FINANCIAL STATEMENTS 2022
Year ended March 31, 2022

Independent Auditor’s Report
The Board of Directors
Toda Corporation
OpinionWe have audited the accompanying consolidated financial statements of Toda Corporation and its consolidated
subsidiaries (“the Group”), which comprise the consolidated balance sheet as of March 31, 2022, and theconsolidated statement of income, consolidated statement of comprehensive income, consolidated statement ofchanges in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including a summary of significant accounting policies, all expressed in Japanese yen.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Group as of March 31, 2022, and its consolidated financial performanceand its consolidated cash flows for the year then ended in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the provisionsof the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities as auditors.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our auditof the consolidated financial statements of the current period. These matters were addressed in the context of ouraudit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do notprovide a separate opinion on these matters.
Estimates of total construction costs
Key Audit Matters Description
In the building construction and civil engineering,etc., which are the Group's principal business, theGroup has the performance obligations to constructbuildings or structures, etc. and deliver the outcomesto customers based on construction contracts as
described in Note 2.8. The Group has applied themethod based on the percentage of costs incurred by
the end of each reporting period to the total expected
costs as a method of estimating the progress ofconstruction works to the satisfaction of performanceobligations. The portion of work completed by themethod based on the percentage of costs were429,888 million yen. In addition, the Group records aprovision for losses on construction contracts thathave not yet been delivered, for which losses are
expected to be incurred as of the end of the current
fiscal year and for which the amount can bereasonably estimated as described in Note 2.6).
The method based on the percentage of costs is used
to record portion of work completed and provision forlosses on construction contracts, which is affected byestimates of total construction costs. Estimating total
construction costs is highly individualized for eachcontract, and facts that become known after the startof the construction contract may exist or conditions at
the site may change, making timely and appropriate

How the Key Audit Matters Were
Addressed in the Audit
To evaluate the reasonableness of estimates of total
construction costs, we mainly performed thefollowing audit procedures.
・ We understood the revenue and expenditure
management system and the construction progress
management system for each unit of construction
revenue recognition developed by the Group, andevaluated the related internal controls, including theapproval of the execution budget at the time offormulation and update, which is the basis for
estimating total construction costs.
・ As for the construction costs in the unit ofconstruction revenue recognition selected based on
certain criteria, we examined whether the total
construction costs reflect the actual situation by
examining whether there is any abnormality in thestatus of cost accrual and examining theappropriateness of deviation from the execution
budget.
・We examined the total construction costs to see if
any unusual adjustment items were included in the
total construction costs.
・By inspecting the process control materials andasking questions, we identified important estimation

review of total construction costs complex. As aresult, estimates of total construction costs are highly
uncertain and management's judgment has asignificant impact.
Based on the above, we have determined estimatesof total construction costs to be a key audit matter.

factors related to specifications, construction period,
etc. , and evaluated the manager’s judgment regarding
the effects of uncertainty in the estimation factors.
・ As for particularly important projects, we
performed on-site observations and additionalquestioning to examine whether the progress ofconstruction was consistent with the estimate of total
construction costs and the progress toward
completion of construction.

Impairment of fixed assets related to the floating offshore wind power generation project
Key Audit Matters Description
As for the floating offshore wind power generation
project, in which the Group has made and plans tomake large investment as a new business area, thebusiness market itself is new and uncertain, and there
is a risk that impairment of fixed assets will not beproperly assessed depending on achievement of thebusiness plan.
The Offshore Goto Wind Farm Project in Nagasaki
Prefecture is preparing to construct a floating
offshore wind farm after the consortium represented
by the Group was selected as the operator after apublic call for proposals based on the Law
Concerning the Promotion of the Utilization of the
Sea Area for the Development of Offshore
Renewable Energy Power Generation Facilities. The
recoverable amount calculated based on the future
use value of facilities under construction fell below
the book value, therefore, an impairment loss of 312
million yen was recorded as an extraordinary loss as
described in Note 9.8).
The estimates of future value in use are subject touncertainty and require management's judgment,
therefore, we have determined this matter to be a key
audit matter.

How the Key Audit Matters
Were Addressed in the Audit
In our audit of the impairment of fixed assets related
to the floating offshore wind power generation
project , we principally performed the following audit
procedures.
・We examined the valuation methods used in thecalculation of value in use.
・We compared the projected duration of future cash
flows in the estimates of future use with theremaining useful life of the related assets.
・As for future cash flows in the estimates of future
use , we examined consistency with the underlying
business plan approved by the management andobservable used market data.
・ We discussed with the management the major
components included in the business plan estimates,
and reviewed the management's assessment of future
uncertainties.
・We evaluated the appropriateness of the method for
calculating the discount rate based on the valuation
items covered and the accounting standard
requirements.

Other Information
The other information comprises the information included in the disclosure document that contains audited
consolidated financial statements but does not include the consolidated financial statements and our auditor’sreport thereon.
We have concluded that the other information does not exist. Accordingly, we have not performed any work
related to the other information.
Responsibilities of Management and Corporate auditors and the board of corporate auditors for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with accounting principles generally accepted in Japan, and for designing and operating suchinternal control as management determines is necessary to enable the preparation and fair presentation of theconsolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance withaccounting principles generally accepted in Japan.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ execution ofduties relating to the design and operating effectiveness of the controls over the Group’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks. The procedures selected
depend on the auditor’s judgement. In addition, we obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the consolidated financial statements are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation,
structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with corporate auditors and the board of corporate auditors regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we have compliedwith relevant ethical requirements regarding independence, and communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with corporate auditors and the board of corporate auditors, we determine thosematters that were of the most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determinethat a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to bedisclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for theconvenience of readers, and, in our opinion, the accompanying consolidated financial statements have been
properly translated on the basis described in Note 1.

SEINAN AUDIT CORPORATION
Minato-ku, Tokyo, Japan
June 29, 2022

Toshio Saito
Representative Partner
Engagement Partner
Certified Public Accountant

Daisuke Suzuki
Representative Partner
Engagement Partner
Certified Public Accountant

Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by the Company
and SEINAN AUDIT CORPORATION.

Independent Auditor’s Report
The Board of Directors
Toda Corporation
OpinionWe have audited the accompanying non-consolidated financial statements of Toda Corporation (“the Company”),
which comprise the non-consolidated balance sheet as of March 31, 2022, and the non-consolidated statementof income and non-consolidated statement of changes in equity for the year then ended, and notes to the nonconsolidated financial statements, including a summary of significant accounting policies, all expressed inJapanese yen.
In our opinion, the accompanying non-consolidated financial statements present fairly, in all material respects,
the non-consolidated financial position of the Company as of March 31, 2022, and its non-consolidated financial
performance for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the NonConsolidated Financial Statements section of our report. We are independent of the Company in accordance withthe provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethical responsibilities
as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our auditof the non-consolidated financial statements of the current period. These matters were addressed in the context
of our audit of the non-consolidated financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
《Estimates of total construction costs》
The description is omitted because the contents are the same as key audit matters (estimates of total construction
costs) stated in the Independent Auditor’s report of the consolidated financial statements.
《Impairment of fixed assets related to the floating offshore wind power generation project》
The description is omitted because the contents are the same as key audit matters (Impairment of fixed assets
related to the floating offshore wind power generation project) stated in the Independent Auditor’s report of theconsolidated financial statements.
Other Information
The other information comprises the information included in the disclosure document that contains audited nonconsolidated financial statements but does not include the non-consolidated financial statements and our
auditor’s report thereon.
We have concluded that the other information does not exist. Accordingly, we have not performed any work
related to the other information.
Responsibilities of Management and Corporate auditors and the board of corporate auditors for the NonConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these non-consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for designing and operatingsuch internal control as management determines is necessary to enable the preparation and fair presentation of
the non-consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the non-consolidated financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordancewith accounting principles generally accepted in Japan.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ execution ofduties relating to the design and operating effectiveness of the controls over the Company’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Non-Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the non-consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these non-consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the non-consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks. The procedures selected
depend on the auditor’s judgement. In addition, we obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
non-consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the non-consolidated financial statements arein accordance with accounting principles generally accepted in Japan, as well as the overall presentation,
structure and content of the non-consolidated financial statements, including the disclosures, and whether the
non-consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with corporate auditors and the board of corporate auditors regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we have compliedwith relevant ethical requirements regarding independence, and communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with corporate auditors and the board of corporate auditors, we determine thosematters that were of the most significance in the audit of the non-consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determinethat a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
•

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is required tobe disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Convenience Translation
We have reviewed the translation of these non-consolidated financial statements into U.S. dollars, presented
for the convenience of readers, and, in our opinion, the accompanying non-consolidated financial statements
have been properly translated on the basis described in Note 1.

SEINAN AUDIT CORPORATION
Minato-ku, Tokyo, Japan
June 29, 2022

Toshio Saito
Representative Partner
Engagement Partner
Certified Public Accountant

Daisuke Suzuki
Representative Partner
Engagement Partner
Certified Public Accountant

Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by the Company
and SEINAN AUDIT CORPORATION.

Consolidated Balance Sheets
Toda Corporation and consolidated Subsidiaries - As of March 31, 2021 and 2022
Thousands of
U.S. dollars

Millions of yen
2021

2022

2022

95,037¥ 120,538$ 984,869

Notes and accounts receivable - trade (Note 8.1), 14 and 22)

209,347

208,892

1,706,778

Short-term investment securities (Notes 14 and 15)

10,10010,30084,157

Real estate for sale (Notes 8.10))

11,0808,301

67,831

Costs on uncompleted construction contracts (Note 8.9))

11,0109,680

79,099Other inventories

8,031

5,124

41,868Other

29,78824,887203,347

Allowance for doubtful accounts(1,248)(1,188)(9,713)

Total current assets

373,147

386,536

3,158,238

Buildings and structures, net (Notes 8.3), 5) and 10))

40,552

47,912

391,470

Machinery, vehicles, tools, furniture and fixtures, net (Notes 8.3))

6,119

11,01990,032Land (Notes 8.5), 8) and 10))

86,49387,652

716,171

83

59

489

11,622

15,294

124,969

144,871

161,938

1,323,133

608

701

5,730

Other (Notes 8.3))

8,876

11,25591,962

Total intangible assets

9,484

11,956

97,692

Investment securities (Notes 8.4), 5) , 14 and 15)

200,290

192,650

1,574,068

Long-term loans receivable (Notes 8.5) and 14)

842

817

6,680

1,966

2,129

17,395

637

677

5,537

Other

4,744

4,585

37,463

Allowance for doubtful accounts

(194)

(91)

(748)

Total investments and other assets

208,285

200,768

1,640,396

362,642374,663

3,061,222¥ 735,789¥ 761,199$ 6,219,461

ASSETS
Current assets:
Cash and deposits (Notes 12 and 14)¥

Noncurrent assets:
Property, plant and equipment: (Notes 8.2), 20 and 21)

Lease assets, net
Construction in progress
Total property, plant and equipment

Intangible assets:
Goodwill

Investments and other assets:

Net defined benefit assets (Note 17)
Deferred tax assets (Note 18)

Total noncurrent assets

Total assets

TODA CORPORATION FINANCIAL STATEMENTS 2022

1

Thousands of
U.S. dollars

Millions of yen
2021

2022

2022

LIABILITIESCurrent liabilities:
97,728$ 798,500

Short-term loans payable (Note 14)

Notes and accounts payable - trade (Note 14)

48,29759,969489,988

Commercial papers-liabilities (Note 14)

20,00020,000163,412Current portion of bonds payable (Note 14)¥ 114,000¥-

15,190124,111

Income taxes payable (Note 14)

8,525

6,175

50,456

Advances received on uncompleted construction contracts (Note 8.1) and 22)

27,77928,369231,795

Provision for bonuses

6,957

6,071

49,608Provision for warranties for completed construction

3,641

3,819

31,206

Provision for loss on construction contracts (Note 8.9))

2,753

2,666

21,782

Deposits received

32,71738,465314,288

Other

17,00920,660168,807

Total current liabilities

281,681299,116

2,443,957

Bonds payable (Note 14)

50,10045,245

369,678

Long-term loans payable (Note 14)

32,64338,991

318,583

Deferred tax liabilities (Note 18)

24,496

22,690185,395

Deferred tax liabilities for land revaluation (Note 18)

6,389

6,124

50,043

Provision for directors' retirement benefits

205

239

1,959

Provision for stock payments for directors

236

240

1,966

Provision for loss on liquidation of subsidiaries and affiliates

28

1,193

9,754

Net defined benefit liability (Note 17)

21,47021,849178,525

Asset retirement obligations (Note 20)

1,999

2,207

18,037

Noncurrent liabilities:

Other
Total noncurrent liabilities
Total liabilities

4,003

4,258

34,792

141,573

143,041

1,168,737

423,255

442,157

3,612,695

23,001

23,001

187,936

NET ASSETS
Shareholders' equity:
Capital stock
Capital surplus

26,25926,457

216,175

Retained earnings

189,217

199,155

1,627,222

Treasury stock(9,388)(8,462)(69,142)

Total shareholders' equity

229,089

240,152

1,962,192

79,47473,435600,012

Accumulated other comprehensive income (Note 10)
Valuation difference on available-for-sale securities
Deferred gains on hedges

108

385

3,152

Revaluation reserve for land (Note 8.8))

3,674

3,073

25,110Foreign currency translation adjustments(2,174)(391)(3,199)Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

2

TODA CORPORATION FINANCIAL STATEMENTS 2022

(153)

(81)

(665)

80,92876,421

624,409

2,515

2,467

20,162

312,533

319,0422,606,765¥ 735,789¥ 761,199$ 6,219,461

Consolidated Statements of Income
Toda Corporation and Consolidated Subsidiaries - For the years of March 31, 2021 and 2022
2021

2022

Thousands of
U.S. dollars
2022¥ 487,994
19,140507,134¥ 472,641
28,868501,509$ 3,861,764
235,873
4,097,638

430,693
11,553442,246

417,249
21,582438,832

3,409,178
176,3443,585,523

57,3007,586
64,887
37,19027,69755,392
7,285
62,67738,292
24,385452,586
59,528512,114
312,873
199,241

220
3,129
257
31
872
4,511

210
3,464
276
191
764
4,907

1,723
28,303
2,259
1,561
6,246
40,094

965
518
360
1,845
30,363

861
186
133
1,180
28,111

7,040
1,519
1,086
9,646
229,689

35
2,637
105
2,777

24
3,127
595
3,747

202
25,552
4,867
30,622

1,593
1,021
424
481
243
3,764
29,376
10,112(420)
9,692
19,684(51)
19,735

1,550
492
12
0
1,162
409
3,629
28,230
9,271
490
9,761
18,468(92)
18,56012,668
4,025
101
7
9,501
3,348
29,653
230,658
75,751
4,008
79,760150,898(754)$ 151,652

Millions of yen
Net sales: (Note 9.1))
Net sales of construction contracts
Net sales of investment development business and otherTotal net sales
Cost of sales:
Cost of sales of construction contracts (Notes 9.2) and 3))
Cost of sales of investment development business and other (Notes 9.5))
Total cost of sales
Gross profit:
Gross profit on construction contracts
Gross profit on investment development business and otherTotal gross profit
Selling, general and administrative expenses (Notes 9.4) and 5))
Operating income
Non-operating income:Interest income
Dividend income
Dividend income of insurance
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets (Note 9.6))
Gain on sales of investment securities (Note 15)
Other
Total extraordinary income
Extraordinary loss:
Loss on abandonment of noncurrent assets (Note 9.7))
Impairment loss (Note 9.8))
Loss on sales of investment securities (Note 15)
Loss on valuation of investment securities (Note 15)
Provision for loss on liquidation of subsidiaries and affiliates
Other
Total extraordinary losses
Profit before income taxes and non-controlling interests
Income taxes-current
Income taxes-deferred
Total income taxes (Note 18)
Profit for the year
Loss attributable to non-controlling interests
Profit for the year attributable to owners of the parent (Note 25)¥¥

Consolidated Statements of Comprehensive Income
Toda Corporation and Consolidated Subsidiaries - For the years of March 31, 2021 and 2022
2022
18,468

Thousands of
U.S. dollars
2022$ 150,898(6,039)
277
1,349
88
414
(3,909)14,559(49,344)
2,268
11,025724
3,386(31,940)
118,958

