Results Briefing for theSecond Quarter Ended
September 30, 2023
November 14, 2023

TODA CORPORATION
1This material contains forward-looking statements regarding TODACORPORATION and the Group’s business plans, strategies, andearnings forecasts.
These statements are TODA CORPORATION’s forecasts based on
currently available information and may involve potential risks anduncertainties.
The actual results or developments may differ from the forwardlooking statements due to changes in various factors.

2

Today’s Program

１．Results Briefing

General Manager of Corporate Administration Group

Toshihiro Yamazaki

２．Progress of the Management Plan
President and Representative Director

Seisuke Otani

3

１．Results Briefing
General Manager ofCorporate Administration Group
Toshihiro Yamazaki
4Apr-Sep FY2023 Financial Highlights (Consolidated)

︓


︓


︓

Consolidated net sales¥230.3 bil (-4.0％ YoY)

Net sales decreased 4.0% YoY to ¥230.3
bil, mainly due to decrease in sales in theArchitectural Construction, Civil
Engineering and Domestic Investment
and Development business.

(Billions of yen)

Consolidated net
sales
Gross profit

Operating income
Operating income¥3.1 bil（+580.6％ YoY）
Operating income increased 580.6% YoY
to ¥3.1 bil, mainly due to the impact ofthe provision for loss on construction
contracts on several projects recorded in
the previous consolidated fiscal year.

Orders received(non-consolidated)¥153.7 bil （-16.0％ YoY ）Orders decreased 16.0% to ¥153.7 bil,mainly due to decrease in orders forprivate-sector construction in both
domestic Architectural Construction anddomestic Civil Engineering.

Apr-Sep
FY2022Apr-Sep
FY2023

Change(YoY)

FY2023(Forecasts)

239.8

230.3

-4.0%

540.0

24.6

24.1％

66.0

19.8

(8.3%)(0.2%)(1.4%)

3.1

580.6％

16.0

Ordinary income

3.7

8.2

119.9%

19.5

Net profit
attributable toowners of theparent

3.2

5.2

62.7%

19.5

182.9

153.7

-16.0%

460.0

Orders received(non-consolidated)

0.4(10.7%)

5

[Consolidated] Results by Segment（Billions of yen）

Apr-Sep
FY2023

Architectural
Construction

Civil
Engineering

Domestic
Investment
andDevelopment

DomesticGroup
Companies

Net sales

139.7

54.3

4.9

22.7

Segment
income(loss)

-0.5

2.4

0.6

(ー)

(4.5)

Apr-Sep
FY2022

Architectural
Construction

Net sales
Segment
income(loss)(Profit margin)(Profit margin)

Overseas
Group
Companies

Environment
and Energy

Adjustment

23.1

0.6

-15.2

230.3

0.7

0.7

-0.1

-0.6

3.1

(13.7)

(3.2)

(3.1)

(ー)

Civil
Engineering

Domestic
Investment
andDevelopment

DomesticGroup
Companies

143.6

67.7

12.5

21.3

-4.4

4.6

0.8

(ー)

(6.8)

(6.7)

Overseas
Group
Companies

Total

(1.4)

Environment
and Energy

Adjustment

5.9

0.7

-12.2

239.8

0.3

0.3

-0.2

-0.8

0.4

(1.6)

(5.4)

(ー)

Total

(0.2)
6

Major Orders Received
Ordering Parties
Architectural
Construction

Civil
Engineering

Name of Works

Kushiro City

Kushiro City General Hospital New Tower Construction

KOKUBU GROUP CORP.

(Tentative name) KOKUBU No.2 Head Office Building New
Construction Plan

Tokyo Metropolitan
Government

Tokyo International Forum (5) Renovation Work

(Medical Corporation)
Kensuikai

Medical Corporation Kensuikai Takanedai Hospital,
Asahinosato Relocation and New Construction WorkTokyo Metropolitan
Government

Tokyo International Exhibition Center (5) Conference Tower
and West Exhibition Hall Renovation Work

Ministry of Land,
Infrastructure, Transportation
and Tourism, Chubu Regional
Development Bureau

Reiwa 5 Shitara Dam Construction 1st Phase Work

Ministry of the Environment

Restoration of Temporary Storage Facilities under theJurisdiction of Hamadori Kita Branch Office from Reiwa 5-6

Yokohama City

Daiichi Totsuka Line 1200mm Caliber Water Distribution
Pipe Renewal Work

Akita City

Niida Water Filtration Plant Intake and Water Conduction
Facility Improvement Work7

Major Carryover Works
Architectural
Construction

Civil
Engineering

Ordering Parties

Name of Works

Shibuya Station Sakuragaoka Exit
District Redevelopment
Association

Shibuya Station Sakuragaoka Exit Construction Work
Associated with Type 1 Urban Revitalization Project

St. Marianna University School of
Medicine

St. Marianna University School of Medicine Sugao
Campus Renewal Plan

Maishima Development SPC(Tentative name) DPL Osaka Maishima New Construction
Work

JAPANET HOLDINGS Co., Ltd.

Nagasaki Stadium City Projects (II, III Sections)

Lam SPCESR OS1 Data Center New Construction Work

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

Yokohama Shonan Road Tunnel WorkWest Nippon Expressway
Company Ltd

Shin-Meishin Expressway Ujitawara Tunnel East Work

Central Nippon Expressway
Company Ltd

Tokyo Outer Ring Road Main Line Tunnel (North Bound)
Tomei North WorkTokyo Metropolitan Government

Johoku Chuo Park Detention Pond (Phase 1) Work28[Non-consolidated] Carryover Works
738.5
3.6
263.6

（Billions of yen）

718.6
0.5
279.2



The amount carried over to the next
fiscal year decreased slightly from theprevious fiscal year.

In domestic Architectural
Construction business, the amountdecreased by ¥16.3 bil from theprevious fiscal year due to decrease in
private-sector construction works.

In domestic Civil Engineering business,both public and private sector
construction decreased, resulting indecrease of ¥11.0 bil from theprevious fiscal year.

