Results Briefing for theYear ended March 31, 2022
May 18, 2022

TODA CORPORATION

1This material contains forward-looking statements
regarding Toda Corporation and the Group’s corporate
plans, strategies, and earnings forecasts.
These statements are Toda Corporation’s forecasts basedon information available as of the date of the material,
which are subject to potential risks and uncertainties.
The actual results or developments may differ from theforward-looking statements due to changes in various
factors.

2

Today’s Program

1. Results Briefing
General Manager of Corporate Administration Group
Toshihiro Yamazaki

2. Medium-Term Management Plan 2024
Rolling Plan

President and Representative Director
Seisuke Otani

3

1. Results Briefing
General Manager of Corporate Administration Group
Toshihiro Yamazaki41-1. Results Overview

5

FY2021 Highlights■ Consolidated Net Sales: ¥501.5 billion (-1.1% YoY)
Consolidated net sales decreased 1.1% YoY to ¥501.5 billion, mainly
due to decrease in domestic architectural construction business.

■ Operating Income: ¥24.3 billion (-12.0% YoY)
Operating income decreased 12.0% YoY to ¥24.3 billion. The main
factor was decrease in profitable projects for domestic architectural
construction business and civil engineering business.

■ Orders received (non-consolidated): ¥452.2 billion (+8.8%
YoY)
Mainly due to increase in domestic architectural construction orders
from the private sector, overall orders increased 8.8% to ¥452.2
billion.

6

FY2021 Results Overview

FY2020

FY2021
May 2021

forecast(Billions of yen)

Results

Change(YoY)

Difference vsforecast

Consolidated
net sales

507.1

515.0

501.5

-1.1%

-13.4

Operatingincome

27.6

23.6

24.3

-12.0%+0.7

Ordinary
income

30.3

25.7

28.1

-7.4%

+2.4

19.7

16.9

18.5

-6.0%

1.6

415.6

445.0

452.2

8.8%

+7.2

Net profit

attributable to ownersof the parent

Orders received(non-consolidated)7

Main Orders Received
Ordering Parties

Name of Works

Building Construction

Nagareyama Sogo Kaihatsu Special Purpose
Company N

GLP ALFALINK Nagareyama 4 Project

University of the Ryukyus

University of the Ryukyus (Nishi-Futenma) Faculty of
Medicine related facility construction project

Izumiotsu Minicipal Hospital(Tentative name) New Izumiotsu Minicipal Hospitalconstruction project

ORIX Real Estate Corporation(Tentative name) Tsurugashima II Logistics Center
construction works

Katano City

(Tentative name) Katano City Katanomirai Gakuen
Integrated Facility Elementary and Junior High School
construction project

Civil Engineering

Ministry of Land, Infrastructure, Transport
and Tourism, Chugoku Regional
Development Bureau

FY2021 Kiyo Disaster Prevention Kiyo Tunnel No.1 WorksWest Nippon Expressway Company Limited

FY2021 Higashikyushu Expressway
Koshita Tunnel works

East Nippon Expressway Co., Ltd.

Do-o Expressway floor slab replacement work for
Mamachi River bridge

Tokyo Metropolitan Government Bureau of
Waterworks

Tunnel plumbing and management pit construction work forwater pipes between Nerima-ku Oizumigakuencho 4-chome to
Shakujiidai 1-chome (2600 mm)* Honorifics are omitted. Work names are abbreviated.
8

Main Carryover Works
Ordering Parties

Name of Works

Building Construction
Civil Engineering

Shibuya Station Sakuragaoka Exit District
Redevelopment Association

Shibuya Station Sakuragaoka Exit District Type 1
Urban Redevelopment Project

St. Marianna University School of Medicine

St. Marianna University School of Medicine
Sugao Campus Renewal Plan

Kisosaki Special Purpose Company

ESR Yatomi Kisosaki Distribution Center Plan

Takashimaya South Area Redevelopment
Project

Takashimaya South Area Type 1 Urban
Redevelopment Facility and Building Construction
Work

Toyo University

Akabanedai Campus new building construction work
(Site C)

Ministry of Land, Infrastructure, Transport
and Tourism, Kanto Regional Development
BureauYokohama Shonan Road tunnel works

Central Nippon Expressway Company
LimitedTokyo Outer Ring Road
Main Line Tunnel (north bound) Tomei North works

West Nippon Expressway Company
LimitedShin-Meishin Expressway Ujitawara Tunnel East
Works

Japan Railway Construction, Transport
and Technology Agency

Chuo Shinkansen
Chuo Alps Tunnel (Matsukawa) etc.
* Honorifics are omitted. Work names are abbreviated.

