Annual Report2020Profile
Okumura was established in 1907 based on two key principles enshrined in the corporate mottos “steadfast
management” and “sincere operation.” The steady growth achieved over the years has been made possible throughthe unflagging support of our customers.
Okumura’s main business activities include civil engineering projects for railways, roads, power station facilities,
sewage and water works, and others. In the area of construction are projects such as houses, public facilities, medical
facilities, and office buildings. The Company has developed technology at the highest level, with achievements
including the seismic isolation system used to construct Japan’s first earthquake-absorbing building. In the area ofenvironment-related technology, Okumura has developed techniques for 100% recycling of demolished concrete, andnatural greening of concrete surfaces on buildings.
Okumura understands what an important mission it is to provide a better environment for the future. Accordingly,
the Company is dedicated to contributing to meaningful social infrastructure investment and to always being a
corporation regarded highly by society. It will achieve this by continuing to develop as an all-around construction
company based on steadfast business management.
Contents
1
2
4
6
8
10
11

Financial Highlights
To Our Shareholders
Review of Operations
TopicsConsolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income

12
13
14
34
36
37
38

Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
Breakdown of Orders (Nonconsolidated)
Network
Board of Directors / Investor Information

Financial Highlights
Okumura Corporation Annual Report 2020

For the years ended March 31

2018

2019

Consolidated:

2020

2020
Thousands of
U.S. Dollars

Millions of Yen¥223,928¥220,884¥226,372$2,080,051

Operating income

15,854

13,717

11,517

105,825

Net income attributable to owners of the parent

15,164

12,314

9,796

90,008

Total assets*1

313,864

297,691

294,919

2,709,907

Total equity

167,724

168,401

156,1121,434,456

Net sales

Per Share:

Yen

U.S. Dollars

Basic net income*2¥380.65¥312.93¥258.01$2.37

Cash dividends applicable to the year*2

184.00153.00143.001.31*1 “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018), etc. have been applied from the
beginning of the fiscal period of March 2019. Accordingly, the summaries of business results for the fiscal period of March 2018 represent performance results after retrospectively applying the said accounting standards, etc.
*2 Per share figures have been restated, as appropriate, to reflect the consolidation of shares at the rate of five shares to one share of the Company’scommon stock effective October 1, 2017.
Note:	The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yenat the approximate exchange rate in Tokyo on March 31, 2020, of ¥108.83=$1.

Net Sales

Net income attributable to owners of the parent(Millions of Yen)

250,000

Total Equity(Millions of Yen)

20,000(Millions of Yen)
200,000

200,000

16,000160,000

150,000

12,000120,000

100,000

8,000

80,00050,0004,000

40,000

0

0

0

2018

2019

2020

2018

2019

2020

2018

2019

2020

Disclaimer Regarding Forecasts and Projections
This Annual Report includes forecasts, projections and other predictive statements that represent Okumura’s assumptions and expectations in light of currently available information. These forecasts, etc., are based on industry trends, circumstances involving clients and other factors, and involve risks, variables and uncertainties.
The Okumura Group’s actual performance results may differ from those projected in this Annual Report. Consequently, no guarantee is presented or implied as tothe accuracy of specific forecasts, projections or predictive statements contained herein.

1

To Our Shareholders

We would like to thank our shareholders for their continuing support and encouragement and wish eachone of them the greatest success in their endeavors.

2

A general overview of our business performance for the fiscal period of March 2020 (April 1,
2019 to March 31, 2020) is provided below.

Results for the Year Ended March 31, 2020
During the period under review, amid the continuing stagnation of the overseas economies, thedownward pressure of the consumption tax hike and the impact of natural disasters together with the
spread of the novel coronavirus (COVID-19) resulted in the rapid slowdown of the Japanese economy. In
this climate, the construction industry was able to operate under a generally stable businessenvironment, as robust construction investments, mainly in public investments, were maintained.
In these circumstances, the Company’s consolidated net sales increased 2.5% year on year to¥226,372 million. Meanwhile, as a result of factors such as the deterioration of the gross profit fromconstruction work, despite the improvement of the gross profit from civil engineering work, consolidated
gross profit decreased 7.8% year on year to ¥29,089 million, operating income decreased 16.0% year on
year to ¥11,517 million, and net income attributable to owners of the parent decreased 20.5% year on
year to ¥9,796 million, due to the deterioration of extraordinary income/loss.

Dividend for the Year Ended March 31, 2020
The Company decided to pay a dividend of ¥143.00 per share (interim dividend of ¥41.00, year-end
dividend of ¥102.00) for the period ended March 31, 2020 based on its basic policy regarding profit sharing.
The Okumura Group, in an effort to ensure proactive investments for the achievement of the“Vision toward 2030,” which was formulated in April 2019, and the steady return of profits to ourshareholders, has revised its measures for shareholder returns from this term as follows.

Measures for Shareholder Returns from the Fiscal Year Ended March 31, 2020
Total payout ratio*1 (consolidated): 50% or more
Payout ratio (consolidated): 30% or more*2
Flexibly purchase treasury stock

Introduce the interim dividend system*1: Total payout ratio = (Total dividends + Total purchase of treasury stock) / Net income attributable to owners of the parent*2: Regardless of the Company’s business performance, set a minimum dividend of ¥45 per share as the Company has stably paid thus far

Okumura Corporation Annual Report 20203

Medium Term Business Plan
The outlook for the Japanese economy is expected to remain harsh for the time being, given thecontinuing slowdown of internal and external demand as a result of the effects of the spread of COVID-19.
The construction industry expects to maintain a certain level of robustness in public investments thanks tothe effects of government policies. However, with no end in sight to the COVID-19 pandemic, and due tothe uncertainties surrounding corporate capital investment trends and the impact of the suspension ofworks and other events on business performance, the situation will continue to be precarious.
Under these circumstances, the Okumura Group is committed to responding flexibly to preventthe further spread of COVID-19 while continuing its business. Moreover, as the Group looks ahead to the“Vision toward 2030,” it will engage in initiatives to “increase corporate value,” “expand business domains,”
and “utilize human resources” based on the “Medium Term Business Plan (FY2019-FY2021).”
Specifically, in the construction business, we will continue to work on disaster-prevention/
mitigation areas where demand is expected to grow going forward, maintenance and administration,
strengthening renewal area, promoting technological development that contributes to enhancing ourcompetitive edge in the industry and our productivity. We also enhance our capabilities to propose
solutions through design and construction that meet diverse customer needs. In the real estate business,
we will strengthen initiatives to acquire excellent and profitable real estate and boost businessdevelopment, while at the same making efforts to utilize our stock through such means as renovation
projects in consideration of the environment. Additionally, we will aim to diversify our earnings base andproactively engage in the promotion of the PPP/concession and new businesses such as energy
business. Furthermore, we will advance workstyle reforms by firmly establishing the system of 8 days
holiday for every 4 weeks at construction sites, encouraging to take leave and holidays and working to
reduce overtime.
The Company looks forward to the continued support and guidance of our shareholders.
June 2020

Takanori Okumura
President and Representative Director

Review of Operations
Major Projects Completed
CIVIL ENGINEERING

4

Chubu Odan Expressway Ishiai Tunnel WorkWork period: March 2016 to March 2020
Construction length: 586m
(i) Tunnel length: 509m (inner space 77.7m2, NATM blasting), Invert length: 509m
2 tunnel portals, supplementary construction method (steel pipe forepiling method, facebolts), 15-span(ii) Earthwork: 2,000m3 of road excavation, 4,000m3 of spoil excavation, and 47,000m3 of mucking(iii) Landslide measures: 4,000m3 of counterweight fill and 209 vertical pre-reinforcement bolts(iv) Ishiai filling site: 70,000m3 of fill, 234m of diversion channel, 162m of temporary road forconstruction, and 829 trees planted(v) Temporary bridge removal work: 2 sites(vi) Incidental work: 201.4m diverted forest road, 606m2 (EPS method) and 958m2 (FCB method) oflight-weight fill

New Construction of Subgrade and Other Works in the Noe Area of
the Osaka Higashi LineWork period: October 2012 to December 2019
Construction length: 1,951m[Station] 1 seven-span rigid frame elevated bridge, 2 RC slab girders, 2 small abutments, 1 set of
platform girders and platform roof
[Fill] Reinforced soil retaining wall (Geotextile) length: 1,352m, widening of embankment length:
125m, 1 set of sound-insulating walls[Renovation of bridges] N=15 bridges, construction of 1 set of new PC girders, 3 RC slab girders,
1 H-shaped steel embedded girder, and new construction of 1 Gt girder
1 installation of footpath on the bridge-side, 1 work on soundproof measures (3 bridges)[Building work] 1 signal equipment room, 1 equipment work for the signal equipment room, and
1 new construction for the Noe Station Building

Civil Engineering Work of the Osabe River Floodgate on the Class B
River, Osabe River

Public Sewer Works on the Shinkawa 6th Trunk Sewer (Rainwater)(No.1) of the Shinkawa 6th Drainage Area

Work period: December 2013 to November 2019
Work on the main floodgate:
Steel pipe pile work, 77 of φ1000 and 61 of φ500
Cutoff steel sheet pile work: 228 sheets of 10H-type steel sheet piles, and concrete work:
3,708m3
Slope revetment work: 559m2
Bed protection work: 136 (1t) concrete apron blocks and 108 (4t) concrete apron blocks
Curtain wall work, work on the upper part of the concrete control bridge, and work on
the gravity retaining wall
1 temporary work

Work period: December 16, 2014 to August 30, 2019
Primary lining: Earth pressure balance shield tunneling method (length: 1,175.8m)
Steel segment (outside diameter: φ2,750mm, inside diameter: φ2,500mm)
Secondary lining (cast-in-place concrete): (length: 1167.41m, finished inside diameter: φ2,200mm,
2 tunnel steel forms)
Small diameter pipe jacking work (SP700-VP500): (length: 63.53m) Pipe jacking work using single
pipe boring
Steel casing for the construction of shafts (round) by the cutting lock method (revolving method):(φ2500: 5 locations, φ2000: 3 locations, φ1800: 1 location)
Shaft construction: (Launching shaft for shield tunneling: 10.0m×5.6m×14.3m in depth)(Shaft connecting river to sewage drain: 6.5m×5.1m×4.8m in depth)
Manhole construction: (Special manholes: 6 locations, assembled manholes: 10 locations)
1 supplementary soil improvement work
1 incidental work

BUILDING

GLP Nagareyama II
Work period: November 2016 to December
2019
Structure: PC (partially steel) with seismic
isolation system
Total floor space: 96,296.86m2

TOYO SHINYAKU Co., Ltd.
Intelligence Park No.1 Plant
Work period: March 2018 to May 2019
Structure: RC
Total floor space: 22,189.40m2

COURTYARD BY MARRIOTT
Osaka Honmachi

PROUD TOWER
Fuchu KotobukichoWork period: December 2017 to
September 2019
Structure: Steel
Total floor space: 7,583.13m2

Work period: October 2017 toJanuary 2020
Structure: RC
Total floor space: 9,462.95m2