Millions of yen
Profit for the year
Other comprehensive income (Note 10)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of the parent
Non-controlling interests¥

2021
19,684¥

27,520121(1,527)1,029
200
27,34447,028¥47,146(118)¥

14,654(95)$

119,735(777)

TODA CORPORATION FINANCIAL STATEMENTS 20223

Consolidated Statements of Changes in Net Assets
Toda Corporation and consolidated subsidiaries - For the years ended March 31, 2021 and 2022
Millions of yen

Capitalstock

Balance at March 31, 2020

CapitalsurplusRetainedearnings

Valuationdifference on
Total
availableshareholders'for-saleequitysecurities

Treasurystock¥23,001 ¥26,259 ¥176,564 ¥(9,392) ¥216,433 ¥51,954

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

¥(13)

¥4,584

Total
Foreign
Remeasure- accumulated
currency
ments of
Nonothertranslation
defined comprehensive controlling
adjustments benefit plansinterests
income¥(805) ¥(1,292) ¥54,427

Total net
assets¥2,635 ¥273,496

Changes during period--(7,993)
19,735(7,993)
19,735

-

-

-

-

-

-

-

Disposal of treasury stock

-

-

-

Purchase of treasury stock

-

(0)

-

5

5

-

-

-

-

-

-

-

5

(0)
-

(0)
(0)

-

-

-

-

-

-

-

(0)
(0)

Reversal of revaluation
reserve for land

-

-

909

-

909

-

-

-

-

-

-

-

909

Net changes of items otherthan shareholders' equity

-

-

-

-

-

27,520121(909)(1,369)1,138

26,501(120)

26,381

Total changes of items
during the period-(0)12,652

4

12,65627,520121(909)(1,369)1,138

26,501(120)

39,037¥23,001 ¥26,259 ¥189,217 ¥(9,388) ¥229,089 ¥79,474¥108¥3,674 ¥(2,174)

Dividends from surplus
Profit for the year attributableto owners of the parent

Increase by share exchanges
Change in parent's ownershipinterests arising from capitalincrease of consolidated subsidiary

Balance at March 31, 2021-¥(153) ¥80,928(7,993)
19,735¥2,515 ¥312,533

Changes during period--(9,223)
18,560-(9,223)
18,560

-

-

-

-

-

-

-

(9,223)
18,560

-

198

-

32
(1)
894

32
(1)
1,093

-

-

-

-

-

-

-

32
(1)
1,093

Change in parent's ownershipinterests arising from capitalincrease of consolidated subsidiary

-

-

-

-

-

-

-

-

-

-

-

-

-

Reversal of revaluation
reserve for land

-

-

600

-

600

-

-

-

-

-

-

-

600

Net changes of items otherthan shareholders' equity

-

-

-

-

-

(6,039)

277

(600)

1,782

72

(4,507)(47)(4,554)

Total changes of items
during the period

-

198

9,938

925

11,063(6,039)

277

(600)

1,782

72

(4,507)

(47)

6,508

¥23,001 ¥26,457 ¥199,155 ¥(8,462) ¥240,152 ¥73,435¥385¥3,073¥(391)

Dividends from surplus
Profit for the year attributableto owners of the parent
Disposal of treasury stock
Purchase of treasury stock
Increase by shareexchanges

Balance at March 31,2022¥(81) ¥76,421¥2,467 ¥319,042

Thousands of U.S. dollars

Capitalstock

Balance at March 31, 2021

CapitalsurplusRetainedearnings

Valuationdifference on
Total
availableshareholders'for-saleequitysecurities

Treasurystock$187,936 $214,552 $1,546,018 $(76,707) $1,871,799 $649,357

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

Total
Foreign
Remeasure- accumulated
currency
ments ofother
Nontranslation
defined comprehensive controlling
adjustments benefit plansincomeinterests

Total net
assets$884 $30,020 $(17,765) $(1,258) $661,237 $20,549 $2,553,587

Changes during period
Dividends from surplus
Profit for the year attributableto owners of the parent- (75,358)- 151,652- (75,358)- 151,652

-

-

-

-

-

-

- (75,358)- 151,652

-

1,623

-

265
(9)
7,310

265
(9)
8,933

-

-

-

-

-

-

-

265
(9)
8,933

Change in parent's ownershipinterests arising from capitalincrease of consolidated subsidiary

-

-

-

-

-

-

-

-

-

-

-

-

-

Reversal of revaluation
reserve for land

-

-

4,910

-

4,910

-

-

-

-

-

-

-

4,910

Net changes of items otherthan shareholders' equity

-

-

-

-

- (49,345)

2,268(4,910)14,566592 (36,827)(386) (37,214)

Total changes of items
during the period

-

1,623

81,204

7,565

90,392 (49,345)

2,268(4,910)14,566592 (36,827)(386)

Disposal of treasury stock
Purchase of treasury stock
Increase by shareexchanges

Balance at March 31, 2022

4-$187,936 $216,175 $1,627,222 $(69,142) $1,962,192 $600,012

TODA CORPORATION FINANCIAL STATEMENTS 2022

$3,152 $25,110 $(3,199)

53,178$(665) $624,409 $20,162 $2,606,765

Consolidated Statements of Cash Flows
Toda Corporation and consolidated subsidiaries - For the years ended March 31, 2021 and 2022
2022

Thousands of
U.S. dollars
2022

28,230
4,765
492
104
(172)
1,164
(191)
148
(63)
(869)
0
(3,115)(24)
1,550(3,675)
861
1,625
1,435
4,304
1,136
6,025
(16,298)
658
7,877
(187)
35,785
3,681(853)(11,526)
186
27,274$ 230,658
38,9374,025
854(1,406)
9,514(1,561)
1,216(517)(7,102)
7(25,451)(202)
12,668(30,027)
7,040
13,277
11,73235,166
9,288
49,228(133,165)
5,378
64,362(1,532)
292,391
30,077(6,970)(94,176)
1,526
222,846

Millions of yen
Net cash provided by (used in) operating activities:
Profit before income taxes and non-controlling interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on liquidation of subsidiaries and affiliates
Share of loss (profit) of entities accounted for using equity method
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Increase (decrease) in other provision
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Loss on abandonment of noncurrent assets
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in costs on uncompleted construction contracts
Decrease (increase) in real estate for sale
Decrease (increase) in costs on real estate business
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received on uncompleted construction contracts
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities

2021¥

29,376
3,834
1,021
86
246
(8)
(31)
378
571
(576)
481
(2,212)(34)
1,593(3,349)965(46,220)
5,537
1,365
(4,092)(11,243)
8,981(2,140)161
693(14,615)
3,423
(953)
(9,012)
18(21,139)¥

Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments from retirement of property, plant and equipment
Purchase of intangible assets
Proceeds from subsidy income
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments of loans receivableCollection of loans receivable
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Purchase of shares of equity method affiliate
Payments for lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

(399)
76
(25,735)
35(1,745)(1,842)
9(4,190)
6,465
(101)
42
(107)
(3,643)(85)
370(30,852)

69
100(21,814)80(1,471)(2,511)
2,900(3,357)
6,321
(3)
28
(1,037)
(57)
(263)
582
(20,433)

565
817(178,238)
659(12,025)(20,519)
23,694(27,429)
51,648(27)
230(8,474)(465)(2,152)
4,759(166,957)

Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments for acquisition of shares of subsidiaries not affecting the scope of consolidation
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities

1,224
20,0009,717(6,616)20,000(5,000)(7,993)
(2)
(0)
(49)
31,27913,80912,920(9,037)
10,000(30)(9,223)
(2)
(76)
(1)
(51)
18,306112,829
105,564(73,839)
81,706(245)(75,358)
(18)
(628)
(9)
(421)
149,578

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of current period
Cash and cash equivalents at the end of current period (Note 12)(978)(21,690)
125,418
103,727426
25,574
103,727
129,301

3,488
208,955
847,517
1,056,473

TODA CORPORATION FINANCIAL STATEMENTS 2022

5

Notes to Consolidated Financial Statements
Toda Corporation and Consolidated Subsidiaries

1. Basis of Presenting Consolidated Financial Statements
The consolidated financial statements presented herein of Toda Corporation (the"Company") and its consolidated subsidiaries (together, the "Companies") areprepared in accordance with the provisions set forth in the Financial Instruments
and Exchange Law of Japan, and in conformity with accounting principles
generally accepted in Japan.
These consolidated financial statements incorporate certain modifications
in format so as to make the financial statements more meaningful to readers
outside Japan.
These modifications have no effect on total assets, net sales, retained
earnings or profit for the year.

(U.S. Dollar Amounts)
The accounts of consolidated financial statements presented herein are
expressed in Japanese yen by rounding down to nearest million.
The U.S. dollar amounts are included solely for convenience and have beentranslated, as a matter of arithmetical computation only, at the rate of ¥122.39= US$1, the exchange rate prevailing on the Tokyo foreign exchange market on
March 31, 2022, and have been then rounded down to the nearest thousand. Thistranslation should not be construed as a representation that the yen amounts
actually represent, have been or could be converted into U.S. dollars at this or
any other rate.

2. Summary of Significant Accounting Policies
1) Scope of consolidation
The accompanying consolidated financial statements include the accountsof Toda Corporation and 30 subsidiaries, namely APEC Engineering Co., Ltd.,
Chiyoda Kenkou Co., Ltd., Toda Road Co., Ltd., Toda Bldg. Partners Co., Ltd.,
Toda Finance Co., Ltd., Towa Kanko Kaihatsu Co., Ltd., Toda Staff Service Co.,
Ltd., Goto Floating Wind Power LLC, Offshore Wind Farm Construction Co.,
Ltd., Sato kogyo Co., Ltd., Showa Construction Co., Ltd., Goto Floating Wind
Farm LLC, Toda Solar Energy Fukaya LLC, Toda America, Inc., Construtora
Toda do Brasil S/A, Thai Toda Corporation Ltd., Toda Vietnam Co., Ltd., Tobic
Co., Ltd., PT Toda Group Indonesia, PT Toda Eksekutif Properties, TODA
Energia do Brasil Ltda. and other 9 companies.
Other subsidiaries were not consolidated, as they were notsignificant in terms of the effect on total assets, net sales, profit for the year
or retained earnings of the consolidated financial statements.
2) Application of the equity method
The affiliate to which the equity method is applied is as follows:
PT Tatamulia Nusantara Indah, Jack-up Wind Farm Construction Co., Ltd.
In the current consolidated fiscal year, the newly established Jack-up Wind
Farm Construction Co., Ltd. became an equity-method affiliate.
Other non-consolidated subsidiaries and affiliates were notaccounted for using the equity method, as these Companies were notsignificant in terms of the effect on profit for the year or retained earnings ofthe consolidated financial statements.
3) Fiscal year of consolidated subsidiaries
Of the consolidated subsidiaries, Toda America, Inc., Construtora Toda
do Brasil S/A, Thai Toda Corporation Ltd., Toda Vietnam Co., Ltd., PT Toda
Group Indonesia., Tobic Co., Ltd., TODA Energia do Brasil Ltda. and other 5companies close their fiscal year on December 31 each year.
In preparing the consolidated financial statements, the Company
used financial statements as of December 31 of all these subsidiaries.
However, adjustments necessary for the purpose of consolidation
have been made for fiscal year-end.
In addition, Toda Solar Energy Fukaya LLC closes the fiscal year
on January 31 and in preparing the consolidated financial statements, thefinancial statement based on provisional settlement of account as of theconsolidated closing date March 31 is used.
The fiscal year-end of all other consolidated subsidiaries is thesame as the consolidated fiscal year-end.
4) Standards and evaluation methods for significant assets(a) Short term investment securities and investment securities
Held-to-maturity debt securities
Amortized cost method (straight-line method)
Available-for-sale securities∙ Other than equity securities without market prices:Stated at fair value (the difference between the book value and thefair value is recorded as a component of net assets, while the cost of
securities sold is computed using the moving-average method)∙ Equity securities without market prices:Stated at cost, determined by the moving-average method
In addition, the valuations for investments in investment businesslimited partnerships and similar partnerships (those deemed to be
securities under Article 2, Paragraph 2 of the Financial Instruments
and Exchange Law of Japan) are based on recent financial statements
available according to the settlement closing dates stipulated in thepartnership contracts, and are recorded in the net amounts equivalent
to their equity.

6

TODA CORPORATION FINANCIAL STATEMENTS 2022

The accounting methods are as follows:
In the case of investment for the main business purpose,the equity-equivalent profit and loss to be attributable is recorded
in "operating profit and loss" and added to or subtracted from"investment securities".
In the case of investment for purposes other than themain business purpose, the equity-equivalent profit and loss to be
attributable is recorded as "non-operating profit and loss" and added
to or subtracted from "investment securities".
(b) Derivatives
Stated at fair value.
(c) Inventories
Costs on uncompleted construction contracts
Stated at cost, determined by the specific identification cost method
Real estate for saleStated at cost, determined by the specific identification cost method (Thebook value on the consolidated balance sheets is presented after writedown for decline in profitability.)(d) Other inventories
Raw materials and supplies
Stated at cost, determined by the weighted average method (The bookvalue on the consolidated balance sheets is presented after write-down
for decline in profitability.)
Costs on real estate businessStated at cost, determined by the specific identification cost method (Thebook value on the consolidated balance sheets is presented after writedown for decline in profitability.)5) Methods of depreciation and amortization
depreciable assets(a) Property, plant and equipment (excluding lease assets)
The declining-balance method is primarily used. However, the straightline method is used for buildings (excluding building fixtures) acquired on
and after April 1, 1998 and building fixtures and other structures acquired
on and after April 1, 2016.
In addition, the straight-line method is used for Machinery,
vehicles, tools, furniture and fixtures in some of the consolidated
subsidiaries.
Standards Identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual value.
(b) Intangible fixed assets (excluding lease assets)
The straight-line method is used.
Standards identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual value.
However, the amortization of software used by the Companies iscomputed using the straight-line method based on the estimated useful life.
(c) Lease assets
Leased assets under finance leases other than those that are deemed totransfer ownership to lessees
Depreciation is based on the straight-line method over the leaseterm of the leased assets with no residual value.
6) Allowances and provisions(a) Allowance for doubtful accounts
The allowance for doubtful trade receivables and loans has been provided
based on historic loss experience for general accounts and also includes
the aggregate amount of the estimated loss for the accounts for which
concern actually exists for collectability.