9[Non-consolidated] Carryover Works

800.0

Architectural
Construction
751.2(Billions of yen)

700.0
600.0

Overseas 4.3

Civil Engineering
277.1

500.0

Civil Engineering
717.2

Overseas

Total (Billions of yen)
738.5

Overseas 4.5

Civil Engineering
279.8

Difference vsforecast
Overseas
3.6

Civil Engineering
263.6

400.0
300.0
200.0

Architectural
Construction
469.8

100.0
0.0

March 2020

Architectural
Construction
432.7

March 2021

Architectural
Construction
471.2

March 202210

1-2. Details of Financial Results

11[Consolidated] Toda Group
Business

Subsidiaries in Japan

Overseas Subsidiaries

APEC Engineering Co., Ltd.

Construtora Toda do Brazil S/A

Chiyoda Kenkou Co., Ltd.
Construction

Toda Road Co., Ltd.
Sato Kogyo Co., Ltd.
Showa Kensetsu K.K.

Thai Toda Corporation Ltd.
Toda Vietnam Co., Ltd.

Real estateOther

3 other companies
Toda America, Inc.
PT. Toda Group Indonesia
1 other company

Toda Finance Co., Ltd.

Toda Investimentos do Brasil LTDA

Toda Staff Service Co., Ltd.

Toda Energia do Brasil LTDA

Towa Kanko Kaihatsu Co., Ltd.
Goto Floating Wind Power LLC.

15
companies

TOBIC

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

30
companies

4companies

11
companies

Offshore Windfarm Construction Corp.
Toda Noubou Inc.
3 other companies
12[Consolidated] Balance Sheets
Assets

761.1

+25.4

735.7

Current
Assets373
373.1(Billions ofyen)Cash and deposits
Real estate for sale
Inventory

+25.5
-2.7
-2.9

Current
Assets387
386.5

Liabilities and Net Assets

Current
liabilities
281.6

Notes and accounts payabletrade-16.2
Short-term loans+11.6
Commercial papersliabilities+15.1

Corporate bonds

Noncurrent
assets154
154.3

Investments
and otherassets, 208

+19.5
-7.5
Investment securities -7.6

March 2021

132.5%

Noncurrent
assets174
173.8

Investments
and otherassets 201

March 2022

Current
Ratio

129.2%

Current
liabilities
299.1

+17.4

+13.3
Buildings and structures +7.3
Machinery, vehicles, tools,
furniture and fixtures
+4.8
Land
+1.1
Construction in progress +3.6

761.1

+25.4

735.7

(Billions of
yen)

-4.8

Noncurrent
liabilities
143.0

Noncurrent Long-term loans payable＋6.3
liabilities
141.5

+1.4

Net assets
312.5

+6.5
Retained earning＋9.9
Valuation difference on available
for sale securities-6.0
Foreign currency translation
adjustments+1.7

March 2021

42.1%

Net assets
319.0

March 2022

Equity Ratio

41.6%
13

[Consolidated] Change in Investment Securities(Billions of yen)Book Value

Valuation Difference

Nikkei Stock Average

Share price (yen)29,178350

27,821

300
250
200
150

25,00021,205
18,917
178.6

96.7

100
50
0

30,000

200.2

192.6

157.6
74.5

20,00015,000

114.5

105.7
10,000

81.9

83.1

85.7

86.9

March 2019

March 2020

March 2021

March 2022

5,000
0

14

[Consolidated] Change in Interest-Bearing Liabilities
Short-termLong-term(Billions of yen)
210.0

+28.3
179.3
151.0
84.2

111.8
82.7

210.0

62.3

49.4

D/E ratio

68.2

95.1

March 2020

March 2021

March 2021

March 2023 (forecast)

0.41X
14.7％

0.49X

0.57X

-

(D/E ratio = Interest-bearing debt/Equity)15

[Consolidated] Change in Provision for Loss in Construction Contracts
Architectural Construction
Civil Engineering
Overseas

4.00(Billions of yen)

3.20
3.00

2.00

2.75

-0.8

2.66

Overseas 0.05

Overseas 1.01
Overseas 2.67
Civil Engineering
2.19
Civil Engineering
1.58

1.00

0.00

Civil Engineering
0.47

Architectural Construction 0.05

March 2020

Architectural Construction 0.41
Architectural Construction 0.16

March 2021

March 2022
16

[Consolidated] Change in SG&A
Consolidated
Non-consolidated
SG&A Ratio(Billions of yen)
10.00

