Annual Report 2021

Profile
Since Okumura was established in 1907, our mission has been to contribute to society through ourbusiness under our corporate mottos, “steadfast management” and “sincere operation.”
We will accumulate a wealth of technical expertise and strive to balance people’s comfortable,safe, and secure lives with the preservation of beautiful nature.
While aiming to become a company that future generations will need, we will create a new
future as a comprehensive construction company with a harmonious mix of civil engineering andarchitectural construction.

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
37
38
39

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 2021

For the years ended March 31

2019

2020

Consolidated:

2021

2021
Thousands of
U.S. Dollars

Millions of Yen¥220,884¥226,372¥220,712$1,993,428

Operating income

13,717

11,517

12,880116,332

Net income attributable to owners of the parent

12,314

9,796

10,28592,894

Total assets

297,691

294,919

329,005

2,971,507

Total equity

168,401

156,112167,964

1,517,016

Net sales

Per Share:

Yen

U.S. Dollars

Basic net income¥312.93¥258.01¥271.90$2.46

Cash dividends applicable to the year

153.00143.00140.001.26

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, 2021, of ¥110.72=$1.

Net Sales

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

250,000

Total Equity(Millions of Yen)

15,000(Millions of Yen)
200,000

200,000

12,000160,000

150,000

9,000

120,000

100,000

6,000

80,00050,0003,000

40,000

0

0

0

2019

2020

2021

2019

2020

2021

2019

2020

2021

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 2021 (April 1,2020 to March 31, 2021) is provided below.

Results for the Year Ended March 31, 2021
During the period under review, the Japanese economy deteriorated significantly due to the spread of
the novel coronavirus (COVID-19). The economy did seem to be moving back onto a recovery trend at
one point as economic activity gradually picked up, but was fettered by the resurgence of COVID-19,
resulting in extremely tough economic conditions. In this climate, the business environment for theconstruction industry specifically proved severely competitive. While previously volatile corporate
performance settled down thanks to the calming support of robust public investments and ongoing
construction progress, the worsening in corporate profits and other factors resulted in persistently
restrained private-sector investments.
In these circumstances, the Company’s consolidated net sales decreased 2.5% year on year to¥220,712 million. Meanwhile, primarily due to the improvement of the gross profit from civil engineering
work and construction work, consolidated gross profit increased 8.2% year on year to ¥31,480 million,
operating income increased 11.8% year on year to ¥12,880 million, and net income attributable toowners of the parent increased 5.0% year on year to ¥10,285 million.

Dividend for the Year Ended March 31, 2021
The Company decided to pay a dividend of ¥140.00 per share (interim dividend of ¥37.00, year-end
dividend of ¥103.00) for the period ended March 31, 2021 based on its basic policy regarding profit sharing.

Medium Term Business Plan
The outlook for the Japanese economy is expected to continue to seesaw for the time being, asconditions remain severe and with no end in sight to the COVID-19 pandemic. However, we do expect
the economy will pick up gradually over time, underpinned by policy support measures andimprovements in overseas economies. In the construction industry, public investments are expected tocontinue firm as the relevant budgets are executed, but few can be optimistic about the businessenvironment as long as the outlook for corporate capital investment remains unclear.

Okumura Corporation Annual Report 2021

3

Under these circumstances, the Okumura Group will continue to operate with the intent offulfilling our social mission as a part of the construction industry while implementing thorough measures
to prevent the further spread of COVID-19. Moreover, as the Group looks ahead to the achievement of the“Vision toward 2030,” it is promoting the “Medium Term Business Plan (FY2019-FY2021)” with the basic
policies of business strategy, namely to “increase corporate value,”“expand business domains,” and “utilize
human resources.” The Medium Term Business Plan also involves pursuing initiatives that integrate bothour operational and our ESG/SDGs objectives by reflecting our commitment to “contribute to resilient
infrastructure development,”“pursue environmentally friendly design and construction,” and “promote
workstyle reforms,” all of which were identified as ESG/SDGs-related material issues (materiality).
Specifically, in the construction business, we will continue to work on strengthening disasterprevention/mitigation areas, national resilience, and infrastructure longevity where demand is expected
to grow going forward, promoting ICT-driven technological development that can help improve
productivity as well as bolstering our capabilities to propose solutions that meet increasingly diverse
customer needs, including measures to reduce the environmental impact and to adapt to new lifestyles
in a with-COVID and post-COVID world. In the real estate business, we will expand our leasing businessby investing in excellent assets and optimally managing our portfolio holdings, strengthen our businessdevelopment initiatives, and strive to utilize our existing stock in a more environmentally friendly way
through renovations, etc. Additionally, we will aim to diversify our earnings base and proactively engage
in the promotion of the PPP/concession and new businesses such as renewable energy business andcontinue to strive to build a strong overseas business foundation primarily in regions where construction
projects were carried out in the past. We will also conduct a thorough review of our business processes
and seek to enhance systems for realizing diversity in order to achieve a work-life balance by, forexample, firmly establishing the system of 8 days holiday for every 4 weeks at construction sites andworking to reduce overtime.
The Company looks forward to the continued support and guidance of our shareholders.
June 2021

Takanori Okumura
President and Representative Director

Review of Operations
CIVIL ENGINEERING
Major Projects Completed

4

Hokuriku Shinkansen Bullet Train’s Hakusan-miyabo ElevatedBridgeMain Civil Engineering Work of the Renewal Work of the
Tsukabaru Power Station

Work period: December 2015 to January 2021
Construction length: 1,731m
84 RC bridge piers, 79 RC girders (1,483m), 7 PPC T-girders (248m)

Work period: May 2014 to July 2020
Waterway and pipeline work: 1 set, land development work of power
station site: 1 set, power station work: 1 set, tailrace work: 1 set

Civil Engineering Work of the Osawa River Floodgate on theOsawa River, a Class B River

Construction Work of the Arimaguchi Tunnel (tentative name)Work period: October 2015 to May 2020
1 main floodgate:
Precast concrete pile work, 60 of φ900 and 99 of φ600
Cutoff steel sheet pile work: 273 sheets of 10H-type steel sheet piles andconcrete work: 6,200m3
Bed protection work: 326 (0.5t) concrete apron blocks and 63 (5t) concreteapron blocks
Revetment work: 1 set
Soil improvement work: 1 set
1 span of curtain wall work, control bridge length: 19.5m

Work period: February 2018 to October 2020
Construction length: 1,015.151m
Tunnel length: 639m
(NATM, blasting excavation, inner cross section area: 52.4m2, tunnel
excavation and lining: 639m, invert work: 556.2m)
Road improvement work length: 376.151m(retaining wall work, culvert work, concrete block masonry work, drainage
work: 1 set)

Orders Received
Tokai-Kanjo Expressway’s
Funakiyama Tunnel WorkWork period: December 2020 to
December 2022
Construction length: 540m (earthwork
part 79m, tunnel part 461m)
Tunnel length: 453m
(NATM, blasting excavation, inner crosssection area: 85m2, auxiliary
construction method: 1 set)
Earthwork volume: Approximately
14,000m3 (road excavation,embankment work, structure
excavation)
Bridge substructure work (1 abutment)
Caisson pile method: 4 piles (Φ2.0m)
Inverted-T-type retaining wall: 3 walls
Reinforced soil wall: 362m2
Installation and removal work of
temporary bridge: 327m2, temporary
stage: 54m2

