-year to ¥492.6 billion, as
completed construction contracts increased.

 Operating Income: ¥21.6 billion, up 66.7% year-on-year：

Operating income increased 66.7% year on year, to ¥21.6 billion,
as gross profit on completed construction contracts improved
due to the thorough adoption of a profitability-oriented order
receipt policy.

 Orders Received (non-consolidated): ¥412.8 billion, down
8.2% year on year：

While orders for both architectural construction and civilengineering fell year on year, orders for civil engineering
exceeded the plan by 15.0% thanks to large-scale projects, andoverall orders received exceeded the plan by 3.0% to ¥412.8
billion.

6

Summary: FY2015(Billions of yen)

FY2015FY2014

Forecasts(announced on Feb.
2016)

Actuals

420.3

496.0

492.6

17.2%

-3.3

Operatingincome

12.9

19.1

21.6

66.7％

2.5

Ordinary
income

14.8

21.0

23.7

60.1%

2.7

Net income

14.0

18.8

20.0

42.9%

1.2

449.7

400.0

412.8

-8.2%

12.8

Consolidated
net sales

Ordersreceived (nonconsolidated)

ChangeDifference(year on (vs. forecast)
year)

7

Main Orders Received
Ordering Parties
Architectural Nagasaka Sangyo
Construction

Civil
Engineering

Name of Works
Nagasaka Sangyo Kyobashi Building(Kyobashi 1 chome)

Nippon Steel Kowa Real
Estate Co., Ltd.

Nittetsu Nihonbashi Building

Kuwana City Medical
CenterKuwana City Medical Center

Toyo University

Akabanedai Campus new building

Japan Post Co., Ltd.

East Chubu mail handling facility

Japan Railway
Construction, Transport
and Technology Agency

Sotetsu-Tokyu direct line, Tsunashimatunnel, etc.

Miyagi Prefecture

Disaster restoration project for
Tsuyagawa River and others (4)Kobe City

Western treatment plant north water
treatment facility*Honorific prefixes are omitted. Work names are abbreviations.

8

Main Works Completed (Architectural Construction)*Project names are abbreviation

Nishitomihisa district category one
urban redevelopment, Nishitomihisa
District Urban Development
Association

Kudanzaka Hospital complex
building work, Federation of National
Public Service Personnel Mutual Aid
Associations

9

Main Works Completed (Civil Engineering)*Project names are abbreviation

Yamoto Ishinomaki Road substructure
work, Tohoku Regional Development
Bureau, Ministry of Land, Infrastructure,
Transport and Tourism

Kinki Expressway Kisei Line
Wabukagawa Tunnel, Ministry of Land,
Infrastructure, Transport and Tourism, Kinki
Regional Development Bureau101-2. Details of Financial Results11

(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

15
companies

8
companies

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.
Chiyoda Staff Service Co., Ltd.
Other
Towa Kanko Kaihatsu Co., Ltd.

4companies

Goto Floating Wind Power LLC.

12

(Consolidated) Summary of Group Performance
FY2015Toda Corporation％

Billions of yen
Net sales

463.4

Gross profit

44.0

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

Subsidiaries Total

23.5
20.4

3.9

4.4

1.1

8.4

1.4

47.8

2.5

21.6

3.1

23.7

-1.0

-0.3

-0.7

Income before income taxes

21.2

1.0

22.9

2.4

0.2

2.7

Net income
Net income attributableto owners of the parent

18.8

4.0

0.7

1.06
9.7

1.08

4.3

1.05

4.8

1.06

4.0

1.06

2.0

Extraordinary income

Income taxes

Ratio ofconsolidated
to nonconsolidated

26.1

0.2
4.8

%
492.6

2.7

1.8
22.3

％
46.3

9.5

FY2015 Consolidated

1.7

20.1
20.0

13

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

30.0

5.5%

20.0

SG&A ratio
5.8%（consolidated）
6.0%

5.3%
26.1

26.0
23.5

23.1

Non-consolidated

23.5
4.0%

20.3

10.0

2.0%

0.0

0.0%

FY2014FY2015FY2016 (forecast)14

(Consolidated) Balance Sheets(Billions of yen)

Assets＋53.3

Noncurrent
assets76.5

Investments
and otherassets
190.8

15/3
119.4％

Construction related
assets+90.2
Securities-10.1
Real estate for sale +5.3

＋83.7

+53.3
495.4

Current
assets311.7

Buildings andstructures -0.6
Land
-0.6
Intangible assets +3.1

＋1.9

Noncurrent
assets78.4-32.3
Investment securities-30.6
Retirement benefit
assets-2.0

Current ratio

Liabilities and Net Assets

548.7

495.4

Current
assets228.0(Billions of yen)