7.3%

7.6%

10.0%
8.2%
8.0%

6.0%

3.71

3.26

3.82

4.25
3.33

4.0%
3.70
2.0%

0.00

March 2021

March 2022

March 2023 (forecast)

0.0%

17

[Consolidated] Statement of Cash Flow
(Billions of yen)
+25.5

Cash and cash
equivalents at
beginning of period
103.7

Profit before income taxes
Accounts payable-trade
Depreciation and amortization
Real estate for sale

Increase in
funds

Operating CF
27.2

Decrease infunds(March 31, 2021)

28.2
-16.2
4.7
4.3

Cash and cash
equivalents at end of
period129.3

Financing CF
18.3
Investing CF-20.4

Property, plant and equipment -21.8
Investment securities
2.9
Intangible assets-2.5(March 31, 2022)
Loans payable
Issuance of bonds
Cash dividends paid

17.6
10.0
-9.2

18

1-3. Earnings Forecasts

19

FY2022 Earnings Forecasts

FY2021(Billions of yen)

FY2022(Forecasts)

Change (YoY)

Consolidated net
sales

501.5

520.0

3.7%

+18.4

Operatingincome24.3

20.5-15.9%-3.8

Ordinary income

28.1

22.9

-18.5%

-5.2

18.5

18.8

1.3%

+0.2

452.2

453.0

0.2%

+0.7

Profit attributable toowners of the parent

Net Income

Orders received(non-consolidated)

20

[Non-consolidated] Earnings Forecast for Construction Business(Billions of yen)Orders Received forConstruction

452.2

453.0

2.7

4.0

128.6

117.0

Overseas

Civil
engineering(Billions of yen)
Net Sales of Completed
Construction Contracts

430.9

440.0

3.7

2.8

144.8

(％)
Gross Profit Margin on
Completed Construction
Contracts

Civilengineering
16.0

Overseas

Civil
engineering

129.7

Civil
engineering
13.2
Total
11.6

320.8

332.0

March 2022 March 2023
(forecast)Architectural
construction

282.4

307.5

Architectural
construction

March 2022 March 2023
(forecast)Architectural
construction
10.6
March 2022

Total
11.1

Architectural
construction

9.0

March 2023
(forecast)21

FY2022 Non-consolidated Earnings Forecasts
Amount (billions of yen）

Profit margin (%)

Net sales

459.0

Gross Profit

54.1

11.8

Profits in the construction
business

48.8

11.1

[Domestic architectural construction](27.7)(9.0)[Domestic civil engineering](20.7)(16.0)[Overseas](0.3)(12.5)

Profits in investment development
business and other

5.3

27.9

Selling, general and administrative
expenses

37.0

Operating income

17.1

3.7

Ordinary income

19.7

4.3

Income taxes

7.8

Profit

16.9

3.7
22

2. Medium-Term Management Plan 2024

Rolling Plan
President and Representative Director
Seisuke Otani

23

Backgrounds for establishment of the rolling plan
Strengthen strategy in response to the change inenvironment and aim to enhance corporate value
Completion of the New Toda Building

2020

FY2022 - FY2024

2021

150th anniversary

・・・

2031

Medium-Term Management Plan 2024
Prolonged COVID-19
pandemic
Inflation
Stalling of construction
investment

Medium-Term Management Plan 2024 Rolling Plan

Change in value
Change in industrial
structure
Development oftechnology

Accelerate current strategies andmeasuresAccelerate realization of Future Vision
CX150
Enhance corporate  Realize co-creation society as the Improve construction
gatekeeper of value
productivity
value Evolution of values provided
 Expand and develop business
Experiential value/latent
areas
needs/social capital

24

Future Vision CX150
The Toda Group’s vision for its 150th anniversary
in 203125

Concept framework
MissionA corporate group that realizes “Joys”
Vision-Vision of society-Co-creation society
A society where people coordinate/collaborate, creating avirtuous cycle where new values are generated, andhappiness and sustainability are realized

Value-Key approach and actions-

Gatekeeper of value
Create new value by realizing unprecedented combination of information andfunctions by becoming the gatekeeper between demand and supply
Value of experience

Latent needs

Social capital
26

Gatekeeper of value
Create new value through aggregation with partners

SupplyDemandGatekeeper

Mobility

Users
Consumers

ICT

Aggregation(Collaboration)

New
Value

Business
Partners

EnergyHealthcare

Virtuous cycle in society(Co-creation society)
Local
Community

Create new value by realizing unprecedented
combination of information and value

27

Business Development
Contribute to realization of co-creation society through business development in four areas[Infrastructure Operation]+ Social capital[Energy Management]

Urban/Social Infrastructure
Area[Floating Off-shore Wind Farm]

Environment/Energy Area

+ Latent
needs+ Experiential
value

Values provided

Contribute to carbon neutrality withsustainable energy
development/construction/supply, etc.