Joshin-Etsu Expressway
Takaiwayama Tunnel (Down
Line) Reinforcement Work

Ground Leveling Work for Toin
Industrial Park and Surrounding
Areas

Land Development Work for
HISAKA WORKS, LTD.’s Ikoma
Plant

Work period: November 2020 to May
2024
Invert structure excavation: 1,700m3,
invert concrete 800m3, monitoring
work: 1 set, asphalt pavement
improvement work 1,400m2, earth
retaining work (also serving as guard
fences) 130m, observer pathway work
310m, tunnel facility work: 1 set

Work period: September 2020 to
October 2022
Work area: 14.4 ha
Road earthwork: 77,800m3 of
excavation, 215,400m3 of roadembankment, reservoir construction: 1
location, sheet pile revetment work:
992 sheets, drain facility construction:
1 set, pre-cast slab concrete work:
586m, retaining wall work: 329m,
sewage pipework: 524m, sewage
manhole: 16 locations, drain structure,road drainage: 2,007m, irrigation ditch:
534m, paving work: 5,416m2,
construction of pump facility: 1 set,
service water pipe laying work: 967m,
structure removal work: 1 set

Work period: October 2020 to January2022
Development area: 52,165m²
Site area: 52,165m²
Topsoil disposal: Approximately
39,000m2
Earthwork volume: Approximately
28,000m3 of excavation, approximately
35,000m3 of embankment
Slope shaping: 2,900m2
Concrete block retaining wall: 632.1m
L-type retaining wall: 92.8m
Inverted-T-type retaining wall: 179.0m
Soil improvement: 1 set
Drainage work: 1 set
Pavement work: 1,600m2

Okumura Corporation Annual Report 2021

BUILDINGS
Major Projects Completed

5

Hamanako Eden no Sono Nursing Home

Onagawa Town’s Elementary and Junior High Schools

Work period: December 2016 to July 2020(i) Expansion of Building No. 4: Structure: RC, Total floor space: 4,202m2(ii) New Buildings Nos. 1 and 2: Structure: RC, Total floor space: 9,098m2

Work period: December 2018 to July 2020
Structure: RC (partially steel)
Total floor space: 13,482.89m2

SEKISUI SEIKEI CO., LTD.’s Kanto Factory
Work period: April 2019 to February 2021
Structure: Steel
Total floor space: 15,372.40m2

Laurel i+ ABENOWork period: August 2018 to September 2020
Structure: RC
Total floor space: 6,714.14m2

Orders Received
GLP Nagoya Moriyama Project

Kokura Daiichi Hospital

Meiji Co., Ltd.’s Eniwa Plant

Work period: November 2020 to April
2022
Structure: Steel
Total floor space: 43,746.42m2

Work period: May 2020 to September
2021
Structure: Steel
Total floor space: 13,697.86m2

Work period: October 2020 to May
2022
Structure: Steel
Total floor space: Approximately
17,000m2

Tagawa City’s Tagawa Higashi
Junior High School
Work period: March 2021 to August
2022
Structure: RC
Total floor space: 8,650.62m2

Topics
Development of an AI-based Damage Detection System for Sewage Pipes
Okumura has developed a damage detection system that streamlines
inspection work for the inside of pipes, and ensures the quality of damage
detection in the maintenance and management of sewage pipes.
This system uses AI to conduct a television camera inspection witha wide-angle lens, detecting damaged areas inside of pipes. Footage
shot with the self-driving wide-angle television camera is unrolled intoa flattened image which is then segmented and fed into this system,
which uses AI to analyze the image and provide information about
pipe structure and damage. Instead of having to check the entire
length, engineers can focus on checking the analyzed results (which

6consist of unrolled images annotated with damage information, and alist of the acquired information) that are automatically generated by
the system. Not only does this reduce labor, it also contributes tobetter quality damage detection. The generated results can then be
used as documentation for inspection reports.
Going forward, Okumura will improve the functionality of thissystem with even greater detection accuracy and expand the range ofapplicable types and diameters of pipe, while actively proposing it as atechnology for accurate and efficient sewage pipe maintenance andmanagement work.

Field (field inspections)Inspection of inside of pipe

Inspection engineer

Video recording withwide-angle television camera

Inspection result
A

A’

Television camera vehicle

Sewage pipe
Pipe inspection camera

Desk (office work)

Situation inside pipe

Developed technology
AI-based detection of pipe structure and damage
Pipe structure detection

Damage detection

Unfolding pipe

Unrolled image creation

Legend:Attached pipes

Water intrusions

Breakage and cracks

Improvements and Functionality Enhancements of the Sound Environment Presentation System
Okumura has improved the mobility of its previously developed soundenvironment presentation system by making it possible to operate in acloud environment.
To address the difficulty for the untrained to recognize soundenvironment performance (such as resonation and insulation), which
is typically indicated with numerical values, the Company has
developed a system that creates and plays back sample sounds using
predictive calculations based on design specifications. Whereas theexisting system creates sample sounds using a laptop PC, the updated
system performs this task in the cloud, which boosts processing
speeds, allowing sample sounds to be created in real time whilereflecting specification changes that occur during discussions. The
system offers good portability, requiring only a mobile device andheadphones for listening. It can be used anywhere with internet
connection. This allows the engineer to create sample sounds in thecloud while being in a remote location, thus offering a high level ofmobility. Okumura will leverage the enhanced mobility of this system
by actively using it in discussions with project owners and designers,
VE proposals, and other scenes.

Okumura Corporation Annual Report 2021

Sponsorship of Osaka Women’s Marathon—Set Up a Blindfold Fence around the Course—
Okumura sponsored the 40th Osaka Women’s Marathon
held on Sunday, January 31, 2021.
In light of the rapid spread of COVID-19 since the end of
2020, various measures were put in place for this race toprevent the spread of infection, including changing thecourse from conventional route that passes through the
Osaka city streets to one that lapped the Nagai Park, andeven erecting a blindfold fence around most of the course
to avoid concentrated numbers of supporters gathering
along the route.
As the company tasked with the fence installation work,
Okumura displayed our true strength as a construction
company by safely erecting the fence along approximately
1.5km of route in the three days prior to the race. The
Company also contributed to the event’s success in ourrole as sponsor.

7

Photo: SANKEI SHIMBUN CO., LTD

Fence installation work
Photo: SANKEI SHIMBUN CO., LTD—Extending Sponsorship Commitment from 2022 to 2027—
Okumura has decided to continue sponsoring the Osaka Women’s Marathon for six more years from2022 to 2027.
The Company has supported the global strides of female athletes from Osaka as sponsor of the
Osaka Women’s Marathon since 2018. Okumura does this because it related to the fact that there aresome similarities between the athletes’ dedication to the race and its own employees’ determination to
overcome various difficulties and achieve their goal of successfully completing a construction project.
This is also the Company’s way of contributing to the development of its hometown Osaka through its
business and encouraging the active participation of women.
Through Okumura’s continued sponsorship activities for the Osaka
Women’s Marathon going forward, it aims to exhibit its own philosophy
and attitude and improve the brand recognition, as well as to bringexcitement to the streets of Osaka and help female athletes make huge
strides in their sport.