691.0
Overseas

0.3

Civil
Engineering

268.1

471.2

438.8

Architectural
Construction

422.5

Mar 2022

Mar 2023

Sep 20239

１-1．Details of Financial Results

10[Consolidated] Overview of TODA Group
Business

Subsidiaries in JapanAPEC Engineering Co., Ltd.

PT Tatamulia Nusantara Indah

Chiyoda Kenkou Co., Ltd.

Thai Toda Corporation Ltd.

Construction Toda Road Co., Ltd.

Sato Kogyo Co., Ltd.

Showa Construction Co. , Ltd.

and 3 other companies

Real estate

OthersOverseas Subsidiaries

Toda Bldg. Partners Co., Ltd.

Toda Vietnam Co., Ltd.

Toda America, Inc.

and 1 other company

Toda Finance Co., Ltd.

TODA Investimento do Brasil Ltda.

Toda Staff Service Co., Ltd.

TODA Energia do Brasil Ltda.

Towa Kanko Kaihatsu Co., Ltd.

TODA Energia 2 Ltda.

Offshore Windfarm Construction Co., Ltd.
Toda Noubou Inc.

and 3 other companies

companies

22

companies

and 11 other companies
PT Toda Group Indonesia

Goto Floating Wind Power LLC

39

Toda Asia Pacific Pte. Ltd.

4companies

13

companies

Domestic Group Companies
Overseas Group Companies
Environment and Energy
11[Consolidated] Balance Sheets
Assets815.5
Current
Assets431.5

Non-current
assets190.7
Investments
and otherassets193.2

Mar 2023

(Billions of yen)

-48.7

766.8

-87.3

Current
Assets
344.1

+20.4

Non-current
assets
211.1

+18.2

Investments
and otherassets
211.4

Sep 2023

Major variable factors

Current Assets
Cash and deposits
Accounts receivable
Costs on uncompleted
construction contracts

Non-current assets
Buildings and structures
Machinery, vehicles, tools,
furniture and fixtures
Land
Construction in progress

-87.3
-10.1
-87.7
+7.2

+20.4
＋5.9
+0.3
+1.9
＋12.5

Investments and otherassets+18.2

Investment securities

+16.2



Current ratio（March 2023 ➡ September 2023）

139.2% ➡ 142.9％

12

[Consolidated] Balance Sheets
Liabilities and Net Assets
815.5
Current
liabilities
310.0
Non-current
liabilities
182.2

Net
assets323.2(Billions of yen)

-48.7
-69.1
+0.9
+19.4

766.8
Current
liabilities
240.9
Non-current
liabilities
183.2



Current liabilities
Notes and account payable-trade
Short-term loans payable
Advances received on uncompleted
construction contracts

Non-current liabilities
Long-term loans payable
Deferred tax liabilities

Net assets
Retained earnings
Valuation difference
on available-for-sale securities
F/X translation adjustment

Net
assets342.6

Mar 2023

Sep 2023

Major variable factors
-69.1
-37.1
-43.5
+13.7

+0.9
-4.4
+5.6

+19.4
+0.9
+11.1
+6.1

Equity ratio(March 2023 ➡ September 2023）

38.9% ➡ 43.8％

13

[Non-consolidated] Cross-Shareholdings
159

160

Number of stocks

104.5

159.5
102.9

The balance of cross-shareholdings
is being reduced to secure funds forinvestments in growth.

At least ¥30 bil worth of crossshareholdings to be sold over three
years (FY2022 – FY2024)* Market value basis

158(Billions of yen)

163.9



174.7

118.8

Valuation
Difference

59.4

56.7

55.9

Book
Value

Mar 2022

Mar 2023

Sep 2023

Mar 2024(Forecasts)

Sales of cross-shareholdings stocks
Number ofSales value
stocks soldMar.2022

12 stocks¥4.5 bil

Mar.2023

10 stocks¥11.5 bil

Sep.2023

5 stocks¥3.3 bil
14

[Consolidated] Interest-Bearing Liabilities（Billions of yen）

84.2

During the second quarter ofthe fiscal year ending March 31,
2024, interest-bearing
liabilities decreased by ¥48.0
bil due to ¥43.5 bil decrease in
short-term loans payable and¥4.4 bil decrease in long-termloans payable.

In the fiscal year ending March
31, 2024, interest-bearing
liabilities is to be ¥230 bil,keeping the D/E ratio below
0.8x in order to maintainfinancial soundness.

230.0

211.5
179.3



163.5
124.9

Longterm
120.4

95.1

86.6

Mar 2022

Mar 2023

Sep 2023

Mar 2023(Forecasts)

0.57x

0.67x

0.49x

D/E ratio

Short
-term
43.0

* D/E ratio = Interest-bearing liabilities / Total Shareholders’ Equity

15

[Consolidated] Provision for Loss on Construction Contracts（Billions of yen）

9.43－¥2.22 bil

Overseas



0.05

Civil
Engineering

2.89

7.20

Civil
Engineering

3.28

2.66

Overseas

Architectural
Construction
6.47

0.05
Civil
Engineering
2.19－¥2.22 bil (YoY)

Overseas

0.01

Architectural
Construction
3.90

Provision for loss on
construction contracts



Major variable factors:
Provision for loss on
construction contracts
decreased in domestic
Architectural Construction
business due to progressof construction andimproved profit margins.

Architectural
Construction

0.41

Mar 2022

Mar 2023

Sep 2023

16

[Consolidated] SG & A


SG&A Ratio

9.3%
8.1%

9.3%
Consolidated

50.0

In addition to the above factors, on
consolidated basis, the expenses
increased by ¥2.0 bil due toconsolidation of TATA as aconsolidated subsidiary.

Nonconsolidated

SG&A（Billion of yen）

41.0

Consolidated

19.3

16.7

Sep 2022

21.4

Nonconsolidated

17.3

Sep 2023

Mar 2024 (Forecasts)

During the second quarter of the
fiscal year ending March 31, 2024,
on non-consolidated basis, theexpenses increased by ¥0.6 bil YoY
mainly due to increase in personnel,
technology R&D and digitalization
costs.