Okumura Corporation Annual Report 2020

Orders Received
CIVIL ENGINEERING

Construction of Communal Final Disposal Site for General Waste
Work period: August 2019 to February 2022
(1) Detailed design work of the facility(2) Construction work of the facility
Land development work: 158,900m3 of excavation, 136,300m3 of fill
Soil improvement work: 14,400m3
Work on waste storage structure (L-type retaining wall): 10,380m3
Leakage insulation work: 8,600m2
1 work on the flood control reservoir
Work on the leachate treatment facility: Non-discharge method 500m2
1 construction work of covering facility
1 construction work (roads, gates, and surrounding equipment)

Road Improvement Work of the Sasebo-Sechibaru Prefectural
Road (Itayama Tunnel (tentative name))Work period: July 2019 to July 2022
Construction length: 1,640m
Tunnel length: 1,602m
Inner space cross section area: 52.1 to 69.8m2
Invert concrete length: 807m
Tunnel concrete lining length: 1,602m
Supplementary excavation work: 11 shifts
1 incidental inner work
Tunnel paving work length: 1,602m
Work to fill in old caves volume: 10,569m3
Portal work: 2 sites
1 cut slope reinforcement work

Demolition and Removal of Disaster-damaged Buildings, etc.,
Decontamination and Other Works at the Zone Designated for
Reconstruction and Recovery of Katsurao Village for 2019
Work period: April 2019 to March 2021
(1) Demolition and removal of buildings, etc.
(i) 23 cases of demolition of buildings designated for demolition and sorting of waste(2) Decontamination and other works(i) Residential land and others (lawns, etc.: 122,000m2)(ii) Roads (paved: 37,900m2, unpaved: 35,130m2)(iii)Farmland (Rice paddies: 19.8ha, cultivated land: 12.4ha, pastureland: 18.2ha, and clearing anduprooting 56,514 trees)(iv)Forests (43.1ha)(v) Transport and storage of contaminated soil, etc. (59,962 sacks)(vi)Restoration work of temporary waste storage sites (7.2ha, 3 sites)

Installation Work of Foundations for the Comprehensive
Wastewater Treatment Facility in conjunction with the
Replacement of Thermal Power Station’s Unit No. 1
Work period: October 2019 to March 2021
460 steel pipe piles of φ600 mm and 27.0 to 32.5m in lengths
147 PHC piles of φ400 mm and 26.0 to 30.0m in lengths
Structure concrete: 6,800m3, formwork: 10,400 m2, rebars: 700t
Concrete form shoring work: 6,900m3
Waterproofing work (FRP lining): 9,600m2
1 set of works on various small foundations, dikes and cable pits

BUILDING

GLP Nagareyama VIIIWork period: February 2020 to August
2021
Structure: PC (partially steel) withseismic isolation system
Total floor space: 154,991.3m2

New Construction of Facilities andStructures of the Type 1 Urban
Redevelopment Project of the SouthArea of Tajimi Station
Work period: March 2020 to September 2022
(Residential building) Structure: RC with seismic
isolation system, Total floor space: 23,448.21m2(Connecting corridor structure) Structure: Steel,
Total floor space: 235.96m2(Commercial services building) Structure: Steel,
Total floor space: 10,829.98m2(Parking building) Structure: Steel, Total floor
space: 14,044.49m2

New Yawata City HallWork period: December 2019 toNovember 2022
Structure: Steel and RC with columntop seismic isolation system
Total floor space: 11,496.81m2

Local Incorporated
Administrative Agency
Kurate HospitalWork period: March 2020 to March
2021
Structure: RC
Total floor space: 16,498.44m2

5

Topics
Development of a Cleaning System for Curved Ceilings Used in the Repair andReinforcement Works of Tunnels
Okumura has been promoting the mechanization of work processes in
the repair and reinforcement of works infrastructure in an effort toraise the efficiency of cleaning the concrete ceiling surfaces, cutback
on airborne dust, and improve safety level. Recently, the Company, in
addition to successfully mechanizing the cleaning of flat concretesurfaces, has developed a system compatible with curved concretesurfaces such as tunnels.
By adding a swinging function to the cleaning head which ispressed against the concrete ceiling surface and maintaining a certain

6

distance between the concrete surface and the grinding nozzle
through a sensor, this system is capable of cleaning curved surfaces
and reduces airborne dust generated by cleaning through the vacuum
suction of dust through the suction port near the grinding nozzle andthe double frame for preventing airborne dust.
Going forward, the Company will proactively propose this system inrenovation work as construction technology that improves the work
environment and enhances work efficiency.

Outline of the system
Blast
SuctionElectricity(1) Cleaning device(3) Hoisting-platform vehicle

Cleaning head(4) Compressor(2) Blast tank(2) Hopper tank(2) Recovery unit for dust, etc.

4-ton vehicle A

Airborne dust prevention frame 1 (brush)(4) Generator

4-ton vehicle B

Suction port

Cleaning device

Vacuum hose (suction)
Blast hose (blast)
Operator

Run
Transverse
movement
Cleaning device

Airborne dust prevention frame 2 (brush)
Cleaning head

Grinding nozzle
Status of demonstration tests

The Administrative Building of Okumura Corporation Technical Research Institute Was Renovatedand Acquired “Nearly ZEB” Rating

Exterior of Technical Research Institute’s Administrative Building

The Administrative Building of Okumura Corporation Technical Research Institutewas renovated to achieve a comfortable indoor space while aiming to become a“Zero” energy consumption building (ZEB: net Zero Energy Building) and acquired
the Nearly ZEB certification of BELS (Building-Housing Energy-efficiency Labeling
System) as well as being certified and registered as a ZEB Leading Owner by
Sustainable open Innovation Initiative.
This building, which has adopted (i) advanced heat insulation casing, (ii) highefficiency air conditioning, (iii) high-efficiency LED lighting, (iv) task ambient
lighting, etc. as energy-saving technologies and solar power generation as energycreation technology, has reduced primary energy consumption by 76% compared tostandard buildings.
Okumura, as a ZEB planner and a ZEB leading owner, will leverage its knowledge
acquired through this building to proactively promote ZEB and to aim for a carbonfree society.

Okumura Corporation Annual Report 2020

Arranged a Project Finance for the Ishikari
Biomass Power Generation Project in Hokkaido
ISHIKARI BIO ENERGY GODO KAISHA, a consolidated subsidiary of
the Company, which is engaged in the “Ishikari Biomass Power
Generation Project,” began the construction of a power plant in the
Ishikari Bay New Port Industrial Park (Ishikari city and Otaru city in
Hokkaido) from October 2019 and in February 2020 agreed toreceive capital investments from Kyuden Mirai Energy Company,
Inc. and New Circle Energy Co., Ltd., as well as concluding a loan
agreement with financial institutions to arrange a project finance.
The Company will continue to proactively utilize renewableenergy in its businesses toward achieving a low-carbon society andcontribute to a realization of sustainable society through biomass
power generation, which has a low environmental impact.

Image of completed power plant

Production of Third TV Commercial:
Communicating a Corporate Message“We Love Construction”

Commercial Drama Series
I’m Okumura Kumi and I Love Construction SEASON 3

The Company produced its third TV commercial and began
airing the commercial during the broadcast of the “39th Osaka
Women’s Marathon,” which was sponsored by the Company. As
with the previous commercials, through the corporate messageof “We Love Construction,” it expresses Okumura’s passion andsincere commitment to construction founded on its corporatemottos, “steadfast management” and “sincere operation.”
The commercial videos may be seen during the programs,“Nikkei Special Gaia no Yoake,” on the TV TOKYO network,“Tokoro JAPAN” on the Kansai Television and Fuji Television
networks, and also on the Company’s website.
Corporate concept commercials“We Love Construction.”

Sponsorship of Osaka Women’s Marathon:Supporting the Global Strides of Female
Athletes from Osaka
Okumura sponsored the 39th Osaka Women’s Marathon held on
Sunday, January 26, 2020. The Company has been sponsoring theevent since 2018, driven by the athletes’ dedication to the race,
which mirrored and resonated with the commitment to work ofeach and every employee at Okumura, as well as our desire to
bring excitement to the streets of Osaka through the event and ourdetermination to support the global strides of female athletes from
Osaka, which has been reinforced by the Company’s contributions
to the development of Osaka and the empowerment of women.
The main visuals of the event, which attracted the attention of
the public due to the event being the Marathon Grand
Championship Final Challenge to select the final qualifier forJapan’s Tokyo Olympic Marathon Team, were depicted once again
this year by the popular manga artist Naoki Urasawa. The visuals
powerfully depict the earnest hope of the athletes as theystruggle to secure the final berth, epitomized by the phrase,“In the end, I will.”(Two episodes) 15 seconds each“Let’s make huge dreams” episode“We are a team” episode

Commercial series“I’m Okumura Kumi and I Love Construction”(eighth and ninth episodes) 15 seconds and 30 seconds“Construction is a marathon” (eighth episode)

Photo: SANKEI SHIMBUN CO., LTD

Website dedicated to Osaka Women’s Marathon:

http://www.okumuragumi.co.jp/osaka-marathon/“Kumi, the safety warrior” (ninth episode)

For more information, see the Commercial Gallery (Commercial videos)

http://www.okumuragumi.co.jp/movie

7

Consolidated Balance Sheet
Okumura Corporation and Consolidated Subsidiaries
March 31, 2020

ASSETS

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2020

2019

2020

¥ 27,258¥ 49,834$ 250,465

1,922

2,014

17,658Current assets:
Cash and cash equivalents (Note 12)
Time deposits (Notes 12 and 14)
Receivables:

8

4,586

2,083

42,139117,154

98,0681,076,484

34

900

315

Other

6,949

7,133

63,852

Allowance for doubtful receivables (Note 12)

(190)

(700)

(1,747)

Trade notes (Note 12)
Trade accounts (Note 12)
Unconsolidated subsidiaries and associated companies (Note 12)

Inventories (Note 4)

10,268

9,579

94,345Prepaid expenses and other

3,684

832

33,853

Total current assets

171,665

169,743

1,577,364

Land (Note 14)

33,60431,759308,779

Buildings and structures (Note 14)

14,865

13,171

136,593

Machinery and equipment

1,140

824

10,472

Furniture and fixtures

438

364

4,028

Lease assets (Note 11)

3

3

24

Property, plant and equipment (Notes 5 and 6):

Construction in progress
Total property, plant and equipment

9,506

2,958

87,34559,55649,079547,241

57,13073,932524,952

446

372

4,097

Investments and other assets:
Investment securities (Notes 3, 12 and 14)
Investments in and advances to unconsolidated subsidiaries and associated companies (Notes 12 and 14)
Long-term loans receivable (Note 12)

18

65

168

Asset for retirement benefits (Note 7)

4,068

3,141

37,3792

31

15

Goodwill

468

498

4,297

Other assets

3,547

2,840

32,594

Deferred tax assets (Note 9)

Allowance for doubtful receivables (Note 12)
Total investments and other assets
Total
See notes to consolidated financial statements.