The 40th Osaka Women’s Marathon

Photo: SANKEI SHIMBUN CO., LTD

Osaka Women’s Marathon support website:
https://www.okumuragumi.co.jp/osaka-marathon/

Sponsorship of TOKYO GUITAR JAMBOREE 2020 RETURNS—Magnificent Artists Singing to the Guitar—
Okumura sponsored the J-WAVE TOKYO GUITAR JAMBOREE 2020 RETURNS supported by
Okumura Corporation event held in the Ryogoku Kokugikan hall on Saturday and Sunday,
December 26 and 27, 2020.
The Company has been sponsoring the Osaka Women’s Marathon since 2018, but it has longconsidered sponsoring cultural events to be just as important as sponsoring sports events interms of the opportunity they provide us to display Okumura’s corporate philosophy andattitude. It decided to sponsor this event even though it was held under thorough Covidrestrictions because, with little indication of when the COVID-19 pandemic will be brought
under control, Okumura wants to use the power of music to bring a little cheer and brightness
to the world.

Photo: J-WAVE Inc.

Consolidated Balance Sheet
Okumura Corporation and Consolidated Subsidiaries
March 31, 2021

ASSETS

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2021

2020

2021

¥ 20,130¥ 27,258$ 181,810

1,483

1,922

13,397

123

—

1,111

5,547

4,586

50,101

137,249

117,154

1,239,602

Current assets:
Cash and cash equivalents (Note 13)
Time deposits (Notes 13 and 15)
Marketable securities (Notes 4, 13 and 15)

8Receivables:
Trade notes (Note 13)
Trade accounts (Note 13)
Unconsolidated subsidiaries and associated companies (Note 13)
Other
Allowance for doubtful receivables (Note 13)
Inventories (Note 5)

661

34

5,973

10,6706,949

96,372

(153)

(190)

(1,386)

9,942

10,26889,796

Prepaid expenses and other

1,443

3,684

13,029Total current assets

187,095

171,665

1,689,805

Property, plant and equipment (Notes 6 and 7):
Land (Note 15)

34,40633,604

310,747

Buildings and structures (Note 15)

15,76014,865

142,338

Machinery and equipment

1,264

1,140

11,417

415

438

3,750

Furniture and fixtures
Lease assets (Note 12)
Construction in progress
Total property, plant and equipment

2

3

14

15,9689,506

144,22167,81559,556

612,487

67,127

57,130606,280

Investments and other assets:
Investment securities (Notes 4, 13 and 15)
Investments in and advances to unconsolidated subsidiaries and associated companies (Notes 13 and 15)

329

446

2,968

Long-term loans receivable (Note 13)

16

18

147

Asset for retirement benefits (Note 8)

4,974

4,068

44,923

4

2

39

438

468

3,956

Deferred tax assets (Note 10)
Goodwill
Other assets

3,176

3,547

28,681

Allowance for doubtful receivables (Note 13)(1,969)(1,981)(17,779)

Total investments and other assets
Total
See notes to consolidated financial statements.

74,09563,698669,215¥329,005¥294,919$2,971,507

Okumura Corporation Annual Report 2021

LIABILITIES AND EQUITY

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2020

2021

2021

Current liabilities:
Short-term bank loans including current portion of long-term debt (Notes 7, 12 and 13)

¥

7,460

¥

8,947

$

67,376

Payables:Trade notes (Note 13)

1,949

3,064

17,601

Trade accounts (Note 13)

45,09040,881

407,242

942

1,338

8,511

Advances received on construction projects in progress

15,713

12,599141,917

Income taxes payable

4,523

1,939

40,846

462

667

4,176

Other

Allowance for warranty work on construction projects
Allowance for losses on construction contracts
Deposits received (Note 15)

863

1,128

7,798

24,562

22,983

221,841

22,617

19,444204,272

124,181

112,990

1,121,580

Long-term debt (Notes 7, 12,13 and 14)

7,115

6,018

64,263

Non-recourse loans (Notes 7, 13, 14 and 15)

16,2289,221

146,572

Deferred tax liabilities (Note 10)12,431

10,216112,271

Other

1,086

362

9,805

Total long-term liabilities

36,86025,817

332,911

Total liabilities

161,041

138,807

1,454,491

19,83919,839179,181

Capital surplus

26,24026,248

236,997

Retained earnings

95,460105,554862,175(4,637)(19,761)(41,877)

30,95823,234

279,602(475)

46(4,292)

Other
Total current liabilities
Long-term liabilities:

Commitments and contingent liabilities (Note 15)

Equity (Notes 9, 16 and 17):
Common stock
authorized, 96,000,000 shares; issued, 39,665,226 shares*

Treasury stock—at cost
1,838,723 shares in 2021 and 7,836,832 shares in 2020*
Accumulated other comprehensive income (loss):
Unrealized gain on available-for-sale securities
Deferred gain (loss) on hedges
Defined retirement benefit plans
Total

1,753

1,365

15,83032,236

24,645291,140(1,174)(413)(10,600)

Total equity

167,964

156,1121,517,016

Total¥329,005¥294,919$2,971,507

Noncontrolling interests*The cancellation of treasury stock (6,000,000 shares) conducted on June 5, 2020 has been reflected in the number of shares.

9

Consolidated Statement of Income
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2021

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2021

2020

2021

¥220,712
189,232
31,480¥226,372
197,283
29,089$1,993,428
1,709,108
284,320

Selling, general and administrative expenses (Note 11)
Operating income

18,60012,88017,572
11,517

167,988
116,332

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

1,213
(366)
1,173
2,020

1,460
(208)
971
2,223

10,953(3,309)10,596
18,240

Income before income taxes

14,90013,740134,572

Income taxes (Note 10):
Current
Deferred
Total income taxes

5,802
(550)
5,252

3,602
434
4,036

52,404(4,972)47,432

9,648(637)¥ 10,285

9,704
(92)
9,796

87,140(5,754)
92,894

Net sales
Cost of sales
Gross profit

10

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

Per share of common stock (Notes 2.p and 17):
Basic net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

¥ 271.90
140.00¥$Yen

U.S. Dollars(Note 1)

¥ 258.01
143.00$ 2.46
1.26

Consolidated Statement of Comprehensive Income
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2021

Net income
Other comprehensive income (loss) (Note 16):
Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on hedges
Defined retirement benefit plans
Total other comprehensive income (loss)
Comprehensive income (loss)
Total comprehensive income (loss) attributable to:
Owners of the parent
Noncontrolling interests
See notes to consolidated financial statements.

