Results Briefing
for the Second Quarter Ended September 30, 2015

November 16, 2015

TODA CORPORATION
1This report contains forward-looking statements regarding Toda
Corporation and the Group’s corporate plans, strategies, andbusiness forecasts.
These statements include Toda Corporation’s forecasts basedon information currently available as of the announcement date,
which are subject to a number of risks and uncertainties.
Therefore, the actual results or developments may differ fromthose presented in these forward-looking statements due tochanges in various factors.

2Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Progress in Implementation ofManagement Plan
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

41-1. Summary of Financial Results
for the Second Quarter

5

Highlights: FY2015 2Q
 Consolidated Net Sales: ¥218.4 billion, up 16.3% year-on-year： Net sales rose 16.3% year-on-year to ¥218.4 billion, as
completed construction contracts increased.

 Operating Income: ¥10.9 billion, up 61.5% year-on-year： Operating income increased 61.5% year on year, to ¥10.9 billion,as gross profit on completed construction contracts improved .

 Orders Received (non-consolidated): ¥167.4 billion, down
24.2% year on year
： Orders for architectural construction fell 24.3% year on year, as
both public and private sector orders declined. Orders for civilengineering fell 24.0% year on year due to the impact of large
public sector projects received in the previous fiscal year.
6Summary:FY2015 2Q(Billions of yen)

Apr-Sep
FY2014
Consolidated
net sales

Apr-Sep FY2015
Forecasts atthe beginningof the termActuals

Change(year onyear)

Difference(vs. forecast)

187.8

200.0

218.4

16.3%

18.4

Operatingincome

6.8

4.5

10.9

61.5％

6.4

Ordinary income

7.6

5.2

11.9

56.2%

6.7

Profit attributable toowners of parent

7.9

4.6

11.3

42.5%

6.7

220.9

160.0

167.4

-24.2%

7.4

Orders received(non-consolidated)7

Main Orders Received
Ordering Parties
Architectural
Construction

CivilEngineering

Name of Works

Kuwana City Medical Center

Kuwana City Medical Center

Hyogo Prefecture

New particle radio therapy facility

Toyo University

Akabanedai Campus new school building

ORIX Corp., The Sankei Building Co., Ltd.

Sanno Project

Kamaishi City, Iwate Prefecture

Kamaishi Civic Hall

Ministry of the Environment

FY2015 Namie decontamination, etc.

Miyagi Prefecture

Tsuya River non-statutory river disaster restoration

Chugoku Regional Development Bureau

Nagato-Tawarayama Road Taineiji Temple Tunnel No. 1

Eurus Energy (Date Kogane Wind Farm)Wind farm*Honorific prefixes are omitted. Work names are abbreviations.

8

Main Works Completed
Ordering Parties
Architectural
Dokkyo Gakuen
Construction

CivilEngineering

Name of Works
Dokkyo Medical University teaching staff quarters

Nagasaki Tadewara Solar LLC

Nagasaki Mega Solar Power Plant

Asahishuzo Co., Ltd.

New sake storehouse construction

Azabu University

Construction of new Block No. 5, new cafeteria

Myojo Foods Co., Ltd.

Higashi Nippon Myojo Saitama Plant expansion

Tohoku Regional Development Bureau

National Highway 45 Yamoto Ishinomaki Road substructure work

Kochi City

Enokuchi stormwater storage pipe construction work

Kinki Regional Development Bureau

Second Hanwa National Highway Otani Nishi area improvement

Kinki Regional Development Bureau

Wakayama Misaki Road Hirai Tunnel*Honorific prefixes are omitted. Work names are abbreviations.

91-2. Details of Financial Results10(Consolidated) Toda GroupBusinessSubsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

Construction

Architectural
Construction

14 companies

8companies

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

CivilEngineering

Real Estate

1company

Toda Road Co., Ltd.

Toda Bldg. Partners Co., Ltd.

ABTD, inc.