(b) Provision for bonuses
This is provided for the payment of bonuses for employees, based on
expected payment amount.
(c) Provision for warranties to completed construction
To cover expenses for defects claimed concerning completed work, thisis provided based on the estimated amount of compensation in the future
for the work completed during the current consolidated fiscal year.
(d) Provision for loss on construction contracts
The provision for loss on construction contracts is provided at theestimated amount for the future losses on contract backlog at thecurrent consolidated fiscal year-end which will be probably incurred andwhich can be reasonably estimated.
(e) Provision for directors' retirement benefits
To prepare for the payment of retirement benefits for executive officers
and subsidiaries' directors, the provision is provided at the amount to be
paid according to internal regulations if they had retired at the current
consolidated fiscal year-end.
(f) Provision for loss on liquidation of subsidiaries and affiliates
The provision for loss on liquidation of subsidiaries and affiliates isprovided at the estimated amount for a possible future loss arising fromliquidation.
(g) Provision for stock payments to directors
The provision for stock payments to directors is provided for stock award debt
based on predetermined regulations for awarding stock, which is prepared for
future awards of the Company's shares to its directors and executive officers.
7) Accounting Policies of retirement benefits
The provision for retirement benefits to employees is calculated based on
estimated amounts of retirement benefit obligations and pension assets asof the consolidated fiscal year-end.
Regarding lump-sum severance indemnity plan for some of theconsolidated subsidiaries, the amount is calculated based on simplified
method (method to assume required payment amount based on voluntarytermination of employment on the closing date as retirement benefit
obligations).
The estimated amount of retirement benefit is allocated to periodsof service based on the benefit formula.
Actuarial differences are amortized commencing the following year
after the difference is recognized respectively by the straight-line method
over a period of five years.
8) Recognition of net sales from construction
contracts and related costs
In the building construction and civil engineering, etc., which are theCompanies' principal business, the Companies have the performanceobligations to construct buildings or structures, etc. and deliver theoutcomes to customers based on construction contracts.
The construction contracts are a transaction in which performanceobligations are satisfied over time, and the Companies recognize revenue
according to the progress in the satisfaction of performance obligations.
The Companies have applied the method based on the percentage
of costs incurred by the end of each reporting period to the total expected
costs as a method of estimating the progress of construction works to thesatisfaction of performance obligations.
In addition, revenue is recognized by the cost recovery method
when the progress in the satisfaction of performance obligations cannot bereasonably estimated, but the costs incurred are recoverable.
For construction contracts with a very short term between thecommencement date of the transaction in the construction contract and thedate when the performance obligations are expected to be fully satisfied, theCompanies apply alternative treatment and do not recognize revenue overtime.
In this case, the Companies recognize revenue when the performanceobligations are fully satisfied. When certain refund obligations to customers
are expected to arise, such as compensation for damages incurred inassociation with performance of contracts, the Companies reduce revenue
to the extent of the estimated refund liability.
The Companies estimate a financing component of each individual
construction contract and determine whether it is significant because thetiming of receipt of the consideration for the transaction of the construction
contracts varies depending on the terms of each individual construction
contract.
As a result, the Companies determined that there are no construction
contracts with a significant financing component.
9) Translation of foreign currency assets andliabilities
All monetary assets and liabilities denominated in foreign currencies
are translated into Japanese yen at the exchange rates prevailing at theconsolidated fiscal year-end.
The resulting gains and losses are included in net income or loss
for the consolidated fiscal year.
Assets and liabilities accounts of foreign consolidated subsidiaries
are translated into Japanese yen at the exchange rate prevailing at the fiscal
year-end.
Income and expense accounts of foreign consolidated subsidiaries
are translated into Japanese yen at the average annual exchange rate.
The resulting translation adjustments are included in foreign
currency translation adjustment and minority interests in the net assets ofthe consolidated balance sheets.
10) Hedge Accounting
The Companies apply hedge accounting as follows:(a) Method of hedge accounting adopted
Deferral hedge accounting
If the interest rate swap contracts are used as hedge and meet certain
hedging criteria, net amounts to be paid or received under the interest rate
swap contracts are added to or deducted from the interest or liabilities
for which the swap contract were executed ("special treatment").
(b) Measure and objects
1. Measures: Forward foreign exchange contracts
Objects: Transactions to be paid in foreign currencies in cases ofoverseas construction of work and overseas procurement ofmaterials
2. Measures: Interest rate swap
Objects: Borrowings(c) Hedging principles:
Based on internal regulations which stipulate the execution authority
regarding on derivative transactions and those for transaction limits, theCompanies utilize hedges to minimize the risk of currency exchange rateand interest rate fluctuations associated with the hedge objects.
(d) Evaluation method of effectiveness of hedging:
During the period from the time when the hedging first started until thecurrent consolidated fiscal year-end, the Companies have been assessing
the hedge effectiveness primarily by comparing, in terms of variation
amounts, (1)cumulative cash flow changes or exchange rate changes of
the hedge objects and (2)cumulative cash flow changes or exchange ratechanges of the hedge measures.
However, the evaluation of hedge effectiveness is omitted forinterest swaps as they meet certain hedging criteria for the special
treatment.
11) Goodwill
Goodwill is amortized by the straight-line method over a period of up to 10
years in which it is effective. However, goodwill that is immaterial is charged
to expense in the period.
12) Cash and cash equivalents
For the consolidated statements of cash flows, cash and cash equivalents
are defined as cash on hand, deposits that can be withdrawn at any timeand highly liquid short-term investments with a maturity date within threemonths after acquisition.
13) Other significant matters for preparing
consolidated financial statements
Principles and procedures of accounting treatment adopted when theprovisions of related accounting standards, etc. are not clear
The accounting method for joint venture (JV) in the construction industry ismainly based on the method of recognizing assets, liabilities, income andexpenses according to the investment ratio of the members.

TODA CORPORATION FINANCIAL STATEMENTS 2022

7

3. Significant Accounting Estimates
1) Estimates for the method of recognizing revenue over time(the so-called old percentage of completion method)(a) Amount recorded in the consolidated financial statements

Thousands of
U.S. dollars

Millions of yen

2021

For the years ended March 31
Net sales of construction contracts(b)	Information about the content of significant accounting estimates for theidentified item
In applying the method of recognizing revenue over time (the so-called
old percentage of completion method), in principle, the Companies makethe best estimate for all construction works based on the information
obtained, regarding the total construction revenue, the total construction
cost and the progress of construction on the fiscal closing date.
In the calculation of the total construction revenue, if there is an
uncontracted increase or decrease construction, the construction price

¥

2022

445,590¥2022

429,888

estimated based on the negotiation status with the ordering party isrecorded.
In the calculation of the total construction cost, the Companies
are continuously reviewing the estimate according to the progress ofthe construction, based on the negotiation situation with the partnercompany and the assumption of various conditions.
Accordingly, if the total construction revenue and total construction
cost are different from the estimates, it may affect the consolidated
financial statements for the next consolidated fiscal year.

2) Estimates for impairment loss on fixed assets(a) Amount recorded in the consolidated financial statements

Thousands of
U.S. dollars

Millions of yen

2021

For the years ended March 31
Impairment loss(b)	Information about the content of significant accounting estimates for theidentified item
Asset grouping method is based on management accountingclassification, and business assets used by the Companies are groupedby business establishment, and rental assets and idle assets are grouped
by individual property.
As a result of examining the necessity of recognition of impairment
loss, if it is determined that it should be recognized, the carrying amount$ 3,512,446

¥

1,021

2022
¥

2022
492

$

4,025

is reduced to the recoverable amount and the reduced amount is recorded
as an impairment loss.
The recoverable value is calculated based on net selling price andfuture value in use.
However, since the estimate of the recoverable value is uncertain,
if the preconditions for the estimate change due to economic conditions
or deterioration of market conditions, it may affect the consolidated
financial statements for the next consolidated fiscal year and thereafter.

4. Change in Accounting Policies
1) Application of the Accounting Standard for Revenue Recognition
The Companies have applied the Accounting Standard for Revenue
Recognition (ASBJ Statement No.29 issued on March 31, 2020) from the
beginning of the current consolidated fiscal year, revenue is recognized at
the amount expected to be received in exchange for the promised goods
or services when control of the goods or services is transferred to thecustomer. Until the previous consolidated fiscal year, revenue associatedwith construction contracts of which the outcomes of the progress ofconstruction works can be reliably estimated was accounted for by thepercentage of completion method.
The accounting policy has been changed at the beginning of thecurrent consolidated fiscal year, and revenue is recognized over timeas the performance obligations to transfer goods or services to thecustomer is satisfied if control of the goods or services is transferred tothe customer over time.
The Companies have applied the method based on the percentage ofcosts incurred by the end of each reporting period to the total expected
costs as a method of estimating the progress of construction works tothe satisfaction of performance obligations.
In addition, revenue is recognized by the cost recovery method when
the progress in the satisfaction of performance obligations cannot bereasonably estimated, but the costs incurred are recoverable.
For construction contracts with a very short term between thecommencement date of the transaction in the construction contract
and the date when the performance obligations are expected to be
fully satisfied, the Companies apply alternative treatment and do notrecognize revenue over time.
In this case, the Companies recognize revenue when the performanceobligations are fully satisfied. Furthermore, until the previous
consolidated fiscal year, with respect to revenue related to the sales of
construction materials, etc., the Companies recognized as revenue thegross amount of consideration received from customers.
In the current consolidated fiscal year, as a result of examining therole (principal or agent) in providing goods or services to customers, theCompanies have changed to a method of recognizing revenue in the net
amount.
In accordance with the transitional treatment prescribed in theproviso of Paragraph 84 of the Accounting Standard for Revenue

8

TODA CORPORATION FINANCIAL STATEMENTS 2022

Recognition, the cumulative effect of retrospective application of the
new accounting policy prior to beginning of the current consolidated fiscal
year is added to or deducted from retained earnings at the beginning of
the current consolidated fiscal year, and the new accounting policy isapplied from such beginning balance.
However, the Companies have applied the method prescribed in
Paragraph 86 of the Accounting Standard for Revenue Recognition andhave not applied the new accounting policy retrospectively to contracts
for which almost all revenue amounts were recognized in accordance withthe previous treatment prior to the beginning of the current consolidated
fiscal year.
As a result, although this change was no effect in retained earnings
at the beginning of the current consolidated fiscal year, net sales andcost of sales increased by ¥30 thousand million (US$25,063 thousand)and ¥30 thousand million (US$25,064 thousand) in the consolidated
statements of income at the current consolidated fiscal year.
In accordance with the transitional treatment stipulated in
Paragraph 89-3 of the Accounting Standard for Revenue Recognition, thenotes to "Revenue Recognition" for the previous consolidated fiscal year
are not presented.
2) Application of the Accounting Standard for Fair Value Measurement
The Companies have applied the Accounting Standard for Fair Value
Measurement (ASBJ Statement No.30 issued on July 4, 2019) from the
beginning of the current consolidated fiscal year, in accordance withthe transitional treatment prescribed in Paragraph 19 of the AccountingStandard for Fair Value Measurement and Paragraph 44-2 of the
Accounting Standard for Financial Instruments (ASBJ Statement No.10
issued on July 4, 2019).
The new accounting policy prescribed by the Accounting Standard is
to be applied prospectively.
This change has no effect on the consolidated financial statements.
In addition, in the notes to "Financial Instrument", the Companies
provide notes on items such as the breakdown of the fair value offinancial instruments by level of fair value.
However, in accordance with the transitional treatment prescribedin Paragraph 7-4 of the "Guidance on Disclosures about Fair Value of
Financial Instruments" (ASBJ Guidance No.19 issued on July 4, 2019), nosuch notes are presented for the previous consolidated fiscal year.

5. Accounting Standards Issued but Not Yet Adopted∙ " Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No.31 issued on June 17, 2021)
1) Overview
2) Planned date of adoption
The implementation guidance stipulated the treatment of the calculation of
From the beginning of the fiscal year ending March 31, 2023
the fair value of investment trusts and the handling of the notes, as well as3) Effects of adoption of revised accounting standard
the handling of the notes of the fair value of investments in partnerships forand related implementation guidance
which equity interests are recorded on a net basis.
The Companies are currently in the process of determining the effects of
the implementation guidance on the consolidated financial statements.

6. Change in presentation methods(Consolidated Statements of Cash Flows)"Increase (decrease) in provision for loss on liquidation of subsidiaries andaffiliates" included in "Increase (decrease) in other provision" of "Net cash
provided by (used in) operating activities" in the fiscal year ended March
31, 2021 is described separately because of increase in materiality from thefiscal year ended March 31, 2022.
To reflect this change in presentation, the consolidated financial statements

for the fiscal year ended March 31, 2021 have been reclassified.
As a result, "Increase (decrease) in other provision" of "Net cash providedby (used in) operating activities" for consolidated statements of cash flows¥(584) million (US$(4,778) thousand) have been reclassified into "Increase(decrease) in provision for loss on liquidation of subsidiaries and affiliates"¥(8) million (US$(68) thousand) and into "Increase (decrease) in otherprovision" ¥(576) million (US$(4,709) thousand).

7. Additional Information(Performance-linked stock compensation plan for directors and executive
officers)
1) Transaction summary
At the Board of Directors held on May 13, 2016 and the Company's 93th
annual general meeting of shareholders held on June 29, 2016, mattersconcerning introduction of a performance-linked stock compensation planfor its directors and executive officers (the "Directors") was resolved. The
plan is with the goal of increasing management consciousness to further
enhancing the corporate value, performance over the medium-to-longterm and shareholders emphasis.
The plan is incentive for the Directors. The Company's shares are acquired
through the Board Incentive Plan Trust ("BIP Trust") and the Employee
Stock Ownership Plan Trust ("ESOP Trust") and awarded to the Directors
in accordance with achievement degree of performance targets.
2) The Company's own stock in the Trust
The Company's own stock in the Trust is recorded in treasury stock under
net assets based on the value in the Trust (excluding ancillary expenses).

The book value and the number of these treasury stocks in the Trust asof March 31, 2021 were ¥324 million and 636,603 shares (BIP Trust), ¥82
million and 164,378 shares (ESOP Trust). The book value and the number ofthese treasury stocks in the Trust as of March 31, 2022 were ¥297 million(US$2,434 thousand) and 584,633 shares (BIP Trust), ¥76 million (US$628
thousand) and 152,517 shares (ESOP Trust).
(Accounting estimates associated with the spread of COVID-19)
Regarding the impact of the spread of COVID-19 diseases , because theCompanies have continued its business activities after implementing
thorough infection prevention measures, and at the present time it ismaintaining the same level as in normal times, therefore, in the current
fiscal year accounting estimates are made under the assumption that the
impact on business continuity and business performance will be limited.
Depending on the spread of COVID-19 and its impact on the economy, it
may have a significant impact on the consolidated financial statements
after the next consolidated fiscal year.

8. Notes to Consolidated Balance Sheets

1) T he amount of receivables arising from contracts with customers and contract assets, among notes and accounts
receivable - trade, and the amount of contract liabilities among advances received on uncompleted construction
contracts are described in the consolidated financial statements "Notes (22. Revenue Recognition, (a) Balances, etc. ofcontract assets and contract liabilities)".
Thousands of
U.S. dollars

Millions of yen

As of March 31
2) Accumulated depreciation of property, plant and equipment
3) Advanced depreciation:
Buildings and structures
Machinery, vehicles, tools, furniture and fixtures
Intangible assets
Total4) Investments in Non-consolidated subsidiaries and affiliates included in investment securities
5) Pledged assets and Secured debt
Pledged assets and Secured debt are as follows:
Buildings
Land
Total
Liabilities secured thereby
Short-term loans payable
Current portion of bonds payable
Bonds payable
Total
Assets pledged as collateral:
Investment securities
Long-term loans receivable
Total
6) Contingent liabilities (guarantee liabilities)
7) Loan commitment agreement:
Maximum limit under the agreement
Loan balance outstanding
Difference (unused portion)

2021¥ 31,987

2022¥ 34,650

2022$ 283,118

46
4,784
8
¥ 4,839¥ 6,619

133
7,597
8
¥ 7,739¥ 6,407

1,091
62,073
69
63,23452,352

¥

-

¥

-

¥

462
626
¥ 1,088¥185¥¥ 30,000¥ 30,000

¥
¥
¥
¥

$
$

25
296
321

$

9
90
245
344

$

435
610
¥ 1,046¥169$¥ 30,000¥ 30,000$ 245,118$ 245,118

¥

¥

$

$

$
$

204
2,420
2,625
75
735
2,001
2,812
3,557
4,990
8,547
1,386

TODA CORPORATION FINANCIAL STATEMENTS 2022

9

8) Land revaluation

Based on the Land Revaluation Law, the Company has revaluated land held for business use and has recorded any discrepancies in the consolidated balance sheets
as revaluation reserve for land.

9) Provision for loss on construction contracts included in costs on uncompleted construction contracts

Thousands of
U.S. dollars

Millions of yen

2021
¥
139

As of March 31
Costs on uncompleted construction contracts

2022
¥
292

2022
$
2,386

10) Change in holding purpose of assets

The following noncurrent assets were reclassified as real estate held for sale due to change in holding purpose.

Thousands of
U.S. dollars

Millions of yen

2021
¥
832
1,557

As of March 31
Buildings and structures
Land

2022
¥
530
1,452

The following real estate held for sale was reclassified as noncurrent assets due to change in holding purpose.

