2024
Annual Report

NITTOC CONSTRUCTION CO., LTD.
4F, 5F and 6F, Daiwa Higashi-Nihonbashi Bldg.,
3-10-6, Higashi-Nihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL : +81-3-5645-5050 FAX : +81-3-5645-5051
Corporate Strategy Division
TEL : +81-3-5645-5080 FAX : +81-3-5645-5083
E-mail: info@nittoc.co.jp

JAKARTA Representative Office,
PT. NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER
GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia
TEL : +6221 2994 1582 / 1583
FAX : +6221 2994 1991
E-mail: info@nittoc-id.co.id

NITTOC CONSTRUCTION CO., LTD.

Connect to
the Futurewith Protection
Technology

MISSION
With efficient management andcomprehensive technical capabilities infoundation work,
we are the company that provides safe andsecure society and contributes to countries.
CONTENT
03 Consolidated Financial Statements
42 Corporate Overview and Major Construction Methods

Editorial Policy
Since the fiscal year ended March 31, 2014, NITTOC CONSTRUCTION CO., LTD. has published an
Annual Report in order to share information on its management policy, business strategy, and value
creation over the medium- to long-term with its shareholders, investors, and other stakeholders.
• Period Covered by This Report
This report covers the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022).
However, times before or after this period are mentioned as necessary.
• Scope of This Report
This report covers NITTOC CONSTRUCTION CO., LTD. and its consolidated subsidiaries (as ofMarch 31, 2022).
• Notes on Future Outlook
Statements in this report that are not historical facts are future forecasts based on the Company’s
future outlook and plans. As the future forecasts include elements of risk and uncertainty, actual
results and performances may differ from the forecasts provided in this report.

01

ANNUAL REPORT 2024

ANNUAL REPORT 202402Consolidated Financial Statements

Consolidated Financial Statements, etc.
1. Consolidated Financial Statements
1) Consolidated Balance Sheets
March 31, 2023 and 2024

Thousands of
U.S.Dollars(*)

Millions of yen
2023

2024

2024

2023

2024

2024

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits

19,457

19,644

129,743

Notes payable, accounts payable for construction contracts and other

11,539*6 12,133

80,133

Notes receivable, accounts receivable from completed construction contracts and other

18,395*6 17,992

118,831

Income taxes payable

1,149

658

4,348

Electronically recorded monetary claims — operating

3,462*6 2,979

19,678Advances received on construction contracts in progress

423

980

6,474

Merchandise and finished goods

31

29

194

Provision for warranties for completed construction

170

172

1,141

Real estate for sale

0

0

0

Provision for loss on construction contracts

*4 28

248

1,641

*4 284235

1,557

Provision for bonuses

1,138

845

5,581

Raw materials and supplies

355

698

4,616

39

35

234

Other

2,070

1,349

8,911

Other

446

*6 641

4,238

Total current liabilities

16,55916,422

108,466

Allowance for doubtful accounts

(2)

–

–

42,431

42,222

278,862

4,023

3,866

25,535

98

98

648

4,122

3,964

26,183

20,681

20,387

134,649

Costs on construction contracts in progress

Total current assets
Non-current assets

Provision for bonuses for directors (and other officers)

Non-current liabilities
Retirement benefit liability
Other

Property, plant and equipment

Total non-current liabilities

Buildings and structures, net*1 1,674*1 1,632

10,781

Machinery, vehicles, tools, furniture and fixtures, net*1 1,542*1 1,731

11,433

Land

2,578

2,578

17,027

Shareholders’ equity

Construction in progress

633

654

4,321

Share capital

6,052

6,064

40,053

Other, net

*3 2

*3 2

13

Capital surplus

1,753

1,765

11,659Total property, plant and equipment

6,430

6,598

43,577Retained earnings

23,91825,024

165,274

578

557

3,683

(2)

(3)

(21)

31,72232,850216,966

Investment securities

1,040

3,119

20,605

Valuation difference on available-for-sale securities

138

709

4,688

Deferred tax assets

1,978

1,555

10,270Foreign currency translation adjustment

17

56

373

Other

370

393

2,600

Remeasurements of defined benefit plans

(29)

241

1,591

Allowance for doubtful accounts

(21)

(21)

(144)

Total accumulated other comprehensive income

126

1,007

6,653

Total investments and other assets

3,368

5,046

33,332

Non-controlling interests

278

179

1,186

10,377

12,20280,593

Total net assets

32,12734,037

224,806

52,80954,425359,456

52,80954,425359,456

Intangible assets
Investments and other assets

Total non-current assets
Total assets*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

03

Thousands of
U.S.Dollars(*)

Millions of yen

ANNUAL REPORT 2024

Total liabilities
Net assets

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

Total liabilities and net assets*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 202404Consolidated Financial Statements

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal Years Ended March 31, 2023 and 2024

Consolidated Statements of Comprehensive Income
Fiscal Years Ended March 31, 2023 and 2024

Thousands of
U.S.Dollars(*)

Millions of yen
2023

2024

2024

2023

72,69771,752473,897

221

127

845

72,91871,880474,742

Net sales
Net sales of completed construction contracts
Sales in other businesses
Total net sales

ProfitCost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses
Total cost of sales*1 59,117*1 59,102

390,348

115

69

459

59,23359,172

390,808

Gross profit on completed construction contracts
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses
Operating profit

13,57912,65083,548

105

58

385

13,685

12,70883,933*2,*3 8,233*2,*3 8,351

55,159

5,451

4,356

28,774

2024

2024

3,608

2,952

19,501

Valuation difference on available-for-sale securities

26

571

3,773

Foreign currency translation adjustment

22

59

391

Remeasurements of defined benefit plans, net of tax

29

264

1,748

*1 78

*1 895

5,913

3,686

3,848

25,415

3,597

3,946

26,066

89

(98)

(650)

Other comprehensive income

Total other comprehensive income
Comprehensive income

Gross profit

Thousands of
U.S.Dollars(*)

Millions of yen

Comprehensive income attributable to
Owners of parent
Non-controlling interests*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

Non-operating income
Interest income

6

10

69

Dividend income

12

66

438

Patent income

14

12

80

Foreign exchange gains

40

17

112

Foreign exchange gains

–

39

263

Other

23

11

72

Total non-operating income

97

157

1,037

Non-operating expenses
Interest expenses

7

13

87

Guarantee commission

17

42

277

Commission for syndicated loans

55

11

72
284

Settlement payments

–

43

Other

6

6

45

Total non-operating expenses

86

116

767

5,462

4,397

29,043

–

*4 8

57

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities

–

99

654

Total extraordinary income

–

107

711

Loss on Sale and retirement of non-current assets

*5 22

*5 2

14

Impairment losses

*6 4

–

–

27

2

14

Extraordinary losses

Total extraordinary losses
Profit before income taxes

5,435

4,503

29,741

Income taxes - current

1,827

1,500

9,910

Income taxes - deferred

(0)

49

328

Total income taxes

1,826

1,550

10,239Profit

3,608

2,952

19,501

81

(113)

(749)

3,526

3,066

20,250

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

05

ANNUAL REPORT 2024

ANNUAL REPORT 202406

Consolidated Financial Statements

3. Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Millions of yen)

(Millions of yen)

Shareholders’ equity

Balance at beginning of period

Shareholders’ equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

1,753

22,560(0)30,365

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

1,753

23,918(2)

31,72212

12

Changes during period

Changes during period

Dividends of surplus(2,168)(2,168)

