2022
Kurimoto,K
urimo
motto, M
Manufacturing
anufacturin
ingg tthe
he F
Futureuture

ANNUAL REPORT
Year ended March 31, 2022

KURIMOTO, LTD.
In 1909 Kurimoto, Ltd. began operations as manufacturer of cast ironpipes for water and gas mains. With determination and foresight, thecompany soon began to diversify into other fields, serving the industrial
sector in a multitude of ways.
The major divisions of Kurimoto now provide ductile iron pipes, plant
equipment and engineering services, valves, and construction materials.
Involvement with and commitment to large-scale projects has enabled
Kurimoto to expand its areas of expertise, be it in land development,
industrial modernization, or urban renewal and construction. 12 factories
located throughout Japan comprise the company’s industrial base which,
together with 20 subsidiaries and 1 associate, make up the Kurimoto group
employing about 2,100 people. Today, Kurimoto plays a vital role insupplying basic industrial products, machines, and services domesticallyand abroad.

Contents
Financial Highlights
Message from the President
Business Operations

1
2
3

Financial Section

4

Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows

Notes to Financial Statements
Independent Auditor’s Report
Corporate Information

9
20
24

Financial Highlights

Millions of yen (thousands of U.S. dollars) except per 100 share information

2022

2021

2020

2019

2018

2022

¥ 105,954¥ 116,596¥ 109,904¥ 108,786¥ 107,122$ 865,715

2,917

3,174

2,773

2,075

2,400

23,839Total assets

139,722

134,477

134,216

136,469

135,122

1,141,617

Total shareholders’ equity(including Accumulated other comprehensive income)¥ 66,342¥ 63,966¥ 57,892¥ 58,070¥ 58,351$ 542,055

Profit (loss) attributable to owners of parent

23,91726,042

22,283

16,565

19,167

195

Cash dividends

7,000

7,000

6,000

6,000

6,000

57

Years ended March 31

Net sales
Profit (loss) attributable to owners of parent

Per 100 shares of common stock

Note: The U.S. dollar amounts are calculated at the exchange rate of ¥122.39 to $1, the rate prevailing on March 31, 2022.

160,000

Net Sales (¥ million)

140,000
120,000

107,122

108,786

109,904

’18

’19

’20

116,596

105,954

100,000
80,000
0

’21

’22

3,174

2,917

’21

’22

Profit (loss) attributable to owners of parent (¥ million)
5,000
4,000
3,000

2,400

2,000

2,773
2,075

1,000
0

400

’18

’19

Net Income per Share of Common Stock (¥)

300
200

’20

191.67222.83260.42239.17165.65100
066,000

’18

’19

’20

’21

Shareholder’s Equity (¥ million)’22

66,342
63,96664,00062,00060,00058,00058,351

58,070’18’1957,89256,00054,00052,00050,000
0

’20

1

’21

’22

Message from the President

Together as a team, we will further
cultivate a culture of bravely taking onchallenges.
Thank you for your ongoing supportof Kurimoto’s business activities.
Kurimoto was founded in February1909 to manufacture cast-iron pipe forwater supply based on our iron foundryexpertise. For 113 years now we havebeen committed to bringing people
greater comfort and safety by improvingsocial infrastructure, lifeline systems,
and industrial machinery. Thanks go out
to every one of the group’s stakeholders
for your ongoing support.
Looking at the business environment
today, I would have to say that things are
becoming increasingly turbulent. Alreadymore than two years have passed since
COVID-19 first began spreading aroundthe world. The virus has continued tomutate and the pandemic seems to keep
repeating a cycle of subsiding andspreading again. We don’t know when it
will subside for good. Meanwhile, since
Russia’s invasion of Ukraine, trends inthe global economy have become
increasingly difficult to foresee. Prices arerising in crude oil, natural gas, and othercommodities, with attendant ill effects
on the global economy.

greater ability to tolerate uncertainty. It
will be particularly important tostrengthen the sustainability of the
supply chain to avoid the risk offragmentation. At the same time,changes in the social environment
brought on by COVID-19 and othercircumstances present an opportunity toresolve internal issues. That is why in thecurrent three-year mid-term businessplan we have outlined a management
policy that will allow us to adapt to the
new normal through business
innovation and build systems thatincorporate a long-term perspective on
business operations. The policy will help
us shore up the foundations of ourexisting businesses and promote ahuman resource strategy to accelerate
growth in new businesses. It is also
aimed at strengthening our management
based on corporate social responsibility,
which includes working toward theSDGs and improving environmental,social, and governance measures, aiming
for sustainable corporate growth andimproved profitability.

Under these circumstances, in fiscal
year 2022, the first year of our current
three-year mid-term business plan, sales
did not reach initial forecasts, but we didachieve our initial target in profits. Ourrevenues and profits decreased from theprevious year, and an uncertain businessenvironment in some segments has
contributed to tough conditions anddisappointing results in some divisions.

With the restructuring of the Tokyo
Stock Exchange on April 4, 2022,
Kurimoto became listed on the Prime
Market. Such a listing requires acompany to direct its efforts towardsustainable growth and demands areinforced governance system, moresocial contribution, and greater
consideration for the environment. So asa group, we will rally around the idea ofTeam Kurimoto, and based on ourmanagement philosophy we will
cultivate an organizational culture ofbravely taking on challenges, andprovide optimal systems to ourcustomers across products, operations,and services “with calm and resolve.”

In such times, when it is difficult topredict how things will go, achieving
steady, sustainable growth will require a

Without fearing change, we will aim
to create a better future for people andsociety. This has been our mission and2will continue to guide the KurimotoGroup going forward.
The fact that we have been able torun our business successfully for such along time is due in no small part to theguidance and encouragement of our
stakeholders.
I am extremely grateful and hope you
will continue to lend us your warm
support.

Kazutaka Kikumoto
President

June 2022

Kazutaka Kikumoto
President

Business Operations

Corporate group sales by business area (in millions of yen)

Machinery system business20.9 %
126th
accounting period
105,954

Lifeline business54.2 %

Industrial materials business24.9 %

Lifeline businessIndustrial materials business

Sales of the lifeline business amounted to 57,478 million yen, an increase of
1,292 million yen over the previous consolidated fiscal year. Increased
shipment volume of ductile iron pipes, or our key products in the Pipe Systems
Division, and other products was the primary factor of the increase. While saleposted growth, operating income of this business fell to 3,016 million yen, adecrease of 71 million yen over the previous consolidated fiscal year, adversely
affected mainly by the soaring raw material prices, despite our efforts inimproving various costs.

Sales of the industrial materials business were 26,381 million yen, a decrease of
2,844 million yen over the previous consolidated fiscal year. A substantial sales
decline recorded by subsidiaries of the Construction Materials Division due toa smaller number of construction projects for the current fiscal year and adecrease in shipment, especially for the electric power industry, recorded by
the Plastic Products Division were the main factors of the decrease in sales.
Operating income of this business came to 1,040 million yen, a decrease of 33
million yen over the previous consolidated fiscal year. Our efforts to improvevarious costs could not offset the sales decline posted by the Construction
Materials Division and the Plastic Products Division, and the significant
impact of the soaring raw material prices.

Machinery system business
The machinery system business saw a 9,089 million yen decrease in sales overthe previous consolidated fiscal year to 22,095 million yen, due primarily to asignificant drop in sales of the Plant Engineering and Machinery Division
resulting from a decrease in shipment for large projects.
Despite the significant sales decline in the Plant Engineering and Machinery
Division as stated above, decrease in operating income has been declined
because unprofitable plant projects decreased. As a result, operating income ofthis business came to 437 million yen, a decrease of 173 million yen over theprevious consolidated fiscal year.

