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

Annual Report 2010

Okumura Corporation

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 for houses, public facilities, medical facilities,
and office buildings. In the area of civil 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 firstearthquake-absorbing building. In the area of environmentrelated technology, Okumura has developed techniques for
100% recycling of demolished concrete, and natural greening of concrete surfaces on buildings.
Okumura understands what an important mission it
is to provide a better environment for the future.
Accordingly, the Company is dedicated to contributing tomeaningful social infrastructure investment and to always
being a corporation regarded highly by society. It will achieve
this by continuing to develop as an all-around construction
company based on steadfast business management.

Contents
1 Financial Highlights
2 To Our Shareholders
4 Review of Operations
6 Topics
8 Consolidated Balance Sheets
10 Consolidated Statements of Operations
11 Consolidated Statements of Changes in Equity
12 Consolidated Statements of Cash Flows
13 Notes to the Consolidated Financial Statements
28 Independent Auditors’ Report
29 Non-Consolidated Balance Sheets
31 Non-Consolidated Statements of Operations
32 Breakdown of Orders (Non-Consolidated)
33 Network
34 Board of Directors / Investor Information

Financial Highlights
Okumura Corporation Annual Report 2010

For the years ended March 31

2008

2009

Consolidated:

2010

2010
Thousands of
U.S. dollars

Millions of yen

Net sales
Operating income (loss)
Net income (loss)
Total assets
Total equity¥254,090(14,618)(32,476)
332,711
128,820¥226,974
4,399(3,406)
293,677
115,155

Per Share:¥198,494
864
652
241,759
115,469$2,133,421
9,287
7,004
2,598,441
1,241,065

Yen

Basic net income (loss)¥(162.32)

Non-Consolidated:¥(17.03)

U.S. dollars

¥3.26

$0.04
Thousands of
U.S. dollars

Millions of yen

Net sales
Operating income (loss)
Net income (loss)
Total assets
Total equity¥249,844(14,631)(32,515)
328,082
127,006¥220,760
4,310(3,800)288,492
113,034

Per Share:¥199,562
1,461
649
236,533
113,319$2,144,905
15,703
6,981
2,542,271
1,217,965

Yen

Basic net income (loss)¥(162.51)¥(19.00)

1

U.S. dollars

¥3.24

$0.03

Note:	The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated fromyen at the approximate exchange rate in Tokyo on March 31, 2010, of ¥93=U.S.$1.

Net Sales

Net Income

Total Equity(Millions of Yen)

(Millions of Yen)
300,000

1,000(Millions of Yen)
150,0000

200,000-1,000100,000-2,000100,000-3,00050,000-4,0000-35,000

2008

2009

0

2010

Non-Consolidated
Consolidated

2008

2009

Non-Consolidated
Consolidated

2010

2008

2009

Non-Consolidated
Consolidated

2010

35000
30000
25000
20000
15000
10000

3000001500005000
0250000Disclaimer Regarding Forecasts and Projections

1200001000

200000This Annual Report includes forecasts, projections and other predictive statements that represent Okumura’s assumptions
and expectations in light of currently avail90000
0able information. These forecasts, etc., are based on industry trends,
circumstances involving clients and other factors, and involve risks, variables and uncertainties.
150000The Okumura Group’s actual performance results may differ from those projected in this Annual Report. Consequently, no guarantee is presented or implied as to
60000
-1000
the accuracy of specific forecasts, projections or predictive statements
contained herein.
100000
-2000
50000
-3000

30000

To Our Shareholders

2

We would like to thank our shareholders for their continuing support and encouragement, and we wish eachof them the greatest success in their own range of endeavors.
A general overview of business performance for the period to March 2010 (April 1, 2009 to March
31, 2010) is provided in the following sections.

Fiscal 2010 Results
During the period under review, the Japanese economy saw signs of recovery in exports and production
in some sectors. However, the construction industry found itself in an even more challenging businessenvironment, hit by a slowdown in orders received due to declining capital investment in the private sector.
In these circumstances, the Company’s consolidated net sales fell 12.5% year on year, to¥198,494 million, and consolidated gross profit dipped 27.1%, to ¥15,912 million due to the deteriorationof construction profitability. On the other hand, consolidated operating income, at ¥864 million, exceeded
the targets set out in the Five-Year Medium-Term Business Plan since April 2008 for the second consecutive
year. The Company posted net income of ¥652 million, the first positive result in three years, by more thanmaking up for ¥1,353 million due to loss on fire accident and ¥1,022 million due to provision of allowancefor doubtful accounts as extraordinary losses.
Despite the first positive result in three years, the Company’s business remained stagnant. However, the Company decided to uphold its basic corporate policy regarding profit sharing and paid a regulardividend of ¥9.00 per share for the period ended March 31, 2010.

Looking Ahead and Key Strategies
The Japanese economy is expected to stage gradual recovery for a foreseeable future, led by external
demand. However, the construction industry will likely see a reduction in public spending and a prolonged
slowdown of capital expenditure in the private sector. The shrinking market is predicted to result in severe
competition among construction companies.
In these circumstances, the Okumura Group, guided by its Five-Year Medium-Term Business Plan
that went into force in April 2008, will remain committed to the selective order-taking approach and moveahead with structural reform. The reform includes streamlining to facilitate the Company’s transformation
into a business with highly profitable structure and achievement of higher managerial efficiency, while
maintaining a healthy financial position.

Okumura Corporation Annual Report 20103

In civil engineering operations, our specific actions will include further encouragement of targeted
cost reductions, a selective approach to focused projects based on proprietary technologies and past works
executed, and initiatives to develop greater organizational readiness for bidding procedures including
comprehensive evaluation and to boost the accuracy of cost estimation. All of these actions aim to strengthen
the engineering solutions delivered to clients and enhance the Company’s price competitiveness.
In construction operations, where persistent price competition is a key factor in the bidding
process and clients’ needs are diversifying, the Company will seek to avoid competition based purely on
price factors by adopting a selective bidding approach that places utmost priority on project profitability foreach intended use category of buildings. Efforts parallel to this will seek to boost the rate of design andconstruction projects that fully leverage Okumura’s strengths and unique added value, including technologies
for advanced seismic isolation, high-rise buildings and acoustic simulation. In addition, the Company is
stepping up efforts to spread its expertise across the organization under a centralized management
structure for VE/CD proposals with the goal of improving profitability.
The environment surrounding real estate operations is expected to remain difficult, with a positive
turnaround in business unlikely in the short term. However, the Company plans to continue to engage inleasing activities by maximizing the potential use of company-held properties to secure stable profit.
In the area of the Company’s organization, attempts to improve the earnings structure are being
made primarily through cost reductions, which consist of adjusting the workforce to match the businessscale and downsizing of the organizational and management structure to achieve higher efficiency.
For the future, Okumura will apply all of its resources with the aim of responding quickly andflexibly to shifting trends and the changing operating environment, and thereby build a strong businessfoundation in accordance with its corporate philosophy, which has endured through the many years
since the Company’s foundation. This will enable Okumura to maintain the trust and confidence of its
shareholders.
In all its efforts, the Company looks forward to the continued support and patronage of its
shareholders.
June 2010

Takanori Okumura
President and Representative Director

Review of Operations
Major Projects Completed
BUILDINGS

4
Komori Corporation:
Tsukuba Plant (Phase III)
Eastcore Hikifune 2 Bankan (S Tower)
Work period: October 2005 to November 2009
Structure: RC
Total floor area: 55,915.89m2

Work period: August 2008 to October 2009
Three plants: Steel structure
Total floor area: 24,844.84m2

GRAND-SUITE Chikusa Tower
Work period: March 2008 to March 2010
Structure: RC (seismic isolation structure)
Total floor area: 17,121.33m2

Kisarazu-Daiichi Elementary School: Feeding CenterWork period: December 2007 to March 2010
Elementary school: RC, partially Steel structure
Total floor area: 7,321.52m2
Feeding center: Steel structure
Total floor area: 2,524.08m2

CIVIL ENGINEERING

Higashi-Meihan Expressway:
Shimada Construction WorkWork period: July 2005 toAugust 2009
Cut and cover method
Shallow trench structure
Total length: 628m
Aperture style: 546m
Box culvert: 82m