Profit attributable to owners of parent

3,526

3,526

Purchase of treasury shares(1)

Issuance of new shares

24

Dividends of surplus(1,960)(1,960)

Profit attributable to owners of parent

3,066

3,066

(1)
Purchase of treasury shares

Net changes in items other thanshareholders’ equity–

Total changes during period

–

–

1,357

(1)

1,356

Balance at end of period

6,052

1,753

23,918(2)

31,722(0)(0)

Net changes in items other thanshareholders’ equity–

Total changes during period

12

12

1,105

(0)

1,128

Balance at end of period

6,064

1,765

25,024(3)

32,850(Millions of yen)

Accumulated other comprehensive income
Valuation difference
on available-forsale securities
Balance at beginning of period

112

Foreign currencytranslation
adjustment
3

Remeasurementsof defined
benefit plans(58)

Accumulated other comprehensive income
Total accumulated
othercomprehensive
income56

Non-controllinginterests

188

Valuation difference
on available-forsale securities

Total net assets

30,610

Balance at beginning of period

138

Foreign currencytranslation
adjustment
17

Remeasurementsof defined
benefit plans(29)

Total accumulated
othercomprehensive
income126

Non-controllinginterests

278

Dividends of surplus(2,168)

Profit attributable to owners of parent

3,526

Purchase of treasury shares

Issuance of new shares

24

Dividends of surplus(1,960)

Profit attributable to owners of parent

3,066

(1)
Purchase of treasury shares

07

26

14

29

70

89

159

Total changes during period

26

14

29

70

89

1,516

Balance at end of period

138

17

(29)

126

278

32,127

ANNUAL REPORT 2024

32,127

Changes during period

Changes during period

Net changes in items other thanshareholders' equity

Total net assets

Net changes in items other thanshareholders' equity

(0)
571

38

270

880

(98)

781

Total changes during period

571

38

270

880

(98)

1,910

Balance at end of period

709

56

241

1,007

179

34,037

ANNUAL REPORT 202408Consolidated Financial Statements

4. Consolidated Statements of Cash Flows
Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)

Fiscal Years Ended March 31, 2023 and 2024
(Thousands of U.S.Dollars*)Share capital
Balance at beginning of period

Capital surplus

39,974Retained earnings

11,579Total shareholders’equityTreasury shares

157,973(15)

209,511

Changes during period
Issuance of
new shares

79

79

159

Dividends of surplus(12,949)(12,949)

Profit attributable to owners of parent

20,25020,250Purchase of treasury shares

(6)

(6)

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

79

79

40,053

7,301

11,659(6)

165,274

7,454

(21)

216,966(Thousands of U.S.Dollars*)

Accumulated other comprehensive income
Valuation difference
on available-forsale securities

Foreign currencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

2023

914

118

(195)

838

1,837

212,187

Changes during period
Issuance of
new shares

159

Dividends of surplus(12,949)

Profit attributable to owners of parent

20,250Purchase of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

(6)
3,773
3,773
4,688

254
254
373

1,787
1,787
1,591

5,815
5,815
6,653

(650)
(650)
1,186

5164
12,619224,806

ANNUAL REPORT 2024

2024

Profit before income taxes

5,435

4,503

29,741

Depreciation

583

781

5,158

Increase (decrease) in allowance for doubtful accounts

(11)

(2)

(13)

Increase (decrease) in provision for warranties for completed construction

144

2

18

Increase (decrease) in provision for loss on construction contracts

(140)

220

1,454

Increase (decrease) in provision for bonuses

(11)

(293)

(1,935)

Increase (decrease) in provision for bonuses for directors (and other officers)

6

(4)

(28)

Increase (decrease) in retirement benefit liability

(143)

231

1,528

Loss (gain) on sale of property, plant and equipment

–

(8)

(57)

Loss (gain) on sale of businesses

–

(99)

(654)

Loss on retirement of non-current assets

22

2

14

Interest and dividend income

(19)

(76)

(507)

Interest expenses

7

13

87

Foreign exchange losses (gains)

(11)

(17)

(118)

Impairment losses

4

–

–

Decrease (increase) in trade receivables(1,314)

869

5,739

Decrease (increase) in costs on construction contracts in progress

17

48

321

Decrease (increase) in other assets

156

(417)

(2,754)

Increase (decrease) in trade payables

(379)

661

4,368

Increase (decrease) in advances received on construction contracts in progress

(172)

551

3,639

Increase (decrease) in accrued consumption taxes

(45)

118

785

Increase (decrease) in other liabilities

(48)

(579)

(3,825)

4,079

6,505

42,964

Interest and dividends received

19

76

507

Interest paid

(7)

(13)

(87)

Income taxes paid

(1,432)(2,147)(14,180)

Net cash provided by (used in) operating activities

2,659

4,421

29,204Purchase of investment securities(585)(1,256)(8,296)

Purchase of property, plant and equipment(1,130)(976)(6,448)Cash flows from investing activities

Proceeds from sale of property, plant and equipment

–

0

1

Purchase of intangible assets

(62)

(107)

(712)

Payments for retirement of non-current assets

(15)

–

–

Payments for asset retirement obligations

–

(1)

(7)

Payments of guarantee deposits

(6)

(44)

(292)

Proceeds from refund of guarantee deposits

12

11

74

Proceeds from sale of businesses

–

99

654

Other payments

(0)

(11)

(79)

Other proceeds

0

–

–

(1,788)(2,287)(15,106)

Net cash provided by (used in) investing activities

09

2024

Cash flows from operating activities

Subtotal
Balance at beginning of period

Thousands of
U.S.Dollars(*)

Millions of yen

Shareholders’ equity

ANNUAL REPORT 202410

Consolidated Financial Statements

Thousands of
U.S.Dollars(*)

Millions of yen
2023

2024

2024

(Basis of Presenting Consolidated Financial Statements)

Cash flows from financing activities
Repayments of lease liabilities

(5)

(5)

(39)

Purchase of treasury shares

(1)

(0)

(6)

Dividends paid

(2,165)(1,958)(12,935)

Net cash provided by (used in) financing activities(2,171)(1,965)(12,981)

34

18

120

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(1,266)

187

1,236

Cash and cash equivalents at beginning of period

20,723

19,457

128,506*1 19,457*1 19,644

129,743

Cash and cash equivalents at end of period*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

Notes
The accompanying consolidated financial statements have been prepared from the accounts maintained by NITTOC CONSTRUCTION CO., LTD.
(the “Company”) and its consolidated subsidiaries (collectively, the “Group”) in accordance with the provisions set forth in the Financial Instruments
and Exchange Law and its related accounting regulations, and in conformity with accounting principles and practices generally accepted in Japan,
which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company is incorporated and mainly
operates. The translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan and has
been made at the rate of ¥151.41 to US$1.00, the approximate rate of exchange on March 31, 2024. Such translation should not be construed as arepresentation that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

(Significant Items on Basis for Preparation of Consolidated Financial Statements)
1. Scope of Consolidation
Number of consolidated subsidiaries: 6
Midori Industries Co., Ltd.
Shimane Earth Engineering Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Ehime Earth Engineering Co., Ltd.
Fukui Earth Engineering Co., Ltd.
PT. NITTOC CONSTRUCTION INDONESIA

2. Application of the Equity Method
Not applicable.

3. Fiscal Years, etc. of Consolidated Subsidiaries
The year-end date of the fiscal year of the consolidated subsidiaries is March 31, which is the same as the consolidated balance sheet date.

