Annual R epor t 2011
Ye a r e nd e d Ma rc h 31, 2011

Profile
Toda Corporation Celebrates its 130th Anniversary in July 2011.
Since its founding in 1881, we have worked ceaselessly to win a high degree of trust from our stakeholders,
by delivering solutions based on superior knowhow and technology.
In addition to its existing business—centered on hospitals, medical facilities and schools—Toda has been
demonstrating its strengths in such key fields as the construction of production facilities and office buildings inrecent years. At the same time, Toda is focusing on the development and provision of superior technology insuch fields as environmentally friendly and earthquake-resistant technology in order to meet heightened social
awareness of such issues as CO2 reduction.
As a general contractor, Toda Corporation will strive to offer customized solutions that accurately respondto increasingly diverse and complex customer needs throughout the long life cycles of its buildings.
Toda, along with its Group companies, will aim for sustainable growth by exercising its unique strengths
and providing comprehensive solutions to its customers in the construction industry, thereby creating deeper
and stronger long-term relationships.

Contents
Cover Photo
Financial Highlights

1

Message from the President

2

Review of Operations

4

Corporate Governance5

Financial Section
Consolidated Balance Sheets

6

Consolidated Statements of Income

8

Consolidated Statements of Changes in Net Assets

9Consolidated Statements of Cash Flows10

Notes to Consolidated Financial Statements

11

Independent Auditors’ Report

23

Corporate Information/ Board of Directors,
Corporate Auditors and Managing Officers

24

Toda Bulding Aoyama

Brand Message

25

Location: Tokyo, Japan

Forward-Looking Statements
This report contains forward-looking statements regarding Toda Corporation’s corporate plans, strategies, forecasts and other statements that are nothistorical facts. They are based on current expectations, estimates, forecasts and projections about the industries in which Toda Corporation operates.
As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, including and without limitation, changes
in economic conditions; fluctuations in currency exchange rates; changes in the competitive environment; the outcome of pending and future litigation; and thecontinued availability of financing, financial instruments and financial resources, actual results may differ materially from those presented in these forward-looking
statements. Toda Corporation, therefore, wishes to caution that readers should not place undue reliance on forward-looking statements and, further, that
Toda Corporation undertakes no obligation to update any forward-looking statements as a result of new information, or other future developments.

Financial H ighlights
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es —Ye a rs e nd e d Ma rc h 31

Thousands of
U.S. dollars (Note)

Millions of yen

2007

2008

2009

2010

2011

2011

¥464,041¥466,285¥465,893¥475,055¥452,762$5,445,126

Ordinary income

9,241

6,817

5,780

7,724

7,478

89,935

Net income

3,928

3,733

2,817

3,175

3,774

45,394————(2,371)(28,517)

Total net assets

255,005

216,214

181,546

196,821

191,758

2,306,179

Total assets

672,890

608,899

541,495

502,405

500,8316,023,223

Net assets¥ 786.47¥ 678.20¥ 567.37¥ 621.93¥ 607.54$    7.306

Net income

12.29

11.82

9.01

10.23

12.20

0.146

Cash dividends applicable to the year

7.00

7.00

7.00

7.00

7.00

0.084

6,669

¥ (8,577)¥ 32,152¥ 10,379$  124,823

Consolidated:
Net sales­

Comprehensive income

Per share of common stock:( in yen and U.S. dollars )Net cash provided by (used in) operating activities

¥

1,093

¥

Net cash provided by (used in) investing activities(8,509)(2,171)(8,478)(7,948)(5,278)(63,479)

Net cash provided by (used in) financing activities(7,504)(6,525)

4,422(3,089)(3,754)(45,158)

Cash and cash equivalents at end of period

54,28052,25839,30260,45961,654

741,483

Number of employees

4,733

4,866

4,996

5,051

5,034

¥414,337¥440,785¥434,428¥402,755¥452,122

Non-Consolidated:
Orders received$5,437,430

Note: The rate of ¥83.15=US$1.00, the foreign exchange rate on March 31, 2011, has been used for translation.

Net Sales (Consolidated)

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

464

466

465

475

452

500

3.9

Orders Received (Non-Consolidated)(Billions of yen)

3.7

2.8

3.1

3.7

4.0

414

440

434

402

452

2007

2008

2009

2010

2011

500

400

400
3.0
300

300
2.0

200

200

1.0
100

100

0

0

2007

2008

2009

2010

2011

0

2007

2008

2009

2010

2011

A N N UA L R E P O R T 2 0 1 11

M essage from the President“In spite of severe businessconditions, we will focus onbuilding a foundation for
future growth.”

Shunzo Inoue
President

Consolidated Business Performance in FY2010 (Ended March 31, 2011)
The Japanese economy in the consolidated fiscal year underplan, the result reflects a 5.1 percent decline in completed work

review remained harsh and extremely uncertain, despite indica-

due to the one-time effect from the adoption of the percentage

tions of a gradual recovery as sluggishness subsided mainly onof completion method in fiscal 2009. In terms of profit, although

the back of improved corporate earnings. These difficulties weregross profit margin improved from 6.6 to 6.8 percent, operating

attributable to the Great East Japan Earthquake on March 11,

income fell 6.3 percent to ¥6.0 billion due to the decrease in net

2011. Fortunately, Toda sustained minimal direct damage to its

sales. Ordinary income dipped 3.2 percent to ¥7.4 billion com-facilities despite disruptions to business infrastructure in stricken

pared with the previous fiscal year. Net income increased 18.9

and other areas.

percent to ¥3.7 billion year on year owing to a reduction in other

Amidst these conditions, the Group’s consolidated net sales

extraordinary loss compared with the previous fiscal year. This risein FY2010 decreased 4.7 percent from the previous fiscal year,

occurred despite the recording of a loss of ¥0.3 billion stemmingto ¥452.7 billion. In spite of generally progressing according tofrom the recent disaster.

Medium- and Long-Term Growth Strategies
In light of curtailed capital investments for new construction, theThis was achieved by strengthening relationships among clients,

construction industry has been required to shift to business mod-Group companies and sectors.

els that emphasize existing stock. With this shift in mind, Toda

In particular, we restructured systems related to architectural

established its Medium-Term Management Plan in April 2009

remodeling construction primarily by establishing the Real Estateand is rebuilding its earnings structure with efforts addressing theDivision and Environmental Business Promotion Office while aim-

entire construction life cycle.

ing to increase architectural remodeling construction to a 25

In the Medium-Term Management Plan, Toda and each member of the Group will take advantage of its unique strengths—2

percent share of completed work in FY2011 by promoting the
expansion of affiliates.

based on expertise as solutions providers—to make deeper and

We are continuing to strengthen measures that focus on the prior-

more sustained contributions to customers in the construction

ity areas of production, training and medical/welfare in the building

field. We will establish and undertake measures to attain the per-construction segment and urban infrastructure in the civil engineer-formance goals on an annual rolling basis in line with the basic

ing segment. In FY2010, Toda’s building construction and civil

concept of realizing continual growth.

engineering segments, which cover these priority areas, recorded aSpecifically, we promoted initiatives to secure earnings by

combined ratio of orders received of 76 percent, an increase from 74

capturing demand throughout the entire construction lifecycle.

percent year on year, exceeding the Company’s 70 percent target.

A N N UA L R E P O R T 2 0 1 1

Progress of the Medium-Term Management Plan
Index

FY2009(Actual)

FY2010(Actual)

FY2011
TargetRatio of renovations to completions

16%

15%

25%

Ratio of orders in priority areas(total amount of business construction and civil engineering)

74%

76%

70%

Overseas orders received (consolidated)¥6.1 billion¥14.9 billion¥20.0 billion

Real estate investment amount(cumulative total for the period of the plan)¥6.8 billion¥13.3 billion¥23.0 billion+a

57%

57%

60%

Ratio of Tokyo metropolitan area sales

In terms of strengthening overseas business, we are taking
steps to reinforce sales in growth markets, particularly China

investing over ¥23.0 billion (cumulative total for the period) by
FY2011.

and Brazil. Toda will also bolster its efforts to capture demand

Along with raising our share of domestic sales in the Tokyo

in the high growth markets of Thailand, Vietnam and the rest of

metropolitan area to 60 percent (57 percent in FY2010), we will

Southeast Asia. In FY2010, overseas orders received totaled

further promote appropriate and effective business operations¥14.9 billion, compared with ¥6.1 billion for the previous fiscal

through the flexible placement of personnel.

year. We are steadily expanding sales in order to achieve overseas orders received of ¥20.0 billion by FY2011.

