Consolidated Financial Results
for the FY2013
Ended March 31, 2014―1―

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results1) Operating Results for the Fiscal Year ended March 31, 2014
The Japanese economy underwent a gradual recovery during the fiscal year ended March 31, 2014, as
evidenced by improvements in areas such as capital investments, the employment environment, andpersonal consumption. In the construction industry, there was a significant increase in both public sector
construction and private sector construction as a result of factors including reconstruction demand fromthe Great East Japan earthquake and the last-minute rise in demand before the increase in the consumption
tax. Nonetheless, the operating environment remains difficult overall as a result of deepening concerns
towards soaring prices for materials and shortage of construction workers.
Under these circumstances, the results for the Group on a consolidated basis were as follows.
Consolidated net sales decreased 9.7% year on year to ¥448.9 billion mainly due to the decrease incompleted construction contracts by the Company and domestic subsidiaries.
In terms of operating income and loss, while the business environment for the Group's core construction
business remained challenging, the gross profit margin grew 10.6 points year on year to 5.7% as result of
an improvement in the gross profit margin on completed construction contracts achieved through a shift toa policy of focusing on getting profitable orders and making careful estimates to ensure profitable
construction. As a result, a gross profit of ¥25.4 billion was recorded (compared to a gross loss of ¥24.6
billion during the previous fiscal year). In addition, selling, general and administrative expenses declined
7.7% year on year to ¥20.6 billion due to reductions in administrative expenses. As a result of these above
factors, the Group recorded operating income of ¥4.7 billion (compared to an operating loss of ¥46.9
billion during the previous fiscal year).
In terms of ordinary income and loss, the Group posted ordinary income of ¥6.5 billion (compared to an
operating loss of ¥45.5 billion during the previous fiscal year) owing to factors including the receipt ofinterest income and the receipt of dividend income on investment securities held.
The Group recorded net income of ¥10.2 billion (compared to a net loss of ¥65.2 billion during theprevious fiscal year) as a result of the posting of ¥4.1 billion in gains on sales of investment securities as
extraordinary income as a result of sales of investment securities after a review of holdings.
The results for each segment were as follows. Segment result include internal sales or transfers between
segments.
Architectural Construction Business
The segment recorded net sales of ¥347.0 billion (down 13.0% year on year) and operating income of¥5.8 billion (compared to an operating loss of ¥41.8 billion during the previous fiscal year).
On a non-consolidated basis, segment orders received increased by 46.3% year on year for the private
sector (domestic), and overall orders received (including overseas) grew by 39.6% year on year to¥357.2 billion.
Civil Engineering Business
The segment recorded net sales of ¥90.6 billion (up 2.4% year on year) and operating income of ¥3.9
billion (compared to an operating loss of ¥0.9 billion during the previous fiscal year).
On a non-consolidated basis, segment orders received were strong for both the private sector(domestic) and public sector (domestics), increasing overall orders received (including overseas) by
16.8% year on year to ¥97.1 billion.
Real Estate Business
The segment recorded net sales of ¥14.6 billion (up 3.5% year on year) and operating income of ¥2.4
billion (up 60.4% year on year).
―2―

Other Businesses
The segment recorded net sales of ¥1.0 billion (down 12.7% year on year) and operating income of¥0.006 billion (compared to an operating loss of ¥0.03 billion during the previous fiscal year).
2) Outlook for the Fiscal Year ending March 31, 2015
In terms of the future economic outlook, while there is expected to be a rebound from the last-minute
rise in demand before the increase in the consumption tax, it is believed that this effect will graduallyfade and that a gentle recovery will continue. On the other hand, there are concerns that issues such as
materials prices and labor shortages that the construction industry is faced with will become more
serious.
In consideration of these factors, the forecast for the next fiscal year is as follows.
We expect consolidated net sales of ¥427.0 billion (down 4.9% year on year). In terms of profits, we
expect operating income of ¥3.9 billion (down 18.5% year on year), ordinary income of ¥5.3 billion(down 19.5% year on year), and net income of ¥4.7 billion (down 54.1% year on year).
On a non-consolidated basis, we expect orders received of ¥366.5 billion (down 20.8% year on year),net sales of ¥390.0 billion (down 4.8% year on year), operating income of ¥3.0 billion (down 36.0%
year on year), ordinary income of ¥4.3 billion (down 31.4% year on year), and net income of ¥4.2
billion (down 54.5% year on year).
(2) Analysis of Financial Position
1) Assets, liabilities, and net assets
AssetsTotal assets as of March 31, 2014 were ¥473.5 billion, down by ¥26.6 billion compared with the endof the previous fiscal year. This was due to an increase in securities by ¥8.1 billion and an increase ininvestment securities by ¥4.2 billion being outweighed by a decrease in notes receivable, accounts
receivable from completed construction contracts and other by ¥40.6 billion and a decrease in realestate for sale by ¥3.4 billion.
Liabilities
Total liabilities as of March 31, 2014 were ¥331.6 billion, down by ¥40.4 billion compared with theend of the previous fiscal year. This was due to an increase in advances received on uncompleted
construction contracts by ¥3.1 billion and an increase in deferred tax liabilities by ¥2.7 billion being
outweighed by a decrease in notes payable, accounts payable for construction contracts and other by¥37.4 billion, interest-bearing debt by ¥7.8 billion and a ¥7.6 billion reversal in a provision for loss on
construction contracts.
Net assets
Total net assets as of March 31, 2014 were ¥141.8 billion, up by ¥13.7 billion compared with the endof the previous fiscal year, and the equity capital ratio was 29.1%. This was due to factors including
the recording of net income of ¥10.2 billion and an increase in valuation difference on available-forsale securities of ¥5.4 billion as a result of an increase in the market value of shares held.
2) Cash Flows
Cash and cash equivalents at the end of the fiscal year (hereinafter “cash”) increased by ¥14.0 billion(29.3%) from the previous fiscal year-end to ¥62.0 billion.
Cash Flows from Operating Activities
Net cash provided by operating activities was ¥12.1 billion (compared to net cash used in operating
activities of ¥17.7 billion during the previous fiscal year). This was due to income before income taxesof ¥11.0 billion as well as proceeds from a ¥41.0 billion decrease in notes and accounts receivabletrade and a ¥3.0 billion increase in advances received on uncompleted construction contracts, anddespite expenditures for a ¥2.4 billion increase in costs on uncompleted construction contracts and a¥37.9 billion decrease in notes and accounts payable-trade.
―3―Cash Flows from Investing Activities
Net cash provided by investing activities was ¥11.4 billion (compared to net cash used in investing
activities of ¥0.4 billion during the previous fiscal year). This was due to proceeds from sales ofproperty, plant and equipment of ¥3.1 billion yen, proceeds from sales and redemption of investment
securities of ¥10.1 billion yen, and despite expenditures for purchases of property, plant andequipment of ¥1.6 billion yen.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥10.2 billion (compared to net cash provided by investing
activities of ¥13.8 billion during the previous fiscal year). This was due to expenditures for the
repayment of commercial paper of ¥11.0 billion and cash dividends paid of ¥1.5 billion, and despite
proceeds from an increase in loans payable of ¥3.1 billion.
The Group's cash flow indices are as follows.
For the years ended
March 31
Equity ratio
Equity ratio
on a market price basis
Number of years
to redeem debt
Interest coverage ratio
Notes:

2010

2011

2012

2013

2014

38.1%

37.3%

34.4%

24.7%

29.1%

20.8%

20.4%

17.8%

13.8%

22.3%

1.9

5.6

－

－

5.4

33.4 times

13.2 times－－

14.1 times

Equity ratio = shareholders’ equity /total assets
Equity ratio on a market price basis = market capitalization / total assets
Number of years to redeem debt = interest-bearing debt / cash flows
Interest coverage ratio = cash flows / interest payments*The indices are calculated based on consolidated financial figures.
* Market capitalization is calculated by multiplying the stock price at the end of the fiscal year by the number ofoutstanding shares at the end of the fiscal year excluding treasury stock.
*Cash flows from operating activities are used for cash flows.
*Interest-bearing debt is all of the liabilities recorded on the consolidated balance sheets for which the Company ispaying interest.

(3) Basic Policy on Profit Distribution and Dividends in the Fiscal Year ended March 31, 2014 and the
Fiscal Year ending March 31, 2015
The Company's basic policy is to distribute profit based on business results and the business environment
after giving consideration to the provision of continuous and stable dividends to shareholders while
securing sufficient retained earnings essential for improving the Company's competitiveness and its
financial position.
In consideration of the policy above, the Company will pay an annual dividend of ¥5 per share. The
Company plans to continue paying an annual dividend of ¥5 per share for the following fiscal year basedon this policy above.
(4) Business Risks
The major risks affecting the Group's business that are believed likely to have a material impact on thedecisions of investors are described below. Note that matters related to future developments that are
mentioned in this section are judgments of the Group that were made as of the end of the fiscal year underreview.

―4―1) Trends in Construction Investments and Prices
The Group's business could be affected in the event of a significant decrease in construction investments
as a result of a deterioration in economic conditions or the occurrence of unexpected events. In addition,
the Group's business could be affected in the event of the supply prices of major construction materials
rising drastically and it being difficult to incorporate this in contract price.
2) Construction Work Risks
The Group's business could be affected in the event of major defects caused by flaws in properties
designed or constructed by the Group. In addition, the Group's business could be affected in the event ofa major unexpected accident during construction.
3) Counterparty Credit Risk
In the construction business, in some cases there are construction work payments that remain
uncollected when the constructed property is delivered. For this reason, the Group's business could be
affected in the event of the counterparty undergoing credit uncertainties and it becoming impossible tocollect the construction work payment. In addition, the Group's business could be affected in the eventof suppliers or subcontractors undergoing credit uncertainties.
4) Legal and Compliance Risk
The Group's business is subject to legal restrictions such as the Construction Industry Act, the BuildingStandards Act, the City Planning Act, the Companies Act, the Financial Instruments and Exchange Act,and the Antimonopoly Act. The Group's business could be affected in the event of violations of these
legal restrictions or in the event of the amendment or abolishment of legislations, the establishment of
new legal regulations, or changes to application standards.
5) Disaster Risk
The Group's business could be affected in the event of a natural disaster such as an earthquake or a manmade disaster causing a severe impediment making it difficult for the Group to continue its business.
6) Country Risk
The Group conducts business in various countries overseas, and as a result the Group's business could
be affected in the event of cases such as drastic changes to political or economic conditions, significant
fluctuations in exchange rates, and unexpected changes to legal restrictions.
2. Management Policy(1) The Company's Basic Management Policy
Since foundation, the Company's guiding precepts have been quality, construction time frames, and safety.
In addition, the Company's management policy is to increase its corporate value for customers, society,shareholders, business partners, and employees through sound management and to expand its businessbased on the trust gained.
Based on this policy, the Company and Group companies provide services throughout the life cycle ofbuildings with a focus on construction and under an adequate risk management system. In the expansionof its business, the Company aims to utilize the abundant experience and technologies it has developed
over many years while it works to improve its engineering capabilities in order to contribute to theresolution of diversifying issues. In addition, the Company seeks to deliver the highest quality buildings
and service to customers while giving sufficient consideration to the environment.
(2) Medium and Long-term Corporate Management Strategy and Issues to be Addressed
The Group established a Medium-term Management Plan in May 2012 based on the pillars of improving
profits from construction work and achieving a Group-wide growth strategy, and it has since implemented
business structural reforms in line with this plan. The Group especially views improving profits fromconstruction work to be a current priority item, and in November 2012 the Group revised performancetargets and major policies in an effort to ensure the recovery of business performance.
―5―[Performance targets]
FY 2015
Consolidated net sales
Operating income ratio