4. Accounting Policies(1) Valuation standard and valuation method for significant assets
1) Securities• Available-for-sale securities
Securities other than stocks, etc. without market quotations:
Valued at fair market value as of the consolidated fiscal year-end date (All changes in valuation difference are included directly in net assets.
Cost of securities sold is determined by the moving-average method).
Stocks, etc. without market quotations:
Valued at cost based on the moving-average method.
2) Inventories• MerchandiseStated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated by writing
down the book value based on the decline in profitability.)• Real estate for saleStated at cost using the specific identification method (The figures shown in the consolidated balance sheets have been calculated bywriting down the book value based on the decline in profitability.)• Costs on construction contracts in progressStated at cost using the specific identification method• Raw materials and supplies
Stated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated by writing
down the book value based on the decline in profitability.)(2) Depreciation methods of major depreciable assets
1) Property, plant and equipment (excluding leased assets): The declining-balance method is applied.
However, the straight-line method is adopted for buildings acquired on or after April 1, 1998, as well as facilities attached to buildings,
structures and machinery equipment acquired on or after April 1, 2016. The major useful lives are as follows.
Buildings and structures: 5-60 years
Machinery, vehicles, tools, furniture and fixtures: 2-17 years
2) Intangible assets (excluding leased assets): The straight-line method is applied.
Computer software for internal use is amortized by the straight-line method over the estimated internal useful life (five years).
3) Leased assets
The straight-line method, in which the lease period is utilized as the useful life assuming the residual value is zero, is applied for leased assets offinance lease transactions that do not transfer ownership.

11

ANNUAL REPORT 2024

ANNUAL REPORT 202412

Consolidated Financial Statements(3) Recognition standards for significant reserves
1) Allowance for doubtful accounts
The allowance for doubtful accounts is recorded at an amount of estimated uncollectible receivables based on past bad debt experience forgeneral receivables, and by individually considering the collectability for certain doubtful receivables including loans with potential default toprepare for possible loan losses including trade receivables and loans receivable.
2) Provision for warranties for completed construction
The provision for warranties for completed construction is recorded at an amount based on the estimated compensation amount regarding
the completed construction contracts for the consolidated fiscal year under review as well as the estimated compensation amount for certain
construction contracts to prepare for expenses for warranty against defects relative to completed construction works.
3) Provision for loss on construction contracts
The provision for loss on construction contracts is recorded at an estimated loss amount regarding construction works on hand at the end of
the consolidated fiscal year under review for which loss is expected, and for which the amount can be reasonably estimated, to prepare forpossible losses from construction contracts that the Group has received orders thereof.
4) Provision for bonuses
The provision for bonuses is recorded based on the estimated amount of bonuses to be paid to provide for the payment of bonuses to
employees.
5) Provision for bonuses for directors (and other officers)
The provision for bonuses for directors (and other officers) is recorded based on the estimated amount of bonuses to be paid to provide forthe payment of bonuses to the directors (and other officers).
(4) Accounting procedure for retirement benefits
1) Method of allocating the projected retirement benefits to periods
In calculating the projected benefit obligation, the benefit formula basis is used to allocate the projected retirement benefits to periods up to
the end of the consolidated fiscal year under review.
2) Amortization method for actuarial gains/losses and prior service cost
Actuarial gains or losses are amortized for the pro-rata amount computed by the straight-line method over a certain period (10 years) within
the average remaining service period of employees at the time of recognition, commencing from the consolidated fiscal year following therecognition.
The prior service cost is amortized by the straight-line method over a certain period (10 years) within the average remaining service period of
employees at the time of recognition.
3) Adoption of the simplified method for small and medium-sized entities
For the calculation of retirement benefit liability and retirement benefit expenses, the domestic consolidated subsidiaries of the Company
have adopted the simplified method, according to which the amount of payables for voluntary retirement of all employees at the end of theperiod is treated as projected benefit obligation.
(5) Translation of significant assets and liabilities denominated in foreign currencies into Japanese yen
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot exchange rates on the
consolidated fiscal year-end date, and differences arising from such translation are charged to income.
The asset and liability accounts of the overseas subsidiaries are translated into Japanese yen at the spot exchange rates as of the consolidated
fiscal year-end date. The revenue and expense accounts of the overseas subsidiaries are translated into Japanese yen based on the averageexchange rate during the consolidated fiscal year under review, and differences arising from such translation are included in “Foreign currencytranslation adjustment” and “Non-controlling interests” as separate components of “Net assets.”(6) Recognition standards for significant revenues and expenses
In the construction business, the principal performance obligation of the Company and its consolidated subsidiaries is to perform and deliver
construction work related to construction contracts with customers. For construction contracts, the Company and its consolidated subsidiaries
deem that performance obligations are satisfied as the construction progresses, and adopt the method of recognizing revenue over a certain
period of time depending on the satisfaction of performance obligations, as the control is transferred over a certain period of time.
For measuring the progress of completion toward satisfaction of performance obligations, it is calculated based on the proportion of the actual
cost incurred against the estimated total cost of construction work at the end of each consolidated fiscal year (input method).
If a reasonable estimate of the progress of completion toward satisfaction of performance obligations cannot be made but the expenses
incurred are expected to be recovered when satisfying the performance obligations, the cost recovery method is applied.
For construction projects whose terms are very short, alternative treatments are applied, and revenue is not recognized over a certain period oftime but recognized when performance obligations are fully satisfied.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows comprise cash on hand, bank deposits available for withdrawal on
demand and readily convertible short-term investments with maturities of three months or less, which are exposed to minor risk of fluctuationin value.

(Significant Accounting Estimates)
Estimates of total construction revenue and total cost of construction work for a construction contract to be satisfied over a certain period of time
1. Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
As of March 31
Net sales from construction contracts to besatisfied over a certain period of time

Millions of yen

Thousands of U.S. Dollars

2023

2024

2024

65,904

65,115430,058

2. Calculation method of the amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
For construction contracts, except for construction contracts whose terms are very short, revenues are recognized over a certain period of time
according to the satisfaction of performance obligations. For measuring the progress of completion toward satisfaction of performance obligations,
it is calculated based on the proportion of the actual cost incurred against the estimated total cost of construction work (input method). Net sales ofcompleted construction contract are calculated based on such progress by multiplying total construction revenue.
Estimates of total construction revenue and total cost of construction work for a construction contract are based on the statement of working
budget prepared for each construction.
3. Major assumptions used for the calculation of amounts recorded in the consolidated financial statements for the consolidated fiscal year underreview
Major assumptions used for estimates of total construction revenue and total cost of construction work are possibilities of obtaining additional
orders, construction material prices, quantities, and outsourcing expenses for proceeding with the construction project. For each assumption,
estimates involve certain assumptions and determination by the construction site supervisors with construction expertise as well as experience in
executing construction works.
4. The impact on the consolidated financial statements for the following consolidated fiscal year
Since construction works generally tend to span long periods of time, their major assumptions may be affected by situations such as change of
construction conditions, design changes or reworks during the works, extension of the work period due to adverse weather, soaring material costs
and outsourcing expenses, and involve uncertainties of estimates. Therefore, if such events necessitate the revision of estimates, they may have
impact on the consolidated financial statements for the following consolidated fiscal year.
In the Group, construction work managers identify changes in situation after commencement of the construction on an appropriate and timely basis
through interviews as well as inspections of construction-related documents including the statement of working budget, which are reflected in thecalculation of revenues related to performance obligations that are satisfied over a certain period of time. Constructions believed to have potentiallysignificant impact on the business performance are under intensive management involving executives both at branches and headquarters forprecautionary purposes. Through these management initiatives, the Group makes an effort to reduce events with potential significant impact on the
consolidated financial statements for the following consolidated fiscal year.
(Accounting Standards Issued but Not Yet Applied)• “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)• “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022)• “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022)(1) Outline
The ASBJ Statement No. 28 “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc. (the “ASBJ No. 28, etc.”) were issued in
February 2018, and the transfer of practical guidance for tax effect accounting from the Japanese Institute of Certified Public Accountants to
the ASBJ was completed. In the course of consideration on the transfer, the following two points were decided to be further discussed after theissuance of the ASBJ No. 28, etc., and considerations were conducted and the results released.
• Classification of tax expenses (taxation on other comprehensive income)• Tax effect related to sales of shares in subsidiaries, etc. (shares in subsidiaries or affiliated companies) in the case in which group tax sharing system
is applied(2) Planned date of application
The Company will apply the ASBJ No. 28, etc. from the beginning of the fiscal year ending March 31, 2025.
(3) Impact of application of the accounting standards, etc.
Assessment of the impact of application of the “Accounting Standard for Current Income Taxes,” etc. on the consolidated financial statements iscurrently underway.

