Results Briefing
for the Year ended March 31, 2023
May 19, 2023

TODA CORPORATION

1This material contains forward-looking statements regarding TODACORPORATION and the Group’s business plans, strategies, andearnings forecasts.
These statements are TODA CORPORATION’s forecasts based on
currently available information and may involve potential risks anduncertainties.
The actual results or developments may differ from the forwardlooking statements due to changes in various factors.

2

Today’s Program

１．Results Briefing

General Manager of Corporate Administration Group

Toshihiro Yamazaki

２．Progress of the Management Plan
President and Representative Director

Seisuke Otani

3

１．Results Briefing
General Manager ofCorporate Administration Group
Toshihiro Yamazaki
4

FY2022 Financial Highlights (Consolidated)

︓


︓


︓

Consolidated net sales¥547.1 bil (+9.1％ YoY)

Net sales increased 9.1% YoY to ¥547.1
bil, mainly due to increase in sales in theoverseas investment and development
business.

Ordinary income¥14.1 bil （-42.0％ YoY）

Operating income decreased 42.0% YoY
to ¥14.1 bil. In the architectural
construction business, provision for loss
on construction contracts recorded forseveral projects due to the rising pricesof steel frames and other materials
caused by changes in the market
environment.

Orders received(non-consolidated)¥426.7 bil （-5.7％ YoY ）Orders decreased 5.7% to ¥426.7 bil,mainly due to decrease in orders forprivate-sector construction in domestic
construction.

(Billions of yen)

Consolidated net
sales
Gross profit

FY2021

FY2022

Change(YoY)

FY2023(Forecast)

501.5

547.1

9.1%

540.0

57.3

-8.5％

66.0

62.6

(12.5%)(4.9%)(2.6%)

14.1-42.0％

16.0

Ordinary income

28.1

19.0

-32.3%

19.5

Net profit
attributable toowners of theparent18.5

10.9-40.8%

19.5

5.9

3.5

-

6.1

452.2

426.7

-5.7%

460.0

Operating income

ROE
Orders received(nonconsolidated)

24.3(10.5%)

5

[Consolidated] Results by Segment（Billions of yen）

FY2022

Architectural
Construction

Civil
Engineering

Domestic
Investment
andDevelopment

DomesticGroup
Companies

Overseas
Investment andDevelopment

Environment
and Energy

Adjustment

Net sales

343.8

141.6

19.5

52.3

26.4

1.5

-38.1

547.1

Segment
income(loss)

-2.0

11.7

3.2

1.9

1.7

0.1

-2.7

14.1

(ー)

(8.3)

(16.7)

(3.8)

(6.6)

(8.1)

FY2021

Architectural
Construction

Civil
Engineering

Domestic
Investment
andDevelopment

DomesticGroup
Companies

Overseas
Investment
andDevelopment

Environment
and Energy

Adjustment

Net sales

304.6

147.9

21.4

45.2

2.2

0.6

-20.7

501.5

7.8

11.9

4.0

1.9

0.7

-0.8

-1.1

24.3

(2.6)

(8.1)

(18.9)(4.2)(30.9)(ー)(Profit margin)

Segment
income(loss)(Profit margin)

Total

(2.6)

Total

(4.9)
6

Major Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Maishima Development SPC(Tentative name) DPL Osaka Maishima Construction Work

Lam SPCESR OS1 Data Center Construction WorkSun Rise Inzai 4 SPC(Tentative name) Sun Rise Inzai 4 DC Construction Work

National Printing Bureau

Oji Plant Business Building Construction Work and Other
Work

Aichi Prefecture

Meiwa High School Building and Other Construction Work

Central Nippon Expressway
Co., Ltd.

Hakamagoshi Tunnel Construction on Tokai-Hokuriku
Expressway (4-lane)

JR-EAST Energy Development
Co., Ltd.

Iwaki Umaageyama Wind Power Plant

West Nippon Expressway Co.,Ltd.

Hiroshima Kure Road Yoshiura Tunnel Construction

Central Nippon Expressway
Co., Ltd.

Shin-Meishin Expressway Kirigataki Bridge and Other One
Bridge Widening Work (PC Upper Work)7

Major Carryover Works
Architectural
Construction

Civil
Engineering

Ordering Parties

Name of Works

Shibuya Station Sakuragaoka Exit
District Redevelopment
Association

Shibuya Station Sakuragaoka Exit District Type 1 Urban
Redevelopment Project

St. Marianna University School of
Medicine

St. Marianna University School of Medicine Sugao
Campus Renewal Plan

JAPANET HOLDINGS Co., Ltd.

Nagasaki Stadium City Project(II and III sections) Work Area

Toyo University

Akabanedai Campus New Building Construction Work
(Site C)

Izumiotsu City Hospital(Tentative name) New Izumiotsu City Hospital
Development Project

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

Yokohama Shonan Road Tunnel Work

East Nippon Expressway Co., Ltd.