Toda America, Inc.

2
companies

Toda Finance Co., Ltd.
Other

Chiyoda Staff Service Co., Ltd.

3
companies

Towa Kanko Kaihatsu Co., Ltd.

11

(Consolidated) Summary of Group Performance
Apr-Sep FY2015

Toda CorporationProfit
marginBillions of yen
Net sales

205.2

Gross profit

21.2

Selling, general andadministrative expenses

Operating income
Non-operating income

Ordinary income

Subsidiaries total

10.2
10.9

1.3

5.4

0.0

6.4

0.1

22.5

0.1

10.9

0.8

11.9

0.6

0.0

0.7

Profit before income taxes

12.4

0.2

12.6

1.3

(0.0)

1.3

Profit income

11.0

5.4

0.2

1.06
10.3

1.06

5.0

1.00

5.5

1.01

5.2

1.02

0.9

Extraordinary income

Income taxes

Ratio ofconsolidated
to nonconsolidated

11.5

0.1
5.8

Profitmargin

218.4

1.3

0.8
11.8

Profitmargin21.7
10.4

Consolidated

1.3

11.3

*Profit margin: %12

(Consolidated) Factors Contributing toChanges in Operating Income(Billions of yen)

Lower cost ofsales, etc.
Net sales
increase

2.0

2.8

Gross profit
improvement[＋4.9]

6.8

Apr-Sep 2014

-0.2
Higheremployeesalaries andallowances
due to theacross-theboard pay
increase-0.2
Higherallowance for
doubtfulaccounts due
to increase inaccounts
receivable fromcompleted
construction
contracts andotherIncrease in SG&A
expenses[－0.7]

-0.2
Other

10.9

Operating income
improvement[＋4.1]

Apr-Sep 2015
13

(Consolidated) Balance Sheets
Assets(Billions of yen)

Liabilities and Net Assets (Billions of yen)

＋11.9

+11.9
507.3

495.4

Current
assets228.0

Notes receivable, accounts
receivable from completed
construction contracts andother+26.4
Securities+8.0

Current
assets
259.4

507.3

495.4

Current
liabilities
208.7

Notes payable, accounts
payable for construction
contracts and other-4.5
Provision for loss on
construction contracts -3.3
Advances received onuncompleted construction
contracts
+11.8

+31.3

＋8.3
Noncurrent
liabilities

Corporate bonds

103.6
Noncurrent
assets

-19.3

267.3

Investment securities -19.2

247.9

119.4％

15/9
Sep
2015
Current ratio

135.9％+10.0

Noncurrent
liabilities

110.9

＋7.2

Noncurrent
assets-3.6
Net assets

182.9

15/3
Mar
2015

Current
liabilities
217.1

Retained earnings

Net assets+8.8

Valuation difference on
available-for-sale securities
-12.6

15/3
Mar
2015
36.4％

179.3

15/9
Sep
2015
Equity ratio

34.9％

14

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei stock average (term-end)(Billions of yen)

Stock price (yen)19,206250.0

20,00017,388200.0

14,827
12,397

150.0

143.3

185.4
166.2

147.5
110.3

60.4

15,00070.4

91.6

10,000

100.0
5,000
50.0

0.0

82.8

77.1

75.1

74.5

Mar 2013

Mar 2014

Mar 2015

Sep 2015

015

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

Corporate bonds

Short-term
＋14.5

65.5

80.8

80.0

66.3
37.4

13.2
33.7

10.0
52.3

D/E ratio

32.5

33.4

Mar 2014

Mar 2015

Sep 2015Mar 2016
(forecast)

0.48x

0.37x

0.46x

ー
16

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

Civil engineering(Billions of yen)

