Results Briefing
for the Year Ended March 31, 2018

May 15, 2018

TODA CORPORATION

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

2

Today’s Schedule

1. Summary of Financial Results
Executive Manager Yushi Kikutani

2. Management Plan Progress Status
President Masanori Imai

3

1. Summary of Financial Results

Executive Manager Yushi Kikutani

41-1. Summary of Financial Results
for the Year Ended March 31, 20185

Highlights: FY2017
 Consolidated net sales: ¥429.0 billion, up 1.5％ year-on-year：

Increase in net sales to external customers at the domestic
Group companies and a progress in works in hand atoverseas subsidiaries increased consolidated net sales by
1.5% year-on-year to ¥429.0 billion.

 Operating income: ¥30.4 billion, up 21.9％ year-on-year：

Continuous measures toward productivity improvement
boosted profitability of the construction business, raising
operating income by 21.9% year-on-year to ¥30.4 billion.

 Orders received (non-consolidated): ¥441.4 billion, down 6.4 ％year-on-year：

Orders for overseas construction rose, but botharchitectural construction and civil engineering orders fell
year-on-year within Japan, bringing down overall orders
received by 6.4% to ¥441.4 billion.
6Summary: FY2017(Billions of yen)

FY2017FY2016

Forecasts(announcedin Apr. 2018)

ActualsChange(year onyear)

422.7

428.0

429.0

1.5%

1.0

Operatingincome

24.9

30.5

30.4

21.9％

-0.0

Ordinary
income

27.1

33.0

33.0

21.5%

0.0

Profit attributable

42.0

25.4

25.4

-39.5%

0.0

471.4

447.0

441.4

-6.4%

-5.5

Consolidated
net sales

to owners of parent

Orders received(non-consolidated)

Difference (vs.
forecast)

7

Main Orders Received
Ordering Parties
Mitsubishi Estate Co., Ltd. andArchitectural others

Name of Works
A Building, Otemachi 2-chome Tokiwabashi district
redevelopment

Construction

CivilEngineering

City of Yokohama, Kanagawa
Prefecture

Reconstruction of Clinical Services Building ofYokohama Municipal Citizen’s Hospital

Waseda University

The first stage construction work of Waseda
University Research and Development CenterGeneral Hanamaki Hospital

Relocation and new construction of General
Hanamaki Hospital

New Chitose Airport Terminal
Building Co., Ltd.

Construction of international terminal building of
New Chitose Airport

Miyazaki Prefectural Government

Construction of Miyazaki Prefectural Governmentbuilding for disaster prevention base within fiscal
year 2017

Kyoto City Sewerage Works
BureauConstruction of headrace tunnel of ShinYamashina Purification Plant

Japan Railway Construction,
Transport and Technology Agency

Shiribeshi Tunnel (Shioya), Hokkaido Shinkansen*Honorific prefixes are omitted. Work names are abbreviations.

81-2. Details of Financial Results9(Consolidated) Toda Group
BusinessConstruction

ArchitecturalConstruction

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.

Thai Toda Corporation Ltd.

18
companies

8companies

Toda Vietnam Co., Ltd.
3 other companies
CivilEngineeringToda Bldg. Partners Co., Ltd.

Real Estate

1company

Toda Road Co., Ltd.

Nisshin Life Co., Ltd.
1 other company

Toda America, Inc.
4companies

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

OtherTowa Kanko Kaihatsu Co., Ltd.