Shin-Meishin Expressway Ujitawara Tunnel East Work

Central Nippon Expressway Co.,Ltd.

Tokyo Outer Ring Road Main Line Tunnel (North Bound)
Tomei North WorkTokyo Metropolitan Government

Johoku Chuo Park Detention Pond (Phase 1) Work28[Non-consolidated] Carryover Works（Billions of yen）

717.2

738.5

4.5

3.6

279.8

263.6



The amount carried over to the next
fiscal year decreased slightly from theprevious fiscal year.

In the domestic construction business,both public and private sector
construction decreased, resulting in¥32.4 bil decrease from the previous
fiscal year.

In the domestic civil engineeringbusiness, private sector construction
decreased, but public sector
construction increased, resulting inincrease of ¥15.6 bil from the previous
fiscal year.

718.6
Overseas

0.5

Civil
Engineering

279.2

432.7

471.2

Architectural
Construction

438.8

March 2021

March 2022

March 2023

9

１-1．Details of Financial Results

10[Consolidated] Overview of TODA Group
Business

Subsidiaries in JapanAPEC Engineering Co., Ltd.

Construtora Toda do Brasil S/A

Chiyoda Kenkou Co., Ltd.

PT Tatamulia Nusantara Indah

Construction Toda Road Co., Ltd.

Sato Kogyo Co., Ltd.

OthersThai Toda Corporation Ltd.

Showa Construction Co. , Ltd.

Toda Vietnam Co., Ltd.

Toda Bldg. Partners Co., Ltd.

Toda America, Inc.

and 3 other companies

Real estate

Overseas Subsidiaries

companies

23

companies

and 11 other companies

PT Toda Group Indonesia

and １ other company

Toda Finance Co., Ltd.

TODA Investimento do Brasil Ltda.

Toda Staff Service Co., Ltd.

TODA Energia do Brasil Ltda.

Towa Kanko Kaihatsu Co., Ltd.

TODA Energia 2 Ltda.

Goto Floating Wind Power LLC

Domestic Group Companies

Offshore Windfarm Construction Co., Ltd.

Architectural Construction

Toda Noubou Inc.

Overseas Investment and Development

and 3 other companies

39

4companies

12companies

Environment and Energy
11[Consolidated] Balance Sheets
Assets761.1
Current
Assets386.5

Non-current
assets173.8
Investments
and otherassets200.7

March 2022

(Billions of yen)

+54.3

815.5

+45.0

Current
Assets
431.5

+16.8

Non-current
assets
190.7-7.5

Investments
and otherassets193.2

March 2023

Major variable factors

Current Assets+45.0

Cash and deposits
Accounts receivable
Securities

-23.6
＋73.9
-9.5

Non-current assets+16.8

Buildings and structures
Machinery, vehicles, tools,
furniture and fixtures
Land
Construction in progress

＋6.3
+0.2
-0.4
＋10.4

Investments and otherassets-7.5

Investment securities

-7.5



Current ratio（March 2022 ➡ March 2023）

129.2% ➡ 139.2％

12

[Consolidated] Balance Sheets
Liabilities and Net Assets

(Billions of yen)

761.1
Current
liabilities
299.1

+54.3

+10.9

Current liabilities

815.5

Notes and account payable-trade
Short-term loans payable
Commercial paper
Corporate bonds redeemablewithin one year

Current
liabilities
310.0

Non-current liabilities

Non-current
liabilities
143.0

+39.2

Non-current
liabilities
182.2

Net
assets
319.0

+4.2

Net
assets323.2

Corporate bonds
Long-term loans payable

Net assets
Retained earnings
FX conversion adjustments
Non-controlling interests

March 2022

Major variable factors

March 2023

Equity ratio(March 2022 ➡ March 2023）

41.6% ➡ 38.9％

+10.9
+13.5
+21.5
-20.0
-10.1

+39.2
+4.9
+35.7

+4.2
+1.8
-1.1
+3.5

13

[Non-consolidated] Cross-Shareholdings
Number of stocks
157

159

113.4

163.9

104.5

The balance of cross-shareholdings
is being reduced to secure financing
for investments in growth.

At least ¥30 bil worth of crossshareholdings to be sold over three
years (FY2022 – FY2024)* Market value basis

156(Billions of yen)

172.6



159.2

102.9

Valuation
Difference

59.2

59.4

56.3

Book
Value

March 2021

March 2022

March 2023

March 2024 (Forecast)

Sales of cross-shareholdings stocks
Number ofSales value
stocks soldFY202021 stocks¥5.7 bil

FY202112 stocks¥4.5 bil

FY202210 stocks¥11.5 bil
14

[Consolidated] Interest-Bearing Liabilities（Billions of yen）

211.5



During FY2022, interestbearing liabilities increased by¥32.1 bil due to ¥21.5 bil
increase in short-term loans
payable and ¥35.7 bil increasein long-term loans payable,
while commercial paper andcorporate bonds decreased by¥20.0 bil and ¥5.1 bil
respectively.



