May 20
20, 2013

ResultsR
lt Briefing
B i fiforf theth YearY
Ended March 31,, 2013

This report contains forward-looking statements regarding Toda
Corporationpand the Group’s
p corporateppplans, strategies,gandbusiness 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,fthe actual results or developments may differ
ff fromfthose presented in these forward-looking statements due tochanges in various factors.

Results Briefing for the Year Ended March 31, 20132

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Issues and Initiatives
President Shunzo Inoue

3. Direction Going Forward
Deputy President and Executive Officer Masanori Imai

Results Briefing for the Year Ended March 31, 20133

1. Summary of Financial Results
Executive Manager Yushi Kikutani

Results Briefing for the Year Ended March 31, 20134

1-1. Summary of Financial Results
for the Year Ended March 31, 2013

Results Briefing for the Year Ended March 31, 20135

Highlights: FY2012
 Consolidated Net Sales: ¥497.0 billion, up 1.6% year-on-year： Net sales of completed construction contracts increased due to theprogress of contracted construction work by the Company andoverseas subsidiaries
subsidiaries.

 Operating Loss: (¥46.9 billion), down ¥39.0 billion year-on-year： A significant loss was recorded, due to the slump in profits of theconstruction business amid a harsh operating cost management
caused mainly by tight labor situation.

 Orders Received (non-consolidated): ¥339.0 billion, down ¥64.1
billion year-on-year： Orders received declined 15.9% year on year, due to the decrease inorders as a result of promoting selection of orders (architectural
construction: down 22.3% yyear on yyear).
)
Results Briefing for the Year Ended March 31, 20136

Summary: FY2012
FY2012FY2011(Billions of yen)

Forecasts
announced in
the third
quarter

Actuals

Change(year on year)

Difference(vs. forecast)

Consolidated
net sales

489.3

500.7

497.0

+7.7

-3.7

Operatingincome(7.9)(43.0)(46.9)

-39.0

-3.9

O di
Ordinary
iincome

(6 6)
(6.6)

(41 6)(41.6)(45 5)(45.5)

-38.9
38 9

-3.9
39

Net income(19.8)(63.0)(65.2)

-45.4

-2.2

Orders received(Non-consolidated)

403.2

３２７.８

339.0

-64.2

+11.2

Results Briefing for the Year Ended March 31, 2013

7

Main Factors for Losses Incurring loss in the construction business: (¥27.1 billion)： Due to the increased harshness of the cost management environment
caused mainly by a tight labor situation and to the slump in profits ofcontracted construction, a loss was posted. Closely reviewed architectural
construction costs, conservatively estimated profits from construction, andmaded ffront-loadedt l d d postingti off provisioni i ffor lloss on construction
t ti contracts.
t t

 Extraordinary losses: (¥4.4 billion)： Posting include: Gain on valuation of investment securities of roughly ¥1.8
billion, loss on valuation and sales of investment securities of roughly ¥2.2
billion, and impairment loss on noncurrent assets (real estate for rent) ofroughly ¥0.9 billion.

 Increase in income taxes： Tax expenses increased due to ¥17.0 billion reversal of deferred tax assets
reflecting tax revisions.

Results Briefing for the Year Ended March 31, 20138

(Non-consolidated) Construction Business Performance(Billions of yen)Orders Received forConstruction

Net Sales of Completed
Construction Contracts

Gross Profit Margin on
Completed Construction Contracts (%)
4.6

448.9
403 2
403.2
73.8

339.0
83.1

-15.9％

＋0.8％

83.8

Civil
Ci
il
Engineering- 17.4%

368 7
368.7

Architectural
Construction+ 6.1%

4.0
38
3.8

Civil

2.4 Engineering

Civil
Engineering+ 12.7%

Architectural
Construction- 22.3%

329.4

101.5

452.5

347.4

255.8

Total
-6.4
Architectural
Construction-8.4

FY2011FY2012FY2011Results Briefing for the Year Ended March 31, 2013

FY2012FY2011FY20129

(Non-consolidated) Breakdown of the Orders Received(Billions of yen)