Through the aforementioned initiatives, we aim to achieve consolidated net sales of ¥463.5 billion and ordinary income of ¥10.0

In addition, Toda aims to establish a stable foundation tobillion in FY2011, despite facing harsh operating conditions likely

supplement the construction business by promoting highly profit-

to be hampered by a sluggish economic recovery in the aftermathable real estate investments. In FY2010, we invested ¥6.5 billionof the recent disaster.

(cumulative total of ¥13.3 billion) in this area and will continue

CSR Initiatives

Profit Sharing

Positioning CSR as a high-priority management issue, Toda

To furnish each of its shareholders with stable dividend payments

is undertaking various measures outlined in the Medium-Termover the long term, the Company ensures that there are sufficientManagement Plan with the goal of raising the profile of the Toda

internal reserves for strengthening its competitiveness and finan-

brand.

cial position. Based on this policy, the full-year dividend for the

In particular, we are strengthening our efforts on environmental

year under review remained at ¥7 per share.

and energy fields. We are formulating an environmental action
plan and expanding proposals in the area of environmental technology. In terms of numerical targets, Toda aims to reduce CO2
emissions to 40 percent* of the 1990 level by 2020.
In advance of these initiatives, we completed construction of
the state-of-the art, environment-friendly tenant building, Toda
Building Aoyama. The building incorporates cutting-edge environmental technologies, reducing CO2 emissions by 40 percent.
Positioning Toda Building Aoyama as a pilot project for its environmental business, we will promote our environmental technologies
and aggressively expand sales activities related to this building.

To continue to be the trusted company that stakeholders inJapan and overseas expect it to be, Toda Corporation will create true value through its construction business and endeavor
to provide complete customer satisfaction.
Under the slogan of “connecting expectations,” we will strive
to undertake high-quality construction and civil engineering
activities that provide even greater satisfaction.
We thank our stakeholders, including our shareholders, for their continued support and understanding of Toda
Corporation’s business operations.

* Compared with conventional buildings average calculated by The Energy
Conservation Center, Japan.

A N N UA L R E P O R T 2 0 1 1

3R eview of O perations
The following section explains net sales by segment and a breakdown of completions by project in FY2010.

Consolidated Net Sales

Construction Contracts(Millions of yen)

FY2009FY2010¥463,369¥439,964

Real Estate Businessand Other
Total Net Sales

11,686

12,797¥475,055¥452,762

Breakdown of Completions by Project (Non-Consolidated)
Civil
Engineering

Building
Construction

Real Estate

Soil andriver conservation

3.0 %Power lines

1.0 %

Other

Real Estate

Medical and welfare

20.8 % 1.8 %26.3 %

Land reclamation

10.9 %

Business andgovernment offices

23.3 %

Water andsewerage

18.7%

12.7 %
Non-Consolidated Net Sales(Millions of yen)

FY2009FY2010Railways

14.0 %

Education, researchand culture

79.5%

Roads

21.2 %

37.6 %
Construction Contracts¥446,380¥421,311

6,210

7,548

¥452,590¥428,859

6.2 %Real Estate Businessand Other
Total Net Sales

Other

Housing

9.0 %Lodgings

0.8 %Entertainment

0.8 %Warehouses andlogistics

2.1 %Retail2.8 %Factories andpower plants

7.5 %Principal Completed Construction Contracts
No. Client

Construction Name

Location Ariake Minami A TMK.

Ariake Central Tower

Tokyo, Japan

 Shinagawa City, Tokyo

Shinagawa City Unified Elementary
Through Junior High School Ebara
Hiratsuka Gakuen

Tokyo, Japan

 Tokyo International Air Terminal Corporation

International Flight Passenger Terminal
Building (North Wing)

Tokyo, Japan

Tsukagaharayama-Tunnel

Shimane Prefecture, Japan

Hiroshima Expressway Route 3(Hiroshima Minami Road) Stage III
Lower section Construction

Hiroshima Prefecture, Japan

Ministry of Land, Infrastructure, Transport and Tourism
Chugoku Regional Development Bureau

 Hiroshima Expressway Public Corporation





4

A N N UA L R E P O R T 2 0 1 1







Corporate G overnanceToda Corporation aims to continue to raise its corporate value through the efficient execution of business
operations and by building a monitoring structure, securing the transparency and integrity of management and strengthening compliance.

Strengthening the Functions of the Board of Directors and Business Execution
In addition to company bodies required under the Corporation Law,such as shareholders’ meetings, the Board of Directors and the Boardof Corporate Auditors, the Company has built its own control systems,
including an executive officer system and internal audits.
The Board of Directors is currently composed of nine directors who
conduct management decision making and supervise the executionof business. In order to clarify management responsibilities, strengthen
the management structure and enable a swift response to changes in

the management environment, the term of office is set at one year for
directors, so that they must face a vote at the annual general meeting ofshareholders.
The Company has also adopted an executive system in its aim toensure a prompt and efficient business execution structure. Executive
officers selected by the Board of Directors execute the duties of theCompany under the direction of the President and in accordance withthe basic policies of management determined by the Board of Directors.

An Enhanced Auditing Structure
Toda maintains a Board of Corporate Auditors, which is composedof five corporate auditors, including three external corporate auditors.
Corporate auditors conduct audits for the legality and appropriatenessof business execution by attending board of directors’ meetings andother important company meetings. With regard to personnel mattersand organizational changes within or involving the Corporate Auditor
Office (the department that assists the activities of the corporate auditors), the Company stipulates that opinions rendered by the Board of
Corporate Auditors or by a corporate auditor (who has been designatedin advance by the Board of Corporate Auditors) be sought or asked
for, thereby ensuring the independence of corporate auditors and thestaff assisting them from directors and executive officers.
The Company established the Audit Office as an internal audit
authority, and this department periodically conducts internal audits ofthe business status of each business division in the Company. In addition, corporate auditors ensure mutual cooperation by receiving audit
result reports and other documents from, and exchanging views with,
the Audit Office and the accounting auditors.

Building an Internal Control Structure
In accordance with the Corporation Law, Toda stipulates the maintenance of an effective internal control system in its basic policy. Thissystem encompasses such key areas as compliance and risk management. In addition, the Company maintains internal controls overfinancial reporting in compliance with the Internal Control Reporting
System under the Financial Instruments and Exchange Law, whichcame into effect from April 2008. Toda’s Internal Control Project Officehas been the main department responsible building and for maintain-

ing an internal control structure for financial reporting. In each year
since FY2008, Toda’s management has evaluated and confirmed that
the Company’s internal control over financial reporting has functioned
effectively and, with the audit and verification by the independentaccounting auditors, submitted an Internal Control Report stating tothat effect.
Toda Corporation aims to maintain the reliability of financial reporting and will continue making efforts to realize improvement.

Diagram of Corporate Governance

General Meeting of Shareholders
Appointment
Audit

Board of Directors
Appointment/
Oversight
Appointment/
Oversight
Direction

Reporting

Coordination

President (Representative Director)

Appointment
Coordination

Corporate Auditor Office

Accounting audit

Management Meeting

Accounting Auditors

Coordination

Reporting
ReportingCommittees
Executive Officers(Managers of Headquarters, Supervisory Department and Branch Offices)

Internal audit

Audit OfficeInternal audit

Coordination

Affiliates

Internal Control Project Office

ReportingDirection

Appointment

Board of Corporate Auditors

Coordination

Corporate Ethics Committee

Executive Committee
Departments

Training

Reporting(Internal reports)

A N N UA L R E P O R T 2 0 1 1

5

Consolidated B alance Sheets
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es —As of Ma rc h 31, 2010 a nd 2011

Thousands of
U.S. dollars (Note 1)

Millions of yen

2010

2011

2011

¥ 44,334¥ 42,268$  508,339  Notes receivable, accounts receivable from completed construction contracts and other

