Consolidated Financial Results
for the FY2016
Ended March 31, 2017―1―

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results1) Operating Results for the Fiscal Year ended March 31, 2017
During the fiscal year ended March 31, 2017, the Japanese economy remained on gradual recovery course,
supported by an improving employment and income environment and a resultant rebound in personal
consumption.
The construction industry enjoyed a solid earnings environment, with orders from both the public andprivate sectors exceeding previous year levels.
Under these circumstances, the Toda Group’s consolidated results were as follows.
Consolidated net sales decreased 14.2% year on year to ¥422.7 billion, mainly owing to a decline incompleted construction contracts.
In terms of operating income and loss, gross profit increased 10.7% to ¥52.9 billion and the gross profit
margin increased to 12.5%, 2.8 points higher than in the previous fiscal year, as we managed to boost thegross profit margin on completed construction contracts, reflecting the success of strict adherence to ourpolicy of focusing on profitable orders in our core construction business, which continues to face anuncertain business environment.
Meanwhile, selling, general and administrative expenses rose 6.8% year on year to ¥27.9 billion. As aresult, consolidated operating income increased 15.6% to ¥24.9 billion.
Ordinary income increased 14.6% year on year to ¥27.1 billion, with a solid contribution from interest
income and dividend income on investment securities and other factors.
Profit attributable to owners of parent expanded to ¥42.0 billion, a 110.0% increase over the previous year,
in part due to tax expenses associated with the posting of deferred tax assets.
The results for each segment are as follows. Segment results include internal sales or transfers between
segments.
Architectural Construction Business
The segment recorded net sales of ¥311.2 billion, down 18.9% year on year. Segment operating income
came to ¥19.5 billion, up 13.5%.
On a non-consolidated basis, overall orders received (including overseas) increased 16.0% year on yearto ¥358.8 billion. At the Japan business, a 19.1% decline in public sector orders was more than offset by a
21.5% increase in orders from the private sector, boosted by some orders for large projects.
Civil Engineering Business
The segment recorded net sales of ¥103.6 billion, up 8.4% year on year, and operating income of ¥4.6
billion, up 20.7%.
On a non-consolidated basis, overall orders received (including overseas) increased 10.5% to ¥114.4
billion. In Japan, orders from the private sector increased 1.1% while orders from the public sector
expanded 12.2% year on year.
Real Estate Business
Segment net sales came to ¥13.3 billion, down 17.3% year on year, but operating income rebounded to¥0.9 billion, an 82.9% increase over the FY2015 result.

―2―

Other Businesses
Net sales from other businesses totaled ¥1.2 billion, up 15.9% year on year. The segment recorded an
operating loss of ¥41 million, compared the previous year’s ¥3 million loss.
2) Outlook for the Fiscal Year ending March 31, 2018
The Japanese economy is expected to remain in a moderate recovery mode, with both employment andincomes continuing to improve. The construction industry expects to see a recovery in demand for new
home construction and other private sector construction but the outlook remains clouded by uncertainties,
including private-sector business sentiment and the possibility of construction costs being pushed up by atight labor market.
Considering this operating environment, the next fiscal year’s forecast for the Toda Group is as follows.
We forecast consolidated net sales of ¥437.0 billion (up 3.4% year on year), operating income of ¥19.0
billion (down 24.0%), ordinary income of ¥21.0 billion (down 22.8%), and profit attributable to owners ofparent of ¥14.0 billion (down 66.7%).
On a non-consolidated basis, we expect orders received to total ¥449.5 billion (down 6.1% year on year),net sales of ¥404.5 billion (up 1.2%), operating income of ¥17.1 billion (down 27.0%), ordinary income of¥18.9 billion (down 25.5%), and net income of ¥12.7 billion (down 69.1% ).
(2) Analysis of Financial Position
1) Assets, liabilities, and net assets
AssetsTotal assets as of March 31, 2017, were ¥536.5 billion, ¥12.1 billion less than a year earlier. The decline
mainly reflects a ¥78.0 billion decrease in notes receivable, accounts receivable from completed
construction contracts and other, which was only partially offset by increases in other items, including¥24.6 billion for securities, ¥13.8 billion for investment securities, and ¥10.2 billion for land.
Liabilities
Total liabilities as of March 31, 2017, were ¥309.6 billion, ¥61.6 billion less than a year earlier. The major
contributors to this decrease in liabilities were a ¥49.2 billion decrease in notes payable, accounts payable
for construction contracts and other, and a ¥9.8 billion contraction in advances received on uncompleted
construction contracts.
Net assets
Total net assets as of March 31, 2017, were ¥226.8 billion, a ¥49.4 billion increase from the end of theprevious fiscal year, mainly due to the increase in retained earnings upon posting of ¥42.0 billion in profit
attributable to owners of parent, which was supported by an ¥8.4 billion increase in valuation difference
on available-for-sale securities. The equity capital ratio accordingly rose to 41.7%.
2) Cash flows
Cash and cash equivalents at the end of the fiscal year totaled ¥90.9 billion, ¥36.3 billion more than at theend of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities came to ¥58.8 billion, compared with net cash used totaling¥8.8 billion in the previous fiscal year. The main inflows from operating activities were ¥28.3 billion in
profit before income taxes and a ¥78.0 billion decrease in notes and accounts receivable-trade. Outflows
included a ¥49.2 billion decrease in notes and accounts payable-trade and a ¥9.8 billion decrease inadvances received on uncompleted construction contracts.
―3―