Thousands of
U.S. dollars

Millions of yen

2021¥

As of March 31
Land

2022
¥
510

-

2022
$
4,336
11,867

2022
$
4,169

9. Notes to Consolidated Statements of Income
1) Revenue from contracts with customers

Net sales are not stated separately for revenue from contracts with customers and other revenue. The amount of revenue from contracts with customers is
described in the consolidated financial statements "Notes (22. Revenue Recognition, (1) Disaggregation of revenue from contracts with customers)".
Thousands of
U.S. dollars

Millions of yen

For the years ended March 31
2) Provision for loss on construction contracts included in costs of sales
3) Valuation loss on inventories included in costs of sales
4) Principal components of selling, general and administrative expenses:
Employees' salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision (reversal) of allowance for doubtful accounts5) Research and development expenditures included in selling, generaland administrative expenses and construction costs6) Gain on sales of noncurrent assets:
Buildings and structures
Land
Other
Total
7) Loss on abandonment of noncurrent assets:
Buildings and structures
Other
Dismantlement cost
Total

2021
¥ 1,721¥-2022¥ 1,513¥162022$ 12,369$
133¥ 12,904
4,431
1,313
264

¥ 13,481
4,312
988
(175)

$ 110,152
35,2338,077(1,430)¥ 2,721¥ 2,801$

22,889

¥

8
26
35

¥

8
14
1
24

$

70
118
12
202

0
22
1,570
¥ 1,593

¥

160
20
1,369
¥ 1,550

$

¥
¥

¥

$

$

1,309
171
11,187
12,6688) Impairment loss on fixed assets

The group puts its assets for business purposes, primarily into main office and branch office. And other assets are put each properties.
Impairment loss on fixed assets was as follows:

For the fiscal year ended March 31, 2021
PurposeType

Impairment loss
(Millions of yen)

Bunkyo Ward, Tokyo Pref, Japan andothersAssets for businesses(Our company)

Building and Structure¥

88

Goto City, Nagasaki Pref, Japan

Assets for businesses(Subsidiary)

Construction inprogress, Machinery,
vehicles, tools,
furniture and fixture¥

933

Location

The recoverable value is mainly value in use.
In the case of our company, assets decided to be abolished is zero, and assets with reduced profitability is the net sale value, and the net sale value is computed bywithholding the cost of disposal from the sale value.
In the case of Offshore Wind Farm Construction Co., Ltd. (subsidiary), Value in use is measured as the sum of anticipated future cash flows discounted at a rate of
5.590%~5.788% for the fiscal year ended March 31, 2021. (The sum of anticipated future cash flows are expected to be caused by continued use and disposal after use.)

10

TODA CORPORATION FINANCIAL STATEMENTS 2022

For the fiscal year ended March 31, 2022
PurposeType

Impairment loss
(Millions of yen)(Thousands of
U.S. dollars)

Minato Ward, Tokyo Pref, Japan

Assets for businesses(Our company)

Building and Structure

¥

104

$

857

Naruto City, Tokushima Pref, Japan

Assets for businesses(Our company)

Building and Structure

¥

35

$

291

Goto City, Nagasaki Pref, Japan

Assets for businesses(Our company)

Construction in progress¥312$ 2,554

Kamakura City, Kanagawa Pref, Japan

Assets for businesses(Our company)

Building and Structure

¥

39

$

Location321

Note: We chose not to describe the detail in the report as the amount of other impairment loss is not material.

The recoverable value is set at zero for assets that the Company has decided to abolish due to the dismantling of owned assets, etc., and the net sale value is used forrental assets, etc., whose profitability has declined.
The net sale value is computed by withholding the cost of disposal from the sale value.
In addition, unfinished assets at the fiscal year ended March 31, 2022 are measured based on their future value in use.

10. Notes to Consolidated Statements of Comprehensive Income
Thousands of
U.S. dollars

Millions of yen
Reclassification and tax effect of comprehensive income for the years ended March 31

Valuation difference on available-for-sale securities:
AccrualReclassification
Before adjust tax effectTax effect
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges:
AccrualReclassification
Before adjust tax effectTax effect
Deferred gains (losses) on hedges
Foreign currency translation adjustments:
AccrualRemeasurements of defined benefit plans:
AccrualReclassification
Before adjust tax effectTax effectRemeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method:
Accrual
Total of other comprehensive income

2021

2022

2022

¥

42,466(2,665)39,800(12,279)¥ 27,520¥ (5,786)(2,987)(8,774)2,734¥ (6,039)$ (47,282)(24,407)(71,690)
22,345$ (49,344)

¥

¥

¥

404
(4)
400
(122)
277

$

¥

149
24
174
(52)
121

$

3,305
(36)
3,268
(1,000)2,268¥(1,527)

¥

1,349

$

11,025

¥

446
1,037
1,483
(454)
1,029

¥

32
95
127
(39)
88

$

267
776
1,044
(319)
724

200
27,344414¥ (3,909)¥

3,386$ (31,940)

11. Notes to Consolidated Statements of Changes in Net Assets
Number of shares
For the fiscal year ended March 31, 2021

Class of shares

April 1, 2020

Increase

Decrease

March 31, 2021

Issued stock

Common stock

322,656,796--

322,656,796

Treasury stock

Common stock

16,028,138

1,261

10,41316,018,986

Number of shares
For the fiscal year ended March 31, 2022

Class of shares

April 1, 2021

Increase

Decrease

March 31, 2022

Issued stock

Common stock

322,656,796--

322,656,796

Treasury stock

Common stock

16,018,986

1,594

1,580,231

14,440,349

Number of shares
For the fiscal year ended March 31, 2021

Class of shares

Total Dividends

Dividends per share

Record date

Effective dateJune 25, 2020 Resolution by Annual
General Meeting of Shareholders

Common stock¥7,993 million¥26.00March 31, 2020

June 26, 2020

June 29, 2021 Resolution by Annual
General Meeting of Shareholders

Common stock¥6,148 million¥20.00March 31, 2021

June 30, 2021

TODA CORPORATION FINANCIAL STATEMENTS 2022

11

Number of shares
For the fiscal year ended March 31, 2022

Class of shares

Dividends per share

Record date

Effective dateJune 29, 2021 Resolution by Annual
General Meeting of Shareholders¥6,148 million
Common stock($50,239 thousand)Total Dividends¥20.00March 31, 2021

June 30, 2021

November 15, 2021 Resolution by
Board of Directors

Common stock¥3,074 million($25,119 thousand)¥10.00

September 30, 2021 December 13, 2021

June 29, 2022 Resolution by Annual
General Meeting of Shareholders

Common stock¥4,943 million($40,389 thousand)¥16.00March 31, 2022

June 30, 2022

12. Notes to Consolidated Statements of Cash Flows
Thousands of
U.S. dollars

Millions of yen
Reconciliation between cash and deposits on the consolidated balance sheets and cash
and cash equivalents at the fiscal year-end:

2021

2022

2022

Cash and deposits of the consolidated balance sheets(Less) time deposits with maturities of more than three months
Short-Term investment securities
Cash and cash equivalents of the consolidated statements of cash flows¥¥ 120,538(1,236)
10,000¥ 129,301$ 984,869(10,102)81,706$1,056,473

95,037(1,309)10,000¥ 103,727

Major assets acquired and liabilities assumed of the Companies which newly became consolidated subsidiaries through acquisitions during the year ended March
31,2021
None
Major assets acquired and liabilities assumed of the Companies which newly became consolidated subsidiaries through acquisitions during the year ended March 31,2022
Information about assets acquired, liabilities assumed, acquisition cost and payment for purchase as of the date of consolidation is as follows:(Showa Construction Co., Ltd.)

Current assets
Fixed assets
Goodwill
Current liabilities
Non-current liabilities
Acquisition cost of shares
Acquisition cost associated with share exchanges out of total
Cash and cash equivalents
Payment for purchase

Millions of yen

Thousands of
U.S. dollars

2022¥ 2,437
2,063
191(1,213)(789)¥ 2,689(1,093)(558)¥ 1,037

2022
19,914
16,8601,568(9,918)(6,450)$21,973(8,933)(4,565)$8,474$

13. Lease Transactions
Thousands of
U.S. dollars

Millions of yen
As of March 31

Future minimum lease payments under non-cancelable operating leases:
Due within one year
Due after one year
Total
Future minimum lease income under non-cancelable operating leases:
Due within one year
Due after one year
Total

2021

2022

2022

¥

875
2,139
¥ 3,015¥ 1,140
2,497¥ 3,638$ 9,322
20,409$ 29,732¥ 2,997
7,331¥ 10,329¥ 3,724
11,411¥ 15,136$ 30,434
93,239$ 123,673

14. Financial Instrument
Fair value of financial instrument
Millions of yen

As of March 31, 2021
(1) Notes and accounts receivable - trade(2) Short-term investment securities,
investment securities (Note 2)(3) Long-term loans receivable
Assets total

12

TODA CORPORATION FINANCIAL STATEMENTS 2022

Book value

Fair value¥ 209,347¥ 209,261

193,074

193,252842¥ 403,264887¥ 403,401

Difference

¥

(85)
178

¥

44
137

(1) Notes and accounts payable - trade(2) S hort-term loans payable and Commercial
papers-liabilities(3) Income taxes payable(4) Bonds payable(5) Long-term loans payable
Liabilities total
Derivative transactions (Note3)¥ 114,000¥ 114,000¥-

68,297

68,297-

8,525
50,10032,643¥ 273,566
¥
150

8,525
49,99532,684¥ 273,502
¥
150

(104)
40
¥ (64)¥-

Note: 1. "Cash and deposits" are not shown because these financial instruments are in cash or have a short maturity and these values approximate these book values.
2. Financial instrument for which it is extremely difficult to measure the fair value

As of March 31, 2021
Stocks of non-consolidated subsidiaries and affiliated companies
which are not accounted for by the equity method:
Stocks of subsidiaries
Stocks of affiliated companies
Investments in Limited Liability Company
Affiliated companies preferred equity securities
Investments in silent partnerships
Other investment securities
Unlisted stocks
Unlisted preferred equity securities
Trust beneficiary right
OthersMillions of yen
¥

55
4,175
349
1,200
838

¥

5,444
140
1,040
4,070

Others

These financial instruments are considered to be extremely difficult to measure, as there are no market prices and no valuations of future cash flow. Therefore, thesefinancial instruments are not included in "(2) Short-term investment securities and investment securities".
3. Net receivables/payables arising from derivatives are shown.
Millions of yen

As of March 31, 2022
(1) Notes and accounts receivable - trade(2) Short-term investment securities,
investment securities (Note 2)(3) Long-term loans receivable
Assets total

Book value

Fair value¥ 208,892(1) Notes and accounts payable - trade(2) Short-term loans payable andCommercial papers-liabilities(3) Current portion of bonds payable(4) Income taxes payable(5) Bonds payable(6) Long-term loans payable
Liabilities total
Derivative transactions (Note 3)

Thousands of U.S. dollars
DifferenceBook value

Fair value¥ 208,850¥ (42)$ 1,706,778$ 1,706,430

Difference$ (348)186,225

186,339114

1,521,571

1,522,503

932

817¥ 395,935

852¥ 396,041

34
¥ 106

6,680
$ 3,235,030

6,965$ 3,235,899

$

284
868

¥ 97,728¥ 97,728¥-$ 798,500$ 798,500$-

79,96979,969-653,400

653,400-

15,1906,175
45,24538,991¥ 283,299¥
505

15,202
6,175
44,94438,879¥ 282,899
¥
505

12
(300)
(112)
¥ (400)¥-124,11150,456369,678
318,583$ 2,314,731$
4,131

124,21250,456367,223
317,667$ 2,311,461
$
4,131

100
(2,455)(916)$(3,270)$-

Note: 1. "Cash and deposits" are not shown because these financial instruments are in cash or have a short maturity and these values approximate these bookvalues.
2. Equity securities without market prices and investments in partnerships for which equity interests are recorded on a net basis are not included in"(2) Short-term investment securities and investment securities".
These financial instruments recorded in the consolidated balance sheets are as follows:
Thousands ofMillions of yen
As of March 31, 2022
U.S. dollars

Equity securities without market prices
Stocks of subsidiaries
Stocks of affiliated companies
Unlisted stocks
Investments in Limited Liability Company
Unlisted preferred equity securities
OthersInvestments in partnerships for which equity interests are recorded
on a net basis
Investments in silent partnerships
Others

¥

55
4,785
6,065
325
140
9

¥ 1,943
3,399

$

455
39,09949,562
2,658
1,147
79

$ 15,877
27,772

3. Net receivables/payables arising from derivatives are shown.

TODA CORPORATION FINANCIAL STATEMENTS 2022

13

Fair value information of financial instruments by level of inputs
The fair values of financial instruments are categorized into the following three levels based on the observability and materiality of the inputs used to measure fairvalues.
Level 1 fair value: The fair values which are measured by using observable inputs that reflect the quoted market prices for identical assets or liabilities in active
markets
Level 2 fair value: The fair values which are measured by using observable inputs that are not included in level 1
Level 3 fair value: The fair values which are measured by using unobservable inputs
If multiple inputs that have significant impact on measurement of fair values are used, the fair values are categorized in the lowest priority level in measurement offair values among the levels to which these inputs belong.
(1) Financial assets and liabilities of which fair value is recognized in the consolidated balance sheets
Millions of yen

Thousands of U.S. dollars

Fair value
Level 1
As of March 31, 2022
Short-term investment securities,
investment securities
Other investment securities
Stocks¥ 158,513
Bonds
Derivative Transactions
Currency-related transactions
Assets total¥ 158,513

Fair value

Level 2

Level 3

¥

¥

719

505
¥ 1,225¥

Total

Level 1

Level 2-

¥ 158,513
719$ 1,295,152
-

$

-

505
¥ 159,739$ 1,295,152

4,131$ 10,011

5,879

Level 3

$

$

Total

-

$ 1,295,152
5,879

-

4,131
$ 1,305,163

Note: 1. There are no financial liabilities whose book value is recorded in the consolidated balance sheets at fair value.
2. The fair value of investment trusts is not included in the above. The book value of the investment trusts on the consolidated balance sheets is¥11,946 million (US$97,611 thousand).

(2) Financial assets and liabilities of which fair value is not recognized in the consolidated balance sheets
Millions of yen

Thousands of U.S. dollars

Fair value

As of March 31, 2022
Notes and accounts receivable - trade
Short-term investment securities,
investment securities
Held-to-maturity debt securities
Bonds
OthersLong-term loans receivable
Assets total
Notes and accounts payable - trade
Short-term loans payable andCommercial papers-liabilities
Current portion of bonds payable
Income taxes payable
Bonds payable
Long-term loans payable
Liabilities total

Fair value

Level 1

Level 2

Level 3

Total

Level 1

Level 2

¥ -¥ 208,850¥ -¥ 208,850$ -Level 3$

1,706,430

$ -

¥ ¥ -

5,159
10,000852¥ 224,861¥ 97,728

¥ ¥ -

5,159
10,000852¥ 224,861¥ 97,728$ $ --79,969-79,969¥ -15,202
6,175
44,94438,879¥ 282,899¥ -15,202
6,175
44,94438,879¥ 282,899$$

42,15481,706
6,965
1,837,256
798,500$ $ --653,400-

653,400$ -124,21250,456367,223
317,667
2,311,461$ -124,21250,456367,223
317,667
2,311,461

$

Total

$

1,706,430$$

42,15481,706
6,965
1,837,256
798,500$

Note: Description of the valuation techniques and inputs used to measure fair value
Assets
Notes and accounts receivable - trade
The fair values are based on the present value of discounted cash flows using the interest rate determined by the factors of the estimated collection terms, period
to maturity and credit risks, with respect to each receivable categorized by collection terms.
These financial instruments are classified as Level 2.
Short-term investment securities, investment securities
Listed stocks and Bonds are based on the prices of exchange and the prices presented by the dealing financial institutions.
Listed stocks are classified as Level 1 because these financial instruments are traded in active markets.
Bonds of the Company are classified as Level 2 because these financial instruments are not traded in the market frequently and are not recognized as quoted
market prices in active markets.
Certificates of deposit are classified as Level 2 because these financial instruments have a short maturity and these value approximates these book value.
Long-term loans receivable
These financial instruments are categorized by collection terms and made into credit risk categories for credit management.
The fair values of these are based on the present value of discounted cash flows at the Companies' assumed corporate discount rate by adding the credit spreadto the appropriate indexes, such as the yield of government bonds.
These financial instruments are classified as Level 2.

14

TODA CORPORATION FINANCIAL STATEMENTS 2022

Liabilities
Notes and accounts payable - trade, Short-term loans payable and Commercial papers-liabilities, and Income taxes payable
These financial instruments are classified as Level 2 because these have a short maturity and these value approximates these book value.
Current portion of bonds payable and Bonds payable
The fair values of the Companies' bonds payable are based on the market prices and classified as Level 2.
However, the fair values of some of the consolidated subsidiaries' bonds payable are classified as Level 2 because there is no market price.
The fair values are based on the present value of discounted cash flows using the interest rate assumed for a similar new bond, with respect to the total amountof principal and interest.
Long-term loans payable
The fair values of these financial instruments are based on the present value of discounted cash flows using the interest rate assumed for a similar new loan, withrespect to the total amount of principal and interest, and are classified as Level 2.
However, Some long-term loans payable are subject to exceptional treatment of interest rate swaps.
The fair values of these financial instruments are based on the present value of discounted cash flows using the interest rate assumed for a similar new loan, withrespect to the total amount of principal and interest treated together with the interest rate swap.
Derivative Transactions
The fair values of interest rate swaps to which the exceptional treatment is applied are included in the fair values of long-term loans payable because thesefinancial instruments are accounted for as an integral part of long-term loans payable that are hedged (referred to “Liabilities” above).
The fair values of foreign exchange contracts are based on the prices presented by the dealing financial institutions, and classified as Level 2.