(1,981)(2,010)(18,200)

63,69878,869585,302¥294,919¥297,691$2,709,907

Okumura Corporation Annual Report 2020

LIABILITIES AND EQUITY

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2020

2019

2020

¥  8,947¥  8,078

Current liabilities:
Short-term bank loans including current portion of long-term debt (Notes 6, 11 and 12)$

82,216

Payables:Trade notes (Note 12)

3,064

2,524

28,157

Trade accounts (Note 12)40,88140,814

375,638

Other

1,338

754

12,295

Advances received on construction projects in progress

12,59913,942

115,765

Income taxes payable

1,939

2,298

17,815

667

715

6,131

Allowance for warranty work on construction projects
Allowance for losses on construction contracts

1,128

1,118

10,361

Deposits received

22,98318,081

211,187

19,444

19,696

178,662

112,990108,020

1,038,227

Long-term debt (Notes 6, 11,12 and 13)

6,018

7,124

55,294

Non-recourse loans (Notes 6, 12, 13 and 14)

9,221

—

84,733

Deferred tax liabilities (Note 9)

10,216

14,042

93,869

362

104

3,328

Total long-term liabilities

25,817

21,270237,224

Total liabilities

138,807129,290

1,275,451

19,83919,839182,293

Capital surplus

26,24825,330241,187

Retained earnings

105,554103,251

969,901(19,761)(16,070)(181,578)

23,23434,415

213,486

46

—

423

Other (Note 14)
Total current liabilities
Long-term liabilities:

Other

Commitments and contingent liabilities (Note 14)

Equity (Notes 8, 15 and 16):
Common stock
authorized, 96,000,000 shares; issued, 45,665,226 shares

Treasury stock—at cost
7,836,832 shares in 2020 and 6,834,822 shares in 2019
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Deferred gains or losses on hedges
Defined retirement benefit plans
Total

1,365

1,693

12,541

24,645

36,108226,450

(413)

(57)

(3,797)

Total equity

156,112

168,401

1,434,456

Total¥294,919¥297,691$2,709,907

Noncontrolling interests

9Consolidated Statement of Income
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2020

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2020

2019

2020

¥226,372
197,283
29,089¥220,884
189,341
31,543$2,080,051
1,812,766
267,285

Selling, general and administrative expenses (Note 10)
Operating income

17,572
11,517

17,826
13,717

161,460
105,825

Other income (expenses):
Interest and dividend income
Interest expense
Other—net
Other income —net

1,460
(208)
971
2,223

1,264
(155)
1,732
2,841

13,415(1,911)
8,922
20,426

Income before income taxes

13,74016,558126,251

Income taxes (Note 9):
Current
Deferred
Total income taxes

3,602
434
4,036

3,555
691
4,246

33,098
3,983
37,081

Net income
Net loss attributable to noncontrolling interests
Net income attributable to owners of the parent

9,704
(92)
9,796

12,312(2)¥ 12,314

89,170(838)
90,008Net sales
Cost of sales
Gross profit

10

Per share of common stock (Notes 2.p and 16):
Basic net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

¥¥ 258.01
143.00$Yen

U.S. Dollars(Note 1)

¥ 312.93
153.00$ 2.37
1.31

Consolidated Statement of Comprehensive Income
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2020

Net income
Other comprehensive income (Note 15):
Unrealized gain on available-for-sale securities
Deferred gains or losses on hedges
Defined retirement benefit plans
Total other comprehensive income
Comprehensive income
Total comprehensive income (loss) attributable to:
Owners of the parent
Noncontrolling interests
See notes to consolidated financial statements.

Okumura Corporation Annual Report 2020

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2020

2019

2020

¥    9,704¥12,312$    89,170(11,181)92(328)(11,417)¥   (1,713)

(424)
—
(445)
(869)
¥11,443(102,740)
846(3,018)(104,912)$   (15,742)¥   (1,668)(45)¥11,445(2)$   (15,326)
(416)

11

Consolidated Statement of Changes in Equity
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2020

Thousands

Millions of Yen
Accumulated othercomprehensive income

Number ofshares ofcommonstock
outstanding

12

BALANCE, APRIL 1, 2018
Net income attributable to owners of the parent
Cash dividends, ¥184 per share
Purchase of treasury stock
Net change in the year
BALANCE, MARCH 31, 2019
Net income attributable to owners of the parent
Cash dividends, ¥194 per share
Purchase of treasury stock
Disposal of treasury stock
Change in the parent’s ownershipinterest resulting from transactions
with noncontrolling shareholders
Net change in the year
BALANCE, MARCH 31, 2020

39,833——(1,003)—38,830——(1,002)0——37,828

Commonstock

Unrealized
gain on Deferred Defined
available- gains or retirement
Capital Retained Treasury
for-sale losses on
benefit Noncontrolling
surplus earnings
stock securities
interests
hedgesplans¥19,839 ¥25,330 ¥ 98,266 ¥(12,689) ¥34,839—— 12,314————(7,329)—————(3,381)
—
—
—
—
—
(424)
19,839 25,330 103,251 (16,070) 34,415
—
—
9,796
—
—
—
— (7,493)————— (3,691)
—
—
0
—
0
—

¥—
—
—
—
—
—
—
—
—
—

¥2,139
—
—
—
(445)
1,693
—
—
—
—

—

—

—

—
—
—
— (11,181)¥19,839 ¥26,248 ¥105,554 ¥(19,761) ¥23,234

46
¥46

(328)
¥1,365

—

918

—

—

Total
equity¥ — ¥167,724—
12,314—(7,329)—(3,381)(57)(927)(57) 168,401
—
9,796
—
(7,493)—(3,691)—0—918(356) (11,819)¥(413) ¥156,112

Thousands of U.S. Dollars (Note 1)
Accumulated othercomprehensive income

Commonstock

Unrealized
gain on Deferred Defined
available- gains or retirement
Capital Retained Treasury
for-sale losses on
benefit Noncontrolling
surplus earnings
stock securities
interests
hedgesplans

BALANCE, MARCH 31, 2019
$182,293 $232,750 $948,735 $(147,661) $316,226
Net income attributable to owners of the parent—— 90,008——
Cash dividends, $1.78 per share—— (68,842)——
Purchase of treasury stock——— (33,920)—
Disposal of treasury stock
—
0
—
3
—
Change in the parent’s ownership interest resulting
—
8,437
—
—
—
from transactions with noncontrolling shareholders
Net change in the year———
— (102,740)
BALANCE, MARCH 31, 2020
$182,293 $241,187 $969,901 $(181,578) $213,486
See notes to consolidated financial statements.

$ —
—
—
—
—

$15,559
—
—
—
—

—

—

423
$423

Total
equity$ (529) $1,547,373—
90,008—(68,842)—(33,920)
—
3
—

8,437

(3,018) (3,268) (108,603)$12,541 $(3,797) $1,434,456

Consolidated Statement of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2020

Okumura Corporation Annual Report 2020

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2020

2019

2020

¥ 13,740¥ 16,558$ 126,251(4,148)1,430
30(3,985)1,175
7(38,110)
13,138273(20,707)(1,073)385
705(1,344)(1,401)
637(25,486)(11,746)

11,246
1,211(414)(11,381)(2,071)(1,168)(1,980)(7,360)9,198(190,271)(9,861)
3,538
6,479(12,344)(12,869)5,850(234,177)(107,926)

Investing activities:
Net decrease in time deposits
Payments for purchases of securities
Proceeds from sales of securities
Purchases of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Payments for purchases of ISHIKARI BIO ENERGY GODO KAISHA, net of cash acquired
Investment in loans receivableCollection of loans receivable
Other—net
Net cash used in investing activities

99
(73)
1,957
(11,611)
1
—
(215)
287
0
(9,555)

436
(273)
2,165
(4,516)287
268(1,749)29(11)(3,364)912(671)
17,983(106,689)
8—(1,980)2,638
3(87,796)

Financing activities:
Decrease in short-term bank loans—net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from non-recourse loans
Purchase of treasury stock
Disposal of treasury stock
Dividends paid
Proceeds from sales of investments in capital of subsidiaries and associates without change in scope of consolidation
Proceeds from share issuance to noncontrolling shareholders
Other—net
Net cash used in financing activities

(158)
—
(11)
9,221
(3,691)
0(7,473)369
447(3)(1,299)(3,754)
4,000
(20)
—
(3,381)—(7,314)——(8)(10,477)(1,453)—(100)
84,733(33,920)3(68,668)
3,390
4,107
(26)
(11,934)

24(22,576)
49,834¥ 27,258(10)(4,653)54,487¥ 49,834

219(207,437)
457,902$ 250,465

Operating activities:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Changes in assets and liabilities:
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in accumulated costs of construction projects in progress
Decrease (increase) in other inventories
Increase (decrease) in trade notes and accounts payable
Decrease in advances received on construction projects in progress
Increase in asset for retirement benefits
Other—net
Total adjustments
Net cash provided by (used in) operating activities

Foreign currency translation adjustments on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
See notes to consolidated financial statements.

13

Notes to Consolidated Financial Statements
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2020

14

1. Basis of Presentation of Consolidated Financial
Statements
The accompanying consolidated financial statements havebeen prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its
related accounting regulations and in accordance withaccounting principles generally accepted in Japan, which are
different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
In preparing these consolidated financial statements,
certain reclassifications and rearrangements have been madeto the consolidated financial statements issued domesticallyin order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications
have been made in the 2019 consolidated financial statements to conform to the classifications used in 2020.
The consolidated financial statements are stated inJapanese yen, the currency of the country in which Okumura
Corporation (the “Company”) is incorporated and operates.
The translations of Japanese yen amounts into U.S. dollar
amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥108.83 to$1, the rate of exchange at March 31, 2020. Such translations should not be construed as representations that theJapanese yen amounts could be converted into U.S. dollars atthat or any other rate.
2. Summary of Significant Accounting Policies
a. Consolidation — The consolidated financial statements
as of March 31, 2020, include the accounts of the Company
and its 3 (3 in 2019) significant subsidiaries (together, the“Group”).
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated, andthose companies over which the Group has the ability to
exercise significant influence are accounted for by the equity
method.
Investments in 10 (9 in 2019) unconsolidated subsidiaries and 5 (4 in 2019) associated companies are stated at cost.
If the equity method of accounting had been applied to theinvestments in these companies, the effect on the accompanying consolidated financial statements would not bematerial.
The excess of the cost of acquisition over the fair valueof the net assets of an acquired subsidiary at the date ofacquisition is amortized over a period of 17 years.
All significant intercompany balances and transactions
have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within theGroup is also eliminated.
b. Business Combinations — Business combinations areaccounted for using the purchase method. Acquisitionrelated costs, such as advisory fees or professional fees, areaccounted for as expenses in the periods in which the costs
are incurred. If the initial accounting for a business combination is incomplete by the end of the reporting period inwhich the business combination occurs, an acquirer shallreport in its financial statements provisional amounts for theitems for which the accounting is incomplete. During themeasurement period, which shall not exceed one year fromthe acquisition, the acquirer shall retrospectively adjust theprovisional amounts recognized at the acquisition date toreflect new information obtained about facts and circumstances that existed as of the acquisition date and that would
have affected the measurement of the amounts recognized
as of that date. Such adjustments shall be recognized as if
the accounting for the business combination had been completed at the acquisition date. The acquirer recognizes any
bargain purchase gain in profit or loss immediately on theacquisition date after reassessing and confirming that all of
the assets acquired and all of the liabilities assumed havebeen identified after a review of the procedures used in thepurchase price allocation. A parent’s ownership interest in a
subsidiary might change if the parent purchases or sells ownership interests in its subsidiary. The carrying amount of
noncontrolling interest is adjusted to reflect the change in theparent’s ownership interest in its subsidiary while the parent
retains its controlling interest in its subsidiary. Any difference
between the fair value of the consideration received or paid
and the amount by which the noncontrolling interest is
adjusted is accounted for as capital surplus as long as theparent retains control over its subsidiary.
c. Cash Equivalents — Cash equivalents are short-term
investments that are readily convertible into cash andexposed to insignificant risk of changes in value.
Cash equivalents include time deposits, certificates ofdeposit and commercial paper, all of which mature or
become due within 3 months of the date of acquisition.
d. Inventories — Construction projects in progress are stated at cost, determined by the specific identification method.
Real estate held for sale and development projects inprogress are stated at the lower of cost, determined by the
specific identification method, or net selling value, which isdefined as the selling price less additional estimated manufacturing costs and estimated direct selling expenses.
e. Marketable and Investment Securities — Marketable
and investment securities are classified and accounted for,depending on management’s intent, as follows:(1) held-to-maturity debt securities, for which there is a positive intent and ability to hold to maturity, are reported atamortized cost; and(2) available-for-sale securities, which are not classified as
held-to-maturity, are reported at fair value, with unrealized
gains and losses, net of applicable taxes, reported in a separate component of equity.
Nonmarketable available-for-sale securities are stated atcost determined by the moving-average method. For otherthan-temporary declines in fair value, investment securities
are reduced to net realizable value by a charge to income.
Investments in limited partnerships, which are consideredsecurities under Article 2, Clause 2 of the Japanese Financial
Instruments and Exchange Act, are recorded under the equity
method and based on the latest consolidated financial