Breakdown by Client

By Quarter
Total-15.9％

403.2
2.2

339.0

Overseas-98.2％

97.6

0
298.0

226.9

PrivateSector
-23.9％
23.9％

119.9

４Ｑ
+22.8％

69 1
69.1

３Ｑ
-30.8％

71.5

２Ｑ-34.0％

97.1

78.4

１Ｑ
-19.3％FY2011FY2012

99.9

108.4

102.9

112.0

FY2011FY2012PublicSector+8.7％

Results Briefing for the Year Ended March 31, 201310

Main Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

JAPAN POST Co., Ltd.

Omiya Sakuragicho 1-chome Project

Keisei Hikifune Ekimae Higashi No.3
District Urban Redevelopment Union

Keisei Hikifune Ekimae Higashi No.3 District Urban
Redevelopment

Makino Milling Machine Co., Ltd.

Atsugi No.3 Plant

DOUJINKAIMIMIHARA GENERAL HOSPITAL

Yakult Honsha Co., Ltd.

Yakult Central Institute for Microbiological Research,
Pharmaceutical and Cosmetics Research Buildingy Groupp of
DokkyoAcademic Institutions

Dokkyo Medical University faculty housing

East Nippon Expressway Co., Ltd.

Hokkaido Odan Expressway No.2 Tenjin Tunnel

Global Environment Bureau, Ministry of
the Environment

FY2012 Floating Offshore Wind Turbine Demonstration Project

Tohoku Regional Bureau, Ministry ofLand, Infrastructure and Transport

Sendai Bay South Area MLIT Recovery Project – Nakahama
construction area, Sakamoto District*Honorific prefixes are omitted. Work names are abbreviations.
Results Briefing for the Year Ended March 31, 201311

Main Works Completed
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Mitsubishi Estate Co., Ltd.

Otemachi 1-chome No.2 District Building B

Tokyo Metropolitan Geriatric Hospitaland Institute of Gerontology

Geriatric Hospital and Institute of Gerontology

Urban Renaissance Agency

Musashi-urawa Station No.1 area category 1 urban
redevelopment

Yamato Transport Co., Ltd.

Atsugi Logistics Terminal

Urban Redevelopment Union

Redevelopment of southern section ofWestern Tonyamachip
Red Cross SocietyyJapanese

WakayamayMedical Center

Metropolitan Expressway Co., Ltd.

Mizota Bridge lower girder replacement, Shakuji River
replacement work

C t l Ni
CentralNippon E
Expressway C
Co., LtdLtd.

K
Kawaraguchi
hi over-bridge
b id (l(lower partt construction
t ti work)k)Chugoku Regional Development
Bureau, Ministry of Land, Infrastructure,p and Tourism
Transport

Hiroshima South Road Kannon-higashi improvement work

*Honorific prefixes are omitted. Work names are abbreviations.
Results Briefing for the Year Ended March 31, 201312

1-2. Details of Financial Results

Results Briefing for the Year Ended March 31, 2013

13

(Consolidated) Toda Group
Business

Subsidiaries in Japan

Overseas Subsidiaries

16
Companies

Construtora Toda do Brazil S/A
Toda Reform Co., Ltd.
Toda Construction (Shanghai) Co., Ltd.
Construction

Architectural
Construction

Sipco Industries Co., Ltd.

10
Companies

Th i T
Thai
Toda
d C
Corporationti LtdLtd.
APEC Engineering Co., Ltd.
Toda Vietnam Co., Ltd.
Chiyoda Kenkou Co., Ltd.

Civil
Engineering
Real Estate

TODA Philippines
Philippines, Inc
Inc.

ABTD inc.
ABTD,
inc

Toda Road Co., Ltd.

1
Company

Chiyoda Tochi Tatemono Co., Ltd.