Okumura Corporation Annual Report 2021

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2021

2020

2021

¥ 9,648¥ 9,704$ 87,140

7,724(1,043)388
7,069¥16,717(11,181)92(328)(11,417)¥ (1,713)

69,760(9,417)
3,503
63,846$150,986¥17,876(1,159)¥ (1,668)(45)$161,449(10,463)11

Consolidated Statement of Changes in Equity
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2021

Thousands

Millions of Yen
Accumulated othercomprehensive income (loss)

Number ofshares ofcommonstock
outstanding

12

BALANCE, APRIL 1, 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
Net income attributable to owners of the parent
Cash dividends, ¥139 per share
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock*
Net change in the year
BALANCE, MARCH 31, 2021

38,830——(1,002)0——37,828
—
—
(1)
0
—
—
37,827

Commonstock

Unrealized
gain onDefinedavailable- Deferred retirement
Capital Retained Treasury
for-sale gain (loss)
benefit Noncontrolling
surplus earnings
stock securities on hedges
interests
plans¥19,839 ¥25,330 ¥103,251 ¥(16,070) ¥34,415
—
—
9,796
—
—
—
—
(7,493)—————(3,691)
—
—
0
—
0
—

¥ —
—
—
—
—

¥1,693
—
—
—
—

—

—

—

—
—
—
— (11,181)
19,839 26,248 105,554 (19,761) 23,234—— 10,285———— (5,258)
—
—
—
—
—
(5)
—
—
(0)
—
0
—
—
(8) (15,121) 15,129
—
—
—
—
—
7,724
¥19,839 ¥26,240 ¥ 95,460 ¥ (4,637) ¥30,958

46
46
—
—
—
—
—
(521)
¥(475)

—

918

—

—

¥

Total
equity(57) ¥168,401
—
9,796
—
(7,493)—(3,691)
—
0
—

918

(328)
(356) (11,819)
1,365(413) 156,112——
10,285——(5,258)
—
—
(5)
—
—
0
—
—
—
388
(761)
6,830
¥1,753 ¥(1,174) ¥167,964

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

Commonstock

BALANCE, MARCH 31, 2020
Net income attributable to owners of the parent
Cash dividends, $1.26 per share
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock*
Net change in the year
BALANCE, MARCH 31, 2021

Unrealized
gain onDefinedavailable- Deferred retirement
Capital Retained Treasury
for-sale gain (loss)
benefit Noncontrolling
surplus earnings
stock securities on hedges
interests
plans$179,181 $237,070 $953,344 $(178,479) $209,842—— 92,894———— (47,490)
—
—
—
—
—
(45)
—
—
(0)
—
1
—
—
(73) (136,573) 136,646————— 69,760$179,181 $236,997 $862,175 $ (41,877) $279,602

See notes to consolidated financial statements.
*The Company cancelled some treasury stock (6 million shares) on June 5, 2020.

Total
equity$ 416 $12,327 $ (3,732) $1,409,969———
92,894———(47,490)
—
—
—
(45)
—
—
—
1
—
—
—
—
(4,708)3,503(6,868)61,687$(4,292) $15,830 $(10,600) $1,517,016

Consolidated Statement of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2021

Okumura Corporation Annual Report 2021

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2021

2020

2021

¥ 14,900¥ 13,740$ 134,572(3,284)
1,777
30(4,148)1,430
30(29,661)
16,046268(21,673)
536
(211)
(776)
3,114
(347)
5,958
(14,876)
24(20,707)(1,073)385
705(1,344)(1,401)
637(25,486)(11,746)(195,749)
4,842(1,903)(7,010)28,129(3,135)53,816(134,357)
215

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
Investment in loans receivableCollection of loans receivable
Other—net
Net cash used in investing activities

523
(111)
1,082
(10,507)
4
—
151
(105)
(8,963)

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

4,725(1,001)
9,769(94,895)
39
—
1,359
(948)
(80,952)

Financing activities:
Decrease in short-term bank loans—net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from non-recourse loans
Repayments of 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 provided by (used in) financing activities

(425)
1,100
(1,102)
7,070
(63)
(5)
0
(5,249)
—
398
(1)
1,723

(158)
—
(11)
9,221
—
(3,691)
0(7,473)369
447(3)(1,299)(3,836)
9,935(9,952)
63,855(570)(45)
0(47,410)
—
3,595
(11)
15,561

88(7,128)27,258¥ 20,13024(22,576)
49,834¥ 27,258

796(64,380)
246,190$ 181,810

Operating activities:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Changes in assets and liabilities:
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
Increase (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, 2021

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 2020 consolidated financial statements to conform to the classifications used in 2021.
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 ¥110.72 to$1, the approximate rate of exchange at March 31, 2021.
Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S.
dollars at that or any other rate.
2. Summary of Significant Accounting Policies
a. Consolidation — The consolidated financial statements
as of March 31, 2021, include the accounts of the Company
and its 3 (3 in 2020) 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 9 (10 in 2020) unconsolidated subsidiaries and 6 (5 in 2020) 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 be material.
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 2021

statements 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 4 to 17 years for machinery and equipment,
and from 2 to 15 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 ¥1 6,6 8 5 million($150,698 thousand) and ¥15,527 million as of March 31,
2021 and 2020, 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, an estimated loss on the contract should be immediately recognizedby providing for a loss on such construction contracts.
The revenues recognized by the percentage-of-completion method for the years ended March 31, 2021 and 2020
were ¥205,730 million ($1,858,114 thousand) and ¥211,805
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 isused to recognize deferred tax assets and liabilities for the
expected future tax consequences of temporary differences
between the carrying amounts and the tax bases of assets
and liabilities. Deferred taxes are measured by applying 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
currency forward contracts are utilized by the Group to

15

16

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, retroactively adjusted for stock
splits.
q. Accounting Policy Disclosures, Accounting Changes
and Error Corrections — Under ASBJ Statement No. 24,“Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections,” and ASBJ
Guidance No. 24, “Guidance on Accounting Standard for
Accounting Policy Disclosures, 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 policies and procedures which are adopted when the provisions of the relevant accounting
standards are not clear
Accounting for works by joint ventures formed in order totake orders and carry out the works jointly with several constructors are incorporated in the consolidated financial statements according to the proportion of investment equities.
On March 31, 2020, the ASBJ issued ASBJ Statement No.
24, “Accounting Standard for Accounting Policy Disclosures,

Accounting Changes and Error Corrections,” and the Company
applied the standard from the end of the fiscal year ended
March 31, 2021. Accordingly, the Company disclosed theaccounting policies and procedures which are adopted when
the provisions of the relevant accounting standards are notclear.
s. New Accounting Pronouncements
Accounting Standard for Revenue Recognition
The ASBJ issued ASBJ Statement No. 29, “Accounting Standard for
Revenue Recognition” and ASBJ Guidance No. 30, “Implementation
Guidance on Accounting Standard for Revenue Recognition”
on March 31, 2020 and March 26, 2021 respectively. The
core principle of the standard and guidance is that an entity
should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects theconsideration to which the entity expects to be entitled in
exchange for those goods or services. An entity should recognize revenue in accordance 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 future applicable 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,”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
Disclosures about Fair Value of Financial Instruments.”
To improve comparability with the international accountings t a n d a r d s , “ A c c o u n t i n g S t a n d a r d f o r F a i r Va l u e
M e a s u re m e n t ” a n d “ I m p l e m e n t a t i o n G u i d a n c e o n
Accounting Standard for Fair Value Measurement” (collectively “Fair Value Measurement Accounting Standards, etc.”
have been developed, and guidance and other rules havebeen established with regard to the method for fair value
measurement. The Fair Value Measurement AccountingStandards, etc. will be applicable to the fair value of the following items:·Financial instruments included in “Accounting Standard for
Financial Instruments”