Okumura Corporation Annual Report 2020statements available on the reportable date ruled by the partnership contracts.
f. Property, Plant and Equipment — Property, plant andequipment are stated at cost. Depreciation, except for leaseassets, is computed by the declining-balance method basedon the estimated useful lives of the assets, while the straightline method is applied to buildings acquired on or after April
1, 1998 and building improvements and structures acquiredon or after April 1, 2016, and lease assets. The range of useful lives is principally from 3 to 60 years for buildings andstructures, from 2 to 17 years for machinery and equipment,
and from 2 to 20 years for furniture and fixtures. Lease assets
under finance lease arrangements are depreciated using thestraight-line method over the terms of the respective leases
without any salvage value.
Accumulated depreciation totaled ¥15,527 million($142,672 thousand) and ¥15,098 million as of March 31,
2020 and 2019, respectively.
g. Long-Lived Assets — The Group reviews its long-lived
assets for impairment whenever events or changes in circumstance indicate the carrying amount of an asset or asset
group may not be recoverable. An impairment loss is recognized if the carrying amount of an asset or asset groupexceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss
would be measured as the amount by which the carrying
amount of the asset exceeds its recoverable amount, which is
the higher of the discounted cash flows from the continued
use and eventual disposition of the asset or the net selling
price at disposition.
h. Allowance for Doubtful Receivables — The allowancefor doubtful receivables is stated in amounts considered to beappropriate based on the Group’s past credit loss experienceand an evaluation of estimated losses in the receivables outstanding.
i. Allowance for Warranty Work on Construction
Projects — The allowance for warranty costs for completed
work is provided at the amount of warranty costs based on
past loss experience.
j. Allowance for Losses on Construction Contracts — An
allowance for losses on construction contracts is provided
with respect to construction projects for which eventual losses are reasonably expected and estimated.
k. Employees’ Retirement Benefits — The Company has acontributory funded pension plan covering substantially all of
its employees.
The Company accounts for the liability for retirement
benefits based on the projected benefit obligations and plan
assets at the balance sheet date. The projected benefit obligations are attributed to periods on a benefit formula basis.
Actuarial gains and losses and past service costs that are yet
to be recognized in profit or loss are recognized within equity(accumulated other comprehensive income), after adjustingfor tax effects, and are recognized in profit or loss over 10
years but no longer than the expected average remaining service period of the employees.
l. Asset Retirement Obligations — An asset retirement
obligation is recorded for a legal obligation imposed either by
law or contract that results from the acquisition, construction, development and normal operation of a tangible fixed
asset and is associated with the retirement of such tangible
fixed asset. The asset retirement obligation is recognized as
the sum of the discounted cash flows required for the future
asset retirement and is recorded in the period in which the
obligation is incurred if a reasonable estimate can be made. If
a reasonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation isincurred, the liability should be recognized when a reasonable estimate of the asset retirement obligation can be made.
Upon initial recognition of a liability for an asset retirement
obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset by theamount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over theremaining useful life of the asset. Over time, the liability is
accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original estimateof undiscounted cash flows are reflected as an adjustment tothe carrying amount of the liability and the capitalized
amount of the related asset retirement cost.
m. Construction Contracts — Construction revenue andconstruction costs are recognized by the percentage-of-completion method, if the outcome of a construction contract
can be estimated reliably. When total construction revenue,
total construction costs and the stage of completion of thecontract at the balance sheet date can be reliably measured,
the outcome of a construction contract is deemed to be estimated reliably. If the outcome of a construction contract
cannot be reliably estimated, the completed-contract methodshould be applied. When it is probable that the total construction costs will exceed total construction revenue, anestimated loss on the contract should be immediately recognized by providing for a loss on such construction contracts.
The revenues recognized by the percentage-of-completion method for the years ended March 31, 2020 and 2019were ¥211,805 million ($1,946,201 thousand) and ¥204,803
million, respectively.
n. Income Taxes — The provision for income taxes is computed based on the pretax income included in the
consolidated statement of income. The asset and liability
approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary
differences between the carrying amounts and the tax basesof assets and liabilities. Deferred taxes are measured byapplying currently enacted income tax rates to the temporary
differences.
o. Derivatives and Hedging Activities — The Group uses
derivative financial instruments to manage its exposures tofluctuations in foreign exchange and interest rates. Foreign

15

16

currency forward contracts are utilized by the Group to
reduce foreign currency exchange rate risks on foreign currency denominated trade payables for imported materials. In
addition, interest rate swaps are utilized by the Group to
reduce interest rate risks on long-term loans. The Group does
not enter into derivatives for trading or speculative purposes.
Interest rate swaps that qualify for hedge accounting
and meet specific matching criteria are not remeasured atmarket value, but the differential paid or received under theswap agreements is recognized and included in interest
expense or income.
p. Per Share Information — Basic net income per share iscomputed by dividing net income attributable to commonshareholders by the weighted-average number of commonshares outstanding for the period, retroactively adjusted forstock splits.
Diluted net income per share is not disclosed because
there are no securities with a dilutive effect upon exercise orconversion into common stock.
Cash dividends per share presented in the accompanying consolidated statement of income are dividends
applicable to the respective fiscal years, including dividends
to be paid after the end of the year.
q. Accounting Changes and Error Corrections — Under
ASBJ Statement No. 24, “Accounting Standard for
Accounting Changes and Error Corrections,” and ASBJ
Guidance No. 24, “Guidance on Accounting Standard for
Accounting Changes and Error Corrections,” accounting
treatments are required as follows:(1) Changes in Accounting Policies:
When a new accounting policy is applied following revisionof an accounting standard, the new policy is applied retrospectively unless the revised accounting standard includes
specific transitional provisions, in which case the entity shallcomply with the specific transitional provisions.
(2) Changes in Presentation:
When the presentation of financial statements is changed,
prior-period financial statements are reclassified in accordance with the new presentation.
(3) Changes in Accounting Estimates:
A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only,
and is accounted for prospectively if the change affects boththe period of the change and future periods.
(4) Corrections of Prior-Period Errors:
When an error in prior-period financial statements is discovered, those statements are restated.
r. Accounting Changes
Changes in accounting for construction costs
The Company has changed its accounting method for a partof personnel expenses of divisions in the branch offices which
had been previously recorded in “Selling, general and administrative expenses,” and included such expenses in“Construction costs” from the year ended March 31, 2020.
In response to the changes in operating environment,
the Company has changed its organizational structure fromthe beginning of the year ended March 31, 2020 with theaim of reinforcing the support system for operational divisions which operate at construction sites.
As a result of implementing reviews on the functions
and roles of divisions in the branch offices, through the process of changing the organizational structure, the Company
revised the attendance management system to clearly reflect
the relationships between the Company’s cost generating situation and construction revenue, based on the judgmentthat such initiative would contribute to information disclosure
more useful to the stakeholders.
This accounting change has been applied prospectively
from the current fiscal year onward since it is practically
impossible to follow the principle to apply retroactively
because necessary data for the prior years have not been
accumulated.
As a result of this accounting change, personnel expenses which had been previously recorded in “Selling, generaland administrative expenses” are included in “Cost of salesof completed construction contracts” in an amount of¥1,355 million ($12,452 thousand) for the year ended March
31, 2020, but the impacts on operating income, income
before income taxes, net equity per share and net income pershare are immaterial.
s. New Accounting Pronouncements
Accounting Standard for Revenue Recognition
On March 31, 2020, the ASBJ issued ASBJ Statement No. 29,“Accounting Standard for Revenue Recognition,” and ASBJ
Guidance No. 30, “Implementation Guidance on AccountingStandard for Revenue Recognition.” The core principle of thestandard and guidance is that an entity should recognize revenue to depict the transfer of promised goods or services tocustomers in an amount that reflects the consideration towhich the entity expects to be entitled in exchange for those
goods or services. An entity should recognize revenue inaccordance with that core principle by applying the following
steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performanceobligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a
performance obligation
The accounting standard and guidance are effective forfiscal years beginning on or after April 1, 2021. Earlier application is permitted for fiscal years beginning on or after April
1, 2018.
The Company expects to apply the accounting standard
and guidance for fiscal years beginning on or after April 1,
2021, and is in the process of measuring the effects of applying the accounting standard and guidance in futureapplicable periods.
Accounting Standard for Fair Value Measurement
On July 4, 2019, the ASBJ issued ASBJ Statement No. 30,“Accounting Standard for Fair Value Measurement,” ASBJ
Guidance No. 31, “Implementation Guidance on AccountingStandard for Fair Value Measurement,” ASBJ Statement No.
9, “Accounting Standard for Measurement of Inventories,”Okumura Corporation Annual Report 2020