Hokkaido Odan Expressway:
Tantaka Tunnel Construction
Work
Work period: March 2006 to
March 2010
Total construction length: 2,856m
Total tunnel length: 2,383m
Earthwork length: 445m
Bridge length: 28m

Nakanoshima New Line:
Civil Engineering Works(Switchover Area to Keihan
Main Line)Work period: February 2003 toAugust 2009
Construction of Nakanoshima
New Line: L=178.5m
Relocation of Keihan conventional
railway lines: L=277m
Cut and cover method

Kyushu Shinkansen
Kagoshima Route:
Kitajima BL and Others
Work period: March 2006 to July 2009
Base course length: 308m
Bridge: 947m
Elevated bridge: total length of
1,255mOkumura Corporation Annual Report 2010

Orders Received
BUILDINGS

5
Osaka Detention House(Phase I :House of Detention A, B & C, Control Office, Staff
Dormitory - A)
Work period: March 2010 to May 2013
Structure: Steel, RC
Total floor area: 37,994.42m2

Abenobashi Terminal Building
Development Project:
Tower Building
Work period: December 2009 to
March 2014
Structure: Steel, partially SRC structure
Total floor area: 211,635.78m2

Sakai City Waste Disposal
Facility

Nexstage Takamishichijo
2 BankanWork period: April 2010 toMarch 2013
Waste disposal plant: RC, Steel, SRC,
structure
Total floor area: 13,643.45m2
Slag stockyard building and others:
two buildings

Work period: November 2009 to
May 2011
Structure: RC
Total floor area: 12,306.77m2

The Kiso River Genroku
Drainage System:
Reconstruction Work of
Sluice-Gate

The Kuzuryu River(Downstream Section): Second
Stage of Agricultural Irrigation
Project, Jugo No. 2 Ditch in
the Sadamune/Gohon
Construction Area

CIVIL ENGINEERINGThe Ishikari River Head Works:
Intake Sluice-Gate Exterior
Construction WorkWork period: June 2009 to
December 2010
Box culvert work:
2.5m x 3.4m x 3 unit, L=127m(83 blocks)
Flexible sluice-gate
Bridge abutment one piece

Route 42 Kiho Bypass: Kiho
Tunnel Construction WorkWork period: March 2010 to March2012
Tunnel length: 683m
Drilled length: 289m
Cross-section: 85.7m2
Full face cutting with short benchmethodWork period: January 2010 toMarch 2013
Box culvert work: 1.8×1.8 L=45.6m
Shielding wall, side/surface wing wall,gate pier, transit shed, water gate:individual construction work
Demolition work
Levee/bank revetment: L=250m

Work period: September 2009 to
March 2011
Earth pressure balanced shield method
External diameter of the shieldmachine: 4,680mm
External diameter of the segment
ring: 4,550mm
Total construction length: 765.369m

Topics❶ Difference in Speed of Oil Remediation

Shaft diameter (d)Oil concentration (mg/kg)

5,000
4,000

Remediation of oil-contaminated soil by local microorganisms
Remediation of oil-contaminated soil by the three bacteria
Slope angle
θ≦12°

3,000

θ
2,000
1,000
0
10/1

Flat height
500mm

Belling diameter50
10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17 12/24

6

Date of measurement❸ Inside the seminar hall

Effective belling
diameter (2.2d)50❷ Shape of the OMR/B pile

❷ New OMR/B excavator(shaft diameter=2,100mm, belling diameter=4,700mm)❸ Panel discussion❶ Development of Soil Remediation Technology by Introducing
Bacteria into Oil-Contaminated Soil

In cooperation with IIB, Inc., the Company has discovered threebacteria with superior oil degradation capability and developed
a technology to remediate oil-contaminated soil by introducing
bacteria into it.
The project proposal for soil remediation using thistechnology—the first project in Japan for remediation of oilcontaminated soil—is in accordance with the Guidelines for
Utilizing Micro-Organisms’ Bio-Remediation issued by the
Ministry of the Environment and the Ministry of Economy, Tradeand Industry. It has already been verified as safe for humans aswell as the ecosystem. The soil remediation technology for oilcontaminated soil is expected to be applied in the future tovarious sites such as oil tank facilities, gas stations, automobilerelated plants and chemical plants.
❷ Development of Large-Diameter Bell-Pile X2.2 Technique

In a joint effort with Marugo Foundation Corp., the Company
has developed the new OMR/B method (Bell-pile X2.2 technique),improving upon the previous Okumura/Marugo Bucket-type
Bell-pile technique (OMR/B method). Compared to the previous
method, the new OMR/B method offers a larger belling diameter(4,700mm compared with 4,100mm), a higher belling ratio(effective bell-out surface area/shaft surface area) (4.9 comparedwith 4.0), and finally, an improved design standard strength forconcrete (45N/mm2 compared with 42N/mm2). This method
received BCJ Certification (Certification #FD0255-03) from the
Building Center of Japan on January 22, 2010.
The new OMR/B method allows for a larger excavation
area with its pile for sites such as superhigh-rise buildings andwarehouses for heavy goods with large loads. In addition, theshaft diameter is smaller than a conventional bell pile, whichhelps reduce the environmental load as well as the cost due tothe decreased amount of excavated soil and material used.
❸ Hosting of a Technical Seminar

On December 2, 2009, Okumura hosted the 21st TechnicalSeminar at the Tokyo International Forum in Tokyo’s Chiyoda
Ward. The seminar was attended by approximately 200
participants from outside the Company, such as government
agencies and clients of Okumura from the private sector.
Okumura began hosting the seminar in 1988 as part ofthe collaboration among industrial, governmental and academic
sectors. In line with the theme“ Towards reducing environmental
risk—Soil contamination: Current situation and future measures,”
Tatemasa Hirata, director of Wakayama University, delivered
the keynote speech. Thereafter, a panel discussion was held
on topics including a summary of proposed revision of theSoil Contamination Countermeasures Act, the latest technicaltrends related to contamination investigation and contamination
countermeasures, methods for approaching contamination risks,and land value after contamination.
❹ Recipients of the Okumura Environmental Construction Technology Foundation Grant for the Fiscal Year Ended March 31, 2009
Are Announced

In 2007, the Company established a charitable trust fund, theOkumura Environmental Construction Technology Foundation
Grant, whose objective is to further promote the preservationand improvement of Japan’s environment by providing funds
to various research projects on construction technologies that

Okumura Corporation Annual Report 2010

❺ Exterior of the Okumura Commemorative❺ Seismic isolation simulator

Museum (seismic isolation structure)❻ Toyoshima Ohashi Bridge❻ Sewer tunnel construction for the

supplementary lines at an airport (south) near
the Neyagawa River (Section 3)❻ Flood-control dam construction at the

Iwaigawa River

reduce the environmental load.
The steering committee—comprising experts suchas university professors—met on July 7, 2009 to select therecipients and determine the amount of the grant awarded
for the fiscal year ended March 31, 2009. The foundation has
ensured that all those chosen for the fiscal year have received
the grant.

❻ Okumura Receives the Tanaka Award and Kansai Region Technology Award from the Japan Society of Civil Engineering (JSCE)
for Fiscal 2008 and the Japan Society of Dam Engineering (JSDE)
Technology Award

Research themes of the recipients are as follows:• Research on engineering property of soil mixed with waste
glass as banking material• Development of technology for conducting environmental
assessment that takes environmental renewal into account• Development of a formula for calculating soil remediation
concentration based on evaluation of health risks

Toyoshima Ohashi Bridge (the Company was responsible for the
lower section work) received the fiscal 2008 JSCE Tanaka Award(project category), while the sewer tunnel construction for the
supplementary lines at an airport (south) near Neyagawa River(Section 3) received the JSCE Kansai Region Technology Awardand the construction of the Iwaigawa River flood-control dam
was given the Technology Award by JSDE.

