OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692
http://www.okumuragumi.co.jp

OKUMURA CORPORATION
Annual Report 2007

Printed in Japan

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

Contents

01 Financial Highlights
02 To our Shareholders
04 Review of Operations
06 Topics in the Fiscal Year to March 200708 Consolidated Balance Sheets
10 Consolidated Statements of Income
11 Consolidated Statements of Changes in Net Assets
12 Consolidated Statements of Cash Flows

13 Notes to the Consolidated Financial Statements
25 Report of Independent Auditors
26 Non-Consolidated Balance Sheets
28 Non-Consolidated Statements of Income
29 Breakdown of Orders (Non-Consolidated)
30 Network
31 Board of Directors / Investor Information

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 clientsand other factors, and involve risks, variables and uncertainties. The Okumura Group’s actual performance results may differ fromthose projected in this Annual Report. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts,
projections or predictive statements contained herein.

Board of Directors

Investor Information(As of June 28, 2007)(As of March 31, 2007)

Directors and Auditors

Corporate Data

President & Representative Director
Takanori Okumura
Representative Directors
Yuichi Kanbara
Shigeru Nishinaka
Directors
Kunimoto Tanaka
Yoshihiko Kunii
Masakuni Sakurai
Kohei Tanaka
Hiroki Mizobe
Takaiku Hirako
Standing Statutory Auditors
Yoshitaka Mikata
Shojiro Sumikura
Auditors
Hanroku Toriyama
Kiyoshi Inazaki
Teruyasu Kawamata
Note: Hanroku Toriyama, Kiyoshi Inazaki, and Teruyasu Kawamata are outside
auditors.

Executive Officers
Executive Vice Presidents
Yuichi Kanbara*
Shigeru Nishinaka*
Senior Managing Officers
Kunimoto Tanaka*
Yoshihiko Kunii*
Masakuni Sakurai*
Kohei Tanaka*
Hiroki Mizobe*
Managing Officers
Tadashi Hashimoto
Yoshikuni Ogi
Masamichi Shirahase
Yoshiteru KinoshitaKazuo Okuda
Executive Officers
Kozo Tsukamoto
Akiyoshi Hida
Takumi Makino
Kenichiro Minami
Takaiku Hirako*
Masanori Eguchi
Kazuo Takami
Koji Imai
Norimasa Takahashi
Toshio Yamaguchi
Tetsuo Ojima
Kozo Aoki
Kazuhiro Kitazaki
Shinichi Okamoto
Hiroyuki Ito
Toshiharu Shimizu

Head Office
OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692
EstablishedFebruary 22, 1907
Capital¥19.8 billion
Group Employees
2,575

Stock Information
Stock Exchange Listings
Tokyo and Osaka
Transfer Agent
The Sumitomo Trust and Banking Co., Ltd.
Major Shareholders
Shares held
(thousands)

Percentage oftotal

Okumura Corporation(Treasury stock)

28,16512.34%The Master Trust Bankof Japan, Ltd. (Trust Account)

8,745

3.83%

Okumura Employees’
Shareholding Association

8,048

3.52%

Resona Bank, Limited.

6,074

2.66%

Sumitomo Mitsui Banking
Corporation

5,568

2.44%

Sumitomo Realty &Development Co., Ltd.

5,132

2.25%

Japan Trustee Services
Bank, Ltd. (Trust Account)

4,804

2.10%

Nippon Life Insurance Company

4,593

2.01%

JP Morgan Chase Bank 380084

4,237

1.86%

BBH 493025 Black Rock
Global Allocation

4,158

1.82%

Shareholder

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

31

Financial Highlights

For the years ended March 31

2005

2006

Consolidated (Note 1):

2007

2007
Thousands of
U.S. Dollars(Note 2)Millions of Yen

Net sales
Operating income
Net income
Total assets
Total net assets (Note 3)

—
—
—
—
—

¥269,888
3,889
4,161
437,155
185,414

Per Share:¥227,770
1,416
4,124
415,647
182,903$1,929,436
11,99434,9313,520,941
1,549,372
U.S. Dollars(Note 2)

Yen

Basic net income—¥20.27

Non-Consolidated:¥20.51$0.17
Thousands of
U.S. Dollars(Note 2)Millions of Yen

Net sales
Operating income
Net income
Total assets
Total net assets (Note 3)¥225,543
3,806
3,761
423,430
162,834¥266,836
3,953
4,110
433,530
181,877

Per Share:¥225,217
1,534
4,115
412,259
179,494$1,907,814
12,99734,8563,492,237
1,520,491
U.S. Dollars(Note 2)

Yen

Basic net income¥18.11¥20.02¥20.47$0.17

Notes: 1. Prior-year comparative financial statements are not shown, since the consolidated financial statements are adopted from the last year.
Notes: 2. The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated
from yen at the approximate exchange rate in Tokyo on March 31, 2007, of ¥118.05=U.S.$1.
Notes: 3. Total net assets = total shareholders’ equity + valuation and translation adjustments + minority interests.

Net Sales

Net Income

Total Net Assets(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

5,000

300,000

200,000

4,000
150,000
200,000
3,000
100,000
2,000
100,000
50,000
1,000

0

0

2005

2006

2007

Non-Consolidated
Consolidated

0

2005

2006

2007

Non-Consolidated
Consolidated

2005

2006

2007

Non-Consolidated
Consolidated1

To Our Shareholders

We would like to thank our shareholders for their continuing support and encouragement, and wewish each of them the greatest success in their own range of endeavors.
A general overview of business performance for the period to March 2007 (April 1, 2006 to
March 31, 2007) is provided in the following sections.

Fiscal 2007 Results
Despite continued weakness in consumer spending during the period under review, the Japanese
economy remained on the road to gradual economic recovery thanks to growth in corporate profitability and continued favorable investments in plants and facilities. In the construction industry,
continuing reduction in spending on public works projects has led to frequent low-priced bidding
for existing projects, a trend that has carried over to private-sector projects. This increase in competition means that there will be no letup in the intense competition that continues to characterize
conditions in the construction industry.
Under these circumstances, the Company achieved consolidated net sales of ¥227,770 million, consolidated gross profit of ¥23,719 million, consolidated operating income of ¥1,416 million
and consolidated net income of ¥4,124 million.
On a non-consolidated basis, order received from the public sector declined 4.6%, while private-sector orders grew by 2.5% from the previous fiscal year. Combined orders from the two sectors came to ¥244,876 million, posting a modest increase over the previous fiscal year.
In terms of overall results, on a non-consolidated basis net sales, including sales from the realestate business, came to ¥225,217 million, down 15.6% from the previous fiscal year. As a result,gross profit came to ¥23,388 million and operating income to ¥1,534 million, declines of 11.1%
and 61.2%, respectively. However, profits of ¥2,925 million accruing from sales of investments
helped raise net income slightly above the previous fiscal year to ¥4,115 million.
Based on the corporate policy for profit sharing, Okumura paid a regular dividend of ¥10 anda corporate centenary dividend of ¥10 per share, for a combined total of ¥20 per share for theyear under review.

2

Looking Ahead and Key Strategies
While the Japanese economy is expected to remain on the road of gradual economic recovery,
conditions in the construction industry are expected to remain harsh due to several factors that
include excess supply, ongoing reductions in public-sector spending and increasing labor costs.
Okumura’s approach to harsh economic conditions is to take steps to improve competitiveness in the area of civil engineering and construction projects, maintain and increase market share,
secure profits and boost overall business performance. The Company is focusing on current new
construction projects and working to promote a new “renaissance” in the civil engineering field aspart of a new initiative.
In its operations, Okumura will focus on enhancing the range of marketable technology
options and price competitiveness in the area of civil engineering. Steps will be taken to strengthen
competitiveness by focusing on advanced seismic isolation, high-rise building, and acoustic simulation technologies in the area of building construction. In other areas, the Company will work vigorously to promote development projects in the environmental and private finance initiative (PFI)
fields.
To boost profitability, Okumura will take steps to improve the framework for channeling thefull range of corporate resources for reducing costs and developing value engineering (VE). This
framework is expected to boost overall profitability.
In the area of the Company’s organization, Okumura will take steps to better meet customer
needs by implementing its integrated management system that encompasses the sales and engineering divisions.
In the area of corporate compliance, we wish to express our profound regret over the factthat the Company and one of its employees were indicted by the Nagoya District Public
Prosecutor’s Office in March 2007 for a violation of the Antimonopoly Law with regard to construction project commissioned by the City of Nagoya’s Traffic Bureau.
Okumura has made compliance with government rules and regulations and the promotion of
fairness in business competition a key element of its corporate code of conduct and accordingly
has provided guidance and training to both management and employees. Nevertheless, theCompany will strengthen its policies and training concerning corporate compliance to ensure thatsuch problems do not occur again.
For the future, the Company will apply all of its resources in the quest to respond quickly andflexibly to shifting trends and the changing operating environment, and thereby build a strong
business foundation in accordance with its corporate philosophy that has endured through theyears. This will enable it to maintain the trust and confidence of its shareholders.
The Company looks forward to the continued support and patronage of its shareholders.