208.7

＋59.3
Long-term loans,
bonds
+11.4
Deferred tax liabilities-12.0

Noncurrent
liabilities
103.6

Net
assets
182.9

16/3

15/3

128.7％

Construction related
liabilities+54.1
Provisions for loss on
construction-5.1
Short-term loans+1.9
Provision for bonuses +2.4

Current
liabilities

Investments
and otherassets
158.5

548.7

-5.5
Retained earnings ＋17.6
Retirement benefit
adjustment-3.3
Valuation difference on
available-for-sale securities-19.9

Equity ratio

268.1

Noncurrent
liabilities
103.2

-0.4

36.4％

Current
liabilities

Net
assets
177.4
16/3

31.9％
15

(Consolidated) Change in Investment Securities
Book value(Billions of yen)

Valuation difference

Nikkei stock average

Stock prices（yen）

19,206250

20,00016,75814,827200
12,397
150

100

50

0

82.8

Mar 2013

70.4

15,000
154.8

147.5

[値].3
60.4

185.4

110.3

Valuationdifference

10,00079.2

77.1

Mar-2014

75.2

Mar-2015

Book value

5,000

75.7
Mar 20160

16

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

＋13.3
65.5

(Billions of yen)

Long-term

79.7
72.0

66.3

13.2

45.1
33.7

52.3

D/E Ratio

32.5

34.5

Mar 2014

Mar 2015

Mar 2016Mar
2017(forecast)

0.48x

0.37x

0.45x

ー
17

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

Civil Engineering（Billions of yen）

15.5
2.1

7.6
13.4

[系列名]

2.6
[系列名]
5.0

Mar 2014-5.2

Mar 2015

2.4
1.4
1.0

Mar 2016
18

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

-4.6

59.2

54.6

Increase in funds+22.9
Income before income taxes-90.4
Notes and accounts receivable – trade
Cash and cash Costs on uncompleted construction contracts-5.3
equivalents+5.6
Real estate for saleat beginning of Notes and accounts payable – trade+42.6
periodAdvances received on uncompleted construction contracts+11.7

Financing CF
Operating CF Investing CF

Decrease in funds(Mar 31,
2015)

-8.8

Cash and cash
equivalents
at end ofperiod11.1-6.0

Investment securities
-0.1
Loans
-0.1
Property, plant and equipment -5.8

(Mar 31, 2016)
Loans and bonds ＋13.3
Dividends paid
-2.1

19

1-3. Performance Forecasts

20

Forecasts for FY2016 (Year Ending March 31, 2017)（Billions of yen)

Consolidated
net
sales

FY2015FY2016
Forecasts

Change(year-on-year)

492.6

445.0

-9.7%

-47.6

Operatingincome21.6

18.5-14.5％-3.1

Ordinary
income23.7

20.3-14.4％-3.4

Profit attributable toowners of parent

20.0

17.3

-13.7％-2.7

Orders received(non-consolidated)

412.8

４40.0

＋6.6%

＋27.1

21

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

412.8
103.6

Net Sales of Completed
Construction Contracts

Gross Profit Margin on Completed
Construction Contracts

455.5

440.0

93.3

90.0

（％）
410.0
100.0

Civil
Engineering

Civil
Engineering

9.4

309.3

350.0

Architectural
Construction

362.3

Architectural
Construction

310.0

9.4
9.4

ArchitecturalConstruction9.7 Total
9.5
Civil
Engineering[値]

FY2015FY2016(forecast)

FY2015FY2016(forecast)

FY2015FY2016(forecast)22

Non-consolidated Forecasts for FY2016
Amount（billions of yen）

Profitability（％）

Net sales

414.5

Gross profit

40.5

9.8

Profits in the construction
business

39.0

9.5

[30.0][9.7][Civil engineering]

[9.0]

[9.0]

Profits in the real estatebusiness

1.5

33.3

Selling, general andadministrative expenses

23.5

Operating income

17.0

4.1

Ordinary income

18.7

4.5

[Architectural construction]

Extraordinary income
Net income

0.0
16.2

3.9
23

2. Progress of Management Plan

President Masanori Imai

24

Focus of Medium-term Management Plan 2017
(FY2015 – FY2017)－ 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

Expand businessdomain and pursue
synergies withconstruction25

2-1. FY2015 Review

26

Achieving Medium-term Management Plan
Ahead of ScheduleAchieved both profitability and productivity
targets in FY2015(Billions of yen)

Consolidated
net sales
Operatingincome(operating
income ratio)
Labor
productivity

FY2014
actuals

FY2015
actuals

FY2017 targets

420.3

492.6

480.0

12.9

21.6

17.0

（3.1％）（4.4％）（3.5％）

11.54 million yen 14.55 million yen(initial targets)