Cash Flows from Investing Activities
Net cash used in investing activities was ¥9.7 billion, compared with the ¥6.0 billion used in the previous
fiscal year. The main inflow was the ¥5.3 billion from sales and redemption of investment securities. The
main outflows were purchases of property, plant and equipment totaling ¥10.5 billion and purchases ofinvestment securities totaling ¥3.2 billion.
Cash Flows from Financing Activities
Net cash used in financing activities totaled to ¥12.6 billion, compared with ¥11.1 billion in net cash
provided in the previous fiscal year. The main outflows were the ¥9.4 billion decrease in loans payableand ¥3.0 billion for payment of cash dividends.
The Group's cash flow indicators are as follows.
For years ended
March 31
Equity ratio
Equity ratio on amarket price basis
Number of years
to redeem debt
Interest coverage
ratio

2013

2014

2015

2016

2017

24.7%

29.1%

36.4%

31.9%

41.7%

13.8%

22.3%

31.4%

30.4%

38.3%

－

5.4 years－－

1.2 years－

14.1 times－－

68.3 times

Notes: Equity ratio = shareholders’ equity /total assets
Equity ratio on a market price basis = market capitalization / total assets
Number of years to redeem debt = interest-bearing debt / cash flows
Interest coverage ratio = cash flows / interest payments*The indices are calculated based on consolidated financial figures.
* Market capitalization is calculated by multiplying the stock price at the end of the fiscal year by the number ofoutstanding shares at the end of the fiscal year excluding treasury stock.
*Cash flows from operating activities are used for cash flows.
*Interest-bearing debt is all of the liabilities recorded on the consolidated balance sheets for which the Company ispaying interest(3) Basic Policy on Profit Distribution and Dividends in the Fiscal Year ended March 31, 2017 and the
Fiscal Year ending March 31, 2018
The Company's basic policy is to distribute profit based on business results and the business environment after
giving consideration to the provision of continuous and stable dividends to shareholders and the need to securesufficient retained earnings essential for improving the Company's competitiveness and its financial position.
In line with this basic policy, for the fiscal year ended March 31, 2017, the Company will pay a regulardividend of ¥12 per share plus a special dividend of ¥3 per share for an annual dividend of ¥15 per share. The
Company also plans to maintain the annual dividend at ¥12 per share for the fiscal year ending March 31, 2018.

―4―

(4) Business Risks
The major risks affecting the Group's business that are believed likely to have a material impact on thedecisions of investors are described below. Note that matters related to future developments mentioned in thissection are judgments of the Group that were made as of the end of the fiscal year under review.
1) Trends in Construction Investments and Prices
The Group's earnings could be affected by a significant decrease in construction investment owing todeterioration in economic conditions or by the occurrence of unexpected events. The Group's earnings also
could be affected by a rise in the prices of major construction materials and difficulty passing these increases
into contract prices.
2) Construction Work Risks
The Group's earnings could be affected by troubles or damages caused by major flaws in properties designed
or constructed by the Group. In addition, Group earnings could be affected by a major unexpected accident
during construction.
3) Counterparty Credit Risk
Construction companies often have not received payment for all work completed at the time the completed
project is delivered to the customer. Consequently, Group earnings could be affected by a counterparty credit
event that makes it impossible to collect payment for completed work. In addition, earnings could be
affected by credit events at suppliers or subcontractors.
4) Legal and Compliance Risks
The Group's business is subject to various legal regulations, including the Construction Industry Act, theBuilding Standards Act, the City Planning Act, the Companies Act, the Financial Instruments and ExchangeAct, and the Antimonopoly Act. Group earnings could be affected by violations of these laws or by theamendment or abolishment of existing laws, the establishment of new laws, or changes to application
standards.
5) Disaster Risk
The Group's earnings could be affected by natural disasters, such as earthquakes, or man-made disasters that
result in a serious hindrance to business continuity.
6) Country Risk
The Group conducts business in various countries, and Group earnings could therefore be affected by drasticchanges in political or economic conditions, significant fluctuations in exchange rates, and unexpectedchanges to legal regulations.

―5―2. Management Policy(1) Basic Management Policy
Based on the management policy first established in 1967, we have conducted our corporate activities in amanner that placed great emphasis on building relationships of trust with our customers and all stakeholders.
Meanwhile, social conditions and social needs as well as our business structure have changed profoundly overthe past 50 years. It has therefore become necessary for us to clarify the basic guidelines under which we
operate, while also reaffirming the values and spirit that have been cultivated throughout our history.
Considering our current circumstances, we have revised our corporate philosophy with a view towardrealizing sustainable growth and strengthening our management structure.
The revised philosophy remains based on the previous concepts, which we have supplemented with some
simple and concise statements that express our views on CSR (Corporate Social Responsibility) and CSV(Creating Shared Value). In addition, we have expanded the scope of application of management policy fromthe Parent Company to the entire Group. Accordingly, we have now established a corporate philosophy systemthat features our revised Corporate Behavior Charter, which is guides our corporate actions, with the Global
Vision we established in 2015.
While anticipating changes in our business environment, we will generate a strong driving force forrealizing sustainable growth by creating a common awareness of purpose across the Group as we strive to meetthe various challenges facing our business. By promoting activities based on our corporate philosophy, we will
enhance the existence value of the Toda Group and contribute to the development of society.
(2) Medium and Long-term Corporate Management Strategy and Issues to be Addressed
The Toda Group has been promoting its Medium-term Management Plan 2017, with a scheduled completion at
the end of FY2017 (to March 31, 2018). We achieved one of the plan’s main goals—an operating income ratioof at least 4.2% a year in advance in FY2016 and expect to maintain or improve upon that figure in FY2017.
Over the past fiscal year, we also made steady progress in the implementation of measures toward attainmentof our goals of being “No. 1 in Productivity” and establishing a “Foundation for Growth.” At the same time,
we are focusing on longer-term management challenges, such as an expected decline in construction
investment expected after 2020 and changes in social structure due to the declining birthrate and aging
population. We therefore realize the need to take early action to secure sustainable growth in the future.
Accordingly, we decided end to our previous medium-term management plan one year ahead of scheduleand start Medium-term Management Plan 2019—Phase II of the Toda Group Global Vision—from FY2017.
*For details of the major policies and measures in the new plan, please refer to the press release on"Formulation of the Toda Group" Medium-Term Management Plan 2019" that was released on May 12, 2017.