Approximately¥400 billion
At least 2%[Major Policies (summary)]1) Improve Profits from Construction Work
Ensure that profits are achieved by improving profitability through selecting orders received,
improving construction management structure, and revising the cost structure.
2) Group-wide Growth Strategy
Shift from an individual project-oriented approach of pursuing business scale to a solution-oriented
approach of deepening relationships with customers to secure earnings continuously from every stageof the construction life cycle.
(Basic Strategies)
・Concentrate management resources on medium-sized projects.
・Reinforce aftercare business for completed construction (maintenance and management,
renovation, and other services).
・Build an earnings base to complement the domestic architectural construction business.

―6―3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other
Securities
Real estate for sale
Costs on uncompleted construction contracts
Other inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, vehicles, tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets―7―

As of March 31, 2013

As of March 31, 2014

38,782

44,296

164,719

124,056

9,900

18,05024,845

21,385

20,17922,629

463

801

61

72

13,87813,517(1,018)(795)

271,811

244,014

16,354

14,022724

765

60,87860,613

185

191

53

10

78,19675,602

316

－

2,721

2,868

3,037

2,868

143,300

147,572

1,336

1,325

213

169

3,786

3,184

(1,483)(1,227)

147,154

151,024

228,387

229,495

500,199473,510(Millions of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts andotherShort-term loans payable
Commercial paper
Income taxes payable
Advances received on uncompleted construction contracts
Provision for bonuses
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for loss on litigation
Deposits received
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
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 accumulated other comprehensive income

As of March 31, 2013

As of March 31, 2014

155,148

117,656

41,76552,353

11,000

－

607

798

34,34137,455

1,072

2,863

1,471

2,773

23,195

15,545985

435

11,58915,936

12,814

12,933

293,993258,752

20,652

13,206

22,372

25,102

9,557

9,418

21,355

－

181

172

－

21,824

145

149

3,844

3,004

78,11072,877372,103

331,629

23,001

23,00125,50225,50436,72345,472(5,987)(6,007)

79,24087,97140,04645,477

1

－

5,940

5,722

(1,611)

(700)

－

(522)

44,37649,977

Minority interests

4,478

3,930

Total net assets

128,095

141,880

500,199473,510

Total liabilities and net assets―8―(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Year ended March 31, Year ended March 31,
2014
2013
(April 1, 2012 through (April 1, 2013 throughMarch 31, 2013)
March 31, 2014)
Net sales
Net sales of completed construction contracts
Net sales of real estate business and other483,649

Total net sales
Cost of sales
Cost of sales of completed construction contracts
Cost of sales on real estate business and otherTotal cost of sales
Gross profit
Gross profit (loss) on completed construction contracts
Gross profit on real estate business and otherTotal gross profit (loss)

434,958

13,39914,028497,048448,987

510,774

412,916

10,917

10,644

521,691

423,561(27,124)

22,042

2,481

3,383

(24,643)

25,425

Selling, general and administrative expenses

22,354

20,643Operating income (loss)(46,997)

4,782

Non-operating income
Interest income
Dividend income
Dividend income of insurance
Other

263

272

1,856

1,928

221

269

317

426

Total non-operating income

2,657

2,897

785

855

155

188

227

－

73

51

Non-operating expenses
Interest expenses
Commission fee
Provision of allowance for doubtful accounts
Other
Total non-operating expenses

1,242

1,095

(45,581)

6,584

242

490

Gain on sales of investment securities
Reversal of provision for loss on litigation
Gain on bargain purchase
Other

1,812

4,161

－

550

－

133

51

1

Total extraordinary income

2,107

5,336

Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets―9―

(Millions of yen)
Year ended March 31, Year ended March 31,
2014
2013
(April 1, 2012 through (April 1, 2013 throughMarch 31, 2013)
March 31, 2014)
Extraordinary loss
Loss on sales of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Provision for loss on litigation
Other

95

15

919

684

454

2

1,822

139

985

－

125

36

Total extraordinary losses

4,402

879

Income (loss) before income taxes(47,876)

11,041

Income taxes-current
Income taxes-deferred

713

732

16,420(194)

Total income taxes

17,134

538

Income (loss) before minority interests(65,010)

10,503274

274(65,285)

10,228

Minority interests in income
Net income (loss)―10―

Consolidated Statements of Comprehensive Income(Millions of yen)
Year ended March 31, Year ended March 31,
2014
2013
(April 1, 2012 through (April 1, 2013 throughMarch 31, 2013)
March 31, 2014)
Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment(65,010)