June 2007

Takanori Okumura
President and Representative Director

3

Review of Operations

Major Projects Completed
BUILDINGS

Kumano Kodo Center,
Mie PrefectureHome Center Kohnan,
Sagamihara Oyama MallWork period: August 2005 to
December 2006
Structure: Wooden structure
Total floor area: 1,721m2

Work period: June 2005 toApril 2006
Structure: S
Total floor area: 65,475m2

City Tower Gran Tennoji
Work period: October 2004 to February 2007
Structure: RC with partial S structure (seismic isolation structure)
Total floor area: 38,867m2
BUILDINGS

Chiba City Mihama Culture
Hall, Health and Welfare
CenterWork period: September 2004 to
February 2007
Structure: SRC with partial S structure
Total floor area: 8,200m2

4

CIVIL ENGINEERINGNew Construction Project for
the Shin-Taishakugawa
Hydroelectric Power Station(Phase II)
Work period: May 2003 to April 2006
Headrace tunnel: L = 4,035m
Surge tank: Inner diameter 5m x H45.2m
Power plant in semi subterranean:
11,000kw W17.4m x L12m x D20.5m

Kabutoyama Reservoir
Construction WorkWork period: January 2003 to March 2007
Reservoir Construction: RC structure
Reservoir No. 1: 80.1m x 90.5m x 6.0m
Reservoir No. 2: 96.6m x 81.0m x 6.0m
Concrete: 45,273m3
Facility removal work: 14,115m3
Incidental piping work
Temporary pier construction: 6,426m2
Work on underwater discharge structure

Civil Engineering Works in
the Section of Takada B lineof Tokyo Metro Subway line
No.13
Work period: January 2004 to September
2006
Earth pressure balanced shield method
Outer diameter of the shield: 6,750mm
Internal diameter of segment ring: 5,960mm
Total length: 1,245m

Orders Received
BUILDINGS

Park House Presia Tower
Work period: January 2007 to July 2009
Structure: RC (seismic isolation structure)
Total floor area: 37,492m2
Residential units: 315

Keihan East Rose Town,
Finegarden SquareWork period: September 2006 to March2009
Structure: RC
Total floor area: 80,841m2
Residential units: 630

City Tower Osaka Fukushima
Work period: October 2006 to March 2009
Structure: RC
Total floor area: 36,916m2
Residential units: 349

Koganei Redevelopment
Project, Second Stage(First Half)
Work period: February 2007 to
January 2009
Structure: S•SRC
Total floor area: 21,670m2
Multipurpose duct
(underground conduit: 175m)

CIVIL ENGINEERING

Construction Works for the
Taipei Metro Songshan Line,
CG590B Section
Work period: August 2006 to
December 2014
Total construction length: 1,935m(Shielding work: 975m; station area:
500m; excavation length: 460m)
Station section: G18 station, G19 Station
Shield section: Outside diameter of theshield: ø6,240mm; total 4 lines(inbound/outbound) 2,040m (702m x 2 +318m x 2)

Route 45 Shin-Karakuwa
TunnelWork period: December 2006 to
March 2010
NATM method
Tunnel drilled length: L = 2,039m
Cross-section: A = 75.1 to 91.8m2
Concrete lining: L = 2,039m
Invert work: L = 113m

Chuo Line Railway Viaductbetween Kunitachi andTachikawaWork period: August 2006 to January 2009
Total length = 1,050.5m
Rigid-frame elevated bridge (RC): 2 lines/2
pillars with 3 to 4 span-length; 19 units
PRC elevated bridge: 2 lines/2 pillars with
3 span length; 1 unit

Excavation Work for theFoundation of the Shimane
Nuclear Power Plant No. 3 Main
Station, and Construction Workfor the Intake and Discharge
Structure in the Land Area
Work period: July 2006 to December 2009
Rock drilling: 680,000m3
Rock bolts: 3,700 pieces
Ground anchor: 4,300m
Reclamation work: 950,000m3
Intake channel: L=80m
Intake chamber: L=62m
Discharge channel: L=70m
Discharge chamber: L=36m

5

Topics in the Fiscal Year to March 2007

1: Illustration of the Okumura continuous slurry dewatering system

2: Example of the power bolt construction method utilizing steel tubing

3: Tohoku Shinkansen Hakkoda

4: column with seismic isolation

4: Tokyo Head Office Building

Tunnel

1: Okumura Develops the Okumura
Continuous Slurry Dewatering System
Based on Technology for Efficiently
Dewatering Soil Dredged from Dam
Reservoirs
This newly developed continuous slurry
dewatering system is capable of efficiently
and economically solidifying soil dredged
from dam reservoirs. Adoption of the vertical screw press configuration has solved
the long-running challenge of reducing
installation space while enhancing thequality of solidified soil and reducing manpower and processing costs. (April 2006)

6

4: Visiting television program crew

device installed

structure for tunnels built in mountainous
areas. The power bolt construction method
was put into practical application in a tunnel constructed in Niigata Prefecture toconfirm its effectiveness.
This new tunnel support structure offers
significantly improved rigidity and flexibility(to adjust to changes) capable of resisting
deforming pressures from all directions by
employing a three-dimensional supporting
action. This method offers the stability
needed in mountainous regions and canbe installed efficiently. (May 2006)

2: Development and Application of the New
Power Bolt Construction Method
Providing Support Structures to Prevent
Tunnel Deformation

3: Okumura Awarded the Japan Society of
Civil Engineers Technology Prize for 2005
for the Hydraulic Press Pipeline Sectionof Tokyo Electric Power’s Kannagawa
Power Plant and the Tohoku Shinkansen
Hakkoda Tunnel

This construction method prevents deformation of tunnel walls using a unique steel
tubing-based structure as the support

Okumura was awarded the Japan Societyof Civil Engineers Technology Prize (GroupI) for 2005 for the two construction proj-

ects identified above. The award was presented at the May 26, 2006 General
Meeting of the Japan Society of Civil
Engineers.
List of Achievements• Japan’s first full-face inclined shaft tunnel
boring machine (TBM) and hydraulicpress pipeline using HT100 high tensile
steel
Okumura built the hydraulic press
pipeline section for the Tokyo ElectricPower Co., Inc.’s Kannagawa Power
Plant, the world’s largest pump-style
power plant• Construction of the world’s longest landtunnel (Tohoku Shinkansen Hakkoda
Tunnel) (May 2006)

4: Okumura Tokyo Head Office Building Is
Made Earthquake-Resistant While the
Office Building Is in Use
The Company conducted an “earthquake
retrofit” construction project to make a

5: Okumura Menshin Times

6: Shonan Eco Center

base-isolated building while it was being
used at Okumura's Tokyo Head Officebuilding located in Minato Ward. This
earthquake retrofit method involves theinstallation of seismic isolation devices tothe footing or columns of the building oron certain floors above ground of existingbuildings. Retrofit of existing buildings
with seismic isolation technology enhances
disaster prevention, business continuity
and provides the most important andsecure base for recovery activities.
As many as 500 customers participated in
the site tour of the ongoing construction,
gaining a better understanding of thistechnology. The project also garnered useful PR when it was covered by the World
Business Satellite program, part of the economic news information provided by TV
Tokyo. (From July 2006)

7: City Tower Gran Tennoji

5: New Tabloids (Okumura Menshin Times) asa Seismic Isolation Technology PR Tool
The Okumura Menshin Times was issued
as a new tool to provide useful public relations for seismic isolation technology. This
tabloid is designed to provide timely promotion for Okumura's activities by introducing the examples of construction
projects and the technology being used.
An effective PR campaign is also currently
underway with pamphlets (Okumura
Menshin Book), the Okumura Menshin
DVD and a seismic isolation technology
section in the Okumura website (Okumura
Menshin Web). (September 2006)

6: Shonan Eco-factory PFI Corporation
Launched for Constructing and Operating
an Organic Material Recycling Center

in which the Company is a partner, commenced operations in December 2006. The
Shonan Eco Center is designed to recycle
livestock waste, pruned-off branches andfood residue. (December 2006)

7: 43-Story, Earthquake-Resistant City
Tower Gran Tennoji Apartment Building
Completed
Okumura has completed the structuraldesign and construction of City Tower
Gran Tennoji, a 43-story (aboveground),
161-meter, high-rise apartment block. The
building incorporates the latest advances inseismic isolation technology, offering
greater stability during earthquakes andimproved resistance to movement duringstrong winds for enhancing quality of habitation. (February 2007)

The Shonan Eco Center, built in Fujisawa
City, Kanagawa Prefecture as a PFI projectby the Shonan Eco-factory PFI Corporation,*The photos correspond to the number in the body text.