5
companies

Goto Floating Wind Power LLC.
Offshore Wind Farm Construction LLC

10

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

Non-consolidated

SG&A ratio

400.0
40.0

8.0%
6.6%

7.0%
6.1%

30.0
300.0
29.8
27.9

6.0%

31.3
26.8

28.0

25.1
200.0
20.0

4.0%

100.0
10.0

2.0%

0.0

0.0%

FY2016FY2017FY2018 (forecast)11

(Consolidated) Balance Sheets
Assets(Billions of yen)

+27.4

+27.4

563.9

536.5

Current
assets267.5

Liabilities and Net Assets (Billions of yen)
563.9

536.5
Cash and deposits
Notes and accounts
receivable – trade
Securities

+14.2
+2.2
-4.7

Construction-related assets -7.4

96.0
Investments
and otherassets173.0

Noncurrent
assets

104.3

+6.8

Investments
and otherassetsInvestment securities+6.0
Retirement benefit assets +0.6

Unpaid consumption tax, etc. +5.3

Noncurrent
liabilities
87.6

Net
assets226.8

179.8
Mar 2018

Current ratio

-11.8
-4.3

Current
liabilities
207.8

-14.2

+8.3

Mar 2017
120.5%

Current
liabilities
222.0

+12.2
Buildings and structures +2.9
Machinery and vehicles +3.8
Construction in progress -2.1

Noncurrent
assetsCurrent
assets279.8

Notes and accounts
payable – trade
Short-term loans

134.6%

Corporate bonds
10.0
Deferred tax liabilities 9.7

Noncurrent
liabilities
106.7

+19.1

+22.4

Net
assets249.3

Retained earnings
19.5
Valuation difference on
available for sale securities 3.4

Mar 2017
41.7%

Mar 2018
Equity ratio

43.7%

12(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei Stock Average(Billions of yen)

Stock prices (yen)300.0

25,00021,454250.0

19,206

18,90920,00016,758
200.0

185.5
168.7

174.7

154.8

15,000

150.0
110.3

79.2

91.1

96.1

10,000

100.0
5,000

50.0
75.2

75.7

77.6

78.6

Mar-15Mar-16

Mar-17Mar-180

0.0

13

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

79.7

Long-term

+5.1

75.4

(Billions of yen)

75.0

70.2

45.1
40.4

49.9
75.0

34.5

D/E ratio

29.8

25.4

Mar-16

Mar-17Mar-18

0.68x
14.7％

0.45x

0.43x

Mar-19 (forecast)—14(Consolidated) Change in Provision for Loss on
Construction Contracts
Architectural construction

Civil engineering

Overseas(Billions of yen)

4.0
3.28

3.5

0.04

3.0
2.5

2.42

2.0
1.41

1.5

-2.85
Civilengineering
3.17

1.0
0.5
0.0

1.01

Architectural
construction

0.06

Mar-16

Mar-17

0.44
0.33

0.09

Architectural
construction

0.01

Mar-1815

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

Cash and cash
equivalents
at end ofperiod

＋9.5

100.5
Income before income taxes
35.8Notes and accounts payable – trade-11.8
Notes and accounts receivable – trade - 2.2
Costs on uncompleted construction
contracts
7.4
Advances received on uncompleted
construction contracts
1.0

Cash and cash
equivalents
at beginning ofperiod
90.9
Increase in funds Decrease in funds

Operating CF＋19.3

Investing CF Financing CF-7.8-2.0(Mar 31, 2018)(Mar 31, 2017)
Investment securities
Property, plant andequipment

1.9-8.6

Loans
Dividends paid

5.2-4.6

Purchase of treasury stock-2.516

1-3. Performance Forecasts

17Forecasts for FY2018 (Year Ending March 31, 2019)(Billions of yen)

FY2018FY2017
Forecasts

Change(year-on-year)

Consolidated net
sales

429.0

514.0

19.8%

84.9

Operatingincome

30.4

31.0

1.8%

0.5

Ordinary income

33.0

33.3

0.8%

0.2

Profit attributable toowners of the parent

25.4

22.3

-12.4%-3.1

Orders received(Non-consolidated)

441.4

470.0

6.5%

28.5

18

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

Net Sales of Completed
Construction Contracts
Overseas

Overseas

4.0

6.0

6.6
108.0
108.9Civil
Engineering

2.9

105.0

Civil
Engineering(%)
Gross Profit Margin on Completed
Construction Contracts
Civil
Engineering
16.5
Total
13.7