In FY2023, interest-bearing
liabilities to be increased by¥33.5 bil, keeping the D/E ratio
below 0.8x in order to maintainfinancial soundness.

245.0

179.3
151.0

Long
84.2

82.7

68.2
March 2021

95.1

-term
124.9
Short
-term
86.6

March 2022

March 2023

March 2023
(Forecast)

0.49x

0.57x

0.67x

D/E ratio* D/E ratio = Interest-bearing liabilities / Shareholders’ equity

15

[Consolidated] Provision for Loss in Construction Contracts（Billions of yen）

9.43

Overseas

0.05+ ¥6.76 bil (YoY)

CivilEngineering
2.89

+¥6.76 bil
2.66

2.75
1.01

Architectural
Construction
0.05

6.47

Provision for loss inconstruction contracts

Major variable factors: In
several projects indomestic construction
business, the cost of
construction increased dueto the rise in material
prices caused by changes
in the market environment.

2.19

1.58
0.16

March 2021

0.41

March 2022

March 2023

16

[Consolidated] SG & A（Billion of yen）

SG&A Ratio

7.6%

7.9%



9.3%

In addition to the above factors,
on consolidated basis, theexpenses increased by ¥4.8 bil due
to consolidation of TATA as aconsolidated subsidiary.

Consolidated

50.0

Consolidated

43.1

38.2

33.3

March 2022

Nonconsolidated

36.7

March 2023

Nonconsolidated

41.0

March 2024
(Forecast)

FY2022On non-consolidated basis, theexpenses increased by ¥3.3 bil,mainly due to increase intechnology R&D and digitalization
costs.



FY2023For both non-consolidated andconsolidated, SG&A expected toincrease due to continued
investments in human capital,technology R&D, and digitalization.
17

[Consolidated] Cashflow
Net increase (decrease) in cash and cash equivalents (Mar 2022 to Mar 2023) -33.4
Operating CF -30.8
+17.8

+7.1

Financial CF +22.5

Inv CF -26.1（Billions of yen）

+6.2

129.3
-57.3

+51.6
-4.6

-9.1

+12.0

95.8

Conversion
adjustments

March
2023

-20.0

Investment

Other
IncomeDepreciation
March before
securities
operatingtax
CFAccounts
Accounts
Tangible2022
receivable

+0.9

-2.3

-35.8

payable+0.0

fixed assets

Other
Investment
CFCP
Borrowings/bondsDividends
payments

Otherfinancial CF18

１-２．Earnings Forecasts

19

[Consolidated] FY2023 Earnings Forecasts（Billions of yen）

FY2022
Consolidated
net sales

FY2023
Forecasts

Change (YoY)

547.1

540.0

-1.3%

-7.1

Operating income

14.1

16.0

+13.2％+1.8

Ordinary income

19.0

19.5

+2.4％

+0.4

Net income
attributable toowners of parent

10.9

19.5

+77.3％+8.5

Orders received(non-consolidated)

426.7

460.0

+7.8%

＋33.2
20

[Non-consolidated] FY2023 Earnings Forecasts
Amount(¥bil）Net sales
Gross profit
Profit from construction business

440.0
53.5
47.0

Profit margin
(%)

12.2
11.2

[Domestic architectural construction]

25.9

9.0

[Domestic civil engineering]

20.9

16.2

[Overseas]

0.0

6.2

6.5

32.5

Profit from investment and development
business and others
Selling, general and administrative
expenses
Operating income
Ordinary income
Income taxes
Net income

41.0
12.5
16.0
7.8
18.2

2.8
3.6
4.1
21

[Non-consolidated] Earnings Forecasts for Construction Business
Orders Received forConstruction

700.0（Billions of yen）

Net Sales of Completed
Construction Contracts

700.0（Billions of yen）

460.0

600.0

446.5

420.0

600.0

Overseas
Overseas
2.0
-1.1
Civil
119.0
Engineering
141.6

500.0

Overseas
1.9

Overseas
1.3

500.0

Architectual 339.0
Construction
286.1

200.0

426.7

March 2023 March 2024
(Forecast)

400.0
300.0
100.0
0.0

Civil
Engineering
126.0

129.7

Architectual
Construction 289.0
318.5

March 2023 March 2024
(Forecast)Gross Profit Margin on
Completed
Construction Contracts (%)
Civil Engineering
16.7