7

OKUMURA CORPORATION

Consolidated Balance Sheets
Okumura Corporation and Consolidated Subsidiaries
As of March 31, 2006 and 2007ASSETS

Current assets:
Cash and time deposits (Notes 5 & 9)
Trade notes and accounts receivable (Note 14)
Short-term investments (Notes 5 & 6)
Inventories:
Accumulated costs of uncompleted contracts
Other inventories
Deferred income taxes (Note 10)
Other accounts receivables
OthersLess: Allowance for doubtful accounts
Total current assets

Property and equipment (Note 9):
Buildings
Machinery and equipment
Land
Construction in progress
Less: Accumulated depreciation
Total property and equipment

Investments and other assets:
Investments in securities (Notes 6 & 9)Long-term receivables
OthersLess: Allowance for doubtful accounts
Total investments and other assets
Total assets

8

Millions of yen

Thousands of
U.S. dollars(Note 2)

2006

2007

2007

¥ 53,760
84,3437,819¥ 45,523
70,631
6,211$ 385,628
598,31252,614113,982
8,848
13,352
23,984
4,038(4,742)
305,384

120,496
9,046
11,30926,2473,141(3,844)
288,760

1,020,718
76,633
95,800222,336
26,609(32,566)
2,446,084

13,394
10,19415,001
113(18,513)
20,18913,525
9,934
16,417829(18,408)
22,297

114,572
84,152139,065
7,025(155,934)
188,880

103,979
2,517
5,126
(40)
111,582¥437,155

96,945
2,756
4,928
(39)
104,590¥415,647

821,215
23,344
41,746(328)
885,977$3,520,941

Millions of yen

Thousands of
U.S. dollars(Note 2)

2006

2007

2007

Current liabilities:
Trade notes and accounts payable (Note 14)
Short-term loans including current portion of long-term debt (Notes 7 & 9)
Accrued income taxes (Note 10)
Advances received on uncompleted contracts
Allowance for repairs
Allowance for warranty work on construction projects
Allowance for construction loss
Others (Note 4 (8))
Total current liabilities¥ 98,267
12,431
242
88,490
236
696
1,945
21,531
223,838¥ 93,596
12,198490
79,136
133
455
2,150
19,673
207,831$ 792,848
103,327
4,152
670,3631,131
3,851
18,216
166,648
1,760,536

Long-term liabilities:
Long-term debt (Notes 7 & 9)
Deferred income taxes (Note 10)
Accrued severance indemnities (Note 8)
OthersTotal long-term liabilities
Total liabilities

583
19,4297,877
1427,903
251,741495
17,8756,529
14
24,913
232,744

4,189
151,41955,305120
211,033
1,971,569

19,83925,326112,974

19,83925,328115,033

168,055
214,555
974,437(10,824)
147,315
36,374
1,725
185,414¥437,155(12,172)
148,028
33,268
1,607
182,903¥415,647(103,105)
1,253,942
281,816
13,614
1,549,372$3,520,941

LIABILITIES AND NET ASSETS

Commitments and contingent liabilities (Note 11)
Net assets (Note 12):
Shareholders’ equity:
Common stock
Authorized: 2006 and 2007 - 480,376,000 shares
Issued: 2006 and 2007 - 228,326,133 shares
Additional paid-in capital
Retained earnings (Note 20)
Less: Treasury stock, at cost2006 - 26,034,460 shares2007 - 28,165,388 shares
Total shareholders’ equity
Net unrealized holding gains on securities
Minority interests
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

9

OKUMURA CORPORATION

Consolidated Statements of Income
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2006 and 2007

Millions of yen
2006

2007

2007

¥269,888
243,189
26,699¥227,770
204,051
23,719$1,929,436
1,728,511
200,925

Selling, general and administrative expenses (Note 15)
Operating income

22,8103,889

22,303
1,416

188,931
11,994

Other income (expenses):Dividends
Interest income
Interest expenses
Gain on sales of property and equipment (Note 16)
Reversal of allowance for doubtful accounts
Gain on sales of investments in securities (Note 6)
Gain on redemption of investments in securities
Loss on deduction of carrying amounts of property and equipment
Loss on violation of the antitrust laws
Other, net (Note 16)
Other income-net

1,364
277
(270)
1,390
—
141
825
(411)
—
302
3,618

963
421
(213)
1,009
899
2,925
—
—
(715)
416
5,705

8,159
3,567
(1,808)8,545
7,617
24,781——(6,056)
3,523
48,328

Income before income taxes and minority interests

7,507

7,121

60,322

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

217
3,120
3,337

450
2,624
3,074

3,811
22,227
26,038Net sales
Cost of sales
Gross profit

Minority interests
Net income

Per share:
Net income
Cash dividends applicable to the period
The accompanying notes are an integral part of these financial statements.

10

Thousands of
U.S. dollars(Note 2)

¥

9
4,161

¥20.27
10.00

¥

(77)
4,124

$

(647)
34,931Yen

U.S. dollars(Note 2)¥20.51
20.00

$0.17
0.17

Consolidated Statements of Changes in Net Assets
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2006 and 2007

Millions of yen

Shareholders’ equity

BALANCE - APRIL 1, 2005
Dividends from surplus
Bonuses for directors andstatutory auditors
Net income
Acquisition of treasury stock
Disposal of treasury stock
Items other than changes inshareholders’ equity
BALANCE - MARCH 31, 2006
Dividends from surplus
Bonuses for directors andstatutory auditors
Net income
Acquisition of treasury stock
Disposal of treasury stock
Items other than changes inshareholders’ equity
BALANCE - MARCH 31, 2007

Number of sharesof common stock
issuedCommonstock

Additional
paid-in
capital

Total Net unrealized
Retained Treasury stock, shareholders’ holding gains
earnings
at costequityon securities

228,326,133¥19,839¥25,325 ¥110,695 ¥ (9,358) ¥146,501¥19,839¥19,839— ¥164,557(1,840)(1,840)

(42)
4,161

(42)
4,161
(1,469)
4

(42)
4,161
(1,469)4(1,469)3

0¥25,326 ¥112,974 ¥(10,824) ¥147,315

18,318¥36,374

1,725
20,043¥1,725 ¥185,414(2,023)(2,023)(2,023)

(42)
4,124

(42)
4,124
(1,351)
5

(42)
4,124
(1,351)5(1,351)3

2

228,326,133¥

Total net
assets(1,840)1

228,326,133¥18,056

Minority
interests

0¥25,328 ¥115,033 ¥(12,172) ¥148,028(3,106)¥33,268(118)(3,224)¥1,607 ¥182,903

Thousands of U.S. dollars (Note 2)

Shareholders’ equity
Commonstock

BALANCE - MARCH 31, 2006

Additional
paid-in
capital

Total Net unrealized
Retained Treasury stock, shareholders’ holding gains
earnings
at costequityon securities$168,055 $214,541 $956,998 $ (91,689) $1,247,905 $308,125

Minority
interests

Total net
assets$14,610 $1,570,640

Dividends from surplus(17,136)(17,136)(17,136)
Bonuses for directors and statutory auditors
(356)
(356)
(356)
Net income
34,931
34,931
34,931
Acquisition of treasury stock(11,447) (11,447)(11,447)
Disposal of treasury stock
14
31
45
45
Items other than changes inshareholders’ equity
0 (26,309)(996) (27,305)
BALANCE - MARCH 31, 2007
$168,055 $214,555 $974,437 $(103,105) $1,253,942 $281,816 $13,614 $1,549,372
The accompanying notes are an integral part of these financial statements.
The consolidated statements of changes in net assets for the fiscal year ended March 31, 2006 are presented under the new standard.

