Toda : Consolidated Financial Results for the Year Ended March 31, 2023

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

Consolidated Financial Results

for the Year Ended March 31, 2023

[Japanese GAAP]

May 15, 2023

Company name: TODA CORPORATION

Stock exchange listing: Tokyo

Code number: 1860

URL: https://www.toda.co.jp/

Representative: Seisuke Otani President and Representative Director

Contact: Kaname Miwa Corporate Officer General Manager,Financial&IR Div.

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: June 29, 2023

Scheduled date of commencing dividend payments: June 30, 2023

Scheduled date of filing annual securities report: June 30, 2023

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session: Yes (for analysts and institutional investors)

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 01, 2022 to March 31, 2023)

(1) Consolidated Operating Results				(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit	Profit attributable to
					owners of parent
Fiscal year ended		Million yen		%	Million yen		%		Million yen		%			Million yen	%
March 31, 2023		547,155		9.1	14,135		(42.0)		19,039		(32.3)		10,995	(40.8)
March 31, 2022		501,509		(1.1)	24,385		(12.0)		28,111		(7.4)		18,560	(6.0)
(Note) Comprehensive income:	Fiscal year ended March 31, 2023:	¥	8,987 million	[	(38.3) %]
		Fiscal year ended March 31, 2022:	¥	14,559 million	[	(69.0) %]
	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to		Operating profit to
		share		share		equity		total assets ratio		net sales ratio
Fiscal year ended			Yen		Yen				%				%			%
March 31, 2023		35.64		-				3.5				2.4			2.6
March 31, 2022		60.43		-				5.9				3.8			4.9

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2023: ¥ 149 million Fiscal year ended March 31, 2022: ¥ 191 million

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
March 31, 2023	815,556		323,261	38.9	1,023.64
March 31, 2022	761,199		319,042	41.6	1,027.12
(Reference) Equity: As of	March 31, 2023:	¥	317,254	million
As of	March 31, 2022:	¥	316,574	million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Million yen		Million yen	Million yen	Million yen
March 31, 2023		(30,845)		(26,102)	22,534	95,866
March 31, 2022		27,274		(20,433)	18,306	129,301

2. Dividends

			Annual dividends				Payout	Dividends
					Total	to net
								ratio
								dividends	assets
	1st		2nd	3rd		Year-end	Total
			(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended		Yen	Yen	Yen		Yen	Yen	Million yen	%	%
March 31, 2022		-	10.00	-		16.00	26.00	8,017	43.0	2.6
March 31, 2023		-	13.50	-		13.50	27.00	8,415	75.8	2.6
Fiscal year ending
March 31, 2024		-	14.00	-		14.00	28.00		44.3
(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 01, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	540,000		(1.3)	16,000	13.2	19,500	2.4	19,500	77.3	62.92

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes

New

2

(Company name: PT Tatamulia Nusantara Indah, TODA Energia 2 Ltda.

)

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

March 31, 2023: 322,656,796 shares

March 31, 2022: 322,656,796 shares

2) Number of treasury shares at the end of the period:

March 31, 2023:	12,730,496	shares
March 31, 2022:	14,440,349	shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:	308,484,939	shares
Fiscal Year ended March 31, 2022:	307,139,020	shares

*Notes: The number of shares of treasury stock at the end of the period includes the Company's shares held by the BIP Trust for directors' remuneration and the ESOP Trust for granting shares.

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 01, 2022 to March 31, 2023)
(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit		Ordinary profit	Net income
Fiscal year ended	Million yen		%		Million yen	%		Million yen	%	Million yen		%
March 31, 2023	465,451		3.0		9,524	(57.7)		13,589	(47.7)	6,623		(59.2)
March 31, 2022	451,770		(2.1)		22,540	(10.5)		25,995	(7.4)	16,215		(2.7)
	Basic earnings per share	Diluted earnings per share
Fiscal year ended			Yen		Yen
March 31, 2023			21.47			-
March 31, 2022			52.80			-

(2) Non-consolidated Financial Position

	Total assets				Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen		Million yen	%	Yen
March 31, 2023	744,689		291,281	39.1	939.84
March 31, 2022	712,493		293,495	41.2	952.24
(Reference) Equity: As of	March 31, 2023:	¥	291,281	million
As of	March 31, 2022:	¥	293,495	million

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 01, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Net income	Basic earnings per
		share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	440,000		(5.5)	12,500	31.2	16,000	17.7	18,200	174.8	58.72

*Notes:

These statements include Toda Corporation's forecasts based on information currently available as of the announcement date,

which are subject to a number of risks and uncertainties. Therefore, the actual results of developments may differ from those presented in these forward-looking statements due to the changes in various factors.