400.0
300.0

Total
9.1

0.0

11.2
9.0

200.0
100.0

16.2

Architectural
Construction
6.3
March 2022

March 2023
(Forecast)22

2．Progress of the Management Plan
President and Representative Director
Seisuke Otani

23

Results

24

Market Environment
Construction investment stayed flat in FY2022; slight increase
expected in FY2023(Trillions of yen)
80

70
60
50

Construction Investment(Nominal value)

61.8

62.3

5.5

5.4

15.9

16.7

65.4

66.6

66.7

6.8

6.9

7.0

18.1

17.1

17.6

6.6
17.7

privateCivil Engineering-

Construction-private

20

36.3

36.3

37.9
Construction-public

10
0

5.7
FY 2018In FY2023, private-sector
investment is expected to
exceed that of the previous
year, and overall
construction investment is
projected to increase 2.6%
YoY to ¥68.4 tril.

Civil Engineering-

30
34.2



68.4

public34.4

In FY2022, construction
investment stayed flat
despite pickup in thedomestic economy due toprogress in thenormalization ofsocioeconomic activities.

Forecasts

40

34.8



5.7

6.4

6.3

5.9

6.3

2019

2020

2021

2022

2023

Source: Research Institute of Construction and Economy

25Market Environment

Source: Calculated from Ministry of Land, Infrastructure, Transport andTourism, and Construction Research Institute data

Rising prices of construction materials and labor pushing up
construction costs
Construction designlabor unit priceConstruction Material Price Index(Tokyo, based on 2015)

130

Construction

132.7
127.8

131.3

130

Civil Engineering

120

121.6

100

120

110

110

FY 2017 2018 2019 2020 2021 2022 2023
* Fiscal year average (April value applied for FY2023)

133.3(Nationwide, all occupation, based on 2015 )

100

126.4
Index based on 2015

22,227 (Yen)21,084
18,0782017 2018 2019 2020 2021 2022 2023

* Figures applicable since February 2014 were used as the 2015baseline.

26

Forecasts and Results
2022

2024
Target(Medium-term Plan)

Forecasts

Actual2023
Forecasts

Operating income

520.0
20.5

547.1
14.1

540.0
16.0

600.0 ¥ bil
33.0 ¥ bil

Operating margin

3.9

2.6

3.0

5.5 ％

Capitalefficiency

Net income
ROE

18.8
6.0

10.9
3.5

19.5
6.1

26.0 ¥ bil
8.0 ％Productivity

Labor productivity(non-consolidated)

13.5

11.71

12.5

15.0 ¥ mil

Shareholder
return

DOE

2.6
44.1

2.7
76.5

2.7
44.3

2.5 ％
40.0 ％

Consolidated sales

Profitability

Total return ratio* Labor productivity = Added value (operating income + total labor cost) / Number of employees (average during the period, including temporary
workers, etc.)* DOE (dividend on equity ratio) = Total amount of dividends / equity capital* Total return ratio = Total amount returned to shareholders (total dividends + total share buybacks) / Net income attributable to shareholders of
the parent

27

Results by Segment* Sales and operating income by each segment do not match the totals because of the inclusion of consolidation eliminations.
* Figures for FY2023 onwards include adjustments for segment reclassification. (Construction-related overseas subsidiaries arescheduled to be transferred from the Construction Business to Overseas Investment and Development segment.)

2022

Forecasts

Consolidated net sales
Architectural Construction
Civil Engineering

Strategic

Domestic Investment and Development/
Environment and Energy
Group Companies
Overseas Investment and Development

Operating income
Architectural Construction
Civil Engineering

Strategic

Domestic Investment and Development/
Environment and Energy
Group Companies
Overseas Investment and Development

2023

2024
TargetActualForecasts

520.0
322.0
130.0

547.1
343.8
141.6

540.0
290.0
130.0

20.7

21.0

22.0

32.0

54.0
2.5
20.5
5.1
11.1

52.3
26.4
14.1
-2.0
11.7

55.0
52.0
16.0
1.6
9.4

55.0
28.0
33.0 ¥ bil
9.8
14.2

1.0

3.3

1.6

0.0

2.2
1.0

1.9
1.7

1.5
3.0

3.5
5.5

at beginningof the term(Medium-term
Plan)

600.0 ¥ bil
350.0
145.0

28

Construction
Business

Carryover Works (Architectural Construction)
FY2021
Stores 0.7
Others［¥13.9 bil］
2.9
Redevelopment［¥44.8 bil］
9.5