2Companies

Toda America, Inc.

Toda Finance Co., Ltd.
Other

Chiyoda Staff Service Co., Ltd.

3
Companies

Towa Kanko Kaihatsu Co
Co., LtdLtd.
Results Briefing for the Year Ended March 31, 2013

14

(Consolidated) Summary of Group Performance*Intra-company transaction is not eliminated in this chart.

FY2012Toda Corporation

Subsidiaries total%%

Billions of yen
Net sales

460 2
460.2

Gross profit(27.3)

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

59 7
59.7
-5.9

20.1
(47.4)

-10.3

0.6

5.5

0.7

(24.6)

1.0(46.9)

1.3(45.5)

(2.7)

0

(2.2)

Income before income taxes(49 0)(49.0)

08
0.8(47 8)(47.8)

17.3

0.4

17.4

Net income(66.3)-14.4

Results Briefing for the Year Ended March 31, 2013

0.4

1 08
1.08
-5.0

―

-9.5

―

-9.2

―

-13.1

―

1.4

Extraordinary income(loss)

Income taxes

Ratio ofconsolidated
results
to nonconsolidated
Results

22.3

0.1
-10.1

%
497 0
497.0

2.6

1.2
(46.2)

3.3

FY2012
consolidated

0.7(65.2)

15

(Consolidated) Statements of Income
FY2011 (actual)

FY2012 (actual)%%

Billions of yen
Net sales

489.3

G
Gross
profit
fit

15 1
15.1

Selling, general andadministrative expenses
O
Operatingti incomeiNon-operating income
O diOrdinary
income
i

497.0
31
3.1

23.1
(7 9)
(7.9)

-5.0
50

-1.6
16

(46 9)(46.9)

+7.6

444.0

-39.7
39 7

24 3
24.3

(45 5)(45.5)

-9.5
95

-39.0
39 0

33
3.3

-9.2
92

-38.8
38 8

46
4.6

(6.3)

(2.2)

4.0

I
Incomebeforeb f
incomeitaxes
t(13 0)(13.0)(47 8)(47.8)

86
8.6

6.8

17.4

1.0

N t iincomeNet(19 8)(19.8)-4.1
41

Results Briefing for the Year Ended March 31, 2013(65 2)(65.2)

07
0.7

1.3

Extraordinary income(loss)

Income taxes

55
5.5

21.0

1.4
-1.4
14

FY2013 (forecast)

%

22.3

1.3
(6 6)
(6.6)

(24 6)(24.6)

Changes

-13.1
13 1

-45.4
45 4

76
7.6

10
1.0

17
1.7
16

(Consolidated) Net Sales and Operating Income by Segment

Net Sales

Operating Income(Billions of yen)((Billions of
yen)

600
15.9

400

104.6

30

Real Estate
and Other

15.4
Civil
Engineering

Real Estate
and Other
12.0

15
1.3

88.5
0

200

374.1

Architectural
Construction

Construction

3.5
(5.3)

Real Estate
and Other

1.4

Total
3.3

(15)
Architectural
Construction

432.0(41.8)

398.9

(30)
Civil
Engineering

0(45)
FY2011
Architectural construction

FY2012
Civil engineering

FY2013(forecast)
Real estate and Other

Results Briefing for the Year Ended March 31, 2013

(0.9)

FY2011

Architectural construction

FY2012
Civil engineering

FY2013((forecast))

Real estate and Other

17

(Consolidated) Change in Gross Profit Margin on
Completed Construction Contracts(Billions of yen)

Consolidated

Non-consolidated

30
20
19.6

20.9
18.0

17.9

10
0
(10)
(20)
(27.1)(30)

Gross Profit Margin onpConstruction
Completed
Contracts Ratio

FY2011(28.9)FY2012

4 1％
4.1％

Results Briefing for the Year Ended March 31, 2013

FY2013 (forecast)