10,50323,063

5,423

(56)

(1)

486

948

23,494

6,370

Comprehensive income(41,516)

16,874Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests(41,847)

16,569330

305

Total other comprehensive income―11―(3) Consolidated Statements of Changes in Net Assets
Year ended March 31, 2013 (April 1, 2012 through March 31, 2013)(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of
period23,00125,502Retainedearnings
103,746

Treasury
stock

Total
shareholders’equity(5,956)146,293

Changes during period
Dividends from surplus(1,868)(1,868)Net income (loss)(65,285)(65,285)

Purchase of treasury
stock

(30)

(30)

Reversal of revaluation
reserve for land

133

133

Other

(2)

(2)

Net changes other thanshareholders’ equity
Total changes during period
Balance at end of

period－－(67,022)(30)(67,052)

23,00125,502

36,723(5,987)

79,240

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses on reserve foravailable-forland
hedgessale securities
Balance at beginning of
period17,007

57

6,073

Total
Remeasurements
Foreignaccumulatedof definedcurrency
otherbenefit planstranslation
comprehensive
adjustment
income(2,066)－

21,071

Minority
interests

4,172

Total net
assets

171,537

Changes during period
Dividends from surplus(1,868)Net income(loss)(65,285)

Purchase of treasury
stock
Reversal of revaluation
reserve for land

(30)
133

Other

(2)

Net changes other thanshareholders’ equity

23,039

(56)

(133)

455

－

23,305306

23,611

Total changes during period

23,039

(56)

(133)

455

－

23,305306(43,441)

Balance at end of period

40,0461

5,940(1,611)－44,376

4,478

128,095―12―

Year ended March 31, 2014 (April 1, 2013 through March 31, 2014)(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of
period23,00125,502Retainedearnings
36,723

Total
Treasury stock shareholders’equity(5,987)

79,240Changes during period
Dividends from surplus(1,556)(1,556)

Net income (loss)

10,228

10,228Purchase of treasury
stock

(19)

Reversal of revaluation
reserve for land

(19)

217

217

1

(140)

(138)

－

1

8,749

(19)

8,731

23,00125,50445,472(6,007)

87,971Other
Net changes other thanshareholders’ equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses on reserve foravailable-forland
hedgessale securities
Balance at beginning of
period40,046

1

5,940

Total
Remeasurements
Foreignaccumulatedof definedcurrency
otherbenefit planstranslation
comprehensive
adjustment
income(1,611)－44,376

Minority
interests

4,478

Total net
assets128,095

Changes during period
Dividends from surplus(1,556)

Net income(loss)

10,228Purchase of treasury
stock
Reversal of revaluation
reserve for land

(19)
217

Other

(138)

Net changes other thanshareholders’ equity

5,431

(1)

(217)

910

(522)

5,600

(547)

5,053

Total changes during period

5,431

(1)

(217)

910

(522)

5,600

(547)

13,784

Balance at end of period

45,477

－

5,722

(700)

(522)

49,977

3,930

141,880―13―

(4) Consolidated Statements of Cash Flows(Millions of yen)
Year ended March 31, Year ended March 31,
2014
2013
(April 1, 2012 through (April 1, 2013 throughMarch 31, 2013)
March 31, 2014)
Net cash provided by (used in) operating activities(17,757)

12,171

Net cash provided by (used in) investing activities(445)

11,441

Net cash provided by (used in) financing activities

13,834(10,248)

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

360

680

(4,008)14,045

Cash and cash equivalents at beginning of period

52,02448,015

Cash and cash equivalents at end of period

48,01562,061―14―

4. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2013

As of March 31, 2014

21,433
3,545
154,798
9,900
23,235
19,294
11
301
4,901
9,495
1,076
(2,768)30,394
2,199
115,010
18,05019,794
20,950
10
413
1,657
9,780
1,872
(988)

245,226

219,147

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

33,709(19,638)

31,626(20,007)

Buildings, net

14,071

11,6181,430(1,193)

1,429(1,224)

AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable from completed construction contracts
Securities
Real estate for sale
Costs on uncompleted construction contracts
Costs on real estate business
Raw materials and supplies
Accounts receivable-other
Advances paid
Other
Allowance for doubtful accounts
Total current assets

Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold right
Software
Other
Total intangible assets

―15―

236

204

8,174
(7,723)

8,065(7,577)

451

487

106
(99)

102
(98)

7

4

1,506
(1,346)

1,536(1,362)160

174

57,543369(190)

56,888
398
(211)

179

186

53

5

72,70469,570

2,055
684
13

2,055
794
8

2,752

2,858

(Millions of yen)

Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in other securities of subsidiaries and affiliates
Investments in capital
Long-term loans receivable
Long-term loans receivable from employees
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy, claims provable inrehabilitation and other
Long-term prepaid expenses
Long-term non-operating accounts receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Electronically recorded obligations - operating
Accounts payable for construction contracts
Short-term loans payable
Commercial paper
Lease obligations
Accounts payable-other
Income taxes payable
Advances received on uncompleted construction contracts
Deposits received
Provision for bonuses
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for loss on litigation
Deposits received from employees
Other
Total current liabilities

As of March 31, 2013

As of March 31, 2014

138,849
3,846
1,055
2
549
13
723

143,479
3,770
1,055
50
549
12
736

146

71

71
830
2,022
(1,472)