(8) Other significant items for the preparation of the consolidated financial statements(Application of the group tax sharing system)
The Company and its domestic consolidated subsidiaries have applied the group tax sharing system.

13

ANNUAL REPORT 2024

ANNUAL REPORT 202414

Consolidated Financial Statements(Consolidated Statements of Income)*1 Provision for loss on construction contracts included in the cost of sales of completed construction contracts(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment
As of March 31

Fiscal year ended March 31
2023

2024

2024

2023

2024

2024

¥6,788 million¥7,167 million$47,337 thousand¥28 million¥243 million$1,610 thousand*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:

2 Contingent liabilities
The Company guarantees the contractual obligations of the subsidiaries’ construction contracts.

Millions of yen

Fiscal year ended March 31

As of March 31
2023
Contractual obligations(PT. NITTOC CONSTRUCTION
INDONESIA)¥110 million(IDR 12,421
million)

2024

2024

¥375 million(IDR 39,129 million)$2,480 thousand

2023

2024

2024

39

35

234

Employees’ salaries and allowances

3,301

3,347

22,111

Provision for bonuses

457

340

2,247

Retirement benefit expenses

245

253

1,671

Provision of allowance for doubtful accounts

(11)

(2)

(13)

Provision for bonuses for directors (and other officers)*3 Tax purpose reduction entry
The amount of tax purpose reduction entry, which is subtracted from the acquisition prices of property, plant and equipment due to acceptance ofa state subsidy, and the breakdown thereof were as follows:

Thousands of U.S.Dollars*3 Research and development expenses included in general and administrative expenses

As of March 31
2023
Other

¥2 million

Fiscal year ended March 31

2024

2024

¥2 million$13 thousand

2023

2024

2024

¥387 million¥527 million$3,482 thousand*4 Presentation of inventories and provision for loss on construction contracts*4 The breakdown of gain on sale of non-current assets was as follows:
Fiscal year ended March 31, 2023 (As of March 31, 2023)
Both the costs on construction contracts in progress and the provision for loss on construction contracts, which are related to construction
contracts that are expected to generate losses, are presented without offsetting each other.
Of the costs on construction contracts in progress relating to construction contracts that are expected to generate losses, the amountcorresponding to the provision for loss on construction contracts is ¥1 million.($10thousand)Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2023

2024

2024

Machinery, vehicles, tools, furniture and fixtures

–

8

57

Total

–

8

57

Fiscal year ended March 31, 2024 (As of March 31, 2024)
Not applicable.
*5 The breakdown of loss on retirement of non-current assets was as follows:
5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fund procurement of working capital.
The unused balance of the borrowings relative to the commitment line agreements as of March 31 was as follows:
As of March 31

Millions of yen

Thousands of U.S.Dollars

2023

2024

2024

Total amount of the commitment line

2,200

5,000

33,022

Maximum overdraft amount

445

480

3,170

Balance of executed loans

–

–

–

2,645

5,480

36,193

Unused balance*6 Notes maturing at year-end are settled on the date of clearing or on the date of settlement. Since the last day of the consolidated fiscal year underreview fell on a bank holiday, the following matured notes are included in the balance as at the end of the consolidated fiscal year under review.
As of March 31

15

Millions of yen

Millions of yen

Thousands of U.S.Dollars

2023

2024

2024

22

0

0

Machinery, vehicles, tools,furniture and fixtures

0

2

14

Total

22

2

14

Buildings and structures*6 Impairment losses
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
This information is omitted due to its immateriality.
Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable.

Thousands of U.S.Dollars

2023

2024

2024

Notes receivable
Electronically recorded monetaryclaims - operating
Accounts receivable

–

45

300

–

37

244

–

3

25

Notes payable

–

598

3,955

ANNUAL REPORT 2024

Fiscal year ended March 31

ANNUAL REPORT 202416

Consolidated Financial Statements(Consolidated Statements of Comprehensive Income)*1 Amounts of reclassification and the tax-effect equivalent in relation to “Other comprehensive income”

2. Dividends(1) Amount of dividends paid

Millions of yen

Fiscal year ended March 31

2023

Thousands of U.S.Dollars
2024

2024

Valuation difference on available-for-sale securities
Accrued in the fiscal year

37

823

5,438

Amount of reclassification

–

–

–

Before tax-effect adjustment

37

823

5,438

Amount of tax-effect equivalent

(11)

(252)

(1,665)

Valuation difference on available-for-sale securities

26

571

3,773

Foreign currency translation adjustment

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 24, 2022

Commonshares¥1,334 million

Retainedearnings¥32.00March 31,2022

June 27,
2022

Board of Directors meeting on
November 4, 2022

Commonshares¥834 million

Retainedearnings¥20.00

September 30,
2022

November 30,
2022(2) Dividends for which the record date is during the consolidated fiscal year under review but for which the effective date is after the end of theconsolidated fiscal year under review
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 23, 2023

Commonshares¥1,042 million

Retainedearnings¥25.00March 31,2023

June 26,
2023

Accrued in the fiscal year

22

59

391

Foreign currency translation adjustment

22

59

391

Accrued in the fiscal year

0

407

2,693

Amount of reclassification

42

(2)

(14)

Before tax-effect adjustment

42

405

2,678

Fiscal year ended March 31,2024

Amount of tax-effect equivalent

(13)

(140)

(929)

Issued shares

Remeasurements of defined benefit plans, net of tax

29

264

1,748

78

895

5,913

Remeasurements of defined benefit plans

Total other comprehensive income

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
1. Class and total number of issued shares and of treasury shares
Number of sharesat the beginning

Increase in numberof shares

Decrease in numberof shares

Number of sharesat the end

Common shares

41,708,367

23,584–

41,731,951

Total

41,708,367

23,584–

41,731,951

Common shares

2,817

915

–

3,732

Total

2,817

915

–

3,732

Treasury shares(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Class and total number of issued shares and of treasury sharesFiscal year ended March 31,
2023

