Results Briefing
for the Second Quarter Ended September 30, 2019

November 12, 2019

TODA CORPORATION

12

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

3

Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Issues and Initiatives
President Masanori Imai

4

1. Summary of Financial Results

Executive Manager Yushi Kikutani

51-1. Summary of Financial Results
for the Second Quarter Ended
September 30, 20196

Highlights: FY2019 1H
 Consolidated net sales: ¥235.3 billion, up 15.9% year-on-year： Consolidated net sales rose by 15.9% year-on-year to¥235.3 billion due to progress in works in hand fordomestic architectural construction and civilengineering and to increased net sales in domestic
Group companies and overseas business Operating income: ¥15.5 billion, up 50.8% year-on-year： Operating income rose by 50.8% year-on-year to ¥15.5billion due to progress in highly profitable major
construction works mainly within Japan Orders received (non-consolidated): ¥181.0 billion, down 33.0%
year-on-year： Both domestic architectural construction and domestic civilengineering orders in the government sector, as well as
domestic construction orders in the private sector,
underwent a major decrease year-on-year within Japan,
reducing overall orders received by 33.0% to ¥181.0 billion

7Summary: FY2019 1H(Billions of yen)

Apr-Sep FY2019
Apr-Sep
FY2018

Forecasts atthe beginningof the term

Actuals

Change(year onyear)

Difference(vs. forecast)

Consolidated
net sales

203.0

241.0

235.3

15.9%

-5.6

Operatingincome

10.3

11.8

15.5

50.8％

+3.7

Ordinary
income

11.8

12.8

16.9

42.6%

+4.1

Profit attributableto owners of parent

8.2

9.0

12.2

48.7%

+3.2

Orders received

270.4

202.5

181.0

-33.0%-21.4(non-consolidated)8

Main Orders Received

ArchitecturalConstructionCivilEngineering

Ordering Parties

Name of Works

Urban Renewal Association for
Shindaikumachi District

New construction work for facilities for first phase ofurban renewal works for Shindaikumachi District

FORETSEINE Co., Ltd.

New construction work in Yoyogi-Tomigaya

R&K LLC

Reconstruction plan for Dojima HotelTokyo Metropolitan Government

Reconstruction work for Tokyo Metropolitan Toshima
High School (31)Investment No. 2, Japan
Renewable Energy Corporation

Construction work for JRE Satsuma Solar Power
Plant

Mt. Hachiman, Japan Renewable
Energy Corporation

Shichinohe Towada Wind Farm project

Osaka Prefectural Government

Construction of Shirokita shaft for Neyagawa
Northern Underground RiverDAIWA HOUSE INDUSTRY Co.,Ltd.

Land readjustment project for Wadoyokocho,
Miyashiro*Honorific prefixes are omitted. Work names are abbreviations.

91-2. Details of Financial Results

10(Consolidated) Toda Group
BusinessConstruction

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.

Thai Toda Corporation Ltd.

Toda Road Co., Ltd.

Toda Vietnam Co., Ltd.

Sato Kogyo Co., Ltd.

TOBIC
2 other companies

Real Estate

12companies

2 other companies

Toda Bldg. Partners Co., Ltd.

Toda America, Inc.

Nisshin Life Co., Ltd.

PT.Toda Group Indonesia
1 other company

23companies

6companies

1 other company

Toda Finance Co., Ltd.
Toda Staff Service Co., Ltd.

OtherTowa Kanko Kaihatsu Co., Ltd.

5companies

Goto Floating Wind Power LLC.
Offshore Windfarm Construction Corp.

11

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

Non-consolidated

SG&A ratio

7.5%

20.0

7.3%

8.0%
6.8%

15.9

15.0
14.9
13.6

13.4

6.0%
14.1

12.2
10.0

4.0%

5.0

2.0%

0.0

0.0%

Sep-17Sep-2018

Sep-2019

12

(Consolidated) Balance Sheets(Billions of yen)

AssetsLiabilities and Net Assets

−27.3

−27.3

667.7
640.4
Construction-related assets +9.5
Cash and deposits+5.9
Notes and accounts
receivable – trade−45.7

Current
assets364.8

Current
assets338.8-26.0
Construction in progress
Buildings and structures
Land

Noncurrent
assets117.3
Investments
and otherassets

185.4

124.2％

+3.3
+0.5
+0.3

Noncurrent
assets+4.1

Investment securities−5.3
Retirement benefit assets −0.3

Investments
and otherassetsCurrent
liabilities
293.8+15.8

+8.7
−25.0

640.4

−24.7

Current
liabilities
270.0

-23.8
Long-term loans payable +2.3
Corporate bonds−5.0
Deferred tax liabilities−2.2

