Results Briefing
for the Year Ended March 31, 2019

May 15, 2019

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, 20195

Highlights: FY2018
 Consolidated net sales: ¥510.4 billion, up 19.0% year-on-year：

Consolidated net sales rose by 19.0% year-on-year to¥510.4 billion due to increased net sales for domestic
construction

 Operating income: ¥34.5 billion, up 13.3% year-on-year： Progress in profitable major construction works within
Japan increased operating income by 13.3% year-on-yearto ¥ 34.5 billion
 Orders received (non-consolidated): ¥549.2 billion, up 22.2 %year-on-year： Both architectural construction and civil engineering orders
increased year-on-year within Japan, raising overall orders
received by 22.2% to ¥549.2 billion
6Summary: FY2018(Billions of yen)

FY2018FY2017

Forecasts(announced
in Feb. 2019)

Actuals

Change(year onyear)

Difference(vs. forecast)

Consolidated
net sales

429.0

507.0

510.4

19.0%

+3.4

Operatingincome

30.4

30.4

34.5

13.3％

+4.1

Ordinary
income

33.0

33.2

37.4

13.5%

+4.2

Profit attributable

25.4

23.0

25.5

0.6%

+2.5

449.5

514.4

549.2

22.2%

+34.8

to owners of parent

Orders received(non-consolidated)7

Main Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Toyo University

New building of Akabanedai Campus, Toyo
University

Urban Renewal Association forFirst District Around South Gateof Seya Station

New construction of facilities for first phase of urban
renewal works for First District around South Exit ofSeya Station

Bunkyo University

Construction of Bunkyo University’s Tokyo AdachiCampusMiyazaki Medical Association

Construction for relocation of Miyazaki Medical
Association Hospital

NTT LOGISCO

Construction of E Building of Chiba Logistics Center

Metropolitan Expressway
Company

Construction of new building of Kanagawa Bureau

Tokyo Bureau of FinanceWorks No. 2 for control ponds (stage 1) in JohokuChuo Park

Japan Railway Construction,
Transport and Technology Agency

Kamioyamada emergency exit, Chuo Shinkansen*Honorific prefixes are omitted. Work names are abbreviations.

8

1-2. Details of Financial Results9

(Consolidated) Toda Group
Business

Construction

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.

Thai Toda Corporation Ltd.

Toda Road Co., Ltd.

21
companies

11
companies

Toda Vietnam Co., Ltd.

Sato Kogyo Co., Ltd.
2 other companies
Toda Bldg. Partners Co., Ltd.

Real Estate

Nisshin Life Co., Ltd.

1 other company

2 other companies
Toda America, Inc.

5
companies
1 other company

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

Other

Towa 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)
40.0

Non-consolidated

SG&A ratio
8.0%

7.0%
6.8%
6.4%

30.0

32.5
29.8

35.5
31.5

6.0%

28.9
26.8

20.0

4.0%

10.0

2.0%

0.0

0.0%

FY2017FY2018FY2019 (forecast)11

(Consolidated) Balance Sheets(Billions of yen)

AssetsLiabilities and Net Assets+109.4+109.4
667.7

667.7
558.3

Current
assets273.9

Cash and deposits
Notes and accounts
receivable – trade
Securities

+16.8

558.3

+90.2
−20.0

Current
assets364.8+90.8
Buildings and structures +1.8
Land
+10.5
Construction in progress +3.3

Noncurrent
assets

104.3
Investments
and otherassets180.0

Noncurrent
assets+13.0

Investment securities+3.8
Retirement benefit assets +0.4

Investments
and otherassets

185.4
Mar 2019

Current ratio

Notes and accounts
payable – trade
Commercial papers
Income taxes payable

+26.8
+50.0
+6.1

Current
liabilities
293.8

+86.1

Current
liabilities
207.7

Corporate bonds
5.0Long-term loans payable −2.4

Noncurrent
liabilities
101.1

Noncurrent
liabilities
104.6

+3.5

117.3

+5.4

Mar 2018
131.9％(Billions of yen)