❺ Okumura Receives the Japan Society of Seismic Isolation (JSSI)Award for the Okumura Commemorative MuseumAwards and Prizes• JSCE Tanaka Award (Project category)Toyoshima Ohashi Bridge (Kure City, Hiroshima Prefecture)• JSCE Kansai Region Technology Award
Large sectional shield tunneling in densely populated area andits environmental conservation measures—Sewer tunnel construction for the supplementary lines at
an airport (south) near the Neyagawa River (Section 3) (YaoCity, Osaka Prefecture)• JSDE Technology Award
Construction of a flood-control dam at the Iwaigawa River(Nara City)The Okumura Commemorative Museum, designed and built
by Okumura, was selected for the 10th JSSI Project Awardin recognition of its contribution toward promoting seismic
isolation technologies. The award was presented to Okumura
during the society’s general meeting on June 4, 2009.
This award is given to a“ building or person/people that
contribute to the progress as well as the development andpromotion of seismic isolation technologies.” The Company
also received the Technology Award in 2008 for its seismic
isolation device for lighthouse lenses, making this year thesecond consecutive year that Okumura has received the award.
The award-winning museum, with its seismic isolation models,seismic isolation simulator, and seismic isolation device viewing
area, was recognized for its“ significant contribution toward

promoting and introducing seismic isolation technologies to thegeneral public.”

7

Consolidated Balance Sheets
Okumura Corporation and Consolidated Subsidiaries
As of March 31, 2010 and 2009

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

¥ 27,831¥ 30,811$ 299,133

Time deposits (Notes 12 and 13)

468

2,007

5,025

Marketable securities (Notes 3 and 12)

56

122

607

Trade notes (Note 12)

6,305

5,790

67,762

Trade accounts (Note 12)56,74457,404

609,893

ASSETS

Current assets:
Cash and cash equivalents (Note 12)8Receivables:

Unconsolidated subsidiaries and associated companies (Note 12)
Other
Allowance for doubtful receivables
Inventories (Note 4)

157

1,214

1,693

10,803

14,469116,110(3,802)(4,316)(40,867)

73,739116,044792,548

Prepaid expenses and other

639

983

6,867

Total current assets

172,940

224,528

1,858,771

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

16,68016,680179,277

Buildings and structures

16,161

15,577

173,701

Machinery and equipment

3,355

4,046

36,062

Furniture and fixtures

2,160

2,240

23,213

Lease assets (Note 11)

27

9

288

40

752

426

38,42339,304412,967(14,285)(15,183)(153,536)

24,13824,121

259,431

Investment securities (Notes 3, 12 and 13)

42,49641,443456,745

Investments in and advances to unconsolidated subsidiaries and associated companies (Note 12)

1,138

793

12,226

450

1,988

4,833

Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

Investments and other assets:Long-term loans receivable (Note 12)
Other assets

4,049

2,259

43,535

Allowance for doubtful receivables(3,452)(1,455)(37,100)

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

44,68145,028480,239¥241,759¥293,677$2,598,441

Okumura Corporation Annual Report 2010

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

Short-term bank loans including current portion of long-term debt (Notes 6, 11 and 12) ¥ 10,319¥ 9,498$ 110,905

LIABILITIES AND EQUITYCurrent liabilities:
Payables:Trade notes (Note 12)

4,843

11,642

52,054

Trade accounts (Note 12)35,302

63,596379,432

195

222

2,099

40,796

60,769438,482

Income taxes payable

248

241

2,667

Allowance for warranty work on construction projects

408

457

4,382

Other
Advances received on construction projects in progress

Allowance for losses on construction contracts

5,752

5,133

61,821

Other

13,61512,807

146,328

111,478

164,365

1,198,170

247

266

2,659

Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6, 11 and 12)
Liability for retirement benefits (Note 7)

5,785

5,639

62,174

Deferred tax liabilities (Note 9)

7,806

6,937

83,895

Negative goodwill

851

1,134

9,144

Other

123

181

1,334

Total long-term liabilities

14,812

14,157

159,206

Total liabilities

126,290

178,522

1,357,376

19,83919,839213,230

Capital surplus

25,32725,327272,219

Retained earnings

72,20073,347776,012

Unrealized gain on available-for-sale securities

10,435

8,959

112,152(12,332)(12,317)(132,548)

Total equity

115,469

115,155

1,241,065

Total¥241,759¥293,677$2,598,441

Commitments and contingent liabilities (Notes 11 and 13)

Equity (Notes 8 and 14):
Common stock
authorized, 480,376,000 shares; issued, 228,326,133 shares

Treasury stock—at cost
28,496,086 shares in 2010 and 28,451,549 shares in 20099

Consolidated Statements of Operations
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2010 and 2009

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

¥198,494
182,582
15,912¥226,974
205,154
21,820$2,133,421
1,962,403
171,018

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

15,048864

17,421
4,399

161,731
9,287

Other income (expenses):
Interest and dividend income
Interest expense
Amortization of negative goodwill
Gain on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Gain on sales of investment securities
Impairment losses on investment securities
Provision of allowance for doubtful accounts
Loss on fire accident
Extra payments for early retirement
Write down of real estate and other
Other—net
Other expenses—net

956
(197)
284
961
(228)
434
(168)
(1,022)(1,353)
—
—
217
(116)

1,520
(192)
284
418
(109)
45
(2,730)——(4,152)(3,274)601(7,589)10,279(2,118)3,048
10,332(2,454)
4,664(1,803)(10,989)(14,546)——
2,339(1,248)

Income (loss) before income taxes

748(3,190)

8,039

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

137
(41)
96

121
95
216

1,471
(436)
1,035

¥ 652

¥ (3,406)$ 7,004

Yen

U.S. dollars(Note 1)¥(17.03)
9.00$ 0.040.10

Net sales
Cost of sales
Gross profit

10

Net income (loss)
Per share of common stock (Notes 2.n and 14):
Basic net income (loss)
Cash dividends applicable to the year
See notes to consolidated financial statements.

¥ 3.269.00

Consolidated Statements of Changes in Equity
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2010 and 2009

Okumura Corporation Annual Report 2010

Thousands

Millions of yen

Outstanding
number ofshares ofcommonstock

Retainedearnings

Unrealized
gain onavailable
for-salesecurities

Commonstock

CapitalsurplusTreasury
stock

Total
equityBALANCE, MARCH31, 2008
Net loss
Cash dividends, ¥9 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2009

200,018
—
—
(178)
35
—
199,875¥19,839—————¥19,839¥25,329———(2)—¥25,327¥78,553(3,406)(1,800)———¥73,347¥17,360————(8,401)¥ 8,959¥(12,261)
—
—
(71)
15
—
¥(12,317)¥128,820(3,406)(1,800)(71)
13(8,401)¥115,155

Net income
Cash dividends, ¥9 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2010

—
—
(50)
5
—
199,830—————¥19,839

—
—
—
(0)
—
¥25,327652(1,799)———¥72,200

—
—
—
—
1,476
¥10,435

—
—
(18)
3
—
¥(12,332)

652(1,799)
(18)
3
1,476
¥115,469

Unrealized
gain onavailable
for-salesecurities

Thousands of U.S. dollars (Note 1)

Commonstock

CapitalsurplusRetainedearnings

BALANCE, MARCH 31, 2009

$213,230$272,224$788,342

Net income
Cash dividends, $0.10 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2010

—
—
—
—
—
$213,230

—
7,004
—
—
7,004
—
(19,334)——(19,334)
—
—
—
(193)
(193)
(5)
—
—
26
21
—
—
15,870—15,870$272,219 $776,012 $112,152 $(132,548) $1,241,065

See notes to consolidated financial statements.

Treasury
stock

Total
equity$96,282 $(132,381) $1,237,697

11

Consolidated Statements of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2010 and 200912

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2009

2010

748

¥ (3,190)

(41)
956
(284)
1,528
228
(961)
228
—
—
1,353

(158)
944
(284)
991
109
(418)
2,793
4,152
3,274
—

(439)
10,277(3,048)16,425
2,454(10,332)
2,450——
14,546(853)
44,338(3,447)(29,976)(19,973)
146
994(5,764)(5,016)

20,739(946)(1,858)(11,550)(7,403)114(2,365)
8,134
4,944

(9,171)
476,546(37,049)(322,189)(214,671)
1,568
10,681(61,952)(53,913)

Cash flows from investing activities:
Net decrease in time deposits
Payments for purchases of securities
Proceeds from sales of securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Investment in loans receivableCollection of loans receivable
Other—net
Net cash provided by investing activities

1,540
(98)
1,694
(911)
999
(504)
296
108
3,124

215
(276)
9,353
(1,972)
518
(288)
258
81
7,889

16,548(1,055)
18,206(9,789)10,737(5,421)
3,184
1,163
33,573

Cash flows from financing activities:
Increase (decrease) in short-term bank loans—net
Repayments of long-term debt
Purchase of treasury stock
Disposal of treasury stock
Dividends paid
Other
Net cash used in financing activities

775
(33)
(18)
2
(1,800)(4)(1,078)(1,319)
(158)
(71)
14
(1,804)(1)(3,339)

8,326
(352)
(192)
21
(19,347)(36)(11,580)(10)(2,980)30,811¥27,831

(128)
9,366
21,445¥30,811(109)(32,029)
331,162$299,133

Cash flows from operating activities:
Income (loss) before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of negative goodwill
Provision for doubtful receivables
Loss on disposal of property, plant and equipment
Gain on sales of property, plant and equipment
Impairment losses on marketable and investment securities
Extra payments for early retirement
Write down of real estate and other
Loss on fire accident
Changes in assets and liabilities:
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in accumulated costs of construction projects in progress
Increase in other inventories
Decrease in trade notes and accounts payable
Decrease in advances received on construction projects in progress
Increase in liability 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 increase (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.