3. Basic Rational for Selection of Accounting Standards
The Toda Group intends to continue producing consolidated financial statements based on Japanese accounting
standards to enable comparisons of the Group’s consolidated statements from different fiscal years andcomparisons with other companies.
The Group also intends to make an appropriate response to the International Financial Reporting Standards(IFRS) based on considerations of the situation in Japan and abroad.

―6―

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Securities
Real estate for sale
Costs on uncompleted construction contracts
Other inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets

As of March 31, 2017

54,76866,386211,237

133,206119
15,83016,120990
195
14,093(1,608)24,7497,974
19,881
867
4,178
11,494(1,200)311,747

267,538

11,56014,135

Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, vehicles, tools, furniture andfixtures, net
Land
Lease assets, net
Construction in progress

625

585

59,743159
255

70,001102
4,300

Total property, plant and equipment

72,344

89,125Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts

6,075

6,878

154,840
614
240
389
2,923
(463)

168,738
555
824
154
2,900
(131)

Total investments and other assets

158,544

173,041

236,964

269,044548,711536,582

Total noncurrent assets
Total assets―7―

(Millions of yen)
As of March 31, 2016
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts and other
Short-term loans payable
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for bonuses
Provision for warranties for completed
construction
Provision for loss on construction contracts
Deposits received
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for directors’ retirement benefits
Provision for share allocation to directors
Provision for loss on liquidation ofsubsidiaries and affiliates
Net defined benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities

As of March 31, 2017

149,638

100,366

34,5882,774

29,855
3,523

38,45528,580

6,320

6,754

2,237

4,089

2,421
18,134
13,497

3,289
17,933
27,661

268,069

222,054

10,00035,131
24,224
7,708
149

10,00030,421
13,302
7,272
144

-

60

400

188

22,515182
2,910

22,084
1,095
3,061

103,224

87,633

Total liabilities

371,293309,687

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

23,001
25,587
76,825(8,236)23,001
25,682
116,816(8,233)

117,178

157,267

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests

55,03863,513

(25)
6,665
(545)
(3,292)

1
5,676
(542)
(1,957)

57,84066,691

2,398

2,937

Total net assets

177,417226,895

548,711536,582

Total liabilities and net assets―8―(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Year ended March 31, 2016 and 2017
Year ended March 31, 2016
(April 1, 2015 throughMarch 31, 2016)
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
Cost of sales on real estate business and otherTotal cost of sales
Gross profit
Gross profit on completed construction
contracts
Gross profit on real estate business and otherTotal gross profit(Millions of yen)
Year ended March 31, 2017
(April 1, 2016 throughMarch 31, 2017)

475,433
17,188409,238
13,483492,621422,722430,601

359,694

14,214

10,085444,815369,779

44,83149,544

2,974

3,398

47,80552,942

Selling, general and administrative expenses

26,17627,944

Operating income

21,62924,998Non-operating income
Interest income
Dividend income
Dividend income of insurance
Other

389
2,306
224
379

329
2,482
261
258

Total non-operating income

3,299

3,332

963
179
62

875
194
63

1,205

1,133

23,72327,197

277
563
281
21

4
2,329
117

1,144

2,451

Non-operating expenses
Interest expenses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of provision for loss on litigation
Other
Total extraordinary income―9―Year ended March 31, 2016
(April 1, 2015 throughMarch 31, 2016)
Extraordinary loss
Loss on sales of noncurrent assets
Loss on abandonment of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Other

11
573
1,271
17
64
0

Total extraordinary losses(Millions of yen)
Year ended March 31, 2017
(April 1, 2016 throughMarch 31, 2017)
0
323
913
0
4
43

1,937

1,286

Profit before income taxes

22,92928,362

Income taxes-current
Income taxes-deferred

3,058
(314)

4,470
(18,369)

Total income taxes

2,744(13,898)

Profit20,18542,261

Profit attributable to non-controlling interests
Profit attributable to owners of parent

―10―

145

169

20,03942,091

Consolidated Statements of Comprehensive Income
Year ended March 31, 2016 and 2017

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Revaluation reserve for landRemeasurements of defined benefit plans

Year ended March 31, 2016
(April 1, 2015 throughMarch 31, 2016)
20,185(Millions of yen)
Year ended March 31, 2017
(April 1, 2016 throughMarch 31, 2017)42,261(19,902)

8,474

(29)
(679)
428
(3,383)

27
(24)
1,334

(23,566)

9,811

Comprehensive income

Total other comprehensive income(3,381)