124.2％

Net
assets249.3+19.7
Retained earnings
Valuation difference on
available for sale securities

Mar 2018
44.1％

19.5

Net
assets269.1

0.3

Mar 2019
Equity ratio

39.9％

12

(Consolidated) Change in Investment Securities
Book value

Valuation difference

Nikkei Stock Average(Billions of yen)

Stock prices (yen)25,000300.021,454250.0

21,205

18,90920,00016,758
200.0
154.8

168.7

174.7

178.6

91.1

96.1

96.7

15,000

150.0

100.0

50.0

0.0

79.2

10,0005,000
75.7Mar-16

77.6

Mar-17

78.6

Mar-18

81.9

Mar-190

13

(Consolidated) Change in Interest-Bearing Liabilities
Short-term(Billions of yen)

Long-term
132.0
112.0

+56.5
52.5

70.2

40.4

75.4

112.0

49.9
79.4

D/E ratio

29.8

25.4

Mar-17Mar-18Mar-19Mar-20 (forecast)

0.45x
14.7％

0.43x

0.68x

—
14

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

Civil engineering

Overseas

4.0
3.5

Total
(Billions of yen)

3.60

3.27
Overseas 0.04

3.0
2.5
2.0
1.5

3.27

Civil
engineering
3.17

1.0
0.5
0.0

Architectural
construction

0.44
0.33

0.06

0.09

Mar-17Mar-18

0.02

0.26

0.06

Mar-1915

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

＋9.5

Cash and cash
equivalents at
beginning of
periodIncrease in funds

100.5

Decrease in funds(Mar 31, 2018)

Income before income taxes
38.3
Notes and accounts payable – trade
25.7
Notes and accounts receivable – trade −90.3
Advances received on uncompleted
construction contracts−3.5

Operating CF−28.3

Investment securities
Property, plant and equipment

Investing CF
−24.4
−0.2
−23.4

Cash and cash
equivalents at
end of period

96.5
Financing CF
49.0(Mar 31, 2019)
Loans payable
Commercial papers
Dividends paid

0.2
50.0
−6.1

16

1-3. Performance Forecasts

17

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

FY2019FY2018
Forecasts

Change(year‐on‐year)

Consolidated net
sales

510.4

520.0

1.9%

95.6

Operatingincome34.5

30.7−11.1％−3.8

Ordinary income

37.4

32.8

−12.5％−4.6

Profit attributable toowners of the parent

25.5

22.8

−10.9％−2.7

Orders received(Non‐consolidated)

549.2

470.0

−14.4%−79.2
18

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

Net Sales of Completed
Construction Contracts(%)
Gross Profit Margin on Completed
Construction Contracts

Overseas

Overseas
7.0
115.0

Civil
Engineering

4.5

6.0

99.0

117.5

Civil
Engineering

Civil
Engineering
17.7
Civil
Engineering
14.5
Total
12.8
Total
12.2

381.7

FY2018340 .0FY2019(forecast)Architectural
Construction

355.0

340.0

FY2018FY2019(forecast)Architectural
Construction

Architectural
Construction
12.5

FY2018Architectural
Construction
11.5

FY2019(forecast)19

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

Profitability (%)

Net sales

471.5

Gross profit

60.0

12.7

Profits in the construction
business

56.4

12.2

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

[0.4]

[6.7]

Profits in investment &development business and other

3.6

45.0

Selling, general andadministrative expenses

31.5

Operating income

28.5

6.0

Ordinary income

30.6

6.5

Income taxes

10.0

Profit21.6[Overseas]

4.6

20

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

Establish a foundation to realize the global vision
FY2015 – FY2016

FY2017 – FY2019

Phase I

Phase II

Establishinggrowthfoundation

Building profit base forcontinuous growth

Continuous
growth(resource shift and new value
creation)(tenacity, diversity)(business, mindset
reform)

FY2020–22

2-1. Achievements and Issues

23Changes in Operating Income by Business
Domestic construction business continued to drive profit increases(Strategic businesses)
Domestic
construction

Investment &development +new fields

DomesticGroup
companies

Overseas

Consolidated
eliminations

Domestic Construction
Business

・ Net sales increased due to anincrease in works in hand

・ Productivity and profitability
Billions of yen

34.5
30.4

continued to improve

Domestic Group companies

・ Acquired Sato Kogyo(Fukushima City)

Overseas Busisness

・ Eliminated financial risk byrecording construction
losses

FY2017* Figures in parentheses are for previous fiscal year.