Create diverse variety of attractive urban
functions based on safety and security(resilience)[Smart office](New Toda Building)[Construction
automation][Toda Innovation Site]

Smart Innovation Area

Functional
value

Pursue productivity and job
satisfaction through DX of
construction sites and offices[Smart Energy Complex City](SECC)[IoT operation management]

Business & Life Support Area
Establish an environment that is moreproductive and comfortable and at the sametime promotes mental and physical health of
the users*[ ] indicates examples of projects in each area

Mainly constructionindustry

Wide collaboration with other industries/companies

Scope of aggregation

28

Basic Business Framework
Promote sustainable growth by building a strong closed loop
(Solution x Data x Management) Improve experiential

value (convenience,
comfort, etc.) of users

Solution Obtain/visualize

management data
(experiential value data)with sensors, etc.

Data

Operation
Management

Technology/expertise/knowledge of partners
Related data

Plan/Design(OM)

 Propose experiential

 Realize social capitalwith technology

 Improve

productivity/safety withDX

 Invest proceeds inmeasures to improvenew added value

Construction

value/latent needs basedon evidence (dataacquired in OM area,etc.) Enhance productivity byleveraging on
design/construction
strength29

Medium-Term Management Plan 2024
Interim Review

30Environment Recognition(Trillions of yen)

Construction Investment
Civil Engineering Government

80

Civil Engineering Private Sector

135

Construction Material Price Index(Tokyo, 2011=100)

Architectural Construction Government
Architectural Construction Private Sector

70
61.3

61.8

62.5

15.6

15.9

16.8

4.9

5.5

5.4

6.2

5.7

5.9

61.7

62.0

17.4

17.2

5.5

5.7

5.7

6.0

6.0

5.8

60.9

60
50
40

17.9

121.9

120
Architectural Construction
115

Civil Engineering

112.3
110
34.7

34.8

34.4

31.5

32.5

109.6

33.4

105

10
0

130

125

30
20

130.5

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

100

Since FY2020, despite support from government
Soaring from end of FY2020. About 20% rise in theinvestment, private construction has been sluggish
past year for Construction Business.
due to the impact of COVID-19 pandemic.
* Source: Ministry of Land, Infrastructure, Transport and Tourism, Research Institute of Construction and Economy, Construction Research

31Performance Targets/Results
Revenue growth stalling due to increased competition and soaring materials cost
Architectural Construction

Civil engineering

Investment development / Environment & energy

Operating Income/Operating Margin

Consolidated Net Sales(Billions of yen)

600.0
507.1

501.5

55.8
15.0

45.1
24.4

136.3

5.5%

7.0%

4.9%
42.0

147.9

27.6
2.2
3.1

328.0

Group companies

14.1

304.6

24.3
1.9
3.8

11.9

9.1

7.8

FY2020

FY2021

FY2024FY2020

FY2021

FY2024[Actual][Actual][Target][Actual][Actual][Target]* Total reflects elimination of intragroup transactions* Targets as of May 29, 2020

32

Status of Growth Investment
Promote steady investment, execute large-scale investments from FY2022
Real estate development

Environment/energy, etc.

NET Investment(Aggregated)
160.0

M&A/CVC

Investments

Major investments(Billions of yen)

41.2
Minamisuna Corporate
Dormitory/Training Center

26.6

111 Pacifica (US)

48.5
-4.1

0.40

(Completed)

-15.1

1.60

FY2020/2021

FY2020/2024[Actual][Plan]* Net investment = Investment amount - Collected amount* Targets as of May 29, 2020

FY2021

FY2022

Fukaya Solar Power

Showa Kensetsu (M&A)

33

Non-financial Targets
Quantitative Evaluation Indicators

FY2020

FY2024FY2021Results

TargetResults

Environment

CO2 emissions reduction rate (vsFY2019)