In the fiscal year ending March 31,
2024, both non-consolidated andconsolidated SG&A expenses are
expected to increase from theprevious fiscal year due to continued
investment in human capital,technology R&D, and digitalization.
17

[Consolidated] Cashflow
Net increase (decrease) in cash and cash equivalents (Mar 2023 to Sep 2023) -9.3
Operating CF +62.3

Inv CF -23.0

Financial CF -52.7（Billions of yen）

+87.7 +0.7
+1.7

95.8

-23.3

-1.4

+9.1
+3.1
+3.2

-50.6

+4.1
-4.2

86.5

-1.0

-38.4

Investment

Other
IncomeDepreciation
Mar before
securities
operatingtax
CFAccounts
Accounts
Tangible2023
payablereceivable

fixed assets

Conversion
Dividends
Short-term
adjustments
payments
loans payable
Other
Long-term
Otherfinancial CF
loans payable
Investment
CF

Sep
2023
18

Acquisition of Own SharesAt the Board of Directors Meeting held on November 13, 2023, the Company
has resolved the matters relating to acquisition of its own shares.

Details of matters relating to the acquisition(1) Type of shares to be acquired:

The Company’s common stock(2) Total number of shares to be acquired:

7,500,000 shares (upper limit)(Equivalent to 2.4% of total number of sharesissued excluding own shares)(3) Total amount of acquisition:

5,000,000,000 yen (upper limit)(4) Acquisition period:

November 14, 2023 through November 13, 2024
(The period will end early if the limits set forth in(2) or (3) are reached, whichever is earlier.)(5) Acquisition method:

Market purchases on the Tokyo Stock Exchange【Reference】
Status of holdings of own shares as of September 30, 2023
Total number of shares issued (excluding own shares):312,546,208 shares

Number of own shares:

10,110,588 shares19１-２．Earnings Forecasts

20

[Consolidated] FY2023 Earnings Forecasts（Billions of yen）

FY2022
Consolidated
net sales

FY2023
Forecasts

Change (YoY)

547.1

540.0

-1.3%

-7.1

Operating income

14.1

16.0

+13.2％+1.8

Ordinary income

19.0

19.5

+2.4％

+0.4

Net income
attributable toowners of the parent

10.9

19.5

+77.3％+8.5

Orders received(non-consolidated)

426.7

460.0

+7.8%

＋33.2
21

[Non-consolidated] FY2023 Earnings Forecasts
Amount(¥bil）Net sales
Gross profit
Profit from construction business

440.0
53.5
47.0

Profit margin
(%)

12.2
11.2

[Domestic Architectural Construction]

25.9

9.0

[Domestic Civil Engineering]

20.9

16.2

[Overseas]

0.0

6.2

6.5

32.5

Profit from Investment and Development
business and others
Selling, general and administrative
expenses
Operating income
Ordinary income
Income taxes
Net income

41.0
12.5
16.0
7.8
18.2

2.8
3.6
4.1
22

[Non-consolidated] Earnings Forecasts for Construction Business
Orders Received forConstruction

700.0（Billions of yen）

Net Sales of Completed
Construction Contracts

700.0（Billions of yen）

460.0

600.0

446.5

420.0

600.0

Overseas
Overseas
2.0
-1.1
Civil
119.0
Engineering
141.6

500.0

Overseas
1.9

Overseas
1.3

500.0

Architectual 339.0
Construction
286.1

200.0

426.7

Mar 2023

Mar 2024(Forecasts)

400.0
300.0
100.0
0.0

Civil
Engineering
126.0

129.7

Architectual
Construction 289.0
318.5

Mar 2023

Mar 2024(Forecasts)

Gross Profit Margin on
Completed
Construction Contracts (%)
Civil Engineering
16.7

400.0
300.0

Total
9.1

0.0

11.2
9.0

200.0
100.0

16.2

Architectural
Construction
6.3
Mar 2022

Mar 2023(Forecasts)

23

2．Progress of the Management Plan
President and Representative Director
Seisuke Otani

24

Business and Financial Outlook

25Market Environment: Construction Investment
Strong construction investment is anticipated as social activities
normalize
Construction Investment(Trillions of yen)
80

70
60
50

(Nominal value)

61.8 62.3
5.4

5.4

68.7
66.4 67.8
6.7

7.1

7.4

18.7

17.7

18.1

Forecasts

71.4 72.2
7.5

7.4

18.8

18.8

Civil
Engineeringprivate

40

Civil
Engineeringpublic

30

Constructionprivate

20

15.8

16.7

34.7

34.4

34.5

36.6

37.0

38.3

5.7

5.7

6.3

6.2

6.1

6.7

39.0

Constructionpublic

10
0
FY

6.8

2018 2019 2020 2021 2022 2023 2024

Outlook for FY2023
 With the normalization ofsocial activities, strong
investment is expected inboth construction andcivil engineering.
Outlook for FY2024
 Growth is expected to be
slower than in the previous
fiscal year, but overall
investment is expected toremain strong.

Source: “Outlook for Construction Investment based on the Construction
Economics Model”, Research Institute of Construction and Economy(October 2023)

26

Market Environment: Construction Material Prices and Labor Cost
In response to concerns about soaring construction costs, thoroughly
pursue orders with an emphasis on profitability
140
135
130

Construction
labor unit price per day 133.3

Construction Material Price Index(Oct 2023)(Tokyo, based on 2015)

136.8
134.3

Architectural Construction(Nationwide, all job categories,
based on 2015 )

130

126.4

27,000Civil Engineering

125

Index based on 2015

25,000

（¥）

120

120
115

22,227 23,000
21,08421,000

110

110

108.4

19,00018,078105
100

29,00017,000

100
19

20

21

22

23

（FY）

15,00017

Source: Japan Construction Price Survey, Ministry of Land, Infrastructure, Transport and Tourism

18

19

20

21

22

23（FY）
27

Market Environment: Construction Material Prices and Labor Cost
Concerns about the impact on the construction term due to soaring
equipment costs and tight schedules of facilities companies
Social backgroundThe entire supply chain of the manufacturingindustry is returning to the domestic market
due to the uncertainty of the global situation.
Currently, large-scale projects are underway
throughout Japan, creating a tight supply
and demand situation for capitalconstruction.