52,073Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests(3,434)51,931

53

141

―11―

(3) Consolidated Statements of Changes in Net Assets
Year ended March 31, 2016 (April 1, 2015 through March 31, 2016)(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of period

23,001

Total
Treasury stock shareholders’equity59,155(8,212)99,449Retainedearnings

25,504

Changes during period
Dividends from surplus
Profit attributable to owners ofparentDisposal of treasury stock
Purchase of treasury stock
Transfer of loss on disposal oftreasury stock
Change in equity arising fromtransactions with noncontrolling shareholders
Capital increase of consolidated
subsidiaries
Reversal of revaluation reserve
for landNet changes other thanshareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of period(2,149)(2,149)20,03920,039

(23)

82

(23)

82

(219)

(219)

-

82

17,669(23)

17,72923,001

25,587

76,825(8,236)

117,178

Accumulated other comprehensive income
Valuation
Total
NonForeign Remeasurem
difference on Deferred
accumulated controlling Total net
Revaluation
gains orcurrency
ents ofavailableassets
otherreserve forshareholders
losses ontranslation
definedforcomprehensi
land
hedgesadjustment benefit planssaleve incomesecurities
74,942
3
6,017
40
91
81,0952,443 182,988

Changes during period
Dividends from surplus
Profit attributable to owners ofparentDisposal of treasury stock(2,149)Purchase of treasury stock
Transfer of loss on disposal oftreasury stock
Change in equity arising fromtransactions with noncontrolling shareholders
Capital increase of consolidated
subsidiaries
Reversal of revaluation reserve
for landNet changes other thanshareholders’ equity
Total changes during period(23)(19,903)

(29)

647

(586)

(3,383)(23,254)(44)(23,299)(19,903)

(29)

647

(586)

(3,383)(23,254)(44)(5,570)

Balance at end of period

55,038

(25)

6,665

(545)

(3,292)

57,8402,398

177,417

20,039

82

(219)

―12―

Year ended March 31, 2017 (April 1, 2016 through March 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of period

23,001

Total
Treasury stock shareholders’equity76,825(8,236)
117,178

Retainedearnings

25,587

Changes during period
Dividends from surplus
Profit attributable to owners ofparentDisposal of treasury stock(3,070)42,09142,091(19)

Purchase of treasury stock
Transfer of loss on disposal oftreasury stock
Change in equity arising fromtransactions with noncontrolling shareholders
Capital increase of consolidated
subsidiaries
Reversal of revaluation reserve
for landNet changes other thanshareholders’ equity
Total changes during period
Balance at end of period(3,070)

19

240

221

(238)

(238)

(19)

-

95

95
989

989

－

95

39,9902

40,08823,001

25,682

116,816(8,233)

157,267

Accumulated other comprehensive income

Balance at beginning of period

Valuation
Total
NonForeign Remeasurem
difference on Deferred
accumulated controlling Total net
Revaluation
gains orcurrency
ents ofavailableassets
otherreserve forshareholders
losses ontranslation
definedforcomprehensi
land
hedgesadjustment benefit planssaleve incomesecurities
55,038
(25)
6,665
(545)
(3,292)
57,8402,398 177,417

Changes during period
Dividends from surplus
Profit attributable to owners ofparentDisposal of treasury stock(3,070)Purchase of treasury stock
Transfer of loss on disposal oftreasury stock
Change in equity arising fromtransactions with noncontrolling shareholders
Capital increase of consolidated
subsidiaries
Reversal of revaluation reserve
for landNet changes other thanshareholders’ equity
Total changes during period

(238)

8,474

27

(989)

3

1,334

8,850

538

9,388

8,474

27

(989)

3

1,334

8,850

538

49,477

Balance at end of period

63,513

1

5,676

(542)

(1,957)

66,691

2,937

226,895

42,091
221

95
989

―13―

(4) Consolidated Statements of Cash FlowsNet cash provided by (used in) operating activities(Millions of yen)
Year ended March 31, 2016
(April 1, 2015 throughMarch 31, 2016)(8,863)(Millions of yen)
Year ended March 31, 2017
(April 1, 2016 throughMarch 31, 2017)58,874

Net cash provided by (used in) investing activities(6,099)(9,797)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

11,148(12,608)

(780)

(133)

(4,595)36,336

Cash and cash equivalents at beginning of period

59,24554,650Cash and cash equivalents at end of period

54,65090,986―14―

5. Non-Consolidated Financial Statements(1) Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims –operatingAccounts receivable from completed
construction contracts
Securities
Real estate for sale
Costs on uncompleted construction contracts
Costs on real estate business
Raw materials and supplies
Deferred tax assets
Accounts receivable-other
Advances paid

As of March 31, 2017

40,6862,477

56,329
1,427

250

707

203,785

125,251

119
14,215
13,644
237
317
1,015
6,865

20,0497,971
18,153
145
340
4,001
2,553
4,938

Other
Allowance for doubtful accounts

5,788(1,670)3,679(1,322)

Total current assets

287,735

244,228

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation

28,690(19,447)

32,794(21,722)

Buildings, net

9,242

11,072

1,498(1,211)

1,546(1,256)Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation

287

289

7,297
(7,079)6,700(6,533)

217

166

99
(98)

93
(93)

1

0

1,666

1,744

(1,381)(1,441)285

303

55,539355(198)

64,602320(219)

Lease assets, net

156

101

Construction in progress

221

1,187

65,952

77,722

4,863
942
256

4,865
1,004
979

6,061

6,849

Total property, plant and equipment
Intangible assets
Leasehold right
Software
Other
Total intangible assets―15―