11

OKUMURA CORPORATION

Consolidated Statements of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2006 and 2007

Millions of yen

Thousands of
U.S. dollars(Note 2)

2006

2007

2007

¥ 7,507¥ 7,121$ 60,322

559
—
(15)
(513)
(624)
1,944
(1,641)270(1,390)
411
(141)
(825)
13
—
(16,864)
8,511
1,136
(12,424)(6,950)
912
(42)
216
(19,950)
1,764
(265)
(161)
(18,612)

710
(14)
—
(900)
(1,348)206(1,384)213(1,009)—(2,925)—16706
13,712(6,514)(198)(5,362)(9,354)
(722)
(42)
(683)
(7,771)
1,430
(212)
(447)
(7,000)

6,013
(115)
—
(7,622)(11,421)
1,745(11,726)
1,808(8,545)—(24,781)
—
135
5,981
116,156(55,179)(1,680)(45,425)(79,237)(6,111)(356)(5,789)(65,827)
12,117(1,797)(3,787)(59,294)

Cash flows from investing activities:
Net decrease in time deposits
Payments for purchases of securities
Proceeds from sales of securities
Payments for purchases of tangible and intangible fixed assets
Proceeds from sales of tangible and intangible fixed assets
Issuance of loans receivableCollection of loans receivable
Other, net
Net cash provided by investing activities

13,204(8,908)18,145(799)
1,673(1,518)176
1,243
23,216791(5,772)
9,948(2,879)
1,031
(390)
194
1,347
4,270

6,705
(48,898)
84,268(24,389)8,737(3,304)
1,643
11,411
36,173

Cash flows from financing activities:
Net decrease in short-term loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for purchases of treasury stock
Proceeds from sales of treasury stock
Dividends paid
Dividends paid to minority shareholders
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 5)(1,429)68(75)(1,469)5(1,840)—(4,740)40(96)46,181¥ 46,085

(227)
—
(96)
(1,351)5(2,021)(9)(3,699)(19)(6,448)46,085¥39,637(1,918)—(813)(11,447)45(17,123)(76)(31,332)(161)(54,614)390,382$335,768

Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation
Amortization of negative goodwill
Amortization of consolidation differences
Decrease in allowance for doubtful accounts
Decrease in accrued severance indemnities
Increase in allowance for construction loss
Dividends and interest income
Interest expenses
Gain on sales of property and equipment
Loss on deduction of carrying amounts of property and equipment
Gain on sales of investments in securities
Gain on redemption of investments in securities
Devaluation of securities
Loss on violation of the antitrust laws
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in accumulated costs of uncompleted contracts
Decrease (increase) in other inventories
Decrease in trade notes and accounts payable
Decrease in advances received on uncompleted contracts
Increase (decrease) in accrued consumption taxes
Bonuses paid to directors and statutory auditors
Other, net
Subtotal
Dividends and interest received
Interest paid
Income taxes paid
Net cash used in operating activities

The accompanying notes are an integral part of these financial statements.

12Notes to the Consolidated Financial Statements
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 2006 and 2007

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been
prepared based on the accounts maintained by Okumura
Corporation (the “Company”) and its subsidiaries (collectively
the “Group”) in accordance with the provisions set forth in the
Corporation Law of Japan and the Securities and Exchange Law,
and in conformity with accounting principles generally acceptedin Japan, which are different, in certain respects, from the application and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theCompany’s consolidated financial statements issued domesticallyin order to present them in a format which is more familiar toreaders outside Japan.
2. U.S. Dollar Amounts
The accounts of consolidated financial statements presented
herein are originally expressed in Japanese yen. The U.S. dollar
amounts shown in the accompanying consolidated financial
statements and notes thereto have been translated fromJapanese yen into U.S. dollars on the basis of ¥118.05 to U.S.
$1, the rate of exchange prevailing at March 31, 2007. These
U.S. dollar amounts are not intended to imply that the Japanese
yen amounts have been or could be converted, realized or settled in U.S. dollars at this or any other rate.
3. Principles of Consolidation(1) Scope of Consolidation
The Company had eight subsidiaries and an affiliate as at March
31, 2007 (six subsidiaries and an affiliate in 2006). The consolidated financial statements included the accounts of theCompany and two of its subsidiaries. The accounts of other six
subsidiaries were not consolidated, as they would not have amaterial effect on the accompanying consolidated financial
statements.
(2) Fiscal Terms of Consolidated Subsidiaries
Fiscal terms of all consolidated subsidiaries were the same as theCompany.
(3) Valuation of Assets and Liabilities of Consolidated
Subsidiaries
The Company adopted “full fair value method” so that the full
portion of the assets and liabilities of the consolidated subsidiaries was measured at their fair value as of the acquisition of
the control.
(4) Goodwill on Consolidation
In preparing the consolidated financial statements, positive or
negative difference between the cost of investment and theamount of the underlying equity in net assets of the consolidated subsidiary was deferred and amortized over a period of 5
years on a straight-line basis.
Other negligible differences were fully amortized as theyoccurred.
(5) Application of Equity Method
The equity method has not been adopted for the non-consolidated subsidiaries and the affiliate, as they would not have amaterial effect on the accompanying consolidated financial
statements.

4. Summary of Significant Accounting Policies(1) Valuation of Securities
Securities included in short-term investments and investments insecurities are stated as follows: Held-to-maturity debt securities
Amortized cost method (straight-line method) Other securities
Other securities with market quotations are stated at the prevailing market price as at the balance sheet date. Net unrealized gains or losses on these securities are reported net oftaxes as a separate component of “Net assets”. The cost of
securities sold is determined based on the moving average
cost at the time of sale.
Other securities without market quotations are stated atcost by the moving average method. Equities of limited liability partnerships for investment purpose and of other similar
partnerships (defined as “securities” by Section 2 of the
Article 2 of the Securities and Exchange Law) are valued at
the net equity equivalent based on the recently available
financial statements of the partnerships corresponding to thereporting dates of the financial statements defined by thepartnership agreements.
(2) Valuation of Inventories
Accumulated costs of uncompleted contracts are stated at cost
determined by specific identification method. Other inventories
are also stated at cost by specific identification method.
On July 5, 2006 Accounting Standards Board of Japan(ASBJ) issued a new accounting standard for measurement of
inventories (ASBJ Statement No. 9) which requires the company
to state the inventories held for sale in the ordinary course ofbusiness at the lower of cost or net selling value on the date ofbalance sheet. The Company adopted this standard to inventories effective the year ended March 31, 2007, but there was no
impact on the consolidated financial statements.
(3) Depreciation and Amortization of Fixed Assets
 Property and equipment
Property and equipment are principally stated at cost.
Depreciation except for buildings acquired on and after April
1, 1998 is computed in accordance with the declining balance method based on the useful lives and residual value prescribed by the Japanese tax laws. The depreciation ofbuildings acquired on and after April 1, 1998 is computed on
the straight-line method. Deferred gain on land and buildings
recognized when acquired was directly deducted from therespective acquisition cost in the amounts of ¥373 million and¥38 million at March 31, 2006. Maintenance and repairs,
including minor renewals and improvements, are charged toincome as incurred.
 Intangible fixed assets
Intangible fixed assets except for software are amortized by
the straight-line method based on the useful lives prescribedby the Japanese tax laws.
Software for in-house use is amortized by the straightline method based on the estimated useful lives.
(4) Allowance for Doubtful Accounts
Allowance for doubtful accounts of general receivable wasestablished to provide for future losses, which are estimated,based on the past credit loss experience.

13

OKUMURA CORPORATION

In addition, uncollectible amount is estimated individuallyfor doubtful receivable.

Other revenues and their related costs from construction
contracts are recognized by the completed-contract method.

(5) Allowance for Repairs
The Group has provided for the anticipated cost of repairing
machinery and equipment used for completed construction projects. The amount provided has been included in cost of construction.

(12) Accounting standard for Directors’ bonus
Effective from the year ended March 31, 2007, the Company
applied “Accounting standard for directors’ bonus” (ASBJ
Statement No.4).
The Company adopted this standard effective the year
ended March 31, 2007, but there was no impact on the consolidated financial statements.

(6) Allowance for Warranty Work on Construction Projects
The anticipated cost of warranty work corresponding to thesales of construction for the last twelve months is recorded
under this account on the accompanying consolidated balance
sheets.
(7) Allowance for Construction Loss
The amount of losses on construction projects that could be
expected and reasonably estimated at the end of the fiscal year
was reserved in this account.
(8) Accrued Severance Indemnities
Accrued severance benefits for employees are recorded basedon the estimated present value of projected benefit obligations
in excess of the fair value of the plan assets at the end of the fiscal year.
The unrecognized transition amount which arose fromadopting the new standard during the year ended March 31,
2001 has been amortized on a straight-line basis over 15 years,
and unrecognized actuarial differences are amortized on astraight-line basis over the period of 10 years within the employees’ average remaining service years subsequent to the year inwhich they arise.
Accrued severance indemnities for directors and statutory
auditors were also provided equal to the amount if all such officer retired on the balance sheet date and are included in
accrued severance indemnities in the amount of ¥165 million in
the consolidated balance sheets as at March 31, 2006. At theregular shareholders’ meeting held on June 29, 2006, the retirement benefits plan for these officers was abolished and also it
resolved that the severance indemnities accrued at that datewould be paid upon their retirement in future. In connection
with this resolution, the outstanding balance of accrued severance indemnities for the officers amounting to ¥137 million(US$1,164 thousand) was transferred in “Others” under current
liabilities.
(9) Treasury Stock
Treasury stocks owned by the Group are recorded at acquisition
cost as a separate component under the Shareholders’ Equity.
The numbers of treasury stocks held by the Group as at March
31, 2006 and 2007 were 26,034,460 and 28,165,388 commonshares, respectively.
(10) Leases
Where the financing leases do not transfer ownership of theleased property to the lessee during the terms of the leases, theleased property is not capitalized and the related lease expenses
are charged to income in the periods in which they are incurred.
(11) Recognition of Revenues and Related Costs
Revenues and their related costs from construction contracts
with construction periods of more than 2 years and contract
amounts in excess of ¥5 billion (US$42,355 thousand) are recognized by the percentage-of-completion method.

