Results Briefing
for the Second Quarter Ended September 30, 2016

November 14, 2016

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

2Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Issues and Initiatives
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

41-1. Summary of Financial Results
for the First Half5

Summary:FY2016 1H(Billions of yen)
Apr-Sep
FY2015

Apr-Sep FY2016
Forecasts atthe beginningof the term

Actuals(year on year)

Difference(vs. forecast)

ChangeConsolidated
net sales

218.4

205.0

204.1

-6.6%

-0.8

Operatingincome

10.9

6.5

12.1

10.4％

5.6

Ordinary
income

11.9

7.5

13.1

9.7%

5.6

Profit attributable11.3

6.5

11.4

1.1%

4.9

167.4

180.0

204.6

22.2%

24.6

to owners of parentOrders received(non-consolidated)

6Main Orders Received
Ordering Parties
ArchitecturalConstruction

CivilEngineering

Name of Works

Narita International Medical
City Organization

New construction of UHW Narita Hospital,
International University of Health And WelfareTokyo Metropolitan Housing
Supply Corporation

Kosha Heim Mukaihara (3rd Phase) construction,
etc.

Tome City, Miyagi Prefecture

Tome Municipal Maiya Hospital construction

Kyoto University of ForeignStudies

Renovation, etc. of Block 4 of Kyoto University ofForeign Studies

Kyoritsu Estate Co., Ltd.

New construction of Dormy Inn Hon-hachinohe(tentative name)West Nippon Expressway
Company Limited

Yuasa Gobo Doro Iseki tunnel work

Bureau of Waterworks, Tokyo
Metropolitan Government

Construction work, etc. of reservoir No.2 ofHaijima Water Station

Yamato City, Kanagawa
Prefecture

Construction work, etc. of main storm rainwaterdrainage line for FY2016*Honorific prefixes are omitted. Work names are abbreviations.

7

Main Works Completed (Architectural Construction)*Project names are abbreviation

Kenseikai
New plan for Tachikawa Sogo Hospital

Construction work for Dazaifu City’snew gymnasium and composite facility,
Dazaifu City Fukuoka Prefecture8

Main Works Completed (Civil Engineering)

Japan National Highway 45,
Yamada No.1 tunnel work
Tohoku Regional Development Bureau,
Ministry of Land, Infrastructure and Transport

Upgrading of Hirama regulating reservoir
Water and Wastewater Works Bureau,
Kawasaki City, Kanagawa Prefecture91-2. Details of Financial Results

10(Consolidated) Toda Group
Business

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/AChiyoda Kenkou Co., Ltd.

Toda Construction (Shanghai) Co., Ltd.

Construction

Architectural
Construction

15companies

8companies

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

CivilEngineering
Real Estate

1company

Toda Road Co., Ltd.

Toda Bldg. Partners Co., Ltd.

ABTD, inc.

Toda America, Inc.

2
companies

Toda Finance Co., Ltd.
Toda Staff Service Co., Ltd.
Other
Towa Kanko Kaihatsu Co., Ltd.

4companies

Goto Floating Wind Power LLC.

11

(Consolidated) Summary of Group Performance
Apr-Sep FY2016

Toda Corporation％

Billions of yen
Net sales

192.9

Gross profit

23.4

Selling, general andadministrative expenses

Operating incomeNon-operating income

Ordinary income

Subsidiaries total

11.5
11.8

1.7

6.2

0.2

9.4

0.3

25.0

1.5

12.1

1.9

13.1(0.0)(0.0)

Profit before income
taxes

12.7

0.3

13.0

Income taxes

1.4

0.1

1.6

ProfitProfit attributable to ownersof parent

11.2

5.8

0.1

1.06
12.3

1.07

5.9

1.02

6.4

1.03

5.6

1.02

0.9(0.0)

Extraordinary income

Ratio ofconsolidated
to nonconsolidated

12.8

0.0
6.6％

204.1

1.4

0.8
12.7％

18.2
12.1

Consolidated

1.1

11.4
11.4

12(Consolidated) Balance Sheets(Billions of yen)