Number of sharesat the beginning

Increase in
number of shares

Decrease in
number of shares

Number of sharesat the end

Common shares

41,708,367––

41,708,367

Total

41,708,367––

41,708,367

Issued shares

Treasury shares
Common shares

1,321

1,496

–

2,817

Total

1,321

1,496

–

2,817

Notes: The increase in number of issued shares represents the increase from the issuance of new shares as restricted share compensation.
The increase in number of treasury shares represents the increase from the purchase of less-than-oneunit shares.
2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 23, 2023

Commonshares¥1,042 million($6,886 thousand)

Retainedearnings¥25.00March 31,2023

June 26,
2023

Board of Directors meeting on
November 9, 2023

Commonshares¥918 million($6,063 thousand)

Retainedearnings¥22.00

September 30,
2023

November 30,
2023

Note:The increase in number of treasury shares represents the increase from the purchase of less-than-oneunit shares.
(2) Dividends for which the record date is during the consolidated fiscal year under review but for which the effective date is after the end of theconsolidated fiscal year under review

17

ANNUAL REPORT 2024

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 21, 2024

Commonshares¥1,043 million($6,889 thousand)

Retainedearnings¥25.00March 31,2024

June 24,2024

ANNUAL REPORT 202418

Consolidated Financial Statements(Consolidated Statements of Cash Flows)*1 A reconciliation of the balance of cash and cash equivalents in the consolidated statements of cash flows to cash and deposits included in the
consolidated balance sheets
Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2023

2024

2024

Cash and deposits

19,457

19,644

129,743

Cash and cash equivalents

19,457

19,644

129,743(Lease Transactions)(Lessee)Finance lease transactions that do not transfer ownershipThis information is omitted due to its immateriality.
(Financial Instruments)
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings from banks. The
Group’s fund management is limited to short-term deposits and highly safe financial assets pursuant to the Fund Management Rules. The Grouputilizes derivatives within the limit of actual demand and not for speculative purposes. In the consolidated fiscal year under review, no derivativetransactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronically recorded monetary claims operating, which are trade receivables, are exposed to the credit risk of the respective counterparties. Investment securities are mainly stocks oflisted companies, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally entail the concentrated due date forpayments and are exposed to liquidity risk. Borrowings for working capital are exposed to market interest rate fluctuation risk and liquidity risk.
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims - operating regarding main counterparties at the relevant departments/sections in accordance with the Credit
Exposure Management Rules and the Credit Management Manual. In addition to the management of credit balances by counterparty, theGroup works to early grasp and reduce recovery concerns due to the aggravation of financial positions at the counterparties.

2. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March 31, 2023, were as follows. Shares,
etc. without market value are not included in the table below (Refer to Note). Notes on cash are omitted. Notes for deposits, notes receivable,accounts receivable from completed construction contracts and other and contract assets, electronically recorded monetary claims - operating,and notes payable, accounts payable for construction contracts and other are also omitted, as they are settled within a short term and theirmarket values approximate the book values.
(Millions of yen)

Carrying value
in the consolidatedbalance sheets
Investment securities
Available-for-sale securities
Total assets

3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports from the respective departments/
sections. The department also manages liquidity risk with measures such as the maintenance of liquidity on hand and entering into
commitment line agreements with our banks.

19

ANNUAL REPORT 2024

Difference

894

894

–

894

894

–

Note: Shares, etc. without market value
Classification

Carrying value in the consolidated balance sheets

Unlisted stocks¥145 million

The above securities are not included in “Available-for-sale securities.”

3. Breakdown, etc. of fair values of financial instruments
The Company has classified fair values of financial instruments into the following three levels according to the observability and materiality of
inputs used for fair value measurement.
Level 1 Fair Values: Fair values measured by (unadjusted) quoted prices of the identical assets or liabilities in active markets
Level 2 Fair Values: Fair values measured by directly or indirectly observable inputs other than those classified in Level 1
Level 3 Fair Values: Fair values measured by material but unobservable inputs
In cases where multiple inputs with a material impact on fair value measurement are used, fair value is classified into the level to which the input
with the lowest priority in fair value measurement belongs.
(1) Financial assets and financial liabilities carried at fair value in the consolidated balance sheet(Millions of yen)Classification
2) Management of market risk (market price fluctuation risk)
For investment securities, the Group basically manages the risk in accordance with the Fund Management Rules, and specifically sets
investment limits and maximum holding limits, mainly for listed stocks and other securities. For invested financial instruments, the Group hasclarified the management system and management standards, and regularly analyzes the market price fluctuation risk, the current market
value of shares, and the financial positions of the issuers, and works to reduce risks.

Market value

Fair Value
Level 1

Level 2

Level 3

Total

894

–

–

894

894

–

–

894

Investment securities Available-for-sale securities
StocksTotal assets(2) Financial assets and financial liabilities not carried at fair value in the consolidated balance sheet Not applicable.
Note: Description of valuation techniques and inputs used in fair value measurement Investment securities
Listed stocks are valued using quoted market prices. As listed stocks are traded in active markets, their fair value is classified as Level 1.

ANNUAL REPORT 2024

20

Consolidated Financial Statements

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings from banks.
The Group’s fund management is limited to short-term deposits and highly safe financial assets pursuant to the Fund Management Rules. The
Group utilizes derivatives within the limit of actual demand and not for speculative purposes. In the consolidated fiscal year under review, noderivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronically recorded monetary claims operating, which are trade receivables, are exposed to the credit risk of the respective counterparties. Investment securities are mainly stocks oflisted companies, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally entail the concentrated due date forpayments and are exposed to liquidity risk. Borrowings for working capital are exposed to market interest rate fluctuation risk and liquidity risk.
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims - operating regarding main counterparties at the relevant departments/sections in accordance with the Credit
Exposure Management Rules and the Credit Management Manual. In addition to the management of credit balances by counterparty, theGroup works to early grasp and reduce recovery concerns due to the aggravation of financial positions at the counterparties.
2) Management of market risk (market price fluctuation risk)
For investment securities, the Group basically manages the risk in accordance with the Fund Management Rules, and specifically sets
investment limits and maximum holding limits, mainly for listed stocks and other securities. For invested financial instruments, the Group hasclarified the management system and management standards, and regularly analyzes the market price fluctuation risk, the current market
value of shares, and the financial positions of the issuers, and works to reduce risks.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports from the respective departments/
sections. The department also manages liquidity risk with measures such as the maintenance of liquidity on hand and entering into
commitment line agreements with our banks.
2. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March 31, 2024, were as follows. Shares,
etc. without market value are not included in the table below (Refer to Note). Notes on cash are omitted. Notes for deposits, notes receivable,accounts receivable from completed construction contracts and other and contract assets, electronically recorded monetary claims - operating,and notes payable, accounts payable for construction contracts and other are also omitted, as they are settled within a short term and theirmarket values approximate the book values.

Note: Shares, etc. without market value
Classification

Carrying value in the consolidated balance sheets

Unlisted stocks¥145 million$962 thousand

The above securities are not included in “Available-for-sale securities.”
3. Breakdown, etc. of fair values of financial instruments
The Company has classified fair values of financial instruments into the following three levels according to the observability and materiality of
inputs used for fair value measurement.
Level 1 Fair Values: Fair values measured by (unadjusted) quoted prices of the identical assets or liabilities in active markets
Level 2 Fair Values: Fair values measured by directly or indirectly observable inputs other than those classified in Level 1
Level 3 Fair Values: Fair values measured by material but unobservable inputs
In cases where multiple inputs with a material impact on fair value measurement are used, fair value is classified into the level to which the input
with the lowest priority in fair value measurement belongs.
(1) Financial assets and financial liabilities carried at fair value in the consolidated balance sheet(Millions of yen)Classification

Fair Value
Level 1

Level 2

Level 3

Total

Investment securities Available-for-sale securities
StocksTotal assets

2,974

–

–

2,974

2,974

–

–

2,974

(2) Financial assets and financial liabilities not carried at fair value in the consolidated balance sheet Not applicable.
Note: Description of valuation techniques and inputs used in fair value measurement Investment securities
Listed stocks are valued using quoted market prices. As listed stocks are traded in active markets, their fair value is classified as Level 1.