98,160133,474

1,605,229  Short-term investment securities

17,00020,069241,367  Real estate for sale

30,41728,631

344,340  Costs on uncompleted construction contracts

77,56751,756

622,450  Other inventories

1,589

2,033

24,453  Deferred tax assets

17,018

7,333

88,201  Other

2,808

3,550

42,699  Allowance for doubtful accounts

(585)

(918)

(11,048)

288,310288,200

3,466,033

17,741

18,170218,523ASSETS
Current assets:  Cash and deposits (Note 10)  Total current assets

Noncurrent assets:  Property, plant and equipment:   Buildings and structures, net   Machinery, vehicles, tools, furniture and fixtures, net   Land (Note 6. 3) and 7) )   Lease assets, net   Construction in progress   Total property, plant and equipment

940

799

9,615

64,87969,145

831,574

203

140

1,686

643

895

10,772

84,40889,151

1,072,171  Intangible assets:
483

427

5,145

   Other (Note 6. 7) )   Goodwill

3,642

1,843

22,165   Total intangible assets

4,125

2,270

27,311

119,615

110,251

1,325,940

1,433

1,422

17,113—

5,618

67,573  Investments and other assets:   Investment securities (Note 6. 2) and 3) )  Long-term loans receivable (Note 6. 3) )   Deferred tax assets   Other

7,840

7,413

89,155   Allowance for doubtful accounts(3,328)(3,498)(42,075)   Total investments and other assets

125,561

121,208

1,457,707  Total noncurrent assets

214,095

212,630

2,557,190

Total assets¥502,405¥500,831$6,023,223

See accompanying notes to consolidated financial statements.
6

A N N UA L R E P O R T 2 0 1 1

Thousands of
U.S. dollars (Note 1)

Millions of yen

2010

2011

2011

¥100,630¥118,134$1,420,734

40,81943,913528,120

594

620

7,457

LIABILITIESCurrent liabilities:  Notes payable, accounts payable for construction contracts and other  Short-term loans payable (Note 6. 6) )  Income taxes payable  Advances received on uncompleted construction contracts

62,16854,980661,223  Deferred tax liabilities

—

39

478

  Provision for bonuses

3,352

3,286

39,530  Provision for warranties for completed construction

1,007

926

11,141  Provision for loss on construction contracts

6,434

9,271

111,503

—

297

3,580

  Deposits received

15,353

15,844

190,547  Other

9,713

8,176

98,338240,074

255,491

3,072,657  Long-term loans payable

18,77014,209170,895  Deferred tax liabilities

5,775

251

3,024

  Deferred tax liabilities for land revaluation (Note 6. 7) )11,926

11,888142,971  Provision for retirement benefits

24,56722,738273,464  Provision for directors’ retirement benefits

143

241

2,904

  Asset retirement obligations

—

155

1,871

  Provision for loss on disaster  Total current liabilities
Noncurrent liabilities:  Other

4,326

4,095

49,254  Total noncurrent liabilities

65,50953,580644,386  Total liabilities

305,583

309,072

3,717,043

23,001

23,001

276,627

NET ASSETS
Shareholders’ equity:  Capital stock  Capital surplus

25,59525,595

307,819  Retained earnings

126,052

127,496

1,533,329  Treasury stock  Total shareholders’ equity(6,478)(6,683)(80,377)

168,170

169,4092,037,398

21,334

15,594

187,545

Accumulated other comprehensive income (Note 5):  Valuation difference on available-for-sale securities  Deferred losses on hedges  Revaluation reserve for land (Note 6. 7) )

(28)

(15)

(189)

4,397

4,561

54,854  Foreign currency translation adjustment(1,318)(1,812)(21,797)  Total accumulated other comprehensive income (Note 5)

24,384

18,327

220,412

Minority interests
Total net assets
Total liabilities and net assets

4,266

4,021

48,367

196,821

191,758

2,306,179¥502,405¥500,831$6,023,223

A N N UA L R E P O R T 2 0 1 1

7

Consolidated Statements of I ncome
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es —For the ye a r e nd e d Ma rc h 31, 2010 a nd 2011

Thousands of
U.S. dollars (Note 1)

Millions of yen

Net sales:
Net sales of completed construction contracts
Net sales of real estate business and otherTotal net sales
Cost of sales:
Cost of sales of completed construction contracts (Note 7. 1) )Cost of sales on real estate business and other (Note 7. 2) )Total cost of sales
Gross profit:
Gross profit on completed construction contracts
Gross profit on real estate business and otherTotal gross profit
Selling, general and administrative expenses (Note 7. 3) and 4) )Operating income
Non-operating income:Interest income
Dividend income
Dividend income of insurance
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Reversal of allowance for doubtful accounts
Gain on sales of noncurrent assets (Note 7. 5) )Gain on sales of investment securities
Gain of negative goodwill
Other
Total extraordinary income
Extraordinary loss:
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Provision for allowance for doubtful accounts
Loss on disaster (Note 7. 6) )Loss on adjustment for changes of accounting standard for asset retirement obligations
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Total income taxes
Net income before minority interests
Minority interests in income
Net income

2010

2011

2011

¥463,369
11,686
475,055¥439,964
12,797452,762$5,291,219
153,9075,445,126

434,998
8,736
443,734

411,682
10,306421,989

4,951,085
123,953
5,075,038

28,371
2,950
31,321
24,912
6,408

28,2822,490
30,772
24,7686,004

340,134
29,954370,088297,871
72,216

216
1,535
282
38
324
2,397

191
1,691
270
—
406
2,559

2,299
20,342
3,251
—
4,885
30,779

870
—
211
1,081
7,724

794
160
131
1,085
7,478

9,554
1,926
1,579
13,06089,935

205
161
12
—
19
399

77
11
1
386
—
476

931
140
12
4,647
—
5,731

317
294
190
1,051
—
—
104
1,959
6,164
733
2,247
2,981
3,183
8
3,175

172
30
203
—
364
109
63
945
7,009
665
2,495
3,160
3,849
74
¥  3,774

2,078
369
2,450
—
4,386
1,315
766
11,36584,301
8,001
30,00938,01046,291897$   45,394¥

See accompanying notes to consolidated financial statements.

Consolidated Statement of Comprehensive I ncome
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es —For the ye a r e nd e d Ma rc h 31, 2011

Millions of yen

Income before minority interests
Other comprehensive income (loss) (Note 8):
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income (loss)
Comprehensive income (loss) (Note 8)
Comprehensive income attributable to:
Owners of the parent
Minority interests
See accompanying notes to consolidated financial statements.
8

A N N UA L R E P O R T 2 0 1 1

Thousands of
U.S. dollars (Note 1)

2011¥3,8492011$46,291(5,734)12(499)(6,220)(2,371)(68,960)
155(6,004)(74,808)(28,517)(2,446)75(29,421)904

Consolidated Statements of Changes in Net Assets
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es —For the ye a rs e nd e d Ma rc h 31, 2010 a nd 2011

Thousands of
U.S. dollars (Note 1)

Millions of yen

Shareholders’ equity
Capital stock:
Balance at the end of previous period
Changes of items during the period
Balance at the end of current period
Capital surplus:
Balance at the end of previous period
Changes of items during the period
Balance at the end of current period
Retained earnings:
Balance at the end of previous period
Changes of items during the period:  Dividends from surplus  Net income  Reversal of revaluation reserve for land  Total changes of items during the period
Balance at the end of current period
Treasury stock:
Balance at the end of previous period
Changes of items during the period:  Purchase of treasury stock  Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity:
Balance at the end of previous period
Changes of items during the period:  Dividends from surplus  Net income  Purchase of treasury stock  Reversal of revaluation reserve for land  Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income
Valuation difference on available-for-sale securities:
Balance at the end of previous period
Changes of items during the period:  Net changes of items other than shareholders’ equity  Total changes of items during the period
Balance at the end of current period
Deferred gains or losses on hedges:
Balance at the end of previous period
Changes of items during the period:  Net changes of items other than shareholders’ equity  Total changes of items during the period
Balance at the end of current period
Revaluation reserve for land:
Balance at the end of previous period
Changes of items during the period:  Net changes of items other than shareholders’ equity  Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustments:
Balance at the end of previous period
Changes of items during the period:  Net changes of items other than shareholders’ equity  Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period:  Net changes of items other than shareholders’ equity  Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period:  Dividends from surplus  Net income  Purchase of treasury stock  Reversal of revaluation reserve for land  Net changes of items other than shareholders’ equity  Total changes of items during the period
Balance at the end of current period