Okumura Corporation Annual Report 2021

·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.
t. Additional Information
Accounting Estimates on the Impact of COVID-19
The Group is responding to the COVID-19 pandemic throughefforts to minimize the impact on its business activities andimplements measures to prevent infection with a focus on
avoiding the “Three Cs” (Closed spaces with poor ventilation, Crowded places with many people nearby and Closecontact setting such as close-range conversations). Measures
include implementing remote working at offices across Japanand effective use of online meetings based on the policies
and guidelines of national and local governments.
In this context, the Group expects the impact of thepandemic on the Group’s business will be limited and there
was no significant impact of COVID-19 on the accounting
estimates for the fiscal year ended March 31, 2021.
It is uncertain when COVID-19 will be contained andany significant changes in the business environment due tothe spread of COVID-19 might affect the accounting estimates in the following fiscal year onward.
3. Significant Accounting Estimates
Revenue Recognition and Allowance for Losses onConstruction Contracts in accordance with thePercentage-of-Completion Method(1) Amounts recorded in the consolidated financial statements for the fiscal year ended March 31, 2021
Millions of Yen

Construction revenue by thepercentage-of-completion
methodAllowance for losses on
construction contracts

Thousands of
U.S. Dollars¥205,730 $1,858,114
863

7,798

(2) Information about the contents of significant accounting
estimates on the identified items
1) Calculation method
Construction revenue by the percentage-of-completion
method are recorded by multiplying the total construction revenue by the percentage of completion if theoutcome of a construction contract is reliable (total
construction revenue, total construction costs and thestage of completion of the contract can be estimatedreliably) for the completed portion at the balance sheet
date. Percentage-of-completion is estimated by measuring the proportion of costs incurred for the completed
portion to total construction costs.

In addition, when it is probable that the total construction costs will exceed total construction revenue,
an allowance for losses on construction contracts will
be recorded at the expected excess amount (loss on
construction contracts) less the profit or loss alreadyrecognized.
2) Major assumptions
For example, in the event an agreement on consideration for changes in design or scope of a construction
are not timely finalized in the contracts and other documents, the total construction revenue is obtained byestimating consideration based on the details of thechange in works and other matters as instructed.
Total construction costs are estimated mainly considering the market conditions of materials and subcontract
costs and individual risk factors associated with theprogress of works.
These estimates and underlying assumptions are continuously reviewed.
3) Impact on consolidated financial statements for the following fiscal year
Individual construction contracts uncompleted as of theend of the fiscal year ended March 31, 2021 amounted to¥364,015 million ($3,287,704 thousand). Any changes inmajor assumptions might affect construction revenue
and allowance for losses on construction contracts inthe fiscal year ending March 31, 2022.
On March 31, 2020, the ASBJ issued ASBJ Statement No.
31, “Accounting Standard for Disclosure of Accounting
Estimates.” The Company applied this accounting standard
from the end of the fiscal year ended March 31, 2021,
and provided notes on significant accounting estimates.

17

4. Marketable and Investment Securities
Marketable and investment securities as of March 31, 2021 and 2020, consisted of the following:
Millions of Yen
2021
2020

Current:
Government and corporate bonds
Total

18

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

Thousands of
U.S. Dollars
2021

¥123
¥123

¥—
¥—

$1,111$1,111¥65,634—
1,493¥67,127¥55,605
122
1,403¥57,130$592,797—
13,483$606,280

The costs and aggregate fair values of marketable and investment securities at March 31, 2021 and 2020, were as follows:
Millions of Yen

March 31, 2021

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

Cost

Unrealized
Gains

Unrealized
LossesFair Value¥22,773¥42,883¥22¥65,634

123

1

—

124

Cost

Unrealized
Gains

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

122

2

—

124

Cost

Unrealized
Gains

Unrealized
LossesFair Value$205,682$387,314$199$592,797

1,111

11

—

1,122

Millions of Yen

March 31, 2020

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

Thousands of U.S. Dollars

March 31, 2021

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, 2021 and 2020 is asfollows:
Millions of Yen

March 31, 2021

Available-for-sale:
Equity securities

Proceeds

Realized
Gains

Realized
Losses

¥663

¥429

¥—

Proceeds

Realized
Gains

Realized
Losses¥1,921¥980¥—

Millions of Yen

March 31, 2020

Available-for-sale:
Equity securities

Okumura Corporation Annual Report 2021

Thousands of U.S. Dollars

March 31, 2021

Available-for-sale:
Equity securities

Proceeds

Realized
Gains

Realized
Losses$5,985$3,877$—The impairment losses on available-for-sale equity securities for the year ended March 31, 2021, was ¥146 million ($1,315
thousand).
The impairment losses on available-for-sale equity securities for the year ended March 31, 2020, was ¥430 million.

19

5. Inventories
Inventories at March 31, 2021 and 2020, consisted of the following:
Millions of Yen
2021
2020

¥4,874
715
3,376
977
¥9,942

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

¥5,410
593
3,102
1,163
¥10,268

Thousands of
U.S. Dollars
2021$44,0216,454
30,496
8,825$89,796

6. 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 ¥3,153 million ($28,481 thousand) and¥3,118 million for the years ended March 31, 2021 and 2020, 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,
2020

¥35,553
1,194¥36,747

Increase/
Decrease¥(226)(19)¥(245)March 31,2021

¥35,327
1,175¥36,502

Rental properties
Rental properties in part
Total

¥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

$321,111
10,781$331,892

Increase/
Decrease$(2,046)(171)$(2,217)

March 31,2020

¥64,324
1,996¥66,320

Thousands of U.S. Dollars
Fair Value

Carrying Amount

April 1,
2020

¥64,447
1,993¥66,440

Millions of Yen
Fair Value

Carrying Amount

April 1,
2019

March 31,2021

March 31,2021

$319,065
10,610$329,675

March 31,2021

$582,070
18,006$600,076

Notes:(1) Carrying amount recognized in the consolidated balance sheets is net of accumulated depreciation and accumulated
impairment losses, if any.
(2) Fair value of properties as of March 31, 2021 and 2020 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).

7. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans at March 31, 2021 and 2020, consisted of notes to banks and bank overdrafts. The annual interest rates
applicable to the short-term bank loans ranged from 0.7% to 1.0% at March 31, 2021 and 0.7% to 1.5% at March 31, 2020.
Long-term debt at March 31, 2021 and 2020, consisted of the following:

20

Loans from banks and other financial institutions, due serially to 2037
with interest rates ranging from 0.5% 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

2021

2020

2021

¥ 7,116
16,2282
23,346(3)¥23,343¥ 7,1189,221
3
16,342(1,103)¥15,239$ 64,269
146,57216
210,857(22)$210,835

Annual maturities of long-term debt, excluding finance leases (see Note 12), at March 31, 2021, were as follows:Year Ending March 31

Millions of Yen

2022
2023
2024
2025
2026
2027 and thereafter
Total

¥

2
2,547
5,850
1,295
2,409
11,241¥23,344

Thousands of
U.S. Dollars$

17
23,003
52,838
11,70021,755
101,528$210,841

Assets pledged as collateral for non-recourse debt
Millions of Yen

Thousands of
U.S. Dollars

2021

2020

2021

Amount of business assets of a consolidated subsidiary engaged in renewable energy¥17,163
business pledged as collateral for non-recourse loans¥10,228$155,015