15. Marketable Securities and Investment Securities
Held-to-maturity debt securities:
Millions of yen

As of March 31, 2021
Securities with a fair value that exceeds the book value
Securities with a fair value that does not exceed the book value
Total

Book value

Fair value

Difference¥ 4,134717¥ 4,852¥ 4,320710¥ 5,030

Book value

Acquisition cost

¥ 185
(7)
¥ 178

Available-for-sale securities with a fair value:
Millions of yen

As of March 31, 2021
Securities with a book value that exceeds the acquisition cost:
Stocks
Bonds
OthersSubtotal
Securities with a book value that does not exceed the acquisition cost:
Stocks
Bonds
OthersSubtotal
Total

Difference¥ 161,047¥ 46,958¥ 114,089

640
9,415
171,103

615
8,481
56,05525933
115,048

6,527
99
10,491
17,118¥ 188,222

7,039
100
10,491
17,631¥ 73,686

(512)
(0)
(512)
¥ 114,535

Note: T he Companies recognized losses on write-down of ¥481 million for securities (¥431 million for available-for-sale securities and ¥50 million for securities
without a fair value).
Millions of yen

For the fiscal year ended March 31, 2021
Available-for-sale securities sold

Sales amount Total gain on sales Total loss on sales¥ 6,129¥ 2,637424

Held-to-maturity debt securities:
Millions of yen

As of March 31, 2022
Securities with a fair value that exceeds
the book value
Securities with a fair value that does notexceed the book value
Total

Book value

Fair value¥ 3,845¥ 4,007

1,200

1,152

¥ 5,045¥ 5,159

Thousands of U.S. dollars
Difference¥¥Book value

Fair value

Difference162$ 31,417$ 32,741$ 1,324

(47)

9,804

9,412

(392)

114

$ 41,222$ 42,154$

932

TODA CORPORATION FINANCIAL STATEMENTS 2022

15

Available-for-sale securities with a fair value:
Millions of yen

As of March 31, 2022
Securities with a book value that exceeds
the acquisition cost:
Stocks
Bonds
OthersSubtotal
Securities with a book value that does notexceed the acquisition cost:
Stocks
Bonds
OthersSubtotal
Total

Book value

Acquisition cost

¥ 152,889
619
10,431
163,941

5,623
99
11,514
17,238¥ 181,179¥¥

Thousands of U.S. dollars
DifferenceBook value

Acquisition cost

46,773600
9,307
56,681¥ 106,115
19
1,124
107,259$ 1,249,201
5,064
85,235
1,339,501$ 382,170
4,902
76,050463,122

7,089
100
11,556
18,74675,428(1,466)(0)(42)(1,508)¥ 105,751

45,951
814
94,081
140,847$ 1,480,349

57,929817
94,427
153,173$ 616,296

Difference$

867,031161
9,185
876,378(11,978)(2)(345)(12,326)
864,052$

Note: We chose not to describe the detail in the report as the amount of the losses on write-down is not material.
Write-down losses are recognized in each of following cases.
Case of other than equity securities without market prices● Fair value of fiscal year end and quarter settlement day in a row decline more than 30% compared to book value in succession.
● Fair value declined more than 50% compared to book value.
Case of equity securities without market prices● Net worth of equivalent of Equity declines more than 50% compared to acquisition cost.

For the fiscal year ended March 31, 2022
Available-for-sale securities soldMillions of yen

Thousands of U.S. dollars

Sales amount Total gain on sales Total loss on sales

Sales amount Total gain on sales Total loss on sales

¥

5,123

¥

3,127

¥

12

$

41,865$ 25,552$

101

16. Derivative Transactions
For the year ended March 31, 2021
Derivative transactions to which the hedge accounting method is not applied:
None
Derivative transactions to which the hedge accounting method is applied:(1) Currency-related transactions
Method of processing

Measures

Objects

Contract amountMillions of yen
more than 1 year

¥ 2,944¥ 1,640¥ 4,585¥ 2,531¥ 1,300¥ 3,832

Contract amountMillions of yen
more than 1 year

Estimated fair value¥ 7,580¥ 2,300*

Forward foreignexchange contracts
Method in principle
Buy EUR
Forecasted purchasing transaction
Buy USD
Forecasted purchasing transaction
Total

Estimated fair value

¥
¥
¥

45
104
150

(2) Interest-related transactions
Method of processing

Measures

Objects

Interest rate swaps
Exceptional treatment
Payment fixed,of interest rate swaps
Receive floating

Long-term loans
payable(*) The fair value of interest rate swaps that qualify for special treatment is included in long-term loans payable.

For the year ended March 31, 2022
Derivative transactions to which the hedge accounting method is not applied:
None
Derivative transactions to which the hedge accounting method is applied:(1) Currency-related transactions
Method of processing

Measures

Forward foreignexchange contracts
Method in principle Buy EUR
Buy USD
Total

16

TODA CORPORATION FINANCIAL STATEMENTS 2022

Objects

Contract
amountForecasted purchasing¥ 4,630transaction
Forecasted purchasing¥ 1,562transaction¥ 6,193

Millions of yen
more than Estimated
1 yearfair value

Thousands of U.S. dollars
Contract more than Estimatedamount1 yearfair value¥ 1,147¥ 240$ 37,836$ 9,372$ 1,964

¥

537

¥ 265

$ 12,765$ 4,394$ 2,167¥ 1,684¥ 505$ 50,602$ 13,767$ 4,131(2) Interest-related transactions
Method of processing

Measures

Objects

Interest rate swaps
Exceptional treatment
Payment fixed,
Long-term loansof interest rate swaps
Receive floating
payableContract
amount¥ 8,080

Millions of yen
more than Estimated
1 yearfair value¥ 5,720

Thousands of U.S. dollars
Contract more than Estimatedamount1 yearfair value*$ 66,018 $ 46,735*(*) The fair value of interest rate swaps that qualify for special treatment is included in long-term loans payable.

17. Retirement Benefits
The Company has a defined benefit plan that consists of a defined benefit pension plan and a lump-sum benefit plan,and has also a corporate defined contribution pension plan since April 2020.
Some of the domestic consolidated subsidiaries have a defined benefit pension plan and a defined contribution pension plan, and some of the foreign consolidated
subsidiaries have a defined contribution plan.
In addition, the other consolidated subsidiaries have lump-sum benefit plans based on the simplified method.
The schedule of the defined benefit obligation
Balance at the beginning of the fiscal year
Service cost
Interest cost
Actuarial gain and loss
Benefit paid
otherBalance at the end of the fiscal year

Millions of yen

2021
42,7502,25182
335(2,223)(2)¥ 43,193¥

The schedule of the pension assets
Balance at the beginning of the fiscal year
Expected return on pension assets
Actuarial gain and loss
Contributions by the employer
Benefit paid
otherBalance at the end of the fiscal year

Millions of yen

2021
22,710
270
781
857
(930)
¥ 23,689¥

Retirement benefit obligation of unfunded plan
Net amount of liabilities and assets recognized in consolidated balance sheets

2021
21,722(23,689)(1,966)
21,47019,504

Net defined benefit liability
Net defined benefit asset
Net amount of liabilities and assets recognized in consolidated balance sheets

21,470(1,966)
19,504¥¥The breakdown of items in retirement benefit costs
Service cost
Interest cost
Expected return on pension assets
Amortization of actuarial differences
Retirement benefit costs

2021
2,251
82
(270)
1,037
¥
3,101

¥

2021
1,483
1,483

Thousands of
U.S. dollars

2022$ 193,553
2,316
292
7,027
(8,204)28$ 195,015
Thousands of
U.S. dollars

2022$ 177,619(195,015)(17,395)
178,525
161,129

21,849(2,129)¥ 19,720

178,525(17,395)$ 161,129

2022
2,333
83
(283)
95
¥
2,228

¥

Millions of yen

¥
¥

2022
$ 352,914
19,063681
25(18,455)
1,916$ 356,145

2022
21,738(23,867)(2,129)21,84919,720¥Millions of yen

Remeasurements of defined benefit plans
Actuarial gain and loss
Total

2022
23,689283
35860(1,004)
3¥ 23,867¥

Millions of yen

The reconciliation of the defined benefit obligations and pension assets to the liabilities
and assets on retirement benefits recognized in the consolidated balance sheets
Retirement benefit obligation of funded plan
Pension assets

2022
43,1932,333
83
3(2,258)234¥ 43,588¥

Thousands of
U.S. dollars

¥
¥

2022
127
127

Thousands of
U.S. dollars

2022
19,063681(2,316)776$ 18,205$

Thousands of
U.S. dollars

$
$

2022
1,044
1,044

TODA CORPORATION FINANCIAL STATEMENTS 202217

Unrecognized remeasurements of defined benefit plans
Unrecognized actuarial (gain) loss
Total

Millions of yen

¥
¥

2021
378
378

¥
¥

2022
250
250

The breakdown of pension assets by major category
Bonds
Equities
General account
other
Total

2021
25%
8%
57%
10%
100%

2022
24%
9%
58%
9%
100%

The items of actuarial assumptions
Discount rate
Expected long-term return on pension assets
Expected rate of salary raise

2021
0.2%
1.2%
5.6%

2022
0.2%
1.2%
5.6%

Millions of yen

Required amount of contribution to the corporate defined contribution pension plan

¥

2021
364

¥

2022
445

Thousands of
U.S. dollars

$
$

2022
2,045
2,045

Thousands of
U.S. dollars

$

2022
3,642

18. Deferred Tax Accounting
The tax effects of temporary differences which gave rise to deferred tax assets
and liabilities at March 31, 2021 and 2022 are as follows:
As of March 31
Deferred tax assets:
Real estate for sale
Buildings, structures and land
Investment securities
Allowance for doubtful receivables
Provision for bonuses
Provision for loss on construction contracts
Net defined benefit liability
Tax loss carryforwards
Other
Subtotal
Less: valuation allowance
Deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Net defined benefit asset
Other
Deferred tax liabilities
Net deferred tax assets (liabilities)

Millions of yen

2021
¥

¥

173
1,111
305
447
2,160
797
6,589
673
4,681
16,938(4,035)
12,903(34,974)(602)(1,186)(36,762)¥ (23,859)

Thousands of
U.S. dollars

2022

2022

¥

194
1,217
242
389
1,888
818
6,727
1,281
4,711
17,472(5,110)¥ 12,361

$

1,592
9,948
1,984
3,180
15,431
6,687
54,97010,47038,492
142,759(41,757)$ 101,002(32,244)(651)(1,479)(34,374)¥ (22,012)(263,454)(5,320)(12,086)(280,860)$ (179,858)

In addition to the above, the Companies recognized deferred tax liabilities of ¥6,389 million and ¥6,124 million (US$50,043 thousand) related to revaluation
reserve for land at March 31, 2021 and 2022, respectively.

Reconciliation between the statutory tax rate and the effective tax rate
Statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable income
Inhabitant taxes (per capita levy)
Valuation allowance
Other
Effective tax rate

2021
30.6%
1.1%
(0.6%)
0.7%
2.0%(0.8%)
33.0%

2022
30.6%
1.0%
(0.7%)
0.7%
3.8%(0.8%)
34.6%

19. Business Combinations
Business combination through stock acquisition and stock exchange(1) Outline of the business combination① Name and business of the acquired company
Name of the acquired company: Showa Construction Co., Ltd.
Business: General construction② Principal reason for business combination
Showa Construction Co., Ltd. is a major local general contractor in the Ibaraki area, with a long history and a wealth of construction experience.
By making Showa Construction Co., Ltd. a subsidiary, the Companies aim to utilize each other's know-how and management resources, establish a solid businessfoundation in the Ibaraki area, and expand our market share.

18

TODA CORPORATION FINANCIAL STATEMENTS 2022

③ Date of the business combination
November 1, 2021 (Date of stock acquisition)
December 22, 2021 (Date of stock exchange)
December 31, 2021 (Deemed date of acquisition)④ Legal form of business combination
Acquisition of stock for cash and deposits, and acquisition of stock through stock exchange⑤ Name after the business combination
There is no change⑥ Ratio of voting rights acquired
Ratio of voting rights acquired for cash and deposits: 57%
Ratio of voting rights acquired through stock exchange: 43%
Ratio of voting rights after acquired: 100%
⑦ Principal basis for determination of the acquiring company
The Company acquired the stock for cash and deposits.
Stock exchange was carried out, with the Company becoming parent of wholly owned subsidiary by stock exchange and Showa Construction Co., Ltd. as a wholly
owned subsidiary by stock exchange.
(2) Period of the operating results of the acquired company included in the accompanying consolidated financial statements
January 1, 2022 through March 31, 2022
(3) Acquisition cost of the acquired company and details of the type of consideration
Consideration for acquisition

Millions of yen

Thousands of
U.S. dollars¥ 1,596$ 13,040

1,093

8,933

2,689

21,973

Cash and deposits
Fair value of common stock of the Company
on effective date of stock exchange

Acquisition cost(4) Exchange ratio by class of stocks, its calculation method, and number of stock delivered① Exchange ratio by class of stock
Company name

The Company(Parent of wholly owned subsidiary by stock exchange)

Showa Construction Co., Ltd.
(Wholly owned subsidiary by stock exchange)

Allotment ratio for stock exchange(Ratio for stock exchange)

13,526.51(Note1)

Number of stock delivered throughstock exchange

Common stock of the Company: 1,516,400 shares

Note: 1. The ratio is rounded off to the third decimal place.
2. 1,516,400 shares of common stock of the Company were allotted and delivered for each stock of common stock of Showa Construction Co., Ltd. at theabove allotment ratio.
However, no shares were allotted in the stock exchange for common stock of Showa Construction Co., Ltd. held by the Company as of the effective dateof stock exchange (December 22, 2021).
The Company has not issued any new shares, as all of the shares related to the delivery have been allocated from treasury stock held by the Company.
3. Showa Construction Co., Ltd. has not issued new stock reservation rights or bonds with new stock reservation rights in connection with stock exchange.

② Calculation method of ratio for stock exchange
The stock value of the Company was calculated using Market Price Method, as the Company's common stock is listed on the 1st Section of the Tokyo Stock
Exchange (shifted to the Prime Market on April 4, 2022).
In addition, the Company set September 29, 2021 as the base date for calculation, and the calculation results are as follows:
YEN

U.S. dollars

Closing price on the base date for calculation

792

6.47

Simple average of closing prices for the most recent month

826

6.74

Simple average of closing prices for the last 3 months

795

6.49

Simple average of closing prices for the last 6 months

794

6.48

On the other hand, regarding the stock value of Showa Construction Co., Ltd., when considering ratio for stock exchange to be used for the stock exchange, inorder to ensure fairness and appropriateness, the Company requested the calculation to AGS Consulting Co., Ltd.
AGS Consulting Co., Ltd. did not adopt Market Price Method and Comparable Multiple Valuation Method for the common stock of Showa Construction Co., Ltd.
because it is unlisted and there are no similar listed companies.
However, the source of stock value lies in future earnings ability.
Therefore, Discounted Cash Flow Method was used in order to reflect the earning ability based on the status of future business activities, instead of Adjusted
Book Value Method.
The calculation results of the stock value per share of Showa Construction Co., Ltd. calculated by AGS Consulting Co., Ltd. based on Discounted Cash Flow
Method are as follows:

Calculation results

Discounted Cash Flow Method

Thousands of yen / share

Thousands of U.S. dollars / share

2,620 ~ 3,201

21 ~ 26* The net assets per share of Showa Construction Co., Ltd. for the fiscal year ended March 2021 is ¥3,647,245 (US$29,800), but the calculation result of thestock value is lower than that because dividends were paid after the accounting period.

TODA CORPORATION FINANCIAL STATEMENTS 2022

19

Based on the above calculation method, the valuation range of ratio for stock exchange when the stock value per share of common stock of the Company is set
to 1 is as follows:

Calculation method adopted
The Company

Showa Construction Co., Ltd.