2010

2011

2011

¥ 23,001—¥ 23,001¥ 23,001—¥ 23,001$  276,627—$  276,627¥ 25,595—¥ 25,595¥ 25,595—¥ 25,595$  307,819—$  307,819¥124,965¥126,052$1,515,964(2,187)
3,175
99
1,086
¥126,052(2,167)
3,774
(163)
1,443
¥127,496(26,064)
45,394(1,965)
17,364$1,533,329¥  (5,360)¥  (6,478)$  (77,913)(1,118)(1,118)¥  (6,478)

(204)
(204)
¥  (6,683)(2,463)(2,463)$  (80,377)¥168,201¥168,170$2,022,498(2,187)
3,175(1,118)99(31)¥168,170(2,167)
3,774
(204)
(163)
1,238
¥169,409(26,064)
45,394(2,463)(1,965)
14,900$2,037,398¥  6,021¥ 21,334$­   256,576

15,313
15,313¥ 21,334(5,739)(5,739)¥ 15,594(69,030)(69,030)$  187,545¥     20¥    (28)$     (345)

(49)
(49)
¥    (28)1212¥    (15)155155$     (189)¥  4,497¥  4,397$   52,888

(99)
(99)
¥  4,397

163
163¥  4,561

1,965
1,965
$   54,854¥  (1,425)¥  (1,318)$  (15,856)106106¥  (1,318)

(493)
(493)
¥  (1,812)(5,940)(5,940)$  (21,797)¥  4,230¥  4,266$   51,306

35
35¥  4,266

(244)
(244)
¥  4,021(2,939)(2,939)$   48,367¥181,546¥196,821$2,367,068(2,187)
3,175(1,118)99
15,306
15,275¥196,821(2,167)
3,774
(204)
(163)
(6,301)(5,062)¥191,758(26,064)
45,394(2,463)(1,965)(75,789)(60,889)$2,306,179

See accompanying notes to consolidated financial statements.
A N N UA L R E P O R T 2 0 1 1

9

Consolidated Statements of Cash Flows
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es —For the ye a rs e nd e d Ma rc h 31, 2010 a nd 2011

Thousands of
U.S. dollars (Note 1)

Millions of yen

2010

2011

2011

¥ 6,164
2,087
317
55
864
(1,229)
2,830
—
190
282
(161)
(1,752)870
2,148
79,512
1,284(6,425)(52,354)(2,792)
31,893
1,749
(963)
(527)
32,152¥ 7,009
2,016
172
55
502
(1,828)
3,085
(386)
203
29
(11)
(1,882)
794(35,196)
25,8101,119
17,503(7,187)(1,831)
9,979
1,878
(789)
(689)
10,379$ 84,301
24,250
2,078
671
6,042
(21,992)
37,112(4,647)
2,450
357
(140)
(22,641)
9,554(423,288)
310,408
13,461
210,505(86,441)(22,027)
120,014
22,586(9,491)(8,286)
124,823

Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

(842)
1,034
80
(3,460)381(2,381)(3,288)
263
(217)
464
16
(7,948)

(197)
407
—
(4,782)
19
(325)
(855)
241
(88)
191
111
(5,278)(2,373)
4,901—(57,518)
239(3,911)(10,292)
2,900(1,065)2,300
1,340(63,479)

Net cash provided by (used in) financing activities:
Net decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Purchase of treasury stock
Other, net
Net cash used in financing activities(7,027)8,730(1,376)(2,187)(17)(1,118)(92)(3,089)(3,532)
4,030(1,965)(2,167)
(17)
(27)
(75)
(3,754)(42,478)
48,466(23,632)(26,064)
(207)
(330)
(911)
(45,158)42
21,15639,302¥60,459

(150)
1,194
60,459¥61,654(1,814)
14,371
727,112$741,483

Net cash provided by (used in) operating activities:
Income before income taxes
Depreciation and amortization
Loss on impairment of assets
Amortization of goodwill
Increase in allowance for doubtful accounts
Decrease in provision for retirement benefits
Increase in other provision
Gain of negative goodwill
Loss on valuation of short-term and long-term investment securities
Loss on sales of short-term and long-term investment securities
Gain on sales of property, plant and equipment
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable—trade
Decrease in costs on uncompleted construction contracts
Decrease in real estate for sale
Increase (decrease) in notes and accounts payable—trade
Decrease in advances received on uncompleted construction contracts
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at the end of previous period
Cash and cash equivalents at end of period (Note 10)
See accompanying notes to consolidated financial statements.

10

A N N UA L R E P O R T 2 0 1 1

Notes to Consolidated Financial Statements
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es

1. Basis of Presenting Consolidated Financial Statements
The consolidated financial statements presented herein of Toda
Corporation (the “Company”) and its consolidated subsidiaries(together, the “Companies”) are prepared in accordance with the­provisions set forth in the Corporation Law of Japan and the Financial
Instruments and Exchange Law of Japan, and in conformity withaccounting principles generally accepted in Japan.
These consolidated financial statements incorporate certain modifications in format so as to make the financial statements more meaningful to readers outside Japan.
These modifications have no effect on total assets, net sales,
retained earnings or net income.

(U.S. Dollar Amounts)
The U.S. dollar amounts are included solely for convenience and havebeen translated, as a matter of arithmetical computation only, at therate of ¥83.15=US$1, the exchange rate prevailing on the Tokyo foreign exchange market on March 31, 2011, and have been thenrounded down to the nearest thousand. This translation should not
be construed as a representation that the yen amounts actually represent, have been or could be converted into U.S. dollars at this or any
other rate.

2. Summary of Significant Accounting Policies
1) Scope of consolidation
The accompanying consolidated financial statements include theaccounts of Toda Corporation and 15 subsidiaries, namely Toda
Road Co., Ltd., Toda Reform Co., Ltd., Chiyoda Kenkou Co., Ltd.,
Chiyoda Staff Service Co., Ltd., Sipco Industries Co., Ltd., APEC
Engineering Co., Ltd., Chiyoda Tochi Tatemono Co., Ltd., Yachiyo
Urban Co., Ltd., Toda Finance Co., Ltd., Towa Kanko Kaihatsu Co.,
Ltd., Toda America, Inc., Construtora Toda do Brasil S/A, Toda
Construction (Shanghai) Co., Ltd., Thai Toda Corporation Ltd. andToda Vietnam Co., Ltd.
Other subsidiaries were not consolidated, as they were not significant in terms of the effect on total assets, net sales, net income orretained earnings of the consolidated financial statements.
2)	Application of the equity method
All non-consolidated subsidiaries and affiliates were not accounted forusing the equity method, as these companies were not significant interms of the effect on net income or retained earnings of the consolidated ­financial statements.
3) Fiscal year of consolidated subsidiaries
Of the consolidated subsidiaries, Toda America, Inc., Construtora
Toda do Brasil S/A, Toda Construction (Shanghai) Co., Ltd., Thai
Toda Corporation Ltd. and Toda Vietnam Co., Ltd. close their fiscal
year on December 31 each year.
In preparing the consolidated financial statements, the Company
used financial statements as of December 31 of all these subsidiaries.
However, adjustments necessary for the purpose of consolidation
have been made for fiscal year-end.
The fiscal year-end of all other consolidated subsidiaries is thesame as the consolidated fiscal year-end.
4) Standards and evaluation methods for important assets(a) Held-to-maturity debt securities
	  Amortized cost method (straight-line method)
Available-for-sale securities	  Securities with a fair value:	 Stated at fair value, determined by the market price at theconsolidated fiscal year-end (the difference between the bookvalue and the fair value is recorded as a component of net
assets, while the cost of securities sold is computed using themoving-average method)	  Securities with no fair value:	  Stated at cost, determined by the moving-average method(b) Derivatives
	  Stated at fair value(c) Inventories
Costs on uncompleted construction contracts:	 Stated at cost, determined by the specific identification cost method
Real estate for sale:	 Stated at cost, determined by the specific identification cost
method (The book value on the consolidated balance sheets ispresented after write-down for decline in profitability.)5)	Methods of depreciation and amortization(a) Property, plant and equipment (excluding lease assets)
	The declining-balance method is primarily used. However, thestraight-line method is used for buildings (excluding building fixtures) acquired on and after April 1, 1998.
	  Standards identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual value.
(b) Intangible fixed assets (excluding lease assets)
The straight-line method is used.
	  Standards identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual value.
	  However, the amortization of software used by each company
is computed using the straight-line method based on the estimated useful life.
(c) Lease assets	Leased assets under finance leases other than those that are
deemed to transfer ownership to lessees:	Depreciation is based on the straight-line method over the leaseterm of the leased assets with no residual value.
6) Allowances and provisions(a) Allowance for doubtful accounts
	The allowance for doubtful trade receivables and loans has been
provided based on historic loss experience for general accounts
and also includes the aggregate amount of the estimated loss forthe accounts for which concern actually exists for collectibility.
(b) Provision for bonuses	This is provided for the payment of bonuses for employees, basedon expected payment amount.
A N N UA L R E P O R T 2 0 1 1