3

Financial Section

Consolidated Balance Sheets
March 31, 2022 and 2021

Thousandsof U.S. dollars(Note 2)Millions of yen

Assets

2022

2022

2021

Current assets
Cash and deposits
Notes and accounts receivable-trade
Notes and accounts receivable-trade and contract assets¥ 21,358¥ 20,418$ 174,510—

43,155—44,436—

363,074

Notes and accounts receivable-trade— unconsolidated subsidiaries and affiliates

10

47

82

Merchandise and finished goods

9,736

10,19479,551Work in process

8,575

4,965

70,070Raw materials and supplies

3,650

2,733

29,829Prepaid expenses and other current assets

1,507

1,234

12,319

(126)

(115)

(1,034)

89,14982,634

728,404

Buildings and structures

28,53928,000233,184

Machinery, equipment and vehicles

56,93055,984465,158

Tools, furniture and fixtures

10,46910,33785,539Land

Allowance for doubtful accounts
Total current assets

Property, plant and equipment

13,787

13,808112,653

Lease assets

299

403

2,450

Construction in progress

678

1,054

5,543

Accumulated depreciation(78,179)(76,702)(638,776)

Total property, plant and equipment

32,52532,886

265,752

11,333

11,47592,601— unconsolidated subsidiaries and affiliates

192

200

1,574

Long-term loans — other
Other investments

12

12

101

1,458

1,378

11,919

(83)

(54)

(684)

3,337

4,041

27,272

1,796

1,902

14,675Investments and other assets
Investment securities — other
Investment securities

Allowance for doubtful accounts
Deferred tax assets (Note 9)Long-term prepaid expenses and otherTotal investments and other assets
Total assets

4

18,047

18,956

147,460¥139,722¥ 134,477$ 1,141,617

Financial Section

Thousandsof U.S. dollars(Note 2)Millions of yen

Liabilities and Shareholders’ Equity

2022

2021

2022

¥ 28,602¥ 27,074$

59
22,250
1,222
33
426
3,736
2,628
403
2,484
61,84650
20,320
668
34
618
3,891
1,281
392
3,210
57,543483
181,795
9,986
270
3,481
30,52721,4803,295
20,302505,319

8,830
714
68
20
319
302
10,256
72,102

9,305
1,736
89
20
318
351
11,822
69,366

72,154
5,839
560
167
2,608
2,472
83,802
589,122

31,186

31,186

254,809

6,873
27,029(1,802)

6,873
25,028(1,817)56,162
220,850(14,727)

63,287

61,271

517,095

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

3,256
1
44

26,609
9
367

(247)

3,306
—
(52)
(558)

Total accumulated other comprehensive income

3,054

2,695

24,960

1,277

1,144

10,44067,61965,111

552,495¥139,722¥ 134,477$ 1,141,617

Current liabilities
Notes and accounts payable-trade
Notes and accounts payable-trade—— unconsolidated subsidiaries and affiliates
Short-term loans payable (Note 4)
Current portion of long-term debt (Note 4)
Lease obligations
Income taxes payable
Accrued liabilities
Advances received
Employees’ savings deposits
Other current liabilities
Total current liabilities
Long-term liabilities
Net defined benefit liability (Note 5)Long-term debt (Note 4)
Lease obligations
Provision for environmental measures
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net assets
Shareholders’ equity
Capital stock
Authorized:
Issued:233,696

39,376,600 shares
13,098,490 shares in 2021
13,098,490 shares in 2022

Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

5(2,025)Financial Section

Consolidated Statements of Income
Years ended March 31, 2022 and 2021

Thousandsof U.S. dollars(Note 2)Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income and (expenses)
Interest and dividend income
Interest expense
Gain on sales of investment securities
Loss on valuation of investment securities
Loss on sales of investment securities
Loss on valuation of stocks of subsidiaries and affiliates
Provision for loss on litigation
Reversal of provision for loss on disaster
Impairment loss
Loss on disaster
Arrangement fee
Others, net
Profit before income taxes
Income taxes (Note 9)
Current
Deferred
Total
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

2022

2021

2022

¥ 105,954
80,61525,33821,1664,172¥ 116,596
90,58226,014
21,341
4,673$ 865,715
658,681
207,033
172,945
34,088

369
(153)
23
(5)
(6)
(8)
(238)
247
(41)
—
—
22
4,381

332
(150)
1
(6)
—
—
—
—
—
(0)
(153)
(157)
4,538

3,019
(1,256)
194
(44)
(52)
(66)
(1,944)
2,022
(342)
—
—
183
35,802

727
577
1,304
3,077
159
¥ 2,917

1,174
13
1,188
3,350
176
¥ 3,174

5,941
4,719
10,66025,141
1,301
23,839U.S. dollars(Note 2)yen

Net income per 100 shares:
Basic
DilutedCash dividends per 100 shares

$

2022

2021

2022

¥ 23,917
23,9177,000¥$

26,042
26,042
7,000

195
195
57

Consolidated Statements of Comprehensive Income
Years ended March 31, 2022 and 2021

Thousandsof U.S. dollars(Note 2)Millions of yen

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of the parent
Profit (loss) attributable to non-controlling interests
6

2022

2021

2022

¥ 3,077¥ 3,350

$

(49)
1
97
311
359
3,436
3,277
159

2,535
—
(47)
1,131
3,619
6,970
6,793
176

25,141
(406)
9
792
2,543
2,939
28,08026,776
1,303

Financial Section

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2022 and 2021

Millions of yen

Balance as of March 31, 2020

Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Balance as of March 31, 2021

Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Balance as of March 31, 2022

Valuation
Foreign Remeasurements Nondifference on Deferred currency
net
gains
available- (losses)of defined controlling Total
assetson translation benefit
for-saleplansinterests
hedges adjustment
securities

Capitalstock

CapitalsurplusRetained Treasury
earnings
shares¥ 31,186¥ 6,873¥ 22,587 ¥ (1,831) ¥

—
—
—
—

—
—
—
—

(733)
3,174
—
—

—

—

—

¥ 31,186¥ 6,873¥ 25,028

—
—
—
—

—
—
—
—

(916)
2,917
—
—

—
—
(0)
15

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

(916)
2,917
(0)
15

—

—

—

—

(49)

1

97

310

133

492

¥ 31,186¥ 6,873¥ 27,029 ¥ (1,802) ¥ 3,256

¥ 1

¥ 44

¥ (247)¥ (4) ¥ (1,690)

771

¥ —

—
—
(0)
14

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

(733)
3,174
(0)
14

—

2,535

—

(47)

1,131

160

3,779

(¥1,817) ¥ 3,306¥ —¥ 984 ¥ 58,876¥ (52) ¥ (558) ¥ 1,144 ¥ 65,111¥ 1,277 ¥ 67,619

Thousands of U.S. dollars (Note 2)

Capitalstock
Balance as of March 31, 2021

Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Balance as of March 31, 2022

CapitalsurplusRetained Treasury
earnings
sharesValuation
Foreign Remeasurements Nondifference on Deferred currency
net
gains
available- (losses) on translation of defined controlling Total
assetsfor-salehedges adjustment benefit plans interests
securities$ 254,809 $ 56,162 $ 204,498 $(14,848) $ 27,014$ —$ (425) $ (4,566) $ 9,353 $ 531,998

—
—
—
—

—
—
—
—

(7,487)
23,839
—
—

—
—
(1)
122

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

(7,487)
23,839
(1)
122

—

—

—

—

(405)

9

792

2,540

1,086

4,023

$ 254,809 $ 56,162 $220,850 $(14,727) $ 26,609$ 9

7$ 367 $ (2,025) $ 10,440 $ 552,495

Financial Section

Consolidated Statements of Cash Flows
Years ended March 31, 2022 and 2021

Thousandsof U.S. dollars(Note 2)Millions of yen

2022

2021

¥ 4,381
2,711
41
88
1,711
(4,057)
(369)
153
(17)
13
(1)
42
40
(26)
(1,118)¥ 4,5382,520—(3,942)
(867)
4,017
(332)
150
6
6
37
62
(146)
441
926

$ 35,802
22,152342
719
13,982(33,149)(3,019)
1,256
(142)
111
(14)
344
328
(218)
(9,135)Sub-totalInterest and dividends income received
Interest expenses paid
Income taxes paid

3,593
338
(153)
(964)

7,419
329
(150)
(1,691)

29,3592,768(1,258)(7,880)Net cash provided by (used in) operating activities

2,813

5,907

22,989Net cash provided by (used in) investing activities
Purchase of short-term and long-term investment securities
Proceeds from sales of short-term and long-term investment securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of stocks of subsidiaries and affiliates
Collection of loans receivable
Other, net(0)93(2,488)
4
—
0
(65)

(263)
525
(4,270)
26
(20)
21
(54)

(3)
760
(20,328)
38
—
3
(533)

Net cash provided by (used in) investing activities(2,455)(4,034)(20,063)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares

1,930
(36)
200
(668)
(915)
(26)
(0)

(350)
(39)
1,700
(2,375)
(733)
(16)
(0)

15,769(295)
1,634(5,465)(7,481)
(217)
(1)

482

(1,815)

3,942

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in notes and accounts payable-trade
Decrease (increase) in inventories
Interest and dividends income
Interest expenses
Loss (gain) on sales of short-term and long-term investment securities
Loss (gain) on valuation of short-term and long-term investment securities
Loss (gain) on sales of property, plant and equipment and intangible assets
Loss on retirement of property, plant and equipment and intangible assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Other, net

Net cash provided by (used in) financing activities

2022

99

(28)

809

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year939
20,35928
20,330

7,678
166,348

Cash and Cash Equivalents at End of Year¥ 21,299¥ 20,359$ 174,027¥ 20,418(58)¥ 20,359$ 174,510(483)$ 174,027

Effect of Exchange Rate Changes on Cash and Cash Equivalents

Note: Relation between the year-end balance of cash and cash equivalents and the items on the consolidated balance sheet:¥ 21,358(59)¥ 21,299

Cash and deposits
Time deposits due over three months
Cash and cash equivalents

8Notes to Financial Statements

Note 1. Significant Accounting Policies

securities into securities for buying & selling, stocks of their affiliates,and other securities.
Securities for buying & selling have been evaluated at market
value.
The stocks of their affiliates have been evaluated at book value.
Those other securities that have market value have been
evaluated at market value, and the unrealized profit or loss has beenreported as an independent item in Part of Capital after taxation.
Those other securities that do not have market value have been
evaluated at book value.
For the cases in which the value of those other securities withmarket value fell sharply, the relevant securities have been placed in
the balance sheet according to their market value, and the difference
between the book value and the market value has been recognized asa loss for the fiscal year. For the cases in which the net asset value of
those other securities without market value fell markedly, therelevant securities have been written down to the net asset value,
and the corresponding difference has been recognized as a loss.
Profit or loss in selling securities has been calculated based upon
the selling price by the moving average method, and included in
profit or loss.