Calculation results of ratio for stock
exchange

Market Price Method

Discounted Cash Flow Method

3,172.81 ~ 4,042.01③ Number of shares delivered
1,516,400 shares(5) Major acquisition-related costs and nature
Financial due diligence costs and transaction brokerage fees, etc.: ¥219 million (US$1,796 thousand)(6) Amount of goodwill generated, reason for generation of goodwill, method of amortization and amortization period① Amount of goodwill¥191 million (US$1,568 thousand)② Reason for generation of goodwill
Acquisition cost exceeded net amount of assets acquired and liabilities assumed.
The excess amount has been recorded as goodwill.
③ Method of amortization and amortization period
Equal amortization over 3 years(7) Amount of assets acquired and liabilities assumed as of the date of business combination and major breakdown
Thousands of
U.S. dollars

Millions of yen¥

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities

¥
¥
¥

2,437
2,063
4,500
1,213
789
2,003

$
$
$
$

19,914
16,86036,7749,918
6,450
16,369(8)	Estimated amount of the effect on the consolidated statement of income for the current fiscal year assuming that the business combination was completed at the
beginning of the fiscal year, and the calculation method.
Since the estimated amount of the effect on the consolidated statement of income for the current fiscal year is immaterial, details are omitted.
However, the note has not been audited.

20. Asset Retirement Obligations
The asset retirement obligations in the consolidated balance sheets
We chose not to describe the detail in the report due to its immateriality.

21. Investment and Rental Properties
Millions of yen

As of March 31, 2021
Real estate for rentBook Value

Fair Value¥ 109,727¥ 190,751

As of March 31, 2022
Real estate for rentBook Value

Fair ValueBook Value

Fair Value¥ 116,313¥ 226,704$ 950,350$ 1,852,314

Total

Millions of yen

Thousands of U.S. dollars

22. Revenue Recognition(1) Disaggregation of revenue from contracts with customers
Millions of yen
Reporting segments
Building
Civil
For the year ended
Construction Engineering
March 31, 2022
Goods or services transferred¥ 275,826 ¥ 142,687
over time
Goods or services transferred
17,3403,271
at a point in time
Revenue from contracts with
293,167
145,959
customers
Other revenue
1
Sales on third parties¥ 293,168 ¥ 145,959

20

TODA CORPORATION FINANCIAL STATEMENTS 2022

Investment
Development

DomesticGroup
Companies

New Business
Fields

¥

¥

¥

¥

-

11,374-¥ 429,888

16,491

26,618786

64,51016,491

37,993786

494,398

2,196
2,982

7,111
¥ 501,509

4,183
20,675¥730
38,723¥

Thousands of U.S. dollars
Reporting segments
Domestic

Building
Civil
Investment
New Business
For the year ended
Group
Total
Construction Engineering Development
FieldsMarch 31, 2022
Companies
Goods or services transferred$ 2,253,667 $ 1,165,845 $- $ 92,933 $- $ 3,512,446
over time
Goods or services transferred
141,686
26,734
134,747
217,492
6,425
527,085
at a point in time
Revenue from contracts with
2,395,353
1,192,579
134,747
310,425
6,425
4,039,532
customers
Other revenue
10
34,180
5,968
17,945
58,105
Sales on third parties$ 2,395,363 $ 1,192,579 $ 168,928 $ 316,394 $ 24,371 $ 4,097,638(2) Information as a basis to understand revenue from contracts with customers
Information as a basis to understand revenue from contracts with customers is described in the consolidated financial statements "Notes (2. Summary of Significant
Accounting Policies, 8) Recognition of net sales from construction contracts and related costs)".
(3)	Information related to the relationship between the satisfaction of performance obligations based on contracts with customers and the cash flows resulting fromsuch contracts, and the amounts and timing of revenue expected to be recognized in or after the next consolidated fiscal year from contracts with customers thatexisted at the current consolidated fiscal year-end(a) Balances, etc. of contract assets and contract liabilities
Thousands of
U.S. dollars

Millions of yen

Receivables from contracts with customers
Contract assets
Contract liabilities

Balance as ofApril 1, 2021¥
90,269127,445
36,468

Balance as ofMarch 31, 2022¥
71,821
136,657
28,369Balance as ofMarch 31, 2022$
586,826
1,116,574
231,795

Contract assets are rights of the Companies to the unbilled consideration for performance obligations satisfied or partially satisfied as of closing date, withrespect to performance obligations related to the construction, etc. of buildings or structures, etc. based on construction contracts.
Contract assets are transferred to receivables from contracts with customers when the rights of the Companies to the consideration become unconditional upon
invoicing or delivery.
In addition, there is no clear link between the timing of satisfaction of performance obligations and the timing of receipt of the consideration for transaction
because payment terms for construction contracts vary.
Contract liabilities consist primarily of advances received from customers based on payment terms stipulated for individual construction contracts, with respect
to construction contracts for which revenue is recognized over time.
In addition, contract liabilities are reversed upon recognition of revenue.
The amounts of contract liabilities recognized as revenue in the current consolidated fiscal year among the balance of contract liabilities in the beginning of thecurrent consolidated fiscal year are ¥35,614 million (US$290,995 thousand).
Furthermore, the amounts of revenue recognized in the current consolidated fiscal year for performance obligations that were satisfied or partially satisfied in
the past consolidated fiscal years is not material.
(b)	Transaction price allocated to the remaining performance obligations
At the current consolidated fiscal year-end, the total transaction price allocated to unsatisfied or partially unsatisfied performance obligations is ¥796,421 million(US$6,507,243 thousand) in the Companies.
The total transaction price allocated to the remaining performance obligations, such as the construction, etc. of buildings or structures, etc. in "Building
Construction" and "Civil Engineering", etc., is expected to be recognized as revenue within approximately 3 years.
The total transaction price allocated to the remaining performance obligations, such as the sale of real estate in "Investment Development" and "New Business
Fields", and the building management in "Domestic Group Companies", is expected to be recognized as revenue within 3 years.

TODA CORPORATION FINANCIAL STATEMENTS 2022

21

23. Segment Information
Effect of change in accounting method
From the beginning of the consolidated fiscal year March 31, 2022, the Companies have applied "Accounting Standard for Revenue Recognition".
Compared to the previous accounting standards, the accounting standard resulted in an increase of net sales of "Building Construction" by ¥8.2 thousand million(US$67,234 thousand), but in a decrease of net sales of "Civil Engineering" by ¥91 million (US$744 thousand) for the current consolidated fiscal year.
In addition, "Investment Development" net sales decreased by ¥12 million (US$100 thousand) for the current consolidated fiscal year.
Furthermore, "Domestic Group Companies" net sales decreased by ¥13 thousand million (US$106,373 thousand) for the current consolidated fiscal year, of which themain component was inter-segment sales.
Millions of yen
Reporting segments
Building
For the year ended
Construction
March 31, 2021
Net sales:
Customers¥ 322,808
Inter-segment
5,204
Total
328,012Segment profit (loss)¥
9,166
Depreciation and¥1,380
amortization
Amortization of goodwill ¥Impairment loss on¥
fixed assets

Civil
Engineering

Investment
Development

DomesticGroup
Companies

New Business
Fields¥ 133,098
3,260
136,359¥ 14,110¥¥¥

37,03518,78555,821
2,282¥¥

12,184847
13,031
4,212

¥

2,006
2,006
(1,025)

¥

375

¥

1,193

¥

223

¥

¥

-

¥

69

¥

-

¥

-

¥

-

¥

-

Total

Adjustments

Consolidated¥ 507,134
28,097535,231¥ 28,746¥(28,097)(28,097)¥ (1,049)¥ 507,134
507,134¥ 27,697

660

¥

3,834

¥

-

¥

3,834

¥

17

¥

86

¥

-

¥

86

¥

933

¥

933

¥

88

¥

1,021

Millions of yen
Reporting segments
Building
For the year ended
Construction
March 31, 2022
Net sales:
Customers¥ 293,168
Inter-segment
11,456
Total
304,624
Segment profit (loss)¥
7,823
Depreciation and¥1,767
amortization
Amortization of goodwill ¥Impairment loss on¥
fixed assets

Civil
Engineering

Investment
Development

DomesticGroup
Companies

New Business
Fields¥ 145,959
1,996
147,956¥ 11,912¥¥¥

38,723
6,473
45,196
1,909¥¥

20,675810
21,486
4,131

¥

2,982
2,982
(263)

¥

476

¥

1,334

¥

240

¥

¥

-

¥

69

¥

9

¥

-

¥

104

¥

0

Total

Adjustments

Consolidated¥ 501,509
20,736522,246¥ 25,513¥(20,736)(20,736)¥ (1,128)¥ 501,509
501,509¥ 24,385

946

¥

4,765

¥

-

¥

4,765

¥

25

¥

104

¥

-

¥

104

¥

348

¥

453

¥

39

¥

492

Thousands of U.S. dollars
Reporting segments
Building
For the year ended
Construction
March 31, 2022
Net sales:
Customers$ 2,395,363
Inter-segment
93,605
Total
2,488,969
Segment profit (loss)$ 63,924
Depreciation and$ 14,442
amortization
Amortization of goodwill $Impairment loss on$
fixed assets

Civil
Engineering

Investment
Development

DomesticGroup
Companies

New Business
Fields

Total

Adjustments

Consolidated$ 1,192,579 $ 168,928 $ 316,394 $
16,311
6,625
52,8891,208,891
175,554369,284$ 97,331 $ 33,753 $ 15,605 $

24,371 $ 4,097,638 $- $ 4,097,638
169,432(169,432)
24,371
4,267,070(169,432)
4,097,638(2,150) $ 208,464 $(9,223) $ 199,241$

3,893 $

10,902 $1,963 $

7,736 $

38,937 $- $38,937

$

- $

566 $

78 $

209 $

854 $

- $

854

$

- $

857 $

1 $

2,845 $

3,704 $

321 $

4,025

Notes: 1. Adjustments of segment profit (loss) is negative ¥1,049 million and negative ¥1,128 million (US$9,223 thousand) elimination of inter-segment
transactions.
2. Segment profit (loss) is adjusted in accordance with operating income as recorded in the consolidated statements of income.
3. Impairment loss on fixed assets that don't belong to the reporting segments are ¥88 million and ¥39 million (US$321 thousand), and are describedin the adjustments.

22

TODA CORPORATION FINANCIAL STATEMENTS 2022

The Companies operate in the following 5 reporting segments:
Building Construction	����������������������Domestically and overseas our groups' research, planning, design, management and execution of building construction
work, and architectural and comprehensive engineering and consulting related thereto
Civil Engineering	������������������������������Domestically and overseas our company's research, planning, design, management and execution of civil engineering
work, such as tunnel construction, and architectural and comprehensive engineering and consulting related thereto
Investment Development	�����������������Domestically real estate development, resale and rent of real estate
Domestic Group Companies	������������Business carried out by domestic consolidated subsidiaries (building construction, civil engineering, real estate
mainly for building management, hotel business, worker dispatching mainly for the Companies and financing andleasing)
New Business Fields	������������������������Overseas resale and rent of real estate, and onshore wind power generation business overseas, and floating offshore
wind power generation business, agricultural diversification and other new business24. Related Party Transactions
Related party transactions between the Company and related parties
Directors and principal shareholders (only individual shareholders), etc., of the Company
For the year ended March 31, 2021
None
For the year ended March 31, 2022
None

25. Per Share Information
Yen

As of March 31
Net assets per share of common stock
Profit for the year per share of common stock

U.S. dollars

2021

2022

¥ 1,011.02
64.36¥1,027.12
60.43

Basis for calculation of net assets per share:
Total net assets
Amount attributable to items other than common stock
Net assets attributable to common stock
Number of shares of common stock outstanding at fiscal year-end

2021

2022

¥

312,533 ¥ 319,042
2,515
2,467
¥ 310,018 ¥ 316,574
306,637,810 308,216,447
sharesBasis for calculation of profit for the year per share:
Profit for the year attributable to owners of the parent
Profit for the year attributable to owners of the parent attributable to common stock
Average number of shares of common stock outstanding during the fiscal year

8.392
0.493

2022
$ 2,606,765
20,162$ 2,586,602

shares¥
19,735 ¥18,560¥19,735 ¥18,560306,633,969 307,139,020
shares$Thousands of
U.S. dollars

Millions of yen

Years ended March 31

2022

$
$

151,652
151,652

shares

26. Significant Subsequent Events(The issue of unsecured straight bonds)
The Board of Directors has resolved the issuance of unsecured straight bonds at February 28, 2022, andthe Company has issued the unsecured straight bonds under the following terms and conditions at June 2, 2022.
(1) Name of issue
The 9th unsecured straight bonds (subject to a limited inter-bond pari passu clause) (Sustainability-Linked Bond)(2) Issue amount¥10,000 million (US$81,706 thousand)(3) Interest rate
0.734%(4) Redemption period
June 2, 2032 (10 years)(5) Issue price¥100 for face value of ¥100
(6) Redemption price¥100 for face value of ¥100
(7) Redemption method
Lump-sum redemption upon maturity(8) Purpose of the funds
Working capital

TODA CORPORATION FINANCIAL STATEMENTS 2022

23

(Conversion into subsidiary by additional stock acquisition)
The Company resolved at its Board of Directors held on June 29, 2022, to acquire additional stocks in PT Tatamulia Nusantara Indah (headquartered in the Republicof Indonesia; hereinafter "TATA"), an equity method affiliate of the Company, from existing shareholders (hereinafter the "Stock Acquisition") to convert TATA into a
subsidiary.
TATA will become a specified subsidiary of the Company as its capital amount reaches 10% or more of the capital of the Company.
(1) Outline of the business combination① Name and business of the acquired company
Name of the acquired company: PT Tatamulia Nusantara Indah
Head office location: Sapta Mulia Center; J1.Rawa Gelam V Kav.OR-3B; Jakarta, Indonesia
Representative: Ir Iwan Adi Susanto (President Director)
Business: General construction
Capital: Rp333,400 million (approx. ¥3.0 thousand million (US$24,511 thousand))
Establishment: December 17, 1984
② Reason for the Additional Stock Acquisition
TATA is one of the leading companies in the construction industry in the Republic of Indonesia, a growing market.
The Company subscribed for new stocks issued by TATA through a third-party allotment in October 2020 to make it an equity method affiliate.
In the Medium-term Management Plan 2024—Rolling Plan, the Companies are committed to the development of overseas business as a priority management
initiative.
The Stock Acquisition is aimed at establishing the Company's presence in the growing Indonesian market by strengthening its relationship with the local
capital company.
③ Date of the business combination
August 2022 (planned)④ Legal form of business combination
Acquisition of stock for cash
⑤ Name after the business combination
There is no change⑥ Ratio of voting rights to be acquired
Ratio of voting rights before to be acquired: 40.01%
Ratio of voting rights to be acquired additionally: 26.99%
Ratio of voting rights after to be acquired: 67.00%(2) Acquisition cost of the acquired company
While the Company refrains from disclosing the acquisition price in accordance with the wishes of the counterparties to the Stock Acquisition, the Company plansto acquire the stocks for an amount calculated in a fair manner by reference to the opinions of experts.
(3) Major acquisition-related costs and nature
Not confirmed at this time(4)	Acquisition cost of the acquired company and difference from the total acquisition cost for each transaction leading to acquisition
Not confirmed at this time(5) Amount of goodwill generated, reason for generation of goodwill, method of amortization and amortization period
Not confirmed at this time(6)	Amount of assets to be acquired and liabilities to be assumed as of the date of business combination and major breakdown
Not confirmed at this time

24

TODA CORPORATION FINANCIAL STATEMENTS 2022

Non-consolidated Balance Sheets
Toda Corporation - As of March 31, 2021 and 2022
Thousands of
U.S. dollars

Millions of yen
2021

2022

2022

80,149¥ 107,668$ 879,716

216

930

7,599

1,653

2,578

21,063

Accounts receivable from completed construction contracts

196,472

190,784

1,558,824

Short-term investment securities

10,00010,00081,706

Real estate for sale (Notes 7.5))

11,076

5,250

42,899Costs on uncompleted construction contracts

9,322

8,629

70,505

Costs on real estate business

7,095

4,044

33,045

Raw materials and supplies

567

685

5,597

Accounts receivable - other

1,659

1,373

11,219Advanced paid

18,144

17,945

146,624

Other

8,964

3,656

29,872

Allowance for doubtful accounts(1,225)(1,154)(9,435)