Assets548.7

Liabilities and Net Assets
548.7

-43.7

-43.7

504.9

504.9
Current

Current
assets311.7

Current
assets-38.7
Cash and deposits-6.1
Construction related assets -50.1
Securities
19.9

liabilities

268.0

Noncurrent
assets＋3.3

78.4
Investments
and otherassets

158.5

Construction related liabilities-44.2
Provision for loss on
construction contracts ＋1.0
Short-term loans+1.0

liabilities

-40.2

227.8

Long-term loans-2.7
Deferred tax liabilities -2.7

Noncurrent

97.5

272.9Noncurrent(Billions of yen)Noncurrent

liabilities

assets

103.2

-5.6

Net assets＋2.1

Current

liabilities

81.7

-8.3
Investment securities -8.0
(Valuation difference
reduction -8.6)

Mar
2016
16/3
116.3％

Investments
and otherassets

150.1

Sep
2016
16/9
Current ratio

177.4

119.8％

Retained earnings＋8.3
Valuation difference on
available-for-salesecurities
-5.9

Mar
2016
16/3
31.9％

Net assets

179.5
Sep
2016
16/9

Equity ratio

35.1％
13

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei Stock Average(Billions of yen)

Stock prices（yen）

19,206250

20,00016,758200

150

14,827

16,449185.5

15,000
154.8

147.5

Valuation

110.3
79.2

70.4

146.7

100

10,000difference
70.6
5,000

50

0

77.1

75.2

75.7

Book value
76.2

Mar 2014

Mar 2015

Mar 2016

Sep 2016

014

(Consolidated) Change in Interest-Bearing Liabilities
Short-termLong-term, corporate bonds

79.7
65.5

(Billions of yen)

77.9

66.3

13.2

45.1

42.3

32.5

34.5

35.6

Mar 2014

Mar 2015

Mar 2016

Sep 2016

14.7％
0.48x

0.37x

0.45x

0.43x

33.7

52.3

D/E Ratio

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

Civil Engineering(Billions of yen)

15.5
2.1

7.6
13.4

2.6
[系列名]

Mar 2014

＋1.0

[系列名]

2.4

3.4

5.0

1.4
1.0

2.9
0.5

Mar 2015

Mar 2016

Sep 2016
16

(Consolidated) Statement of Cash Flow
(Billions of yen)
＋13.8

68.5

54.6

Income before income taxes
13.0
Notes and accounts receivable – trade
54.2
Costs on uncompleted construction contracts -4.2
Notes and accounts payable -trade-44.1

Cash and cash
equivalents
at beginning ofperiod

Cash and cash
equivalentsat end ofperiod

Increase in funds＋24.4
Operating CF

Decrease in funds

Investing CF

Financing CF

-5.0

-4.8
Sep 30, 2016

Mar 31, 2016
Investment securities-0.8
Property, plant and equipment -4.1

Loans
-1.7
Dividends paid -3.0

17

1-3. Performance Forecasts

18

Forecasts for FY2016 (Year Ending March 31, 2017)

FY2016FY2015
Forecasts（Billions of yen)

Change(year-on-year)

Consolidated net
sales

492.6

430.0

-12.7%-62.6

Operating income

21.6

20.0

-7.5％

-1.6

Ordinary income

23.7

22.0

-7.3％

-1.7

Profit attributable toowners of parent

20.0

19.0

-5.2％-1.0

Orders received(non-consolidated)

412.8

440.0

＋6.6%

＋27.1

19

(Non-consolidated) Forecasts for the Construction Business（Billions of yen, including overseas)

Orders Received forConstruction
412.8
103.6

Net Sales of Completed
Construction Contracts

Gross Profit Margin on Completed
Construction Contracts

455.5

440.0

93.2

90.0
Civil
Engineering

（％）
400.0
100.0

Architectural

Civil
Engineering

Construction

9.4

309.3

350.0

Architectural
Construction

11.2Total
10.6

9.4

362.2
300.0

Architectural
Construction

9.4CivilEngin
eering[値]