Examples of Recent Domestic Factory Investments(under construction or planning as of September 2023)
Against the backdrop of strengthening supply chains, economic
security, and rising domestic cost competitiveness,
manufacturers are returning to their production bases in Japan,
and construction of factories and other facilities is proceeding inparallel throughout Japan, which is having a significant impact
on the supply-demand balance for capital construction work.
ROHM Chikugo Factory(Fukuoka)

Toshiba Electronics Kaga
Toshiba Factory(Ishikawa)

Sony Group Nagasaki TEC(Nagasaki)

JASM (TSMC) Kumamoto
Factory 1st & 2nd phase(Kumamoto)

Fuji Electric Tsugaru
Semiconductor (Aomori)Kioxia Kitakami Factory(Iwate)Tokyo Ohka Kogyo
Koriyama Factory(Fukushima)
Renesas Electronics
Kofu Factory(Yamanashi)

SUMCO Imari Factory (Saga)

Mitsubishi Electric Koshi
Factory (Kumamoto)Rapidus IIM-11
Construction Project(Hokkaido)

Denso USJC Mie Factory (Mie)Kioxia Yokkaichi Factory (Mie)
Mitsubishi Electric Fukuyama
Factory (Hiroshima)
Micron Hiroshima
Factory (Hiroshima)There are cases where labor costs and otherexpenses rise significantly depending on how
busy the equipment subcontractors are.

In light of the fact that the overtime cap will be applied from next year, theconstruction companies may consider avoiding taking orders for projects
that do not have an appropriate construction period.

Equipment used in large buildings is often
custom-built or out of the central price range,
which differs from average material pricetrends and can cause prices to skyrocket insome cases.

If the equipment subcontractors have difficulty in making arrangements, it
may be necessary to propose design changes, alternative products, orconstruction methods to the client.

Source: Excerpts from data provided by the Japan Federation of Construction Contractors' Associations.

28Market Environment: Construction Material Prices and Labor Cost
Prices for custom-built equipment, especially used in large-scale buildings, haveincreased significantly(Reference) Price escalation rate for facilities and equipment (custom-built products, etc.)
Standard distribution

Off-grid Data N/A
A/C
Panel panel
Transformer Data N/A
Air handling unit/
By Construction Research
By Construction Research powerup
Equip packaged A/C
Boards 5.6%
equipInstitutesurveyInstitute survey
By Construction Research
10.5% upgeneration
Institute survey
By Construction ResearchInstitute survey
equip

N/A
Water Data
By Construction Researchtanks Institute survey

Pumps Volute pump
20.3% upBy Construction ResearchInstitute survey

Refrigeration equipment/cooling tower

Electric regulator/

Partial data not available

Partial data not available

Ducts Spiral duct
23.8% upBy Construction ResearchInstitute survey
Partial data not available

Data N/A
Automatic 3way valve
Elevators By Construction Research
Heating 7.0% up
up
Institute survey
controls 15.2%
By Construction Research
By Construction Researchequip Institute survey
Institute survey

Note 1: Figures in red above are averages of price increases for 12 major construction companies (11 for *1) with comparable survey prices for such equipment(custom-built equipment) in December 2020 and September 2023. *2 includes labor costs related to installation work.
Note 2: Figures in blue above are price increases between December 2020 and September 2023 (simple average of each item) for the same and similar equipment(general-purpose products) based on survey by the Construction Research Institute.

※The percentage increase figures (in red) are simple averages for custom-built products for comparison with the percentage increase as reported by theConstruction Research Institute, and do not represent individual price increases.
Source: Excerpts from data provided by the Japan Federation of Construction Contractors' Associations.

29Performance Targets and Results※ Unchanged from the forecasts atthe beginning of the fiscal year

Profitability
Capitalefficiency
Productivity
Shareholder
return•••2024 Targets

FY22 Actual

FY23 Forecasts(Medium-termManagement Plan)

Consolidated sales

547.1

540.0

600.0 ¥bil

Operating income

14.1

16.0

33.0 ¥bil

Operating margin

2.6

3.0

5.5 ％

Net income

10.9

19.5

26.0 ¥bil

ROE

3.5

6.1

8.0 ％

11.71

12.50

15.00 ¥mil

DOE

2.7

2.7

2.5 ％

Total return ratio

76.5

44.3

40.0 ％

Labor
productivity (nonconsolidated)

Labor productivity = Added value (operating income + total labor cost) / Number of employees (average during the period, including temporary workers, etc.)
DOE (dividend on equity ratio) = Total amount of dividends / equity capital
Total return ratio = Total amount returned to shareholders(Total dividends + Total amount of own shares acquired) / Net income attributable to shareholders of the parent

30

Results by Segment* Target for FY24 reclassified due to changes in segments.
* Consolidated net sales and operating income for each segment include elimination of intracompany transactions.