Factories
and power
plants 6.3
Housing
12.4
Carryover

Medical andwelfare facilities
15.1

Others 2.2

Others 1.6

Accommodations
3.4［¥58.8 bil］

Stores 2.5
Offices andgovernmentbuildings
22.6［¥106.8 bil］

Works

Others［¥14.6 bil］
3.3
Redevelopment［¥22.4 bil］
5.1

¥473.6 bil(end of March 2022）［¥71.6 bil］

FY2022

Educational,
research andcultural facilities
16.9［¥79.9 bil］

Warehouse anddistribution facilities
21.1［¥100.0 bil］

Accommodations
4.0
Factories
and power
Offices andplants 7.9
government buildings
28.5
Housing
Carryover
8.4［¥125.0 bil］［¥37.0 bil］

Medical andwelfare facilities
12.4［¥54.3 bil］

* In-house construction works (approx. ¥61.7 bil in FY2021, approx. ¥76.4 bil in FY2022) not included.
* Unit: %, [ ]: contract amountWorks¥439.3 bil(end of March 2023)

Educational,
research andcultural facilities
16.0

Warehouse anddistribution facilities
18.2［¥80.0 bil］［¥70.1 bil］

29

Construction
Business

Carryover Works (Civil Engineering)
FY2021
Erosion andflood control
1.3
Land
development
7.2［¥19.1 bil］
Renewableenergy11.2

Others12.6

FY2022Others
9.8

Roads
35.0

CarryoverWorks［¥92.7 bil］

¥264.8 bil(end of March 2022）

Tunnels
31.4［¥83.2 bil］［¥29.6 bil］
Water supply
and sewage Railways
12.8
19.8
［¥34.0 bil］
Shields
Others［¥52.3 bil］
17.3
12.1
Bridges and［¥45.8 bil］［¥32.0 bil］
overpasses
6.8［¥17.9 bil］

Erosion and flood
control
1.5
Landdevelopment
5.5［¥15.3 bil］
CarryoverRenewableenergyWorks
11.1［¥31.1 bil］

Roads
43.0
［¥120.1 bil］

¥279.2 bil

Water (end of March 2023）
supply andsewageOthers12.3
Railways
9.4 ［¥34.3 bil］［¥26.1 bil］
16.8

Tunnels
40.0［¥111.6 bil］

Bridges and［¥47.0 bil］
overpasses
Shields
9.6
13.2［¥26.8 bil］［¥36.8 bil］

* In-house construction works (approx. ¥0.4 bil in FY2021, approx. ¥8.9 bil in FY2022) not included.
* Unit: %, [ ]: contract amounts

30Business Conditions（Key Challenges for FY2023）
Business
RecoveryInvestments
Priority
Management
Businesses
Non-financial
Targets

Measures to address the cause of deteriorating business conditions (highinflation etc)
 Strengthen agility and organizational responsiveness to environmental
changesHR development, skill development, mid-career hirings
Investments for growth to build future revenue base
Investing in R&D to improve technical capabilities as a general contractor

Full-scale investment in New TODA BUILDING to be completed in FY2024
Reinforcement of organizational structure in overseas business(reorganization)
 Towards the early realization of floating offshore wind power generation
projectsInitiatives to achieve carbon neutrality
Recognition for proactive efforts in the environmental field
31

Investments

32

Investment Plan
Full scale investment in new TODA BUILDING in FY2023

Investments
for GrowthIntangible
AssetsReal Estate
Development
Environment &Energy2022
Planned at
beginning of
the term

Actual42.0 （New27.3
TODA
BLDG: 9.2）

12.0 10.6

Medium- term
Business Plan
2024
（2022-2024）

2023
Plan

77.0

¥bil

160 ¥bil

26.0 ¥bil

30 ¥bil（New TODA
BLDG: 30.0)

M&A

4.0

3.9

0.0 ¥bil

0 ¥bilHuman Capital

1.0

0.5

1.0 ¥bil

3 ¥bil4.0

3.1

13.5 ¥bil

20 ¥bil

3.5

2.9

3.5 ¥bil

9 ¥bil1.0

0.6

1.0 ¥ bil

3 ¥bil67.5 48.9

122.0 ¥ bil

225 ¥bilTechnology
Development
Digitalization

Machinery, equipment, etc
Total* Figures are the sum of general and administrative expenses and capitalized assets.

33

Investments for Growth

Real estate development

Environment & energy

M&A

Full scale investment in new TODA BUILDING in FY2023
Investment Recovery(by fiscal year)

3.9

103.0

(Billions of yen)

26.0

Net Investment 86.0

77.0

41.8
10.6

Planned investments
other than new TODA BUILDING

Agri-Science Valley Joso

Net Investment 26.6

27.3
(New TODA BLDG 9.2）

(New TODA BLDG 30.0）

-15.2

-15.3

-0.1

-17.0

-17.0

(Investment) (Recovery)(Investment) (Recovery)

FY2022 Actual

FY2023 Plan

Net investment = Investment amount – Collected amount

Onshore Wind Power Generation Project in Brazil –Commencement of Phase 2 Project(The wind turbine equipment with company logo for illustrative purposes)

34

Investment in Intangible Assets

Human capital

Actively investing in technology R&D

Technology R&D

Digitalization

Main Technology R&D(FY2022 News Release)

Intangible asset
investment(by fiscal year）(Billions of yen)

18.0
Remote control room

3.5

13.5
Remote control system for concrete
spraying machine (Hercules-Remote)

6.5

Joint development with TODA CORPORATION,
Shimizu Corporation, Nishimatsu Construction,
Maeda Corporation, and FTS, Ltd.