(Millions of yen)
As of March 31, 2016
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in other securities ofsubsidiaries and affiliates
Investments in capital
Long-term loans receivable
Long-term loans receivable from
employees
Long-term loans receivable fromsubsidiaries and affiliates
Long-term prepaid expenses
Long-term non-operating accounts
receivable
Prepaid pension cost
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Electronically recorded obligations operating
Accounts payable for construction contracts
Short-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Advances received on uncompleted
construction contracts
Deposits received
Provision for bonuses
Provision for warranties for completed
construction
Provision for loss on construction contracts
Deposits received from employees
Other
Total current liabilities―16―

As of March 31, 2017

149,266
4,386

162,047
5,612

1,551

1,528

2
4

1
3

3

3

708

542

14

19

160

9

2,255
2,126
(575)

2,323
2,285
(310)

159,903

174,067

231,918

258,640

519,653502,868

6,623

4,276

38,631

31,782

100,346
31,155
61
1,851
2,389

61,00623,393
51
3,222
3,194

37,16427,011

16,845
6,060

16,036
6,437

2,135

4,018

2,399
6,014
5,010

3,276
6,740
14,914

256,690

205,362(Millions of yen)
As of March 31, 2016
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Provision for share allocation to directors
Provision for loss on business of subsidiaries
and affiliates
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities

As of March 31, 2017

10,00031,722
97
24,812
7,708
19,846100-

10,00030,42151
14,306
7,272
19,970
98
60

189

118

146
2,061

153
2,270

96,68584,724353,376

290,087

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

23,001

23,001

25,57325,573

Total capital surplus

25,57325,573

5,750

5,750

36,77421,75815,00036,77445,75764,283103,282

Retained earnings
Legal retained earnings
Other retained earnings
Reserve for construction
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock(8,236)(8,233)

Total shareholders’ equity

104,622

143,62455,014

63,480

(25)
6,665

(0)
5,676

61,654

69,156

166,276

212,780

519,653502,868

Valuation and translation adjustment
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Total valuation and translation adjustment
Total net assets
Total liabilities and net assets―17―

(2) Non-consolidated Statements of Income

Year ended March 31, 2016
(April 1, 2015 throughMarch 31, 2016)
Net sales
Net sales of completed construction contracts
Net sales of real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction
contracts
Cost of sales on real estate businessTotal cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit on real estate businessTotal gross profit
Selling, general and administrative expenses
Directors’ compensations
Employees’ salaries and allowances
Provision for bonuses
Provision for directors’ retirement benefits
Retirement benefit expenses
Legal welfare expenses
Welfare expenses
Repair and maintenance
Stationery expenses
Correspondence and transportation expenses
Power utilities expenses
Research study expenses
Advertising expenses
Provision of allowance for doubtful accounts
Entertainment expenses
Contribution
Rents
Depreciation
Taxes and dues
Insurance expenses
Miscellaneous expenses
Total selling, general and administrative
expenses
Operating income―18―(Millions of yen)
Year ended March 31, 2017
(April 1, 2016 throughMarch 31, 2017)455,565
7,910

394,3275,251

463,476

399,578

412,791

347,414

6,622

3,553

419,414350,967

42,774
1,287

46,912
1,698

44,062

48,610

343
8,825
3,584
40
705
1,298
687
263
1,216
798
88
644
129
507
539
77
795
478
949
25

488
9,160
4,019
43
969
1,372
621
362
1,293
901
108
904
148
(516)
644
122
975
297
1,527
27

1,580

1,725

23,581

25,19920,48023,411

(Millions of yen)
Year ended March 31, 2017
(April 1, 2016 throughMarch 31, 2017)

Year ended March 31, 2016
(April 1, 2015 throughMarch 31, 2016)
Non-operating income
Interest income
Interest on securities
Dividend income
Dividend income of insurance
Miscellaneous income

37
16
2,357
224
352

43
1
2,508
261
227

Total non-operating income

2,989

3,041

913
175
67

843
194
54

Non-operating expenses
Interest expenses
Commission fee
Miscellaneous expenses
Total non-operating expenses

1,156

1,092

22,31225,361

90
563
281

2
2,329
-

Other

19

117

Total extraordinary income

954

2,449

11
556
1,235
17
44

279
1
0
4

103

912

0

41

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of provision for loss on litigation

Extraordinary loss
Loss on sales of noncurrent assets
Loss on abandonment of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries andaffiliates
Other

1,968

1,240

Profit before income taxes

Total extraordinary losses

21,29926,570

Income taxes-current
Income taxes-deferred

2,426
4

3,908
(18,438)

Total income taxes

2,431(14,530)

Profit18,867

41,100―19―

(3) Non-consolidated Statements of Changes in Net Assets
Year ended March 31, 2016 (April 1, 2015 through March 31, 2016)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at beginning of period

Retained earnings
Other retained earnings

Capital
stock

Legal
capitalsurplus

23,001

25,573

Other
capitalsurplus-

Total capitalsurplusLegalretainedearnings

25,573

5,750

Retained
General Reserve for earnings
reserve construction brought
forward26,774-

Total
retainedearnings

15,26047,785

10,000)-Changes during period
Provision of general reserve-

Provision of reserve forconstruction

10,000-

Dividends from surplus-

2,149)(2,149)Profit-18,867

18,867

Disposal of treasury stock--

Purchase of treasury stock--

Transfer of loss on disposalof treasury stock--Reversal of revaluation
reserve for land