FY22 Actual

Consolidated net sales
Architectural Construction
Civil Engineering

Strategic

Domestic Investment and Development/
Environment and Energy (GX Green Transformation)
Domestic Group Companies
Overseas Group Companies (Global)

Operating income
Architectural Construction
Civil Engineering

Strategic

Domestic Investment and Development/
Environment and Energy (GX Green Transformation)
Domestic Group Companies
Overseas Group Companies (Global)

547.1

¥bil

320.6
125.9

¥bil

20.3

¥bil

52.3
37.9

¥bil

14.1

¥bil

¥bil
¥bil

FY23 Forecasts

540.0
290.0
130.0

¥bil

FY24 Targets(Medium-termManagement Plan)

600.0 ¥bil

¥bil

350.0 ¥bil
145.0 ¥bil

22.0

¥bil

30.0 ¥bil

55.0
52.0
16.0
1.6
9.4

¥bil

55.0 ¥bil
28.0 ¥bil¥bil

9.8 ¥bil
14.2 ¥bil

¥bil

¥bil
¥bil

33.0 ¥bil

(2.7)
10.0

¥bil

3.3

¥bil

3.5

¥bil

0.0 ¥bil

1.9
1.9

¥bil

1.5
3.0

¥bil

3.5 ¥bil
5.5 ¥bil

¥bil

¥bil

¥bil

¥bil

31

Construction
Business

Carryover Works (Architectural Construction)
FY22 Q2

FY23 Q2Stores 2.4
OthersOthers 2.2［¥9.0bil］
Others2.1
Accommodations
Redevelopment 2.1
5.9［¥19.5bil］
Factories［¥19.7bil］
4.7
4.3
Warehouse and
4.7
Offices andand power
Housing
distribution facilities
government
plants 7.8
6.8
Factories
24.3
buildings
Redevelopment Housing
and power
31.0［¥110.8bil］
7.6
11.8
plantsCarryover ［¥131.0bil］
Carryover［¥34.6bil］
8.0［¥33.7bil］
Works
Works
［¥54.1bil］
Accommodations
Others 2.4
3.2¥456.9bil

Medical and （end of Sept 2022） Offices andwelfaregovernment
facilities
buildings
12.4
21.6［¥56.6bil］ Educational, ［¥98.7bil］
research andcultural facilities
16.5［¥75.2bil］

Warehouse and ¥422.8bil
distribution （end of Sept 2023）
facilities
Educational,
11.5
research and［¥48.7bil］ Medical and cultural facilities
welfare facilities
17.6
14.6
［¥74.4bil］［¥61.5bil］* In-house construction works (approx. ¥57.0 bil in FY22 Q2, approx. ¥69.2 bil in FY23 Q2) not included.
* Unit: %, [ ]: contract amount32

Carryover Works (Architectural Construction)
FY22 Q2

Construction
Business

FY23 Q2
Others
10.8

OthersErosion and
Erosion and13.1
flood control
flood control
3.2
1.0
Roads
Land
Land
33.7
development
Roads
development［¥87.6bil］
6.3
40.1［¥11.4bil］
4.3［¥16.4bil］［¥107.5bil］
Renewable
CarryoverCarryoverenergyWorks
Works
Tunnels
Renewable
11.8
31.6¥260.3bilenergy［¥31.7bil］ ¥268.1bil（end of Sept 2022）［¥82.2bil］
Tunnels
14.0（end of Sept 2023）［¥34.7bil］
38.0
Watersupply［¥101.8bil］
Water
and sewage
supply and Railways
12.4
Railways
18.6
Others ［¥33.1bil］
sewage
17.5
7.3
13.3
［¥48.4億円］Shields［¥46.9bil］［¥19.4bil］［¥36.5bil］
15.2
OthersBridges and［¥39.5bil］
Bridges and11.6
overpasses
Shields
overpasses［¥30.1bil］
7.2
13.8［¥36.9bil］
10.9［¥29.3bil］［¥18.7bil］* In-house construction works (approx. ¥18.0 bil in FY22 Q2, approx. ¥5.7 bil in FY23 Q2) not included.
* Unit: %, [ ]: contract amount33

Investments

34

Investment Update
Full-scale investment in new TODA BUILDING to be completed in FY24
FY22 Actual

Investments
for GrowthIntangible
AssetsReal Estate
Development

77.0 ¥bil

160.0 ¥bil

28.3

¥bil

6.3

¥bil

26.0 ¥bil

30.0 ¥bil

M&A

3.9

¥bil

ー ¥bilー ¥bilHuman Capital

0.4

¥bil

1.0 ¥bil

3.0 ¥bil

3.2

¥bil

13.5 ¥bil

20.0 ¥bil

2.3
0.5
45.1

¥bil

3.5 ¥bil
1.0 ¥bil
122.0 ¥bil

9.0 ¥bil
3.0 ¥bil
225.0 ¥bil

Environment &EnergyTechnical
Research andDevelopment
Digitalization

Machinery, equipment, etc

Total
•
•

FY23 Plan

Medium-term
Business Plan 2024
（2022-2024)（Incl. ¥9.0bil for New TODA BLDG）

¥bil
¥bil

（Incl. ¥30bil for New TODA BLDG）

Figures are total of general and administrative expenses and amount recorded in assets
FY22 results updated with finalized figures

35

Joso Project (Agri-Science Valley Joso)

Agricultural area
Urban area

Opening ceremony (May 26)

Spa facilities(under construction)
TSUTAYA BOOKSTOREJOSO ICRoadside
StationPanoramic view of Joso Project

Received Grand Prize/Minister of Internal
Affairs and Communications Award in the“11th Platinum Award” (Nov 6)
36

Investment for Growth¥190 bil of growth investment planned in the Medium-term
Planned investment
Management Plan (FY22-FY24)
other than new TODA BUILDING
Investment/
Investment Recovery(by fiscal year)

M&A(¥bil)

103.0
26.0

Net Investment 86.0

Agri-Science Valley Joso
Construction of spa facility in progress(Joso City, Ibaraki Prefecture)

Operation scheduled for FY24

Environment & energy
Real estate development
3.9

77.0

38.5

Exterior view of “Joso Project Spa Facility” (tentative name)

6.3

Net Investment 23.3

Commenced development ofmulti-tenant logistics warehouse

28.3(Urasoe City, Okinawa Prefecture)(¥9.0bil for New TODA BLDG ）(¥30.0bil for New TODA BLDG ）

-15.1

-17.0

-0.1

Investment-15.2
Recovery

FY22 Actual* FY22 Actual updated with finalized figures.