-5
5.6％
6％

4 8％
4.8％
18

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

Consolidated

Non-consolidated

30

23.1

22.3
20 9
20.9

20 1
20.1

20

21 0
21.0
18.0

10

0

SG&A Ratio

FY2011

4 7％
4.7％

Results Briefing for the Year Ended March 31, 2013

FY20124 5％
4.5％

FY2013 (forecast)

4 7％
4.7％
19

(Consolidated) Change in Operating Income (Loss)(Billions of yen)

Consolidated

Non-consolidated
3.3

2.0

0
(7.9)

(8.2)

(10)

((20))(30)(40)(46.9)(50)
Operating Income
R ti
Ratio

FY2011(47.4)FY2012-1
1.6％
6％

Results Briefing for the Year Ended March 31, 2013

FY2013 (forecast)

-9
9.5％
5％

0 7％
0.7％
20

(Consolidated) Change in Ordinary Income (Loss)(Billions of yen)

Consolidated

Non-consolidated

10
4.6

3.3

0
(6.6)

((7.1))

(10)
(20)
(30)
(40)
(50)
Ordinary income
R ti
Ratio

(45.5)FY2011-1
1.4％
4％

Results Briefing for the Year Ended March 31, 2013(46.2)FY2012-99.2％
2％FY2013 (forecast)

1 0％
1.0％
21

(Consolidated) Change in Extraordinary Income (Loss)(6.3)

Income (Loss)(Billions of yen)

(2.2)

+4.0

6
4.0

Extraordinary
income4
2.1
2Gain on sales of investment
securities 1.8

0
0

(2)
Extraordinary loss

(4)

Impairment
loss (2.4)
Loss on valuation of
investment securities (3.3)

Gain on salesof investment
securities 4.0

Other income 0
0.2
2Impairment loss (0.9)

Loss on valuation of
investment securities (1.8)

Other losses (1.6)
(4.4)

(6)

Other losses (0.5)

(6.4)
6.4

(8)
FY2011Results Briefing for the Year Ended March 31, 2013

FY2012FY2013 (forecast)22

(Consolidated) Change in Net Income (Loss)(Billions of yen)

Consolidated

Non-consolidated

10

76
7.6

0
(10)
(20)

70
7.0

(19 6)(19 8) (19.6)(19.8)(30)((65.2)) (66.3)

(40)
(50)
(60)
(70)

FY2011FY2012FY2013 (forecast)

Net income ratio-4.1％-13.1％

1.7％

Dividends per share

6 0 yen
6.0

5 0 yen
5.0

5 0 yen
5.0

Results Briefing for the Year Ended March 31, 201323

(Consolidated) Balance Sheets(Billions ofyen)

AssetsLiabilities and Net Assets

+13.0
13.0
500.1

487.1

Current
assets
281 3
281.3

Non
current
assets205.7

FY2011

-9.5
9.5

+22.5

Current
assets
271.8

+13 0
+13.0
487.1

500.1

Current
liabilities
255.7

+38.2

Noncurrent
liabilities
59.8

+18.2

Non
current
assets228 3
228.3

Noncurrent
liabilities
78.1

Net assets
171.5

-43.4

Nett assets
N
t
128.0

FY2012FY2011Results Briefing for the Year Ended March 31, 2013

(Billions ofyen)

Current
liabilities
293.9

FY201224

(Consolidated) Detailed Consolidated Balance Sheets

Billions of yen

FY2011FY2012(Assets)
Current assets

Remarks

Figures in ( ) are changes from the previous year

Cash

281 3
281.3

271 8
271.8

Notes receivable, accounts receivable fromcompleted construction contracts and other
164.7 (+0.5)
Real estate for saleNoncurrent assets

205.7

228.3

Property, plantand equipment

87.3

78.1

Intangible assets

3.0

3.0

115.4

147.1

Investments and otherassetsTotal assets

487 1
487.1

Results Briefing for the Year Ended March 31, 201338.7 (+1.8)