Total current assets

344,096352,3902,879,238

Buildings

48,03355,522453,653

Accumulated depreciation(17,594)(18,555)(151,608)

Buildings, net (Notes 7.1) and 5))30,43936,967302,044

Structures

2,066

2,295

18,757

Accumulated depreciation(1,371)(1,213)(9,911)

695

1,082

8,845

Machinery and equipment

6,410

7,065

57,728

Accumulated depreciation(5,136)(4,855)(39,671)

Machinery and equipment, net

1,274

2,209

18,056

Vehicles

90

73

600

Accumulated depreciation

(81)

(68)

(559)

8

5

41

Tools, furniture and fixtures

2,020

2,077

16,976

Accumulated depreciation(1,527)(1,635)(13,366)

492

441

3,610

75,433

77,168630,516

Lease assets

297

120

986

Accumulated depreciation

(249)

(82)

(674)

47

38

311

9,634

15,092

123,310118,027

133,005

1,086,737

ASSETS
Current assets:
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating¥

Noncurrent assets:
Property, plant and equipment

Structures, net (Notes 7.1) and 5))

Vehicles, net

Tools, furniture and fixtures, net (Notes 7.1))
Land (Notes 7.5))

Lease assets, net
Construction in progress
Total property, plant and equipment

TODA CORPORATION FINANCIAL STATEMENTS 2022

25

Thousands of
U.S. dollars

Millions of yen
2021

2022

2022

Intangible assets
Leasehold right

5,123

5,123

41,865

Software (Notes 7.1))

2,038

2,448

20,009Goodwill

450

381

3,114

Other

1,685

2,879

23,523

9,298

10,83388,512

Investment securities

186,874

178,983

1,462,400

Stocks of subsidiaries and affiliates (Notes 7.2) and 9)

21,54228,643

234,031

Investments in other securities of subsidiaries and affiliates (Notes 9)

2,387

1,566

12,796

Investments in capital

23

3

26

Long-term loans receivable

102

103

842

Long-term loans receivable from employees

10

5

48

Long-term loans receivable from subsidiaries and affiliates (Notes 7.2))

1,803

1,661

13,575

Claims provable in bankruptcy, claims provable in rehabilitation and other

0

-

-

Long-term prepaid expenses

356

259

2,120

Long-term non-operating accounts receivable

109

3

28

Prepaid pension cost

1,906

2,012

16,443

Other

2,891

3,114

25,450Allowance for doubtful accounts

(201)

(91)

(751)

Total investments and other assets

217,807216,264

1,767,014

345,133

360,1032,942,265¥ 689,230¥ 712,493$ 5,821,504

Total intangible assets

Investments and other assets:

Total noncurrent assets

Total assets

26

TODA CORPORATION FINANCIAL STATEMENTS 2022

Thousands of
U.S. dollars

Millions of yen
2021
LIABILITIESCurrent liabilities:
Notes payable - trade
Electronically recorded obligations - operating
Accounts payable for construction contracts
Short-term loans payable
Commercial paper
Current portion of bonds 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
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities (Notes 10)
Deferred tax liabilities for land revaluation (Notes 10)
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for stock payments for directors
Provision for loss on business of subsidiaries and affiliates
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders' equity:
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus

¥

2,781
21,043
83,19343,75820,000
17
4,427
7,955
23,65032,142
6,478
3,548
2,521
10,383
1,115
263,017

2022

¥

2,156
31,982
57,39255,471
20,00015,000
14
3,116
5,767
26,77437,706
5,586
3,782
2,580
11,3404,413
283,083

2022$

17,618261,316
468,929453,231
163,412122,559
118
25,46547,123
218,762
308,081
45,64030,90321,081
92,65536,0592,312,960

50,00030,04336
24,251
6,389
20,219
127
236
427
444
2,922
135,100
398,118

45,00036,52828
22,2796,124
20,353
128
240
1,608
411
3,211
135,915
418,998

367,677
298,463229
182,033
50,043
166,303
1,045
1,966
13,1393,366
26,241
1,110,510
3,423,471

23,001

23,001

187,936

25,57325,57325,573
198
25,771

208,948
1,623
210,571Retained earnings
Legal retained earnings
Other retained earnings
Reserve for construction
General reserve
Retained earnings brought forward
Total retained earnings

5,750

5,750

46,98450,00091,774
21,187
168,71250,000101,774
18,780176,305

408,530
831,560
153,450
1,440,525

Treasury stock
Total shareholders' equity(9,388)207,899(8,462)
216,617(69,142)
1,769,891

79,430108
3,674
83,213291,112¥ 689,230

73,419385
3,073
76,878
293,495¥ 712,493

599,878
3,152
25,110628,1412,398,033$ 5,821,504

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

TODA CORPORATION FINANCIAL STATEMENTS 2022

27

Non-consolidated Statements of Income
Toda Corporation - For the years of March 31, 2021 and 2022
Thousands of
U.S. dollars

Millions of yen

Net sales:
Net sales of construction contracts
Net sales of investment development business and otherTotal net sales
Cost of sales:
Cost of sales of construction contracts
Cost of sales of investment development business and otherTotal cost of sales
Gross profit:
Gross profit on construction contracts
Gross profit on investment development business and otherTotal gross profit
Selling, general and administrative expenses
Directors’ compensations
Provision for share allocation to directors
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
Amortization of goodwill
Taxes and dues
Insurance expenses
Miscellaneous expenses
Total selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Interest on securities
Dividend income
Dividend income of insurance
Miscellaneous income
Total non-operating income
Non-operating expenses:
Interest expenses
Interest on bonds
Commission fee
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets (Notes 8.1))
Gain on sales of investment securities
Other
Total extraordinary income

28

TODA CORPORATION FINANCIAL STATEMENTS 2022

2021

2022

2022

¥ 448,130
13,249461,380¥ 430,983
20,786
451,770$ 3,521,394
169,839
3,691,233

395,887
7,631
403,519

380,879
14,958395,837

3,112,015
122,217
3,234,232

52,242
5,618
57,861

50,103
5,828
55,932

409,378
47,622457,000440
53
10,970
4,255
99
1,250
1,693
720
172
1,493
763
84
2,259
286
293
499
197
1,727
1,465
69
2,201
35
1,636
32,671
25,189480
36
11,440
4,141
108
913
1,757
706
191
1,577
912
88
2,278
297
(178)
608
194
2,047
1,760
69
1,543
36
2,380
33,392
22,5403,922
296
93,473
33,836887
7,466
14,3605,775
1,562
12,8887,454
720
18,6192,431(1,461)
4,972
1,590
16,73014,384566
12,608298
19,446
272,833
184,167

60
0
3,413
257
819
4,550

39
0
3,724
276
506
4,547

324
0
30,431
2,259
4,137
37,153

790
165
518
196
1,670
28,069

583
195
210
101
1,091
25,995

4,771
1,595
1,722
830
8,919
212,401

18
2,610
84
2,713

0
3,008
280
3,290

7
24,582
2,293
26,882Extraordinary loss:
Loss on abandonment of noncurrent assets (Notes 8.2))
Impairment loss
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries and affiliates
Provision for loss on business of subsidiaries and affiliates
Other
Total extraordinary losses
Profit before income taxes and non-controlling interests
Income taxes-current
Income taxes-deferred
Total income taxes (Notes 10)
Profit for the year

¥

1,603
88
431
3,005
176
634
5,939
24,843
8,987
(804)
8,182
16,660

¥

1,542
492
0
1,189
1,181
344
4,750
24,535
7,966
353
8,320
16,215

12,604
4,024
7
9,715
9,650
2,811
38,813
200,470
65,094
2,885
67,979$ 132,491

Non-consolidated Statements of Changes in Net Assets
Toda Corporation - For the years ended March 31, 2021 and 2022
Millions of yen

Capitalstock

Balance at March 31, 2020
Changes during period
Provision of general reserve
Dividends from surplus
Profit for the year
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Reversal of revaluation reserve forland
Net changes of items other thanshareholders' equity
Total changes of items
during the period
Balance at March 31, 2021
Changes during period
Provision of general reserve
Dividends from surplus
Profit for the year
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Reversal of revaluation reserve forland
Net changes of items other thanshareholders' equity
Total changes of items
during the period
Balance at March 31, 2022

Capital surplus

Total
net
assetsValuation and translation
adjustments

Shareholders’ equity

Total
Valuation Devaluation
Total differ- ferred Revalandshare- ence on gains or uationtransholders’ available- losses reserve
lationequity for-sale on for land
adjustsecurities hedges
ments

Treasurystock

Retained earnings

Legal
Total
Legal Other Total
retainedretained
capital capital capital
Other retained earnings
earnearnsurplus surplus surplus
ings
ings
Retained
Reserve
General earnfor conreserve ings
struction
brought
forward¥23,001 ¥25,573¥- ¥25,573 ¥5,750 ¥50,000 ¥71,774 ¥31,610 ¥159,135 ¥(9,392) ¥198,317 ¥51,957¥(11) ¥4,584 ¥56,530 ¥254,848

-

-

-

-

-

- 20,000 (20,000)- (7,993) (7,993)- 16,660 16,660-- (7,993)- 16,660
5
5
(0)
(0)
-

-

-

-

- (7,993)- 16,660
5
(0)
-

-

-

-

-

-

-

-

909

909

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- 27,472

119(909) 26,682 26,682

-

-

-

-

-

- 20,000 (10,422)

9,577

4

9,581 27,472

119(909) 26,682 36,263¥23,001 ¥25,573¥- ¥25,573 ¥5,750 ¥50,000 ¥91,774 ¥21,187 ¥168,712 ¥(9,388) ¥207,899 ¥79,430

-

-

198
-

198
-

-

- 10,000 (10,000)- (9,223) (9,223)- 16,215 16,215
600
600

-

-

-

-

-

-

-

-

-

-

198

198

-

- 10,000 (2,406)

7,593¥23,001 ¥25,573

909-- (9,223)- 16,215
32
32
(1)
(1)
894 1,093600

909¥108 ¥3,674 ¥83,213 ¥291,112

-

-

-

- (6,011)

277(600) (6,334) (6,334)

925

8,717 (6,011)

277(600) (6,334)¥198 ¥25,771 ¥5,750 ¥50,000 ¥101,774 ¥18,780 ¥176,305 ¥(8,462) ¥216,617 ¥73,419-- (9,223)- 16,215
32(1)- 1,093600

2,383¥385 ¥3,073 ¥76,878 ¥293,495

TODA CORPORATION FINANCIAL STATEMENTS 2022

29

Thousands of U.S. dollars
Valuation and translation
adjustments

Shareholders’ equity

Capitalstock

Balance at March 31, 2021
Changes during period
Provision of general reserve
Dividends from surplus
Profit for the year
Disposal of treasury stock
Purchase of treasury stock
Increase by share exchanges
Reversal of revaluation reserve forland
Net changes of items other thanshareholders' equity
Total changes of items
during the period
Balance at March 31, 2022

Capital surplus

Total
Valuation Devaluation
Total differ- ferred Revalandshare- ence on gains or uationtransholders’ available- losses reserve
lationequity for-sale on for land
adjustsecurities hedges
ments

Treasurystock

Retained earnings

Legal
Total
Legal Other Total
retainedretained
capital capital capital
Other retained earnings
earnearnsurplus surplus surplus
ings
ings
Retained
Reserve
General earnfor conreserve ings
struction
brought
forward$187,936 $208,948$- $208,948 $46,984 $408,530 $749,854 $173,113 $1,378,482 $(76,707) $1,698,660 $648,996
-

-

1,623
-

1,623
-

-

- 81,706 (81,706)- (75,358) (75,358)- 132,491 132,491- 4,910 4,910

-

-

-

-

-

-

-

-

1,623

1,623

-

- 81,706 (19,663) 62,042$187,936 $208,948- (75,358)- 132,491
265
265
(9)
(9)
7,310 8,933- 4,910

-

Total
net
assets$884 $30,020 $679,901 $2,378,561--- (75,358)- 132,491
265(9)- 8,933- 4,910- (49,117)

2,268 (4,910) (51,759) (51,759)

7,565 71,231 (49,117)

2,268 (4,910) (51,759) 19,471$1,623 $210,571 $46,984 $408,530 $831,560 $153,450 $1,440,525 $(69,142) $1,769,891 $599,878$3,152 $25,110 $628,141 $2,398,033

-

-

-

-

Notes to Non-consolidated Financial Statements
Toda Corporation

1. Basis of Presenting Non-consolidated Financial Statements
The non-consolidated financial statements presented herein of Toda Corporation(the "Company") are prepared in accordance with the provisions set forth in
the Financial Instruments and Exchange Law of Japan, and in conformity withaccounting principles generally accepted in Japan.
These non-consolidated financial statements incorporate certain modifications
in format so as to make the financial statements more meaningful to readers outside
Japan.
These modifications have no effect on total assets, net sales, retained
earnings or profit for the year.

(U.S. Dollar Amounts)
The accounts of non-consolidated financial statements presented herein are
expressed in Japanese yen by rounding down to nearest million.
The U.S. dollar amounts are included solely for convenience and have beentranslated, as a matter of arithmetical computation only, at the rate of ¥122.39= US$1, the exchange rate prevailing on the Tokyo foreign exchange market on
March 31, 2022, and have been then rounded down to the nearest thousand. Thistranslation should not be construed as a representation that the yen amounts
actually represent, have been or could be converted into U.S. dollars at this or
any other rate.

2. Summary of Significant Accounting Policies
1) Standards and evaluation methods for significant
assets(a)	Short term investment securities and investment securities
Held-to-maturity debt securities
Amortized cost method (straight-line method)
Stocks of subsidiaries and affiliates
Stated at cost, determined by the moving-average method
Available-for-sale securities∙ Other than equity securities without market prices:Stated at fair value (the difference between the book value and thefair value is recorded as a component of net assets, while the cost of
securities sold is computed using the moving-average method)∙ Equity securities without market prices:Stated at cost, determined by the moving-average method
In addition, the valuations for investments in investment businesslimited partnerships and similar partnerships (those deemed to be
securities under Article 2, Paragraph 2 of the Financial Instruments
and Exchange Law of Japan) are based on recent financial statements
available according to the settlement closing dates stipulated in thepartnership contracts, and are recorded in the net amounts equivalent
to their equity.

30

TODA CORPORATION FINANCIAL STATEMENTS 2022

The accounting methods are as follows:
In the case of investment for the main business purpose, theequity-equivalent profit and loss to be attributable is recorded in"operating profit and loss" and added to or subtracted from "investment
securities" or "investments in other securities of subsidiaries andaffiliates".
In the case of investment for purposes other than themain business purpose, the equity-equivalent profit and loss to be
attributable is recorded as "non-operating profit and loss" and added
to or subtracted from "investment securities" or "investments in othersecurities of subsidiaries and affiliates".
(b) Derivatives
Stated at fair value.
(c) Inventories
Costs on uncompleted construction contracts
Stated at cost, determined by the specific identification cost method
Real estate for saleStated at cost, determined by the specific identification cost method (Thebook value on the non-consolidated balance sheets is presented after
write-down for decline in profitability.)