Investment

Operation scheduled for Jan 2025

-17.0
Recovery

FY23 Plan* Net investment =Investment amount – Collected amount37

Investment in Intangible Assets
Proactive technological research and development to create innovations
Major technological research and development

Investment(by fiscal year)
Digitalization
Technology R&D

18.0
3.5

(news releases for the first half of FY2023)

Real-time measurement and management technology
for spray thickness: Establishment of “spray navigation
system” *Joint development with TODA CORPORATION, FTS Co., Ltd.,
Shimizu Corporation, Nishimatsu Construction Co., Ltd., andMaeda Construction Co., Ltd.

13.5

Obtained Construction Technology Review and Certification(for architectural technology) * Joint development with
TODA CORAPOTION and Nishimatsu Construction Co., Ltd.

Millimeter
wave
radar

MotioncapturecameraHuman capital

6.1

Environmentally friendly concrete“SLAGREET®”

A new spraying machine (Hercules-Navigator)
equipped with a “spraying navigation system”

Application to pressure slab to New TODA BUILDING

2.3
3.2
0.4

FY22
Actual1.0

Spray thickness display

FY23
Plan

* Figures are total of SG&A and amount recorded in assets* FY22 actual updated with finalized figures

Realtime spray finishing display

Certificate of Construction Technology Review
and Certification (for architectural technology)

38

Management Priority Initiatives
New TODA BUILDING

Overseas Business

Renewable Energy Business39

Priority
Initiatives

Priority Initiatives Roadmap
New TODA BUILDING construction volume peaks
Phase1（Medium-term
Plan 2024）(FY)

Overseasbusiness
Renewableenergybusiness

Priority Initiatives

New TODA
BUILDING

Floating
offshorewind power
generation
Floating
complex

2023

2022

New building constriction

2024
Completion

Enhance local business/
strengthen alliances
TATA becomesa subsidiary

Build wind farm
2,100 kW×8 turbines

Phase2
To 2027

Phase3
To 2030150 thAnniversary
2031

Monetization, technology andknow-how deployment

Stable growth, synergies
Start
Operation
Jan 2026

Realize cocreation society

Development for larger scale, deploy to new areas

Initiatives to realize floating complex
40New TODA BUILDING: Progress of Construction

Full view of the construction site (Nov 8, 2023)

System scaffold climbing status(core wall 15F)

Priority
Initiatives

41

New TODA BUILDING: Art Program

Priority
Initiatives

Launching projects to build an ecosystem of a town througharts and culture A project to support emerging artists

1through an open call for contemporary art
works

Creation/Interaction

 Selected works exhibited on the temporary

Support for
creative work,
opportunities forinteraction

3

Evaluation/MarketCreation

Lending and salesof artworks, help
artists raise profile

Start the Future from Here

2

Presentation/
Dissemination

Venue for presentationof artworks,
dissemination ofactivities



Building an art-based community
ecosystem

Generation of cycles of creation andinteraction, presentation anddissemination, evaluation and market
creation

enclosure at TODA BUILDING construction
site as well as providing opportunities tohold solo exhibitions

Tokyo
Dialogue2022-2024

 Joint project by T3 PHOTO FESTIVAL TOKYO,

ART POWER
KYOBASHI Talk session for the art program to start inan outdoor international photography
festival, and TODA CORPORATION Expressing the changing city through a“dialogue” that weaves together photos andwords using Kyobashi as the setting

earnest with the opening of new TODA
BUILDING

 Date and time: Saturday, December 16
Pre-EventPart 1: 13:30 Part 2: 16:00
Talk Session VOL.1 Venue: Artizon Museum 3F Lecture Room42

Priority
Initiatives

New TODA BUILDING: Art Program
Support Program for
Emerging Artists
Start the Future from Here

Outdoor International Photography Festival
Joint project“Tokyo Dialogue 2023”▲ 4th Excellence Award-winning work exhibited on the temporary enclosure at construction site▲”TOKYO DIALOGUE 2023” exhibited on the temporary enclosure at construction site

Term: November 2021 through March 2024
* Total of four open calls for proposals
Venue:Temporary enclosure of TODA BUILDING construction site (north side)
KYOBASHI ART ROOM (4F, 1-8-4 Kyobashi, Chuo-ku, Tokyo)
Organized and planned by: TODA CORPORATION

Term: Saturday, October 7, 2023 through Monday, December 18, 2023
* Term extended
Venue:Temporary enclosure of TODA BUILDING construction site (east & south sides)
Organized and planned by: TODA CORPORATION, T3 PHOTO FESTIVAL TOKYO

Photographed by Ken Kato※In July 2023, recognized as "This is MECENAT 2023" by the Japan Corporate
Mecenat Council as an initiative to create a prosperous society through support forarts and culture.

Photographed by Ken Kato

43

Priority
Initiatives

Overseas Business
Established "Toda Asia Pacific Pte. Ltd." in Singapore with the
Asia/Oceania region as the core of our overseas business
Global business headquarters

Japan






Key for future global business

Formulation and deployment of effective strategies
Appropriate allocation of domestic resources to overseas,
human resource development
Development and implementation of necessary and sufficient
governanceCollaboration with each business division, dissemination of
cutting-edge technology and know-how

Stable generation of cash

Southeast Asia

Support for overseas expansion of Japanesecompanies
Expansion of construction and development
businesses through synergies with partnercompanies (initiatives in civil engineering work)
Promoting localization of management inThailand and Vietnam

OceaniaNorth America

Increase income gains from investment business
Possibility of contributing project funds to otherareas
Flexible response in consideration of economic
trends

Shift to new business model

Toda Asia Pacific Pte. Ltd. South AmericaGovernance support in countries where TATA
and others operate
Optimization of management resources suchas human resources

Developing new business by taking
advantage of the local
characteristics (natural resources)

Securing a business base in “developed
countries” with room for growth44

Floating Offshore Wind Power Generation

Priority
Initiatives

Efforts to develop technology through repeated demonstrations to
upscale wind turbines
Offshore wind power generation
project off the coast of Goto City

Operation start date postponed to January2026 (initially scheduled for January 2024)Corrective measures have been taken for the two
floating structures in the ground yard wheredefects were found, and construction work has
resumed.