24.8 (+5.3)

Costs on uncompleted construction contracts
20.1 (-10.7)

Buildings and structures

16.3 (-1.4)

Land

60.8 (-5.7)

Investment securities

143.3 (+32.5)

500 1
500.1
25

(Consolidated) Detailed Consolidated Balance Sheets
FY2011FY2012

Billions of yen

Figures in ( ) are changes from the previous year

(Liabilities)
Current liabilities

Noncurrent liabilities

255 7
255.7

293 9
293.9

59 8
59.8

78 1
78.1

(Net Assets)
Shareholders' equity
Valuation and conversion
adjustmentj

Total Liabilities and
N tA
Net
Assetst

Remarks

146.2

79.2

25.2

48.8

Notes payable and other accounts payable
155.1 (+22.3)
Short-term loans payable / CP
52 7 (+15.7)
52.7(+15 7)
Advances received on uncompleted construction
contracts
34.3 (-6.9)
Provision for loss on construction contracts
23.1 (+9.1)
Long-term loans payable

20.6 (+0.2)

Deferred tax liabilities

22.3 (+19.2)

Provision for retirement benefits

21.3 (-0.6)

Retained earnings

36.7 (-67.0)

Valuation difference on available
available-for-salefor sale
Securities
40.0 (+23.0)

487.1

Results Briefing for the Year Ended March 31, 2013

500.1
26

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

Valuation difference

143.3

150
+32.6

100

50

0
Nikkei stock-averagestock average

110.2

110.7

26.2

26.3

83 9
83.9

84 3
84.3

82 8
82.8

FY2010FY2011FY2012

11 089 yen
11,0899 755 yen
9,755

12 397 yen
12,397

Results Briefing for the Year Ended March 31, 2013

60 4
60.4

27

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

80

60

Long-term

73 4
73.4
57.5

70.0

20.6
+15.8

20.4
40
70.0
52.7
20

0
Ratio of interest-bearinggliabilities

37.0

FY2011FY2012

11 6%
11.6%

11 8%
11.8%

Results Briefing for the Year Ended March 31, 2013

FY2013 (forecast)ー28

(Consolidated) Change in Provision for Loss on
Construction Contracts(Billions of yen)

Architectural construction

Civil engineering

28
23.1

24
+9.1

20
16

14.0

12

2.8

8

Civil Engineering
2.2

Architectural
construction
20.9

11.2

4
0

FY2011Results Briefing for the Year Ended March 31, 2013

FY201229

(Consolidated) Change in Net Sales(Billions of yen)

-43.4

189.5

171.5
128.0

FY2010Results Briefing for the Year Ended March 31, 2013

FY2011FY201230

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

-4 0
-4.0
52.0
48.0

Increase in fundCash and cash
equivalents at
beginningof period

Profit before tax(47.8)
Costs on uncompleted
construction contracts +10.8
Notes and accounts payabletrade+22.0
Sales of investment securities
Purchase of property, plant andequipment

+3.2
(2.9)

Cash and cash
equivalents
at end ofperiodFinancing CF

13.8

Decrease in fund(March 31,2012))

Operating CF(17.7)

Results Briefing for the Year Ended March 31, 2013

Investing CF(0.4)
Increase in CP(March 31,2013))+11.0
Increase in loans
payable+4.8

31

1-3. Performance Forecasts

Results Briefing for the Year Ended March 31, 201332

Forecasts for FY2013 (Year Ending March 31, 2014)

FY2013
FY2012
Forecasts(Billions of yen)

Change(year on year)

Consolidated net
sales

497.0

444.0

Operating income(46.9)

3.3+50.2

Ordinary income(45 5)(45.5)

46
4.6

+50 1
+50.1

Net income(65.2)

7.6+72.8

Orders received(Non-consolidated)

339.0

330.0

Results Briefing for the Year Ended March 31, 2013-10.7%

-2.7%

-53.0

-9.0

33

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

Net Sales of Completed
Construction Contracts

(%)