35
542
1,793
(1,224)

146,639

150,872

222,096

223,301

467,322442,449

17,031

12,963
10,211
87,973
46,611－
132,300
31,29811,00064
1,678
512
33,34910,675873
1,440
23,143
985
5,479
4,917
274,752

―16―

－
57
1,047
560
35,612
14,964
2,704
2,669
15,502
435
5,298
5,994
242,606

(Millions of yen)Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Provision for loss on business of subsidiaries and affiliates
Asset retirement obligations
Other
Total noncurrent liabilities

As of March 31, 2013

As of March 31, 2014

20,652
127
22,132
9,557
20,555
99
199
114
2,976

13,106
135
24,935
9,418
20,513
89
132
115
2,144

76,41670,591

351,168

313,197

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus

23,001

23,001

25,57325,573

Total capital surplus

25,57325,573

5,750

5,750

83,274(61,432)

18,774
10,964

27,59235,489Treasury stock(5,987)(6,007)

Total shareholders’ equity

70,18078,05640,032
1
5,940

45,47145,974

51,194

116,154

129,251

467,322442,449

Total liabilities

Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings

Valuation and translation adjustment
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

―17―

－
5,722

(2) Non-consolidated Statements of Income(Millions of yen)
Year ended March 31, Year ended March 31,
2014
2013
(April 1, 2012 through (April 1, 2013 throughMarch 31, 2013)
March 31, 2014)
Net sales
Net sales of completed construction contracts
Net sales of real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction contracts
Cost of sales on real estate businessTotal cost of sales
Gross profit
Gross profit (loss) on completed construction contracts
Gross profit on real estate businessTotal gross profit (loss)
Selling, general and administrative expenses
Directors’ compensations
Employees’ salaries and allowances
Provision for bonuses
Provision for directors’ retirement benefits
Retirement benefit expenses
Legal welfare expenses
Welfare expenses
Repair and maintenance
Stationery expenses
Correspondence and transportation expenses
Power utilities expenses
Research study expenses
Advertising expenses
Provision of allowance for doubtful accounts
Entertainment expenses
Contribution
Rents
Depreciation
Taxes and dues
Insurance expenses
Miscellaneous expenses
Total selling, general and administrative expenses
Operating income (loss)―18―452,585
7,708

401,2938,220

460,293409,513481,533
6,133

380,6385,869

487,666

386,507(28,947)
1,574

20,6552,350(27,373)

23,005

217
9,626
288
42
881
1,293
680
226
765
854
90
627
241
(155)
497
85
662
305
736
26
2,113

212
8,254
1,574
41
885
1,202
722
225
653
710
92
489
142
(466)
420
31
632
298
654
23
1,516

20,10918,318(47,482)

4,687

(Millions of yen)
Year ended March 31, Year ended March 31,
2014
2013
(April 1, 2012 through (April 1, 2013 throughMarch 31, 2013)
March 31, 2014)
Non-operating income
Interest income
Interest on securities
Dividend income
Dividend income of insurance
Miscellaneous income

65
30
1,894
221
258

72
5
1,956
269
307

Total non-operating income

2,471

2,610

815
155
231
56

798
188

1,259

1,028

(46,270)

6,270

Non-operating expenses
Interest expenses
Commission fee
Provision of allowance for doubtful accounts
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets

－
41

229

488

Gain on sales of investment securities
Reversal of provision for loss on litigation
Other

1,812
－
100

4,118
550
68

Total extraordinary income

2,142

5,224

919
454
1,937

396

Extraordinary loss
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries and affiliates
Provision for loss on litigation
Loss on business of subsidiaries and affiliates
Other

－
985
415
180

－
114
1,465
－
－
231

Total extraordinary losses

4,893

2,207

Income (loss) before income taxes(49,021)

9,287

Income taxes-current

300

192

Income taxes-deferred

17,015(140)

Total income taxes

17,31552

Net income (loss)(66,337)

9,235

―19―

(3) Non-consolidated Statements of Changes in Net Assets
Year ended March 31, 2013 (April 1, 2012 through March 31, 2013)(Millions of yen)
Shareholders’ equity
CapitalsurplusRetained earnings
Total
retainedearnings

Treasury
stock

Total
shareholders’equity(18,239)

95,679(5,956)138,297

21,000－－(1,868)(1,868)(1,868)

3,893

－

－

(66,337)(66,337)(66,337)

Other Retained earnings
Capital stock Legal capitalsurplus

Balance at beginning of period

23,001

25,573Legalretainedearnings

Reserve foradvanceddepreciationof noncurrent
assetsGeneralreserve

Retainedearnings
brought
forward

5,750

3,893

104,274(21,000)

Changes during period
Reversal of general reserve
Dividends from surplus
Reversal of reserve foradvanced depreciation of
noncurrent assets(3,893)

Net income (loss)
Purchase of treasury stock

－

(30)

(30)

Reversal of revaluation
reserve for land

133

133

133

Other

(15)

(15)

(15)

Net changes other thanshareholders’ equity
Total changes during period
Balance at end of period

―

―

―

(3,893)(21,000)(43,193)(68,087)(30)(68,117)

23,001

25,573

5,750―

83,274(61,432)

27,592(5,987)70,180

Valuation and translation adjustments
Valuation
Deferreddifference on
gains oravailablelosses on
for-salehedgessecurities
Balance at beginning of period

17,017

57

Total
Revaluation valuation Total net assets
andreserve fortranslation
land
adjustments
6,073