14(13) Consumption Taxes
The consumption taxes withheld and consumption taxes paid
are excluded from revenues and expenses in the accompanying
financial statements. The net balance of the consumption taxes
withheld and consumption taxes paid is included in current liabilities of the balance sheet as of the end of the fiscal year.
(14) Appropriations of Retained Earnings
Until the fiscal year ended March 31, 2006, the plan for appropriation of retained earnings (primarily for cash dividend payments) proposed by the Board of Directors must be approved at
the general shareholders’ meeting, which is held within threemonths after the end of each fiscal year.
On May 1, 2006, the Corporation Law went into effect andreplaced the Commercial Code, Under the Corporation Law, theCompany is able to appropriate retained earnings by resolutionof the Board of Directors, provided that certain criteria are met.
Upon meeting these criteria, the Company amended its Articles
of Incorporation upon the approval of a resolution at the annual
general shareholders’ meeting in June 2006, the first generalshareholders’ meeting, held under the Corporation Law.
(15) Cash and Cash Equivalents
Cash and cash equivalents in the consolidated statements ofcash flows consist of cash on hands, bank deposits payable on
demand and short-term investments due within three months
from acquisition with minor value fluctuation risk.
(16) Income Taxes
The Group is generally subject to national corporate income tax,
local inhabitant tax and enterprise tax which are principally
based on income.
Deferred income taxes are determined using the assets andliability approach, whereby deferred tax assets and liabilities arerecognized in respect of temporary differences between the tax
basis of assets and liabilities and those as reported in the financial statements.
(17) Per Share Information
Basic net income per share is computed by dividing net income
available to common shareholders by the weighted average
number of common shares outstanding for the period, whichwere 203,225,151 shares and 201,025,726 shares for the years
ended March 31, 2006 and 2007, respectively. Diluted net
income per share is not disclosed because there were no dilutive
potential common shares that were outstanding for the years
ended March 31, 2006 and 2007.
(18) Reclassifications
Certain reclassifications of previously reported amounts havebeen made to conform with current classifications.

5. Cash and Cash Equivalents
The following table represents a reconciliation of cash and cash equivalents at March 31, 2006 and 2007:
Millions of yen

Cash and time deposits
Time deposits maturing over 3 months
Short-term investments redeemable within 3 months from acquisition dateCash and cash equivalents

Thousands of
U.S. dollars

2006

2007

2007

¥53,760(9,675)2,000¥46,085¥45,523(8,884)
2,998¥39,637$385,628(75,254)
25,394$335,768

6. Securities
The book and market values of held-to-maturity debt securities whose fair value is available as at March 31, 2006 were as follows:
Millions of yen

Book
value

Securities with unrealized gains:
Government and municipal bonds
Corporate bonds
Sub-total
Securities with unrealized losses:
Government and municipal bonds
Corporate bonds
Sub-total
Total

Marketvalue

Unrealized
gains (losses)

¥

600
2,907
¥ 3,507

¥

600
2,932
¥ 3,532

¥ 0
25
¥ 25

¥ 4,819
3,342¥ 8,161¥11,668¥ 4,790
3,322¥ 8,112¥11,644

¥(29)
(20)
¥(49)
¥(24)

The book and market values of held-to-maturity debt securities whose fair value is available as at March 31, 2007 were as follows:
Millions of yen

Securities with unrealized gains:
Government and municipal bonds
Corporate bonds
Sub-total
Securities with unrealized losses:
Government and municipal bonds
Corporate bonds
Sub-total
Total

Book
value

Marketvalue

Unrealized
gains (losses)

¥
—
2,000
¥2,000¥—2,025¥2,025¥—25¥ 25¥2,406
2,412¥4,818¥6,818¥2,392
2,405¥4,797¥6,822

¥(14)
(7)
¥(21)
¥ 4

Book
value

Marketvalue

Unrealized
gains (losses)$—
16,942$16,942$—
17,154$17,154

$ —
212
$ 212

$20,384
20,431$40,815$57,757$20,268
20,368$40,636$57,790$(116)(63)$(179)$ 33

Thousands of U.S. dollars

Securities with unrealized gains:
Government and municipal bonds
Corporate bonds
Sub-total
Securities with unrealized losses:
Government and municipal bonds
Corporate bonds
Sub-total
Total

15

OKUMURA CORPORATION

The acquisition cost and book value of other securities whose fair value is available as at March 31, 2006 were as follows:
Millions of yen

Securities with unrealized gains:
Stocks
Bonds
Sub-total
Securities with unrealized losses:
Stocks
Bonds
Sub-total
Total

Acquisition
cost

Book
value

Unrealized
gains (losses)¥27,696—¥27,696¥89,635—¥89,635¥61,939—¥61,939

¥

¥

¥

723
5,500
¥ 6,223¥33,919667
4,953¥ 5,620¥95,255(56)(547)¥ (603)¥61,336

The acquisition cost and book value of other securities whose fair value is available as at March 31, 2007 were as follows:
Millions of yen

Securities with unrealized gains:
Stocks
Bonds
Real estate investment trust
Sub-total
Securities with unrealized losses:
Stocks
Bonds
Real estate investment trust
Sub-total
Total

Acquisition
cost

Book
value

Unrealized
gains (losses)¥25,781—101¥25,882¥82,597—
118¥82,715¥56,816—
17¥56,833¥ 2,698
6,700—¥ 9,398¥35,280¥ 2,432
6,210—¥ 8,642¥91,357¥

Acquisition
cost

Book
value

Unrealized
gains (losses)$218,397—
854$219,251$699,682—
998$700,680$481,285—
144$481,429$ 22,851
56,756—$ 79,607$298,858$ 20,598
52,607—$ 73,205$773,885$ (2,253)(4,149)—$ (6,402)$475,027

(266)
(490)
—
¥ (756)¥56,077

Thousands of U.S. dollars

Securities with unrealized gains:
Stocks
Bonds
Real estate investment trust
Sub-total
Securities with unrealized losses:
Stocks
Bonds
Real estate investment trust
Sub-total
Total

Proceeds from sales of other securities and related gross realized gains on those sales for the years ended March 31, 2006 and 2007
were as follows:
Millions of yen

Proceeds from sales
Gross realized gains

16

Thousands of
U.S. dollars

2006

2007

2007

¥177
141

¥3,6692,925$31,083
24,781

Main securities whose fair value is not readily determinable at March 31, 2006 and 2007 were as follows:

Held-to-maturity debt securities:
Commercial paper
Corporate bonds
Investments in subsidiaries and affiliates:
Subsidiaries
Affiliates
Other securities:
Unlisted stocks
Investments in limited liability partnerships and similar agreements
Unlisted preferred equity investments

Millions of yen

Thousands of
U.S. dollars

2006

2007

2007

¥2,999—¥2,99820$25,394
169

154
21

175
21

1,486
178

1,494
205
1

1,558
205
1

13,1991,735
8The details of maturity dates of held-to-maturity and other securities as at March 31, 2006 were as follows:
Millions of yen

Bonds:
Government and municipal bonds
Corporate bonds
OthersOthersTotal

Due within
1 yearDue in1 to 5 years

Due in
5 to 10 years

Due after
10 years¥3,008
1,812
2,999
—
¥7,819¥2,411
4,438—
206¥7,055

¥—
—
—
—
¥—

¥
—
4,953
—
—
¥4,953The details of maturity dates of held-to-maturity and other securities as at March 31, 2007 were as follows:
Millions of yen

Bonds:
Government and municipal bonds
Corporate bonds
OthersOthersTotal

Due within
1 yearDue in1 to 5 years

Due in
5 to 10 years

Due after
10 years

¥ 800
2,413
2,998
—
¥6,211¥1,6062,021—
206¥3,833

¥—
—
—
—
¥—

¥
—
6,210
—
—
¥6,210Due within
1 yearDue in1 to 5 years

Due in
5 to 10 years$ 6,781
20,43925,394—$52,614$13,603
17,120—1,743$32,466

$—
—
—
—
$—

Thousands of U.S. dollars

Bonds:
Government and municipal bonds
Corporate bonds
OthersOthersTotal

Due after
10 years$—
52,607——$52,607

17

OKUMURA CORPORATION

7. Short-term Loans and Long-term Debt
Short-term loans and long-term debt as at March 31, 2006 and 2007 consisted of the following:

Short-term loans
Current portion of long-term debt
Long-term debt
Total

Thousands of
U.S. dollars
2007

Averageinterest rate

Repayment
due

2006

Millions of
yen
2007

¥12,379
52
583¥13,014¥12,15345495¥12,693$102,944
383
4,189$107,516

1.8%
2.4%
2.2%

2008-2031

Millions of yen

Thousands of
U.S. dollars

¥45
44
43
38

$379
371
362
320

The aggregate annual maturities of long-term debt at March 31, 2007 were as follows:Year ending March 31