11

(c) Provision for warranties for completed construction
	To cover expenses for defects claimed concerning completed work,
this is provided based on the estimated amount of compensation in
the future for the work completed during the consolidated fiscal year.
(d) Provision for loss on construction contracts
	The provision for loss on construction contracts is provided at theestimated amount for the future losses on contract backlog at the
fiscal year-end which will be probably incurred and which can bereasonably estimated.
(e) Provision for retirement benefits	The provision for retirement benefits for employees is calculated
based on estimated amounts of retirement benefit obligations andpension assets as of the consolidated fiscal year-end.
	  Actuarial differences are amortized commencing the following
year after the difference is recognized primarily by the straight-line
method over a period of five years.
	  Prior service cost is amortized by the straight-line method overa period of five years.
(f) Provision for directors’ retirement benefits	To prepare for the payment of retirement benefits for executive
officers and subsidiaries’ directors, the provision is provided at theamount to be paid according to internal regulations if they had
retired at the consolidated fiscal year-end.
(g) Provision for loss on disaster	The provision for loss on disaster is provided at the estimatedamount for the cost for restoration of property or the loss causedby the Great East Japan Earthquake which struck on March 11, 2011.

7)	Recognition of net sales from construction contracts andrelated costs
The Companies apply the percentage of completion method to thosecontracts in which the percentage of completion at the consolidated
fiscal year-end can be reliably estimated, and other contracts arerecorded under the completed contract method.

8) Translation of foreign currency assets and liabilities
All monetary assets and liabilities denominated in foreign currencies
are translated into Japanese yen at the exchange rates prevailing at
the consolidated fiscal year-end. The resulting gains and losses areincluded in net income or loss for the consolidated fiscal year.
Assets and liabilities accounts of foreign consolidated subsidiaries
are translated into Japanese yen at the exchange rate prevailing at
the consolidated fiscal year-end. Income and expense accounts offoreign consolidated subsidiaries are translated into Japanese yen at
the average annual exchange rate.
The resulting translation adjustments are included in foreign currencytranslation adjustment and minority interests in the net assets of theconsolidated balance sheets.
9) Hedge accounting
The Companies apply hedge accounting as follows:(a) Method of hedge accounting employed
Deferral hedge accounting	If the interest rate swap contracts are used as hedge and meetcertain hedging criteria, net amounts to be paid or received under
the interest rate swap contracts are added to or deducted from theinterest or liabilities for which the swap contract were executed.
(b) Measures and objects
1. Measures: Forward foreign exchange contracts
Objects: Transactions to be paid in foreign currencies in cases ofoverseas work and overseas procurement of materials
2. Measures: Interest rate swap
Objects: Borrowings(c) Hedging principles
	Based on internal regulations which stipulate the execution authority
regarding on derivative transactions and those for transaction limits,
the Companies utilize hedges to minimize the risk of currency
exchange rate and interest rate fluctuations associated with thehedge objects.
(d) Evaluation method of effectiveness of hedging
	During the period from the time when the hedging first started until
the consolidated fiscal year-end, the Companies have beenassessing the hedge effectiveness primarily by comparing, in termsof variation amounts, (1) cumulative cash flow changes or exchange
rate changes of the hedge objects and (2) cumulative cash flowchanges or exchange rate changes of the hedge measures.
	  However, the evaluation of hedge effectiveness is omitted forinterest swaps as they meet certain hedging criteria for the
exceptional treatment.
10)Amortization of goodwill and negative goodwill
As a general rule, goodwill is amortized over a period of 10 years.
11) Cash and cash equivalents
For the consolidated statements of cash flows, cash and cash equivalents are defined as cash on hand, deposits that can be withdrawn
at any time, and highly liquid short-term investments with a maturity
date within three months after acquisition.

3. Change in accounting method
Accounting standard for asset retirement obligations
The “Accounting Standard for Asset Retirement Obligations” (ASBJ
Statement No. 18 issued on March 31, 2008) and “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ
Guidance No. 21 issued on March 31, 2008) have been applied from12

A N N UA L R E P O R T 2 0 1 1

the fiscal year ended March 31, 2011. This change had the effect of
reducing both operating income and ordinary income by ¥16 million,
and income before income taxes and minority interests by ¥125 million.

4. Changes in Presentation
Consolidated Statement of Income
From the fiscal year ended March 31, 2011, the Company and its
domestic subsidiaries adopted the “Cabinet Office OrdinanceAmending Part of Regulations Concerning Terminology, Forms andPreparation Method of Financial Statements” (Cabinet Office

Ordinance No. 5 issued on March 24, 2009) based on the“Accounting Standard for Consolidated Financial Statements” (ASBJ
Statement No. 22 issued on December 26, 2008), whereby the new
account item “Net income before minority interests” is presented.

5. Additional Information
Comprehensive Income
Effective the fiscal year ended March 31, 2011, the Company and its
domestic subsidiaries adopted the “Accounting Standard for
Presentation of Comprehensive Income” (ASBJ Statement No. 25
issued on June 30, 2010). As a transitional treatment, the amounts of“Valuation and translation adjustments” and “Total valuation andtranslation adjustments” are presented as “Accumulated othercomprehensive income” and “Total accumulated other comprehensive
income” for the previous fiscal year.

6. Notes to Consolidated Balance Sheets
Thousands of
U.S. dollars

Millions of yen

2010

2011

2011

1) Accumulated depreciation of property, plant and equipment¥32,533¥33,921$407,956

2) Investments in non-consolidated subsidiaries and affiliates
included in investment securities¥ 1,325¥ 1,332$ 16,030

As of March 31

3) Assets pledged as collateral:¥     9¥     9$    113

Investment securities

261

385

4,635

Long-term loans receivable

615

692

8,333

¥   886¥ 1,087$ 13,082

Land

Total
4) Contingent liabilities¥ 2,974¥ 2,928$ 35,221

5) Discounts on notes receivable¥    38¥   380$  4,578$481,058

6) Loan commitment agreement:¥40,000¥40,000

Loan balance outstanding

—

—

—

Difference (unused portion)¥40,000¥40,000$481,058

Maximum limit under the agreement

7) Land revaluation
Based on the Land Revaluation Law, the Company has revaluatedland held for business use and has recorded any discrepancies in the
consolidated balance sheets as revaluation reserve for land.
Method of revaluation
In accordance with Item 3 of Article 2 of the Land Revaluation Law,revaluation is calculated by making rational adjustments to values listed in the tax register book or supplementary land tax register book.
Date of revaluation: March 31, 2002
In the fiscal year ended March 31, 2011, the fair value of revaluatedland exceeded the book value after the revaluation.

A N N UA L R E P O R T 2 0 1 1

13

7. Notes to Consolidated Statements of Income
Thousands of
U.S. dollars

Millions of yen

For the years ended March 31

2011

2010

2011

1) Provision for loss on construction contracts¥ 6,109¥ 5,893$ 70,874

2) Valuation loss on real estate for sale¥   759¥   786$  9,453

3) Principal components of selling, general and administrative expenses:¥11,517¥11,400$137,103

Provision for bonuses

1,215

1,187

14,280Retirement benefit expenses

1,032

832

10,010

18

617

7,430

¥ 2,146¥ 1,906$ 22,922¥   159¥     9$    1122

2

28¥   161¥    11$    140

Employees’ salaries and allowances

Provision of allowance for doubtful accounts4) Research and development expenditures included in selling,
general and administrative expenses and manufacturing costs5) Gain on sales of noncurrent assets:
Land
Machinery, vehicles, tools, furniture and fixtures
Total

6) Loss on disaster
The Company recorded an extraordinary loss of ¥364 million as a result of the Great East Japan Earthquake. This is comprised of estimatedcosts to restore real-estate holdings, inventories and others. The figure includes the estimated amount of loss to be incurred.