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 2021

8. 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, 2021 and 2020, were as follows:

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

2021

Millions of Yen
2020

Thousands of
U.S. Dollars
2021¥19,619
1,165
98
(21)
(1,512)—¥19,349¥20,664
1,131
103
18
(1,928)(369)¥19,619$177,197
10,523886(192)(13,658)—$174,756

2021

Millions of Yen
2020

Thousands of
U.S. Dollars
2021¥23,687213
940
995(1,512)¥24,323¥23,805
214
(290)
1,886
(1,928)¥23,687$213,938
1,926
8,492
8,981
(13,658)$219,679(2) The changes in plan assets for the years ended March 31, 2021 and 2020, 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

2021

Millions of Yen
2020

Thousands of
U.S. Dollars
2021¥ 19,349(24,323)(4,974)—¥ (4,974)¥ 19,619(23,687)(4,068)—¥ (4,068)$174,756(219,679)(44,923)—$ (44,923)

2021

Millions of Yen
2020

Thousands of
U.S. Dollars
2021¥ (4,974)¥ (4,974)¥ (4,068)¥ (4,068)$ (44,923)$ (44,923)(4) The components of net periodic benefit costs for the years ended March 31, 2021 and 2020, were as follows:

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

2021

Millions of Yen
2020

Thousands of
U.S. Dollars
2021¥ 1,165
98
(213)
(366)
(37)
¥
647

¥ 1,131
103
(214)
(497)
(37)
¥
486

$ 10,523
886(1,926)(3,304)(333)$ 5,84621

(5) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans
for the years ended March 31, 2021 and 2020, were as follows:
2021

Actuarial gains (losses)
Past service costs
Total

22

¥596
(37)
¥559

Millions of Yen
2020¥(805)
332¥(473)

Thousands of
U.S. Dollars
2021$5,380(333)$5,047(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement
benefit plans as of March 31, 2021 and 2020, were as follows:
Millions of Yen
2021
2020

Unrecognized actuarial gains
Unrecognized past service costs
Total¥(2,230)(295)¥(2,525)¥(1,635)(332)¥(1,967)

Thousands of
U.S. Dollars
2021$(20,142)(2,667)$(22,809)(7) Plan assets
a. Components of plan assets
Plan assets as of March 31, 2021 and 2020, consisted of the following:
Debt investments
Equity investments
Life insurance general account assets
Others
Total

2021

2020

43%
12
31
14
100%

46%
8
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, 2021 and 2020, are set forth as follows:
Discount rate
Expected rate of return on plan assets

2021

2020

0.5%
0.9

0.5%
0.9

Okumura Corporation Annual Report 2021

9. 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10. 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, 2021 and 2020.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2021 and 2020, are as follows:

24

Deferred tax assets:
Impairment losses on securities
Accrued expenses
Write-down of inventories
Allowance for bonuses
Tax loss carryforwards
Allowance for doubtful accounts
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

2021

2020

2021

¥ 1,952
1,776
1,198
1,007
831
651
264
817
(5,616)2,880¥ 1,907
648
1,252
1,003
494
666
345
556
(4,625)2,246$ 17,632
16,037
10,821
9,097
7,501
5,881
2,386
7,381
(50,723)
26,013(12,080)(1,705)(1,522)(15,307)¥ (12,427)(9,334)(1,881)(1,245)(12,460)¥ (10,214)(109,101)(15,397)(13,747)(138,245)$ (112,232)

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, 2021 was as follows:
2021

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
(0.6)
0.9
(1.5)
5.1
0.2
35.2%

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.

Okumura Corporation Annual Report 2021

11. Research and Development Costs
Research and development costs charged to income were ¥1,667 million ($15,053 thousand) and ¥1,444 million for the years
ended March 31, 2021 and 2020, respectively.
12. 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, 2021 and 2020, were
¥1 million ($9 thousand) and ¥2 million, respectively.
Obligations under finance leases at March 31, 2021 and 2020, were as follows:

Due within one year
Due after one year
Total

Millions of Yen

Thousands of
U.S. Dollars

2021

2020

2021

¥1
1
¥2

¥1
2
¥3

$ 5
11
$16

(2) Operating leases
Future minimum lease receivables or payments under noncancelable operating leases at March 31, 2021 and 2020, 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

2021

2020

2021

¥ 2,370
14,495¥16,865¥ 2,391
15,975¥18,366$ 21,407
130,918$152,325

¥

¥

$

¥

88
784
872

¥

95
555
650

$

796
7,080
7,876

25

13. 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 not used 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 based on 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 the financial position of issuers on aregular basis. 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 14 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 2021

(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

Carrying
AmountMarch 31, 2021

Fair Value

Unrealized
Gain/Loss

Cash and cash equivalents and time deposits
Marketable securities
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

¥ 21,613
123
143,422(142)
143,280
65,634114(0)
114¥230,764¥ 21,613
124

¥ —
1

143,280
65,634——

114¥230,765(0)¥ 1

Short-term bank loans
Long-term bank loans
Non-recourse loans
Payables—trade notes and accounts
Lease obligation
Total
Derivatives (*2)

¥

¥

¥ —
(12)
(59)
—
(0)
¥(71)
¥ —

7,457
7,100
16,22847,0392¥ 77,826
¥
(950)

7,457
7,088
16,16947,0392¥ 77,755¥(950)

Millions of Yen

Carrying
AmountMarch 31, 2020

Fair 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—3

148¥206,685

1¥ 4

Short-term bank loans
Long-term bank loans
Non-recourse loans
Payables—trade notes and accounts
Lease obligation
Total
Derivatives (*2)

¥

¥

¥—
13
(14)
—
(0)
¥ (1)
¥—

8,945
6,000
9,221
43,945
3¥ 68,114
¥
246

8,945
6,013
9,207
43,945
3¥ 68,113¥
246

27

Thousands of U.S. Dollars

Carrying
AmountMarch 31, 2021

28

Fair Value

Unrealized
Gain/Loss

Cash and cash equivalents and time deposits
Marketable securities
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

$ 195,207
1,111
1,295,356(1,278)1,294,078
592,797
1,025
(1)
1,024
$2,084,217$ 195,207
1,122

$ —
11

1,294,078
592,797——

1,023$2,084,227

(1)
$ 10

Short-term bank loans
Long-term bank loans
Non-recourse loans
Payables—trade notes and accounts
Lease obligation
Total
Derivatives (*2)

$

$

$ —
(107)
(530)
—
(1)
$(638)$ —67,35364,125
146,572
424,84316$ 702,909$(8,584)67,35364,018146,042424,84315$ 702,271$(8,584)(*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 4.
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 the amountto be received at maturity, discounted at the Group’s assumed corporate discount rate, such as the rate of nationalbonds at maturity. Also, the amounts of the allowance for doubtful receivables are deducted from the fair values.
Short-term bank loans and payables—trade notes and accounts
The carrying values of short-term bank loans and payables—trade notes and accounts approximate fair value becauseof their short maturities.
Lease obligation
The fair value of lease obligation is 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 14.