23,149161,447

Changes during period
Reversal of general reserve－

Dividends from surplus(1,868)

Reversal of reserve foradvanced depreciation of
noncurrent assets
Net income (loss)(66,337)

Purchase of treasury stock(30)

Reversal of revaluation
reserve for land

133

Other

(15)

Net changes other thanshareholders’ equity

23,014

(56)

(133)

22,82522,825

Total changes during period

23,014

(56)

(133)

22,825(45,292)

Balance at end of period

40,032

1

5,940

45,974

116,154―20―

Year ended March 31, 2014 (April 1, 2013 through March 31, 2014)(Millions of yen)
Shareholders’ equity
CapitalsurplusRetained earnings

Other Retained earnings
Capital stock

Balance at beginning of period

23,001

Legal
Legal capitalretained
surplusearnings

25,573

Reserve foradvanceddepreciationof noncurrent
assets

5,750

Retainedearnings
brought
forwardGeneralreserve

Total
retainedearnings

Treasury
stock

Total
shareholders’equity(5,987)70,18083,274(61,432)

27,592(64,500)

64,500－－

Dividends from surplus(1,556)(1,556)(1,556)

Net income (loss)

9,235

9,235

9,235

－

Changes during period
Reversal of general reserve

Purchase of treasury stock－Reversal of revaluation
reserve for land

217

217

(19)

(19)
217

Net changes other thanshareholders’ equity
Total changes during period
Balance at end of period

－

－

－

－

(64,500)

72,396

7,896

(19)

7,876

23,001

25,573

5,750－

18,774

10,96435,489(6,007)78,056

Valuation and translation adjustments
Valuation
Deferreddifference on
gains oravailablelosses on
for-salehedgessecurities
Balance at beginning of period

40,032

1

Total
Revaluation valuation Total net assets
andreserve fortranslation
land
adjustments
5,940

45,974

116,154

Changes during period
Reversal of general reserve－

Dividends from surplus(1,556)

Net income (loss)

9,235

Purchase of treasury stock(19)

Reversal of revaluation
reserve for land217

Net changes other thanshareholders’ equity

5,439

(1)

(217)

5,220

5,220

Total changes during period

5,439

(1)

(217)

5,220

13,096

Balance at end of period

45,471－

5,722

51,194

129,251―21―

5. Other(1) Summary of Consolidated Results and Forecasts(Millions of yen)Six-month Period from April

YoY (b)-(a)FY2012FY2013

FY2014

ActualActual(a)

Forecast(b)

AmountPercentage (%)

Net sales

212,830

208,387

186,000-22,387-10.7

Construction
business

205,952

200,434

180,000-20,434-10.2

Domestic

196,439

189,115

170,700-18,415-9.7

Overseas

9,513

11,3199,300-2,019-17.8

Real estatebusiness

6,877

7,953

6,000

-1,953-24.6

Domestic

6,643

7,654

5,688

-1,966-25.7

Overseas

234

299

312

12

4.3

Gross profit(3,145)

15,64010,500-5,140-32.9

Profit margin-1.5 %

7.5 %

5.6 %

(4,748)

13,691

9,000-4,691-34.3-2.3 %

6.8 %

5.0 %

1,602

1,948

1,500

-448

-23.0

23.3 %

24.5 %

25.0 %

SG&A expenses

11,2699,747

11,000

1,252

12.8

Operating income (loss)(14,415)

5,892

(500)

-6,392-Non-operating income(loss)

807

772

600

-172

-22.3

Ordinary income (loss)(13,608)

6,665

100

-6,565-98.5

Extraordinary income(loss)(3,129)4,623--4,623-

Income (loss) before
income taxes(16,737)

11,288100-11,188-99.1

Income taxes andminority interests

17,086

178

240

61

34.4

Net income (loss)(33,824)

11,109(140)-11,249-

Construction
business
Real estatebusiness―22―

(Millions of yen)
Full Year
FY2012FY2013

FY2013

Actual(a)

Revisedforecast as
of Feb. 12,
2014

Actual(b)

AmountPercentage(%)

Forecast(c)

AmountPercentage(%)

Net sales

497,048450,000

448,987-48,061-9.7

427,000-21,987-4.9

Construction
business

483,649

437,300

434,958-48,690-10.1

413,000-21,958-5.0

Domestic

463,042

411,900

411,549-51,493-11.1

393,500-18,049-4.4

Overseas

20,60625,40023,409

2,802

13.6

19,500-3,909-16.7

Real estatebusiness

13,39912,70014,028629

4.7

14,000-28-0.2

Domestic

12,924

12,10013,420495

3.8

13,375-45-0.3

Overseas

474

600

607

133

28.1

625

17

2.8

(24,643)

26,10025,42550,068-26,400974

3.8-5.0 %

5.8 %

5.7 %

(27,124)

22,80022,042757

3.4-5.6 %

5.2 %

5.1 %

2,481

3,300

3,383

216

6.4

18.5 %

26.0 %

24.1 %

SG&A expenses

22,354

21,40020,643-1,710-7.7

22,5001,856

9.0Operating income (loss)(46,997)

4,700

4,782

51,779

-

3,900

-882

-18.5

Non-operating income(loss)

1,415

1,300

1,802

386

27.3

1,400

-402

-22.3

Ordinary income (loss)(45,581)

6,000

6,584

52,166-5,300-1,284-19.5

Extraordinary income(loss)(2,295)

4,500

4,457

6,752

-

-

-4,457-

Income (loss) before
income taxes(47,876)

10,50011,041

58,918-5,300-5,741-52.0

Income taxes andminority interests

17,408500

812-16,596

-95.3

600

-212

-26.2

Net income (loss)(65,285)

10,000

10,22875,514-4,700-5,528-54.1

Gross profit
Profit margin
Construction
business

Real estatebusiness

YoY (b)-(a)FY2014

YoY (c)-(b)6.2
49,166-22,800
5.5

902

36.4

3,600
25.7

Note: These statements include Toda Corporation’s forecasts based on information currently available as of the announcement
date, which are subject to a number of risks and uncertainties. Therefore, the actual results of developments may differ
from those presented in these forward-looking statements due to the changes in various factors.