and ASBJ Statement No. 10, “Accounting Standard for Financial
Instruments,” and on March 31, 2020, the ASBJ issued ASBJ
Guidance No. 19, “Implementation Guidance on Disclosuresabout Fair Value of Financial Instruments.”
To improve comparability with the international accounting
standards, “Accounting Standard for Fair Value Measurement”
and “Implementation Guidance on Accounting Standard for
Fair Value Measurement” (collectively “Fair Value Measurement
Accounting Standards, etc.” have been developed, and guidance and other rules have been established with regard to
the method for fair value measurement. The Fair Value
Measurement Accounting Standards, etc. will be applicableto the fair value of the following items:· Financial instruments included in “Accounting Standard
for Financial Instruments”· Inventories held for trading purposes included in“Accounting Standard for Measurement of Inventories”
In addition, “Implementation Guidance on Disclosuresabout Fair Value of Financial Instruments” has been amended
and disclosure requirements, such as a breakdown by level offair value of financial instruments, have been defined.
The Company expects to apply the accounting standards and guidance for fiscal years beginning on or after
April 1, 2021 and is in the process of measuring the effects
of applying the accounting standards and guidance in futureapplicable periods.
Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections
On March 31, 2020, the ASBJ issued ASBJ Statement No. 24,“Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections.”
It requires to present the outline of accounting principles and procedures adopted in cases where the relevant
accounting standards are unclear.
The Company will apply this accounting standard fromthe end of the fiscal year ending March 31, 2021.
Accounting Standard for Disclosure of Accounting
Estimates
On March 31, 2020, the ASBJ issued ASBJ Statement No. 31,“Accounting Standard for Disclosure of Accounting
Estimates.”
It requires to disclose information that will facilitate theunderstanding of the users of the financial statements,
regarding accounting estimates recorded in the financial
statements for the current fiscal year that have a significant
impact on the financial statements for the following fiscal
year.
The Company will apply this accounting standard fromthe end of the fiscal year ending March 31, 2021.
t. Additional Information — On April 16, 2020, the area
covered by the declaration of a state of emergency was
expanded to include the entire nation in response to the
spread of the novel coronavirus (COVID-19). In light of thesecircumstances, the Okumura Group had suspended construction work on certain projects in the designated prefectures
under specific cautions upon deliberation with the owners,

and has gradually resumed work on these projects
since May 7.
Given that there is no end in sight of the COVID-19
pandemic, the situation surrounding corporate capital investment trends and the impact of the suspension of works andother events on business performance will continue to be
uncertain. Nevertheless, upon comprehensively taking into
account the situation and the information available since thebalance sheet date, the Okumura Group has made accounting estimates including the recoverability of deferred tax
assets, on the assumption that the impact of COVID-19 on
the Group’s business performance will be limited. As a result,the impact of COVID-19 on the accounting estimates as ofMarch 31, 2020 is considered immaterial.
u. A Summary of Restated Items — The following errors
were identified subsequent to the issuance of the annual
report for the fiscal year ended March 31, 2020. The
amounts before and after restatement are as follows:
Note: 13. Derivatives
Date: March 31, 2020
Upper row: After restatement
Lower row: Before restatement
Millions of Yen

Thousands of
U.S. Dollars

Foreign currency forward contracts
Buying: U.S. Dollars
Contract amount¥47,960$440,685¥48,313$443,929

Foreign currency forward contracts
Buying: U.S. Dollars
Contract amount due after one year

¥47,960$440,685¥48,313$443,929¥19,664$180,685¥19,406$178,316¥19,664$180,685¥19,406$178,316

Items

Interest rate swaps
Floating-rate receipt, fixed-rate
payment(Hedged item: Non-recourse loans)Contract amountInterest rate swaps
Floating-rate receipt, fixed-rate
payment(Hedged item: Non-recourse loans)Contract amount due after one year17

3. Marketable and Investment Securities
Marketable and investment securities as of March 31, 2020 and 2019, consisted of the following:
Millions of Yen
2020
2019

Non-current:
Marketable equity securities
Government and corporate bonds
Non-marketable equity securities and other
Total

18

¥55,605
122
1,403¥57,130¥72,394
121
1,417¥73,932

Thousands of
U.S. Dollars
2020$510,935
1,119
12,898$524,952

The costs and aggregate fair values of marketable and investment securities at March 31, 2020 and 2019, were as follows:
Millions of Yen

March 31, 2020

Securities classified as:
Available-for-sale:
Equity securities
Held-to-maturity:
Debt securities

Cost

Unrealized
Gains

Unrealized
LossesFair Value¥23,041¥32,803¥239¥55,605

122

2

—

124

Cost

Unrealized
Gains

Unrealized
LossesFair Value¥24,401¥48,136¥143¥72,394

121

4

—

125

Cost

Unrealized
Gains

Unrealized
LossesFair Value$211,717$301,413$2,195$510,935

1,119

24

—

1,143

Millions of Yen

March 31, 2019

Securities classified as:
Available-for-sale:
Equity securities
Held-to-maturity:
Debt securities

Thousands of U.S. Dollars

March 31, 2020

Securities classified as:
Available-for-sale:
Equity securities
Held-to-maturity:
Debt securities

The information for available-for-sale securities which were sold during the years ended March 31, 2020 and 2019 is asfollows:
Millions of Yen

March 31, 2020

Available-for-sale:
Equity securities

Proceeds

Realized
Gains

Realized
Losses¥1,921¥980¥—

Proceeds

Realized
Gains

Realized
Losses¥2,105¥1,420¥—

Proceeds

Realized
Gains

Realized
Losses$17,651$9,008$—Millions of Yen

March 31, 2019

Available-for-sale:
Equity securities

Thousands of U.S. Dollars

March 31, 2020

Available-for-sale:
Equity securities

The impairment losses on available-for-sale equity securities for the year ended March 31, 2020, was ¥430 million ($3,955
thousand).
The impairment losses on available-for-sale equity securities for the year ended March 31, 2019, was ¥28 million.

Okumura Corporation Annual Report 2020

4. Inventories
Inventories at March 31, 2020 and 2019, consisted of the following:
Millions of Yen
2020
2019

¥ 5,410
593
3,102
1,163
¥10,268

Construction projects in progress
Real estate held for sale
Development projects in progress
Other
Total

¥4,337
991
2,737
1,514
¥9,579Thousands of
U.S. Dollars
2020$49,7115,444
28,504
10,686$94,345

5. Investment Property
The Group owns certain rental properties such as residential buildings, warehouses, and land in Osaka and other areas. Somerental warehouses leased to third parties, of which the Company utilizes a part, are classified as rental properties in part.
The net of rental income and operating expenses for those rental properties was ¥3,118 million ($28,651 thousand) and¥2,993 million for the years ended March 31, 2020 and 2019, respectively.
In addition, the carrying amounts, changes in such balances and market prices of such properties were as follows:
Millions of Yen
Fair Value

Carrying AmountRental properties
Rental properties in part
Total

April 1,
2019

¥32,786
1,225¥34,011

Increase/
Decrease¥2,767(31)¥2,736

March 31,2020

¥35,553
1,194¥36,747

Rental properties
Rental properties in part
Total

¥32,562
1,252¥33,814

Increase/
Decrease

¥224
(27)
¥197

March 31,2019

¥32,786
1,225¥34,011

Rental properties
Rental properties in part
Total

$301,257
11,254$312,511

Increase/
Decrease$25,430(285)$25,145

March 31,2019

¥58,263
2,071¥60,334

Thousands of U.S. Dollars
Fair Value

Carrying Amount

April 1,
2019

¥64,324
1,996¥66,320

Millions of Yen
Fair Value

Carrying Amount

April 1,
2018

March 31,2020

March 31,2020

$326,687
10,969$337,656

March 31,2020

$591,047
18,342$609,389

Notes:(1) Carrying amount recognized in the consolidated balance sheets is net of accumulated depreciation and accumulated
impairment losses, if any.
(2) Major components of increase/decrease of rental properties during the year ended March 31, 2020 are an increase due topurchase of real estate in an amount of ¥3,115 million ($28,622 thousand) and a decrease due to depreciation in an
amount of ¥349 million ($3,207 thousand).
(3) Fair value of properties as of March 31, 2020 and 2019 is measured in accordance with real-estate appraisal performed byreal-estate appraisers for primary properties. The amount measured by the Group is in accordance with its Real-EstateAppraisal Standard for other properties (including those measured using indicators).

19

6. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans at March 31, 2020 and 2019, consisted of notes to banks and bank overdrafts. The annual interest rates
applicable to the short-term bank loans ranged from 0.7% to 1.5% at March 31, 2020 and 0.7% to 3.2% at March 31, 2019.
Long-term debt at March 31, 2020 and 2019, consisted of the following:

20

Loans from banks and other financial institutions, due serially to 2037
with interest rates ranging from 0.7% to 6.0%
UnsecuredNon-recourse loans
Obligations under finance leases
Total
Less current portionLong-term debt, less current portion

Millions of Yen

Thousands of
U.S. Dollars

2020

2019

2020

¥7,1189,221
3
16,342(1,103)¥15,239¥7,129
—
4
7,133
(9)
¥7,124$65,403
84,73327
150,163(10,136)$140,027

Annual maturities of long-term debt, excluding finance leases (see Note 11), at March 31, 2020, were as follows:Year Ending March 31

Millions of Yen

Thousands of
U.S. Dollars

2021
2022
2023
2024
2025
2026 and thereafter
Total¥ 1,102
2
2,322
4,787
761
7,365
¥16,339$ 10,12518
21,33743,991
6,993
67,672$150,136

Millions of Yen

Thousands of
U.S. Dollars

2020

2019

2020

¥10,228¥—$93,986

Assets pledged as collateral for non-recourse debt

Amount of business assets of a consolidated subsidiary engaged in renewable energy
business pledged as collateral for non-recourse loans

As is customary in Japan, the Company maintains substantial deposit balances with banks with which it has borrowings. Suchdeposit balances are not legally or contractually restricted as to withdrawal.
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided
under certain circumstances if requested by such banks and that certain banks have the right to offset cash deposited withthem against any long-term or short-term debt or obligation that becomes due and, in case of default and certain other specified events, against all other debt payable to the banks. The Group has never been requested to provide any additional
collateral.