Of the three units already installed at sea, onewill be brought ashore and the soundness of thefloating structure will be verified before adecision on how to handle the remaining twounits will be made.

Conceptual drawing of completion

Panoramic view of the construction yard
(photo taken on October 19)

Formulation of TODA CONSTRUCTION’s“Offshore Wind Power Business Strategy"
45

Priority
Initiatives

Offshore Wind Power Generation
Six companies to jointly own self-elevating work platform (SEP)

Features of SEP in possessionA used SEP-equipped crane is being
modified to lift 1,300 tons, making it
possible to handle larger wind turbine
assemblies (over 15 MW class).



By taking advantage of the installed leg
length, it is possible to support
operating water depths of up to 60m.

Capable of constructing both groundmounted and floating offshore wind
power generation facilities.

Schedule
Outline of Established Company

Trade name: Jack-up Wind Farm Construction Co., Ltd.
Capital: ¥100 mil yen
Investing companies: TODA CORPORATION,
Kumagai Gumi Co.,Ltd.,
Nishimatsu Construction Co., Ltd.,WAKACHIKU CONSTRUCTION CO., LTD.,
IWATA CHIZAKI INC.,YOSHIDA-GC
Address: 2-8-5 Hatchobori, Chuo-ku, Tokyo
Representative: Masatoshi Yamada (TODA CORPORATION)
Established: March 14, 2022

Remodeling to be completed in March2025



Scheduled to start operation in
September 202546

Non-financial Business Objectives

47Non-financial Business Objectives
Quantitative evaluation indicators
E

Reduction rate (vs FY2020）
CO2 emissions※ Results at the end of June
Scope 1&2 Basic unit (per 100 mil yen）

FY24

ActualForecasts(Actual)Targets-29.2-16.8 %

13.6

13.5

11.2 t-CO2

-0.8

－

-10.0 ％

700.4－

540.7 t-CO2

2.9－

3.5 t-CO2

Total accident frequency rate

4.22

4.23

1.00

Accident frequency date

0.40

0.30

0.10

5,567

6,150

7,500 yen

Reduction rate（vs FY2020）
Category 1 basic unit (per 100 mil yen)
Category 11 basic unit (per sqm)

G

FY23

-14.5

CO2 emissions
Scope 3S

FY22※Results at the end of September※Results at the end of September

Labor productivity per hour

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 Scopes 1 and 2
Category 1: Emission at time of construction material manufacturing, Category 11: Emission during period of operationof constructed buildings

Basic unit:Scopes 1 + 2: Emission per ¥100 million net sales
Category 1: Emission per ¥100 million transaction amount, Category 11: Emission per 1 sqm 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 per hour = Amount of added value (operating income + total human resources expenses) / Number of employees /Average total working hour48

CO2 Emissions (Scope 1&2)

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

CO2 Emissions（10,000t-CO2）

9.36
0.48

0.53
1.15

9.52
0.46

0.50
1.41

FY23 Forecasts

vs FY20

3.98

0.75

0.69

2.32

2.47

20

21

SBT Targets

vs FY20

vs FY20-29.2%-16.8%

8.00
0.40
0.46
0.58

4.13

Medium-termManagement Plan Targets

7.79-42.0%

0.40
0.44

Office etc-S2

0.46
0.42
0.17

0.96

Civil Engineernig-S2

2.88

3.44

6.63

Initiatives to reduce CO₂

Office etc-S1

5.43

3.23

0.72

2.60

22

Civil Engineernig-S1

•

0.29
2.40

23

0.62

Architectural
Construction-S2

1.93

Architectural
Construction-S1•

24［Forecasts］［Targets］•

30［Targets］※ Due to the acquisition of TATA as a consolidated subsidiary, the actual figures for FY20, FY21 and FY22 have been revised.

“ZEB" being deployed in
temporary site offices.

Source: BELS case study data from the website of the Japan Housing
Performance Evaluation and Labeling Association (as of the end of July2022).
ZEB (Net Zero Energy Building) is a building aims at annual zero primaryenergy balance by saving as much energy as possible with such means as
better heat insulation and high-efficiency equipment as well as generatingenergy by solar power generation and other power generation methods,
while maintaining a comfortable environment. It is divided into four ranks
based on the rate of energy reduction, with the highest rank,“ZEB”, requiring a reduction of 100% or more.

49

Management that is Conscious of
Cost of Capital and Stock Price50

Enhancing Our Corporate Value
Medium- to long-term growth strategies improve stakeholder value
Investment for further growth
to enhance corporate value
OptimalcapitalstructureCashgeneration
Growth andearning power/
Capitalefficiency
Shareholder returns

Investors

51

Recognition of Current Situation
PBR below 1x due to decline in capital efficiency (ROE)PBR (times)

Price Book-value Ratio

PBR ＝ PER × ROE
PBR1.0x(Forecast)

0.80

0.78

0.79

Fiscal year end
stock price（¥）
680

629

18

19

0.67 （Stock priceas of end Sept）

20

6.8%

ROE

Return On Equity
19

5.9%
3.5%

20

21

22

23 （FY）

ROE＝Net income for the fiscal year ÷ Shareholders’ equity (Average at the beginning and end of fiscal year)* BS items in FY23 forecast use figures at the end of the previous fiscal year.

0.72

811

(Forecast)

6.1%

18
0.71

9.6%

10.0%

741

691

21

22

PBR＝Fiscal year end stock price（adjusted）÷ Net assets per share(Net assets and total number of shares used are those at the end of the fiscal year.)* FY23 forecast is based on the stock price as of end Sept 2023.
BS items in FY23 forecast use figures at the end of the previous fiscal year.

810

23（FY）

PER（times） 12.60

Ref.
Average of 83 construction
companies listed on TSE
Prime Market (Sept 2023)
Average PER 15.0x
Weighted PER 12.8x

19.39

Price Earnings Ratio

8.15 7.46
18

19

12.81

12.26
20

21

（Forecast)

22

PER＝ Fiscal year end stock price（adjusted) ÷ Net income per share(Total number of shares is the average during the fiscal year excluding own shares.)* BS items in FY23 forecast use figures at the end of the previous fiscal year.