Basis of Presenting Consolidated Financial Statements
Kurimoto, Ltd. (hereinafter referred to as “This Company”) and its
consolidated subsidiaries have presented their official accounting
records in the currency of yen and in accordance with theCommercial Code and the regulations of Securities & Exchange
Law, and in conformity with the generally accepted accounting
principles & practices of Japan (hereinafter called “Japan
Accounting Standard”).
Some part of the Japan Accounting Standard, in its method of
application and disclosure requirements, is different from theInternational Accounting Standard and some other countries’
accounting standards. Accordingly, the consolidated financial
statements attached hereto are prepared for readers who are wellacquainted with the Japan Accounting Standard.
The consolidated financial statements attached hereto have been
prepared in accordance with the Japan Accounting Standard
pursuant to the Securities & Exchange Law. Such consolidated
financial statements of This Company as were submitted to our
district’s Local Finance Bureau of the Ministry of Finance havebeen re-edited and translated into English.

Inventories
Inventories are principally stated at the cost determined by theaverage method or the specific cost method.

Consolidation Policies
These consolidated financial statements include the accounting
records of This Company and the companies over which This
Company either holds majority voting power or for which certain
other conditions verify This Company’s control over them. The
investment account of This Company in non-consolidated
subsidiaries or affiliates which are largely influenced by This
Company in their operational and financial policies have been
computed on the basis of equity-method investment balance.
The important credit & liability, trade, and unrealized profit
between and among consolidated companies have been eliminatedon a consolidation basis.

Fixed Assets (excluding lease assets)
Fixed assets are stated by book value. Method of depreciation ismainly the straight-line method by estimated useful life. Main
estimated useful lives are as follows.
Building and construction: 2 to 60 years.
Machinery and automotive equipment: 2 to 22 years.
The cost of repair or small amount reformation is expensed as
incurred, but any large scale repair or reformation is classified asassets.
Liability for Retirement Benefits
1. The Period Attribution Method for Projected Retirement
Benefits
As for the calculation of retirement benefits, the benefit formulabasis is applied for the attribution of projected retirement benefits
to the period up to the end of the fiscal year under review.
2. Mathematical Calculation for the Amortization of Actuarial
Differences
Actuarial differences are amortized by the straight-line method overa period within the average remaining service years for employees(mainly 10 years) at the time of recognition, and allocatedproportionately from the fiscal year following the respective fiscal
year of recognition.

Translation of Foreign Currencies
Monetary assets and liabilities denominated in foreign currencies
have been translated into Japanese yen at the rate as of the date ofeach balance sheet presentation, and their exchange profit or loss
has been appropriated as their profit or loss in the current period.
The balance sheets of consolidated overseas subsidiaries aretranslated into Japanese yen at the year-end rates except forshareholders’ equity accounts, which are translated at historicalrates. Income statements of consolidated overseas subsidiaries aretranslated at the average rates during the year. Translation
adjustments resulting from translating financial statements whose
accounts are denominated in foreign currencies are not included in
the determination of net income but are reported as “Foreign
currency translation adjustments” in a component of net assets andnon-controlling interests.

Research and Development and Computer Software
Research & development expenses have been charged as incurred.
Software expenses have been included mainly in long-term
prepaid expenses and other expenses, and depreciated by astraight-line method chiefly for five-year service life.

A Range of Funds in a Statement of Consolidated Cash Flow
A fund in a statement of consolidated cash flow (cash and its
equivalent) consists of cash in hand, ordinary deposits, andshort-term investments which have a term of redemption within
three months, carry low risk for value fluctuation and can bewithdrawn easily.

Income Taxes
As to the temporary difference in the book value of assets andliabilities for the purpose of financial accounting and taxation, thenet worth method has been used to figure deferred tax assets andliabilities.

Marketable and Investment Securities
This Company & its consolidated subsidiaries have specified the
purposes of their respective securities holdings, and classified those9Notes to Financial Statements

Per Share Information
The computation of basic net income per share is based on theweighted average number of shares of common stock outstanding
during each period. The average number of shares used in thecomputation was 12,199,013 and 12,189,514 for the years ended
March 31, 2022 and 2021, respectively.

The application of the Accounting Standard for Revenue Recognition
and relevant ASBJ regulations is subject to the transitional treatment
provided for in the proviso to paragraph 84 of the Accounting Standard
for Revenue Recognition. The cumulative effect of retroactively applying
a new accounting policy prior to the beginning of the current
consolidated fiscal year is added to or subtracted from retained earnings
at the beginning of the current consolidated fiscal year and the new
accounting policy is applied from the balance at the beginning of thecurrent consolidated fiscal year. However in accordance with paragraph
86 of the Accounting Standard for Revenue Recognition, the new
accounting policy has not been applied to the contracts almost all therevenues of which had been recognized in accordance with the previous
accounting treatment before the beginning of the current fiscal year.
In addition, “Notes and accounts receivable-trade,” which was statedin “Current assets” in the Balance Sheet for the previous fiscal year, isseparately stated as “Notes and accounts receivable-trade and Contract
assets” starting from the current fiscal year. In accordance with thetransitional treatment provided for in paragraph 89-2 of the
Accounting Standard for Revenue Recognition, figures for the previous
fiscal years are not reclassified from Revenue Recognition.
As a result, compared to before the application of the AccountingStandard for Revenue Recognition and relevant ASBJ regulations, on theStatement of Income for the current fiscal year, net sales decreased by
1,425 million yen, cost of sales decreased by 1,240 million yen, andselling, general, and administrative expenses decreased by 184 million yen.
However, this does not affect operating income, ordinary income, or
profit before income taxes. In addition, there is no impact on the
beginning balance of retained earnings for the current fiscal year.
There is no impact on the Balance Sheet, the Statement of Cash
Flows, the Statement of Changes in Net Assets, or Per ShareInformation for the current fiscal year.
In accordance with the transitional treatment provided for inparagraph 89-3 of the Accounting Standard for Revenue Recognition,
figures for the previous fiscal years are omitted from Revenue
Recognition.

Recognition of revenue and cost of sales
The Group has adopted the “Accounting Standard for Revenue
Recognition” and other standards and recognizes revenue at thetime when control of the promised goods or services is transferredto the customer at the amount expected to be received from thecustomer in exchange for those goods or services.
Consolidated Taxation System
We have adopted a consolidated taxation system.
Marketable and Investments Securities
Other marketable securities as of March 31, 2022 are as follows:
Millions of yen

2022

Other securities•• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •Carrying
amounts

Marketvalue

Unrealized
gain (loss)¥ 6,359¥ 10,912¥ 4,552

Thousands of U.S. dollars

2022

Other securities•• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •Carrying
amounts

Marketvalue

Unrealized
gain (loss)$ 51,959$ 89,158$ 37,199(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
The “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant ASBJ regulations
are being applied from the beginning of the current consolidated
fiscal year. Accordingly, revenue is recognized at the time whencontrol of the promised goods or services is transferred to thecustomer at the amount expected to be received from the customer
in exchange for those promised goods or services.
As a result, regarding transactions in which the Group is deemed
to be acting as an agent in providing customers with goods orservices, revenue was previously recognized at the gross amountreceived from the customer. However, it is recognized at the net
amount after deducting the amount paid to the supplier from theamount received from the customer.
The consideration that includes a variable amount, such as salescommission or sales incentive, in some transactions was previously
recognized as selling, general, and administrative expenses but isdeducted from net sales.

(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value
Measurement (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ
regulations from the beginning of the current consolidated fiscal year
and has decided to apply new accounting policies prescribed in the Fair
Value Measurement Accounting Standard and related measures in the
future in accordance with the transitional handling stipulated in Section
19 of the Accounting Standard For Fair Value Measurement andSection 44-2 of the Accounting Standard for Financial Instruments(ASBJ Statement No. 10 issued on July 4, 2019). Application of thisstandard has no impact on the consolidated financial statements.
Notes to Financial instruments list matters regarding a breakdown ateach input level for the fair value of financial instruments. However, in
accordance with Item 7-4 of ASBJ Guidance No. 19, “Implementation
Guidance on Disclosures about Fair Value of Financial Instruments,”
these notes are omitted for the previous fiscal year.