-

-

219)

219)

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

-

-

-

-

-

10,000-6,498

16,49823,001

25,573-25,5735,750

36,774-21,75864,283

Shareholders’ equity
Treasurystock
Balance at beginning of period

8,212)

Valuation and translation adjustments

Valuation
Total
Deferred gains
Total valuation and Total net assets
difference on
Revaluation
shareholders’or losses ontranslation
available-for-salereserve for land
equityhedgesadjustments
securities
88,14774,932

3

6,017

80,953

169,100

Changes during period
Provision of general reserve--

Provision of reserve forconstruction--

Dividends from surplus

2,149)(2,149)Profit18,867

18,867

-

-

(23)

(23)

-

-

(219)

(219)

Disposal of treasury stock
Purchase of treasury stock

23)

Transfer of loss on disposalof treasury stockReversal of revaluation
reserve for land
Net changes other thanshareholders’ equity
Total changes during period
Balance at end of period

19,917)29)

647

19,298)19,298)23)

16,474(19,917)

(29)

647

(19,298)(2,823)(8,236)

104,62255,01425)

6,665

61,654

166,276―20―

Year ended March 31, 2016 (April 1, 2016 through March 31, 2017)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at beginning of period

Retained earnings
Other retained earnings

Capital
stock

Legal
capitalsurplus

23,001

25,573

Other
capitalsurplus-

Total capitalsurplusLegalretainedearnings

25,573

5,750

Retained
General Reserve for earnings
reserve construction brought
forward36,774-21,758

Total
retainedearnings

64,283

Changes during period
Provision of general reserve-

Provision of reserve forconstruction

15,00015,000)-

Dividends from surplus(3,070)(3,070)

Profit41,10041,100

Disposal of treasury stock

19)

(19)

-

Purchase of treasury stock-

Transfer of loss on disposalof treasury stock19

19

Reversal of revaluation
reserve for land

(19)

(19)

989

989

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

-

-

-

-

-

-

15,00023,99938,99923,001

25,573-25,5735,750

36,77415,00045,757103,282

Shareholders’ equity
Treasurystock
Balance at beginning of period

8,236)

Valuation and translation adjustments

Valuation
Total
Deferred gains
Total valuation and Total net assets
difference on
Revaluation
shareholders’or losses ontranslation
available-for-salereserve for land
equityhedgesadjustments
securities
104,62255,01425)

6,665

61,654

166,276

Changes during period
Provision of general reserve--

Provision of reserve forconstruction--

Dividends from surplus

3,070)

3,070)

Profit41,10041,100

Disposal of treasury stock

240

221

221

Purchase of treasury stock

238)

(238)

(238)

-

-

989

989

Transfer of loss on disposalof treasury stockReversal of revaluation
reserve for land
Net changes other thanshareholders’ equity
Total changes during period
Balance at end of period

8,465

25

989)

7,502

7,502

2

39,001

8,465

25

(989)

7,502

46,5048,233)

143,624

63,4800)

5,676

69,156

212,780―21―

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

Full year

FY2015FY2016FY2017FY2015FY2016FY2016

ActualActual(a)

Forecast(b)

AmountPercentage(%)

Actual(a)

Revisedforecast
Apr. 7, 2017

Actual(b)

AmountPercentage(%)

Forecast(c)

AmountPercentage(%)

Net sales

218,491

204,176

187,000‐17,176-8.4

492,621420,000

422,722‐69,899‐14.2

437,000

14,277

3.4

Construction
business

209,587

197,607180,000-17,607‐8.9

475,433

407,000

409,238‐66,194‐13.9

423,000

13,761

3.4

Domestic

203,359

193,329

172,200-21,129-10.9

463,340

400,300

401,606‐61,733-13.3

407,000

5,393

1.3

Overseas

6,228

4,277

7,800

3,523

82.4

12,092

6,700

7,632

‐4,460-36.9

16,000

8,368

109.6

Real estatebusiness

8,903

6,569

7,000

430

6.5

17,18813,00013,483‐3,705-21.6

14,000516

3.8

Domestic

8,650

6,244

6,400

155

2.5

15,407

12,21012,750‐2,656-17.2

12,750-(0.0)

Overseas

253

325

600

274

84.3

1,781

790

733

‐1,048

‐58.9

1,250

517

70.5

Gross profit

22,57625,03423,500-1,534-6.1

47,80551,50052,942

5,136

10.7

48,000-4,942-9.3

Profit margin10.3 %

12.3 %

12.6 %

9.7 %

12.3 %

12.5 %

Construction
business

20,732

23,60921,50044,831

48,00049,544-5,544

-11.2

9.9 %

11.9 %

11.9 %

9.4 %

11.3 %

12.1 %

1,843

1,425

2,000

2,974

3,500

3,398

601

17.7

20.7 %

21.7 %

28.6 %

17.3 %

26.9 %

25.2 %

SG&A expenses

11,585

12,897

14,500

1,602

12.4

26,17628,50027,944

1,768

6.8

29,0001,055

3.8

Operatingincome10,99012,1379,000‐3,137-25.8

21,62923,00024,998

3,368

15.6

19,000-5,998-24.0

Non-operating
income

972

985

1,000

14

1.5

2,093

2,000

2,199

105

5.0

2,000

-199

-9.0

Ordinary
income11,962

13,122

10,000‐3,122-23.8

23,72325,00027,197

3,474

14.6

21,000-6,197-22.8

Extraordinary
income (loss)