(d) Other inventories
Raw materials and supplies
Stated at cost, determined by the weighted average method (The bookvalue on the non-consolidated balance sheets is presented after writedown for decline in profitability.)
Costs on real estate businessStated at cost, determined by the specific identification cost method (Thebook value on the non-consolidated balance sheets is presented after
write-down for decline in profitability.)
2) Methods of depreciation and amortization depreciable
assets(a)	Property, plant and equipment (excluding lease assets)
The declining-balance method is used. However, the straight-line method
is used for buildings (excluding building fixtures) acquired on and after
April 1, 1998 and building fixtures and other structures acquired on andafter April 1, 2016.
Standards Identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual value.
(b) Intangible fixed assets (excluding lease assets)
The straight-line method is used.
Standards identical to regulations in the Corporate Income Tax
Law are utilized to determine expected lifetime and residual value.
However, the amortization of software used by the Company iscomputed using the straight-line method based on the estimated usefullife.
(c) Lease assets
Leased assets under finance leases other than those that are deemed totransfer ownership to lessees
Depreciation is based on the straight-line method over the leaseterm of the leased assets with no residual value.
3) Allowances and provisions(a) Allowance for doubtful accounts
The allowance for doubtful trade receivables and loans has been provided
based on historic loss experience for general accounts and also includes
the aggregate amount of the estimated loss for the accounts for which
concern actually exists for collectability.
(b) Provision for bonuses
This is provided for the payment of bonuses for employees, based on
expected payment amount.
(c) Provision for warranties for completed construction
To cover expenses for defects claimed concerning completed work, thisis provided based on the estimated amount of compensation in the future
for the work completed during the fiscal year.
(d) Provision for retirement benefits
To prepare for retirement benefits to employees, the provision for
retirement benefits is calculated based on estimated amounts ofretirement benefit obligations and pension assets as of the fiscal yearend.
1. Period attribution method for estimated retirement benefits
The estimated amount of retirement benefit is allocated to periods ofservice based on the benefit formula.
2. Actuarial differences expense processing method
Actuarial differences are amortized commencing the following year
after the difference is recognized primarily by the straight-line method
over a period of five years.
(e) Provision for loss on construction contracts
The provision for loss on construction contracts is provided at theestimated amount for the future losses on contract backlog at the fiscal
year-end which will be probably incurred and which can be reasonably
estimated.
(f) Provision for directors' retirement benefits
To prepare for the payment of retirement benefits for executive officers,
the provision is provided at the amount to be paid according to internal
regulations if they had retired at the fiscal year-end.
(g)	Provision for loss on business of subsidiaries and affiliates
To prepare for the loss of investment in subsidiaries and affiliates, theamount that is expected to be borne beyond the investment and loans to
subsidiaries and affiliates is estimated.
(h) Provision for stock payments to directors
The provision for stock payments to directors is provided for stock award
debt based on predetermined regulations for awarding stock, which isprepared for future awards of the Company's shares to its directors andexecutive officers.

4) Recognition of net sales from construction
contracts and related costs
In the building construction and civil engineering, etc., which are theCompany's principal business, the Company has the performance obligations
to construct buildings or structures, etc. and deliver the outcomes tocustomers based on construction contracts. The construction contracts area transaction in which performance obligations are satisfied over time, andthe Company recognizes revenue according to the progress in the satisfactionof performance obligations. The Company has applied the method based on
the percentage of costs incurred by the end of each reporting period to thetotal expected costs as a method of estimating the progress of construction
works to the satisfaction of performance obligations.
In addition, revenue is recognized by the cost recovery method when the
progress in the satisfaction of performance obligations cannot be reasonably
estimated, but the costs incurred are recoverable. For construction contracts
with a very short term between the commencement date of the transaction in
the construction contract and the date when the performance obligations are
expected to be fully satisfied, the Company applies alternative treatment anddo not recognize revenue over time.
In this case, the Company recognizes revenue when the performanceobligations are fully satisfied.
When certain refund obligations to customers are expected to arise, suchas compensation for damages incurred in association with performance ofcontracts, the Company reduces revenue to the extent of the estimatedrefund liability.
The Company estimates a financing component of each individual construction
contract and determine whether it is significant because the timing of receiptof the consideration for the transaction of the construction contracts varies
depending on the terms of each individual construction contract. As a result,
the Company determined that there are no construction contracts with asignificant financing component.
5) Hedge Accounting
The Company applies hedge accounting as follows:(a) Method of hedge accounting adopted
Deferral hedge accounting
If the interest rate swap contracts are used as hedge and meet certain
hedging criteria, net amounts to be paid or received under the interest rate
swap contracts are added to or deducted from the interest or liabilities
for which the swap contract were executed ("special treatment").
(b) Measure and objects
1. Measures: Forward foreign exchange contracts
Objects: Transactions to be paid in foreign currencies in cases ofoverseas construction of work and overseas procurement ofmaterials
2. Measures: Interest rate swap
Objects: Borrowings(c) Hedging principles:
Based on internal regulations which stipulate the execution authority
regarding on derivative transactions and those for transaction limits, theCompany utilizes hedges to minimize the risk of currency exchange rateand interest rate fluctuations associated with the hedge objects.
(d) Evaluation method of effectiveness of hedging:
During the period from the time when the hedging first started until thefiscal year-end, the Company has been assessing the hedge effectivenessprimarily by comparing, in terms of variation amounts, (1)cumulative
cash flow changes or exchange rate changes of the hedge objects and(2)cumulative cash flow changes or exchange rate changes of the hedge
measures.
However, the evaluation of hedge effectiveness is omitted forinterest swaps as they meet certain hedging criteria for the special
treatment.
6) Other significant matters for preparing nonconsolidated financial statements(a) Accounting for retirement benefits
The method of accounting for unrecognized actuarial differences toretirement benefits is different from the method of accounting forconsolidated financial statements.
(b)	Principles and procedures of accounting treatment adopted when theprovisions of related accounting standards, etc. are not clear
The accounting method for joint venture (JV) in the construction industry
is mainly based on the method of recognizing assets, liabilities, income
and expenses according to the investment ratio of the members.

TODA CORPORATION FINANCIAL STATEMENTS 2022

31

3. Significant Accounting Estimates
1) Estimates for the method of recognizing revenue over time(the so-called old percentage of completion method)(a) Amount recorded in the non-consolidated financial statements

Thousands of
U.S. dollars

Millions of yen

2021

For the years ended March 31
Net sales of construction contracts

¥

2022

428,283¥2022

410,386$ 3,353,105(b)	Information about the content of significant accounting estimates for the identified item
The information is the same as the content described in the consolidated financial statements "Notes (3. Significant Accounting Estimates, 1) Estimates for the
method of recognizing revenue over time (the so-called old percentage of completion method))".
2) Estimates for impairment loss on fixed assets(a) Amount recorded in the non-consolidated financial statements

Thousands of
U.S. dollars

Millions of yen

2021

For the years ended March 31
Impairment loss

¥

2022
88

¥

2022
492

$

4,024

(b)	Information about the content of significant accounting estimates for the identified item
The information is the same as the content described in the consolidated financial statements "Notes (3. Significant Accounting Estimates, 2) Estimates for
impairment loss on fixed assets)".

4. Change in Accounting Policies
1) Application of the Accounting Standard for Revenue Recognition
The Company has applied the Accounting Standard for Revenue
Recognition (ASBJ Statement No.29 issued on March 31, 2020) from the
beginning of the current fiscal year, revenue is recognized at the amount
expected to be received in exchange for the promised goods or services
when control of the goods or services is transferred to the customer. Until
the previous fiscal year, revenue associated with construction contractsof which the outcome of the progress of construction works can bereliably estimated was accounted for by the percentage of completion
method. The accounting policy has been changed at the beginningof the current fiscal year, and revenue is recognized over time as theperformance obligations to transfer goods or services to the customer issatisfied if control of the goods or services is transferred to the customer
over time. The Company has applied the method based on the percentage
of costs incurred by the end of each reporting period to the total expected
costs as a method of estimating the progress of construction works tothe satisfaction of performance obligations.
In addition, revenue is recognized by the cost recovery method when
the progress in the satisfaction of performance obligations cannot bereasonably estimated, but the costs incurred are recoverable.
For construction contracts with a very short term between thecommencement date of the transaction in the construction contract
and the date when the performance obligations are expected to be
fully satisfied, the Company applies alternative treatment and does notrecognize revenue over time.
In this case, the Company recognizes revenue when the performanceobligations are fully satisfied. Furthermore, until the previous fiscal
year, with respect to revenue related to the sales of construction
materials, etc., the Company recognized as revenue the gross amountof consideration received from customers. In the current fiscal year,
as a result of examining the role (principal or agent) in providing goods
or services to customers, the Company has changed to a method ofrecognizing revenue in the net amount.
In accordance with the transitional treatment prescribed in the proviso
of Paragraph 84 of the Accounting Standard for Revenue Recognition,
the cumulative effect of retrospective application of the new accounting
policy prior to beginning of the current fiscal year is added to or deductedfrom retained earnings at the beginning of the current fiscal year, and the
new accounting policy is applied from such beginning balance.
However, the Company has applied the method prescribed in Paragraph 86of the Accounting Standard for Revenue Recognition and has not applied
the new accounting policy retrospectively to contracts for which almost
all revenue amounts were recognized in accordance with the previous
treatment prior to the beginning of the current fiscal year.
As a result, although this change was no effect in retained earnings at the
beginning of the current fiscal year, net sales and cost of sales increasedby ¥32 thousand million (US$26,474 thousand) and ¥32 thousand million(US$26,474 thousand) in the non-consolidated statements of income at
the current fiscal year.
In accordance with the transitional treatment stipulated in Paragraph89-3 of the Accounting Standard for Revenue Recognition, the notes to"Revenue Recognition" for the previous fiscal year are not presented.
2) Application of the Accounting Standard for Fair Value Measurement
The Company has applied the Accounting Standard for Fair Value
Measurement (ASBJ Statement No.30 issued on July 4, 2019) from the
beginning of the current fiscal year, in accordance with the transitional
treatment prescribed in Paragraph 19 of the Accounting Standard for Fair
Value Measurement and Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No.10 issued on July 4, 2019).
The new accounting policy prescribed by the Accounting Standard is to be
applied prospectively. This change has no effect on the non-consolidated
financial statements.

5. Change in Presentation Methods(Non-consolidated Statements of Income)Due to the change in the management accounting treatment method
implemented by the Company in the fiscal year ended March 31, 2022,
regarding to "Selling, general and administrative expenses" of the fiscal
year ended March 31, 2021, "Depreciation" included in "Welfare expenses","Repair and maintenance", "Stationery expenses", "Correspondence
and transportation expenses", "Research study expenses", "Advertisingexpenses", "Rents" and "Miscellaneous expenses" are aggregated in"Depreciation" listed separately.
To reflect this change in presentation, the non-consolidated financial

32

TODA CORPORATION FINANCIAL STATEMENTS 2022

statements for the fiscal year ended March 31, 2021 have been reclassified.
As a result, "Welfare expenses", "Repair and maintenance", "Stationery
expenses", "Correspondence and transportation expenses", "Researchstudy expenses", "Advertising expenses", "Rents", "Depreciation" and"Miscellaneous expenses" among "Selling, general and administrative
expenses" for non-consolidated statements of income have been reclassified
and are as follows:Thousands of
U.S. dollars

Millions of yen

For the fiscal year ended March 31, 2021
Welfare expenses
Repair and maintenance
Stationery expenses
Research study expenses
Advertising expenses
Rents
Depreciation
Miscellaneous expenses

Beforereclassification
¥
724
235
1,968
2,438
324
1,886
545
1,637

After
reclassification
¥
720
172
1,493
2,259
286
1,727
1,465
1,636

After
reclassification
$
5,887
1,407
12,204
18,4592,340
14,114
11,974
13,372

6. Additional Information(Performance-linked stock compensation plan for directors and executive
officers)
Since the same content is described in the consolidated financial statements"Notes (7. Additional Information)", the notes are omitted.

(Accounting estimates associated with the spread of COVID-19)
Since the same content is described in the consolidated financial statements"Notes (7. Additional Information)", the notes are omitted.

7. Notes to Non-consolidated Balance Sheets

Thousands of
U.S. dollars

Millions of yen

As of March 31
1) Advanced depreciation:
Buildings
Structures
Tools, furniture and fixtures
SoftwareTotal
2) Pledged assets:
Stocks of subsidiaries and affiliates
Long-term loans receivable from subsidiaries and affiliates
Total3) Contingent liabilities (guarantee liabilities)
4) Loan commitment agreement:
Maximum limit under the agreement
Loan balance outstanding
Difference (unused portion)

2021
¥

2022
46
7
8
61

¥

462
626
¥ 1,088¥ 7,913¥¥ 30,000¥ 30,000

¥

130
2
7
8
148

$

435
610
¥ 1,046¥ 6,818$¥ 30,000¥ 30,000$ 245,118$ 245,118

¥

¥

2022

$

$
$

1,065
21
57
69
1,214
3,557
4,990
8,547
55,7095) Change in holding purpose of assets

The following noncurrent assets were reclassified as real estate held for sale due to change in holding purpose.

Thousands of
U.S. dollars

Millions of yen

As of March 31

2021

2022

Buildings
Structures
Land

¥

¥

830
2
1,557

2022
-

The following real estate held for sale was reclassified as noncurrent assets due to change in holding purpose.
2021

Land

¥

2022
-

-

Thousands of
U.S. dollars

Millions of yen

As of March 31

$

¥

2022
510

$

4,169

TODA CORPORATION FINANCIAL STATEMENTS 2022

33

8. Notes to Non-consolidated Statements of Income

Thousands of
U.S. dollars

Millions of yen

2021

For the years ended March 31
1) Gain on sales of noncurrent assets:
Machinery and equipment
Tools, furniture
Total2) Loss on abandonment of noncurrent assets:
Buildings and structures
Other
Dismantlement cost
Total

9. Securities
For the year ended March 31, 2021
The stocks of subsidiaries and affiliates whose fair value is extremely
difficult to calculate due to the lack of market prices are as follows:
Stocks of subsidiaries
Stocks of affiliated companies
Investments in Limited Liability Company
Affiliated companies preferred equity securities
Investments in silent partnerships
Total

2022

¥

18
0
18

¥

22
1,580
¥ 1,603

¥

¥

0
0
0

$

160
20
1,362
¥ 1,542

$

¥

¥

2022
3
4
7

$

$

1,307
166
11,12912,604

Millions of yen

2021¥ 17,598
3,943
349
1,200
838
¥ 23,929

Note: For the stocks of subsidiaries and affiliates whose fair value is extremely difficult to calculate, the fair value are not shown.

For the year ended March 31, 2022
The book value of the stocks of subsidiaries and affiliates is as follows:

Millions of yen

Thousands of
U.S. dollars

2022

2022

¥ 24,695
3,947
325
1,240
¥ 30,209$ 201,775
32,256
2,658
10,138$ 246,828

Stocks of subsidiaries
Stocks of affiliated companies
Investments in Limited Liability Company
Investments in silent partnerships
Total

Note: 1. The stocks of subsidiaries and affiliates are not shown because they are equity securities without market prices.
2. The stocks of subsidiaries and affiliates includes in the investments in partnerships for which equity interests are recorded on a net basis.
In addition, the fair value of the investments are omitted.

10. Deferred Tax Accounting
The tax effects of temporary differences which gave rise to deferred tax assets
and liabilities at March 31, 2021 and 2022 are as follows:
As of March 31
Deferred tax assets:
Real estate for sale
Buildings, structures and land
Investment securities
Allowance for doubtful receivables
Provision for bonuses
Provision for loss on construction contracts
Provision for retirement benefits
Other
Subtotal
Less: valuation allowance
Deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Prepaid pension cost
Other
Deferred tax liabilities
Net deferred tax assets (liabilities)

Millions of yen

2021
¥

¥

161
698
1,954
545
1,998
771
6,187
3,524
15,842(4,065)
11,777(34,905)
(583)
(539)
(36,028)¥ (24,251)

Thousands of
U.S. dollars

2022

2022

¥

183
838
2,253
490
1,727
789
6,228
3,566
16,078(4,883)¥ 11,195

$

1,498
6,852
18,4094,009
14,1186,451
50,88829,144
131,373(39,899)$ 91,473(32,192)
(615)
(665)
(33,474)¥ (22,279)(263,035)(5,031)(5,440)(273,507)$ (182,033)

In addition to the above, the Company recognized deferred tax liabilities of ¥6,389 million and ¥6,124 million (US$50,043 thousand) related to revaluation
reserve for land at March 31, 2021 and 2022, respectively.

34

TODA CORPORATION FINANCIAL STATEMENTS 2022

Reconciliation between the statutory tax rate and the effective tax rate
Statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable income
Inhabitant taxes (per capita levy)
Valuation allowance
Other
Effective tax rate

2021
30.6%
0.9%
(1.2%)
0.7%
3.5%(1.6%)
32.9%

2022
30.6%
1.1%
(1.2%)
0.7%
3.3%(0.6%)
33.9%

11. Revenue Recognition
Information as a basis to understand revenue from contracts with customers is described in non-consolidated financial statements "Notes (2. Summary of Significant
Accounting Policies, 4) Recognition of net sales from construction contracts and related costs)".

12. Significant Subsequent Events(The issue of unsecured straight bonds)
Since the same content is described in the consolidated financial statements "Notes (26. Significant Subsequent Events)", the notes are omitted.

TODA CORPORATION FINANCIAL STATEMENTS 2022

35