2.9
3.1
0.5

FY2022(Actual)

既投資額

1.0

FY2023(Plan)

Figures are total of SG&A and amount recorded in assets

Received an evaluation from the Building
Center of Japan for the "P&UA
The P&UA Construction Method Joint Technology
construction method," a mid to high rise
Development Group, in which we participate, received anevaluation from the Building Center of Japan on October 14, wooden building construction method2022 for a model plan of a 10-story apartment building
35
based on this construction method.

Priority Initiatives

36

Priority
Initiatives

Priority Initiatives Roadmap
New TODA BUILDING construction volume peaks
and overseas business growth strategy
Phase1（Medium-term
Plan 2024）(FY)

Overseasbusiness
Renewableenergybusiness

Priority Initiatives

New TODA
BUILDING

2022

2023

New building constriction

2024
Completion

Enhance local business/
strengthen alliances

Phase2
To 2027

Phase3
To 2030150 thAnniversary
2031

Monetization, technology andknow-how deployment

Stable growth, synergies

TATA becomesa subsidiary

Realize cocreation society

Floating
offshorewind power
generation

Build wind farm
2,100 kW×8 turbines

Floating
complex

Initiatives to realize floating complex

Start
operation

Development for larger scale,
deploy to new areas37

New TODA BUILDING

Priority
Initiatives

Progress of construction

Full view of the construction site (as of May 9, 2023)

Steel frame erection(as of May 16, 2023)
38

Priority
Initiatives

New TODA BUILDING

Build a new revenue base by creating value with the new head
office building
Growth Investments

TODA CREATIVE LABO

Community
Development

Smartification
×Construction

×Construction⇒ Redevelopment and urban

revitalization proposals

DisasterPrevention/
Mitigation
×Construction

Area
Management

Digitalization

Earthquake
Resistance

Environmental
Performance⇒ Earthquake resistance,
BCP proposals⇒ Smart building, workplace reforms proposals

Energy×Construction

Revenue Base

⇒ Environmental
performance, ZEB
construction proposals

39

Priority
Initiatives

Overseas Business

Establishment of Global Business Administration Division tocentralize management resources
FY2023 onwards

Previously
Overseas business

Overseas business

Dept

Segment

Construction
directly undercontrol

Construction workin ODA projects

Local
subsidiaries(construction
related)Thai Toda Corpora
tion Ltd. (TTC),
Toda Vietnam Co.,
Ltd.
(TVC), TOBIC

Local
subsidiaries(Investments)

Toda America, Inc.
(TAC),PT Toda Group
Indonesia(TGI),PT Tatamulia
Nusantara Indah(TATA)

Construction
directly undercontrol

Construction
work in ODA
projects

Int’lBranchArchitectural
Construction/
Civil
Engineering

Local
subsidiaries(construction
related)Thai Toda Cor
poration Ltd.
(TTC),
Toda Vietnam
Co., Ltd.
(TVC), TOBIC

Int’l
BranchArchitectural
Construction

Local
subsidiaries(Investments)

Toda America,
Inc. (TAC),PT Toda Group
Indonesia(TGI),PT Tatamulia
Nusantara
Indah (TATA)

Promotion
Office forStrategic
Business

Overseas
Investment
andDevelopment

Dept

Segment

Building
Construction
Business Group/
Civil Engineering
Business Group

Architectural
Construction/CivilEngineering

GlobalBusiness
Administration
Division
Strategic
Business
Promotion
Group

Global(provisional)40

Priority
Initiatives

Overseas Business

Southeast Asia / North and South America as the foundation of
Stable cash
our growth strategy
flow generation
Information acquisition base

Europe Operating base for West Africa business Collaboration with European companies

to gain knowledge (construction, newareas, business models) Acquisition of globally applicable knowhow

Strategies for the
future（West Africa, Europe）

Business continuity
for next generation

West Africa

 Groundwork through ODA projects
 Infrastructure and private capital

Overseas business headquarters

Japan

areas

 Appropriate allocation of management

resources to overseas business Collaboration with business divisions anddissemination of cutting-edge
technology and know-how