(Millions of yen)

Carrying value
in the consolidatedbalance sheets
Investment securities
Available-for-sale securities
Total assets

Market value

Difference

2,974

2,974

–

2,974

2,974

–
(Thousands of U.S.Dollars)

Carrying value
in the consolidatedbalance sheets
Investment securities
Available-for-sale securities
Total assets

21

ANNUAL REPORT 2024

Market value

Difference

19,643

19,643–

19,643

19,643–

ANNUAL REPORT 202422

Consolidated Financial Statements

Fiscal year ended March 31, 2024 (As of March 31, 2024)
1. Available-for-sale securities (As of March 31, 2024)(Securities)
Fiscal year ended March 31, 2023 (As of March 31, 2023)
1. Available-for-sale securities (As of March 31, 2023)(Millions of yen)

Carrying value inthe consolidatedbalance sheets(Millions of yen)

Carrying value inthe consolidatedbalance sheets

Acquisition cost

Difference

SharesShares

775

565

209

Other

–

–

–

775

565

Difference

2,958

1,931

1,026

2,958

1,931

1,026

16

19

(3)

(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost

Subtotal

Acquisition cost

209(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost

Other
Subtotal(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
SharesOther

Shares

119

128

(9)

Other

–

–

–

Subtotal

16

19

(3)

Subtotal

119

128

(9)

Total

2,974

1,951

1,023

Total

894

694

199
Note: Shares, etc. without market value

Note: Shares, etc. without market value
Classification

Carrying value in the consolidated balance sheets(Millions of yen)

Available-for-sale securities (unlisted stocks)

145

Classification
Available-for-sale securities (unlisted stocks)

Carrying value in the consolidated balance sheets
Millions of yen

Thousands of U.S. Dollers

145

962
(Thousands of U.S.Dollars)

2. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2022 to March 31, 2023)
Not applicable.

Carrying value inthe consolidatedbalance sheets

Acquisition cost

Difference

19,536

12,757

6,779

19,536

12,757

6,779

106

128

(21)

(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost
SharesOther
Subtotal(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
SharesOther
Subtotal

106

128

(21)

Total

19,643

12,886

6,757

2. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2023 to March 31, 2024)
Not applicable.

23

ANNUAL REPORT 2024

ANNUAL REPORT 202424

Consolidated Financial Statements(Retirement Benefits)
1. Outline of adopted employee retirement benefit plans
The Company and its domestic consolidated subsidiaries have adopted unfunded retirement benefit plans to provide for retirement benefits fortheir employees. Half of the retirement benefit plans are defined benefit plans and the remaining portion are defined contribution plans.
The defined benefit plans are lump-sum severance payment plans to provide retirement benefits by means of a point scheme based on service period.
In the defined contribution plans, the contribution is clearly sectionalized by individual and the pension benefit amount is determined based on
the total of the contributions and the return on plan assets thereof.
In addition to the above, the Company and its domestic consolidated subsidiaries are affiliated with the multiemployer plans of the Japan SOGO
Employees’ Pension Fund. As the rational computation of plan assets cannot be ensured for the multiemployer pension plans, accounting is
processed in a similar manner as that for the defined contribution plans.
At the consolidated subsidiaries in Japan, retirement benefit liability and retirement benefit expenses are calculated by the simplified method. They
are included in the following relevant items because of their immateriality in the consolidated financial statements.

Millions of yen
2024

2024

4,209

4,023

26,574Service cost

228

265

1,751

Interest cost

24

40

265

Accrued amount of actuarial differences

–

(282)

(1,868)

Accrued amount of prior service cost

–

(124)

(824)

(437)

(54)

(362)

4,023

3,866

25,535Retirement benefits paid
Ending balance of projected benefit obligations(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable.

(3) Reconciliation of the ending balance of projected benefit obligations and plan assets, and the retirement benefit liability and the net defined
benefit asset in the consolidated balance sheets

25

Millions of yen

Thousands of U.S.Dollars

2023

2024

2024

Projected benefit obligations under unfunded plans

4,023

3,866

25,535

Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets

4,023

3,866

25,535Retirement benefit liability

4,023

3,866

25,535

Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets

4,023

3,866

25,535

ANNUAL REPORT 2024

Thousands of U.S.Dollars

2023

2024

228

265

1,751

2024

Interest cost

24

40

265

Amortization of actuarial differences

48

8

56

Amortization of prior service cost

(6)

(10)

(71)

294

303

2,002

Retirement benefit expenses relative to the defined
benefit plans

Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2023

2024

(6)

114

753

48

291

1,925

42

405

2,678

Prior service cost
Actuarial differences
Total

2024

(6) Remeasurements of defined benefit plans (accumulated)
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined benefit plans (accumulated) is as follows:
As of March 31

Millions of yen

Thousands of U.S.Dollars

2023

2024

Unrecognized prior service cost

30

(144)

(956)

Unrecognized actuarial differences

(71)

(220)

(1,454)

(40)

(365)

(2,411)

Total

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable.

As of March 31

Millions of yen

Service costThousands of U.S.Dollars

2023

Beginning balance of projected benefit obligations

Fiscal year ended March 31(5) Remeasurements of defined benefit plans
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined benefit plans is as follows:

2. Defined benefit plans(1) Reconciliation of the beginning/ending balance of projected benefit obligations
Fiscal year ended March 31(4) Retirement benefit expenses and the breakdown of the amounts thereof

2024(7) Matters regarding plan assets
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable.
Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable.

(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)
As of March 31
Discount rate

2023

2024

0.92%

1.36%

ANNUAL REPORT 2024

26

Consolidated Financial Statements

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contribution plans was ¥142 million for the
fiscal year ended March 31, 2023, and ¥140 million ($927 thousand) for the fiscal year ended March 31, 2024.
4. Multiemployer plans
The amount to be contributed under the multiemployer plans of the Japan SOGO Employees’ Pension Fund, of which the accounting is processedin the same manner as that for the defined contribution plans, was ¥156 million for the fiscal year ended March 31, 2023, and ¥158 million ($1,049
thousand) for the fiscal year ended March 31, 2024.

(1) Most recent plan assets reserved under the multiemployer plans
As of March 31
Plan assets

Millions of yen

Thousands of U.S.Dollars(Tax-Effect Accounting)
1. Breakdown of significant components that caused deferred tax assets and liabilities

As of March 31

Millions of yen
2023

Thousands of U.S.Dollars
2024

2024

Deferred tax assets
Real estate for sale

4

4

30

Accrued retirement payments

103

2

13

Accrued enterprise tax

63

54

357

Provision for bonuses

349

259

1,712

Allowance for doubtful accounts

7

6

44

2023

2024

2024

Provision for warranties for completed construction

52

52

349

22,04822,422148,091

Provision for loss on construction contracts

8

76

502

Non-current assets (Impairment losses)

63

61

403

Total of the actuarial liability based on the pension
financing calculation and the minimum liability reserves

17,83818,115

119,645

Net amount

4,210

4,307

28,446

Defined contribution pension benefits payable
Retirement benefit liability

3

3

23

1,233

1,184

7,825

Unrealized gains

28

17

112

(2) Ratio of the Group’s contribution to the multiemployer plans relative to the contributions to the overall retirement benefit plans
Fiscal year ended March 31, 2023: 15.94% (From April 1, 2022 to March 31, 2023)
Fiscal year ended March 31, 2024: 13.98% (From April 1, 2023 to March 31, 2024)

Asset retirement obligation

22

24

161

(3) Supplementary explanation
The major factor of the net amount in Item (1) above was the general reserve (¥3,383 million for the fiscal year ended March 31, 2023, and ¥3,385
million ($22,362 thousand) for the fiscal year ended March 31, 2024).
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.