FY201824

Change in Construction Work Carried Forward
Securing high level results due to an increasein orders received
Domestic Architectural Construction
469.3

Domestic Civil Engineering

496.0
239.2

423.4
182.4

FY2016FY2017(Billions of yen)

182.8

FY2016FY2017FY2018(Fiscal year end)

FY201825

Construction Work Carried Forward by
Construction Category
A shift to key fields and evolution of the value we provide
Domestic Architectural Construction (%)
Accommodations
5.9

Domestic Civil Engineering (%)

Other 1.9

Tunnels

Warehousing anddistribution 7.2

24.6

Other
22.9
Offices
27.0

Production
facilities
8.0

Construction
Work Carried
Forward¥496.0 billion(end of FY2018)

Housing
16.6

Healthcare andwelfare22.6
Education andresearch
9.9

Soil and water
Conservation 3.2
Land development 7.0

Construction
Work Carried
Forward¥239.2 billion(end of FY2018)

Water andsewage
12.7

17.3
Other

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

High value added offices

Mountain tunnels and largescale infrastructure

Roads
36.8

Railways
17.4

19.6
Shield5.3
Bridges andelevated bridges
Lot development

26

Safety Results and Productivity IndicesContinuous improvements of safety and productivity

Safety Results(Domestic Construction Business)
5.28

Labor productivity (millions of yen)
Net sales/employees (millions of yen)

Total number of accidents
Total accident frequency rate

3.93

160

FY2017107

FY201885

Less than
2.80

Improved
114

97

86

3.30

FY2016

Productivity Indices(non-consolidated)

FY2019(forecast)

Improved
16.56

17.11

More than
94
More than
16.50

15.45

FY2016FY2017FY2018FY2019(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.

27

Investment Plan Progress Status
Investment surpassing planned levels to diversify business¥74.9 billion

FY2019 investment breakdown (%)(Initial plan: ¥72.0 billion)

FY2019Forecast

Technology
and ICT
11.3

Approximately¥31.0 billion

New fields
17.7
FY2018Actuals

Investment &development
71.0¥32.5 billion

FY2017
Actuals

Conceptual
image¥11.3 billion

Total for period of the plan
(FY2017 to FY2019)［Breakdown］［FY2017］［FY2018］［FY2019］ ［Total］

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

66
26
20

210
100 (*)
14

220
55
35

Minamisuna Project497
182
69 *Including acquisition of Sato Kogyo Co., Ltd. 28

Challenges and Initiatives
Creating new value by connecting information,technology and resources Front loading in all businesses
 Coordination among different businesses anddevelopment of new technology and business Corporate practice that solves issues•

Developing environmental/energy business and environmentallyfriendly investment, etc.

 Revitalizing overseas business (including
reorganization）
 Synergy of diverse human resources29

2-2. Business Result Forecast
by Business

30

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

Domestic architectural
construction
Domestic civilengineering
Investment &development + new fields
Domestic Group
companies

FY2018 Actuals
355.0
24.7

340.0
7.0%

99.0
11.0 11.2%

9.8

10.1

8.9

1.0 10.7％

1.1

45.3

49.5

2.4
−4.1

Total

18.3

5.4%

1.9

5.4%

−0.4

510.4

520.0

34.5 6.8%

30.7

16.5
115.0

8.3%

6.5
8.5

12.3%

0.4
36.0

3.8%

21.0
－

Medium-term targets（FY2019）

340.0

117.5

17.7

Overseas

FY2019Forecast

1.6
22.0

－

0.0

500.0
5.9%

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

25.0
31

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

10.0

Total annual dividends

Total return ratio

40

34.2

(Billions of yen)