2009
2010
2011
2012

8. Accrued Severance Indemnities
The Company and its consolidated subsidiaries have lump-sum retirement benefit plans and cash balance plan (pension plan linked tothe market interest rates) based on the Defined Benefit Corporate Pension Law.
The reserve for employees’ retirement benefits which are recorded under accrued severance indemnities as at March 31, 2006 and2007 consisted of the following:
Millions of yen

Projected benefit obligations
Plan assets
Funded status
Unrecognized transition amount
Unrecognized actuarial differences
Accrued severance indemnities

Thousands of
U.S. dollars

2006

2007

2007

¥44,517(41,263)
3,254
495
3,963
¥ 7,712¥43,654(41,387)
2,267
440
3,822
¥ 6,529$369,792(350,589)
19,203
3,728
32,374$ 55,305

Net pension expense related to the retirement benefits for the years ended March 31, 2006 and 2007 were as follows:
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of transition amountAmortization of actuarial differences
Net pension expense

18

Thousands of
U.S. dollars

2006

2007

2007

¥1,581
882
(545)
(55)
(127)
¥1,736¥1,479
884
(536)
(55)
(308)
¥1,464$12,526
7,493(4,544)(466)(2,609)$12,400

Assumptions used in calculation of the above information for the years ended March 31, 2006 and 2007 were as follows:
Discount rate
Expected rate of return on plan assets
Method of attributing the projected benefits to periods of services
Amortization period of transition amountAmortization period of actuarial differences*

2006

2007

2.0%
1.4%
Straight-line basis
15 years
10 years

2.0%
1.3%
Straight-line basis
15 years
10 years* The actuarial differences are amortized on a straight-line method over 10 years to be within the employees’ average remaining service years whenincurred and charged to income from the subsequent year.

9. Pledged Assets
The following assets of the Group are pledged as collateral for long-term debt including current portion from financial institutions in
the amount of ¥156 million and ¥132 million (US$1,115 thousand) as at March 31, 2006 and 2007, respectively:
Millions of yen

Land
Building

Thousands of
U.S. dollars

2006

2007

2007

¥ 87
79
¥166

¥ 87
75
¥162

$ 740
629
$1,369In addition, investments in securities in the amount of ¥54 million (US$457 thousand) are also pledged as collateral for the loans of anaffiliate as at March 31, 2006 and 2007 and time deposits in the amount of ¥33 million and ¥11 million (US$93 thousand) arepledged as guarantee money for construction projects as at March 31, 2006 and 2007, respectively.

19

OKUMURA CORPORATION

10. Income Taxes
The Group is subject to certain different income taxes in Japan, which in the aggregate resulted in normal statutory income tax rate of
approximately 40.6%.
The significant components of deferred tax assets and liabilities at March 31, 2006 and 2007 were as follows:

Deferred income tax assets:
Write-down of inventories
Accrued severance indemnities
Devaluation of securities
Written-off of bad debt
Allowance for bonuses
Accrued expenses
Allowance for construction loss
Allowance for doubtful accounts
OthersSub-total
Valuation allowances
Total deferred income tax assets
Deferred income tax liabilities:
Net unrealized holding gains on securities
Reserve for deferred gain on fixed assets
Special reserve for deferred gain on fixed assets
Special depreciation for tax purpose
Total deferred income tax liabilities
Net deferred income tax liabilities

Millions of yen

Thousands of
U.S. dollars

2006

2007

2007

¥ 11,012
3,198
2,177
1,135
1,011
758
789
1,212
743
22,035(710)
21,325¥ 9,388
2,651
1,897
1,088
937
911
874
806
724
19,276(1,064)
18,212$ 79,524
22,454
16,069
9,217
7,940
7,714
7,404
6,829
6,136
163,287(9,011)
154,276(24,902)(2,444)—(56)(27,402)¥ (6,077)(22,767)(1,737)(233)(41)(24,778)¥ (6,566)(192,861)(14,716)(1,972)(346)(209,895)$ (55,619)

Reconciliation of the difference between the statutory income tax rate and the effective income tax rate for the year ended March 31,
2006 and 2007 were as follows:
Statutory income tax rate:
Expenses not deductible for tax purpose
Revenue excluded for tax purpose
Inhabitant tax per capita
Valuation allowances
Others
Effective income tax rate

2006

2007

40.6%
3.6
(1.7)
2.4
—
(0.4)
44.5%

40.6%
2.9
(2.9)
2.5
5.0
(4.9)
43.2%

11. Commitments and Contingent Liabilities
The Group guarantees for the client’s bank debt and the buyer’s deposits payable amounting to ¥790 million and ¥836 million(US$7,084 thousand) in the aggregate in connection with sales contracts of condominiums which were being constructed by theGroup at March 31, 2006 and 2007, respectively.

2012. Net Assets
The Corporation Law provides that at least 50% of the issue price of new shares designated as stated capital. The portion which is tobe designated as stated capital is determined by resolution of the Board of Directors. Proceeds in excess of the amounts designated asstated capital are credited to additional paid-in capital.
Under the Corporation Law an amount equal to at least 10% of cash dividends and other appropriations of retained earnings
paid out with respect to each financial period is set aside in a legal reserve until the total amount of additional paid in capital andearned reserve (collectively, “legal reserves”) equals 25% of stated capital. Legal reserves may be transferred to stated capital by a resolution of the board of directors or used to reduce a deficit with the approval of a shareholders’ meeting. In addition, legal reserves
may be available for dividends to the extent that legal reserves do not fall below 25% of stated capital, and the Company is allowed
to repurchase its own shares to the extent that the aggregate cost of treasury shares does not exceed the maximum amount available
for dividends.
The legal reserves of the Company and its consolidated subsidiaries are included in the retained earnings and are not shown separately in the accompanying consolidated balance sheets.
Effective from the year ended March 31, 2007, the Company has applied “Accounting standards for presentation of net assets inthe balance sheet (ASBJ Statement No.5)”, and “Implementation guidance for Accounting standards for presentation of net assets inthe balance sheet (Accounting Standards of Japan Guidance No.8)” both issued by ASBJ on December 9, 2005.
The amounts corresponding to the conventional “Shareholders’ equity” in the balance sheets is ¥181,296 million.
“Net assets” in the balance sheets for this year is presented according to the revision of “Regulations Concerning the
Terminology, Form and Presentation Methods of Consolidated Financial Statements” dated on April 25, 2006. Furthermore, theCompany presented its net assets in the balance sheets using the new presentation as of March 31, 2006.
13. Leases
Information on finance leases other than those deemed to transfer ownership of the leased assets to the lessee for the years ended
March 31, 2006 and 2007, is summarized as follows:(1) The acquisition cost (interest expense which did not have a material effect on the accompanying financial statements was included), accumulated depreciation, and net book value as at March 31, 2006 and 2007 were as follows:
Millions of yen
2006

Machinery and equipment

2007

Acquisition
Cost

Accumulated
depreciation

Net bookvalue

Acquisition
Cost

Accumulated
depreciation

Net book
value

¥605

¥408

¥197

¥295

¥137

¥158

Thousands of U.S. dollars
2007

Machinery and equipment

Acquisition
Cost

Accumulated
depreciation

Net book
value$2,501$1,166$1,335(2) Future minimum payments under lease contracts with non-cancelable terms (interest expense which did not have a material effecton the accompanying financial statements was included) as at March 31, 2007, were as follows:
Within one year
Over one year
Total

Millions of yen

Thousands of
U.S. dollars

¥ 60
98
¥158

$ 504
831
$1,335(3) Lease payments and notional depreciation expenses for the years ended March 31, 2006 and 2007 were as follows:
Millions of yen

Lease expense
Notional depreciation

Thousands of
U.S. dollars

2006

2007

2007

¥90
90

¥68
68

$579
579

Notional depreciation expense is computed by the straight-line basis over the lease period based on notional acquisition cost with noresidual value.

21

OKUMURA CORPORATION

14. Trade Note Maturities
The following trade notes, which matured but were not settled on March 31, 2007 because that day fell on a bank holiday, were included in the balance sheet as of March 31, 2007:
Millions of yen

Notes receivable
Notes payable¥

Thousands of
U.S. dollars

2006

2007

2007

—
—

¥1,9848$16,805
68

15. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses for the years ended March 31, 2006 and 2007 were as follows:
Millions of yen

Employees’ salaries and allowances
Retirement benefit expense
Provision for allowance for doubtful accounts
Research and development expenses

Thousands of
U.S. dollars

2006

2007

2007

¥12,215
1,023
368
1,083

¥12,558
866
—
1,002

$106,380
7,334
—
8,491

16. Gain or Loss on Property and Equipment
Gains on sales of property and equipment and losses on sales and disposal of property and equipment for the years ended March 31,
2006 and 2007 were as follows:
Millions of yen

Thousands of
U.S. dollars

2007

2007

2006

Gain on sales of property and equipment:
Buildings
Machinery and equipment
Land
Loss on sales of property and equipment:
Buildings
Machinery and equipment

¥

—
9
1,381
¥1,3903
2
1,004¥1,00929
128,504$8,545¥¥$¥
Loss on disposal of property and equipment:
Buildings
Machinery and equipment

¥
¥

1
2
3
18
57
75

¥

¥
¥
¥

$

0
3
3

$

26
18
44

$ 219
156
$ 375

17. Derivatives
The Company and its consolidated subsidiaries did not use derivative financial instruments for the years ended March 31, 2006 and
2007.