Civil
Engineering
12.8

109.3
Architectural
Construction
12.8

325.9

FY2017358.0

Architectural
Construction
11.7

358.0
Architectural
Construction

FY2018(forecast)

Total
11.8

Architectural
Construction

279.9

FY2017FY2018(forecast)

FY2017FY2018(forecast)19

Non-consolidated Forecasts for FY2018
Amount（billions of yen）

Profitability（%）

Net sales

478.0

Gross profit

57.5

12.0

Profits in the construction
business

55.5

11.8

[Domestic architectural construction][41.8][11.7][Domestic Civil engineering][13.4][12.8]

[0.2]

[4.4]

Profits in investment &development business and other

2.0

22.2

Selling, general andadministrative expenses

28.0

Operating income

29.5

6.2

Ordinary income

31.7

6.6

Income taxes

10.3

Profit21.4[Overseas]

4.520

2. Management Plan
Progress Status
President Masanori Imai

21

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

A corporate group that makes yoursuccess possible

To a new phase to realize the global vision
FY2015 - FY2016

FY2017 - FY2019

Phase I

Phase II

Establishinggrowthfoundation

Building profit base forcontinuous growth（business, mindsetreform）(resource shift and new valuecreation)

FY2020 -Continuousgrowth（tenacity, diversity)222-1. Achievements and Issues

23Changes in Operating Income by Business
Domestic construction business drove profit increases(Strategic businesses)
Investment & Domestic
Domestic
OverseasGroupconstruction development+ new fields companies

Consolidated
eliminations

Domestic Construction
Business（・ Gross profit margin on）
Billions of yen

30.4

completed construction
contracts improved due toproductivity improvements
・ Secured additional
construction projects in thecivil engineering business

Investment & development+ new fields

24.9

・ Improvements in revenue
from real estate salesbusiness

FY2016FY2017* Figures in parentheses are for previous fiscal year.

24Change in Construction Work Carried Forward
Securing high level results and contributing to revenue fornext fiscal year onwards
Domestic Architectural Construction

Domestic Civil Engineering

469.3

182.8

182.4

FY2016FY2017423.4(Billions of yen)

168.8

359.8

FY2015FY2016FY2017FY2015(Fiscal year end)25

Safety Results and Productivity Indices
Reinforcement of measures aimed at reaching No. 1 in safety and productivity
Safety Results(Domestic Construction Business)

Productivity Indices(non-consolidated)

Total number of accidents

5.07

5.28

Total accident frequency
rate

Labor productivity (millions of yen)
Net sales/employees (millions of yen)More than
98

102
8685

3.93
181
160

15.45
14.55

114

FY2015FY2016

Improved More than
16.10
16.56

Less than
3.18
Improved

FY2017FY2018 (forecast)

FY2015FY2016FY2017FY2018(forecast)* Total accident frequency rate = Total number of accidents/one million hours.
* Labor productivity (added value/employees) = Operating income/employees (Net sales/employees x Operating income ratio) +Overall labor cost/employees.
* Number of employees includes temporary staff, etc.

26

Recognition of Issues
Taking on the challenge of becoming No. 1
in safety and productivity

Implementing working style reforms
Business area and revenue base diversification
Creative destruction of existing mechanisms(organizations, structures, systems, etc.)

Invest in future focused on achieving ideals
27

2-2. Direction of Initiatives

28

Measures in Key Fields
Promoting the ongoing evolution of the unique value we provide
Domestic Architectural Construction (%)

Domestic Civil Engineering (%)

Other 3.1
Accommodations
5.0

Production
facilities 5.9
Warehousing
and distribution
6.5

Housing
9.8

Construction
Work Carried
Forward¥469.3 billion(end of FY2017)