Key for future
overseas business

Southeast Asia

North America

 Increase income gains from investment business Possibility of contributing project funds to other Flexible response in consideration of economic

trends2453 west Parkside

Foundation for growthstrategy（Southeast Asia/ Americas）

 Support for Japanese companies entering

overseas markets
 Pursue new overseas business modelthrough synergies with TATA (TATA model)
 Large-scale civil engineering projects
 M&As in Thailand and Vietnam

Shift to new
business model

South America Developing new business by taking

advantage of the local
characteristics (natural resources)
Onshore Wind Power Generation
Business in Brazil

investment and development of newareas in line with economic growth
TATA becomes a wholly
owned subsidiary

111 Pacifica Building

Sudirman Hill Residence41Priority
Initiatives

Floating Offshore Wind Power Generation


A defect found in the floating
structure in the two units that are
currently being fabricated in the
ground yard.



Carefully handing the three windturbines already installed offshore,
including inspections for quality
assurance.



The impact of the corrective
measures on the operational
timing of the wind farm iscurrently being discussed with
Goto FWF and other relevant
parties.

Floating structure in the ground yard42

Non-financial Business Objectives

43Non-financial Business Objectives
Quantitative evaluation
indicators
E

Reduction rate
（vs FY2020）

Actual/Forecasts

TargetMedium-term
Business Plan

(FY2024)(-20.5)-12.6-16.8 %

(per 100 million yen）

14.1

(11.9)

13.0

11.2 t-CO2

Reduction rate
（vs FY2020）-5.0(-0.7)-7.5-10.0 ％

Scope 3 Category 1 basic unit

651.6

(662.1)

609.2

540.7 t-CO2

Category 11 basic unit
(per sqm)

4.2

(2.7)

3.9

3.5 t-CO2

Total accident frequency rate

2.50

4.22

2.50

1.00

Accident frequency date

0.30

0.40

0.20

0.10

6,621

5,567

6,150

7,500 yen

CO2 emissions(per 100 million yen)G

TargetFY2023-8.4

CO2 emissions

Scope 1+2 Basic unit

S

FY2022

Labor productivity per hour

FY22 Scope 1+2 figures are the full-year forecasts as of the end of December, and FY22 Scope 3 figures are the full-year forecasts as of the end of September.
CO₂ emissions do not take into account the impact of making TATA a subsidiary.

Scope 1: Direct CO2 emissions from the use of diesel, etc.
Scope 2: Indirect CO2 emissions by power plants for use of purchased electricity/heat
Scope 3: Indirect emissions other than Scopes 1 and 2
Category 1: Emission at time of construction material manufacturing, Category 11: Emission during period of operationof constructed buildings
Basic unit: Scopes 1 + 2: Emission per ¥100 million net sales
Category 1: Emission per ¥100 million transaction amount, Category 11: Emission per 1 sqm completed grossfloor area

Total accident frequency rate = Total occupational accidents/total working hours (million hours)
Accident frequency rate = Number of occupational accidents requiring 4 or more days of leave / total working hours(million hours)
Labor productivity per hour = Amount of added value (operating income + total human resources expenses) /Number of employees / Average total working hour44

Towards Carbon Neutrality
Recognition of excellent achievements of “GREEN OFFICE” at the
Tsukuba Technical Research Institute
External Evaluation and Certification

 “GREEN OFFICE” wins Good Design Award

In addition to energy conservation, carbon minus through reduction of CO2 emissions,etc., architectural and advanced facility elements for a healthy and comfortable indoor
environment are pursued and practiced, and highly integrated into the architecturaldesign. In particular, the façade, which combines recycled wood louvers and native
vine plants as a design item symbolizing carbon minus, was highly evaluated.

GOOD DESIGN
2022

 Received the Minister of Land, Infrastructure, Transport andTourism Award at the 1st SDGs Architecture Awards

The building was constructed with the goal of not only achieving “ZEB” but also achieving carbon
negative emissions throughout its lifecycle by introducing various technologies. The building wasevaluated for its high degree of completion as an architectural plan, including a design that evokes thefour seasons through the use of wood louvers and wall greening units with a combination of evergreen
and deciduous ivy plants, and the connection between the biotope, wall greening, and indoor greening.

Tsukuba Technical Research Institute “GREEN OFFICE”

BELSBELS認証
certification『ZEB』

CASBEECASBEE認証
certification（Sランク）（S rank）

Ministry of
環境省促進事業the Environment（補助金）

Promotion Project(Subsidy)

 Certified as Excellent Stage 2 in the SEGES "Sodateru-Green"
category
Certified by SEGES (SEGES: Social and Environmental Green Evaluation System)
operated by the Urban Greenery Organization. SEGES is a so-called “green
certification” system that evaluates and certifies excellent greenery that makes asignificant contribution to society and the environment. The “Excellent Stage 2”
in the "Sodateru Green" category covers excellent conservation and creation
activities in green spaces (300 sqm or more) owned by businesses. The
accreditation was granted to the green space on the entire Tsukuba TechnicalResearch Institute site, and the Institute was recognized for its greening efforts
under various themes, including exterior green space, grass biotope, local nativeplant biotope, rooftop and wall greening, bird forest zone, insect forest zone, etc.
The Institute is using the green space for external communication, includinginternal and external training and tours, and hosting elementary and junior highschool students.