452.5

339.0
83.1

255.8

330.0
80 0
80.0

250.0

-2.7%

83.8

Civil
Engineering-3.8%

Architectural
Construction-2.3%

Gross Profit Margin on
Completed Construction
Contracts

394.0-12.9%

80.0

Civil
Engineering
4.6%
-4.6%

368
368.7
314.0

24
2.4

Civil
Engine-ering
6.3
6
3

Total
4.6

Architectural
Construction
4.1

Architectural
Construction-14.8%-6.4-8.4

FY2012FY2013(forecast)

FY2012

Results Briefing for the Year Ended March 31, 2013

FY2013(forecast)

FY2012FY2013(forecast)34

Non-Consolidated Forecasts for FY2013
AmountProfitability(Billions of yen)(%)

Net sales

400 0
400.0

Gross profit

20.0

5.0

Profits
o ts in thet e construction
co st uct o bus
business
ess

18.0
80

4.6
6

[Architectural construction][13.0][4.1][Civil engineering]

[5.0]

[6.3]

Profits in the real estate business

2.0

33.3

Selling, general andadministrative
expenses

18.0

Operating income

2.0

0.5

Ordinary income

33
3.3

08
0.8

Extraordinary income

4.0

N t iincome
Net

70
7.0

Results Briefing for the Year Ended March 31, 2013

Gain on sales ofinvestment securities

18
1.8
35

2. Issues and Initiatives

P id t Sh
President
Shunzo IInoue

Results Briefing for the Year Ended March 31, 201336

2-1. Recognized Issues

Results Briefing for the Year Ended March 31, 201337

Strategies to Improve Financial Results

Operating loss for two consecutive years
Series of downward revisions

Urgent need to reconstruct theconstruction business(Awareness, strategies, organization)
Results Briefing for the Year Ended March 31, 201338

Cause of Deteriorating Performance
Recognition that the cause lies
withinithi theth C
Company
MarketstagnationPricecompetition

Surge in material
prices

Receipt of
unprofitableordersTight
constructiontti
cycle; loss cost
incurred

Unachieved costmanagement plan

Maintaining
business scale

Orders taken for
granted (bias)

Lack of construction
work capabilities

Deteriorating Performance
Results Briefing for the Year Ended March 31, 201339

2-2. Initiatives to Recover Performance

Results Briefing for the Year Ended March 31, 201340

Key Initiatives
Pursue appropriate operating size
Make selection of orders more stringent
Reinforce order management system
CloselyCl
l reviewiandd manage
profitability of construction
Reduce selling, general,and administrative expenses

Results Briefing for the Year Ended March 31, 201341

Pursue Appropriate Operating Size
Change in orders received for construction(FY2006 = 100)
Toda
Corporationp（１００）（255.8 billion yen）

78.6
50 leading
companies

FY2006

FY2007

FY200875.4

FY2009FY2010FY2011

Secure a size oforders that matches
the market
MaintainMi t i abbalancelbetween quantity andquality; strictly adopt a
profit oriented policy
profit-oriented
Rebuild an appropriate
construction execution
structure

FY2012

Source: “Current Survey on Orders Received for Construction” by
the Ministry of Land, Infrastructure, Transport and Tourism

Results Briefing for the Year Ended March 31, 201342

Make Selection of Orders More Stringent

Take orders of “priority
priority area × mid
mid-size
size property
property”
By category

By size(distribution ratio of construction orders)(distribution ratio of construction orders)

Other

More than 4billion

Housing

3-4 billion
Officebuildings
Production
facilities
Education
Medicalwelfare(Priority areas)

15.7
11.2
17.6

12.8

2-3 billion

11.2

1-2 billion

17.2

0.5-1 billion

14.1

14.9

Below
B
l
0
0.5
5
billion

27.1

29.8

FY2011FY2012

21.3
21 3
10.0
16.0

21.4

27.3

FY2011FY2012

Results Briefing for the Year Ended March 31, 2013

20.9
20 9

43

(Reference) Status of Sales by Year
Breakdown of net sales ofcompleted construction (By year)(368.7 billion yen)(347.4 billion yen)(314.0 billion yen)