Okumura Corporation Annual Report 2020

7. Employees’ Retirement Benefits
Most of the employees of the Company are covered by a contributory trusted pension plan.
The Company has a cash balance plan (pension plan linked to the market interest rates) based on the Defined Benefit
Corporate Pension Law.
(1) The changes in defined benefit obligations for the years ended March 31, 2020 and 2019, were as follows:

Balance at beginning of year
Current service costs
Interest costs
Actuarial losses
Benefits paid
Past service costs
Balance at end of year

2020

Millions of Yen
2019

Thousands of
U.S. Dollars
2020¥20,664
1,131
103
18
(1,928)(369)¥19,619¥21,196
1,109
106
227
(1,974)—¥20,664$189,872
10,390949
171(17,716)(3,392)$180,274

2020

Millions of Yen
2019

Thousands of
U.S. Dollars
2020¥23,805
214
(290)
1,886
(1,928)¥23,687¥23,605
213
102
1,859
(1,974)¥23,805$218,731
1,969(2,664)
17,334(17,716)$217,654(2) The changes in plan assets for the years ended March 31, 2020 and 2019, were as follows:

Balance at beginning of year
Expected return on plan assets
Actuarial gains (losses)
Contributions from the employer
Benefits paid
Balance at end of year

(3) Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit
obligation and plan assets was as follows:

Defined benefit obligation
Plan assets
Total
Unfunded defined benefit obligation
Net asset arising from defined benefit obligation

Asset for retirement benefits
Net asset arising from defined benefit obligation

2020

Millions of Yen
2019

Thousands of
U.S. Dollars
2020¥19,619(23,687)(4,068)—¥(4,068)¥20,664(23,805)(3,141)—¥(3,141)$180,274(217,654)(37,380)—$(37,380)

2020

Millions of Yen
2019

Thousands of
U.S. Dollars
2020¥(4,068)¥(4,068)¥(3,141)¥(3,141)$(37,380)$(37,380)(4) The components of net periodic benefit costs for the years ended March 31, 2020 and 2019, were as follows:

Service costs
Interest costs
Expected return on plan assets
Recognized actuarial gains
Amortization of past service costs
Net periodic benefit costs

2020

Millions of Yen
2019

Thousands of
U.S. Dollars
2020¥1,131
103
(214)
(497)
(37)
¥486

¥1,109
106
(213)
(311)
—
¥691

$10,390
949(1,969)(4,566)(339)$4,46521

(5) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans
for the years ended March 31, 2020 and 2019, were as follows:
2020

Actuarial losses
Past service costs
Total

22

¥(805)
332¥(473)

Millions of Yen
2019¥(436)—¥(436)

Thousands of
U.S. Dollars
2020$(7,402)
3,053$(4,349)(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement
benefit plans as of March 31, 2020 and 2019, were as follows:
Millions of Yen
2020
2019

Unrecognized actuarial gains
Unrecognized past service costs
Total¥(1,635)(332)¥(1,967)¥(2,440)—¥(2,440)

Thousands of
U.S. Dollars
2020$(15,017)(3,053)$(18,070)(7) Plan assets
a. Components of plan assets
Plan assets as of March 31, 2020 and 2019, consisted of the following:
Debt investments
Equity investments
Life insurance general account assets
Others
Total

2020

2019

46%
8
32
14
100%

43%
11
32
14
100%

b. Method of determining the expected rate of return on plan assets
	
The expected rate of return on plan assets is determined considering allocation of plan assets which are expectedcurrently and in the future and the long-term rates of return which are expected currently and in the future from thevarious components of the plan assets.
(8) Assumptions used for the years ended March 31, 2020 and 2019, are set forth as follows:
Discount rate
Expected rate of return on plan assets

2020

2019

0.5%
0.9

0.5%
0.9

Okumura Corporation Annual Report 2020

8. Equity
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant provisions in the
Companies Act that affect financial and accounting matters are summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders’ meeting. Additionally, for companies that meet certain criteria including (1) having
a Board of Directors, (2) having independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service ofthe directors being prescribed as one year rather than the normal two-year term by its articles of incorporation, the Board of
Directors may declare dividends (except for dividends-in-kind) at any time during the fiscal year if the Company has prescribed so in its articles of incorporation. However, the Company does not meet all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (noncash assets) to shareholders subject to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles ofincorporation of the Company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders,
but the amount of net assets after dividends must be maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus), depending on the equity accountcharged upon the payment of such dividends, until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal reserve
may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional paid-in
capital, other capital surplus and retained earnings can be transferred among the accounts within equity under certain conditions upon resolution of the shareholders.
c. Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolutionof the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to theshareholders which is determined by a specific formula. Under the Companies Act, stock acquisition rights are presented as aseparate component of equity. The Companies Act also provides that companies can purchase both treasury stock acquisitionrights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or deducted
directly from stock acquisition rights.

23

9. Income Taxes
The Group is subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 30.6% for the years ended March 31, 2020 and 2019.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2020 and 2019, are as follows:

24

Deferred tax assets:
Impairment losses on securities
Write-down of inventories
Allowance for bonuses
Allowance for doubtful accounts
Accrued expenses
Tax loss carryforwards
Allowance for losses on construction contracts
Other
Less valuation allowance
Total
Deferred tax liabilities:
Net unrealized gains on available-for-sale securities
Retained earnings appropriated for special allowance
Asset for retirement benefits
Total
Net deferred tax liabilities

Millions of Yen

Thousands of
U.S. Dollars

2020

2019

2020

¥1,907
1,252
1,003
666
648
494
345
556
(4,625)2,246¥2,039
1,408
1,053
844
336
418
342
467
(4,636)2,271$17,518
11,506
9,220
6,119
5,955
4,538
3,171
5,109
(42,503)
20,633(9,334)(1,881)(1,245)(12,460)¥(10,214)(13,573)(1,748)(961)(16,282)¥(14,011)(85,764)(17,285)(11,438)(114,487)$(93,854)

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statement of income for the year ended March 31, 2020 is omitted since the difference is 5% or less of thenormal effective statutory tax rate.
A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statement of income for the year ended March 31, 2019 was as follows:
2019

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable income
Inhabitant tax per capita
Special income tax credits
Valuation allowance
Other—net
Actual effective tax rate

30.6%
0.5
(0.5)
0.8
(2.3)
(3.4)
(0.1)
25.6%

Okumura Corporation Annual Report 2020

10. Research and Development Costs
Research and development costs charged to income were ¥1,444 million ($13,267 thousand) and ¥1,337 million for the years
ended March 31, 2020 and 2019, respectively.
11. Leases(1) Finance leases
The Group leases certain machinery and equipment, office space and other assets.
Total rental expenses including lease payments under finance leases for the years ended March 31, 2020 and 2019, were
¥2 million ($19 thousand) and ¥7 million, respectively.
Obligations under finance leases at March 31, 2020 and 2019, were as follows:

Due within one year
Due after one year
Total

Millions of Yen

Thousands of
U.S. Dollars

2020

2019

2020

¥1
2
¥3

¥2
2
¥4

$11
16
$27

(2) Operating leases
Future minimum lease receivables or payments under noncancelable operating leases at March 31, 2020 and 2019, were as
follows:

As a lessor:
Due within one year
Due after one year
Total
As a lessee:
Due within one year
Due after one year
Total

Millions of Yen

Thousands of
U.S. Dollars

2020

2019

2020

¥2,391
15,975¥18,366¥2,339
13,657¥15,996$21,969
146,792$168,761

¥95
555
¥650

¥95
643
¥738

$873
5,095
$5,96825

12. Financial Instruments and Related Disclosures(1) Group policy for financial instruments
At the Group level, cash surpluses, if any, are invested in low-risk financial assets. Short-term bank loans are used to fund its
ongoing operations. Derivatives are used, not for speculative purposes, but to manage its exposure to fluctuations in foreign
currency exchange and interest rates.

26(2) Nature and extent of risks arising from financial instruments
Receivables, such as trade notes and trade accounts, are exposed to customer credit risk. Marketable and investment securities, mainly held-to-maturity securities and equity instruments of customers and suppliers of the Group, are exposed to therisk of market price fluctuations.
Payment terms of payables, such as trade notes and trade accounts, are mostly less than one year.
Bank loans are utilized to finance principally working capital and non-recourse loans are used for financing the renewable energy business of a consolidated subsidiary.
(3) Risk management for financial instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay or service debt according to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include continuously
determining customers’ circumstances from the phase of accepting orders to that of collection of the receivables, along with
monitoring of payment terms and balances of each transaction.
Market risk management (foreign exchange risk and interest rate risk)
Marketable and investment securities are managed by monitoring market values and financial position of issuers on a regularbasis. Also, the Group continuously reviews its possession of those securities, except for held-to-maturity securities.
Long-term debt denominated in foreign currencies in association with import of materials for renewable energy business is exposed to fluctuations in foreign exchange rates. The Group utilizes derivative instruments (comprehensive longterm foreign currency forward contracts) as hedging instruments to manage these market risks.
Bank loans with floating interest rates are exposed to fluctuations in interest rates. With respect to long-term bankloans and non-recourse loans, the Group utilizes derivatives (interest rate swaps) by individual contract as hedging instruments to fix the interest expenses. The hedge accounting method is described in Note 2.o.
Please see Note 13 for more details about derivatives.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity dates. The Groupmanages its liquidity risk by making the appropriate cash schedule on a monthly basis.

Okumura Corporation Annual Report 2020

(4) Fair values of financial instruments
Fair values of financial instruments are based on quoted prices in active markets. If a quoted price is not available, anotherrational valuation technique is used instead.
Financial instruments whose fair value is extremely difficult to be identified, loans associated with sub-leasing loans forproperty accumulation savings for the acquisition of a house operated by the Organization for Workers Retirement
Allowance Mutual Aid and its related sub-leasing loans are not included in the following table:(a) Fair value of financial instruments
Millions of Yen

March 31, 2020

Carrying
AmountFair Value

Unrealized
Gain/Loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables (*1)
Net
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable (*1)
Net
Total

¥29,180
121,749(121)
121,628
55,726147(0)147¥206,681¥29,180¥—121,628
55,729—3148¥206,685

1¥4

Short-term bank loans
Long-term bank loans
Non-recourse loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total
Derivatives (*2)

¥8,945
6,000
9,221
43,945
3¥68,114¥246¥8,945
6,013
9,207
43,945
3¥68,113
¥246

¥—
13
(14)
—
(0)
¥(1)
¥—
Millions of Yen

March 31, 2019

Carrying
AmountFair Value

Unrealized
Gain/Loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables (*1)
Net
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable (*1)
Net
Total

¥51,848
101,041(654)
100,387
72,514174(1)173¥224,922¥51,848¥—

100,387
72,518—4

175¥224,928

2¥6

Short-term bank loans
Long-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total
Derivatives¥8,069
7,100
43,3384¥58,511¥—¥8,069
7,112
43,3384¥58,523
¥—

¥—
12
—
(0)
¥12
¥—

27

Thousands of U.S. Dollars

March 31, 2020

28

Carrying
AmountFair Value

Unrealized
Gain/Loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables (*1)
Net
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable (*1)
Net
Total

$268,123
1,118,702(1,109)1,117,593
512,054
1,349
(1)
1,348
$1,899,118$268,123$—

1,117,593
512,078

—
24

1,359
$1,899,153

11
$35

Short-term bank loans
Long-term bank loans
Non-recourse loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total
Derivatives (*2)

$82,188
55,132
84,733
403,79527$625,875$2,264$82,188
55,25384,604
403,79525$625,865$2,264

$—
121
(129)
—
(2)
$(10)$—(*1) Amounts due from unconsolidated subsidiaries and associated companies are included in receivables—trade notes andaccounts and long-term loans receivable.
(*2) Net receivables and payables generated from derivatives are presented in net amount and net payables are shown inparentheses.
Cash and cash equivalents and time deposits
The carrying values of cash and cash equivalents and time deposits approximate fair value because of their shortmaturities.
Marketable securities and investment securities
The fair values of marketable securities and investment securities are measured at the quoted market price of thestock exchange for the equity instruments and at the quoted price obtained from the financial institution for certain
debt instruments. Fair value information for the marketable securities and the investment securities by classification
is included in Note 3.
Receivables—trade notes and accounts and long-term loans receivable
The fair values of receivables—trade notes and accounts and long-term loans receivable are measured at theamount to be received at maturity, discounted at the Group’s assumed corporate discount rate, such as the rate ofnational bonds at maturity. Also, the amounts of the allowance for doubtful receivables are deducted from the fairvalues.
Payables—trade notes and accounts and short-term bank loans
The carrying values of payables—trade notes and accounts and short-term bank loans approximate fair value
because of their short maturities.
Long-term debt—lease obligation
The fair values of long-term debt—lease obligation are determined by discounting the cash flows related to the debt
at the Group’s assumed corporate borrowing rate.
Long-term bank loans and non-recourse loans
The fair values of long-term bank loans and non-recourse loans are determined by the present value calculated bydiscounting the total amount of the principal and interest expense at the interest rate considering the remaining
maturities of the loans and credit risk of the Company. With respect to loans with floating interest rates, as theinterest rates reflect market interest rates within a short period of time, the carrying values of such loans approximate fair value and thus the fair values are stated at the carrying value.
Derivatives
Fair value information for derivatives is included in Note 13.