2.4%

-0.9%

Decrease by
10% or more

Society

Total accident frequency rate

3.60

2.88

1.00 or less

38.8%

35.7%

100％ or more

58.2%

72.5%

100％ or more

Construction sites: Rate of 8-days
off per 4-week work cycle
Construction career advancement
registration
Employee: Average total actual
working hours
Governance

2,119 hours

1,900 hours or lessOutside Directors ratio

47.1%

47.1%

50％ or more

Proportionofnon-Japaneseemployees (non-consolidated)

0.6%

0.7%

1.5% or more

Risk assessment ratio

100%

100%

100％ or more

000 or lessSignificant violation of laws andregulations****

2,115 hours

CO2 emissions indicates total of Scopes 1 and 2 (preliminary figures)
Total accident frequency rate = Total occupational accidents / total working hours (million hours)
Construction career advancement registration: Skilled worker registration ratio (including secondary sub-contractor and below)
Risk assessment implementation rate: Implementation and execution status of quantitative and qualitative assessment of projects (projects
approved by the Board Meeting) and exit strategies implemented by the Investment Committee *Targets as of May 29, 202034

Basic Policy and Goals

35

Basic Policy for the Rolling Plan

Realize
FutureVision
CX150
Provide truly recognizedvalues to all stakeholders byrealizing Future Vision CX150

Enhancebusiness
portfolio
Promote growth investments tostrengthen business portfolio suchas the New Toda Building andfloating offshore wind power

36

FY2024 Performance Targets
FY2021Results

Profitability

Capitalefficiency
Productivity
Shareholder
returnFY2024
TargetFY2021 to FY2024

Consolidated net sales¥501.5 billionc. ¥600.0 billion+19.6%

Operating income¥24.3 billion¥33.0 billion ++35.3%

Operating margin

4.9%

5.5% ++0.6P

Profit¥18.5 billion¥26.0 billion ++40.1%

ROE

5.9%

8.0% ++2.1P¥14.58 million¥15.0 million +

+2.8%

DOE

2.6%

2.5% +―

Total return ratio

43.0%

40.0% +―

Labor productivity(non-consolidated)* Labor productivity = Added value (operating profit + total labor cost) / Number of employees (yearly average, including temporary workers, etc.)* DOE (dividend on equity) = Total dividends / Equity* Total return ratio = Total shareholder return (total dividends + total shares buyback amount) / Net income attributable to owners of the parent

37Performance targets by business segment
Architectural Construction

Civil engineering

Investment & development / Environment & energy

Group companies

Operating Income

Net Sales*( ) indicates operating margin(Billions of yen)

600.0
501.5
45.1
24.4

33.0

55.0
50.0
145.0

147.9

3.5
24.3
1.9 (4.2)
3.8 (15.8)(6.4)

5.3 (10.6)

14.2
304.6

360.0

11.9

(9.8)

7.8

10.0

(8.1)

(2.6)

(2.8)

FY2021

FY2024FY2021

FY2024[Actual][Target][Actual][Target]* Total reflects elimination of intragroup transactions

38

Basic Strategy

39

To achieve the earnings target
Realize growth for both core business and priority areas
Consolidated Net Sales

Operating Income

Priority business(Billions of yen)

Businesses aiming for medium- tolong-term growth
Active involvement by top
management New Toda Building Overseas Business Renewable Energy Business(Offshore wind)

600.0
501.5
15.0

58.5

33.0
24.3

4.5

-0.7

507.1

Core business*Figures exclude the priority area

551.5
26.2

Create customer value with value unit
Enhance development of technology
with internal and external collaboration

28.5




FY2021

FY2024[Actual][Target]FY2025
onwards[Target]* Total reflects elimination of intragroup transactions

FY2021[Actual]FY2024[Target]FY2025
onwards[Target]Architectural construction
Civil engineering
Strategic Investment

development/Environ
ment & energy
Group companies
40Strategic Scenario
Promote focus areas towards revenue contribution from FY2025 onwards
Phase 1
(FY)

2022

to

Phase 22024

Phase 3

To 2027

To 2030150th
anniversary
2031

Promote Smart Innovation
Core business(Architectural Construction
Civil Engineering
Strategic)

Enhance experiential value (customer experience)