―23―

(2) Summary of Non-consolidated Results and Forecasts(Millions of yen)Six-month Period from April
FY2012FY2013
Actual(a)

ActualOrders Received

FY2014
Forecast(b)

YoY (b)-(a)AmountPercentage (%)

154,092

322,733

162,500-160,233-49.6

Domestic

154,088322,719

162,000-160,719-49.8

Overseas
Construction
business
Architectural
construction

3

14

500

485

-

149,964

317,605

160,000-157,605-49.6

115,371

288,028

120,000-168,028-58.3

Civil engineering

34,59329,57740,00010,422

35.2

Real estate business

4,127

5,128

2,500

-2,628-51.2

Net sales

197,250

191,886

170,500-21,386-11.1

Construction
business
Architectural
construction

193,122

186,758

168,000-18,758-10.0

157,508

143,937

128,000-15,937-11.1

Domestic

156,939

143,573

128,000-15,573-10.8

Overseas

569

364

-

-364

-

Civil engineering

35,61442,82040,000-2,820-6.6

Domestic

35,522

42,73939,800-2,939-6.9

Overseas

91

81

200

118

145.7

Real estate business

4,127

5,128

2,500

-2,628-51.2

Gross profit(4,531)

15,081

8,700-6,381-42.3-2.3 %

7.9 %

5.1 %

Construction
business(5,746)

13,602

8,000-5,602-41.2-3.0 %

7.3 %

4.8 %

Architectural
construction(7,361)

10,5456,000-4,545-43.1-4.7 %

7.3 %

4.7 %

1,614

3,057

2,000

-1,057

-34.6

4.5 %

7.1 %

5.0 %

1,214

1,478

700

-778

-52.7

29.4 %

28.8 %

28.0 %

SG&A expenses

10,237

8,591

9,500

908

10.6

Operating income (loss)(14,769)

6,489

(800)

-7,289-Non-operating income(loss)

727

739

600

-139

-18.9

Ordinary income (loss)(14,042)

7,229

(200)

-7,429-Profit margin

Civil engineering
Real estate business

Extraordinary income(loss)
Income (loss) before
income taxes
Income taxes andminority interests(3,094)

3,707--3,707-(17,136)

10,936(200)-11,136-

17,410

22

50

27

121.8

Net income (loss)(34,547)

10,914(250)-11,164

-

-

-

-

-

-

Dividend per share (yen)―24―(Millions of yen)
Full Year
FY2012FY2013

FY2013

Actual(a)

Revisedforecast as
of Feb. 12,
2014

Actual(b)

AmountPercentage(%)

Forecast(c)346,775

422,000

462,626

115,850

33.4

366,500-96,126

Domestic

346,734

420,900

461,949

115,21433.2

365,000-96,949-21.0

Overseas
Construction
business
Architectural
construction
Civilengineering
Real estate business

40

1,100

676

635

-

1,500

823

121.7

339,067

415,000

454,405

115,33834.0

360,000-94,405-20.8

255,882

335,000

357,231

101,34939.6

280,000-77,231-21.6

83,18580,00097,174

13,98816.8

80,000-17,174

-17.7

7,708

7,000

8,220

512

6.6

6,500

-1,720-20.9

Net sales
Construction
business
Architectural
construction

460,293

408,000

409,513-50,779-11.0

390,000-19,513-4.8

452,585

401,000

401,293-51,292-11.3

383,500-17,793-4.4

368,725

316,000

314,871-53,854-14.6

298,000-16,871-5.4

Domestic

367,367

315,510314,393-52,973-14.4

298,000-16,393-5.2

Overseas

1,358

490

477

-881

-64.9

-

-477

-

Civil
engineering

83,85985,00086,4222,562

3.1

85,500-922-1.1

Domestic

83,63084,89086,3402,709

3.2

85,000-1,340-1.6

Overseas

228

110

81

-147

-64.4

500

418

514.3

Real estate business

7,708

7,000

8,220

512

6.6

6,500

-1,720-20.9(27,373)

23,00023,00550,379-22,500-505-2.2-5.9 %

5.6 %

5.6 %

(28,947)

21,00020,655-155-0.8-6.4 %

5.2 %

5.1 %

Architectural
construction(30,992)

16,00014,021478

3.4-8.4 %

5.1 %

4.5 %

Civil
engineering

2,044

5,000

6,634

-634

-9.6

2.4 %

5.9 %

7.7 %

1,574

2,000

2,350

-350

-14.9

20.4 %

28.6 %

28.6 %

SG&A expenses

20,10918,50018,318-1,791-8.9

19,5001,181

6.5

Operating income (loss)(47,482)

4,500

4,687

52,170-3,000-1,687-36.0

Non-operating income(loss)