22

0
25
25

18. Per Share Information
Net assets per share at March 31, 2006 and 2007 and net income per share for the years then ended were as follows:Yen

Net assets per share
Basic net income per share

U.S. dollars

2006

2007

2007

¥907.8320.27¥905.75
20.51

$7.67
0.17

Basic net income per share was computed based on the net income available for distribution to shareholders of common stock (¥4,119
million in 2006 and ¥4,124 million or US$34,931 thousand in 2007) and the weighted average number of shares of common stock during the year (203,225,151 shares in 2006 and 201,025,726 shares in 2007). Diluted net income per share has been omitted because nopotentially dilutive instruments were outstanding during the years ended March 31, 2006 and 2007.
Net assets per share was computed based on the net assets less minority interests in the mount of ¥181,296 million (US$1,535,758
thousand) and outstanding number of common stock (200,160,745 shares) at March 31, 2007.
19. Segment Information
The operating segment information of the Group for the years ended March 31, 2006 and 2007 was as follows:
Millions of yen

For the year ended March 31, 2006

I. Net sales and operating income
Customers
Intersegment or transfer
Total
Operating expenses
Operating income
II. Assets, depreciation and capital expenditures
AssetsDepreciation
Capital expenditures

Construction

Other

Total

Eliminations

Consolidated¥261,0412
261,043
258,863
2,180¥ 8,847
2,355
11,202
9,496
1,706¥269,888
2,357
272,245
268,359
3,886¥—(2,357)(2,357)(2,360)3¥269,888—
269,888265,999
3,889

405,819419
1,085

32,68314056438,502559
1,141(1,347)——437,155559
1,141

Construction

Other

Total

Eliminations

Consolidated¥217,664
1
217,665
219,355(1,690)¥10,106
2,268
12,3749,348
3,026¥227,770
2,269
230,039
228,703
1,336¥—(2,269)(2,269)(2,349)80¥227,770—
227,770
226,354
1,416

384,346
599
1,259

34,428
111
1,607

418,774710
2,866(3,127)——

415,647710
2,866

Millions of yen

For the year ended March 31, 2007

I. Net sales and operating income
Customers
Intersegment or transfer
Total
Operating expenses
Operating income
II. Assets, depreciation and capital expenditures
AssetsDepreciation
Capital expenditures23

OKUMURA CORPORATION

Thousands of U.S. dollars

For the year ended March 31, 2007

I. Net sales and operating income
Customers
Intersegment or transfer
Total
Operating expenses
Operating income
II. Assets, depreciation and capital expenditures
AssetsDepreciation
Capital expenditures

Construction

Other

Total

Eliminations

Consolidated$1,843,828
11
1,843,839
1,858,155(14,316)$ 85,608
19,209104,817
79,18425,633$1,929,436
19,2201,948,656
1,937,339
11,317$—(19,220)(19,220)(19,897)677$1,929,436—
1,929,436
1,917,442
11,9943,255,789
5,073
10,663291,641940
13,6153,547,430
6,013
24,278(26,489)——

3,520,941
6,013
24,278

Above business segmentation was made taking account of Japan Standard Industry Classification and sales category on the consolidated income statement.
Major components of each business segment are as follows:
Construction: Civil engineering, architectural construction and other construction projects
Other: Manufacturing and distribution of construction materials and equipment, sales and rentals of real estates, etc.
Segment information by location is omitted because the domestic share against total sales and total assets exceeds 90%.
Overseas sales information is omitted because overseas sales are less than 10% of consolidated sales.
20. Subsequent Events
The following appropriation of retained earnings has been approved by the general meeting of shareholders held on June 28, 2007.
Cash dividends at ¥20 per share

24

Millions of yen

Thousands of
U.S. dollars¥4,003$33,911

Report of Independent Auditors

Report of Independent Auditors
To the Board of Directors and Shareholders of
Okumura Corporation,
We have audited the accompanying consolidated balance sheets of Okumura Corporation and its subsidiaries as of March 31,
2006 and 2007, and the related consolidated statements of income, changes in net assets, and cash flows for the years thenended, all expressed in Japanese yen. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Okumura Corporation and its subsidiaries as of March 31, 2006 and 2007, and the consolidated results of
their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted inJapan.
The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translated on
the basis set forth in Note 2 to the accompanying consolidated financial statements.

Osaka, Japan
June 28, 2007

25

OKUMURA CORPORATION

Non-Consolidated Balance Sheets
Okumura Corporation
As of March 31, 2006 and 2007ASSETS

Current assets:
Cash and time deposits
Trade receivables:
Notes
Accounts
Short-term investments
Inventories:
Accumulated costs of uncompleted contracts
Other inventories
Deferred income taxes
Other accounts receivables
OthersLess: Allowance for doubtful accounts
Total current assets

Property and equipment:
Buildings
Machinery and equipment
Land
Construction in progress
Less: Accumulated depreciation
Total property and equipment

Investments and other assets:
Investments in securities
Investments in subsidiaries and affiliates, at cost
Long-term receivables
OthersLess: Allowance for doubtful accounts
Total investments and other assets
Total assets

26

Millions of yen

Thousands of
U.S. dollars(Note 2)

2006

2007

2007

¥ 53,690¥ 45,486$ 385,308

20,46761,787
7,819

14,45454,615
6,211

122,439
462,645
52,614

114,052
7,794
13,381
24,3707,135(4,842)
305,653

120,394
5,120
11,38826,590
10,189(4,055)
290,392

1,019,851
43,37596,471
225,247
86,311(34,352)
2,459,909

12,797
9,520
11,726
113(17,429)
16,727

12,926
9,303
11,952
823(17,355)
17,649109,500
78,804
101,242
6,969(147,013)
149,502103,325
245
2,498
5,122
(40)
111,150¥433,530

96,331
267
2,738
4,921
(39)
104,218¥412,259

816,020
2,261
23,18841,684(327)
882,826$3,492,237

Millions of yen

Thousands of
U.S. dollars

2006

2007

2007

Current liabilities:
Trade payables:
Notes
Accounts
Short-term loans including current portion of long-term debt
Accrued income taxes
Accrued expenses
Advances received on uncompleted contracts
Allowance for repairs
Allowance for warranty work on construction projects
Allowance for construction loss
OthersTotal current liabilities¥ 16,144
81,28913,693240
3,455
88,441
236
626
1,945
17,812
223,881¥ 11,022
81,507
13,884466
3,186
79,087
134
414
2,148
16,108207,956$

Long-term liabilities:
Long-term debt
Deferred income taxes
Accrued severance indemnities
OthersTotal long-term liabilities
Total liabilities

567
19,3177,874
1427,772
251,653479
17,7876,529
1424,809232,765

4,061
150,672
55,305120
210,158
1,971,746

19,83919,839168,055

25,322
4

25,322
6

214,50451

4,960
106,261

4,960
108,31142,014
917,500(10,824)
145,562
36,315
181,877¥433,530(12,172)
146,266
33,228179,494¥412,259(103,105)
1,239,019
281,472
1,520,491$3,492,237

LIABILITIES AND NET ASSETS

93,366690,449
117,612
3,943
26,991
669,945
1,131
3,503
18,196
136,452
1,761,588

Commitments and contingent liabilities
Net assets:
Shareholders’ equity:
Common stock
Authorized: 2006 and 2007 – 480,376,000 shares
Issued: 2006 and 2007 – 228,326,133 shares
Additional paid-in capital
Capital reserve
Other additional paid-in capital
Retained earnings
Earned reserve
Other retained earnings
Less: Treasury stock, at cost2006 - 26,034,460 shares2007 - 28,165,388 shares
Total shareholders’ equity
Net unrealized holding gains on securities
Total net assets
Total liabilities and net assets

27

OKUMURA CORPORATION

Non-Consolidated Statements of Income
Okumura Corporation
For the years ended March 31, 2006 and 2007

Millions of yen

Thousands of
U.S. dollars

2006

2007

2007

¥266,836
240,527
26,309¥225,217
201,829
23,388$1,907,814
1,709,696
198,118

Selling, general and administrative expenses
Operating income

22,356
3,953

21,854
1,534

185,121
12,997

Other income (expenses):Dividends
Interest income
Interest expenses
Gain on sales of property and equipment
Reversal of allowance for doubtful accounts
Gain on sales of investments in securities
Gain on redemption of investments in securities
Loss on deduction of carrying amounts of property and equipment
Loss on violation of the antitrust laws
Other, net
Other income – net
Income before income taxes