8. Notes to Consolidated Statement of Comprehensive Income
Comprehensive income for the fiscal year ended March 31, 2010:

Millions of yen

Comprehensive income attributable to owners of the parent¥18,545

Comprehensive income attributable to minority interests

(34)

Total

¥18,511

Other comprehensive income for the fiscal year ended March 31, 2010:

Millions of yen

Valuation difference on available-for-sale securities¥15,308

Deferred losses on hedges(49)

Foreign currency translation adjustment

68

Total

¥15,327(Additional Information)
The “Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25 issued on June 30, 2010) has been applied fromthe fiscal year ended March 31, 2011.

9. Notes to Consolidated Statements of Changes in Net Assets
Number of shares

For the year ended March 31, 2010

Class of shares

March 31, 2009

Increase

Decrease

March 31, 2010

Issued stock

Common stock

322,656,796——

322,656,796

Treasury stock

Common stock

10,131,949

2,914,497—

13,046,446

Class of shares

March 31, 2010

Increase

Decrease

March 31, 2011

Issued stock

Common stock

322,656,796——

322,656,796

Treasury stock

Common stock

13,046,446

596,502—

13,642,948

Class of shares

Total dividends

Dividends per share

Record date

Effective dateJune 26, 2009 resolution byannual general meeting of shareholders

Common stock¥2,202 million¥7.00

March 31, 2009

June 29, 2009

June 29, 2010 resolution byannual general meeting of shareholders

Common stock¥2,181 million¥7.00

March 31, 2010

June 30, 2010

Number of shares

For the year ended March 31, 2011

For the year ended March 31, 2010

Note: Total dividends include dividends to consolidated subsidiaries (an amount that corresponds to their equity holding).
14

A N N UA L R E P O R T 2 0 1 1

For the year ended March 31, 2011

Class of shares

Total dividends

Dividends per share

Record date

Effective dateJune 29, 2010 resolution byannual general meeting of shareholders

Common stock¥2,181 million($26,240 thousand)¥7.00

March 31, 2010

June 30, 2010

June 29, 2011 resolution byannual general meeting of shareholders

Common stock¥2,179 million($26,215 thousand)¥7.00

March 31, 2011

June 30, 2011

Note: Total dividends include dividends to consolidated subsidiaries (an amount that corresponds to their equity holding).

10. Notes to Consolidated Statements of Cash Flows
Reconciliation between cash and deposits on the consolidated balance sheets and cash and cash equivalents at the fiscal year-end:
Thousands of
U.S. dollars

Millions of yen

2010

2011

2011

¥44,334¥42,268$508,339

As of March 31
Cash and deposits on the consolidated balance sheets

(874)

(614)

(7,384)

Cash equivalents

17,00020,000240,529

Cash and cash equivalents on the consolidated statements of cash flows¥60,459¥61,654$741,483(Less) time deposits with maturities of more than three months

11. Lease Transactions
Thousands of
U.S. dollars

Millions of yen

2010

2011

2011

56

¥   55$    669

93

74

896

¥ 149

¥  130$  1,566¥1,420¥1,348$ 16,219

As of March 31
Future minimum lease payments under noncancellable operating leases:
Due within one year¥

Due after one year
Total
Future minimum lease income under noncancellable operating leases:
Due within one year
Due after one year

7,940

7,227

86,917

Total¥9,361¥8,575$103,137

12. Fair Value of Financial Instruments
Millions of yen

March 31, 2010

Book value

Fair value

Difference

1) Cash and deposits¥ 44,334¥ 44,334¥—

2) Notes receivable, accounts receivablefrom completed construction contracts
and other

98,16098,149(11)3) Short-term investment securities andinvestment securities (Note)

125,774

125,809

35

1,433

1,428

(4)

¥269,702¥269,722¥191) Notes payable, accounts payable forconstruction contracts and other

100,630

100,630—

2) Short-term loans payable

40,81940,819—4) Long-term loans receivable
Assets total

3) Income taxes payable

594

594

—

4) Long-term loans payable

18,77018,787

17¥160,815¥160,83217¥     46¥     46¥—

Liabilities total
Derivative financial instruments

Note: The fair value of unlisted stocks is considered to be extreamly difficult to calculate, as there are no market prices and no valuations of future cash flow.
Therefore,these stocks are not included in “Short-term investment securities and investment securities.”

A N N UA L R E P O R T 2 0 1 1

15

Non-listed stocks:
As of March 31, 2010 (stated at book value)

Millions of yen

Stocks of non-consolidated subsidiaries and affiliated companies
which are not accounted for by the equity method:
Stocks of subsidiaries¥   89Stocks of affiliated companies

181

Non-listed preferred equity securities

1,055

Other investment securities:
Non-listed stocks¥6,281

Investment in capital of investment business partnerships

9

Non-listed preferred equity securities

3,225
Millions of yen

Thousands of U.S. dollars

As of March 31, 2011

Book value

Fair value

DifferenceBook value

Fair value

Difference

1) Cash and deposits¥ 42,268¥ 42,268¥—$  508,339$  508,339$ —2) Notes receivable, accounts receivablefrom completed construction contracts
and other

133,474

133,469(5)

1,605,229

1,605,163(65)3) Short-term investment securities andinvestment securities (Note)

118,811

118,83625

1,428,879

1,429,182

302

1,422

1,423

0

17,113

17,116

3¥295,977¥295,997¥20$3,559,561$3,559,802$2401) Notes payable, accounts payable forconstruction contracts and other118,134

118,134—

1,420,734

1,420,734—

2) Short-term loans payable

43,913

43,913—528,120

528,120—4) Long-term loans receivable
Assets total

3) Income taxes payable

620

620

—

7,457

7,457

—

4) Long-term loans payable

14,20914,25949

170,895

171,488592¥176,877¥176,926¥49$2,127,209$2,127,801$592¥     26¥     26¥—$      317$      317

$ —Liabilities total
Derivative transactions

Note: The fair value of unlisted stocks is considered to be extremely difficult to calculate, as there are no market prices and no valuations of future cash flows.
Therefore, these stocks are not included in “Short-term investment securities and investment securities.”

Non-listed stocks:
As of March 31, 2011 (stated at book value)

Millions of yen

Thousands of
U.S. dollars¥   89$ 1,071

Stocks of non-consolidated subsidiaries and affiliated companies
which are not accounted for by the equity method:
Stocks of subsidiaries

188

2,271

1,055

12,687

Non-listed stocks¥6,245$75,106

Non-listed preferred equity securities

3,427

41,215505

6,074

Stocks of affiliated companies
Non-listed preferred equity securities
Other investment securities:

Others16

A N N UA L R E P O R T 2 0 1 1

13. Marketable Securities and Investment Securities
Millions of yen

As of March 31, 2010

Book value

Fair value

Difference¥1,298¥1,334¥36

Held-to-maturity debt securities: Securities with a fair value that exceeds
the book value Securities with a fair value that does notexceed the book value
Total

116

115

(0)

¥1,414¥1,450¥35

Millions of yen

As of March 31, 2010

Acquisition cost

Book value

Difference  Stocks¥44,572¥ 83,939¥39,367  Bonds———  Others———

44,572

83,93939,367  Stocks

26,47023,072(3,397)  Bonds

234

234

—

  Others

17,15017,112(37)

Available-for-sale securities with a fair value: Securities with a book value thatexceeds the acquisition cost:  Subtotal Securities with a book value that does
not exceed the acquisition cost:  Subtotal

43,85440,419(3,435)  Total¥88,426¥124,359¥35,932

Note: The Companies recognized losses on write-down of ¥190 million for available-for-sale securities.