Valuation allowance

Other
Subtotal of deferred tax assets
Total of deferred tax assets

163

275

1,816

2,103

2021

13,354

(63)

(153)

(1,014)

2,039

1,868

12,340

61

313

2,069

61

313

2,069

1,978

1,555

10,270

Deferred tax liabilities
Valuation difference on available-for-sale securities
Total of deferred tax liabilities
Net deferred tax assets

2. The breakdown of items causing the difference between the effective statutory tax rate and the effective income tax rate after the adoption of taxeffect accounting

Fiscal year ended March 31

2023

2024
(%)

Effective statutory tax rate

(%)

30.6

30.6

Non-deductible expenses such as entertainment
expenses

0.6

0.9

Per capita inhabitant tax

2.5

3.6

Exclusion from revenues such as dividend income

(0.0)

(0.1)

Changes in valuation allowance

0.0

2.2

Effect of higher or lower tax rates in foreign subsidiaries
Tax exemption under the tax measure to promote
wage increases
Other
Effective income tax rate after the adoption of taxeffect accounting

(1.3)

–

–

(3.1)

1.3

0.3

33.6

34.4

(Reconciliation)

27

ANNUAL REPORT 2024

ANNUAL REPORT 202428

Consolidated Financial Statements

3. Accounting Treatments of Corporate and Local Income Taxes or Their Tax Effect Accounting
The Company and some of its domestic consolidated subsidiaries have applied the group tax sharing system. In addition, the Company and someof its domestic consolidated subsidiaries have accounted for and disclosed corporate and local income taxes and their tax effect accounting inaccordance with the “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (PITF No. 42, August 12, 2021).

2. Basic information for understanding revenue from contracts with customers
Basic information for understanding revenue is as stated in “Significant Items on Basis for Preparation of Consolidated Financial Statements, 4.
Accounting Policies, (6) Recognition standards for significant revenues and expenses.”
3. Reconciliation of satisfaction of performance obligations within contracts with customers and cash flows arisingfrom such contracts, and the amount and timing of revenue arising from existing contracts with customers at the end of the consolidated fiscal year
under review expected to be recognized in and after the following consolidated fiscal year

(Asset Retirement Obligation)
End of fiscal year ended March 31, 2023 (As of March 31, 2023)
This information is omitted due to its immateriality.

(1) Contract asset and contract liability balances
End of fiscal year ended March 31, 2024 (As of March 31, 2024)
This information is omitted due to its immateriality.

(Millions of yen)

(Revenue Recognition)
1. Disaggregation of revenue from contracts with customers
The Group classifies sources of its revenues based on the type of services provided to customers into foundation work, civil engineering, geologicalconsulting and other.
Foundation work: Ground work for constructing dam, etc., ground improvement, slope protection and repair
Civil engineering: General civil engineering, various shield constructions, etc.
Geological consulting: Geological research, survey, etc.
Other: Other than the above

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

Receivables arising from contracts withcustomers (beginning balance)
Notes receivable
Accounts receivable fromcompleted construction contracts
Accounts receivable
Electronically recordedmonetary claims - operating

Foundation work

69,608–69,608Civil engineering

2,100

–

2,100

Geological consulting

496

–

496

Receivables arising from contracts withcustomers (ending balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recordedmonetary claims - operating

Construction business(Millions of yen)

Other
Revenue from contracts with customers
Other revenue
Net sales to outside customers

Other businesses(Millions of yen)

Total
(Millions of yen)

2,563

3,462

1,808

1,303

12,033

12,435

23

10

3,462

2,979

4,750

4,530

Contract assets (ending balance)

4,530

4,242

Contract liabilities (beginning balance)

593

423

Contract liabilities (ending balance)

423

980

–

45

45

72,697

221

72,918Other businesses(Millions of yen)

Total
(Millions of yen)–

68,512
2,209

Geological consulting

488

–

488

Other

542

114

657

71,752

114

71,867–12

1271,752

127

71,880Construction business(Thousands of
U.S. Dollars)Foundation work452,495

Other businesses(Thousands of
U.S. Dollars)–

Total(Thousands of
U.S. Dollars)
452,495

Civil engineering

14,590–14,590Geological consulting

3,224

–

3,224

Other

3,585

759

4,345

473,897759

474,656–85

85

473,897845

474,742

ANNUAL REPORT 2024

23

Contract assets (beginning balance)–

Net sales to outside customers

16

667

2,209

Revenue from contracts with customers

12,03372,87268,512Other revenue

11,249175

Foundation work

Net sales to outside customers

1,808

175

Civil engineering

Revenue from contracts with customers

1,917

491

Construction business(Millions of yen)

Other revenue

Fiscal year ended March 31, 2024
(From April 1, 2023 to March 31,2024)

72,697

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)

29

Fiscal year ended March 31, 2023
(From April 1, 2022 to March 31,2023)

Notes:
1. Contract assets are primarily rights to customers for revenues recognized based on the measurement of progress of completion in
uncompleted construction contracts and are included in “notes receivable, accounts receivable from completed construction contracts andother” under current assets in the consolidated balance sheets. The rights are reclassified to receivables when they are invoiced to customers
and the rights of the Company and its consolidated subsidiaries become unconditional.
2. Contract liabilities are mainly advances received from customers on construction contracts and are included in “advances received on
construction contracts in progress” under current liabilities in the consolidated balance sheets. The performance obligations are satisfied inaccordance with the progress of construction and the contract liabilities are reclassified to revenue. Almost all of the contract liability balance
as of the beginning of the consolidated fiscal year under review was recognized as revenue in the consolidated fiscal year under review.

ANNUAL REPORT 202430

Consolidated Financial Statements(Thousands of U.S. Dollars)

Fiscal year ended March 31, 2024
(From April 1, 2023 to March 31,2024)
Receivables arising fromcontracts with customers(beginning balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recorded monetaryclaims - operating

11,942
79,478155
22,868

Receivables arising from contracts withcustomers (ending balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recorded monetaryclaims - operating

82,130Contract assets (beginning balance)

29,919Contract assets (ending balance)

28,023Contract liabilities (beginning balance)

2,799

Contract liabilities (ending balance)

6,474

8,606

71
19,678(2) Transaction price allocated to the remaining performance obligations
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
The total amount of transaction allocated to the remaining performance obligations as of the end of the consolidated fiscal year under review
was ¥46,602 million, and the Company expects to recognize revenue for these remaining performance obligations between one or two years
upon satisfaction of such obligations.
Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
The total amount of transaction allocated to the remaining performance obligations as of the end of the consolidated fiscal year under review
was ¥48,582 million ($320,868 thousand), and the Company expects to recognize revenue for these remaining performance obligations
between one or two years upon satisfaction of such obligations.