1,211

1,300

1,582

371

30.6

1,300

-282

-17.9

Ordinary income (loss)(46,270)

5,800

6,270

52,541-4,300-1,970-31.4

Orders Received

Gross profit
Profit margin
Construction
business

Real estate businessYoY (b)-(a)FY2014

YoY (c)-(b)Percentage(%)

Amount

-20.8

5.8 %
49,602-

20,5005.3 %45,013

-

4,589

224.5

14,500
4.9 %
6,000
7.0 %

776

49.3

2,000
30.8 %

Extraordinary income(loss)
Income (loss) before
income taxes
Income taxes andminority interests(2,750)

3,750

3,016

5,767

-

-

-3,016-(49,021)

9,550

9,287

58,308-4,300-4,987-53.7

17,31550

52-17,263

-99.7

100

47

91.7

Net income (loss)(66,337)

9,500

9,235

75,572-

4,200-5,035

-54.5

5.0

5.0

5.0

-

-

5.0

-

-

Dividend per share (yen)Note: These statements include Toda Corporation’s forecasts based on information currently available as of the announcement
date, which are subject to a number of risks and uncertainties. Therefore, the actual results of developments may differ
from those presented in these forward-looking statements due to the changes in various factors.

―25―

(3) Orders Received, Net Sales and Balance Brought Forward (non-consolidated)
1) Orders Received
Business segment/Classification
I Construction business(A) Architectural construction
Domestic public sector
Domestic private sector
Overseas
Subtotal(B) Civil engineering
Domestic public sector
Domestic private sector
Overseas
Subtotal(C) Total (A)+(B)
Domestic public sector
Domestic private sector
Overseas
Subtotal
II Real estate business
III Total (I + II)(Millions of yen)
FY2012(From April 1, 2012,
to March 31, 2013)
AmountRatio (%)

FY2013(From April 1, 2013,
to March 31, 2014)
AmountRatio (%)

ChangeAmount43,675
212,17333
255,882

12.6
61.2
0.0
73.8

46,781
310,43118
357,231

10.1
67.1
0.0
77.2

3,105
98,258-14
101,349

7.1
46.3
-43.9
39.6

68,352
14,825
7
83,185

19.7
4.3
0.0
24.0

77,52518,990658
97,174

16.8
4.1
0.1
21.0

9,173
4,165
650
13,98813.4
28.1
8,414.2
16.8

112,027
226,99840
339,067
7,708
346,775

32.3
65.5
0.0
97.8
2.2
100.0

124,306
329,422676
454,4058,220
462,626

26.9
71.2
0.1
98.2
1.8
100.0

12,278102,423
635
115,338512
115,85011.0
45.1
1,551.4
34.0
6.6
33.4

2) Net Sales
Business segment/Classification
I Construction business(A) Architectural construction
Domestic public sector
Domestic private sector
Overseas
Subtotal(B) Civil engineering
Domestic public sector
Domestic private sector
Overseas
Subtotal(C) Total (A)+(B)
Domestic public sector
Domestic private sector
Overseas
Subtotal
II Real estate business
III Total (I + II)(Millions of yen)
FY2012(From April 1, 2012,
to March 31, 2013)
AmountRatio (%)

FY2013(From April 1, 2013,
to March 31, 2014)
AmountRatio (%)

ChangeAmountI Construction business(A) Architectural construction
Domestic public sector
Domestic private sector
Overseas
Subtotal(B) Civil engineering
Domestic public sector
Domestic private sector
Overseas
Subtotal(C) Total (A)+(B)
Domestic public sector
Domestic private sector
Overseas
Subtotal
II Real estate business
III Total (I + II)

Percentage

86,034
281,333
1,358
368,725

18.7
61.1
0.3
80.1

57,830256,670370
314,871

14.1
62.7
0.1
76.9

-28,204-24,662-988-53,854

-32.8
-8.8
-72.7
-14.6

65,787
17,843228
83,859

14.3
3.9
0.0
18.2

68,60917,73081
86,422

16.8
4.3
0.0
21.1

2,822
-112
-147
2,562

4.3
-0.6
-64.4
3.1

151,821299,176
1,587
452,585
7,708
460,293

33.0
65.0
0.3
98.3
1.7
100.0

126,439
274,401451
401,2938,220
409,513

30.9
67.0
0.1
98.0
2.0
100.0

-25,381-24,774-1,135-51,292
512-50,779

-16.7
-8.3
-71.5
-11.3
6.6
-11.0

3) Balance Brought Forward
Business segment/Classification

Percentage(Millions of yen)
FY2012(As of March 31, 2013)
AmountRatio (%)

FY2013(As of March 31, 2014)
AmountRatio (%)

ChangeAmountPercentage

61,687263,736351
325,775

13.7
58.5
0.1
72.3

55,132313,003－368,135

10.9
62.1
－
73.1

-6,55549,267-351
42,360

-10.6
18.7
－
13.0

98,171
26,70879
124,959

21.8
5.9
0.0
27.7

107,299
27,755655
135,710

21.3
5.5
0.1
26.9

9,127
1,047
576
10,751

9.3
3.9
728.7
8.6

159,859
290,444430
450,734－
450,734

35.5
64.4
0.1
100.0
－
100.0

162,431
340,759655
503,846－
503,846

32.2
67.6
0.1
100.0
－
100.0

2,572
50,314
224
53,112－
53,112

1.6
17.3
52.2
11.8
－
11.8

―26―