Millions of yen

For the year ended March 31, 2010
Available-for-sale securities sold

Sales amount

Total gain on sales

Total loss on sales

¥263

¥12

¥294

Millions of yen

As of March 31, 2011

Thousands of U.S. dollars

Book value

Fair value

DifferenceBook value

Fair value

Difference¥1,415¥1,441¥25$17,029$17,339$310

Held-to-maturity debt securities: Securities with a fair value that exceeds
the book value Securities with a fair value that does notexceed the book value
Total

113

113

(0)

1,370

1,362

(7)

¥1,529¥1,555¥25$18,399$18,702$302

A N N UA L R E P O R T 2 0 1 1

17Millions of yen

As of March 31, 2011

Thousands of U.S. dollars

Acquisition cost

Book value

Difference

Acquisition cost

Book value

Difference  Stocks¥44,204¥77,140¥32,936$  531,621$  927,728$396,107  Bonds

—

—

—

—

—

—

  Others

—

—

—

—

—

—

44,204

77,14032,936531,621927,728

396,107  Stocks

26,681

20,032(6,649)320,888

240,914(79,974)  Bonds

—

—

—

—

—

—

  Others

20,15020,108(41)

242,333

241,836(496)  Subtotal

46,83140,140(6,691)

563,222482,751(80,470)  Total¥91,036¥117,281¥26,245$1,094,843$1,410,479$315,636

Available-for-sale securities with a fair value: Securities with a book value thatexceeds the acquisition cost:  Subtotal Securities with a book value that does
not exceed the acquisition cost:

Note: The Companies recognized losses on write-down of ¥203 million for available-for-sale securities.

Millions of yen

As of March 31, 2011
Available-for-sale securities soldThousands of U.S. dollars

Sales amount

Total gain on sales

Total loss on sales

Sales amount

Total gain on sales

Total loss on sales

¥36

¥1

¥30

$438

$12

$369

14. Derivative Transactions
For the year ended March 31, 2010
Derivative transactions to which the hedge accounting method is not applied:
None
Derivative transactions to which the hedge accounting method is applied:(1) Currency-related transactions
Millions of yen
Method of processing

Measures

Method in principle

Forward foreignexchange contracts
Buy EUR

Objects

Trade payables

Contract
amountmore than
1 yearEstimated
fair value

¥668

¥—

¥(46)

Estimated fair value was calculated based on price information provided by the counterparty financial institution.

(2) Interest-related transactions
Millions of yen
Method of processing

MeasuresInterest rate swaps
Exceptional treatment
of interest rate swaps Payment fixed,
receive floating

Objects

Contract
amountmore than
1 yearEstimated
fair value

Long-term loans
payable¥2,000¥2,000** These interest rate swaps, subject to the exceptional treatment, are treated en bloc with the relevant long-term loans payable.
Therefore, the fair value of the contracts are included in the fair value of the relevant long-term loans payable.

18

A N N UA L R E P O R T 2 0 1 1

For the year ended March 31, 2011
Derivative transactions to which the hedge accounting method is not applied:
None
Derivative transactions to which the hedge accounting method is applied:(1) Currency-related transactions
Millions of yen
Method of processing

Measures

Objects

Thousands of U.S. dollars

Contract
amountmore than
1 yearEstimated
fair value

Contract
amountmore than
1 yearEstimated
fair value

¥399

¥—

¥(22)

$4,805$—$(272)

Forward foreignexchange contracts
Method in principle

Buy EUR

Forecasted purchasingtransaction

Buy USD

Forecasted purchasingtransaction

Total

322

—

(3)

3,875

—

(38)

¥721

¥—

¥(25)

$8,680$—$(311)

Estimated fair value was calculated based on price information provided by the counterparty financial institution.

(2) Interest-related transactions
Millions of yen
Method of processing

MeasuresInterest rate swaps
Exceptional treatment
of interest rate swaps Payment fixed,
receive floating

Objects

Long-term loans
payableThousands of U.S. dollars

Contract
amountmore than
1 yearEstimated
fair value

Contract
amountmore than
1 yearEstimated
fair value¥3,500¥3,500*$42,092$42,092** These interest rate swaps, subject to the exceptional treatment, are treated en bloc with the relevant long-term loans payable. Therefore, the fair value of the contracts are included in the fair value of the relevant long-term loans payable.

15. Retirement Benefits
The Company had a defined benefit plan that consists of a defined benefit pension plan and a lump-sum benefit plan. Additional retirement
benefits are paid in certain circumstances. Domestic consolidated subsidiaries have lump-sum benefit plans.
Thousands of
U.S. dollars

Millions of yen

As of March 31
Retirement benefit obligation

2010

2011

2011

¥(49,441)¥(46,763)$(562,395)

Pension assets

24,573

23,611

283,960

Unfunded retirement benefit obligation(24,868)(23,151)(278,435)

Unrecognized actuarial differences

1,785

1,601

19,256

Unrecognized prior service costs(1,484)(1,187)(14,286)

Provision for retirement benefits¥(24,567)¥(22,738)$(273,464)
Thousands of
U.S. dollars

Millions of yen

2010

2011

2011

Service cost

¥1,885¥1,771$21,299

Interest cost

1,028

961

11,558

Expected return on pension assets

(280)

(292)

(3,522)

Amortization of actuarial differences

274

184

2,221

Amortization of prior service costs

(49)

(296)

(3,571)¥2,858¥2,326$27,985

For the years ended March 31

Retirement benefit costs

A N N UA L R E P O R T 2 0 1 1

19

For the years ended March 31

2010

2011

Straight-line
methodStraight-line
methodBasis of calculating retirement benefit obligation:
Periodic allocation method of projected retirement benefit obligation
Discount rate

2.00%

2.00%

Expected return on pension assets

1.20%

1.20%

Amortization period of prior service costs

5 years

5 years

Amortization period of actuarial differences

5 years

5 years

16. Deferred Tax Accounting
The tax effects of temporary differences which gave rise to deferred tax assets and liabilities at March 31, 2010 and 2011 are as follows:
Thousands of
U.S. dollars

Millions of yen

2010

2011

2011

¥11,062¥   666$  8,017

905

966

11,627

Allowance for doubtful receivables

1,242

1,474

17,735

Provision for bonuses

1,365

1,334

16,054

Provision for loss on construction contracts

2,618

3,773

45,381

Provision for retirement benefits

9,924

9,190

110,530

614

8,248

99,195

As of March 31
Deferred tax assets:
Real estate for sale
Buildings and structures

Tax loss carryforwards
Other

2,892

2,498

30,052

Subtotal

30,62528,154

338,594

Less: valuation allowance
Deferred tax assets(1,765)(1,784)(21,458)¥28,859

26,369317,135

Deferred tax liabilities:
Reserve for advanced depreciation of noncurrent assets(2,740)(2,725)(32,775)

Valuation difference on available-for-sale securities(14,647)(10,709)(128,793)

(229)

(273)

(3,294)

Deferred tax liabilities(17,616)(13,708)(164,863)

Net deferred tax assets (liabilities)¥11,242¥12,661$152,272

Other

In addition to the above, the Companies recognized deferred tax liabilities of ¥11,926 million and ¥11,888 million related to revaluation reserve
for land at March 31, 2010 and 2011, respectively.
2010

2011

40.7%

40.7%

Reconciliation between the statutory tax rate and the effective tax rate:
Statutory tax rate

20

Expenses not deductible for income tax purposes

8.3

7.2

Non-taxable income

(5.0)

(4.9)

Gain of negative goodwill

—

(2.2)

Inhabitant taxes (per capita levy)

5.0

4.4

Valuation allowance

4.5

0.5

Other

(5.0)

(0.6)

Effective tax rate

48.4%

45.1%

A N N UA L R E P O R T 2 0 1 1

17. Fair Value of Real Estate for Rent
Millions of yen

As of March 31, 2010

Book Value

Fair Value

Real estate for rent

¥52,355¥75,046

As of March 31, 2011

Book Value

Fair ValueBook Value

Fair Value

Real estate for rent

¥54,527¥76,238$655,766$916,884

Millions of yen

Thousands of U.S. dollars

18. Segment Information
Millions of yen
Building
construction

Civilengineering

Real estate

Other

Total

Reconciliations

Consolidated¥362,548¥100,821¥11,087¥  598¥475,055¥   —¥475,055

1,909

150

1,441

711

4,212

(4,212)—364,457

100,971

12,5291,310

479,268(4,212)

475,055

11,300

853

1,564

68

13,786(7,378)