¥

$

8,039

Notes to the Consolidated Financial Statements
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 2010 and 2009

1. Basis of Presenting 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 conformity withaccounting principles generally accepted in Japan (”Japanese
GAAP”), which are different in certain respects as to application and disclosure requirements of International Financial
Reporting Standards.
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 2009 financial statements to conformto the classifications used in 2010.
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 ¥93 to $1,
the approximate rate of exchange at March 31, 2010. Suchtranslations 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, 2010 and 2009 include the accounts of theCompany and its 2 significant subsidiaries (together, the”Group”) ·Under the control or influence concept, 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 7 (6 in 2009) unconsolidated subsidiaries
and 2 associated companies are stated at cost. If the equity
method of accounting had been applied to the investmentsin these companies, the effect on the accompanying consolidated financial statements would not be material.
The difference between the cost of investments and thefair value of net assets of consolidated subsidiaries and associated companies at the date of acquisition are amortized ona straight-line basis over 5 years.
All significant intercompany balances and transactions
have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within
the Group is eliminated.
b. Cash Equivalents — Cash equivalents are short-term
investments that are readily convertible into cash and that are

Okumura Corporation Annual Report 2010

exposed to insignificant risk of changes in value. Cash equivalents include time deposits and certificate of deposits, all ofwhich mature or become due within 3 months of the date ofacquisition.
c. 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 specific identification method or net selling value, which is definedas the selling price less additional estimated manufacturingcosts and estimated direct selling expenses.
d. Marketable and Investment Securities — Marketable
and investment securities are classified and accounted for,depending on management’s intent, as follows:i) held-to-maturity debt securities, which are expected to beheld to maturity with the positive intent and ability to hold tomaturity, are reported at amortized cost and ii) available-forsale securities, which are not classified as the held-to-maturity, are reported at fair value, with unrealized gains and losses,
net of applicable taxes, reported in a separate component ofequity.
Non-marketable available-for-sale securities are statedat cost 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.
Equities of limited liability partnerships for investment
purpose and of other similar partnerships (defined as ”securities” by Section 2 of Article 2 of the Financial Instruments
and Exchange Act) are valued at the equivalent net equity
based on the recently available financial statements of thepartnerships corresponding to the reporting dates of thefinancial statements defined by the partnership agreements.
e. Property, Plant and Equipment — Property, plant andequipment are stated at cost. Depreciation is computed by
the declining-balance method based on the estimated useful
lives of the assets, while the straight-line method is applied tobuildings acquired after April 1, 1998 and lease assets. The
range of useful lives is principally from 3 to 60 years forbuildings and structures, from 4 to 17 years for machineryand equipment, and from 2 to 20 years for furniture and fixtures. The useful lives for lease assets are the terms of therespective leases.
f. 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 would berecognized 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

13

use and eventual disposition of the asset or the net selling
price at disposition.
g. Allowance for Doubtful Receivables — The allowancefor doubtful accounts is stated in amounts considered to beappropriate based on the Companies’ past credit loss experience and an evaluation of estimated losses in the receivables
outstanding.

14

h. 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 rate expenses.
i. Allowance for Losses on Construction Contracts —Allowance for losses on construction contracts is provided
with respect to construction projects for which eventual losses are reasonably expected and estimated.
j. Employees' Retirement Benefits — The Company has acontributory funded pension plan covering substantially all of
their employees.
Liability for retirement benefits for employees is recorded based on the estimated present value of projected benefit
obligations and 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
subsequent to the year in which they arise on a straight-line
basis over the period of 10 years which is within the employees’ average remaining service years. Unrecognized prior service costs have been amortized on straight-line over theperiod of 10 years which is within the employees’ averageremaining service years.
k. Construction Contracts — The Company recognizes theconstruction revenue and construction costs 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 completionof the contract at the balance sheet date can be reliably measured, the outcome of a construction contract can be estimated reliably. The percentage of completion is determinedusing the percentage of the cost incurred to the estimatedtotal cost.
(Change of accounting method-2010)
Prior to April 1, 2009, the Company recognized the construction revenue for construction contracts whose total contract
amounts are more than ¥5 billion ($53,740 thousand) andthe construction period exceeded two years under the percentage-of-completion method and for other contracts under
the completed-contract method.
However, in December 2007, the Accounting Standards
Board of Japan (the “ASBJ”) issued ASBJ Statement No. 15“Accounting Standard for Construction Contracts” and ASBJ

Guidance No. 18 “Guidance on Accounting Standard forConstruction Contracts”. Under the previous Japanese GAAP,
either the completed-contract method or the percentage-ofcompletion method was permitted to account for construction contracts. Under this new accounting standard, theconstruction revenue and construction costs should be 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 the contract at the balance
sheet date can be reliably measured, the outcome of a construction contract can be estimated reliably. If the outcomeof a construction contract cannot be reliably estimated, thecompleted-contract method should be applied. This standard
is applicable to construction contracts and software development contracts and effective for fiscal years beginning on orafter April 1, 2009. The Company applied the new accounting standard effective April 1, 2009. The effect of this change
was to increase operating income and income before income
taxes by ¥843 million ($9,066 thousand), respectively, for theyear ended March 31, 2010.
The revenues recognized by the percentage-of-completion method for the years ended March 31, 2010 and 2009were ¥43,052 million ($462,735 thousand) and ¥37,105 million, respectively.
l. Leases — In March 2007, the ASBJ issued ASBJ Statement
No.13, “Accounting Standard for Lease Transactions”, whichrevised the previous accounting standard for lease transactions issued in June 1993. The revised accounting standard
for lease transactions is effective for fiscal years beginning on
or after April 1, 2008 with early adoption permitted for fiscal
years beginning on or after April 1, 2007.
Under the previous accounting standard, finance leases
that deemed to transfer ownership of the leased property to
the lessee were to be capitalized. However, other financeleases were permitted to be accounted for as operating leasetransactions if certain “as if capitalized” information is disclosed in the notes to the lessee’s financial statements. The
revised accounting standard requires that all finance leasetransactions should be capitalized to recognize lease assets
and lease obligations in the balance sheet. In addition, therevised accounting standard permits leases which existed at
the transition date and did not transfer ownership of theleased property to the lessee to be accounted for as operating leases transactions.
The Company applied the revised accounting standard
effective April 1, 2008. In addition, the Company accounted
for leases which existed at the transition date and do nottransfer ownership of the leased property to the lessee as
operating lease transactions.
All other leases are accounted for as operating leases.
m. Income Taxes — The provision for income taxes is computed based on the pretax income included in the consolidat-

Okumura Corporation Annual Report 2010

ed statements of operations. The asset and liability approachis used 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 tax laws to the temporary differences.
n. Per Share Information — Basic net income per share iscomputed by dividing net income available 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 dilutive effect upon exercise orconversion into common stock.
Cash dividends per share presented in the accompanying consolidated statements of operations are dividends
applicable to the respective years including dividends to be
paid after the end of the year.
o. New Accounting Pronouncements
Asset Retirement Obligations — On March 31, 2008, the
ASBJ published a new accounting standard for asset retirement obligations, ASBJ Statement No.18 ‘‘AccountingStandard for Asset Retirement Obligations” and ASBJ
Guidance No.21 ‘‘Guidance on Accounting Standard for
Asset Retirement Obligations”. Under this accounting standard, an asset retirement obligation is defined as a legal obligation imposed either by law or contract that results fromthe acquisition, construction, development and the normal
operation of a tangible fixed asset and is associated with theretirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sumof 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 areasonable 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 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 increase or adecrease in the carrying amount of the liability and the capitalized amount of the related asset retirement cost. This standard is effective for fiscal years beginning on or after April 1,2010 with early adoption permitted for fiscal years beginningon or before March 31, 2010.