Okumura Corporation Annual Report 2020(b) Carrying amount of financial instruments whose fair value cannot be reliably determined

Investments in equity instruments that do not have a quoted market price in an
active market
Investments in limited partnerships

Millions of Yen

Thousands of
U.S. Dollars

2020

2019

2020

¥1,280¥1,218$11,761

423

436

3,884

(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen

March 31, 2020

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Investment securities
Available-for-sale securities with contractual maturities
Long-term loans receivable
Total

Due in 1 Yearor Less

Due after
1 Year through5 Years

Due after
5 Years through10 Years

Due after
10 Years¥29,180
101,426¥—
20,322

¥—
—

¥—
—

—
—
¥130,606

124
110¥20,556

—
36
¥36

—
20
¥20

Due in 1 Yearor Less

Due after
1 Year through5 Years

Due after
5 Years through10 Years

Due after
10 Years$268,123
931,966$—186,736

$—
—

$—
—

—
—
$1,200,089

1,140
1,006
$188,882

—
328
$328

—
183
$183

Thousands of U.S. Dollars

March 31, 2020

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Investment securities
Available-for-sale securities with contractual maturities
Long-term loans receivable
Total

Please see Note 6 for annual maturities of long-term debt and Note 11 for obligations under finance leases.

29

30

13. Derivatives (After restatement) *Please see Note 2, u. on page 17.
The Group enters into derivatives, in the normal course of business, to reduce the exposure to fluctuations in foreign exchange
and interest rates. The primary classes of derivatives used by the Group are foreign currency forward contracts, interest rate
swaps.
The Group does not hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major financial institutions, the Group does not anticipate
any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate theauthorization and credit limit amount.
Derivative transactions to which hedge accounting is not applied:
There were no derivative transactions to which hedge accounting is not applied at March 31, 2020 and 2019.
Derivative transactions to which hedge accounting is applied:
Millions of Yen

Hedged item

Contract
amountContract
amount due
after one year

Foreign currency forward contracts
Buying: U.S. Dollars

Foreign currency
denominatedforward contracts¥47,960¥47,960¥504

Interest rate swaps
Floating-rate receipt, fixed-rate payment
Interest rate swaps
Floating-rate receipt, fixed-rate payment

Non-recourse
loansLong-termbank loans

19,664

19,664

(258)

4,000

4,000

Note2

Fair value

Note2

March 31, 2020

Fair value

Millions of Yen

March 31, 2019

Hedged item

Contract
amountContract
amount due
after one year

Interest rate swaps
Floating-rate receipt, fixed-rate payment

Long-termbank loans¥4,000¥4,000Hedged item

Contract
amountContract
amount due
after one year

Fair value

Foreign currency forward contracts
Buying: U.S. Dollars

Foreign currency
denominatedforward contracts$440,685$440,685$4,634

Interest rate swaps
Floating-rate receipt, fixed-rate payment
Interest rate swaps
Floating-rate receipt, fixed-rate payment

Non-recourse
loansLong-termbank loans

180,685

180,685(2,369)36,75536,755

Note2

Thousands of U.S. Dollars

March 31, 2020

Notes:
1. Fair value is based on the price provided by the financial institutions.
2.	Interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured at market
value but the differential paid or received under the swap agreement is recognized and included in interest expense or
income. The fair value of such interest rate swaps is included in those of the hedged items (i.e., long-term bank loans) in
Note 12.

Okumura Corporation Annual Report 2020

14. Commitments and Contingent Liabilities
Land in the amount of ¥21 million ($191 thousand) is pledged for a deposit received from a lessee related to a fixed-term landleasehold at March 31, 2020. Land in the amount of ¥1,458 million ($13,399 thousand) and buildings in the amount of ¥1,076
million ($9,883 thousand) are pledged as construction assistance funds pursuant to building lease contracts at March 31, 2020.
Investment securities in the amounts of ¥122 million ($1,120 thousand), ¥16 million ($145 thousand) and ¥62 million ($565
thousand) are pledged as collateral for the guarantee against defect of the house construction, contract performance obligationof the private finance initiative (PFI) business, and the loans of an affiliate, respectively, at March 31, 2020. Time deposits in theamount of ¥635 million ($5,834 thousand) are pledged as security for performance obligation of construction contracts at
March 31, 2020.
Assets pledged as collateral for non-recourse debts are business assets of a consolidated subsidiary engaged in renewableenergy business in an amount of ¥10,228 million ($93,986 thousand) at March 31,2020.
15. Other Comprehensive Income
The components of other comprehensive income for the years ended March 31, 2020 and 2019, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

2019

2020

¥(14,870)(550)(15,420)
4,239¥(11,181)¥1,285(1,392)(107)(317)¥(424)$(136,639)(5,053)(141,692)
38,952$(102,740)

¥246
—
246
(154)
¥
92

¥—
—
—
—
¥—

$2,264—
2,264(1,418)
$846

¥24
(497)
(473)
145
¥(328)¥(11,417)¥(125)
(311)
(436)
(9)
¥(445)¥(869)$217(4,566)(4,349)1,331$(3,018)$(104,912)

2020

Unrealized gain on available-for-sale securities
Gain (loss) arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gains or losses on hedges
Gain arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Defined retirement benefit plans
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Total other comprehensive income (loss)

31

16. Subsequent Events
Appropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2020, was approved at the Company’s shareholders’ meeting
held on June 26, 2020:
Year-end cash dividends, ¥102 ($0.94) per share

32

Millions of Yen

Thousands of
U.S. Dollars¥3,858$35,454

Cancellation of treasury stock
The Company resolve to cancel treasury stock based on the provision of Article 178 of the Companies Act at the Board of
Directors’ meeting held on May 22, 2020 and implemented as follows:
Type of shares cancelled:
Common stock of the Company
Number of the shares cancelled:	6,000,000 shares (ratio against total number of issued shares before cancellation: 13.14%)
Date of cancellation:
June 5, 2020
Total number of issued shares after cancellation: 39,665,226 shares
17. Segment Information
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available and regular evaluation by
the Company’s management is being performed in order to decide how resources are allocated among the Group.
Therefore, the Group’s reportable segments consist of “Civil engineering,” “Architectural construction,” and “Investment
development.”
2. Changes in reportable segments
The Group changed its organizational structure from the beginning of the year ended March 31, 2020 as an effort toestablish a solid revenue base by entering into new businesses such as renewable energy business, while reinforcing realestate business which is one of the pillars of revenue source of the Group, in order to expand business areas advocated in
the Medium-Term Business Plan.
In conjunction with the changes in organizational structure, the Group reviewed its performance control segments
and accordingly, changed its reportable segments from “Civil engineering,” “Architectural construction,” and “Realestate” to “Civil engineering,” “Architectural construction,” and “Investment development.”“Investment development” business segment includes renewable energy business in addition to sales and leasing ofreal estate which was previously included in “Real estate” business.
Segment information for the year ended March 31, 2019 has been restated based on the reportable segments after
the changes.
3. Methods of measurement for the amounts of sales, profit, assets, liabilities and other items for each reportable segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of Significant
Accounting Policies.”Okumura Corporation Annual Report 2020

4. Information about sales, profit, assets, liabilities and other items is as follows:
Millions of Yen
2020

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Other:
Depreciation
Amortization of goodwill

Reportable segment
Investment
development
Total

Other
(Note 1)

Total

Reconciliations(Note 2)

Consolidated(Note 3)

¥221,698¥4,674¥226,372¥—¥226,372

35
4,827
2,139

35
221,733
11,085

1,947
6,621
552

1,982
228,354
11,637(1,982)(1,982)(120)—
226,372
11,517¥408
30¥1,38830¥49—¥1,437
30

¥(7)
—

¥1,430
30

Civilengineering

Architectural
construction¥100,146¥116,760¥4,792—
100,146
8,837—
116,760
109

¥474
—

¥506
—

Millions of Yen
2019

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Other:
Depreciation
Amortization of goodwill

Reportable segment
Investment
development
Total

Other
(Note 1)

Total

Reconciliations(Note 2)

Consolidated(Note 3)

¥214,694¥6,190¥220,884¥—¥220,884

35
4,708
2,939

36
214,730
13,278

621
6,811
426

657
221,541
13,704

(657)
(657)
13

—
220,884
13,717¥405
7¥1,1427¥40—¥1,1827¥(7)—¥1,175
7

Civilengineering

Architectural
construction¥91,655¥118,366¥4,673—
91,6556,203

1
118,367
4,136

¥338
—

¥399
—

Thousands of U.S. Dollars
2020

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Other:
Depreciation
Amortization of goodwill

Reportable segment
Investment
development
Total

Other
(Note 1)

Total

Reconciliations(Note 2)

Consolidated(Note 3)

$2,037,100$42,951$2,080,051$—$2,080,051

326
44,35819,651326
2,037,426
101,857

17,887
60,838
5,068

18,213
2,098,264
106,925(18,213)(18,213)(1,100)—2,080,051
105,825$3,750273$12,753
273

$449
—

$13,202273$(64)—$13,138
273

Civil
engineering

Architectural
construction$920,204$1,072,864$44,032—
920,204
81,200—1,072,864
1,006$4,355—$4,648—

Notes:
1. “Other” is a business segment which is not included in any reportable segment and includes business related to
manufacturing and sale of construction machinery, materials, and so on.
2. Reconciliations to segment profit in the amount of ¥(120) million ($(1,100) thousand) and ¥13 million for the years ended
March 31, 2020 and 2019, respectively, include eliminations of intersegment transactions.
3. The consolidated amounts of segment profit above correspond to the amounts of operating income in the consolidated
statement of income.

33

Independent Auditor‘s Report
Deloitte Touche Tohmatsu LLC
Yodoyabashi Mitsui Building
4-1-1 Imabashi, Chuo-ku
Osaka 541-0042
Japan
Tel: +81 (6) 4560 6000
Fax: +81 (6) 4560 6001
www.deloitte.com/jp/en

INDEPENDENT AUDITOR’S REPORTTo the Board of Directors of Okumura Corporation:

34

OpinionWe have audited the consolidated financial statements of Okumura Corporation and its consolidated subsidiaries (the“Group”), which comprise the consolidated balance sheet as of March 31, 2020, and the consolidated statement of income,consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement ofcash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, all expressed in Japanese yen.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as of March 31, 2020, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made in accordance with the basis stated in Note 1 to the consolidated financial statements. Such U.S.
dollar amounts are presented solely for the convenience of readers outside Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements sectionof our report. We are independent of the Group in accordance with the provisions of the Code of Professional Ethics in Japan,
and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
As discussed in Note 2.r. to the consolidated financial statements, the Group changed its method of accounting for construction costs as of April 1, 2019. Our opinion is not modified in respect of this matter.
Responsibilities of Management and Audit & Supervisory Board Members and the Audit and Supervisory
Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for such internal control as management determines is necessary toenable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally accepted in Japan and using the going concern basis of accounting unless management either intends to liquidate theGroup or to cease operations, or has no realistic alternative but to do so.
Audit & Supervisory Board members and the Audit and Supervisory Committee is responsible for overseeing the Directors’
execution of duties relating to the design and operating effectiveness of the controls over the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing
standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks. The procedures selected depend on the auditor’s judgement.