(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation ofmanagement resources and in assessing business performance.
The Group’s operations consist of the construction business as well as several other business activities such as sales of merchandise and materials,
and insurance agency. As these businesses are insignificant in terms of information for disclosure and the sole reportable segment of the Group is
the “Construction business,” segment information for these businesses is omitted.

31

ANNUAL REPORT 2024

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation ofmanagement resources and in assessing business performance.
The Group’s operations consist of the construction business as well as several other business activities such as sales of merchandise and materials.
As these businesses are insignificant in terms of information for disclosure and the sole reportable segment of the Group is the “Construction
business,” segment information for these businesses is omitted.

[Related Information]
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed 90% of the net sales on the
consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of the amount of property, plantand equipment on the consolidated balance sheets.
3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% or more of the net sales on the
consolidated statements of income.
Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed 90% of the net sales on the
consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of the amount of property, plantand equipment on the consolidated balance sheets.
3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% or more of the net sales on the
consolidated statements of income.

ANNUAL REPORT 202432

Consolidated Financial Statements

Note: The basis for calculation of “Basic earnings per share” is as follows:[Information on Impairment Losses of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
The information is omitted as the reportable segment is solely the construction business.

Millions of yen

Fiscal year ended March 31

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
The information is omitted as the reportable segment is solely the construction business.

2023

Thousands of U.S.Dollars
2024

2024

Basic earnings per share
Profit attributable to owners of parent
Amounts not attributable to common shareholders
Profit attributable to owners of parent regarding
common shares
Average number of common shares (Thousands ofduring the fiscal year
shares)[Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable.
Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable.

(Significant Subsequent Events)
Not applicable.

[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable.

5) [Consolidated Supplementary Statements][Schedule of Bonds Payable]
Not applicable.

3,526

3,066

20,250

–

–

–

3,526

3,066

20,25041,706

41,721[Schedule of Borrowings]
Not applicable.

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable.

[Schedule of Asset Retirement Obligation]
This information is omitted due to its immateriality.

[Related Party Information]
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Parent company information
AN Holdings Corp. (unlisted)
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION (unlisted).
(2) Condensed financial information of significant affiliated companies
Not applicable.

(2) [Other]
Quarterly data for the fiscal year ended March 31, 2024
Cumulative periods

Fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Parent company information
AN Holdings Corp. (unlisted)
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION (unlisted).
(2) Condensed financial information of significant affiliated companies
Not applicable.

Net sales (Millions of yen)
Profit before income taxes (Millions of yen)
Profit attributable to owners of parent(Millions of yen)
Basic earnings per share (Yen)Three months(From April 1, 2023 toJune 30, 2023)

Six months(From April 1, 2023 to
September 30, 2023)

Nine months(From April 1, 2023 to
December 31, 2023)

Fiscal year ended
March 31, 2024
(From April 1, 2023 toMarch 31, 2024)

16,12034,97754,87471,880

325

1,729

3,727

4,503

176

1,100

2,444

3,066

4.23

26.37

58.59

73.49

(Per-Share Information)
Fiscal year ended March 31

2023

2024

Net assets per share¥763.67¥811.40$5.36

Basic earnings per share¥84.56¥73.49$0.49

Diluted earnings per share

Diluted earnings per share is not disclosed
as no potential shares exist.

Diluted earnings per share is not disclosed as nopotential shares exist.

Cumulative periods
Net sales (Thousands of U.S. Dollars)Profit before income taxes(Thousands of U.S. Dollars)Profit attributable to owners of parent(Thousands of U.S. Dollars)
Basic earnings per share (Dollars)

Accounting periods

33

ANNUAL REPORT 2024

Three months(From April 1, 2023 toJune 30, 2023)

Six months(From April 1, 2023 to
September 30, 2023)

Nine months(From April 1, 2023 to
December 31, 2023)

Fiscal year ended
March 31, 2024
(From April 1, 2023 toMarch 31, 2024)

106,467

231,008

362,426

474,742

2,150

11,421

24,61929,741

1,165

7,265

16,144

20,250

0.028

0.17

0.39

0.49

First quarter(From April 1, 2023 toJune 30, 2023)

Second quarter(From July 1, 2023 to
September 30, 2023)

Third quarter
Fourth quarter(From October 1, 2023 (From January 1, 2024
to December 31, 2023) to March 31, 2024)

Quarterly basic earnings per share (Yen)

4.23

22.14

32.22

14.90

Quarterly basic earnings per share (Dollars)

0.03

0.15

0.21

0.10

ANNUAL REPORT 2024

34

35

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36

37

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38

39

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40

Corporate Overview and Major Construction Methods (as of March 31, 2024)
Trade Name

NITTOC CONSTRUCTION CO., LTD.

Headquarters

4F, 5F and 6F, Daiwa Higashi-Nihonbashi Bldg., 3-10-6, Higashi-Nihonbashi, Chuo-ku, Tokyo 103-0004, Japan

Established on

December 17, 1947

Capital

Total number of issued shares: 41,753,765 (as of July 19, 2024)
Paid-in capital: ¥6,076 million
Tokyo Stock Exchange: Tokyo Stock Exchange Prime

Number of
Employees(Consolidated)

41

ANNUAL REPORT 2024

Construction business:1,091 persons
Other business: 6 persons
Total: 1,097 persons
Note: The annual average number of temporary employees is 313.

Description ofBusiness

Comprehensive construction business· Civil engineering and foundation· Environmental and geological consulting

LicenseSpecified Construction Business—License No. 211, issued by the Minister of Land, Infrastructure, Transport and Tourism(Date of approval: October 25, 2021)

Business Lines

Civil engineering works, Slope protection works, Landslide protection works, Revegetation works, Ground improvement works,
Grouting, Piling, Sewage maintenance and renovation, Construction consulting and other

Sales Offices

Asahikawa / Hakodate / Doto / Aomori / Morioka / Sanriku / Akita / Yamagata / Fukushima / Gunma / Utsunomiya / Mito / Chiba /Saitama / Yokohama / Nagano / Sado / Joetsu / Kanazawa / Fukui / Toyama / Gifu / Mie / Shizuoka / Keiji / Kobe / Nawa / Takamatsu /Matsuyama / Kochi / Tottori / Matsue / Okayama / Yamaguchi / Nagasaki / Saga / Oita / Kumamoto / Miyazaki / Kagoshima / Okinawa

Subsidiaries

Midori Industries Co.,Ltd
3-10-6, Higashi-Nihonbashi,Chuo-ku, Tokyo 103-0004 Japan
Shimane Earth Engineering Co.,Ltd
310-1, Tsuda-cho, Matsue-Shi, Shimane 690-0055 Japan
Yamaguchi Earth Engineering Co.,Ltd
2-3-13, Hirano,Yamaguchi-Shi,Yamaguchi 753-0015 Japan
Ehime Earth Engineering Co., Ltd.
2-6-12 Amayama ,Matsuyama-shi, Ehime 790-0951 Japan
Fukui Earth Engineering Co., Ltd.
24-21-2 Ebata-cho, Fukui-shi, Fukui 918-8016 Japan
PT. NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia

Staffing(Qualification
Holders)(Persons)

Number of employees
Professional Engineer
Registered 1st Class Civil Engineer
Registered 2nd Class Civil Engineer
Registered 1st and 2nd Class Architect
Registered Surveyor and Assistant-Surveyor

Total 1,097
55
650
752
8
324

ANNUAL REPORT 202442