FY2015FY2016(forecast)

FY2015FY2016(forecast)

FY2015FY2016(forecast)20

Non-consolidated Forecasts for FY2016
Amount（Billions of yen）

Profitability（％）

Net sales

404.5

Gross profit

44.0

10.9

Profits in the construction
business

42.5

10.6

[33.5][11.2][Civil engineering]

[9.0]

[9.0]

Profits in the real estatebusiness

1.5

33.3

Selling, general andadministrative expenses

24.5

Operating income

19.5

4.8

Ordinary income

21.4

5.3

[Architectural construction]

Extraordinary income
Profit

0.0
18.8

4.6
21

2. Issues and Initiatives

President Masanori Imai22

2-1. Forecast by Business23

Net Sales by Business(Strategic businesses)
Group companies(Japan)Overseas
Investment &development
Civilengineering(Japan)Architecturalconstruction(Japan)¥430.0 billion¥492.6 billion

34.5
13.8
7.9

33.0
10.0
4.5

92.0

¥480.0 billion

40.0
20.0
5.0

100.0

99.2

361.4

FY2015*Figures include consolidated eliminations.

298.8

FY2016 (forecast)

330.0

FY2017[Medium-term goal]24

Changes in Operating Income (vs. Initial Forecast)Achievement of the medium term goal of¥20.0 billion is within reach(Strategic businesses)
Civil
Architecturalengineering
construction(Japan)(Japan)Medium-term goal
(FY2017)¥20.0 billion［4.2％］(Billions of yen)

18.5

Investment &development

OverseasGroupcompanies(Japan)20.0［4.7％］［4.2％］

Initial forecast*[ ] shows operating income ratio.

Revised forecast
25

Operating Income(Domestic Construction Business)
Architectural construction(Japan)17.9
Medium-termgoal¥14.0 billion［5.0％］

Revised forecast

Civil engineering (Japan)

16.9［5.7％］

14.0(billion yen)

［4.5％］

Medium-termgoal¥4.5billion

4.03.7［4.0％］FY2015Initial forecast

FY2016 (forecast)*Figures do not include consolidated eliminations.
[ ] shows operating income ratio.

FY2015［4.1％］

3.4［3.5％］FY2016 (forecast)

26

Operating Income(Strategic Businesses)
Investment &development

Initial forecast
Revised forecast

Group companies（Japan）

Overseas(Billion yen)

Medium-term
goal¥0.5 billion

Medium-term
goal¥0.2 billion

1.40.2［4.1％］［6.1％］-0.7
0.1［2.2％］-0.0
FY2015FY2016(forecast)-1.3-1.3

FY2015FY2016(forecast)*Figures do not include consolidated eliminations.
[ ] shows operating income ratio.

1.1

Medium-term
goal¥0.8 billion［3.2％］

0.6［1.9％］FY2015FY2016(forecast)27

Recognition of Issues
Domestic Construction
Business

Strategic businesses•Promote enhancement ofvalues and strengths thatenables differentiation.

•Initiatives for profitability
enhancement are still
halfway through.

•While profitability of someprojects worsened, the rest of
the projects proceeded wellin general.

•Steady progress indevelopment of businesspromotion structure as wellas investment policy anddirection.

Improvement and establishment ofproductivity and added values282-2. Direction of Initiatives

29

Process for Achieving Continuous Growth
Steady construction
investment

Intensifiedcompetition

Decline ininvestment

Labor productivity = Increased added value
Make strategic
businesses profitable(Change in construction
investment)(Net sales)

Investment development, add manpoweroverseas and at group companies

430.0 billion yen

Acquire values throughdifferentiation
Enhance competitiveness ofthe Architectural
Construction business377.9 billion yen

FY2014Raise completed
construction rate
Increase the gross profit
amountFY2017

FY2020 onwards30Innovation in Construction Technologies for
improving Productivity
Dismantling

Undergroundwork

Above-ground
work

TO-ZERO system(dismantling system)

Improvement ofconstruction efficiency withvertical conveyor excavatedsoil, etc.