13.00 million yen*Labor productivity＝Amount of value added（Operating income＋Total personnel costs) / Number of employees（averageduring fiscal year, including non-permanent employees, etc.)27Changes in Operating Income by Segment

Profit increase at Architectural Construction(Japan) led the rest
(Strategic businesses)

Architectural
Construction (Japan)

・ Net sales increased due to(Billions of yen)

21.6

completion of large-scale
projects
・ Gross margin rate improved
due to cost reduction

Investment & Development

・ Recorded real estate

valuation loss resulting fromasset disposal

12.9

Overseas

・ Profitability worsened as
FY2014*Figures in ( ) show y-o-y comparison

FY2015growth in emerging
countries slowed28

Capital Efficiency, Shareholder Returns
Dividend per share, payout ratio

ROE (return on equity)

Dividend per share

Payout ratio(20.0) *Medium-term goal:
20% to 30%

11.3

15.2

15.4

(yen, %)

（％）

8.8
7.8

15.3

10.0

8% or more in
the long term

7.0
5.0

2013

2014

2015

2013

(fiscal year)
*

2014

2015

Total dividends
Income before income taxes x (1 – Effective tax rate)29

Productivity-related Efforts(Sales per employee, 100 million yen)

1.25

Labor productivity of 13 million yen isachieved on this line
(FY2017 target *initial target)
1.00

FY2015 actuals
0.75

FY2014 actuals
Net sales per employee : 85 million yen
Operating income ratio : 3.0%
Labor productivity: 11.54 million yen

0.50

2.0

Net sales per employee : 102 million yen
Operating income ratio : 4.4％
Labor productivity: 14.55 million yen

3.0
4.0(Operating income ratio, %)5.0*Figures are non-consolidated basis*Labor productivity = Operating income/Number of employee (Net sales/Number of employee × Operating income ratio)＋ Overall labor cost/Number of employee

30Achievements and Issues
Performance
・ Improved incomeof medium・ Achievement
term targets ahead of

Measures・ Progress in efforts toimprove additional values

schedule

・ Make strategic businesses
profitable

・ Improve net sales per
employee (consumption

capability, work speed)

Further strengthen efforts to become No. 1 inproductivity(continue to drive forward measures by revising the targets)31

2-2. Medium-term Direction

32

Management Concept
A company that grows continuously
Continuous improvement of productivity(reform production system and work process, rebuild ICT,
mechanized construction, etc.)

Redistribution and optimization of humanresources
Acquire values throughdifferentiation

Make strategic
businesses profitable

Ensure and distribute fair profits(Realize joy for stakeholders and contribute to social development)
33

Process for Achieving Continuous Growth
Steady construction
investment

Intensifiedcompetition

Decline ininvestment

Labor productivity = Amount of value added
Make strategic
businesses profitable(Change in construction
investment)(Net Sales)

Investment development, add manpoweroverseas and at group companies

430.0 billion yen

Acquire values throughdifferentiation
Enhance competitiveness of
the Architectural
Construction business377.9 billion yen

FY2014Raise completed
construction rate
Increase the gross profit
amount

FY2017

FY2020 onwards
34

Benchmarks to Be Achieved (FY2020 onwards)

Consolidated
net sales

About

Operatingincome ratio

4.5 ％ or more

Labor
productivity

14 million yen or more

*Labor productivity is on a non-consolidated basis

500 billion yen

35Medium-term Targets (Revised)(Billions of yen)

FY2015FY2016FY2017FY2017

Actuals

Forecasts

Revised targets

Initial targets

Consolidated net sales

492.6

445.0

480.0

480.0

Architectural Construction(Japan)

361.4

309.0

330.0

330.0

Civil engineering (Japan)

92.0

98.0

100.0

97.5

Investment & Development

7.9

4.5

5.0

5.0

Overseas

13.8

14.8

20.0

25.0

Domestic groupcompanies

34.5

34.0

40.0

40.0

Consolidated eliminations

-17.2

-15.3

-15.0

-17.5

Operating income

21.6

18.5

20.0

17.0

Operating income ratio

4.4％

4.2％

4.2%

3.5%

Labor productivity

14.55

13.00

13.20

13.00

Non-consolidated, (millions of yen)

36

Profit Targets by Business(Billions of yen)

FY2015FY2016FY2017FY2017

Actuals

Forecasts

Revised targets

Initial targets

Operating income

21.6

18.5

20.0

17.0

Architectural
Construction (Japan)

17.9

14.0

14.0

11.5

Civil engineering(Japan)