FY2013 orders

Orders for large-scale andunprofitable construction
work were concentrated in
FY2010 and FY2011
FY2013 will see a low ratioof orders received in
FY2011 or before to handle
mainly orders that were
carefullyy selected

FY2012 orders
FY2011 orders
FY2010 orders
Orders in FY2009 or
beforeFY2011FY2012

Results Briefing for the Year Ended March 31, 2013

FY2013 (forecast)

Provision for loss on
construction contracts wasposted in FY2012 or earlier
for unprofitable
construction work to avoid
adverse effects on thelt ffor FY2013
results
44

Reinforce Order Management System
Promote transparency andreinforcement of processes
Order authorization
process

Pricing determination
process

Approval decision
review

Administration department tobe actively involved inauthorizing orders

Newly establish a cost center(estimation department +purchasing department)

Establishment of a Committee
for Review on Judgments
Taken at Order Receipt

Decide not to accept
unprofitable orders at
the judgment phase

Accurately identify
costcosts to be costcompetitive

Validate accuracy andappropriateness of
judgment; provide
feedback

Confirm
appropriateness of theoverall process

Note: All those listed above have been establishedand are currently in operation
Results Briefing for the Year Ended March 31, 201345

Closely Review and Manage Profitability ofConstruction

Monitor costs and reinforce
cost competitivenessActionsAtitaken in
FY2012

Actions
to take in
FY2013

Close review of construction work costs(elimination of uncertain elements)
・ Strict evaluation of additional construction work, VE and CD
・ Reflection of tight processes
processes, surge in labor and material costs
・ Estimation of earnings based on conservative standards.
Ensuring through cost monitoring
Review of common onsite costs
Cost reduction through collaboration with
subcontractors

Results Briefing for the Year Ended March 31, 201346

Reduce Selling, General,
and Administrative ExpensespPlan to reduce SG&A expenses to ¥18.0 billion
in FY2013 (non(non-consolidated)consolidated)
Build up from zero
Reduce expenses for
FY2013 by roughly ¥2.1
billion (non-consolidated)

Personnel costs(attrition, reallocation)

20.1(Billionss of yen)

-0.7

Outsourcing
expenses(reduce target fororders)Sales expenses(advertising, entertainmentand other expenses)

Otherexpenses

-0.4
0.4
-0.4

-0.5
0.5
17.0

FY2012

Results Briefing for the Year Ended March 31, 2013

Depreciation
expenses

＋0

１８.0
１８
.0

FY2013 (forecast)47

(Reference) Overseas and Real Estate Businesses

Target for FY2015: Net sales of ¥30.0¥30 0 billion

Target for FY2015: Gross profit of ¥4.0
¥4 0 billion

Net sales of overseas construction((consolidated))

Income from real estate, etc.
((consolidated))Line graph signifies net sales of orders received

２１.５

１８..１
１８

FY2011

２３.３
２８..３
２８

(Billions of yen)(Billions of yen)

２９.７

３.４
２.４

(４.４)

２０..６
２０

FY2012FY2013(forecast)

Notes: FY2012 exchange rate: 1US$ = ¥80.12¥80 12FY2013 estimated rate: 1US$ = ¥96.6
Results Briefing for the Year Ended March 31, 2013

FY2011FY2012FY2013(forecast)¥7 4 billion
Notes: Loss on valuation FY2011: ¥7.4
FY2012: ¥0.5 billion
48

(Reference) Environmental Business Activities※Concept rendering by FS Business Department

Power generation by floating
wind turbines (Small-scale testing device)
Results Briefing for the Year Ended March 31, 2013