10Notes to Financial Statements

Note 2. U.S. Dollar Amounts(2) Information on the content of important accounting
estimates for recognized items
This Company and some of its subsidiaries have adopted a defined
benefit plan as an employee retirement benefit program. Liability
for retirement benefits and retirement benefit costs related toretirement benefit obligations are calculated based on thepreconditions used in actuarial calculations.
The preconditions used in actuarial calculations include many
estimates such as discount rates and long-term expected rate of
return on pension assets. If such estimate needs to be revised due tochanges in uncertain future economic conditions and other reasons,it may have a significant impact on the amount of liability for
retirement benefits and retirement benefit costs related toretirement benefit obligations to be recognized in the consolidated
financial statements for the next consolidated fiscal year onward.

The dollar amounts are included solely for convenience: they should
not be construed as exact translations of current yen figures, nor are
they the dollar amounts into which yen amounts have been or could
be converted.
The exchange rate of US$1=¥122.39 as of March 31, 2022, hasbeen used for the purpose of presenting the dollar amounts in theaccompanying consolidated financial statements.

Note 3. Significant
Accounting EstimatesXXXXXXXXXX
The
dollar aXXXXXXXXXXXXXXXX
1.
Recoverabilityof deferred tax assets(1) Amount recorded in the consolidated financial statements for thecurrent consolidated fiscal year
Millions of yen

Deferred tax assets

3. Revenue recognition for constructions contracts(1) Amount recorded in the consolidated financial statements for thecurrent consolidated fiscal year

Thousandsof U.S. dollars

2022

2022

¥ 3,337$ 27,272

Millions of yen

Net sales(2) Information on the content of important accounting estimatesfor recognized items
Regarding the evaluation of the recoverability of deferred tax assets,
future taxable income is reasonably estimated, and valuation
allowance is recorded for any amount which is not deemed
recoverable.
If such estimate needs to be revised due to changes in uncertain
future economic conditions and other reasons, it may have asignificant impact on the amounts of deferred tax assets and income
taxes-deferred to be recognized in the consolidated financial
statements for the next consolidated fiscal year.

(1) Amount recorded in the consolidated financial statements for thecurrent consolidated fiscal year

Net defined benefit liability

Thousandsof U.S. dollars

2022

2022

¥ 8,830$ 72,150

2022

2022

¥ 7,769$ 63,481(2) Information on the content of important accounting estimatesfor recognized items
The percentage-of-completion method is applied to construction works
for which confirming the degree of completion until the end of thecurrent consolidated fiscal year is deemed certain (estimation of the
progress rate of construction work is based on the proportion of cost
incurred).
In applying the percentage-of-completion method, it is a prerequisitethat the total construction cost and progress rate, which are the basis forrevenue recognition, can be reasonably estimated. If such estimate needs
to be revised due to changes in uncertain future economic conditions
and other reasons, it may have a significant impact on the amount ofrevenue to be recognized in the consolidated financial statements forthe next consolidated fiscal year onward.

2. Calculation of retirement benefit obligations

Millions of yen

Thousandsof U.S. dollars

11Notes to Financial Statements

Note 4. Short-term Bank Loans and Long-term Debt

(2) Movements in plan assets except plan applied simplified method

The annual average interest rates applicable to short-term bankloans at March 31, 2022 and 2021 are 0.5% and 0.5%, respectively.
Short-term bank loans and long-term debt at March 31 wascomprised of the following:

2022

2021

2022

1,936
1,936
1,222
¥ 714

2,405
2,405
668
¥ 1,736

15,826
15,826
9,986$ 5,839

Loans from financial institution,due 2022 to 2024 withinterest rates between
0.30% and 0.48%
Sub-total
Less current portion of loans•• • • • • • • • • • • • • • • • • • • • • • • • • • ••• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • •2022
Balance at beginning of the year
Expected return on plan assets
Actuarial gain (loss)
Benefits paid
Balance at end of the year

Thousandsof U.S. dollars

Millions of yen

2022
2023
2024
2025

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

2021

2022

—
1,222
646
68
¥ 1,936

668
1,156
580
—
¥ 2,405

—
9,986
5,284
555
$ 15,826

Buildings and structures
Machinery, equipment
Land

2022

¥ 3,168
914
771¥ 4,854$ 25,884
7,475
6,307
$ 39,668

Thousandsof U.S. dollars

¥

696
125
(71)
(35)
714

¥

2022

2021

623 $
121
(27)
(20)
696 $

¥

¥

5,689
1,025
(586)
(292)
5,835

Thousandsof U.S. dollars

Millions of yen

2022

2021

Funded retirement benefit obligations
Plan assets¥ 13,365(5,036)8,329¥ 13,540 $ 109,207(4,712)(41,154)
8,827
68,052

Unfunded retirement benefit obligations
Total net liability (asset) for
retirement benefits at March 31

501

478

4,097

8,830

9,305

72,150

8,830
—

9,305
—

72,150—¥ 8,830¥ 9,305$ 72,150

Liability for retirement benefits
Asset for retirement benefits
Total net liability (asset) for retirement
benefits at end of the year2022(5) Retirement benefit costs

Note 5. Retirement Benefits
The following are matters concerning the defined benefit plan as ofMarch 31, 2022 and 2021, respectively.

Millions of yen

2022¥ 12,990
634
17
(121)
(718)
¥ 12,801

2021

Thousandsof U.S. dollars

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Net actuarial loss amortization
Retirement benefit costs calculatedby the simplified method
Total retirement benefit costs forthe fiscal year

(1) Movements in retirement benefit obligations except plan applied
simplified method

Balance at beginning of the year
Service cost
Interest cost
Actuarial loss (gain)
Benefits paid
Balance at end of the year¥

35,794
1,259
1,299
(73)
38,279(4) Reconciliation from retirement benefit obligations and plan
assets to liability (asset) for retirement benefits including plan
applied simplified method

Thousandsof U.S. dollars

2022

¥

3,344 $
74975
(14)
4,380 $¥

2022
Balance at beginning of the year
Retirement benefit costs
Benefits paid
Contributions paid by the employer
Balance at end of the year

As is customary in Japan, short-term and long-term bank loans are
made under general agreements which provide that security andguarantees for future and present indebtedness will be given uponrequest of the bank, and that the bank shall have the right, as theobligations become due, or in the event of their default, to offset cash
deposits against such obligations due to the bank.
As of March 31, 2022, assets pledged as collateral for short-termbank loans were as follows:
Millions of yen

4,380
154
159
(9)
4,685

Millions of yen

Thousandsof U.S. dollars

2022

¥

2022

2021

(3) Movements in net liability for retirement benefits based on thesimplified method

The aggregate annual maturities of long-term financial debt at
March 31, 2022 and 2021 respectively are as follows:
Millions of yen

Thousandsof U.S. dollars

Millions of yen

Thousandsof U.S. dollars

2022¥ 13,216 $ 106,138
5,181
657
143
14
(996)
(182)
(5,872)(715)¥ 12,990 $ 104,594

12

2022

2021

¥

¥

¥

2022

657 $
14
(74)
472

5,181
143
(1,259)
1,367

125

121

1,025

790

¥ 1,191

634
17
(154)
167

$

6,458

Notes to Financial Statements(6) Remeasurements of defined benefit plans(before tax effect deductions)Thousandsof U.S. dollars

Millions of yen

Actuarial loss (gain)
Total

2022

2021

¥
¥

¥ (1,630) $ (3,663)¥ (1,630) $ (3,663)

(448)
(448)

liabilities and hedge against interest-rate fluctuation risk regarding
securities and debts.
As they trade these with major financial institutions, we assume
that the credit risks of these derivatives are low. The Accounting
Department implements and controls these forward exchange
contracts for our own company by way of in-house consultation anddecision.
As to the derivative trades by our consolidated subsidiaries, theirBusiness Management Department or General Affairs Department
implement and control them after their internal consultation anddecision and also notification to our company.

2022(7) Accumulated adjustments for retirement benefit(before tax effect deductions)Thousandsof U.S. dollars

Millions of yen

2022
Unrecognized actuarial differences
Total

356
356

¥
¥

2022

2021

¥
¥

804
804

$
$

Note 8. Research and Development Expenses

2,912
2,912

Research and development expenditures charged to income were¥1,529 million ($12,496 thousand) for the year ended March 31,
2022.

(8) Accumulated adjustments for retirement benefit① Plan assets comprise:

2022

Equity securities
Cash and cash equivalents
Investment trust
Other
Total

53%
3%
41%
3%
100%

Note 9. Income Taxes

2021

61%
4%
31%
4%
100%

This Company and its domestic subsidiaries are subject to several
taxes based on income, which in the aggregate resulted in statutory
tax rates of approximately 30.6% and 30.6% for the year ended
March 31, 2022 and 2021, respectively.
The effective rates of income taxes reflected in the consolidated
statements of income differed from the statutory tax rates referred
to above for the year ended March 31, 2022 due principally to
expenses not deductible for income tax purposes, and temporary
differences between the tax basis of assets and liabilities and theirreported amounts in the financial statements.
The difference between the burden rate of corporate tax after
application of tax effect accounting and the statutory tax rate is notlisted as it was recorded as a net loss for the period under review
before adjustments for taxes, etc.
The tax effects of temporary differences that give rise tosignificant portions of the deferred tax assets as of March 31, 2022
and 2021 are presented below:② Long-term expected rate of return
Current and target asset allocations, historical and expected returns
on various categories of plan assets have been considered.