Okumura Corporation Annual Report 2021

(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

2021

2020

2021

¥1,185¥1,280$10,699

523

423

4,726

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

March 31, 2021

Cash and cash equivalents and time deposits
Marketable securities
Receivables—trade notes and accounts
Long-term loans receivable
Total

Due in 1 Yearor Less¥ 21,613
124
121,904—¥143,641

Due after
1 Year through5 Years

Due after
5 Years through10 Years

Due after
10 Years——
21,51886¥ 21,604

¥—
—
—
28
¥28

¥—
—
—
17
¥17

Due after
1 Year through5 Years

Due after
5 Years through10 Years

Due after
10 Years

$ —
—
—
249
$ 249

$ —
—
—
150
$ 150

¥

Thousands of U.S. Dollars

March 31, 2021

Due in 1 Yearor Less

Cash and cash equivalents and time deposits
Marketable securities
Receivables—trade notes and accounts
Long-term loans receivable
Total$ 195,207
1,121
1,101,005—$1,297,333$——
194,350
773$195,123

Please see Note 7 for annual maturities of long-term debt and Note 12 for obligations under finance leases.

29

30

14. Derivatives
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 and 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, 2021 and 2020.
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¥(720)

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

(230)

4,000

4,000

Note2

Hedged item

Contract
amountContract
amount due
after one year

Fair value

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

Hedged item

Contract
amountContract
amount due
after one year

Fair value

Foreign currency forward contracts
Buying: U.S. Dollars

Foreign currency
denominatedforward contracts$433,162$433,162$(6,505)

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

Non-recourse
loansLong-termbank loans

177,601

177,601(2,080)36,127

36,127

Note2

March 31, 2021

Fair value

Millions of Yen

March 31, 2020

Thousands of U.S. Dollars

March 31, 2021

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 13.

Okumura Corporation Annual Report 2021

15. Commitments and Contingent Liabilities
Land in the amount of ¥21 million ($188 thousand) is pledged for a deposit received from a lessee related to a fixed-term landleasehold at March 31, 2021. Land in the amount of ¥1,458 million ($13,171 thousand) and buildings in the amount of ¥1,023
million ($9,235 thousand) are pledged as construction assistance funds pursuant to building lease contracts at March 31, 2021.
Marketable securities in the amount of ¥123 million ($1,111 thousand), investment securities in the amount of ¥16 million($143 thousand) and investments in and advances to unconsolidated subsidiaries and associated companies in the amount of¥62 million ($555 thousand) are pledged as collateral for the guarantee against defect of the house construction, contract performance obligation of the private finance initiative (PFI) business, and the loans of an affiliate, respectively, at March 31, 2021.
Time deposits in the amount of ¥1,133 million ($10,235 thousand) are pledged as security for performance obligation of construction contracts at March 31, 2021.
Assets pledged as collateral for non-recourse debts are business assets of a consolidated subsidiary engaged in renewableenergy business for the amount of ¥17,163 million ($155,015 thousand) at March 31,2021.
16. Other Comprehensive Income
The components of other comprehensive income (loss) for the years ended March 31, 2021 and 2020, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

2020

2021

¥10,754(284)
10,470(2,746)¥ 7,724¥(14,870)(550)(15,420)
4,239¥(11,181)$ 97,124(2,562)
94,562(24,802)$ 69,760¥ (1,197)—(1,197)154¥ (1,043)

¥

246
—
246
(154)
92

$(10,810)—(10,810)1,393$ (9,417)

¥

¥

24
(497)
(473)
145
¥ (328)¥(11,417)$ 8,684(3,637)5,047(1,544)$ 3,503$ 63,846

2021

Unrealized gain (loss) 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 gain (loss) on hedges
Gain (loss) 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)

962
(403)
559
(171)
¥ 388
¥ 7,069¥31

17. Subsequent Events
Appropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2021, was approved at the Company’s shareholders’ meeting
held on June 29, 2021:
Millions of Yen

Thousands of
U.S. Dollars¥3,896$35,189

Year-end cash dividends, ¥103 ($0.93) per share

32

18. 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. 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.”
3. Information about sales, profit, assets, liabilities and other items is as follows:
Millions of Yen
2021

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

Reportable segment
Investment
development
Total

Civil
engineering

Architectural
construction¥ 104,699¥ 105,107¥ 5,103—
104,699
9,239—
105,107
1,045

35
5,138
2,082

617
—

¥ 436
30

¥

679
—

¥

Other
(Note 1)

Total

¥ 214,909¥ 5,803¥ 220,712

35
214,944
12,366

562
6,365
455

597
221,30912,821

¥

1,732
30

¥

52
—

¥

1,784
30

Reconciliations(Note 2)

Consolidated(Note 3)¥—

¥ 220,712

(597)
(597)
59

—
220,712
12,880

¥

(7)
—

¥

1,777
30

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

Civil
engineering

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

35
4,827
2,139

506
—

¥ 408
30

¥

474
—

¥

Other
(Note 1)

Total

¥ 221,698¥ 4,67435
221,733
11,085

1,947
6,621
552

¥

1,388
30

¥

49
—

Reconciliations(Note 2)

Consolidated(Note 3)

¥ 226,372¥—¥ 226,372

1,982
228,354
11,637(1,982)(1,982)(120)—
226,372
11,517

¥

1,437
30

¥

(7)
—

¥

1,430
30

Okumura Corporation Annual Report 2021

Thousands of U.S. Dollars
2021

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

Reportable segment
Investment
development
Total

Civil
engineering

Architectural
construction$ 945,615$ 949,303$ 46,095—
945,615
83,445—949,303
9,439

315
46,41018,802

5,572—$ 3,939
268

$

6,126
—

$

Other
(Note 1)

Total

$ 1,941,013$ 52,415$ 1,993,428

315
1,941,328
111,686

5,077
57,492
4,111

5,392
1,998,820
115,797$

15,637
268

$

472
—

$

16,109268

Reconciliations(Note 2)

Consolidated(Note 3)$—

$ 1,993,428(5,392)(5,392)535—
1,933,428
116,332

$

(63)
—

$

16,046
268

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 ¥59 million ($535 thousand) and ¥(120) million for the years ended March
31, 2021 and 2020, 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, 2021, 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, 2021, 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.
Key Audit Matter
A key audit matter is a matter that, in our professional judgment, was of most significance in our audit of the consolidated
financial statements of the current period. The matter was 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 the matter.
Revenue recognition by the percentage-of-completion method
Key Audit Matter Description
As described in Note 2.m. “Summary of Significant Accounting
Policies - Construction Contracts” to the consolidated financial
statements, construction revenue and construction costs arerecognized by the percentage-of-completion method.
Revenues recognized by the percentage-of-completion method were JPY 205,730 million out of total construction revenueof JPY 209,805 million for the current year.
As described in Note 3. “Significant Accounting Estimates”,
when applying the percentage-of-completion method, revenues are recognized multiplying the total construction
revenue by the stage of completion of the contract, which is
calculated as a percentage of actual costs incurred at the balance sheet date. The measurement of the total construction
revenue, the total construction costs and the stage of completion of the contract involve significant estimates andjudgments made by management.
The reliability of estimating the total construction revenue
and the total construction costs in applying the percentageof-completion method has a significant impact on the
consolidated financial statements, where a higher estimation
uncertainty may exist in relation to the following matters:

How the Key Audit Matter Was
Addressed in the Audit
Based on our understanding of the business environment
surrounding the Group and its industry, we evaluated thedesign and operating effectiveness of controls, including
Information Technology controls, over the process of revenue
recognition by the percentage-of-completion method. Our
processes related to estimating total construction revenue
and total construction costs were as follows:(1) Estimating total construction revenue
We performed inquiries and inspected related documents
to test the effectiveness of controls related to the determination of the uncontracted amount. This included
approval of the reports on uncontracted projects preparedby estimating the contract amount for the agreed changes in each construction project, and monitoring activities.
(2) Estimating total construction costs
We performed inquiries and inspected related documents
to test the effectiveness of controls related to approval of
the reports on working budget, construction projects andcosts incurred to date, and monitoring activities.