Consolidated Financial Results

for the FY2022

Ended March 31, 2023

1. Overview of Operating Results

(1) Overview of Operating Results for the Fiscal Year ended March 31, 2023

During the consolidated fiscal year under review, the domestic economy showed signs of recovery as socioeconomic activities normalized. However, the situation continued to require close monitoring of exchange rate fluctuations and price trends due to global monetary tightening policies and geopolitical risks.

In the construction industry, orders received were higher than in the previous fiscal year due to firm orders for both public-sector and private-sector construction, but earnings faced a difficult business environment due to soaring material prices and other factors.

In May 2022, the Group announced the "Medium-Term Management Plan 2024 Rolling Plan" to promote the evolution of value provided to customers in the core businesses of architecture, civil engineering, and strategy. In addition, the Company has identified the construction of new TODA BUILDING, overseas business, and renewable energy business such as floating offshore wind power generation as key management priorities. During the consolidated fiscal year under review, the Company continued to promote growth investments under the active involvement of top management in order to strengthen our business portfolio by making growth investments in these businesses and to achieve further medium- to long-term growth. To achieve ROE target of 8% in the medium to long term while promoting growth investments, we also worked to strengthen our investment process by applying IRR (internal rate of return), cost of capital, and other indicators to manage post-investment profitability.

Under these circumstances, the Group's consolidated results were as follows:

Consolidated net sales increased 9.1% from the previous fiscal year to ¥547.1 billion, mainly due to an increase in net sales from the construction business, domestic group companies, and overseas investment and development business, despite a decrease in net sales from the civil engineering business and domestic investment and development business.

Operating income increased in the overseas investment and development business compared to the previous consolidated fiscal year, but gross profit decreased 8.5% from the previous consolidated fiscal year to ¥57.3 billion due to the posting of allowances for construction losses in several construction projects in the Architectural Construction Business as a result of rising prices of steel frames and other materials due to changes in market conditions. Selling, general and administrative expenses (SG&A) expenses increased 12.8% from the previous fiscal year to ¥43.1 billion due to an increase in personnel expenses and amortization expenses, as well as an increase in expenses due to the easing of restrictions on activities associated with the COVID-19. As a result, operating income was ¥14.1 billion, a decrease of 42.0% from the previous fiscal year.

Ordinary income decreased 32.3% from the previous consolidated fiscal year to ¥19.0 billion, despite an increase in non-operating income due to dividend income from investment securities held and foreign exchange gains.

Net income attributable to owners of the parent increased compared to the previous fiscal year due to extraordinary gains, including gain on step acquisitions and gain on sales of investment securities. However, the Environment & Energy business incurred an impairment loss on fixed assets, and overall, net income amounted to ¥10.9 billion, down 40.8% from the previous consolidated fiscal year.

The results for each segment are as follows. Segment results are presented including intersegment sales and transfers.

The Group has changed its reportable segments from the current consolidated fiscal year, and comparisons and analysis with the previous consolidated fiscal year are based on the segment classifications after the change. For details, please refer to "1. Overview of Reportable Segments" of "3. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements".

Architectural Construction Business

Net sales were ¥343.8 billion (up 12.9% from the previous consolidated fiscal year), and the segment loss (operating loss) was ¥2.0 billion (segment income of ¥7.8 billion in the previous consolidated fiscal year).

Orders received by the Company on a non-consolidated basis decreased by 10.8% from the previous fiscal year for domestic public work projects and by 10.8% from the previous fiscal year for domestic private-sector projects. As a result, total orders received were ¥286.3 billion, down 11.3% from the previous fiscal year.

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