(9) Accumulated adjustments for retirement benefit
The principal actuarial assumption (expressed as weighted averages)
are as follows:
2022
Discount rateLong-term expected rate of return
Expected rate of salary increase2021

0.0%~0.8% 0.0%~0.8%
3.6%
2.3%
0.0%~5.5% 0.0%~5.4%

Defined contribution plans
The required contribution amount for consolidated subsidiaries forthe defined contribution plan was 182 million yen (1,489 thousand
US dollars) as of March 31, 2022.

Deferred tax assets
Net defined benefit liability
Accrued bonus indemnities
Allowance for doubtful accounts
Allowance for loss on construction work
Loss on revaluation of investment
securities
Amalgamated received property
Impairment loss
Operating loss carry-forwards
Elimination of inter-company profits
Other
Total gross deferred tax assets
Valuation allowance related to tax
loss carryforward
Valuation allowance related to total
deductible temporary differences
Subtotal of valuation allowance (Note 1)
Net deferred tax assets

Note 6. Contingent Liabilities
As of March 31, 2022 and 2021, This Company was contingently
liable as follows:
Thousandsof U.S. dollars

Millions of yen

2022
As guarantor of indebtedness of
unconsolidated subsidiaries
and others

¥ 29

2021

¥ 41

Thousandsof U.S. dollars

Millions of yen

2022

$ 241

Note 7. Derivatives and Hedging Activities
Some consolidated subsidiaries utilize derivatives of forward
exchange contract and interest-rate swap in order to hedge
exchange-rate fluctuation risk concerning foreign currency assets and

2022

2021

2022

¥ 3,758580
25
98¥ 4,194617
18
148$ 30,705
4,740
205
803

142
543
13
145
43
1,027
6,377

144
543
1
192
27
1,137
7,026

1,161
4,442
113
1,185
357
8,393
52,107

(115)

(164)

(942)

(1,531)(1,646)¥ 4,730(1,428)(1,592)¥ 5,433(12,512)(13,455)$ 38,652(Note 1)
Valuation allowance increased by 54 million yen (443 thousand US dollars). The primary factor of theincrease was an increase in the valuation allowance related to tax loss carryforward at consolidated subsidiaries.

13

Notes to Financial Statements

Millions of yen

2022
Deferred tax liabilities
Evaluated difference of othersecurities
Dividends receivable
Other
Total deferred tax liabilities
Net deferred tax assets¥ (1,296)(60)(36)(1,392)¥ 3,3372021¥ (1,307)(50)(33)(1,391)¥ 4,041

Thousandsof U.S. dollars

instruments are highly reliable Japanese financial institutions, credit
risk is judged to be immaterial.

2022

Market Risk Management
This Company has entered into an exchange forward contract tohedge part of the risks arising from exchange-rate fluctuations for
operating receivables/payables denominated in foreign currencies.
With regard to floating rate debt, we closely monitor economic
and interest-rate outlooks and conduct fund raising suited to eachsituation, and employ interest-rate swap transaction in order tocontrol fluctuation risks in the interest rate for part of the debt.
As for marketable and investment securities, This Company
periodically seizes the trend of fair value and financial position of
the issuers (business partners) to continuously review the possession
situation, taking into account the market conditions and its
relationship with the business partners.
Derivative financial transactions are executed and managed bydepartments handling such transactions with approval of
authorized personnel, in accordance with the regulations specifying
transaction authority and transaction limit.
Similar management is conducted with its consolidated
subsidiaries pursuant to the regulations of This Company.

$ (10,589)
(493)
(298)
(11,380)$ 27,272

Note 10. Financial Instruments and Related Disclosures(1) Policy for Financial Instruments
This Group raises funds needed to implement financial and capital
investment plans (mainly through loans from banks). Its temporary
surpluses are mainly invested in highly liquid financial assets, while
short-term working capital is financed by loans from banks. This Group
employs derivative financial instruments for the purpose of avoiding
risks described later, and does not undertake speculative transactions.

Management of Liquidity Risk Related to Financing
Based on reports from each department, the financial department ofThis Company formulates and updates the financial plan in a timely
manner, and manages liquidity risk by way of maintaining
short-term liquidity. Financial plans of its consolidated subsidiaries
are reported to the financial department of This Company every
month in a timely manner, thereby controlling liquidity risk acrossthe Group.

(2) Nature and Extent of Risks Arising from Financial Instruments
Operating receivables, such as notes and accounts receivable-trade,
involve credit risk on the part of customers.
Foreign-currency-denominated operating receivables generated
by overseas operations, which could be affected by exchange-ratefluctuation risk, are hedged using forward exchange contracts as theneed arises.
Marketable and investment securities, which are mainly equity
securities of affiliates, involve market fluctuation risk.
Operating payables, such as notes and accounts payable-trade,are generally due within five months. Part of them, denominated inforeign currencies, which could be affected by exchange-ratefluctuation risk, are hedged using forward exchange contracts as theneed arises.
The primary purpose of loans is raising funds for capital
investment and business structure reform. Of these, syndicate loans
and many other loans involve interest-rate fluctuation risk. In
addition, in order to avoid interest-rate fluctuation risk for part ofthe long-term debt, we employ derivative transactions (interest-rate
swap transaction) for hedging.
Derivative transactions are exchange forward contracts aimed at
hedging exchange-rate fluctuation risk related to operatingreceivables/payables denominated in foreign currencies, andinterestrate swaps aimed at hedging interest-rate fluctuation risk
related to debt.
(3) Risk Management for Financial Instruments
Credit Risk Management
For operating receivables and long-term debt, the operations
department of respective business segment of This Company employs
credit management regulations in order to periodically monitor the
status of its major business partners, manage due dates and balances ofeach business partner, and furthermore, identify business partners
with doubtful collectability and mitigate risks arising from theirdeteriorated financial position at an early date. Similar credit
management is conducted with its consolidated subsidiaries pursuant
to the credit management regulations of This Company.
As This Company’s transaction partners on derivative financial
14

When using multiple inputs that have a significant impact on
the market value calculation, the market value is classified into thelowest priority level in the calculation of market value calculation
among the respective levels to which each inputs belongs.

(4) Fair Values of Financial Instruments
With regard to the fair value of financial instruments, in addition tobasing fair value on market value, the fair value of financial
instruments that have no available market value is determined byusing a rational method of calculation. However, as variables are
inherent in these value calculations, the resulting values may differ if
different assumptions are used.

① Financial instruments recorded on the consolidated balance

sheets at market value

For the fiscal year ended March 31, 2022

Millions of yen

2022
Investment securities
Total
Current portion of long-term debt
Long-term debt
Total
Derivative transactions

Market value (Millions of yen)

Carrying
amounts

Fair
value

Unrecognizedgain (loss)¥ 10,912
10,912
1,222
714¥ 1,936¥1¥ 10,912
10,912

¥—
—

1,937

0

¥ 1,937
1
¥

¥ 0
¥—

Investment securities
Available-for-sale-securities
Securities
OthersDerivative transactions
Foreign currency forward exchange
Total assets

Level 1

Level 2

Level 3

Total

¥ 10,571
340——— ¥ 10,571—
340—¥ 10,912

1¥1—1— ¥ 10,913

Millions of yen

2021
Carrying
amounts

Investment securities
Total
Current portion of long-term debt
Long-term debt
Total

¥ 11,048
11,048668
1,736¥ 2,405

Fair
value

For the fiscal year ended March 31, 2022

Unrecognizedgain (loss)¥ 11,048
11,048

¥—
—

2,406

0

¥ 2,406¥ 0

Market value (Thousands of U.S. dollars)

Investment securities
Available-for-sale-securities
Securities
OthersDerivative transactions
Foreign currency forward exchange
Total assets

Thousands of U.S. dollars

2022
Investment securities
Total
Current portion of long-term debt
Long-term debt
Total
Derivative transactions

Unrecognizedgain (loss)

Level 1

Level 2

$ 86,379
2,779

—
—

— $ 86,379
—
2,779

—
$ 89,1589$9—9— $ 89,167

Carrying
amounts

Fair
value

$ 89,158
89,1589,986
5,839$ 15,826$9$ 89,158
89,158$——15,8271

For the fiscal year ended March 31, 2022

$ 15,827
9
$

$ 1
$—

Level 1

2022
¥ 609
¥ 4

Total

② Financial instruments other than those recorded on the

consolidated balance sheets at market valueMarket value (Millions of yen)

Long-term loans payable
Total liabilities

Note 1. “Cash and deposits,” “Notes and accounts receivable-trade and contract assets” “Electronicallyrecorded monetary claims,” “Notes and accounts payable-trade,” “Electronically recorded obligations,”
and “Short-term loans payable” are omitted because they are cash and settled in a short period, their fairvalue approximates their book value.
Note 2. Unlisted equity securities are not included in investment securities. Their book value is as below:

Millionsof yenLevel 3

Level 2

— ¥ 1,937— ¥ 1,937

Level 3——

Total
¥ 1,937¥ 1,937

For the fiscal year ended March 31, 2022

Thousandsof U.S. dollars

Market value (Thousands of U.S. dollars)

Level 12022
$ 4,976
40$

Long-term loans payable
Total liabilities

Level 2

— $ 15,827— $ 15,827

Level 3Total
— $ 15,827— $ 15,827(Note) Explanation of valuation techniques and inputs used to calculate market value

Note 3. The net receivables/liabilities incurred as a result of derivative transactions are shown in net figures,
net liabilities are shown in parenthesis.