6,408

Depreciation and amortization

377

51

992

15

1,437

650

2,087

Amortization of goodwill

55

—

—

—

55

—

55

For the year ended March 31, 2010
Net sales:
Customers
Inter-segment
Total
Segment profit or loss

Reconciliation of segment profit or loss includes negative ¥94 million elimination of intersegment transactions and negative ¥7,283 million corporate expenses which are not allocated to the reporting segments.
The corporate expenses mainly consist of selling, general and administrative expenses which do not belong to the reporting segments.
Segment profit or loss is adjusted in accordance with operating income as recorded in the consolidated statements of income.
Millions of yen

For the year ended March 31, 2011

Building
construction

Civilengineering

Real estate

Other

Total

¥356,780¥83,142¥12,299¥  540¥452,762

2,722

1,142

1,426

714

6,006

(6,006)—

359,50284,284

13,726

1,255

458,768(6,006)452,762

Reconciliations

Consolidated

Net sales:
Customers
Inter-segment
Total

¥

—

¥452,762

12,518

(7)

1,836

97

14,445(8,440)6,004

Depreciation and amortization

340

42

945

16

1,344

672

2,016

Amortization of goodwill

55

—

—

—

55

—

55

Segment profit or loss

Reconciliation of segment profit or loss includes negative ¥197 million elimination of intersegment transactions and negative ¥8,243 million corporate expenses which
are not allocated to the reporting segments.
The corporate expenses mainly consist of selling, general and administrative expenses which do not belong to the reporting segments.
Segment profit or loss is adjusted in accordance with operating income as recorded in the consolidated statements of income.

A N N UA L R E P O R T 2 0 1 1

21

Thousands of U.S. dollars
Building
construction

Civilengineering

Real estate

Other

Total

Reconciliations

Consolidated$4,290,801$  999,906$147,918$ 6,500$5,445,126$      —

$5,445,126

32,736

13,743

17,1608,593

72,232(72,232)

4,323,538

1,013,649

165,078

15,093

5,517,359(72,232)

5,445,126

150,552      (86)22,086

1,176  173,728(101,512)   72,216

4,089

512

11,366

197

16,166

8,084

24,250

671

—

—

—

671

—

671

For the year ended March 31, 2011
Net sales:
Customers
Inter-segment
Total
Segment profit or loss
Depreciation and amortization
Amortization of goodwill

Reconciliation of segment profit or loss includes negative $2,373 thousand elimination of intersegment transactions and negative $99,138 thousand corporate
expenses which are not allocated to the reporting segments.
The corporate expenses mainly consist of selling, general and administrative expenses which do not belong to the reporting segments.
Segment profit or loss is adjusted in accordance with operating income as recorded in the consolidated statements of income.
The Companies operate in the following four reporting segments:
Building construction....... Research, planning, design, management and execution of building construction work, and architectural and comprehensive
engineering and consulting related thereto
Civil engineering............... Research, planning, design, management and execution of civil engineering work, such as tunnel construction, and architectural andcomprehensive engineering and consulting related thereto
Real estate....................... Resale, rent and intermediary of real estate and building management
Other business................. Worker dispatching and hotel businesses, and financing and leasing mainly for the group companies.

(Additional Information)
The “Accounting Standard for Disclosure about Segments of an Enterprise and Related Information” (ASBJ Statement No. 17 issued on March
27, 2009) and the “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20 issued on March 21, 2008) have been applied from the fiscal year ended March 31, 2011.

19. Per Share Information
Yen

U.S. dollars

2010

2011

2011

Net assets per share of common stock¥621.93607.54

7.306

Net income per share of common stock

10.23

12.20

0.146

As of March 31

Thousands of
U.S. dollars

Millions of yen

2010

2011

2011

¥196,821¥191,758$2,306,179

4,266

4,021

48,367¥192,555¥187,737$2,257,811

309,610,350
shares309,013,848
sharesYears ended March 31
Basis for calculation of net assets per share:
Total net assets
Amount attributable to items other than common stock
Net assets attributable to common stock
Number of shares of common stock outstanding at fiscal year-end
Basis for calculation of net income per share:
Net income

¥

3,175

¥  3,774$   45,394

Net income attributable to common stock

¥

3,175

¥  3,774$   45,394

310,455,346
shares309,427,740
sharesAverage number of shares of common stock outstanding during fiscal year

22

A N N UA L R E P O R T 2 0 1 1

I ndependent Auditors’ R epor t
To d a C o r p o r a ti o n an d Co n s o l i dated Su bs i di ari es

A N N UA L R E P O R T 2 0 1 1

23

Corporate I nformation
As of June 29, 2011

Company Name:TODA CORPORATIONFounded:January 5, 1881

Company Headquarters:
7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8388, Japan

Stock Listings:
Tokyo Stock Exchange andOsaka Securities Exchange

Areas of Business:
1. Research, planning, design, management and execution
associated with all aspects of architectural and civil engineering
together with related comprehensive engineering and consulting
2. Research, planning, design, management and execution
associated with local development, urban development andother comprehensive engineering and consulting
3. Real estate sale and purchase, rental, intermediary services,management and appraisal

Capital Stock:¥23.0 billion (as of March 31, 2011)
Number of Employees:
5,034 (Consolidated)
4,110 (Non-Consolidated)(as of March 31, 2011)

Board Of Directors, Corporate Auditors and Executive Officers
As of July 1, 2011

Directors

Executive Officers

Director and Honorary Chairman
Junnosuke Toda

President and Chief Executive Officer
Shunzo Inoue

Director and Senior Adviser
Moriji Toda

Senior Managing Executive Officers
Masayuki Shirai
Toshiro Oka
Noboru Nomura
Masami Yamashita
Kuniaki Ishimaru

Chairman and Representative Director
Hisao Kato
President and Representative Director
Shunzo Inoue
Representative Directors
Masayuki Shirai
Toshiro Oka
Noboru Nomura
Directors
Hideshige Toda
Masami Yamashita
Corporate Auditors
Standing Corporate Auditors
Morimichi Toda
Hiroyuki Naito
Corporate Auditors
Yoshiaki Kaji
Kenichi Masuda
Katsutoshi Suzuki

24

A N N UA L R E P O R T 2 0 1 1Managing Executive Officers
Michio Suzuki
Hatsuaki Matsumoto
Katsuaki Fukushima
Kazuo Yamane
Etsuo Nonoguchi
Masanori Imai
Yushi Kikutani
Yutaka Nishizawa

Executive Officers
Kikuo Sumi
Norimasa Togami
Takashi Doi
Toshihiro Abe
Yasushi Miyazaki
Tetsunaga Yamaguchi
Koichi Iwamori
Masashi Nishimura
Teruo Sahashi
Koji Tada
Hiroaki Inoue
Noboru Yamaki
Hideo Inagaki
Shunichi Akiba
Takeshi Nishimaki
Hiroyuki Miyazaki
Keiichi Ebihara
Yuji Yokomizo
Toshihiro Otomo

A N N UA L R E P O R T 2 0 1 1

25

7-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8388, Japan
Phone: +81-3-3535-1591 Fax: +81-3-3561-5745

TODA AMERICA, INC.
5816 Corporate Avenue, Suite 160, Cypress, CA 90630, U.S.A.
Phone: +1-714-220-3141 Fax: +1-714-220-1360
CONSTRUTORA TODA DO BRASIL S.A.
Rua Manuel da Nobrega, 1280-3° Andar. São Paulo, Brasil
Phone: +55-11-3886-5844 Fax: +55-11-3885-0705
TODA CONSTRUCTION (SHANGHAI) CO., LTD.
6A, 9 Joy Tower, 9 Zhenning Road, Changning District, Shanghai, China, 200050
Phone: +86-21-6252-0777 Fax: +86-21-6252-5030
THAI TODA CORPORATION LTD.
Somerset Lake Point (Tower-A, 5th Floor), 41 Soi Sukhumvit 16, Sukhumvit Road, Klongtoey Bangkok 10110, Thailand
Phone: +66-2-261-6544 Fax: +66-2-261-6545
TODA VIETNAM CO., LTD.
10th Floor, Star Building, 33ter-33bis Mac Dinh Chi Street, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam
Phone: +84-8-6291-4127 Fax: +84-8-6291-4126

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Printed using soy ink made from plants containing minimal volatile organic compound