15.5
2.1

7.5
13.4

2.5
5.0

-3.3

4.2
1.9
2.2

Mar 2014

Mar 2015

15/9Sep2015
17

(Consolidated) Statement of Cash Flow
(Billions of yen)
＋3.6

62.8

+12.6
Income before income taxes
Advances received on uncompleted construction contracts +11.9
Notes and accounts receivable – trade(26.4)
Costs on uncompleted construction contracts(6.0)
Notes and accounts payable – trade(4.4)

Cash and cash
equivalents
at end ofperiod

59.2

Cash and cash
equivalents
at beginning ofperiod
Increase in funds(8.1)

Decrease in funds[Mar 31, 2015](0.2)
Investing CF

Financing CF
12.2

Operating CF

Sale of investment securities+2.1
Purchase of investment securities(1.1)
Sale of property, plant and equipment+0.8
Purchase of property, plant and equipment (1.6)[Sep 30, 2015]
Bonds issuance
Net increase in loans
Dividends paid

+10.0＋4.5
(2.1)

18

1-3. Performance Forecasts

19Forecasts for FY2015 (Year Ending March 31, 2016)
FY2015FY2014
Forecasts Change (year on year)(Billions of yen)

Consolidated net
sales

420.3

496.0

75.6

18.0%

Operating income

12.9

19.1

6.1

47.2％

Ordinary income

14.8

21.0

6.1

41.8％

Profit attributable toowners of parent

14.0

18.8

4.7

34.0％

Orders received(non-consolidated)

449.7

400.0

-49.7

-11.1%

Annual dividends(yen)

792ー20(Non-consolidated) Forecasts for the Construction Business(Billions of yen)Orders Received forConstruction

Net Sales of Completed
Construction Contracts

Gross Profit Margin on Completed
Construction Contracts

455.0

449.7
400.0

378.0

117.6
90.0

Civil
Engineering

Civil
Engineering

8.7

95.0

Total 8.7
8.6

Civil
Engineering

91.2

8.5

（％）
332.0

310.0

Architectural
Construction

8.9

8.2

Architectural
Construction

8.6

8.1

360.0 Architectural
Construction

286.8

8.3

8.0

7.9
7.9

7.7
7.5

15/3
FY2014

16/3
FY2015（予）(forecast)

15/3
FY2014

16/3
FY2015（予）(forecast)

15/3
FY2014FY2015
16/3(forecast)（予）21

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

Profitability（％）

Net sales

462.5

Gross profit

41.0

8.9

Profits in the construction
business

39.3

8.6

[31.0][8.6][Civil engineering]

[8.3]

[8.7]

Profits in the real estate business

1.7

22.7

Selling, general and administrative
expenses

22.6

Operating income

18.4

4.0

Ordinary income

20.1

4.3

Extraordinary income

18.0

3.9

[Architectural construction]22

2. Progress in Implementation ofManagement Plan

President Masanori Imai

23

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

Foundation for GrowthEstablish the highestlevel of productivity inthe general
construction sector

Pursue synergies
between businessdomain expansion andconstruction

24Concept of Business Strategy
Strong construction
investments

Decline in investments

Intensified competition

Labor productivity = Increased added value
2. Strategic business toproduce profit(Change in construction
investments)(Net sales)

Concentrate human resources in investment &development, overseas, group companies

427.5 billion yen
1. Raise completed
construction composition ratio
Increase in the amount of gross profit

377.8 billion yen

FY2014FY2017

FY2020 25

2-1. Efforts in First Half26No.1 inproductivity

Productivity-related Efforts(Net sales per employee [million yen])125
Line attaining labor productivity 13 million yen(medium-term goal)
100

75

FY2015 Forecasts
Net sales per employee : ¥101.0mn
Operating income ratio : 4.0%
: ¥13.50mn
Labor productivity

FY2014 Results
Net sales per employee : ¥85.0mn
Operating income ratio : 3.0%
Labor productivity: ¥11.54mn

50
2.0

3.04.0（Operating income ratio [%])

5.0

*The figures are non-consolidated basis.
*Labor productivity (added value/employee) = Operating income/employee (Net sales/employee × Operatingincome) + Overall labor cost/employee27No.1 inproductivity