Investment securities
Listed stocks and investment trust are valued using market prices.
Because listed stocks and investment trust are traded in active
markets, their market value is classified as Level 1 market value.

(5) Matters concerning the breakdown of each level of market
value for financial instruments
The market value of financial instruments is classified into thefollowing three levels according to the observability and importanceof the input related to the calculation of market value.
Level 1 market value: Of the inputs related to the calculation of
the observable market value, the market value of the asset or liability
formed in an active market and subject to the calculation of market
value.
Level 2 market value: Of the inputs related to the calculation ofobservable market value, the market value calculated using the
inputs related to the calculation of market value other than forLevel 1 input.
Level 3 market value: Market value calculated using inputs
related to the calculation of unobservable market value.

Long-term loans payable
These are classified as Level 2 market value based on the total
amount of principal and interest and the present value discounted
by the interest rate and including the remaining period of the said
liability and credit risk.
Derivative transactions
The fair value of derivatives are based on quoted price offered bycounterparty financial institutions and classified as Level 2.

15

Notes to Financial Statements

Note 11. Revenue Recognition
1. Information on disaggregated revenue from contracts with customers
For the current consolidated fiscal year (from April 1, 2021 to March 31, 2022)
Millions of yen

Ductile iron pipes and various control valves
Industrial machinery and plant engineering
Cast iron/steel products
Construction materials
Various synthetic resin molded products

Lifelinebusiness¥ 57,478————

Reportable segment
Machinery systembusiness¥—
12,4209,674——

Industrial materials
business¥———
14,842
11,538

Revenue from contracts with customers¥ 57,478¥ 22,095¥ 26,381

105,954

Sales to customers¥ 57,478¥ 22,095¥ 26,381¥ 105,954

Ductile iron pipes and various control valves
Industrial machinery and plant engineering
Cast iron/steel products
Construction materials
Various synthetic resin molded products

Lifelinebusiness$ 469,632————

Reportable segment
Machinery systembusiness$—
101,485
79,047——

Industrial materials
business$———
121,275
94,274$ 469,632
101,485
79,047
121,275
94,274

Revenue from contracts with customers$ 469,632$ 215,550$ 215,550$ 865,715

Sales to customers$ 469,632$ 180,532$ 215,550$ 865,715

Total¥ 57,478
12,4209,674
14,842
11,538

Thousands of U.S. dollars

Total

For transactions in which the Group is deemed to be acting as anagent in providing goods or services to customers, revenue isrecognized at the net amount after deducting the amount paid tothe supplier from the amount received from the customer.
Variable consideration such as sales commissions and sales
incentives for some transactions is deducted from net sales.
Consideration for transactions of merchandise and finishedproducts is generally received within one year after delivery of themerchandise and finished products. Consideration for transactionsof construction contracts is received either in stages according to theprogress in fulfilling the performance obligations or after the
performance obligations are fully satisfied, generally within one year
based on the terms of contract.

2. Basic information for understanding revenue fromcontracts with customers
The main business of the Group is the manufacture and sale ofmerchandise and finished goods in its reportable business segments:
Lifeline, Machinery System, and Industrial Materials. With respect
to the sale of these merchandise and finished goods, since theperformance obligation is deemed to have been fulfilled at the time
when the merchandise and finished goods are accepted andinspected by the customer, and the customer acquires control of
those merchandise and finished goods, revenue is usually recognizedat that time. However, in domestic sale of merchandise and finishedgoods, revenue is recognized at the time of shipment when it takes
place in a normal time period from the shipment to the transfer ofcontrol of the merchandise and finished goods to the customer, byapplying an alternative treatment stipulated in paragraph 98 of“Implementation Guidance on Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 30, March 26, 2021).
In addition to the manufacture and sale of products, the Group also
engages in business related to the design and construction works
including installations of products sold. Regarding contracts forthese construction works, except immaterial ones with a very short
construction period, the degree of progress in fulfilling theperformance obligations is estimated and revenue is recognized overtime based on the degree of progress.

16Notes to Financial Statements

3. Information on the relationship between fulfillment of performance obligation based on contracts with customers and cash
flows arising from such contracts, and the amount and timing of revenue expected to be recognized in the next consolidated
fiscal year and beyond from contracts with customers existing at the end of the current consolidated fiscal year
(1) Balances of contract assets and contract liabilities

Fiscal year ended March 31, 2022
Millions of yen

Thousands of U.S. dollars

Receivables from contracts with customers (beginning balance)¥ 38,246$ 312,499

Receivables from contracts with customers (ending balance)¥ 40,543$ 331,266

Contract assets (beginning balance)

¥

4,956

$ 40,495

Contract assets (ending balance)

¥

3,903

$ 31,890

Contract liabilities (beginning balance)

¥

1,281

$ 10,473

Contract liabilities (ending balance)

¥

2,628

$ 21,480

Note 12. Segment Information

Contract assets are rights of This Company and its consolidated
subsidiaries to consideration for performance obligations inconstruction contracts with customers that have been fulfilled but
unclaimed at the end of the current fiscal year. Contract assets aretransferred to receivables generated from contracts with customers
at the point when This Company and its consolidated subsidiaries’
rights to consideration become unconditional. Consideration forsuch performance obligations is billed and received in line with theterms of the contract.
Contract liabilities are primarily advances received from
customers in accordance with the payment terms of contracts withcustomers for which revenue is recognized upon fulfillment of
performance obligations. Contract liabilities are reversed uponrecognition of revenue.
Of the revenue recognized during the current fiscal year, theamount included in the beginning balance of contract liabilities was
630 million yen.

(1) Outline of Reportable Segments
This Company’s reportable segments are the components of ourbusiness (separate financial information for which is available), on
which periodical review is made for allocation of management
resources and appraisal of achievements by the board of directors.
Each product-based division at our headquarters compiles
comprehensive product strategies for domestic and overseas
business operations.
In other words, This Company consists of division-based
reportable segments; the Lifeline Consolidated Division, theMachinery System Consolidated Division and the Industrial
Materials Consolidated Division.
The Lifeline Consolidated Division specializes in the
manufacture of ductile iron pipes and accessories, various types ofadjusting valves, and other incidental works.
The Machinery System Consolidated Division specializes in the
manufacture of industrial equipment (various types of powder
processing equipment and press machines, etc.), steel casting andspecial steel casting, other incidental works and various types ofplant engineering.
The Industrial Materials Consolidated Division specializes in
the manufacture of ducts, polycon FRP pipes, various types ofsynthetic resin products, and other incidental works.

(2) Trading prices allocated to the remaining performanceobligations
This Company and its consolidated subsidiaries have applied apractical expedient to the notes to the trading prices allocated to theremaining performance obligations, and the notes do not include
contracts initially expected contract period of which is within one
year. The main components of the performance obligations are
related to construction contracts, and the total trading priceallocated to the remaining performance obligations and the
expected period for revenue recognition are as follows:
Fiscal year ended March 31, 2022
Millions of yen

Thousands of U.S. dollars

Within one year

¥ 7,550$ 61,689

More than one year

¥ 3,343$ 27,318

Total¥ 10,893$ 89,008

17

Notes to Financial Statements(Application of Accounting Standard for Revenue Recognition andrelevant ASBJ regulations)
As stated in “Changes in accounting policies,” we have applied the
Accounting Standard for Revenue Recognition and relevant
regulations from the beginning of the current consolidated fiscal
year, and have changed the accounting treatment for revenue
recognition. In line with this change, we have also changed the
profit/loss calculation method for each business segment in thesame way.
Due to this change, sales of Lifeline decreased by 1,272 million
yen and sales of Industrial Materials decreased by 152 million yen
for the current fiscal year compared to those calculated using theprevious accounting method. These is no impact on segment
profits.