23

（FY）

52

Estimation of Cost of Capital
Cost of shareholders' equity estimated at around 8.0%, weighted average
cost of capital (WACC) at around 4.5%. Continuously aim for ROE 8.0%+
and ROIC 5.0%+ through capital efficiency-conscious management.
ROIC

ROE

Return on Invested Capital

Return On Equity（in medium-term）

9.6%

10.0%

ROE
8.0%+

（in medium-term）

6.3%

6.7%

ROIC
5.0%＋

（Forecast）

6.1%

5.9%

19

20

21

22

3.5%

Estimation by
CAPM method/
inverse of PER

3.5%
18

4.6%

※The cost ofshareholders' equity
is recognized to bearound 8.0%.

6.8%※WACC is recognized
to be around 4.5%.

23 （FY）

ROE＝Net income for the fiscal year ÷ Shareholders’ equity(Average at the beginning and end of fiscal year.)* BS items in FY23 forecast use figures at the end of the previous fiscal year.

1.9%
18

19

20

21

22

2.1%

（Forecast）

23 （FY）

ROIC = Operating income after tax ÷ Invested capital (interest-bearing debt + shareholders’ equity)* Invested capital is calculated as the average at the beginning and end of fiscal year, and theeffective tax rate is assumed to be 30.5%.

53Analysis of Current Situation

ROE enhancement requires pursuit of growth and earning power andimprovement of capital efficiency
Net incomeon salesNet income margin on sales
5.0%

5.0%

（Forecast）

3.9%

Net income
Net sales

3.7%

3.6%
2.0%

Pursuit of growthand earning power
FY18
FY22
5.0% → 2.0％

×
ROE

Return On Equity

Asset turnover

Asset turnover ratio (x)

0.83

0.80

Net sales
Total assets（Forecast）
0.74

×Financialleverage
Total assets
Shareholders’ equity

0.67

0.69

（Forecast）

Financial leverage (x)
2.40

2.43

18

19

2.36

2.39

20

21

0.66

2.57

2.57

22

23（FY）

Improvement of
capital efficiency
FY180.83 →

FY22
0.69

Optimalcapital structure
FY18
FY22
2.40x → 2.57x* Net sales and net income in FY23 forecast are based on disclosed figures. Total assets and shareholders’ equity use figures as of the end of the previous fiscal year.

54

Policy to Improve Return on Capital and Market Valuation
Aim to secure profitability in construction business, and improve capital efficiency throughsales of cross-shareholdings and use of private placement funds
Key points for improvement

Optimalcapital structure

Initiatives toenhance stakeholder
satisfaction

 Implementation of stable shareholder returns (Medium-Term Management Plan
target: DOE of 2.5% or more and Total Return Ratio of 40% or more) Timely and appropriate acquisition of own shares in a flexible manner Proactive dialogue with investors etc (60+ meetings per year) Enhancing disclosure and communication to customers, partner companies,
shareholders/investors, and employees

Improvement of
PER

Stable andcontinuous
shareholder returns

 Maintain investment grade rating based on financial discipline(Medium-Term Management Plan target: D/E ratio of 0.8x or less)Improvement of PBR

Improvement of
capital efficiency

 Growth strategy and strategic investments to enhance corporate value Improvement of capital efficiency through reallocation of real estate assets etc(use of private placement funds etc)
(Sales of assets held: Medium-Term Management Plan target: ¥67 bil / 3 years)
 Sales of cross-shareholdings (Medium-Term Management Plan target: more than
¥10 bil per year) Promotion of business portfolio management
 Business management using ROIC by segment as an internal indicator

Improvement

Improvement of ROE

Pursuing growthand earning power

Policy and indicators

55

Internal Management using ROIC Reverse Tree
KSF（Key Successful Factors）
Orders• Selection and concentration of projects• Understanding customer needs and improving thevalue provided to customers

KPI
Construction orders received

Decomposition
Net sales

Customer satisfaction

Operatingincome（Operating income ratio）

Completed construction
contracts

Pursuing growthand earning power
Improvementofcapitalefficiency

Medium- to
Long-term
Enhancement ofCorporate Value

Construction
capacity• Securing construction personnel and improving capacity• Strengthening supply chain• Production technology development• Expanding the use of BIM/CIM

Investment
anddevelopment• Securing real estate rental income• Securing real estate sales income• Evaluation of business using IRR etc

Construction
revenue• Ensure appropriate profits when receiving orders• Strengthening supply chain• VE/CD activities• Efforts to improve productivity• Promotion of front-loading

SG&A and
R&D
expenses• Reduction of redundant expenses• Technology development, CVC investment etc leading
to competitive advantage

Capitalefficiency• Optimization of payment terms• Effective use of business assets• Effective use/replacement of real estate, use of private
placement funds• Sales of cross-shareholdings

Income and expenses of
construction• Human capital investment, digital transformation
investment etc to improve corporate competitiveness• Addressing environmental, social and governanceissues (ESG etc)
• Quality and safety initiatives

CO2 reduction ratio

Brand
value

Operating income
Net sales

Completed construction
contracts per capita

ROE
ROIC
Operating income
after tax
Interest-bearing debt
+ shareholders' equity

Net sales of investment anddevelopment business
Investment and development
business profit

Gross profit

Gross profit margin at time ofestimation
Gross profit margin ratio

SG&A ratio
Technology development
investment

Investments and sales

General andadministrative
expensesFinancial capital
Working capital turnover
Fixed capital turnover

Cross-shareholdings

Labor productivity perhour
Total accident frequency
rate/Accident frequency rate

Non-financial
capitalFactors contributing tomedium- to long-termcompetitive advantage

Invested
capital(Invested capitalturnover ratio/ days)
Net sales
Invested capital

Effective tax rate56

57