Soil and water
conservation
5.6
Landdevelopment
4.9

Offices
35.1

Other

12.1

Water andSewage
17.6

Education andresearch
9.9
Health care andwelfare
24.7

7.0

Other10.7

Tunnels

33.9
Construction
Work Carried
Forward¥182.4 billion(end of FY2017)

Roads
43.0

Railways18.2

Bridges andelevated bridges

Shield 25.8

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

High value added offices

Mountain tunnels and largescale infrastructure

Lot development

29

Promoting Working Style Reforms
 Introduction of flex-time system (June 2018)
Promotion of flexible work styles based on total work hours (monthly/yearly) Work style reforms coinciding with headquarters temporary
relocation (end of 2019)
Deliberation by Work Style Subcommittee, Working Style Reform
Deliberation Committee

 Eight site closures every four weeks (firmly establish by
end of FY2021)
Promote five-day workweek system action plan

Achieve vision through autonomous work approach(Productivity and creativity improvement)
30

Investment Plan Progress Status
Investment aimed at acquiring stable revenue and value through differentiation
FY2018 investment breakdown¥72.0 billion(%)

FY2019ForecastFY2018
PlanFY2017
Actuals

Technologyand ICT
8.4

New fields
32.7

Approximately¥27.5 billion(Conceptual image)Investment &development
58.9¥11.3 billion

Total for the plan

Hatchobori 2-chome Project(to be completed in November2019)（FY2017 to FY2019）［Breakdown］［FY2017］［FY2018］［Total for the plan ］ Main investments (FY2018 plan)

Investment &development (real estate, etc.)(energy, etc.)
New fields
Technology and ICT

66262016290
2342024060

・ Effective utilization and development of assets owned
・ Energy-related and sixth-order agricultureindustrialization business・ Redevelopment of Tsukuba Institute of Construction
Technology, etc.

31

Enhancement of Strategic Businesses
Active promotion of management resource shifting
Investment & development + new fields
 Creation of new Energy Business Division
・ Enhancement of implementation structure for

Promote floating
offshore wind turbine
generator cost
reductions by greatly
streamlining andimproving theefficiency ofinstallation workprocesses.

full-fledged engagement in floating offshore
wind turbine generator business・ Establish the "Green Energy Toda" brand Creation of new Strategic Business
Promotion Offices in each branch andappoint staff

Domestic Group companies
 Enhanced collaboration with Toda
Corporation Reinforced and expanded businessfoundation and business area throughM&As, etc.

Semi-submersible barge
FLOAT RAISER (Hataage)

The completed vessel
was unveiled on May12, 2018, in Goto City,
Nagasaki Prefecture.

Overseas Enhancement of sales structure
Brazil: Establish new Paraguay branch
Vietnam: Increase number of sales personnel

 Measures targeting non-construction
business32

2-3. Business Result Forecastby Business33

Net Sales and Operating Income by Business(Billions of yen)
Upper: Net sales
Lower: Operating income

FY2017 Actuals

FY2018 Forecast

Domestic architectural
construction

281.3

358.0

Domestic civilengineering

109.3

17.8
11.7

Investment &development + newfields

6.8

Domestic Group
companies

33.8

1.2
0.8

6.4%

-1.1

Total10.8%

7.3

7.0%

9.8
18.2%

0.0

0.5%

36.2
2.6%

1.1

3.2%

20.7
－

429.0
30.4

6.4%

105.0

13.8

Overseas

23.0

-0.5

－

514.0
7.1%

31.0

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

6.0%
34

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

100.0
10.0

Total annual dividends

40

34.2
27.5
23.8

20.4

20

60.0
6.0
0.01

40.0
4.0
0.02
20.0
2.0

30

2.5
(%)

(Billions of yen)80.0
8.0

Total return ratio

106.1

6.1

4.60

3.0

(10)

0.0
FY2015FY2016FY2017FY2018(forecast)

Annual dividends
per share

¥10.0

¥15.0

¥20.0

¥20.0

* Total return ratios for FY2015 and FY2016 are calculated by multiplying profit before income taxes by the effective statutory
tax rate.
* Total purchase of treasury stock for FY2017 includes acquisition amount related to Toda Mirai Foundation (¥2,490 million).
* The total return ratio for FY2018 does not take into account the purchase of treasury stock.

35

A corporate group that makes
your success possible(SINCE 1881)52