(2) Calculation method of: sales, profits/losses, assets, liabilities
and other items for each reportable segment
The accounting procedures of the reportable segments are basicallythe same as the description in the “Important Items Concerning the
Presentation of Consolidated Financial Statements,” and any
intersegment internal revenue/transfers etc., are represented basedon actual market prices.
(Renaming of reportable segment)
Starting from the current consolidated fiscal year, the name of thereportable segment previously called the pipe system business has
been changed to the lifeline business. This change is just for its
name and does not affect segment information.
In the segment information for the previous consolidated fiscal
year, the above reportable segment has also been represented by its
new name.

(3) Information on sales, profits/losses, assets, liabilities and other items for each reportable segment
Segment information for the fiscal years ended March 2021 and 2022 is as follows:
Millions of yen

Net sales
Sales to customers
Intersegment
Total sales
Segment income
Segment assets
Other items
Depreciation
Increase in property, plant andequipment, and intangible assets

Lifelinebusiness

2022
Reportable segment
Machinery system
Industrial materials
businessbusiness

Total

Adjustment*1
—
(370)
(370)
(322)
32,961¥ 105,954—
105,954
4,172
139,722

2,292

419

2,711

2,077

¥ 383

¥ 57,478
127
57,605
3,016
56,310¥ 22,095
114
22,210437
23,768¥ 26,381
128
26,5091,040
26,682¥ 105,954
370
106,325
4,494
106,761

1,258

514

519

¥ 1,201

¥

474

¥

400

¥

Consolidated*2

¥

¥

2,460

1. The minus 322 million yen segment income adjustment includes: 19 million yen resulting from the elimination of intersegment transactions; minus 214 million yen resulting from allocation differences of selling & generaladministrative expenses and experiment & research expenses to be borne by each reportable segment; as well as minus 127 million yen resulting from inventory asset adjustment.
The 32,961 million yen segment asset adjustment includes: minus 6,757 million yen resulting from the elimination of intersegment transactions; and 39,719 million yen due to a working capital surplus, investment securities
and land, etc., which are company-wide assets and not attributable to any specific reportable segment.
The 419 million yen depreciation adjustment and 383 million yen adjustment for increases in tangible and intangible fixed assets are basic research-related assets that are not attributable to any specific reportable segment,
and assets that belong to headquarters, etc.
2. Adjustment is made between segment income and Operating Income in the Consolidated Statement of Income.

Millions of yen

Net sales
Sales to customers
Intersegment
Total sales
Segment income
Segment assets
Other items
Depreciation
Increase in property, plant andequipment, and intangible assets

Lifelinebusiness

2021
Reportable segment
Machinery system
Industrial materials
businessbusiness

Total

Adjustment*1
—
(266)
(266)
(99)
34,639¥ 116,596—
116,596
4,673
134,477

2,176

344

2,520

2,550

¥ 850

¥ 56,185
96
56,282
3,087
52,891¥ 31,184
129
31,313
610
21,874¥ 29,226
41
29,267
1,074
25,072¥ 116,596
266
116,863
4,772
99,838

1,246

442

488

¥

982

¥

883

¥

685

¥

Consolidated*2

¥

¥

3,401

1. The minus 99 million yen segment income adjustment includes: 16 million yen resulting from the elimination of intersegment transactions; minus 107 million yen resulting from allocation differences of selling & generaladministrative expenses and experiment & research expenses to be borne by each reportable segment; as well as minus 8 million yen resulting from inventory asset adjustment.
The 34,639 million yen segment asset adjustment includes: minus 5,810 million yen resulting from the elimination of intersegment transactions; and 40,449 million yen due to a working capital surplus, investment securities
and land, etc., which are company-wide assets and not attributable to any specific reportable segment.
The 344 million yen depreciation adjustment and 850 million yen adjustment for increases in tangible and intangible fixed assets are basic research-related assets that are not attributable to any specific reportable segment,
and assets that belong to headquarters, etc.
2. Adjustment is made between segment income and Operating Income in the Consolidated Statement of Income.

18

Notes to Financial Statements

Thousands of U.S. dollars

Net sales
Sales to customers
Intersegment
Total sales
Segment income
Segment assets
Other items
Depreciation
Increase in property, plant andequipment, and intangible assets

Lifelinebusiness

2022
Reportable segment
Machinery system
Industrial materials
businessbusiness

Total$ 469,632
1,039
470,671
24,648460,089$ 180,532
937
181,470
3,575
194,205$ 215,550
1,050
216,600
8,501
218,009$ 865,715
3,027
868,742
36,724872,304

10,281

4,200

4,245

18,727

$

9,820

$

$

3,877

3,274

$

Adjustment*1

16,972$$

Consolidated*2—(3,027)(3,027)(2,635)
269,312$ 865,715—
865,715
34,0881,141,617

3,424

22,152

3,129$

20,101

1. The minus 2,635 thousand US dollar segment income adjustment includes: 158 thousand US dollars resulting from the elimination of intersegment transactions; minus 1,756 thousand US dollars resulting from allocationdifferences of selling & general administrative expenses and experiment & research expenses to be borne by each reportable segment; as well as minus 1,038 thousand US dollars resulting from inventory asset adjustment.
The 269,312 thousand US dollar segment asset adjustment includes: minus 55,216 thousand US dollars resulting from the elimination of intersegment transactions; and 324,528 thousand US dollars due to a working capitalsurplus, investment securities and land, etc., which are company-wide assets and not attributable to any specific reportable segment.
The 3,424 thousand US dollar depreciation adjustment and 3,129 thousand US dollar adjustment for increases in tangible and intangible fixed assets are basic research-related assets that are not attributable to any specificreportable segment, and assets that belong to headquarters, etc.
2. Adjustment is made between segment income and Operating Income in the Consolidated Statement of Income.

(4) Geographic Segments
Geographic segment information has been omitted, as thepercentage of “national” exceeded 90% in both sales and assets in all
segments.
(5) Sales to Foreign Customers
Foreign sales have been omitted, as they did not reach 10% ofconsolidated sales.

Note 13. Subsequent Events
Not applicable

Note 14. Additional Information(The impact of COVID-19 on accounting estimates)
Forecasting how COVID-19 will spread and when it will subside isdifficult. Nonetheless, we have made accounting estimates based on
the information available at the time of preparation of theconsolidated financial statements.

19Independent Auditor’s Report

Independent Auditor’s Report
To the Board of Directors of Kurimoto, Ltd.

OpinionWe have audited the accompanying consolidated financial statements of Kurimoto, Ltd. (the Company) and its consolidated subsidiaries (theGroup), which comprise the consolidated balance sheet as at March 31, 2022, and the consolidated statements of income, comprehensive
income, changes in net assets, and cash flows for the year then ended, and notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial positionof the Group as at March 31, 2022, and its consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards arefurther described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements inJapan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial
statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole,and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Reasonableness of Estimating Total Construction Cost in Applying the Percentage-of-Completion Method
for Machinery System Business
Key Audit Matters and Reasons for the Determination

Auditor’s Response

As stated in (Note 3. Significant Accounting Estimates), the amount of

Our main audit procedures performed to verify the reasonableness

revenue recognition for construction contracts in the consolidatedof estimating total construction cost related to the machinery

income statement for the current consolidated fiscal year was 7,769

system business are as follows.

million yen, which were mostly derived from the machinery system(1) Evaluation of internal controls

business of the Company.

•

The effectiveness of the design and operation status of(Revenue Recognition)internal controls related to the process of formulating the

As stated in the “Basic information for understanding revenue fromconstruction cost estimate (working budget) was evaluatedcontracts with customers,” regarding performance obligations set

with a particular focus on the following internal controls.

forth in construction contracts in the machinery system business to•Internal control to ensure that the estimated costs and man-hours
for each construction project are properly accumulated

be fulfilled over a certain period of time, the Company estimates thedegree of progress in fulfilling the performance obligations and•Internal control to reflect changes in the situation after therecognizes revenue over that period of time based on the degree ofstart of construction to working budget in a timely andprogress. The degree of progress is determined based on theappropriate manner20Independent Auditor’s Report

Reasonableness of Estimating Total Construction Cost in Applying the Percentage-of-Completion Method
for Machinery System Business
Key Audit Matters and Reasons for the Determination

Auditor’s Response

percentage of actual cost incurred before the end of the period to the(2) Examination of the reasonableness of estimating total

total cost of construction.

construction cost

In order to applicate the revenue recognition for construction•

In order to evaluate the reasonableness of estimating total

contracts, the total construction cost should be estimated reasonably

construction cost based on the working budget formulated

to estimate the degree of completion.

for each construction contract, we performed the following
procedures as below.

The total construction cost has a characteristic which is fluctuatedby various changes in circumstances.

•

We reviewed the cost breakdown of working budget, andIn order to make a reliable estimate of the total construction cost,checked the estimated costs for each construction project

the estimate needs to be appropriately reviewed in comparison withagainst purchase orders and other calculation documents,

the actual costs incurred. The total construction cost therefore has

which are the basis of the estimate, or compared with actual

uncertainty in regard to the estimation of material cost, labor cost,

costs incurred by a similar type of construction in the past.

and others.