Accounting Changes and Error Corrections — In December
2009, ASBJ issued ASBJ Statement No.24 “AccountingStandard for Accounting Changes and Error Corrections” andASBJ Guidance No.24 “Guidance on Accounting Standard for
Accounting Changes and Error Corrections”. Accounting
treatments under this standard and guidance are as follows;(1) Changes in Accounting Policies:
When a new accounting policy is applied with revision of
accounting standards, a new policy is applied retrospectively
unless the revised accounting standards include specific transitional provisions. When the revised accounting standards
include specific transitional provisions, an entity shall comply
with the specific transitional provisions.
(2) Changes in Presentations
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.
This accounting standard and the guidance are applicable to accounting changes and corrections of prior period
errors which are made from the beginning of the fiscal yearthat begins on or after April 1, 2011.
Segment Information Disclosures — In March 2008, the
ASBJ revised ASBJ Statement No.17 “Accounting Standard
for Segment Information Disclosures” and issued ASBJ
Guidance No.20 “Guidance on Accounting Standard for
Segment Information Disclosures”. Under the standard andguidance, an entity is required to report financial and descriptive information about its reportable segments. Reportablesegments are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate
financial information is available and such information is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. Generally, segment information is required to bereported on the same basis as is used internally for evaluating
operating segment performance and deciding how to allocate resources to operating segments. This accounting standard and the guidance are applicable to segment information
disclosures for the fiscal years beginning on or after April 1,
2010.

15

3. Marketable and Investment Securities
Marketable and investment securities as of March 31, 2010 and 2009 consisted of the following:
Millions of yen

Thousands of
U.S. dollars

2009

2010

2010

16

Current:
Government and corporate bonds
Other
Total

¥

Non-current:
Marketable equity securities
Trust fund investments and otherTotal¥39,924
2,572¥42,496

¥

—
56
56

¥
¥

1
121
122

¥37,810
3,633¥41,443

$
$

—
607
607

$429,109
27,636$456,745

The costs and aggregate fair values of marketable and investment securities at March 31, 2010 and 2009 were as follows:
Millions of yen

March 31, 2010

Securities classified as:
Available-for-sale:
Equity securities
Debt securities

Cost

Unrealized
gains

Unrealized
lossesFair
value¥23,786
1,200¥16,983
8¥ 845
171¥39,924
1,037¥24,066
2,200¥14,721—¥ 977
155¥37,810
2,045

Cost

Unrealized
gains

Unrealized
lossesFair
value$255,656
12,898$182,53489$9,081
1,845$429,109
11,142

March 31, 2009

Securities classified as:
Available-for-sale:
Equity securities
Debt securities

Thousands of U.S. dollars

March 31, 2010

Securities classified as:
Available-for-sale:
Equity securities
Debt securities

Okumura Corporation Annual Report 2010

Available-for-sale securities and held-to-maturity securities whose fair value is not readily determinable as of March 31, 2009were as follows. The similar information for 2010 is disclosed in Note 12.
Carrying amountMarch 31, 2009
Available-for-sale:
Equity securities
Held-to-maturity
Total

Millions of yen¥1,7091¥1,710

Proceeds from sales of available-for-sale securities for the years ended March 31, 2009 were ¥3,742 million. Gross realized
gains and losses on these sales, computed on the moving average cost basis, were ¥685 million and ¥640 million, respectively,
for the year ended March 31, 2009.
The information of available-for-sale securities which were sold during the year ended March 31, 2010 was as follows:
Millions of yen

March 31, 2010
Available-for-sale:
Equity securities

Proceeds

Realized
gains

Realizedloss¥  687¥  436¥ 2

Proceeds

Realized
gains

Realized
loss$7,379$4,683$19

Thousands of U.S. dollars

March 31, 2010
Available-for-sale:
Equity securities

The impairment losses on available-for-sale equity securities for the years ended March 31, 2010 and 2009 were ¥109 million($1,174 thousand) and ¥2,624 million, respectively.
4. Inventories
Inventories at March 31, 2010 and 2009 consisted of the following:
Millions of yen

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

Thousands of
U.S. dollars

2010

2009

2010

¥57,785
10,017
4,552
1,385¥73,739¥103,538
1,876
9,380
1,250
¥116,044$621,078
107,656
48,92814,886$792,5481718

5. Investment Property
On November 28, 2008, the ASBJ issued ASBJ Statement No.20“Accounting Standard for Investment Property and Related
Disclosures” and issued ASBJ Guidance No.23“Guidance on Accounting Standard for Investment Property and Related
Disclosures”. This accounting standard and the guidance are applicable to investment property and related disclosures at theend of the fiscal years ending on or after March 31, 2010. The Group applied the new accounting standard and guidance
effective March 31, 2010.
The Group holds some rental properties such as office buildings, warehouses, and land in Osaka and other areas. Somerental warehouses, part of which the Company uses, are classified as rental properties in part.
Net of rental income and operating expenses for those rental properties was ¥2,130 million ($22,896 thousand) for the
fiscal year ended March 31, 2010.
The carrying amounts, changes in such balances and market prices of such properties are as follows:
Millions of yen
Fair value

Carrying amountRental properties
Rental properties in part
Total

April 1,
2009

Increase/
Decrease

March 31,2010

March 31,2010

¥14,013
1,597¥15,610

¥387
(60)
¥327

¥14,400
1,537¥15,937¥31,867
9,767¥41,634
Thousands of U.S. dollars
Fair value

Carrying amountRental properties
Rental properties in part
Total

April 1,
2009

Increase/
Decrease

March 31,2010

March 31,2010

$150,619
17,161$167,780$4,154(646)$3,508$154,773
16,515$171,288$342,514
104,971$447,485

Notes:
1) Carrying amount recognized in balance sheet is net of accumulated depreciation and accumulated impairment losses, if any.
2) F air value of properties as of March 31, 2010 is measured by the Group in accordance with its Real-estate Appraisal Standard.
6. Short-term Bank Loans and Long-term Debt
Short-term bank loans at March 31, 2010 and 2009 consisted of notes to banks and bank overdrafts. The annual interest rates
applicable to the short-term bank loans ranged from 1.475% to 2.000% and 1.475% to 2.060% at March 31, 2010 and2009, respectively.
Long-term debt at March 31, 2010 and 2009 consisted of the following:

Loans from banks and other financial institutions, due serially to 2031
with interest rates ranging from 1.39% to 5.70%
Collateralized
Unsecured
Obligations under finance leases
Total
Less current portionLong-term debt, less current portion

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥ 57
193
24
274
(27)
¥247

¥ 74
209
8
291
(25)
¥266

$ 617
2,074
253
2,944
(285)
$2,659Annual maturities of long-term debt, excluding finance leases (see Note 11) at March 31, 2010, were as follows:Year Ending March 31

Millions of yen

Thousands of
U.S. dollars

2011
2012
2013
2014
2015
2016 and thereafter
Total

¥ 20
20
20
20
20
150
¥250

$ 220
217
215
214
213
1,612
$2,691

Okumura Corporation Annual Report 2010

The carrying amounts of assets pledged as collateral for the above collateralized long-term debt at March 31, 2010 were as follows:
Millions of yen

Thousands of
U.S. dollars

¥88

$948

Property, plant and equipment — net of accumulated depreciation

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 Company has never been requested to provide any additional collateral.
7. Employees’ Retirement Benefits
Most of the employees of the Company are covered by a contributory trusted pension plan.
The Company has lump-sum retirement benefit plans and a cash balance plan (pension plan linked to the market interest
rates) based on the Defined Benefit Corporate Pension Law.
The liability for employees’ retirement benefits at March 31, 2010 and 2009 consisted of the following:

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial differences
Unrecognized transitional obligation
Unrecognized prior service cost
Net liability