Improvement of construction
efficiency using robot arms

中詰材

Construction Innovation

Construction
management

Construction
system we aspireto achieve

IoT-based production
controlling system

横矢板
親杭

プレキャスト板

背面地盤

連結金物

前面地盤

挿入杭

Automated lowering external
curing scaffolding

New short-strut-less earth retaining

Automated steel
Reinforcing steel column plumbing
unit fitting robotsystem

Remote control ofPower assist heavy machinery

Hydrogen gas cutting
Underground wall rapid setting
technology (Award-Para method)Work management using
tablet terminals

Toda-type automatedconstruction system

Rolling compaction control systemusing GNSS
Work management using
wearable terminals

Fully automatic control leveling
Cutter construction method

Underground carrier craneFreezing method

Pre-construction technology
for underground wall(SLIT method)

Promoting use of PCa

Aerial image information
using drone

Slope face shaping guiding system
Automated conveyance system

Starter BIM model supply

Integrated construction
work management systemImprovement of Labor Productivity
Labor productivity (non-consolidated basis)

Medium-termgoal¥13.2 million

14.55

14.10

11.54

(million yen)

Further improvementin net sales and profits
per employee throughenergy saving andlabor saving
FY2014FY2015FY2016(forecast)*Labor productivity = Operating income/employee (Net sales/employee × Operating income ratio) +Overall labor cost/employee32

Case Study:
New Construction of MFLP Fukuoka Sue*Completion on October 31, 2016

Effective utilization of the plot of ourmachinery and equipment center
Achieved 33% productivity
improvement through complete
front loading.
(design work, workshop and partnering
company operations)33

Strengthening of Strategic Businesses
Promoting flexible use of human resourcesreflecting business expansion
Investment &development

Overseas

Promoting Kyobashi 1chome project

Expansion of overseas
civil engineering works

Expansion of eachcompany’s businessdomainEnhance the structureof the Brazilian andSoutheast Asia
Regional Head Offices

Promotion of total
coordination in theconstruction life
cycle

Commercialization of
floating offshore windturbine generator
Acquisition, retentionof new properties
Effective utilization ofreal estateGroup companies(Japan)Transferring human resources from the Domestic
Construction Business (create new workforce)34

Capital Efficiency, Shareholder Returns
ROE (return on equity)

Dividend per share, payout ratio
Dividend per share

11.3

10.8

(yen, ）%（％）

8.8
8% or more in
the long term

FY2014FY2015FY2016(forecast)

19.4

Medium-term goal:
20% to 30%

15.4

Payout ratio

15.3

10.0

12.0

7.0

FY2014FY2015FY2016(forecast)
35

Promoting Social Contribution Activities
Top rating in climatechange mitigation
measuresPhoto: Hoichi Nishiyama

Floating offshore windturbine generator

Fuel-cell boat

At The Climate A List 2016, 193
companies around the world including
22 from Japan were certified as
especially outstanding companies inclimate change mitigation measures
for their activities such as CO2
emission reduction.
36

For the Next Leap
Evolve initiatives to realize continuous growth
FY2015FY2016

No. 1 in Productivity
Foundation forGrowth

Preparing for theleap
Strengthen implementation ofproductivity initiatives
Promote strategic businesses

FY2017
Consolidated net sales ¥480.0 bln
Operating income¥20.0 bln
[4.2％]
Labor productivity¥13.20 mil

Consolidated net sales ¥480.0 bln
Operating income¥17.0 bln
[3.5%]
Labor productivity¥13.00 mil

FY2018 onwards(revised earnings targets:formulated in April 2016)(initial earnings targets:formulated in April 2015)

Deployment ofdifferentiation
technology
Business investment
37

A corporate group that makes
Your success possible

38