Okumura Corporation Annual Report 2020

In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on theGroup’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the consolidated financial statements are in accordance withaccounting principles generally accepted in Japan, as well as the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within theGroup to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision andperformance of the group audit. We remain solely responsible for our audit opinion.
We communicate with Audit & Supervisory Board members and the Audit and Supervisory Committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide Audit & Supervisory Board members and the Audit and Supervisory Committee with a statement that wehave complied with relevant ethical requirements regarding independence, and communicate with it all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

June 26, 2020

Member of
Deloitte Touche Tohmatsu Limited

35

Breakdown of Orders (Nonconsolidated)
Okumura Corporation
Year Ended March 31, 2020

Construction Orders Awarded

2020

Millions ofYen

36

Civil engineering:
Domestic:
Public sector
Private sector
Overseas
SubtotalArchitectural construction:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Total:
Domestic:
Public sector
Private sector
Overseas
Total

59.0

22,606
136,196—
158,802100 %

97,615
171,228(16)¥268,827

Composition
ratio

Millions of
Yen

45.0%

¥ 71,201
19,692762
91,65552.5

19,59898,769—118,367

97.5
2.5
100 %

90,799118,461762
210,0225,496¥215,518

Composition
ratio

Millions of
Yen

49.3%

¥124,807
50,761
8,234
183,80250.7

22,942
142,895—
165,837

100 %

147,749
193,656
8,234¥349,639

69,316
141,520
8,027¥218,863
2020

Millions ofYen¥ 69,240
28,552
2,354
100,146
12,258104,502—116,760
81,498133,0542,354
216,906
5,521¥222,427

Year-end Backlog¥ 86,511
72,88813,908173,307
49,056129,233—
178,289
135,567
202,121
13,908¥351,596

Composition
ratio

Thousands of
U.S. Dollars

40.9%$ 284,328
465,674
73,759823,76159.1

352,592
834,697—
1,187,289

100 %

636,920
1,300,371
73,759$2,011,050

Composition
ratio

Thousands of
U.S. Dollars

42.5%$ 636,219
262,358
21,627920,204

54.9

112,635
960,229—
1,072,864

97.4
2.6
100 %

748,854
1,222,587
21,627
1,993,068
50,733$2,043,801

Composition
ratio

Thousands of
U.S. Dollars

52.6%$ 794,917
669,743
127,790
1,592,450

47.4

450,761
1,187,477—
1,638,238

100 %

1,245,678
1,857,220
127,790$3,230,688

2020

2019

2020

Millions of
Yen

Civil engineering:
Domestic:
Public sector
Private sector
Overseas
SubtotalArchitectural construction:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Total:
Domestic:
Public sector
Private sector
Overseas
Total

41.0%

¥ 75,009
35,032(16)
110,025

38,37390,840—129,213Net Sales

Projects completed:
Civil engineering:
Domestic:
Public sector
Private sector
Overseas
SubtotalArchitectural construction:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Subtotal:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Real estate and other
Total

Millions ofYen¥ 30,943
50,6808,027
89,650

2020

2019

Composition
ratio

2020

2019

NetworkOkumura Corporation Annual Report 2020

Head and Branch Offices

Consolidated Subsidiaries

Head Office
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295

Hokuriku Office2-3-26, Higashi Ohdori, Chuo-ku,
Niigata 950-0087, Japan
TEL: +81-25-241-6160 FAX: +81-25-241-6364

Tokyo Head Office
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8103

Nagoya Branch
29-8, Takebashi-cho, Nakamura-ku,
Nagoya 453-8555, Japan
TEL: +81-52-451-1101 FAX: +81-52-452-4331

Technical Research Institute387, Ohsuna, Tsukuba 300-2612, Japan
TEL: +81-29-865-1521 FAX: +81-29-865-1522

Kansai Branch
26F ABENO HARUKAS,1-1-43 Abenosuji,
Abeno-ku, Osaka 545-6026, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6621-1921

East Japan Branch Office
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8111

Nara Office38-3, Takama-cho, Nara 630-8241, Japan
TEL: +81-742-22-5001 FAX: +81-742-27-0192

West Japan Branch Office
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692

Kobe Office2-2-16, Isobe dori, Chuo-ku,
Kobe 651-0084, Japan
TEL: +81-78-221-9355 FAX: +81-78-251-3374

West Japan Branch Office (HARUKAS Office)
26F ABENO HARUKAS,1-1-43 Abenosuji,
Abeno-ku, Osaka 545-6026, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6621-1921

Hiroshima Branch
1-7-22, Kokutaijimachi, Naka-ku,
Hiroshima 730-0042, Japan
TEL: +81-82-241-2246 FAX: +81-82-243-1416

Sapporo Branch
2-1-18, Kita Shijo Nishi,
Chuo-ku, Sapporo 060-0004, Japan
TEL: +81-11-261-9261 FAX: +81-11-251-5345

Shikoku Branch
2-3-11, Kotobuki-cho,Takamatsu 760-0023, Japan
TEL: +81-87-851-9008 FAX: +81-87-822-9286

Tohoku Branch
2-25, Tsutsumi dori, Amamiya-machi,
Aoba-ku, Sendai 981-8525, Japan
TEL: +81-22-274-1231 FAX: +81-22-273-9805

Kyushu Branch
2-19-1, Sanno, Yahata Higashi-ku,
Kitakyushu 805-8531, Japan
TEL: +81-93-671-3131 FAX: +81-93-661-1543

Tokyo Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8116

Fukuoka Office
1-13-8, Yakuin, Chuo-ku,
Fukuoka 810-0022, Japan
TEL: +81-92-741-4431 FAX: +81-92-741-4740

Higashikanto Office18-14, Shinmachi, Chuo-ku,
Chiba 260-0028, Japan
TEL: +81-43-241-2255 FAX: +81-43-244-5911

Taiwan Branch
Rm.B, 11F-3, No.51, Hengyang Rd.,
Zhongzheng Dist.,Taipei City 100004, Taiwan(R.O.C.)TEL: +886-2-2311-7080 FAX: +886-2-2311-7076

Yokohama Office
60, Nihon Ohdori, Naka-ku,
Yokohama 231-0021, Japan
TEL: +81-45-662-1361 FAX: +81-45-641-3502

Singapore Branch
175A Bencoolen Street, #05-06 Burlington
Square, Singapore 189650
TEL: +65-6884-6830 FAX: +65-6884-6831

Okumura Machinery Corporation
3-5-26, Himejima, Nishiyodogawa-ku,
Osaka 555-0033, Japan
TEL: +81-6-6472-3461 FAX: +81-6-6477-6801
Business line:Design, manufacture, sales, andrepair of construction/industrial machines anddevices
Taihei Real Estate Corporation[Head Office]5-16-7, Shiba, Minato-ku,
Tokyo 108-0014, Japan
TEL: +81-3-5439-5401 FAX: +81-3-5439-5402[Osaka Branch]
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6625-3959 FAX: +81-6-6629-3938
Business line: Real estate, land and building
management
ISHIKARI BIO ENERGY GODO KAISHA
2-763-3, Shinko, Chuo,
Ishikari 061-3242, Japan
TEL: +81-133-62-9505 FAX: +81-133-62-9506
Business line: Power generation using renewable energy and sales of electricity

37

Board of Directors

Investor Information(As of June 26, 2020)(As of March 31, 2020)

Directors

Corporate Data

President and Representative Director
Takanori Okumura
Representative Director
Atsushi Tanaka

38

Head Office	OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295
EstablishedFebruary 22, 1907

Directors
Yuichi Mizuno
Kenji Kotera
Hiromu Miyazaki
Toru Osumi
Masahiro Kaneshige

Capital¥19.8 billion

Director (Full-time Audit and Supervisory Committee Member)
Harumitsu Yoshimura
Directors (Audit and Supervisory Committee Member)
Tetsuo Kodera
Hiroyo Yashiro
Hideshi Nio
Kenji Nishihara
Note: Tetsuo Kodera, Hiroyo Yashiro, Hideshi Nio and Kenji Nishihara are outside
directors.

Group Employees
2,093

Stock Information
Stock Exchange Listings
Tokyo
Transfer Agent
Sumitomo Mitsui Trust Bank, Limited
Major Shareholders

Executive Officers
Shareholder

Executive Vice Presidents
Wataru Watanabe
Yuichi Mizuno*
Senior Managing Executive Officers
Hitoshi Miyamoto
Osamu Harada
Shunso Iijima
Managing Executive Officers
Kenji Kotera*
Atsushi Tanaka*
Hiromu Miyazaki*
Hiroyuki Hayashi
Toru Osumi*
Kazuyuki Yoshimi
Masahiro Kaneshige*
Executive Officers
Takanori Hayashi
Masaaki Iwakura
Naoki Magoori
Hirohide Taniguchi
Nobuyasu Kawai
Sawayuki Kawatani
Yoshinori Yasui
Kunitake Konishi
Nobuharu Suga
Yasuhiko Goto

Tamotsu Tsuchiya
Yoshihiko Wakimoto
Hiroki Machida
Kazuyoshi Okuma
Hiroyuki Matsushima
Akira Sasaki
Masanari Kashiki
Koichi Isogami
Yoshihiro Kadotani
Junichi Hori

Note: Those officers marked with an asterisk (*) work as directors.

Shares held Shareholding(thousands)
ratio

The Master Trust Bank ofJapan, Ltd. (Trust Account)

2,834

7.49%

Northern Trust Co. (AVFC) Re
Silchester International Investors
International Value Equity Trust

2,065

5.46

Okumura Employees’
Shareholding Association

1,621

4.29

Japan Trustee Services Bank,
Ltd. (Trust Account)

1,337

3.54

Resona Bank, Limited.

1,214

3.21

Sumitomo Realty &Development Co., Ltd.

1,210

3.20

Northern Trust Co. (AVFC) Re
U.S. Tax Exempted Pension Funds

1,070

2.83

Japan Trustee Services Bank,
Ltd. (Trust Account 9)

804

2.13

Northern Trust Co. (AVFC) Sub
A/C Non Treaty

707

1.87

Japan Trustee Services Bank,
Ltd. (Trust Account 5)

696

1.84

Note:
1. The Company holds 7,836,832 shares of treasury stock, which are excluded
from the above.
2. Shareholding ratio is computed excluding treasury stock.

OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295
http://www.okumuragumi.co.jp

Printed in Japan