8.0

23.8

2.50

24.0
0.0

6.0
0.01

4.0
2.0

4.6

6.1

6.1

6.7

30

Mid-term
target:approx. 30%

20

︵％︶

29.6

10
0

0.0

(10)

FY2016FY2017FY2018FY2019(forecast)

Annual dividends
per share

¥15.0

¥20.0

¥20.0

¥22.0

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

32

2-3. Toward the Next Medium-termManagement Plan

33

Future Population Changes(Billions ofpeople)10.0

8.0

Market expansion

9.772
Potential

Global

7.383

6.0

Evolution of digitaltechnology(+32.4%)Creation of New business(Millions ofpeople)200.0

Japan/Global

Globalization of customers

180.0

(%)
2.0

1.72%
Decline of existing business models

160.0
140.0

1.04%
Japan

127 million

Decreasing birthrate andaging population

1.0

Crisis

102 million

120.0(−19.8%)Declining GDP
100.0

0.0

2000

2005

2010

2015

2020

2025

2030

2035

2040

2045

2050
(Year)*Sources: United Nations, and National Institute of Population and Social Security Research (Medium Variant)34

Changes in Construction Investment and Our Net Sales
Creating value for customers
through buildings

Making buildings
Buildings withuniform functions(Trillions of yen)

90 84.0

Labor-intensive businessSpecializing inconstruction technology

Functions of buildings

Paradigm Creating value
with data
shift

Business value for customers

Inter-industry
Mechanization &coordination
automation
Stabilization of profits in upstream/downstream
processes of construction businessInsular construction
Improving productivity
industry

80

Construction business as a stable profit source

70

753.5

Government
60 sector

56.7

50

Creativity
Multiple specialties

41.9

57.9

61.0
Forecast margin: morethan ¥10 trillion

510.4

49.0

40
30

PrivatesectorEra of accelerating VUCA

Our net sales (billions of yen)

Volatility
Uncertainty
Complexity
Ambiguity

20
10(Year)

01992 2000

2005

2010

2015

2020

2025

*Sources: Research Institute of Construction and Economy, and Economic Research Association; figures for FY2030 are our own
estimates based on estimates by that institute and association

2030

35

Efforts to evolve business
Performance

Invigorating corporate activity
Effective use of capital, humanresources, networks, and information

Lifting efforts

Strategic initiatives based on market projections
・ Strategic business (investment & development,
environment & energy, etc.)
・ Investment in technology and human resources

Promotion efforts
Pushing efforts

Continuous progress ofcompany and business・ Making business scale global
・ Fostering self-motivated staff

Forming measures and an organization basis aimed at
improving performance
・ Safety/productivity initiatives
Time・ BIM/CIM, front loading
Developing a basis
Diversifying profit
FY2017 – FY2019

Toward continuous growth and a selfmotivated organization
From FY2020

36

Reconstruction of the TODA Building
FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025(December)

Removal process

Construction process

Demolition

Construction work

Creating a building of highadded value

Creating Toda Innovation Site
Mechanization

Automation

Aug – Oct 2019 “TOKYO 2021”

EnergysavingMoving in

Zero/low
carbonDec 2019 Company dispersal

and temporary move

Computerization Contribution
to community(IoT/AI)

June 2020, 2022, and 2024 Sanno

Festival

Conceptual image of
temporary move andinterior

Conceptual
image ofopening（写真）
Art event held in the Toda building
before demolition

Trial implementation and developmentof measures for working style reform*Construction schedule is according to current plans

Ongoing contribution to community
revitalization and development

37

Fostering human resources for continuous growth

Creating working styles and staff evaluation system
suited to the coming era
Stable era/contracting era

VUCA Era（Volatility/Uncertainty/Complexity/Ambiguity）

Set ways won’t work
Set ways of business

Differentiation/individuality

Uniform solutions

Conception/creativity

Quantification of results
Expert skills

Keep thinking and changing

Speed

Observance of natural law

Low cost

Self-realization
Assembly/collaboration

Increase in diverse
business opportunities
Self-motivated humanresources
Achievement ofvision/mission

Business
invigoration/expansion
38

Practicing ESG-conscious management
Contribution to continuous development ofsociety, customers, and the Group
Environmental/energy
business, zero-carbon
initiatives, contributing toa recycling society, etc.