2010

Millions of yen
2009

Thousands of
U.S. dollars
2010¥30,500(25,930)
770
275
170
¥ 5,785¥32,208(26,822)
(268)
330
191
¥ 5,639$327,810(278,696)
8,281
2,957
1,822
$ 62,174

The components of net periodic benefit costs for the years ended March 2010 and 2009 are as follows:

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Amortization of transitional obligation
Amortization of prior service cost
Net periodic benefit costs

2010

Millions of yen
2009

Thousands of
U.S. dollars
2010¥1,040
644
(429)
35
(55)
(21)
¥1,214¥1,364
826
(571)
(162)
(56)
(21)
¥1,380$11,178
6,920(4,613)
382
(591)
(228)
$13,048

Assumptions used for the years ended March 31, 2010 and 2009 are set forth as follows:
Discount rate
Expected rate of return on plan assets
Amortization of prior service cost
Recognition period of actuarial gain / loss
Amortization period of transitional obligation

2010

2009

2.0%
1.6%
10 years
10 years
15 years

2.0%
1.5%
10 years
10 years
15 years

19

20

8. Equity
Japanese companies are subject to the Companies Act of Japan (the ”Companies Act”). The significant provisions in the
Companies Act that affect financial and accounting matters are summarized below:(1) 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. For companies that meet certain criteria such as; (1) having the Board of
Directors, (2) having independent auditors, (3) having the Board of Corporate Auditors, and (4) the term of service of thedirectors is prescribed as one year rather than two years of normal 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 prescribedso in its articles of incorporation. However, the Company cannot do so because it does not meet all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to acertain 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.
(2) 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 total of aggregate amount of legal reserve and additional paid-in capital equals 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 under certain conditions
upon resolution of the shareholders.
(3) 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
the shareholders which is determined by specific formula. Under the Companies Act, stock acquisition rights, are presented
as a separate component of equity. The Companies Act also provides that companies can purchase both treasury stockacquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity
or deducted directly from stock acquisition rights.

Okumura Corporation Annual Report 2010

9. Income Taxes
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate,
resulted in normal effective statutory tax rates of approximately 40.6% for the years ended March 31, 2010 and 2009.
The tax effects of significant temporary differences and tax loss carry-forwards which resulted in deferred tax assets andliabilities at March 31, 2010 and 2009 are as follows:

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

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥11,211
3,274
3,072
2,349
2,348
2,335
767
576
314
328
(26,574)—¥11,824
3,579
3,137
2,391
2,290
2,094
775
805
329
391
(27,615)—$120,493
35,18933,01625,24325,24225,099
8,244
6,196
3,374
3,522
(285,618)—(5,526)(2,280)(7,806)¥ (7,806)(4,616)(2,321)(6,937)¥ (6,937)(59,389)(24,506)(83,895)$ (83,895)

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying consolidated statement of operations for the year ended March 31, 2010 is as follows:2010

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

40.6%
11.2
(20.1)
18.3(33.4)(3.7)
12.9%

The reconciliation for the year ended March 31, 2009 is not presented because of the net loss.

21

10. Research and Development Costs
Research and development costs charged to income were ¥644 million ($6,919 thousand) and ¥706 million for the years ended
March 31, 2010 and 2009, respectively.

22

11. Leases(1) Finance leases
The Group leases certain machinery and equipment, office space and other assets.
Total rental expenses including lease payments under finance leases for the years ended March 31, 2010 and 2009 were
¥37 million ($395 thousand) and ¥51 million, respectively.
Obligations under finance leases were as follows:
Millions of yen

Due within one year
Due after one year
Total

Thousands of
U.S. dollars

2010

2010

¥ 6
18
¥24

$ 64
189
$253

Pro forma information of leased property whose lease inception was before March 31, 2008
ASBJ Statement No.13, ”Accounting Standard for Lease Transactions” requires that all finance lease transactions should be capitalized to recognize lease assets and lease obligations in the balance sheet. However, the ASBJ Statement No. 13 permits leases without ownership transfer of the leased property to the lessee whose lease inception was before March 31, 2008 to beaccounted for as operating lease transactions if certain “as if capitalized” information is disclosed in the note to the financial
statements. The Company applied the ASBJ Statement No. 13 effective April 1, 2008 and accounted for such leases as operating lease transactions. Pro forma information of leased property whose lease inception was before March 31, 2008 such as
acquisition cost, accumulated depreciation, accumulated impairment loss, obligations under finance leases, depreciation
expense, interest expense and other information of finance leases that do not transfer ownership of the leased property to thelessee on an “as if capitalized” basis was as follows:
Millions of yen

Acquisition cost
Accumulated depreciation
Net leased property

Thousands of
U.S. dollars

2010

2009

2010

Machineryandequipment

Machineryandequipment

Machineryandequipment

¥82
60
¥22

¥207
151
¥ 56

$885
644
$241

Obligations under finance leases which existed at the transition date and do not transfer ownership of the leased property to
the lessee:
Millions of yen

Due within one year
Due after one year
Total

Thousands of
U.S. dollars

2010

2009

2010

¥13
9
¥22

¥33
23
¥56

$142
99
$241

The amount of acquisition cost and obligations under finance leases includes the imputed interest expense portion.
Depreciation expenses, which are not reflected in the accompanying statements of operations, computed by the straightline method were ¥33 million ($360 thousand) and ¥49 million for the years ended March 31, 2010 and 2009, respectively.

Okumura Corporation Annual Report 2010

(2) Operating leases
Future minimum lease receivables or payments under non-cancellable operating leases at March 31, 2010 and 2009 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

2010

2009

2010

¥ 1,860
22,099¥23,959¥ 1,766
22,050¥23,816$ 19,993
237,517$257,510¥¥$    352
1,376$   1,728

¥

33
128
161

¥

26
140
166

12. Financial Instruments and Related Disclosures
On March 10, 2008, the ASBJ revised ASBJ Statement No.10“Accounting Standard for Financial Instruments” and issued ASBJ
Guidance No.19“Guidance on Accounting Standard for Financial Instruments and Related Disclosures”. This accounting standard and the guidance are applicable to financial instruments and related disclosures at the end of the fiscal years ending on orafter March 31, 2010 with early adoption permitted from the beginning of the fiscal years ending before March 31, 2010. The
Group applied the revised accounting standard and the new guidance effective March 31, 2010.
1) Group policy for financial instruments
At the Group, cash surpluses, if any, are invested in low risk and capital-safe financial assets. Short-term bank loans are used
to fund its ongoing operations.
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.
3) Risk management for financial instruments
Credit Risk Management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay or service debt according to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include continuously
grasping the customers circumstances from the phase of accepting orders to that of collection of the receivables, along with
monitoring of payment term and balances each transaction.
Market risk management (foreign exchange risk and interest rate risk)
Marketable and investment securities are managed by monitoring market values and financial position of issuers on a regularbasis. Also, the Group continuously reviews its possession of those securities except for held-to-maturity securities.
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.
4) Fair values of financial instruments
Fair values of financial instruments are based on quoted prices in active markets. If quoted price is not available, other rational valuation techniques are used instead.

23

(a) Fair values of financial instruments
Millions of yen

March 31, 201024

Carrying
amountFair value

Unrealized
gain/loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables
Subtotal
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable
Subtotal
Total¥ 28,299
63,092(3,640)59,45240,961
1,072
(453)
619
¥129,331¥ 28,299¥ —59,43840,961(14)—623¥129,321

4¥ (10)

Short-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total¥ 10,292
40,14524¥ 50,461¥ 10,292
40,14523¥ 50,460

¥ —
—
(1)
¥ (1)

Thousands of U.S. dollars

March 31, 2010

Carrying
amountFair value

Unrealized
gain/loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables
Subtotal
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable
Subtotal
Total$  304,158
678,123(39,124)
638,999
440,251
11,523(4,873)6,650$1,390,058$  304,158$   —638,847
440,251

(152)
—

6,695
$1,389,951

45$ (107)

Short-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total$  110,621
431,485253$  542,359$  110,621
431,485242$  542,348

$   —
—
(11)
$ (11)

Amounts due from unconsolidated subsidiaries and associated companies is included in receivables—trade notes and accounts
and long-term loans receivable, respectively.