Overseas

Enhance local business/
strengthen alliances

RenewableenergyPriority business

New Toda Building

New building
construction

Floating
offshore wind
Floating
complex

Build wind farm

2,100 kW×8 turbinesCompletion

Start
oper
ation

Full-scale operation/reachprofitability
Create stable
growth/synergies

Realizecocreationsociety

Stable operation/deploy to
new areas

Initiatives to realize floating complex*See appendix

41

Promote Smart Innovation

Enhance value as acompany that “sells
technology”
Enhance safety andproductivity with automatedconstruction and utilizationof new technologies/ICTCreate new business modelwith digital transformation

Unmanned tunnel support construction projectTechnology R&D investment¥20 billion (¥6.6 billion p.a.)plannedAir flow analysis using BIM

Toda Institute of Construction
Technology, Green Office Tower

42

Enhance experiential value (customer experience)
Design the “experience” up to the use of building by the customer
Create new customer value by incorporating experiential value for revenue growth[Market/Customer needs](Related Market)

Experiential value
Surprise
Inspire（Manager/User)

Security
ComfortNew technology
External cooperation

Expand[CX150 Business Development Area]

Functional value

Business & Life Support Area
Urban/Social Infrastructure Area
Environment/Energy Area

(Order placement)(Construction investment)

Status Quo

Mid- to long-term
reduction

DesignConstruction technology
Materials/machinery

Smart Innovation Area

43

Establish value units (VU)
Promote technology/solutions based on VU(Internal/external collaboration, open innovation, etc.)

Business development area

Intellectual
productivity
Business & Life
Support Area

Improve efficiency
WellnessUrban
revitalization

Urban/ Social
Infrastructure
Area

Regional
Revitalization
Transport networks

Environment/
Energy Area

Vision and focus area

VU

Energy Minimize resource investment (labor,
time, etc.) by creating spaceenvironment and encouraging users,
and maximize results Create “satisfaction” including physicaland mental health and comfort of users

Improve safety, security, function, andconvenience of large cities
Enhance appeal by replacing urban functions



Maintain regional living zone (life lines, etc.)
Create new economic zone (employment, etc.) Stable functionality of transport
infrastructure Increase use of sustainable energy

OfficeSchool
Production facility

Logistics facility

Hospital

Accommodation/entertainment

Redevelopment

Land development(Zone development)

Roads/Railways(Tunnel/shield)

Renewable energy

44Case Study: Echizen City’s Example of Smart City

Urban/Social
Infrastructure Area

(Echizen Takefu Innovation Valley)

Landscape with plaza and green infrastructure
along the north-south line

Image of the district viewed from Echizen-Takefu
Station

Selected as the partner corporation
for the “Public-Private Partnership
Project for the Creation of Echizen
City’s Version of Smart City”
promoted in the approximately 100
hectare space surrounding the
Hokuriku Shinkansen Line EchizenTakefu Station (new station) by
Echizen City, Fukui Prefecture

Reviewing the details of functions to
be introduced, technological platformof the smart city, framework for open
innovation, and business scheme with
Echizen City

45

Positioning and Initiatives Concerning the Priority Area
New Toda Building

Overseas

Renewable energy

Image of floating off-shore wind farm] As the flagship of ourtechnology, construct a
smart building utilizing
digitalization as well as thehighest-level safety andenvironmental functions.
* Scheduled for completion in 2024.



Deploy construction anddevelopment
business
mainly in the growing
market of Southeast Asia
region.
Promote cash generation
and reinvestment by timely
replacement of assets.

Commercialize the hybrid spar
type floating offshore wind
power generation facility thatutilized our unique technology.
Promote technology
development to win orders for
fixed-foundation offshore wind
power generation.

* Scheduled to start operation in 2024
(Goto Wind Farm off the coast ofNagasaki Prefecture)46

Investment Plan and Capital Allocation
Utilize interestbearing debt
*Maintain financial
soundness

Cash Allocation Policy(FY2022 - FY2024 aggregated amount)

D/E ratio

0.8X or lessSales of shares
held for strategic
reasons¥10.0 billion+ p.a.
(Market value basis)

Sale of Assets

Income taxes
Increased interestbearing debt

Sale of shares held forstrategic reasons¥30.0 billion +(Cash generation andreinvestment)¥67.0 billion

Investment Plan
¥225.0 billion
Growth investment ¥190.0 billion
Intangible assets ¥32.0 billion
Machinery & equipment ¥3.0

billionOperating income¥80.0 billion+
Cash Generation

Business area expansion/increase value of assets
Real estatedevelopment¥160.0 billion

Environment/
energy etc.