After that, we examined whether the data used for theestimation such as the contents of work, estimatedAs stated above, the estimation of the total construction cost

man-hours, were appropriate for the contents of the work.

involves uncertainty due to changes in the environment surrounding
construction contract, as well as the management’s decision.

•

We evaluated the accuracy of the latest working budget bycomparing it with the initial working budget and looking into

Therefore, we judged that the said matter is particularly

the differences.

significant in the audit of the consolidated financial statements forthe current consolidated fiscal year and corresponds to a key audit•

We evaluated the timeliness of revision of working budget,which should be revised, by the inquiries to the persons inmatter.

charge or other procedures.

Other information
The other information comprises the information included in the Annual Report, that contains audited consolidated financial statements but
does not include the consolidated financial statements and our audit report thereon. Management is responsible for preparation anddisclosure of the other information. Audit & Supervisory Board and its members are responsible for overseeing the Group’s reporting
process of the other information. Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.

21

Independent Auditor’s Report

Responsibilities of Management, Audit & Supervisory Board and its members for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting
principles generally accepted in Japan, and for such internal control as management determines is necessary to enable 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
and disclosing, as required by accounting principles generally accepted in Japan, matters related to going concern.
Audit & Supervisory Board and its members are responsible for overseeing 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 free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected toinfluence 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 maintainprofessional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks. These audit procedures are based on auditor’s professional judgment and obtain audit evidence thatis sufficient and appropriate to provide a basis for our opinion.
• Consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, for the risk
assessments, while the purpose of the audit of the consolidated financial statements is not expressing an opinion on the effectiveness of
the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made bymanagement.
• 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 the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s reportto 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’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
• Evaluate whether the presentation and notes to the consolidated financial statements are in accordance with accounting principles
generally accepted in Japan, and the overall presentation, structure, and content of the consolidated financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of thegroup audit. We remain solely responsible for our audit opinion.

22

Independent Auditor’s Report

We communicate with Audit & Supervisory Board and its members regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide Audit & Supervisory Board and its members with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with Audit & Supervisory Board and its members, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its 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.

Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements and the notes with respect to the year ended March 31, 2022
are presented solely for convenience. Our audit also included the translation of Japanese yen amount into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 2 to the consolidated financial statements.
PKF HIBIKI AUDIT CORPORATION
Osaka, Japan
November 17, 2022

Masahiko Tomita[Representative Partner]
Engagement Partner
Certified Public Accountant
Katsuyuki Matsumoto[Representative Partner]
Engagement Partner
Certified Public Accountant
Haruhito Urabe[Partner]
Engagement Partner
Certified Public Accountant

23

Corporate Information

Kurimoto, Ltd.

(as of June 28, 2022)

OutlineFoundedIncorporated
Common stock
Total assets
Employees

Offices
1909
1934¥31,186 million*¥139,722 million*
1,333*

Head Office12-19, Kitahorie 1-chome, Nishi-ku, Osaka 550-8580, Japan
Telephone: (06) 6538-7603
Fax: (06) 6538-7758
Tokyo Office16-2, Konan 2-chome, Minato-ku, Tokyo 108-0075, Japan
Telephone: (03) 3450-8611
Fax: (03) 3450-8504*as of March 31, 2022

Board of Directors

Hokkaido Office3, Nishi 3-chome, Kitaichijo, Chuo-ku, Sapporo 060-0001, Japan
Telephone: (011) 281-3301
Fax: (011) 281-3369(as of June 28, 2022)

President

Kazutaka Kikumoto

ChairmanMoriyoshi Kushida

Director andManaging Executive Officer

Yoshiaki Shingu

Directors andSenior Executive Officers

Akitoshi Oda
Yasuharu Yoshinaga
Yoshihiro Uraji

Outside Directors

Keiko Kondo
Tomohiko Sato
Kiyoshi Sawai

Full-Time Audit &Supervisory Board Member

Minoru Murata

Outside Audit &Supervisory Board Members

Maki Arita
Osamu Honda

Senior Executive Officer

Shinya Kojima

Executive Officers

Takao Ueda
Yasuji Noguchi
Hitoshi Marutani
Liao Jinsun
Masanobu Mino
Yasuo Sano
Yasushi Tabuchi
Hiroshi Fujimoto
Soichiro Nakanishi

Stock

Tohoku Office12-30, 1-chome Honcho, Aoba-ku, Sendai 980-0014, Japan
Telephone: (022) 227-1872
Fax: (022) 227-8417
Nagoya Office
1-17-23, Meiekiminami, Nakamura-ku, Nagoya 450-0003, Japan
Telephone: (052) 551-6930
Fax: (052) 551-6940
Chugoku Office
7-19, Hondori, Naka-ku, Hiroshima 730-0035, Japan
Telephone: (082) 247-4132
Fax: (082) 247-4004
Kyushu Office
3-11, Hakataeki-minami 1-chome, Hakata-ku, Fukuoka
812-0016, Japan
Telephone: (092) 451-6622
Fax: (092) 471-7696
Europe Office
Address: Berliner Allee 40 40212 Dusseldorf, Germany
Telephone: +49-211-550-46411
Fax: +49-211-550-46420
Jakarta Office
Sahid Sudirman Center, 56th Floor Jl. Jend. Sudirman Kav. 86,
Jakarta 10220, Indonesia
Telephone: +62-21-8063-1861
Fax: +62-21-8063-1999

Common Stock
Number of authorized shares
Number of issued shares
Number of shareholders

39,376,600
13,098,490
7,928

Principal Shareholders(as of March 31, 2022)

Taiyo Life Insurance Company
The Master Trust Bank of Japan, Ltd.
Custody Bank of Japan, Ltd.
Nippon Life Insurance Company
Resona Bank, Limited
Mizuho Bank, Ltd.

Banking References(as of March 31, 2022)

Number ofshares held
(in thousands)

Ratio ofshareholding

1,209
1,148
823
678
444
362

9.89%
9.40%
6.73%
5.55%
3.63%
2.96%

Head OfficeMizuho Bank, Ltd. (Osaka Branch)Resona Bank, Limited (Osaka Banking Department)
Sumitomo Mitsui Banking Corporation (Midosuji Branch)
MUFG Bank, Ltd. (Osaka Main Office)Tokyo OfficeMizuho Bank, Ltd. (Uchisaiwai-cho Branch)
MUFG Bank, Ltd. (Shimbashi Branch)Resona Bank, Limited (Shimbashi Branch)
Sumitomo Mitsui Banking Corporation (Hibiya Branch)24Corporate Information

Kurimoto Group(as of June 28, 2022)

Kurimoto Group consists of Kurimoto, Ltd. and 20 subsidiaries and 1 associate, including the following.
Kurimoto Trading Co., Ltd.

Kurimoto Business Associates Co., Ltd.

Operations: Sales of ductile iron pipes, valves, and synthetic resin
products

Operations:

Kurimoto Logistics Corporation

Kurimoto USA, Inc.

Operations: Procurement and transport of raw materials, castiron pipes, etc.

Operations:Management and leasing of real estate, staffing
service, travel agency, insurance agency

Holding company

Readco Kurimoto, LLC
Japan Castering Co., Ltd.

Operations:

Manufacture and sales of industrial machineryOperations: Manufacture and sales of castings
Kurimoto Polymers Co., Ltd.
Yamatogawa Co., Ltd.

Operations:Operations: Sales of ductile iron pipes, valves, and synthetic resin
products

Manufacture and sales of rigid PVC pipes,
polyethylene pipes and profile extrusion products

Zentec Co., Ltd.
Motoyama Eng. Works, Ltd.

Operations:Operations: Manufacture and sales of industrial valves

Maintenance and repair work of bridges and roads
Repair and reinforcement work of concrete structures

Ks-Tech Co., Ltd.

Kurimoto Pipe Engineering Co., Ltd.

Operations: Manufacture, sales and construction of forging
machinery, forming machinery and related products

Operations:

Hokkaido Kanzai Co., Ltd.

Riko, Ltd.

Operations: Sales of ductile iron pipes, valves, and synthetic resin
products

Operations:

Design, construction and management of pipelines,
operation and maintenance of pipelines

Production of valves

Kuritetsu (Shanghai) Trading Co., Ltd.
Yashima Chemical Engineering Co., Ltd.
Operations: Design, manufacture, sales, and maintenance ofchemical and pharmaceutical equipment
Nihon Kaiser Co., Ltd.
Operations: Manufacture and sales of half precast products

12-19, Kitahorie 1-chome, Nishi-ku, Osaka 550-8580, Japan
Telephone (06)6538-7603
Facsimile (06)6538-7758
URL http://www.kurimoto.co.jp/english/

Operations:

Wholesale of machinery equipment, steel, andnonmetallic products