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.
Investment securities
The fair values of investment securities are measured at the quoted market price of the stock exchange for the equity instruments, and at the quoted price obtained from the financial institution for certain debt instruments. The
information of the fair value for the investment securities by classification is included in Note 3.
Receivables—trade notes and accounts and long-term loans receivable
The fair values of receivables—trade notes and accounts and long-term loans receivable are measured at theamount to be received at maturity discounted at the Group’s assumed corporate discount rate, such as the rate ofnational bonds to the maturity. Also, the amounts of the allowance for doubtful receivables are deducted from thefair values.

Okumura Corporation Annual Report 2010

Payables—trade notes and accounts and short-term bank loans
The carrying values of payables—trade notes and accounts and short-term bank loans approximate fair value
because of their short maturities.
Long-term debt—lease obligation
The fair values of long-term debt—lease obligation are determined by discounting the cash flows related to the debt
at the Group’s assumed corporate borrowing rate.
(b) Financial instruments whose fair value cannot be reliably determined
Carrying amountThousands ofMillions of yen
U.S. dollars

March 31, 2010

Investments in equity instruments that do not have a quoted market price in an active market
Other¥1,789¥    56$19,226$   6075) Maturity analysis for financial assets and securities with contractual maturities
Millions of yen

March 31, 2010

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

Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years¥28,299
61,253

¥ —
1,839

¥—
—

¥

—
—
¥89,552—
1,012¥2,851

—
12
¥12

1,200
49
¥1,249

Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years$304,158
658,355$
—19,768$

——$962,513—
10,870$30,638—127$ 127

Due after
ten years——

Thousands of U.S. dollars

March 31, 2010

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

—
—

Due after
ten years$——12,898526$13,424

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

2513. Commitments and Contingent Liabilities
The Group guarantees deposits made by condominium purchasers amounting to ¥8 million ($81 thousand) at March 31, 2010
in connection with sales contracts of condominiums which were constructed by the Group.
Investments in securities in the amount of ¥64 million ($688 thousand) are pledged as collateral for the loans of an affiliate at March 31, 2010. Time deposits in the amount of ¥7 million ($77 thousand) and ¥100 million ($1,079 thousand) arepledged for construction projects and for sale of shield excavators at March 31, 2010, respectively.

26

14. Subsequent Events
Appropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2010 was approved at the Company’s shareholders meeting heldon June 29, 2010.
Millions of yen

Thousands of
U.S. dollars¥1,798$19,330

Year-end cash dividends, ¥9 ($0.10) per share

15. Segment Information
Information about industry segments of the Group for the years ended March 31, 2010 and 2009, is as follows:
Industry segments
Major components of each business segment are as follows:
		 Construction: Civil engineering, buildings and other construction projects
		 Real estate: Sale and lease of real estate		 Other: Manufacturing and distribution of construction materials and equipment, etc.
a. Sales and operating income
Millions of yen
2010

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income

Construction

Real estate

Other

Eliminations/
Corporate

Consolidated¥187,949
6,633
194,582
194,855¥    (273)¥4,119
54
4,173
2,570
¥1,603¥6,426
655
7,081
6,999
¥    82¥   —(7,342)(7,342)(6,794)¥ (548)¥198,494—
198,494
197,630¥    864

b. Total assets, depreciation, and capital expenditures
Millions of yen
2010

Total assets
Depreciation
Capital expenditures

Construction

Real estate

Other

Eliminations/
Corporate¥210,404
698
232¥31,111219
805¥6,1754434¥ (5,931)
(5)
(200)

Consolidated¥241,759
956
871

Okumura Corporation Annual Report 2010

a. Sales and operating income
Thousands of U.S. dollars
2010

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income

Construction

Real estate

Other$2,020,090
71,291
2,091,381
2,094,312$    (2,931)$44,265586
44,851
27,621$17,230$69,066
7,041
76,10775,227$   880

Eliminations/
Corporate

Consolidated$  — $2,133,421(78,918)—(78,918)
2,133,421(73,026)
2,124,134$ (5,892) $     9,287

b. Total assets, depreciation, and capital expenditures
Thousands of U.S. dollars
2010

Total assets
Depreciation
Capital expenditures

Construction

Real estate

Other$2,261,430
7,506
2,496

$334,385
2,358
8,650

$66,370469
367

Eliminations/
Corporate

Consolidated$(63,744) $2,598,441(56)
10,277(2,150)9,363

a. Sales and operating income
Millions of yen
2009

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income

Construction

Real estate

Other

Eliminations/
Corporate¥214,836
645
215,481
213,634¥ 1,847¥6,074
62
6,136
3,464
¥2,672¥6,063
985
7,048
6,868
¥ 180

¥   —
(1,692)(1,692)(1,392)¥ (300)Consolidated¥226,973—
226,973
222,574¥ 4,399b. Total assets, depreciation and capital expenditures
Millions of yen
2009

Total assets
Depreciation
Capital expenditures

Construction

Real estate

Other

Eliminations/
Corporate¥263,930
766
589¥24,775
136
1,192¥5,96442
88¥ (992)——

Consolidated¥293,677
944
1,869

As discussed in Note 2.k., effective April 1, 2009, the Company applied ASBJ Statement No. 15 “Accounting Standard forConstruction Contracts”. The effect of this change was to increase operating income of Construction by ¥ 11,905 million ($127,959 thousand) for the year ended March 31, 2010.

27

Independent Auditors‘ 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

28
INDEPENDENT AUDITORS' REPORTTo the Board of Directors of Okumura Corporation:

We have audited the accompanying consolidated balance sheets of Okumura Corporation (the “Company”) and consolidated
subsidiaries (together, the “Group”) as of March 31, 2010 and 2009, and the related consolidated statements of operations,changes in equity, and cash flows for the years then ended, 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 financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall 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 consolidated subsidiaries as of March 31, 2010 and 2009, and the consolidated
results of their operations and their cash flows for the years then ended in conformity with accounting principles generally
accepted in Japan.
As discussed in Note 2.k, effective April 1, 2009, the consolidated financial statements have been prepared in accordance with
the new accounting standard for the construction contracts.
Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for theconvenience of readers outside Japan.

June 29, 2010
Member of
Deloitte Touche TohmatsuNon-Consolidated Balance Sheets
Okumura Corporation
As of March 31, 2010 and 2009ASSETS

Okumura Corporation Annual Report 2010

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

Current assets:¥ 27,766¥ 30,626$ 298,430

Time deposits

468

2,007

5,025

Marketable securities

56

122

607

Cash and cash equivalents

Receivables:
Trade notes

5,747

5,394

61,769Trade accounts

58,98956,257634,017

Other

15,092

18,955

162,207

Allowance for doubtful receivables(3,938)(4,299)(42,324)

64,820113,121696,692

634

1,128

6,818

169,634

223,311

1,823,241

Inventories
Prepaid expenses and otherTotal current assets

Property, plant and equipment:
Land

12,215

12,220131,287

Buildings and structures

14,335

14,971

154,073

Machinery and equipment

2,658

3,433

28,565

Furniture and fixtures

2,056

2,175

22,10312

7132

Lease assets

39

5

417

31,31532,811

336,577(13,099)(14,125)(140,792)

18,216

18,686

195,785

42,25041,223454,102

Investments in and advances to subsidiaries and associated companies

5,528

4,131

59,414Long-term accounts receivable-other

2,994

975

32,176

382

1,921

4,101

1,032

1,275

11,103

Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

Investments and other assets:
Investment securities

Long-term loans receivable
Other assets
Allowance for doubtful receivables
Total investments and other assets
Total(3,503)(3,030)(37,651)

48,68346,495523,245¥236,533¥288,492$2,542,271

29

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥ 10,316¥ 9,498$ 110,873

Trade notes

3,375

10,372

36,278Trade accounts

34,93363,466375,464

LIABILITIES AND EQUITYCurrent liabilities:
Short-term bank loans including current portion of long-term debt
Payables:

30

Other
Advances received on construction projects in progress

216

207

2,317

40,73360,740437,800

Income taxes payable

245

239

2,632

Allowance for warranty work on construction projects

370

409

3,974

Allowance for losses on construction contracts

5,702

5,065

61,284Other

13,40812,476

144,118

109,298

162,472

1,174,740

237

264

2,542

Total current liabilities

Long-term liabilities:
Long-term debt
Liability for retirement benefits

5,785

5,639

62,174

Deferred tax liabilities

7,773

6,905

83,548

121

178

1,302

Total long-term liabilities

13,916

12,986

149,566

Total liabilities

123,214

175,458

1,324,306

Other

Commitments and contingent liabilities

Equity:Common stock
19,83919,839213,230

25,32725,327272,219

Retained earnings

70,003

71,153752,400

Unrealized gain on available-for-sale securities

10,482

9,032

112,664(12,332)(12,317)(132,548)

authorized, 480,376,000 shares; issued, 228,326,133shares
Capital surplus

Treasury stock—at cost
28,496,086 shares in 2010 and 28,451,549 shares in 2009
Total equity

113,319

113,034

1,217,965

Total¥236,533¥288,492$2,542,271

Non-Consolidated Statements of Operations
Okumura Corporation
For the years ended March 31, 2010 and 2009

Okumura Corporation Annual Report 2010

Millions of yen

Thousands of
U.S. dollars

2010

2009

2010

¥199,562
183,382
16,180¥220,760
199,652
21,108$2,144,905
1,970,999
173,906

Selling, general and administrative expenses
Operating income

14,7191,461

16,7984,310

158,203
15,703

Other income (expenses):
Interest and dividend income
Interest expenses
Gain on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Gain on sales of investment securities
Impairment losses on investment securities
Reversal of allowance for doubtful accounts
Loss on valuation of stocks of subsidiaries and affiliates
Loss on fire accident
Extra payments for early retirement
Write down of real estate and other
Other—net
Other expenses—net

1,119
(202)
951
(228)
434
(168)
426
(1,947)(1,353)
—
—
250
(718)

1,683
(208)
414
(105)
45
(2,730)———(4,152)(1,700)(1,127)(7,880)12,026(2,169)10,218(2,453)
4,664(1,803)
4,576(20,928)(14,546)——
2,697(7,718)

Income (loss) before income taxes

743(3,570)

7,985

Income taxes:
Current
Deferred
Total income taxes

134
(40)
94

147
83
230

1,440
(436)
1,004

Net income (loss)¥ 649¥ (3,800)$ 6,981

Per share of common stock:
Basic net income (loss)
Cash dividends applicable to the year

Yen

U.S. dollars¥ 3.249.00¥ (19.00)
9.00$ 0.030.10

Net sales
Cost of sales
Gross profit

31Breakdown of Orders (Non-Consolidated)
Okumura Corporation
For the years ended March 31, 2010 and 2009

Construction Orders Awarded

2010

Millions ofyen

32

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

64.2

16,42680,276
184
96,886100 %

67,925
100,721(1,128)¥167,518

Composition
ratio

Millions of
yen

41.4%

¥ 35,130
38,977
8,032
82,13956.1

12,414
120,743
185
133,342

97.5
2.5
100 %

47,544
159,720
8,217
215,4815,279¥220,760

Composition
ratio

Millions of
yen

47.1%

¥103,228
29,942
15,923
149,09352.9

28,525
117,792
146,317100 %

131,753
147,734
15,923¥295,410

60,862
108,114460¥169,436
2010

Millions ofyen¥ 53,010
24,517
5,047
82,574
17,261
94,740
7
112,008
70,271
119,258
5,053
194,582
4,980¥199,562

Year-end Backlog¥ 83,585
32,34011,329127,254
38,758104,252
143,010
122,344
136,591
11,329¥270,264

Composition
ratio

Thousands of
U.S. dollars

42.2%$ 358,638
289,280
4,865
652,78357.8

295,510872,74176
1,168,327

100 %

654,148
1,162,021
4,941$1,821,110

Composition
ratio

Thousands of
U.S. dollars

37.2%$ 569,759
263,511
54,239887,50960.4

185,519
1,018,277
76
1,203,872

97.6
2.4
100 %

755,278
1,281,788
54,3152,091,381
53,524$2,144,905

Composition
ratio

Thousands of
U.S. dollars

50.5%$ 898,377
347,592
121,767
1,367,736

49.5

416,577
1,120,500
1,537,077

100 %

1,314,954
1,468,092
121,767$2,904,813

2010

2009

2010

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

35.8%

¥ 51,499
20,445(1,312)
70,632

27,494
81,2007
108,701

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¥ 33,368
26,914453
60,7352010

2009

Composition
ratio

2010

2009

NetworkOkumura Corporation Annual Report 2010

Head and Branch Offices

Consolidated Subsidiaries

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

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

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

Kansai Branch
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6621-1921

Technical Research Institute387, Ohsuna, Tsukuba 300-2612, Japan
TEL: +81-29-865-1521 FAX: +81-29-865-1522
East Japan Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8111
West Japan Branch
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692
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: +81-22-273-9805
Tokyo Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8116
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

Kobe Office2-2-16, Isobe dori, Chuo-ku,
Kobe 651-0084, Japan
TEL: +81-78-221-9355 FAX: +81-78-251-3374
Hiroshima Branch
1-7-22, Kokutaiji-machi, Naka-ku,
Hiroshima 730-0042, Japan
TEL: +81-82-241-2246 FAX: +81-82-243-1416
Shikoku Branch
1-8-41, Nishiki-machi,
Takamatsu 760-0020, Japan
TEL: +81-87-851-9008 FAX: +81-87-822-9286
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
Rm.702, 7F., No.65, Sec.3, Nanjing E.Rd.,
Zhongshan Dist., Taipei City 104, Taiwan(R.O.C.)TEL: +886-2-2506-1402
FAX: +886-2-2506-1429
Hanoi Rep. Office
No.16, Lane 111, Nguyen Phong Sac Street,
Cau Giay District, Hanoi, Vietnam
TEL: +84-4-3754-9474
FAX: +84-4-3754-9475
Singapore Rep. Office
175A Bencoolen Street, #07-08 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]5-6-1, 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

33

Board of Directors

Investor Information(As of June 29, 2010)(As of March 31, 2010)

Directors and Auditors

Corporate Data

President & Representative Director
Takanori Okumura

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

Representative Director
Takaiku Hirako

34

Directors
Toshio Yamaguchi
Kazuo Takami
Kozo Aoki
Makoto Tsuchiya
Toshio Kobayashi
Seiichi Fujioka
Yuichi Mizuno
Standing Statutory Auditors
Shojiro Sumikura
Yusaku Nishigami
Auditors
Shinji Ito
Nobuhiko Dejima
Yoshio Takahashi
Note: Shinji Ito, Nobuhiko Dejima, and Yoshio Takahashi are outside auditors.

Executive Officers
Senior Managing Officers
Takaiku Hirako*
Toshio Yamaguchi*
Managing Officers
Tadashi Hashimoto
Yoshikuni Ogi
Masamichi Shirahase
Kazuo Takami*
Kozo Aoki*
Makoto Tsuchiya*
Executive Officers
Kozo Tsukamoto
Akiyoshi Hida
Kenichiro Minami
Toshiharu Shimizu
Koji Esumi
Toshio Kobayashi*
Hirokazu Oishi
Seiichi Fujioka*
Hiroomi Iida
Takeshi Kurita
Keiji Yamaguchi
Yuichi Mizuno*
Note: Those officers marked with an asterisk (*) work as directors.

EstablishedFebruary 22, 1907
Capital¥19.8 billion
Group Employees
2,000

Stock Information
Stock Exchange Listings
Tokyo and Osaka
Transfer Agent
The Sumitomo Trust and Banking Co., Ltd.
Major Shareholders
Shareholder

Shares held
(thousands)

Percentage oftotal

Okumura Corporation(Treasury stock)

28,49612.48%

Northern Trust Co. (AVFC) Sub
A/C American Clients

17,132

7.50

State Street Bank and Trust
Company

9,648

4.23

Okumura Employees’
Shareholding Association

6,863

3.01

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

6,265

2.74

Japan Trustee Services Bank,
Ltd. (Trust Account)

6,249

2.74

Resona Bank, Limited.

6,074

2.66

Sumitomo Realty &Development Co., Ltd.

6,050

2.65

BBH/Blackrock Global
Allocation Fund, Inc.

6,032

2.64

Sumitomo Mitsui Banking
Corporation

5,568

2.44

Nippon Life Insurance
Company

4,593

2.01

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

Annual Report 2010

Okumura Corporation

Printed in Japan