Noncurrent
liabilities
104.6

Net
assets269.1

180.0
Sep 2019

Current ratio

667.7

Short-term loans
Advances received on
uncompleted construction
contracts
Commercial papers
Notes and accounts
payable – trade

Noncurrent
liabilities
99.8

−4.8

121.5

−5.4

Mar 2019(Billions of yen)

125.5％

Net
assets270.5+1.3
Retained earnings
Valuation difference on
available for sale securities

Mar 2019
39.9％ Equity ratio

+6.1
−4.8

Mar 2019
41.8％

13

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei Stock Average(Billions of yen)

Stock prices (yen)300.0

25,00021,454250.0

21,20521,755

18,909200.0

20,000

168.7

174.7

178.6

173.3

96.1

96.7

Valuation Difference

91.1

15,000150.0
89.7

10,000

100.0

50.0

0.0

77.6

78.6

81.9

Book Value
83.5

Mar-17Mar-18Mar-19Sep-195,000014

(Consolidated) Change in Interest-Bearing Liabilities
Short-termLong-term
132.0

52.5

（Billions of yen）

125.2

Long-term
49.8

70.2

40.4

D/E ratio

75.4

49.9
79.4

Short-term

Sep-1929.8

25.4

Mar-17Mar-18Mar-19

0.45x

0.43x

0.68x

75.3

0.62x
15

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

Civil engineering

Overseas

5.0

Total
(Billions of yen)

4.0

3.6

−0.18

3.41

3.0

2.0

1.0

0.0

Civil
0.44
engineering
0.09 Overseas 0.33

Mar-18Overseas

Overseas

3.27

2.89

Civil
engineering
0.44

Civilengineering
0.26

ArchitecturalConstruction
0.07

ArchitecturalConstruction
0.06

ArchitecturalConstruction
0.02

Mar-19Sep-1916

(Consolidated) Statement of Cash Flow
(Billions of yen)
＋5.6

Cash and cash
equivalents at
beginning ofperiod
Increase in funds

96.5

Notes and accounts receivable – trade 45.7
Income before income taxes
18.1
Advances received on uncompleted
construction contracts
8.7
Notes and accounts payable – trade −20.7
Costs on uncompleted construction
contracts−9.5

Cash and cash
equivalents at
end of period

102.2

Operating CF
26.2

Decrease in funds(Mar 31, 2019)

Investing CF−7.3

Financing CF-13.1

Loans payable
Dividends paidInvestment securities
Property, plant and equipment(Sep 30, 2019)
−6.8
−6.1

−1.4
−5.0

17

1-3. Performance Forecasts

18

Forecasts for FY2019 (Year Ending March 31, 2020)(Billions of yen)

FY2019FY2018
Forecasts

Change(year-on-year)

Consolidated net
sales

510.4

520.0

1.9%

9.5

Operatingincome

34.5

30.7

−11.1％−3.8

Ordinary income

37.4

32.8

−12.5％−4.6

Profit attributable toowners of the parent

25.5

22.8

−10.9％−2.7

Orders received(Non-consolidated)

539.8

462.0

−14.4%−77.8
19

(Non-consolidated) Forecasts for the Construction Business(Billions of yen)Orders Received forConstruction
2.2
155.8

Net Sales of Completed
Construction Contracts

Overseas

7.0
115.0

Civil
Engineering(%)
Gross Profit Margin on Completed
Construction Contracts

Overseas
4.5

6.0

99.0

117.5

Civil
Engineering

Civil
Engineering
17.7
Civil
Engineering
14.5
Total
12.8
Total
12.2

381.7

FY2018340.0

FY2019(forecast)Architectural
Construction

355.0

340.0

FY2018FY2019(forecast)Architectural
Construction

Architectural
Construction
12.5

FY2018Architectural
Construction
11.5

FY2019(forecast)20

Non-consolidated Forecasts for FY2019
Amount (billions of yen)

Profitability (%)

Net sales

471.5

Gross profit

60.0

12.7

Profits in the construction
business

56.4

12.2

[Domestic architectural construction][39.0][11.5][Domestic civil engineering][17.0][14.5]

[0.4]

[6.7]

Profits in investment &development business and other

3.6

45.0

Selling, general andadministrative expenses

31.5

Operating income

28.5

6.0

Ordinary income

30.6

6.5

Income taxes

10.0

Profit21.6[Overseas]