701

(31)

-

31

-

793)

900

1,164

1,958

-

-

-1,164-

Profitbefore incometaxes

12,664

13,091

10,000-3,091-23.6

22,92925,90028,362

5,432

23.7

21,000-7,362-26.0

Income taxes

1,349

1,614

3,300

1,685

104.3

2,744

13,600)13,898)‐16,643-

7,000

20,898-

Profit11,315

11,476

6,700-4,776‐41.6

20,18539,50042,261

22,076109.4

14,000-28,261-66.9

Real estatebusiness

YoY (b)-(a)-2,109

574

-8.9

40.3

YoY (b)-(a)FY2017

YoY (c)-(b)

11.0
4,713

10.5

44,000
10.8

424

14.3

4,000
28.6

Profit (loss)
attributable to
20)
19
145
169
24
16.6
-169
‐19
non-controllinginterests
Profitattributable to11,335
11,4566,700-4,756-41.5
20,03939,50042,091 22,052
110.0
14,000 -28,091 -66.7
owners of parent
Note: These statements include Toda Corporation’s forecasts based on information currently available as of the announcement date, which are subject to a number ofrisks and uncertainties. Therefore, the actual results of developments may differ from those presented in these forward-looking statements due to the changes invarious factors.

―22―

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

Full Year

FY2015FY2016FY2017FY2016
Revisedforecast
Apr. 7, 2017

FY2016

ActualActual(a)

Forecast(b)

AmountPercentage(%)

172,839

207,512207,200

-312

-0.2

420,769

455,000

478,587

57,817

13.7

Domestic

172,747

205,446

204,200-1,247

Overseas

92

2,065

3,000

935

-0.6

420,507450,600

475,046

54,538

45.3

261

4,400

3,540

3,278

Construction
business

167,446

204,677

205,000

322

0.2

412,859

450,000

473,335

Architectural
construction

121,411

168,671160,000-8,671-5.1

309,289

350,000

Civil engineering

46,03536,005

Real estatebusiness

45,000

8,994

25.0

103,569

5,393

2,834

2,200

-634

-22.4

Net sales
Construction
business

205,295

192,929

172,200-20,729

199,901

190,094

170,000

Architectural
construction

158,947

145,920

Domestic

158,567

145,448

Orders received

YoY (b)-(a)FY2015
Actual(a)

Actual(b)

YoY (b)-(a)FY2017

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

AmountPercentage(%)

449,500-29,087

-6.1

13.0

444,000-31,046

-6.5

-

5,500

1,960

55.4

60,47614.6

445,000-28,335-6.0

358,852

49,56216.0

350,000-8,852-2.5

100,000

114,483

10,914

10.5

95,000-19,483

-17.0

7,910

5,000

5,251

-2,658

-33.6

4,500

-751

-14.3

-10.7

463,476

395,000

399,578-63,897-13.8

404,500

4,921

1.2

-20,094-10.6

455,565

390,000

394,327-61,238-13.4

400,000

5,672

1.4

120,000-25,920-17.8

362,290

290,000

292,908-69,382-19.2

300,000

7,091

2.4

119,000-26,448-18.2

361,428

289,000

291,762-69,665-19.3

298,000

6,237

2.1

AmountOverseas

379

471

1,000

528

112.0

862

1,000

1,164

301

34.9

2,000

835

71.8

Civil engineering

40,954

44,17450,000

5,825

13.2

93,274

100,000

101,418

8,143

8.7

100,000-1,418-1.4

Domestic

40,43643,932

48,750

4,817

11.0

92,074

99,200100,549

8,474

9.2

97,250-3,299-3.3

Overseas

518

242

1,250

1,007

416.5

1,200

800

869

-330

-27.5

2,750

1,880

216.3

Real estatebusiness

5,393

2,834

2,200

-634

-22.4

7,910

5,000

5,251

-2,658

-33.6

4,500

-751

-14.3

Gross profit

21,27823,402

21,300-2,102-9.0

44,06247,50048,610

4,548

10.3

43,100-5,510-11.3

Profit margin10.4 %

12.1 %

12.4 %

9.5 %

12.0 %

12.2 %

Construction
business

20,05622,54020,50042,77446,00046,912-5,412-11.5

10.0 %

11.9 %

12.1 %

9.4 %

11.8 %

11.9 %

15,56819,49615,00033,97636,30036,579-6,079

-16.6

9.8 %

13.4 %

12.5 %

9.4 %

12.5 %

12.5 %

4,487

3,044

5,500

8,798

9,700

10,333666

6.5

11.0 %

6.9 %

11.0 %

9.4 %

9.7 %

10.2 %

1,222

862

800

1,287

1,500

1,698

-98

-5.8

Architectural
construction
Civilengineering
Real estatebusiness-2,040-4,496

2,455

-9.1

-23.1

80.7

-62

-7.2

10.7 %
4,138

9.7

41,50010.4 %

2,603

7.7

30,50010.2 %

1,534

17.4

11,00011.0 %

410

31.9

1,600

22.7 %

30.4 %

36.4 %

16.3 %

30.0 %

32.3 %

SG&A expenses

10,29011,53413,000

1,465

12.7

23,58125,50025,1991,617

6.935.6 %
26,000800

3.2Operating income

10,988

11,8688,300-3,568-30.1

20,48022,00023,411

2,931

14.3

17,100-6,311-27.0

Non-operating
income

846

874

950

75

8.7

1,832

1,900

1,949

116

6.4

1,800

-149

-7.7

Ordinary income

11,834

12,742

9,250-3,492-27.4

22,312

23,90025,361

3,048

13.7

18,900-6,461-25.5

Extraordinary
income (loss)
Profit before income
taxes

604

(27)