45

External Evaluations （FY2022 News Releases）
Recognized for proactive environmental initiatives tocontribute to solving social challenges
 Placed on the prestigious CDP 2022 A-List for Climate Change 283 companies worldwide and 74 companies in Japan, including TODA CORPORATION, were selected for
the Climate Change A-List.
The only general contractor certified as an A-List company for climate change for five consecutive years.
Recognized by CDP (headquartered in London), an international non-profit organization that conducts
environmental assessments, as a global leader in climate change activities and information disclosure.
 当社は ゼネコンでは唯一の5年連続で気候変動Aリスト企業認定
 Selected as a constituentof the “FTSE Blossom
Japan Index”, an ESG investment index
 Selected for inclusion in all five ESG investment indices adopted by the GPIF (General Pension
Investment Fund)
ESG-focused index designed by FTSE Russell, a member of the London Stock Exchange Group. The Index
reflects the performance of Japanese companies that excel in addressing ESG issues, including the SDGs
(Sustainable Development Goals).
(Reference) Five ESG indices adopted by the GPIF: “FTSE Blossom Japan Index”, “FTSE Blossom Japan Sector Relative Index”, “MSCI Japan ESG Select Leaders Index”, “MSCI Japan Equity Women's
Activity Index (WIN)”, ”S&P/JPX Carbon Efficient Index”.

 Selected as an "Environmentally Sustainable Company" in the 4th Annual ESG FinanceAwards Japan sponsored by the Ministry of the Environment
 Strengthening ESG management initiatives based on the Basic Sustainability Policy formulated in
December 2021
 Our proactive approach to solving the Group's materiality issues, which were identified from a variety ofsocial and business-related challenges looking ahead to 2050, was highly evaluated.
ESG Finance Awards Japan was established to recognize institutional investors, financial institutions, intermediaries, and companies that have made an impact through theirproactive efforts in ESG finance or environmental and social business, and to share the awards widely among the public to promote and expand ESG finance.

46

Sustainable Growth of
Corporate Value

47

Sustainable Growth of Corporate Value
Practice capital efficiency-conscious management

Above

8.0%

Operatingmargin(%)

ROIC(%)

8.0%

8.0%

6.0%

6.0%

4.0%

4.0%

2.0%

8.0%

５.0%

Above

2024

0.0%

2.8

Invested capitalturn over
1.50

2.6

1.00

2.4

2.0%
2017

2024

2017

0.0%

５.5%

Above

6.0%
4.0%

2.0%

0.0%

Financialleverage(times)

Current assets
turnoverFixed assets
turnover

2.2

0.50

2.0

0.00

ROIC is calculated as NOPAT (operating income x (1 - effective tax rate)) / invested capital (interest-bearing debt + equity capital), with capital averaged over the period. The effective tax rate is calculated as 30.5%.

2024

10.0%

Invested capitalturnover ratio2017

ROE(%)

SG&A etc

Effective
corporate
tax rate

Financialleverage

Sales profit ratio

2024

Continuously aim for
ROE of 8.0% or more

Net sales

Operatingmargin2017(Return on
invested capital)(Return on equity)

12.0%

Return on
invested
capital

ROIC

2024

ROE

Elements ofimprovement → KPIs

Segmenting in sub-elements

Internal standards

2017

Indicator

48

Sustainable Growth of Corporate Value
Build a competitive advantage business portfolio throughstrategic cash allocation
Continuously aim for ROE of 8.0% or more
Building a competitive advantage
business portfolio

Cash generation
Operating income(¥80 bil or more)

Sale of assets(¥67 bil）

Sales ofcross-shareholdings

Creation of businesssynergies

キャッシュ配分(Expand revenue baseand non-financial value)

Establish a cyclic
investment model（Use of real estate private
placement funds/REITs)

Investment monitoring &evaluation(¥30 bil or more)(Investment review,
ROIC by business)

Utilize interestbearing debt

Shareholder return

D/E ratio 0.8 or lessContinuous and stable dividends

Cash allocation
Investments for growth ¥190 bil(Real estate development, environment & energy,
M&A)

Investment in intangible
assets ¥32 bil(Human capital, technology R&D, digitalization)

Machinery & equipment ¥3 bil

DOE 2.5% or more
Total return ratio 40% or more49

50