Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Toda Corporation Group
Formulation of “Medium-Term Management Plan 2024 - Rolling Plan”

May 17, 2022

Company name: TODA CORPORATION
Stock exchange listing: Tokyo
Code number: 1860
URL: https://www.toda.co.jp/
Representative: Seisuke Otani
President and Representative Director
Contact: Yoshirou Shima
Corporate Officer General Manager, General Planning Div.
Phone: 03-3535-1357

We are pleased to advise that we have revised the “Medium-Term Management Plan 2024”
announced in May 2020 and formulated the “Medium-Term Management Plan 2024 - Rolling Plan”
covering the three-year period through FY2024.
The Group has positioned the five-year period from FY2020 to FY2024 as a "transformation phase"for developing a new revenue base and has been working to reform its business portfolio bystrengthening the competitiveness of its construction business and growth investments.
In the meantime, the assumptions we made for the original plan are rapidly changing against thebackdrop of the prolonged COVID-19 outbreak, soaring prices, and stagnant construction investment.
In addition, we recognize that it is important for us to clarify strategies to realize the "Future Vision
CX150" announced in July 2021, and to make group-wide efforts to achieve the goals.
Based on these recognitions, we have revised some of our performance targets, strengthen ourstrategies to achieve them, and achieve sustainable growth by promoting further reforms.
１．Basic Policies of the Rolling Plan・・To provide values that are truly recognized by all stakeholders through the realization of theFuture Vision CX150.
To strengthen the business portfolio by promoting growth investments such as the New
TODA Building (scheduled for completion in 2024) and the floating offshore wind power
generation business (scheduled to start operation in 2024).

Future Vision CX150

We have formulated the “Future Vision CX150 (Corporate Transformation towards TODA Group’s
150th year)" on the 140th anniversary of its founding in 2021, and beyond that, as a vision for the150th anniversary of its founding in 2031.
MissionA corporate group that realizes “joy”
1Vision of the society we want to realize

TODA CORPORATION

Co-creative society

A society in which people cooperate and collaborate to create a virtuous cycle that generates newvalues, resulting in a sense of well-being and sustainability.

Values, the ideas and actions we value

Gatekeeper of values

We interface between the demand side and the supply side, creating unprecedented combinationsof information and functionality to create new values.
［Values we provide］
1. Improved experience values
2. Realization of latent needs
3. Creation of social capitalBusiness Development Domains： We provide customer values in 4 domains contributing to therealization of a co-creative society.
Smart Innovation Domain
Business & Lifestyle
DomainUrban & Social Infrastructure
DomainEnvironmental and Energy
DomainBusiness Development Domains

Pursuing productivity and job satisfaction through digitaltransformation of workplaces and offices.
Creating an environment that is more productive,comfortable, and conducive to physical and mental healthfor facility users.
Creating diverse, varied, and attractive urban functions
based on security and safety (resilient).

Contributing to carbon neutrality through thedevelopment, installation and supply of sustainableenergy technologies.

２．Group Performance Targets for FY2024
Key Points of the Rolling Plan

・ Revised some performance targets considering outlook of business environment.
・ To secure final profit and improve capital efficiency, while reviewing and strengthening
the shareholder return policy.

（1） Consolidated net sales and operating income

FY2021 Actual

FY2024 Target

Consolidated net sales

501.5 billion yen

Approx. 600 billion yen

Net income

18.5 billion yen

26 billion yen or more

Operating income

24.3 billion yen

4.9％

Operating income margin
ROE (return on equity)
Labor productivity(non-consolidated)

5.9％

14.58 million yen

33 billion yen or more

5.5％ or higher

8.0％ or higher

15 million yen or more

※ Labor productivity = Value added (operating income + total labor costs) / Number of employees (averageduring the period, including temporary employees, etc.)2

TODA CORPORATION（2） Net sales and operating income by business segment

・ Despite the downward revision in the architectural construction business, we plan to achieve
our performance targets through earnings growth in the civil engineering and strategicbusinesses.
FY2021 Actual

Consolidated net sales

Architectural Construction Business
Civil Engineering Business
Strategic

Business

Investment Development/
Environmental & Energy
Group Companies

Operating income

Architectural Construction Business
Civil Engineering Business
Strategic

Business

Investment Development/
Environmental & Energy
Group Companies

FY2024 Target

501.5 billion yen

600 billion yen

24.4 billion yen

50 billion yen

304.6 billion yen

360 billion yen

147.9 billion yen

145 billion yen

45.1 billion yen

24.3 billion yen(4.9)

3.8 billion yen(15.8)

7.8 billion yen
11.9 billion yen

33 billion yen(5.5)

5.3 billion yen(10.6)(8.1)

10 billion yen
14.2 billion yen(4.2)

3.5 billion yen(2.6)

1.9 billion yen

55 billion yen※ Consolidated net sales and operating income include consolidated eliminations.
※ Figures in parentheses indicate profit margins.

(2.8)
(9.8)
(6.4)

（3） Shareholder return

・ Our policy is to achieve a DOE of 2.5% or more, a total return ratio of 40% or more, to return
profits directly to shareholders and to increase the share price over the medium to long term.
Planned for FY2021

DOE (dividends on equity ratio）

2.6％

43.0％

Total return ratio※ DOE (dividends on equity ratio) = Total dividends / Shareholders' equity

FY2024 Target

2.5% or more

40.0% or more

※ Total return ratio = Total amount returned to shareholders (Total dividends + Total share buybacks) /Net income attributable to shareholders of the parent company

３．Key Strategies

Key Points of the Rolling Plan

Creating customer values based on the “Value Unit” linked to the Future Vision
CX150.
・ Strengthen investment activities. Accelerate asset replacements and sales ofstrategic equity holdings as a source of funds for such investments.
・ CO2 emission reduction targets revised upward to achieve decarbonization.
・ Adopted a new "labor productivity per hour" measure to promote work reforms thatenhance job satisfaction.
・（1） Increase in added-value①

Promotion of Smart Innovation

・ Improving safety and productivity through mechanized construction and the use of newtechnologies and ICT.