No. 1 Productivity Promotion Committee
Promotes Business Process Re-engineering(BPR) and technological development efforts
Business flow review, group-wide lateral spread andimplementation
Development and spread of new ICT, construction technology
and procurement system

No. 1 Productivity
Promotion Committee
BPR implementation
project

Group-wideimplementation
based onbusiness flowreview

ICT rebuilding project

Promotion ofinitiatives forICT renewal

Construction
technology innovation
project

Strategic procurement
projectInnovativetechnologicaldevelopment,introduction in
the field

Promotion ofstandardizationof order method
andspecifications 28

Foundation for growth

Initiatives in Strategic Investments
Redevelopment Kyobashi
1-chome East Side

■ To form an open art and culturalbase in the town
Block redevelopment,■ strengthening of disaster
response capability, reduction ofenvironment burden
Block A: FY2016 - FY2019
Block B (the headquarters
building of the company): FY2021- FY2023
Block C: FY2016 - FY2018

29

Foundation for growth

Headquarters Building Reconstruction Project
Disseminating company
stance and securing
stable incomeImproving and concentrating
technical ability
Social contribution *Low-rise
portionSecuring stable income after
completion
Application: Office, retail outlets,
Scale:

Headquarters building (Block B)

cultural facilities, etc.
28 floors above ground,
3 floors below,
GL+173m
30

2-2. Performance by Business(Forecast)

31

Net Sales by BusinessTotal¥420.3 billion

Groupcompanies

33.1
21.0
5.7

Overseas
Investment &development
Civilengineering(Japan)Architecturalconstruction(Japan)¥496.0 billion¥480.0 billion

36.0
18.9
7.5

93.5

40.0
25.0
5.0

97.5

91.1

358.6
286.7FY2014*Figures include consolidated eliminations

FY2015 (forecast)

330.0

FY2017[Medium-term goal]
32

Operating Income(Domestic Construction Business)
Initial forecast

Architectural construction(Japan)

Revised forecast

Civil engineering (Japan)

15.6［4.3％］
Medium-term goal
¥11.5 billion

Medium-term goal
¥3.6 billion

3.4(Billions of yen)

3.0
［3.3％］

8.9［3.1％］［4.7％］

2.4［2.8％］

7.3［2.3％］FY2014FY2015 (forecast)*Figures do not include consolidated eliminations.
Operating income ratio [ ].

FY2014FY2015 (forecast)

33

Operating Income(Strategic Businesses)
Investment &development

Medium-term goal
¥0.7 billion

1.0［2.8％］(Billions of yen)

(0.3)

0.8
［2.6％］

0.7［1.9％］

0.6［11.8％］

Revised forecast

Group companies

Overseas
Medium-term goal
¥0.7 billion

Medium-term goal
¥0.5 billion

Initial forecast(0.8)

0.4 ［5.7％］
0.4［5.7％］(1.3)
FY2014FY2015 (forecast)

FY2014FY2015 (forecast)*Figures do not include consolidated eliminations.
Operating income ratio [ ].

FY2014FY2015 (forecast)34

2-3. Second Half Policy

35

Recognition of Issues and Measures
Accelerate productivity improvement andstrengthen personnel baseProductivity improvement
Issues
Uncertainties regarding
construction investment
outlookFurther strengthening
initiatives in strategicbusinesses

Improving profit level
Shifting resources tostrategic businesses
Strengthening personnel ability
Nurturing employees who are
self-starters
Fair assessment of job
performance36

Towards Further Growth
Promote initiatives to crystallize the growthstrategy
FY2015FY2016FY2017FY2018 -No.1 in productivity
Foundation for growth
Where are thestrengths?
What needs to bestrengthened?

Bolstering and building“strengths”
No.1 in toughness• Further strengthen strong fields• Build a strong business model37

A corporate group that makes
Your success possible38