Okumura Corporation Annual Report 2021

Revenue recognition by the percentage-of-completion method
Key Audit Matter Description(1) Estimating total construction revenue
During construction, when changes in the design or scopeof construction are agreed with customers but the construction contract has not been revised to update thecontract amount in a timely manner, total construction
revenue may be revised using the estimated contract
amount based on initial agreement (the “uncontracted
amount”). The estimate of total construction revenue bymanagement may affect the accuracy of the construction
revenue.
(2) Estimating total construction costs

How the Key Audit Matter Was
Addressed in the Audit
In addition, we assessed the reasonableness of the construction revenue determined using the percentage-of-completion
method by performing an analysis of the quarterly progressof revenues and gross profits against the business plan ineach branch office. Such analysis identified branch offices
with significant fluctuations in revenues and profit margins
near the end of the period. We also inspected related documents, performed inquiries of construction managers,
performed site observations for construction projects thatpossessed characteristics such as significantly higher or lower
profit margins ratio, large fluctuating profit margins ratio,
deficit projects, projects with large uncontracted amounts, orlarge-scale projects.
Specifically, for the estimate of total construction revenue
and total construction costs, we performed the following:

It may be necessary to modify total construction costs due
to unexpected events, changes in market conditions suchas materials and subcontracting costs, and construction ina rush responding to potential delays during construction. (1) Estimating total construction revenue
If total construction costs are not updated in a timely
We tested the uncontracted amount by inspection of docmanner, or if management’s estimate is not reasonable, ituments underlying the estimate, reviewed meeting
may affect the accuracy of the construction revenue andminutes with customers and inquiries of construction
the allowance for losses on construction contracts.
managers.
We determined revenue recognition by the percentage-ofcompletion method to be a key audit matter because of the
In addition, for construction projects that contained
possible significant impact of accounting estimates of total
uncontracted amounts in the prior year, we inspected
construction revenue and total construction costs on the conrevised construction contracts signed in the current year,
solidated financial statements.
and compared the updated amounts in the contracts withtotal construction revenue estimated in the previous year.
(2) Estimating total construction costs
For samples of construction projects selected, we compared total construction costs with the original estimate
identifying the reason for the change, inspected the orderconfirmation for purchase orders issued, quotation orunderlying documents for the order, performed inquiriesof the construction managers, and inspected the vendor
invoices, as necessary.

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 accordance withaccounting 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, 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.

35

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain 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 judgment. In
addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting 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.

36• 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.
From the matters communicated with Audit & Supervisory Board members and the Audit and Supervisory Committee, we
determine those matters that were of most significance 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 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 29, 2021
Member of
Deloitte Touche Tohmatsu Limited

Breakdown of Orders (Nonconsolidated)
Okumura Corporation
Year Ended March 31, 2021

Okumura Corporation Annual Report 2021

Construction Orders Awarded

2021

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

42.3

38,37390,840—129,213100 %69,316
141,520
8,027¥218,863

Composition
ratio

Millions of
Yen

48.5%

¥ 69,240
28,552
2,354
100,14648.7

12,258104,502—116,760

97.2
2.8
100 %

81,498133,0542,354
216,906
5,521¥222,427

Composition
ratio

Millions of
Yen

54.1%

¥ 86,511
72,88813,908173,30745.9

49,056129,233—
178,289

100 %

135,567
202,121
13,908¥351,596

125,827
95,410987¥222,224
2021

Millions ofYen¥ 66,405
36,501
1,793
104,699
23,71281,395—
105,107
90,117
117,896
1,793
209,806
5,977¥215,783

Year-end Backlog¥113,225
70,512
13,102
196,839
58,053
109,123—
167,176
171,278
179,635
13,102¥364,015

Composition
ratio

Thousands of
U.S. Dollars

41.0%$ 841,028
308,213
8,914
1,158,155

59.0

295,416
553,512—
848,928100 %

1,136,444
861,725
8,914$2,007,083

Composition
ratio

Thousands of
U.S. Dollars

45.0%$ 599,755
329,671
16,189945,61552.5

214,162
735,141—
949,303

97.5
2.5
100 %

813,917
1,064,812
16,1891,894,918
53,986$1,948,904

Composition
ratio

Thousands of
U.S. Dollars

49.3%$1,022,621
636,852
118,334
1,777,807

50.7

524,319985,578—
1,509,897

100 %

1,546,940
1,622,430
118,334$3,287,704

2021

2020

2021

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

57.7%

¥ 30,943
50,6808,027
89,65032,70861,285—93,993

Net 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¥ 93,11934,125987
128,231

2021

2020

Composition
ratio

2021

2020

37

Network

Head and Branch Offices

38

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

Board of Directors

Investor Information(As of June 29, 2021)(As of March 31, 2021)

Directors

Corporate Data

President and Representative Director
Takanori Okumura
Representative Director
Atsushi Tanaka

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
Toru Osumi
Masahiro Kaneshige
Tamotsu Tsuchiya

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.

39

Group Employees
2,138

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

Executive Officers
Shareholder

Executive Vice Presidents
Yuichi Mizuno*
Hajime Kosaka
Senior Managing Executive Officers
Osamu Harada
Shunso Iijima
Managing Executive Officers
Kenji Kotera*
Atsushi Tanaka*
Hiroyuki Hayashi
Toru Osumi*
Kazuyuki Yoshimi
Masahiro Kaneshige*
Wataru Onishi
Tamotsu Tsuchiya*
Executive Officers
Takanori Hayashi
Naoki Magoori
Hirohide Taniguchi
Nobuyasu Kawai
Sawayuki Kawatani
Yoshinori Yasui
Kunitake Konishi
Nobuharu Suga
Yasuhiko Goto
Yoshihiko Wakimoto

Hiroki Machida
Kazuyoshi Okuma
Hiroyuki Matsushima
Akira Sasaki
Takami Nakada
Koji Furusawa
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)

3,154

8.34%

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

2,466

6.52

Okumura Employees’
Shareholding Association

1,703

4.50

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

1,335

3.53

Custody Bank of Japan,
Ltd. (Trust Account)

1,224

3.24

Resona Bank, Limited.

1,214

3.21

Sumitomo Realty &Development Co., Ltd.

1,210

3.20

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

792

2.09

Nippon Life Insurance Company

643

1.70

The Bank of New York,
Treaty Jasdec Account

591

1.56

Note:
1. The Company holds 1,838,723 shares of treasury stock, which are excluded
from the above.
2. Shareholding ratio is computed excluding treasury stock.

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

Printed in Japan