3TODA CORPORATION

・ Creation of new business models through digital transformation (BIM/CIM, i-Construction,etc).

②Enhancement of experience value (customer experience)・ Design “the experience” we offer before the customer starts using the construction, creating
new customer value.
・ Promote technology and solution development (internal and external collaboration, open
innovation, etc) based on the Value Unit.
CX150 Business
Development Domains

Value UnitIntellectualproductivity

Business & Lifestyle
DomainIncreased efficiency
Wellness

Urban revitalization

Urban & Social
Infrastructure
DomainEnvironmental and Energy
DomainFocus Areas (Applications)
Offices, schools

Manufacturing and logistics
facilities
Hospitals, lodging and recreationalfacilities
Redevelopment

Regional development

Land development (parceldevelopment)

EnergyRenewable energy

Transportation
network

Roads, railroads (shield tunnelling)※ Value Unit: Classification of customer value (experience value) to be provided in each business③

development domain.

Priority management businesses

・ The New TODA Building, overseas business, and renewable energy business have been
identified as priority management businesses, with the aim of achieving medium- andlong-term growth through the active involvement of top management.
Business・New TODA
Building
Overseasbusiness・・・Renewableenergy business・Main Initiatives
The building is now being constructed as a flagship of ourtechnological capabilities, offering the highest level of safety
and environmental performance as well as a smart buildingthat makes full use of digital technology.
※ Construction to be completed in 2024
Expanding the construction and development business with afocus on the growing Southeast Asian market.
Operating cash generation and reinvestment by replacing
assets as appropriate.
Commercialization and deployment of our proprietary hybrid
spar-type floating offshore wind power generation facility.
※ Scheduled to start operation in 2024 (Nagasaki-Goto
Floating Offshore Wind Farm).
Promoting technological development to win orders for
implantable offshore wind turbines.

4（2） Investment plan and capital allocation (appropriate allocation)

TODA CORPORATION

・ To achieve ROE of 8% over the medium to long term, we enhance capital efficiency byadopting ROIC (return on invested capital) by business, while strengthening the businessportfolio through investment in growth and intangible assets.
・ To secure operating income (80 billion yen or more over the three-year period) as a source offunds for investment, we will sell our assets (67 billion yen) and the strategic equity holdings(10 billion yen or more per year, on market-value basis), and utilize interest-bearing debt
(D/E ratio of 0.8 times or less).
Classification and Purposes
GrowthInvestments

Areas of Investment

Real estatedevelopment

Expansion of businessdomainIncreasing the value ofassets held

Intangible
AssetsInvestments(Recovery by sale)

Environmental andenergy etc(Recovery by sale)

Sub total

Human resources(recruitment, training,etc)
Technology researchand development

Strengthening
management baseEnhancement of
non-financial capital

Machinery and Equipment, etc

Digitization

Sub total

Total［Net Investment]

Investment
Amount(3 Year Cumulative Total)

160 billion yen(65 billion yen)

30 billion yen(2 billion yen)

190 billion yen

3 billion yen

20 billion yen

9 billion yen

32 billion yen
3 billion yen

225 billion yen［158 billion yen]

※ Intangible asset investment is the sum of general and administrative expenses and capitalized assets（3） Strengthening ESG management

・ Establish a corporate brand as an environmentally advanced company throughenvironmental and energy business, decarbonization initiatives, etc.
・ Promote “work-reward reform” so that every employee can experience growth.
・ Strengthen risk management (environment, occupational health and safety, investment,compliance, etc.).
・ Separate the supervisory and the executive functions by reviewing the composition of
the Board of Directors and strengthen each function.
Quantitative Evaluation Indicators

ECO2
emissions

Scope 1 & 2

Ditto

Scope 3

Reduction rate (compared toFY2020)
Basic unit (per 100 millionyen)
Reduction rate (compared toFY2020)
Category 1 Basic Unit (per 100million yen)

5FY2024 Targets(16.8%) or more
11.2t-CO2 or less(10.0%) or more

540.7t-CO2 or lessSG

Total accident frequency rate
Accident frequency rate

Category 11: Basic unit (persqm)

Labor productivity per hour

※ Scope 1: CO2 emissions directly resulting from the use of diesel oil, etc.

TODA CORPORATION
3.5t-CO2 or less1.00 or less0.10 or less

7,500 yen or more

Scope 2: Indirect CO2 emissions from power plants resulting from the purchased electricity/heat.
Scope 3: Indirect emissions other than Scope 1 and 2.

Category 1: Emissions during the production of construction materials.

Category 11: Emissions during the operation of the constructed buildings.

※ Emissions intensity of Scope 1 & 2: Emissions per 100 million yen of sales.

Emissions intensity of Category 1: Emissions per 100 million yen of transaction value.

Emissions intensity of Category 11: Emissions per square meters of total floor space completed.

※ Total accident frequency rate = Total number of occupational accidents / Total working hours (millionhours)

Accident frequency rate = Number of occupational accidents resulting in 4 or more days of absence fromwork / Total working hours (million hours)※ Labor productivity per hour = Value added (Operating income + total labor cost) / Number of employees /Average total actual hours worked

END

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