¥30.0 billion

Investment in intangible assets

Sale of Assets¥67.0 billion

Investments for growth

Shareholder return(Cash dividends/sharebuyback）

Cash Allocation

Strengthen business platform/enhance
non-financial assets
Human
resources¥3.0 billion

Technology
R&D¥20.0 billion

Digitalization¥9.0 billion*SG&A + assets

Machinery & equipment
Machinery &equipment¥3.0 billion

Shareholder Return Policy
DOE

2.5% or more

Total return
ratio

40.0% or more

(Source of investment capital)* Operating income after considering proceeds from real estate for sale, depreciation and amortization, etc.

47

Investments for growth
Floating offshore
wind power
generation
10.5%(Approx. ¥20.0
billion)Amount/breakdown ofinvestments for growthComposition ratio (%)

15.8%(¥30.0 billion)

New Toda
Building
31.6%(Approx. ¥60.0
billion)

New Toda Building and floating
offshore wind power generationaccount for 40% overallReal estate development promotes
effective utilization of assets, etc.

FY2022 - FY2024 aggregated total¥190.0 billion(Net investment: ¥123.0 billion）

84.2%

Nishinomiya-kita
Project(¥160.0 billion)

Real estate development
Environment/energy, etc.

KiyosumiShirakawa Project
Joso Project48

Enhancement of Investment Process

Established Investment
Screening Division

Adopted ROIC by businesssegment(Established in Corporate Administration Group in March 2022)(Applied to management accounting from FY2022)



Screen proposals from business
units from perspectives including
appropriateness of investment andmaintenance of financial soundnessEstablish hurdle rates such as IRR
and manage including the exit
strategy

Visualize cost of capital for eachbusiness segment andcorresponding profitability

Promote capital allocation within
and between business segments

Secure 8% ROE for
medium- to long-term
49

Enhance ESG management: non-financial target
Re-established priority management indicators based on*See appendix
the basic policies on sustainability
Quantitative evaluation indicators
E

CO2 emissions

Scopes 1+2

Reduction rate (vs FY2020）
Basic unit (100 mil yen)

same

S

G

Scopes 3

Medium-Term Target(FY2024)-16.8%
11.2 t-CO2

Reduction rate (vs FY2020）-10.0%

Categories 1 basic unit (100 mil yen)

5.4 t-CO2

Categories 11 basic unit (sqm)

3.5 t-CO2

Total accident frequency rate

1.00

Accident frequency rate

0.10

Labor productivity per hour

7,500 yen

Scope 1: Direct CO2 emissions from the use of diesel, etc.
Scope 2: Indirect CO2 emissions by power plants for use of purchased electricity/heat
Scope 3: Indirect emissions other than Scope 1 and 2
Category 1: Emission at time of construction material manufacturing, Category 11: Emission during period of operation of constructed buildings
Basic unit: Scope 1 + 2: Emission per ¥100 million net sales
Category 1: Emission per ¥100 million transaction amount, Category 11: Emission per 1 m 2 completed gross floor area
Total accident frequency rate = Total occupational accidents/total working hours (million hours)
Accident frequency rate = Number of occupational accidents requiring 4 or more days of leave / total working hours (million hours)
Labor productivity = Amount of added value (operating income + total human resources expenses) / Number of employees / average total working hour50

Scope 1

CO2 Emissions (1)Scope 2

Direct CO2 emissions from the use of diesel, etc.
Indirect CO2 emissions by power plants for use ofpurchased electricity/heat

CO2 Emissions (Scope 1+2)

Office, etc. Scope 2

Civil Engineering Scope 2

Aim at medium-term targetaligned with SBT target: -16.8%

Civil Engineering Scope 1(vs FY2020)

Architectural Construction
Scope 2
Architectural Construction
Scope 1

 Scope 1+2 reduction target for

Office, etc. Scope 1(thousand t-CO2)

78.8
11.5

Medium-Term Target
1.8
0.6

vs FY2020-16.8%
65.5
6.0

SBT Target
1.2
0.5

vs FY2020-42.0%
45.7

39.5
36.4

FY2030 at -42% (vs FY2020),
or 4.2% p.a.