3.7

4.0

4.5

3.6

Investment &Development

-0.0

0.1

0.2

0.5

Overseas

-1.3

-0.7

0.5

0.7

Domestic groupcompanies

1.4

1.1

0.8

0.7

Consolidated
eliminations

-0.0

－

－

－

37

2-3. Key Initiatives for FY2016

38

Production System Reform,
Business Process Re-engineering

Build a highly productive business promotion
structure
Promote front loading

Re-build business processes(Business process reengineering activities)(Utilization of BIM, CIM)

Effect of reduced
business hours

Facility integration
model(FY2015 improvement
proposal)

FY2014 Construction model3D perspective* BIM: Building Information Modeling
CIM: Construction Information Modeling

FY2016

Business process
re-engineering activities
ICT reconstruction

Create newbattle force

Standardization, laborsaving*In FY2015 (from Feb. 2015 to Jan. 2016), activities were
implemented mainly by Kanto branch

39Technological Development
Unmanned and automated construction system*Brushing up existing technologies – an image
Toda-type automatedconstruction system–Roof Robot-

Chimurisu chimney Board separating machinefor composite boards
dismantling

A list of robots Toda has developed
Toda will contribute to the society and theenvironment by leveraging the high-quality,
safety and high efficiency of robots.
Automated metal bar
plumbing adjustment system

Underground conveyancesystemSmall-scale anchor
Environment boringmachine forseismic reinforcement

Automated spraying
robot
TN-Fukkun

Maintenancelarge-scale anchor
boring robot

Iron sheet fitting robot forseismic reinforcement

FinishCW fitting robot

3D movable gantry

NEO cutter
construction method
Module robot

Building
framesAutomated elevating
scaffold TO-ALIS

ALC fitting machine

steel unit
Temporary Reinforcing
fitting machine

Changing the end effector enables it to
grab various things such as glass, ALC
and iron sheet.

Automated finish
conveyance system

Glass fitting robot

All weather temporary
roof Sky-roof
Large-sized formwork
unit fitting machine40

Institute of Construction Technology
Facility Development
Tsukuba Institute of Construction
Technology facility layout drawing
shows facilities to be newly
constructed or renovated
TNH

Outside testing field

Clean
room

Environmental Technology
Verification Block(to be newly constructed)

Acoustic
block

Tent
warehouse

Actual size
vibration test
facility

Environmental
block

Reverberation
room

Overall picture

Large-scaletesting block

Generaltesting blockMainbuilding

Welfareblock(Temporary name) Environmental
Technology Verification Block
To verify environment-related technologies
to be introduced at the new head officebuilding (Redevelopment Kyobashi 1chome East Side Zone B). In the future, weplan to renovate it into a facility that aims
to become carbon minus(Rendering)Work period: from May 2016 to March 2017
*Some of infrastructural works to last till May

41

Collaboration with Other Industries
Contribute to social development together
with partners
Technology development of building
facilities, maintenance management

Urban development initiatives
Sixth-order industrialization of agriculture;promoted in Joso City, Ibaraki Prefecture

Building medical system Yure Kanchi (tremor
detection)

Consolidation and expansion ofscale through land reallocation

Administrator can confirm
status using PC, smartphones,
etc.

Cloud

Facility Development
projects suchgardening as directbusiness sales outlets,

Tremordetector
Uploads
earthquake
measurement data
onto cloud

RouterWeb camera

Direct sales outletetc.

It can manage multiple
buildings at once
Internet

Greenhousecultivation facility

LAN cable

Tremordetector

Tremordetector

Show paddy fields*It uses acceleration sensor made by Murata
Manufacturing Co., Ltd.

DividingIndustrial
clusterpaddy
development
fields into projects
large
sections

Logistics facility

Processing plant*Toda Corp. participates as business partner
42

Promotion of Investment & Development
Business
Advancing initiatives for future revenue
Redevelopment of Kyobashi 1chome East Side

Floating offshore wind power
generation businessPhoto by Hoichi Nishiyama(Rendering)

Started demolition work of first zones (zone A
and C). Carrying out discussions on newurban development(Power plant commencement ceremony in Goto,
Nagasaki Prefecture, on April 15, 2016 )Practical application of power facilities. Along withdata gathering, accumulating knowledge on
operation maintenance management

43Conclusion: Positioning of FY2016
Establish a strong earnings structure to moveinto the next growth stage
FY2015FY2016No.1 in Productivity
Foundation for Growth
Preparing for theleap
Strengthen
implementation of
productivity initiatives
Promote strategic
businesses

FY2017FY2018 onwards

Consolidated net sales ¥480.0 bln
Operating income¥20.0 bln
Labor productivity¥13.20 mil(resetting earnings targets)

Deployment ofdifferentiation
technology
Business investment

44

A corporate group that makes
Your success possible45