1,359
314
(299)
1,350
—
141
825
(411)
—
207
3,486
7,439

966
476
(237)
978
788
2,925
—
—
(715)
399
5,580
7,114

8,178
4,032
(2,009)8,288
6,674
24,781——(6,056)3,374
47,26260,259

Income taxes:
Current
Deferred
Total income taxes
Net income

216
3,113
3,329
4,110

426
2,573
2,999
4,115

3,608
21,79525,40334,856

Net sales
Cost of sales
Gross profit

¥

¥

$

Per share:
Yen

Net income
Cash dividends applicable to the period

28

¥

20.02
10.00

¥

20.47
20.00

U.S. dollars

$

0.17
0.17

Breakdown of Orders (Non-Consolidated)
Okumura Corporation
For the years ended March 31, 2006 and 2007

Construction Orders Awarded

2006

Millions ofyen

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

65.5

13,449143,031
156,480

100 %

49,777173,277
21,822¥244,876

Composition
ratio

Millions of
yen

36.5%

¥ 58,379
35,085—93,46461.3

15,405
108,796
124,201

97.8
2.2
100 %

73,784
143,881—217,665
7,552¥225,217

Composition
ratio

Millions of
yen

48.9%

¥ 98,149
52,022
34,466
184,637

51.1

23,957206,186
230,143

100 %

122,106
258,208
34,466¥414,780

73,855
169,055
1,187¥244,097
2006¥ 70,635
24,2802,478
97,393
17,301
146,349
163,650
87,936
170,6292,478
261,043
5,793¥266,836

Year-end Backlog¥120,200
56,861
12,644
189,705
25,913
171,951
197,864
146,113228,812
12,644¥387,569

2007

Composition
ratio

Thousands of
U.S. dollars

36.1%$ 307,734
256,215
184,850
748,799

63.9

113,925
1,211,618
1,325,543

100 %

421,659
1,467,833
184,850$2,074,342

Composition
ratio

Thousands of
U.S. dollars

41.5%$ 494,530
297,204—
791,73455.1

130,494
921,611
1,052,105

96.6
3.4
100 %

625,024
1,218,815—
1,843,839
63,975$1,907,814

Composition
ratio

Thousands of
U.S. dollars

44.5%$ 831,412
440,682
291,961
1,564,055

55.5

202,942
1,746,597
1,949,539

100 %1,034,354
2,187,279
291,961$3,513,594

2007

2006

Millions ofyen

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

34.5%

¥ 36,328
30,246
21,822
88,396

18,078
141,798
159,876

Millions ofyen

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

Millions ofyen¥ 55,777
27,257
1,187
84,221Net Sales

2007

Composition
ratio

2007

2007

2007

29

OKUMURA CORPORATION

Network

Head and Branch Offices
Head 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

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

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

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

Shikoku Branch
1-8-41, Nishiki-machi,
Takamatsu 760-0020, Japan
TEL: +81-87-851-9008 FAX: +81-87-822-9286

Sapporo Branch
1-5, Minami Ichijo Higashi,
Chuo-ku, Sapporo 060-0051, Japan
TEL: +81-11-261-9261 FAX: +81-11-251-5345
Tohoku Branch
2-25, Tsutsumi dori, Amamiya-machi,
Aoba-ku, Sendai 981-8525, Japan
TEL: +81-22-274-1231 FAX: +81-22-275-1844
Tokyo Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8111
Kitakanto Office
4-26-15, Kishi-cho, Urawa-ku,
Saitama 330-0064, Japan
TEL: +81-48-827-0188 FAX: +81-48-827-0268
Higashikanto Office18-14, Shinmachi, Chuo-ku,
Chiba 260-0028, Japan
TEL: +81-43-241-2255 FAX: +81-43-244-5911
Yokohama Office
60, Nihon Ohdori, Naka-ku,
Yokohama 231-0021, Japan
TEL: +81-45-662-1361 FAX: +81-45-641-3502
Hokuriku Office2-3-26, Higashi Ohdori, Chuo-ku,
Niigata 950-0087, Japan
TEL: +81-25-241-6160 FAX: +81-25-241-6364
Nagoya Branch
3-1-18, Taiko, Nakamura-ku,
Nagoya 453-8555, Japan
TEL: +81-52-451-1101 FAX: +81-52-451-3264
Kansai Branch
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692

30

Consolidated Subsidiaries

Kyushu Branch
2-19-1, Sanno, Yahata Higashi-ku,
Kitakyushu 805-8531, Japan
TEL: +81-93-671-3131 FAX: +81-93-661-1543
Fukuoka Office
1-13-8, Yakuin, Chuo-ku,
Fukuoka 810-0022, Japan
TEL: +81-92-741-4431 FAX: +81-92-741-4740
Taiwan Branch
13F-5, Da-an Metro, No.6, Sec.4, ShinyiRd.,
Taipei, Taiwan 106, R.O.C
TEL: +886-2-2709-6895
FAX: +886-2-2709-6897

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/loading machines anddevices
Taihei Real Estate Corporation[Head Office]5-6-1, Shiba, Minato-ku,
Tokyo, 108-8381, 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

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

Contents

01 Financial Highlights
02 To our Shareholders
04 Review of Operations
06 Topics in the Fiscal Year to March 200708 Consolidated Balance Sheets
10 Consolidated Statements of Income
11 Consolidated Statements of Changes in Net Assets
12 Consolidated Statements of Cash Flows

13 Notes to the Consolidated Financial Statements
25 Report of Independent Auditors
26 Non-Consolidated Balance Sheets
28 Non-Consolidated Statements of Income
29 Breakdown of Orders (Non-Consolidated)
30 Network
31 Board of Directors / Investor Information

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 clientsand other factors, and involve risks, variables and uncertainties. The Okumura Group’s actual performance results may differ fromthose projected in this Annual Report. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts,
projections or predictive statements contained herein.

Board of Directors

Investor Information(As of June 28, 2007)(As of March 31, 2007)

Directors and Auditors

Corporate Data

President & Representative Director
Takanori Okumura
Representative Directors
Yuichi Kanbara
Shigeru Nishinaka
Directors
Kunimoto Tanaka
Yoshihiko Kunii
Masakuni Sakurai
Kohei Tanaka
Hiroki Mizobe
Takaiku Hirako
Standing Statutory Auditors
Yoshitaka Mikata
Shojiro Sumikura
Auditors
Hanroku Toriyama
Kiyoshi Inazaki
Teruyasu Kawamata
Note: Hanroku Toriyama, Kiyoshi Inazaki, and Teruyasu Kawamata are outside
auditors.

Executive Officers
Executive Vice Presidents
Yuichi Kanbara*
Shigeru Nishinaka*
Senior Managing Officers
Kunimoto Tanaka*
Yoshihiko Kunii*
Masakuni Sakurai*
Kohei Tanaka*
Hiroki Mizobe*
Managing Officers
Tadashi Hashimoto
Yoshikuni Ogi
Masamichi Shirahase
Yoshiteru KinoshitaKazuo Okuda
Executive Officers
Kozo Tsukamoto
Akiyoshi Hida
Takumi Makino
Kenichiro Minami
Takaiku Hirako*
Masanori Eguchi
Kazuo Takami
Koji Imai
Norimasa Takahashi
Toshio Yamaguchi
Tetsuo Ojima
Kozo Aoki
Kazuhiro Kitazaki
Shinichi Okamoto
Hiroyuki Ito
Toshiharu Shimizu

Head Office
OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692
EstablishedFebruary 22, 1907
Capital¥19.8 billion
Group Employees
2,575

Stock Information
Stock Exchange Listings
Tokyo and Osaka
Transfer Agent
The Sumitomo Trust and Banking Co., Ltd.
Major Shareholders
Shares held
(thousands)

Percentage oftotal

Okumura Corporation(Treasury stock)

28,16512.34%The Master Trust Bankof Japan, Ltd. (Trust Account)

8,745

3.83%

Okumura Employees’
Shareholding Association

8,048

3.52%

Resona Bank, Limited.

6,074

2.66%

Sumitomo Mitsui Banking
Corporation

5,568

2.44%

Sumitomo Realty &Development Co., Ltd.

5,132

2.25%

Japan Trustee Services
Bank, Ltd. (Trust Account)

4,804

2.10%

Nippon Life Insurance Company

4,593

2.01%

JP Morgan Chase Bank 380084

4,237

1.86%

BBH 493025 Black Rock
Global Allocation

4,158

1.82%

Shareholder

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

31

OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692
http://www.okumuragumi.co.jp

OKUMURA CORPORATION
Annual Report 2007

Printed in Japan