4.6

21

22

2. Management Plan
Progress Status
President Masanori Imai

23Positioning of Medium-term Management Plan 2019Toda Group Global Vision

A corporate group that makes yoursuccess possible

Establish a foundation to realize the global vision
FY2015 – FY2016

FY2017 – FY2019

Phase I

Phase II

Establishinggrowthfoundation

Building profit base forcontinuous growth

Continuousgrowth(resource shift and new valuecreation)(tenacity, diversity)(business, mindsetreform)

FY2020–24

2-1. Business/Performance
Forecast

25

Net Sales and Operating Income by BusinessNo change from the initial forecast
Upper: Net sales
Lower: Operating income

FY2018 Actuals

Domestic architectural
construction

355.0Domestic civilengineering

99.0

Investment &development + new fields

10.1

Domestic Group
companies

45.3

24.7
11.0
1.0
2.4
−4.1

Total

FY2019Forecast
340.0

7.0%

18.3

11.2%

9.8

5.4%

1.1

8.3%

1.9

12.3%

−0.4

510.4

520.0

34.5 6.8%

30.7

0.4
36.0

3.8%

21.0
－

6.5
8.5

49.5
5.4%

16.5
115.0

8.9
10.7％

Medium-term targets（FY2019）

340.0

117.5

17.7

Overseas(Billions of yen)

1.6
22.0

－

0.0

500.0
5.9%

*Percentages indicate operating income ratios. Consolidated eliminations are reflected in totals.

25.0
26

Change in Construction Work Carried Forward
Continued high level results due toorders received for major civil engineering works
Domestic Architectural Construction

Domestic Civil Engineering

507.4

250.8

454.3

459.7

229.4
(Billions of yen)

177.1

Sep-17

Sep-18

Sep-19Sep-17

Sep-18

Sep-1927

Construction Work Carried Forward byConstruction Category
Deepening main key fields by developing proprietary technology
Domestic Architectural Construction (%)
Accommodations
5.9

Domestic Civil Engineering (%)

Other 2.0Tunnels

Warehousing anddistribution 6.0

22.3
Offices
24.6

Production
facilities
13.0

Other

3.4

Construction
Work Carried
Forward¥454.3 billion(Sep 30, FY2019)

Soil and water
Conservation 2.3
Healthcare andwelfare
18.5

Housing
17.4

Other
29.7

Land development 8.7

Redevelopment

14.0

Education andresearch
12.6

Construction
Work Carried
Forward¥250.8 billion(Sep 30, FY2019)

Water andsewage
11.4
Other

15.0

Roads
31.8

Railways
16.2
Shield16.5

Bridges andelevated bridges

5.6

Main key fields of Medium-term Management Plan
Hospitals and schools

High value added offices

Mountain tunnels and largescale infrastructure

Lot development

28

Shareholder Returns
Total shareholder returns・ total return ratio
Total purchase of treasury stock

10.0

Total annual dividends

Total return ratio

40

34.2
29.6
23.8

2.50

24.0
0.0

6.0

30

Mid-term
target:approx. 30%

20（％）(Billions of yen)

8.0

0.01
10

4.0
6.1
2.0

6.1

6.7

4.60
(10)

0.0

FY2016FY2017FY2018FY2019(forecast)

Annual dividends
per share

¥15.0

¥20.0

¥20.0

¥22.0

*Total return ratios for FY2016 are calculated by multiplying profit before income taxes by the effective statutory tax rate.
*Total purchase of treasury stock for FY2017 includes acquisition amount related to Toda Mirai Foundation (¥2,490 million).
* The total return ratio for FY2019 does not take into account the purchase of treasury stock.

29

2-2. Issues and Initiatives(Toward the Next Medium-term Management Plan)

30

Awareness of Issues
CurrentPursuing safety and productivity



Maintaining the foundation forstrategic business and implementing
the strategic business
Creating global-level business
opportunitiesMid- toLong-term

Diversifying business and securing
return on investment

Improving corporate value throughESG management

Achieving sustainable growth31

Setting Up the Globalization Promotion Office（Sep 2019）

Organization building and human resource
development enabling us to be globally competitive
Human resource
committee
Languages,Employment, Training

Business
Diversification
restructuringcommittee
committee
zTechnology,

Procurement,
Indirect business,
Regulations

Cross-industry
cooperation
Overseas businessstructure
Innovation

Three expert committees have been set up in
the Globalization Promotion Office to study
respective themes and take measures

 Promoting anenhancement of value andcompetitive ability bycross-functionallyoverlooking management
resources Building a global-level
management structure• Official company language,
and recruiting/training staff• Current technology,
procurement, and operation• Company rules andmanagement system• Operation bases, innovation,
32etc.