-

27

-

(1,013)

1,000

1,209

2,223

-

-

-1,209-12,43912,7149,250-3,464-27.2

21,29924,90026,570

5,271

24.7

18,900-7,670-28.9

Income taxes

1,369

1,463

3,000

1,537

105.1

2,431

(14,100)(14,530)-16,961-

6,200

20,730-

Profit11,070

11,251

6,250-5,001-44.5

18,86739,00041,10022,232117.8

12,700-28,400-69.1

Dividend per share
10.0
12.0
15.0
5.0
50.0
12.0
-3.0
-20.0
(yen)
Note: These statements include Toda Corporation’s forecasts based on information currently available as of the announcement date, which are subject to a number ofrisks and uncertainties. Therefore, the actual results of developments may differ from those presented in these forward-looking statements due to the changes invarious factors.

―23―

(3) Orders Received, Net Sales and Balance Brought Forward (non-consolidated)
1) Orders Received
Business segment/Classification
I Construction business(A) Architectural construction
Domestic public sector
Domestic private sector
Overseas
Subtotal(B) Civil engineering
Domestic public sector
Domestic private sector
Overseas
Subtotal(C) Total (A)+(B)
Domestic public sector
Domestic private sector
Overseas
Subtotal
II Real estate business
III Total (I + II)(Millions of yen)
FY2015
From Apr. 1, 2015
to Mar. 31, 2016
AmountRatio (%)

FY2016
From Apr. 1, 2016
to Mar. 31, 2017
AmountRatio (%)

ChangeAmountPercentage (%)

50,069258,990229
309,289

11.9
61.6
0.1
73.5

40,516
314,803
3,532
358,852

8.5
65.8
0.7
75.0

-9,55255,812
3,302
49,562-19.1
21.5
1,438.8
16.0

88,38415,153
32
103,569

21.0
3.6
0.0
24.6

99,152
15,322
8
114,483

20.7
3.2
0.0
23.9

10,768169-23
10,914

12.2
1.1
-73.0
10.5

138,453
274,144261
412,859
7,910
420,769

32.9
65.2
0.1
98.1
1.9
100.0

139,669
330,1253,540
473,335
5,251
478,587

29.2
69.0
0.7
98.9
1.1
100.0

1,216
55,981
3,279
60,476-2,65857,8170.9
20.4
1,252.6
14.6
-33.6
13.7

2) Net Sales
Business segment/Classification
I Construction business(A) Architectural construction
Domestic public sector
Domestic private sector
Overseas
Subtotal(B) Civil engineering
Domestic public sector
Domestic private sector
Overseas
Subtotal(C) Total (A)+(B)
Domestic public sector
Domestic private sector
Overseas
Subtotal
II Real estate business
III Total (I + II)(Millions of yen)
FY2015
From Apr. 1, 2015
to Mar. 31, 2016
AmountRatio (%)

FY2016
From Apr. 1, 2016
to Mar. 31, 2017
AmountRatio (%)

ChangeAmountPercentage (%)

43,607
317,820862
362,290

9.4
68.6
0.2
78.2

49,284242,459
1,164
292,908

12.3
60.7
0.3
73.3

5,677
-75,361301-69,382

13.0
-23.7
34.9
-19.2

72,631
19,443
1,200
93,274

15.7
4.2
0.3
20.1

86,475
14,073
869
101,418

21.6
3.5
0.2
25.4

13,844-5,369
-330
8,143

19.1
-27.6
-27.6
8.7

116,238
337,264
2,063
455,565
7,910
463,476

25.1
72.8
0.4
98.3
1.7
100.0

135,759
256,533
2,033
394,3275,251
399,578

34.0
64.2
0.5
98.7
1.3
100.0

19,521-80,730-29-61,238-2,658-63,897

16.8
-23.9
-1.4
-13.4
-33.6
-13.8

3) Balance Brought Forward
Business segment/Classification
I Construction business(A) Architectural construction
Domestic public sector
Domestic private sector
Overseas
Subtotal(B) Civil engineering
Domestic public sector
Domestic private sector
Overseas
Subtotal(C) Total (A)+(B)
Domestic public sector
Domestic private sector
Overseas
Subtotal
II Real estate business
III Total (I + II)(Millions of yen)
FY2015(As of March 31, 2016)
AmountRatio (%)

FY2016(As of March 31, 2017)
AmountRatio (%)

ChangeAmountPercentage (%)

60,100299,759554
360,415

11.3
56.3
0.1
67.6

51,333372,103
2,922
426,359

8.4
60.8
0.5
69.7

-8,767
72,343
2,368
65,943

-14.6
24.1
426.9
18.3

154,321
14,566
3,524
172,412

29.0
2.7
0.7
32.4

162,242
20,5702,663
185,477

26.5
3.4
0.4
30.3

7,921
6,004
-860
13,065

5.1
41.2
-24.4
7.6

214,421314,326
4,079
532,827

40.2
59.0
0.8
100.0

213,575
392,673
5,586
611,836

34.9
64.2
0.9
100.0

-846
78,347
1,507
79,008

-0.4
24.9
36.9
14.8

-

-

-

-

-

-

532,827100.0

611,836

100.0

79,00814.8―24―