Scope 1Adopt environmentally friendly
construction and fuels
Scope 2

5.9

Promote use of renewable electricity
3.4

FY2024FY203060%

100%

RE ratio

19.4

17.7

FY2020

FY2024FY2030[Actual][Target][Target](target)*Renewable Electricity

51

CO2 emissions (2)Scope 3

Indirect emissions other than Scope 1 and 2 (emissions
from other companies in relation to our business)

CO2 Emissions (Scope 3)
Other
Emissions from buildings constructed by Toda during operation (Category 11)
Emissions during manuracturing of construction materials (Category 1)(thousand t-CO2)

Medium-Term Target

SBT Target

vs FY2020

vs FY2020

5,211
152

-25.0%-10.0%
4,690

170

3,593

3,900

Aim at medium-term target: -10.0%(vs FY2020)

 Scope 3 reduction target for

FY2030 at -25% (vs FY2020),
or 2.5% p.a.

Category 1

3,200

Procurement of low-carbon materials(fresh concrete, steel, etc.)
Category 11

Design/construction of ZEB/energysaving buildings

1,466

1,320

FY2020

FY2024FY2030[Actual][Target][Target]* Category 11 calculated by multiplying gross floor area of completion foe each year bycoefficients (energy-saving performance, useful life)52Governance Reform
Change to directors and executive officers system that separates management
supervision and business execution *after the general meeting of shareholders
Board of Directors

GeneralMeeting of
Shareholders

Structure after the General Meeting of Shareholders(proposed)

Appointment

Board ofDirectors
Appointment/
Dismissal
Oversight

Executive Unit
(President)

Improve effectiveness of the Board of
Directors
Board of Directors discusses
management strategy

Internal directors: 3 *8 before general meeting ofshareholders

Personnel and Compensation
Committee
Sustainability Committee

1) Chairperson and Representative Director Imai
2) President and Representative Director Otani
3) Director Yamazaki (CFO)

Outside Directors
4 directors (4 before general meeting ofshareholders)

Executive UnitStrengthen management strategy
development function, reliable
submission to the Board

Authorization MeetingStandardize management decision
criteria

Sustainability Committee(Strategy Meeting）



Speedy and flexible management
decisionsManagement Meeting53

Executive Unit Organizational Reform: Company-wide Optimization*From March 1, 2022

Direction of Reform

Current Matrix SystemLarge headquarters, branches struggling
to cooperate
Same functionality scattered among
headquarters

Value Creation

Innovation

Strategic
BusinessCorporate

Civil EngineeringGroup

BranchM

Architectural
ConstructionGroup

BranchB

BranchA
Administrative
Group

・・



Strengthen top management functions(management/strategy/planning)
Centralize technology development function (innovation)

Planning
Strategies

Building
Construction
Group

Civil
EngineeringGroup

Strategic
Business
Promotion
OfficeBranchX ..

BranchY ..

BranchZ ..

HR
Finance
Digitalization
PR

Management General Affairs
Administration …
SupportPromoteinnovation

Environmental
strategy
CVC
Commercialize newtechnology

Technology
R&D

Technology
development center
IP technology
optimization
DX promotion

Develop floating
offshore wind54

Deploy to Functional Strategy
Deploy technology / DX / human resources / financial strategies
in accordance with the basic strategy
Human Resource Strategy
Recruit/develop diverse/self-motivated personnel
Technology R&D
based on VU

Technology
Strategy

Basic Strategy
Core
Business

VU Management(Experiential value)

Priority
Business• New Toda Building• Overseas business• Renewable energy
business

Acquire and utilize
experiential value data

DX Strategy

Business strategy/marketing strategy
Capital allocation/funding corresponding to business risk

Financial Strategy
55

To conclude: Brand Slogan

Build the Culture.

Built by people. Built with people.
Imagine the people who will be here andthe stories that starts now, to create afuture full of smiles.
Create with ideas. Create with passion.
Create by uniting the aspiration ofpeople.
Human creation with intelligence andheart.
The TODA CORPORATION way.

56

appendix

57

Floating complex

Offshore wind power plant and floating housing

58

Floating complex

59

Basic Policies on Sustainability
Sustainability Vision 2050

A corporate group that creates a better future
Materiality
CX150 (target/strategy)
CX150

Create cities that support
prosperous life

CX150

Develop infrastructure inharmony withenvironmentNon-financial targets
E

Realize a decarbonizedsociety

CitiesSocial platform

Decarbonize

Always safe andsecure infrastructure

Create carbon
neutral society

CX150

S

G

Cities that add color
to lifeTechnological innovationand improvement ofvalues provided

ValuesProvide values thatforge the future

Create a workplace thatgives “joy” of working

Platform for sustainablegrowthPeopleCreate dynamic
workplace6061