Setting Up International Branches（Sep 2019）
Deepening collaboration within the organization and strengthening
operations/governance※NewInternational
branches

Group globalization (Strengtheningstrategies/governance)
Overseas
Division※ClosedBranch globalization）(Business collaboration

Building
Construction
GroupCivilEngineeringGroup
AdministrativeGroup(DomesticBranches)

・・・

President

33

Investment Plan Progress Status
Promoting initiatives in new areas to diversify business
FY2019 investment breakdown (%)¥78.0 billion
FY2019Forecast

11.3

Approximately
34.0 billion yen

Technologyand ICT
7.6(Initial forecast: ¥31.0 billion)

17.7
FY2018Actuals
FY2017
Actuals¥32.5 billion

New fields
33.0

Investment &development
59.4
71.0

¥11.3 billion

Total for period of the plan
（FY2017 to FY2019）［Breakdown］
Investment &development
New fields[FY2017] [FY2018] [FY2019] [Total] *1 Including acquisition of Sato6.6
2.6(Energy, new business, etc.)
Technology & ICT (Research centers, systems, etc.) 2.0(Real estate, etc.)*Outer ring (green): breakdown ininitial forecast

21.0
47.9
20.2
acquisition of serviced
(*1)
(*2)
10.0
24.2 *2 Including
11.2
apartments in Jakarta and
1.4
6.0
2.6
accommodation facility in Kyoto
Kogyo Co., Ltd.

34

Investments in the First Half of FY2019*Purchased two towers

Serviced Apartments in Jakarta
 Securing stable income andpromoting redevelopment in thefuture Establishing a presence of Toda
Corporation in Indonesia

Accommodation facility in Kyoto(Riverte Kyoto Kamogawa) Promotion of in diversification of theTODA Group (Towa Kanko kaihatsuCo., Ltd.) Active participation of various humanresources through in-house
recruitment of facility manager
35

Promotion of Issue-Solution Business

Improving value ofsociety and customers

Contributing to sustainable growth of society, customers,
and the Group
Energy problems(Creating a sustainable society)

ClimatechangeAging Urbanizationsociety
Poverty
Water/foodshortages
Information
securityCompliance

Solving social issues

Scale of net
Profitabilitysales

Productivity
Employment

Profit ratio

Capital efficiency

Stock price,
marketcapitalization

Improving economic value

36Developing Branding Activities
Company-wide activity to achieve
stakeholders’ success
Providing
Excitement & expectation
value
Consultation at hospitals
Global Vision

Significancetargets

A corporate group that makes yoursuccess possible

Company

Achievementtargets

GroupsBranches
Departments

Individuals

Actiontargets

Management strategy roadmap
Medium-term Management PlanThree-year plan/policies
Fiscal-year plan
Departments’ implementation
plan
Construction management
policies / comprehensive workplans
Target management sheet

Management policy
Corporate Action Charter & President’s
onsite briefing
Corporate Code of Conduct

Va r i o u sbusinessactivities& schools

TrustToda Brand

For customer satisfaction, work to be proud of, and the future ofhumans and the Earth（OUTPUT）

Customers

Traditions
Dignity Stable finances

Growth Desire to invest
DreamsVisionGlobal businessdevelopment

Shareholders &Investors

Safety & Productivity
Using the latest technology andmachinery
Partners
Higher time-based priceDiverse working styles

Social contribution
Compliance with ESG・SDGs
Actively dealing withenvironment & energy issues Local society

ESG Job satisfaction Warmly treating people withrespectSDGs
Students & Job
Capable of self-growthAble to tackle
challenges at work Strong loyalty
Taking pride in work Become enthusiastic

Seekers37

Toward Sustainable Growth
Consolidated
net sales(Billions of yen)
7.1

700.0

6.8

5.9

Operatingincome ratio


（％）
8.0

5.9
6.0

600.0

Target: 5.0
500.0
510.4
400.0
422.7


4.0

520.0
Target: 500.0

429.0

2.0
0.0

300.0

Sustainablegrowth

200.0

2024:
New head officebuilding completed100.0

▲ 2.0
▲ 4.0
▲ 6.0

0.0

1617 18 19
Current midterm plan

20

Creating a businesspromotion structure that
continuouslycreates/provides value,
taking advantage of theshift to the VUCA era
Implementing
diversification andmaintaining a healthy
portfolio, in response to
the changes to profit
structure due to thereconstruction of thehead office building

Taking construction to
the highest level
Taking on new areas

21 22 23 24
Next mid-term plan
(Five-year plan)38

A corporate group that makes
your success possible

39