Development of diverse
business activities

Environmental
Ｅ conservation aimed ata sustainable society
Ｇ

Securing/fostering
supporters, promoting
diversity, contributing tolocal society, etc.

Consideration for
Ｓ stakeholders andcontribution to society

Strong governanceFair/transparent
governance structure,compliance,
proactive information
disclosure, etc.

(Toda Construction Group’s ESG
management logomark)

Promoting environmental and social efforts
through diverse business activities, withstrong governance as the basis
39 Waste reduction/reuse Green procurement

 TO-MINICA
 CASBEE CO2 emission rights
 Bio oil
 RE100, CDP, SBT

Zero carbon/low carbon[Act on Promotion of Global
Warming Countermeasures][Act on Rationalizing Energy Use]

 Eco first
Resource recycling[Paris Agreement][Basic Environment Act] Development and supply of renewable energy
 Development and supply of technology for zero/low
carbon (e.g., zero-energy buildings)
 Development and supply of technology for resource
recycling and biodiversity
Environmental
 Utilization of green bonds
technology

 Biotopes
 Protection of rare animals

Biodiversity preservation[Basic Act on Establishing a Sound
Material-Cycle Society][Act on Recycling of Construction
Materials］[Basic Act on Biodiversity] Safety, quality, working hours, laborproductivity, staff evaluation, etc.
Visualization/
 Information disclosure to society,transparency
customers, shareholders, media, andwithin the company and Group

Environmental
management [Industrial Safety and Health Act]

[Basic Construction Act]
[Housing Quality Assurance Act]

Global Vision, Management Policy,
Corporate Action Charter, Corporate[Reinforcing national land]
Environment
Code of Conduct[Basic Act on Disaster Management]
 BCP, resilience certification
Standards system  Board of Directors, Board of Corporate
 Infrastructure building and continuous advancement
Auditors, Outside Officers Committee
and committees
 Development and supply of disaster prevention and Management Committee, Strategy
mitigation technology
Realizing long-term, stable growthCommittee, Branch Officers Committee,
Disaster Cooperation for reconstruction
Department Committees
Contributing to creation of [Companies Act]
prevention/mitigationof disaster areas[Corporate
GovernanceCode]sustainable society Management policy briefing, Development and cooperation for decontamination
enhanced communication
and radiation protection/management

Vector unification according to Next
 Inspection tours of work and research sites
SocietyGovernance Policy Cleanup and contribution activities for
management Future Map / Navigating the Futureof Toda Corporation
communities
 Utilization of company reports,
Contribution to local communities
public relations magazine, and ODA[SDGs] [ODA Charter]
Risk management
intranet
 Overseas support for training human resources Management of risk and Donations

International
contribution

Social contribution andmanagement that solves issues

Corporate governance / selfmotivated management

internal/external activities Corporate ethics helpline Customer center Toda Mirai Foundation, Toda Educational
Securing/fostering[Construction Business Act] [Act against Delay in Payment of[Labor Standards Act]
Subcontract Proceeds, Etc. to Subcontractors] [Antimonopoly Act]
Foundation, Kensetsu Komachi
supporters[Industrial Safety and Health Act]  Improved diversity, global aspect, capabilities, and Closed sites, improved work environment, career[Equal Employment Opportunity Act] attractiveness through fluidization of human resources
advancement system, increased capital Support for self-development/training Overall reduction of working hours, certification for Working style Fostering human  Training by level/position
 Emphasis on education, refinement, attractivenesscompanies promoting women’s participation,
reformsresources
and compliance of human resources and organization
managers considerate of work-life balance, working
environment improvement, staff evaluation

Direction in the Medium Term
Developing diverse, strong businessfrom a global perspective
Strengthening strategic business
Evolving the construction business
Serving and gaining
globalizing customers
41

A corporate group that makes
your success possible42