Kawamata--machi,
Kawamata
machi Fukushima– Smart Community for lightly populated areas
49Strategies for Business Recovery (Summary)Take all possible measures to be in theblack in FY2013
Ensure execution of improvement
measures
Ensure through monitoring and prompt
response

Revive earning power
Convert sense of values in the Company
Create mechanisms and structures for
growthResults Briefing for the Year Ended March 31, 201350

3. Direction for the FutureD
Deputyt President
P id t anddE
Executive
ti Offi
Officer
Masanori Imai

Results Briefing for the Year Ended March 31, 2013

51

Biography (Work History)
1978

April

Joined the Company

1999

April

Construction Manager,
Manager Architectural Construction Department
Department, Tokyo Branch

2000

February

Sales Division Manager, Architectural Construction Sales Department, Osaka
Branch

2001

OctoberManager, Keiji General Sales Office of Architectural Construction
Manager
Construction, Osaka
Branch

2004

February

Osaka Branch Assistant Manager (in charge of Architectural Construction
Sales)

2005

April

Osaka Branch Deputy Manager (in charge of Architectural Construction Sales)

2007

February

Osaka Branch Deputy Manager (in charge of Architectural Construction)

2008

April

Executive Officer and Osaka Branch Deputy Manager

2009

AugustManaging Executive Officer and Osaka Branch Manager

2013

March

Managing Executive Officer in charge of Architectural Construction
Headquarters

2013

April

Deputy President and Executive Officer

2013

June

President and Representative Director (to assume)

Results Briefing for the Year Ended March 31, 201352

Toda Corporation as a Valuable Company
Customers’ recognition of Toda’s values leads to earnings
Profit--generating scheme
ProfitCustomers(clients and end-users)

Toda
Corporation

Recognizing
values

Source of revenues

Securing
revenues

Valuable employees

An entity of valuable employees

A company serving as the most important partner for clients

A company that’s valuable also to society, subcontractors and employees
Results Briefing for the Year Ended March 31, 201353

Our Tactics
Provide solutions beyond the boundaries ofarchitecturalac tectu a coconstruction
st uct o aanddc
civil eengineeringg ee gInternational・ Support overseas activities ofclients of domestic sales office・ Expand construction under directcontrol and local construction work・ Attract BOT, PPP businesses

Investment&
Development

Know-howby Segment

・ Offer solutions based on development
methodology
・ Pursue redevelopment projects
・ Invest in real estate, increase revenues(Architectural construction/
Civil engineering)

Environment&
EnergyResults Briefing for the Year Ended March 31, 2013

・ Submit environmental engineering
proposals and follow up
・ Commercialize renewable energy
・ Participate in the “Smart Community”
b ibusiness54

Roles and Responsibilities of the Organization

Build a customercustomer-oriented organization
Customer
Cycle ofvalue creation:

Extract

Specify

Select & plan

Demonstrate

Add again

Branches

S l
Sales
operation

DesignD i &planning

Construction

Maintenance &management

Renewal(Subsidiaries
and affiliates)

Proactively, agilely and responsibly operate revenue-generating elements

Support upgrading of branch activities

Head
officeHeadquarters
Optimize management resources

Collaboration

B i
Business
departments
Strengthen priority areas

P
Presentt Company-wideC
id didirectionti andd concentratet t kknow-howhResults Briefing for the Year Ended March 31, 201355

Company with True Value = Highly Profitable Company

Achieve the minimum level of earnings expected by society and market

No bright future if we keep the current approach
FY2012(Gross Profit Ratio -5.0%)
5 0%)

FY2013Extension of status quo(Gross Profit Ratio 5.5%)

Operating margin-9.5%
Critical condition

Eliminate current problems

Results Briefing for the Year Ended March 31, 2013

0.7%

Highly profitablecompany(Gross Profit Ratio 8% and higher)

3%and higher

Appropriate profit distribution
to society, shareholders andp yemployees
Destroy preconceived ideas
and create new ones

56

57