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

Okumura Corporation
Annual Report 2013

Printed in JapanBoard of Directors

Investor Information(As of June 27, 2013)(As of March 31, 2013)
Okumura Corporation Annual Report 2013

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

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

years has been made possible through the unflagging supportof our customers.
Okumura’s main business activities include construction projects for houses, public facilities, medical facilities, andoffice buildings. In the area of civil engineering are projects
such as railways, roads, power station facilities, sewage andwater works, and others. The Company has developed technology at the highest level, with achievements including theseismic isolation system used to construct Japan’s first earthquake-absorbing building. In the area of environment-related
technology, Okumura has developed techniques for 100%

Directors
Toshio Yamaguchi
Kozo Aoki
Makoto Tsuchiya
Kazuo Takami
Seiichi Fujioka
Toshio Kobayashi
Yuichi Mizuno
Kiyoshi Saito

EstablishedFebruary 22, 1907

Standing Statutory Auditors
Yuji Takemura
Koichi Yamauchi

Stock Information

Auditors
Yoshio Takahashi
Yoshihiro Ban
Kazuo Tsuji

recycling of demolished concrete, and natural greening of
concrete surfaces on buildings.
Okumura understands what an important mission it isto provide a better environment for the future. Accordingly,

Notes:1. Kiyoshi Saito is outside director.

Capital¥19.8 billion

Stock Exchange Listings
Tokyo and Osaka
Transfer Agent
Sumitomo Mitsui Trust Bank, Limited
Major Shareholders
Shareholder

Shares held
(thousands)

Percentage oftotal

Okumura Corporation(Treasury stock)28,60912.53%

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

18,9208.29

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

7,736

3.39

Okumura Employees’
Shareholding Association

7,555

3.31

BBH/Blackrock Global
Allocation Fund, Inc.

6,712

2.94

Resona Bank, Limited.

6,074

2.66

Sumitomo Realty &Development Co., Ltd.

6,050

2.65

Japan Trustee Services Bank,
Ltd. (Trust Account)

5,661

2.48

Sumitomo Mitsui Banking
Corporation

5,568

2.44

Nippon Life Insurance Company

4,593

2.01

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

3,516

1.54

2. Yoshio Takahashi, Yoshihiro Ban and Kazuo Tsuji are outside auditors.

the Company is dedicated to contributing to meaningfulsocial infrastructure investment and to always being a corporation regarded highly by society. It will achieve this by con-

Executive Officers

tinuing to develop as an all-around construction company

Senior Managing Officers
Takaiku Hirako*
Toshio Yamaguchi*
Masamichi Shirahase
Kozo Aoki*
Makoto Tsuchiya*

based on steadfast business management.

Contents
1 Financial Highlights
2 To Our Shareholders
4 Review of Operations
6 Topics
8 Consolidated Balance Sheet
10 Consolidated Statement of Operations
11 Consolidated Statement of Comprehensive Income
12 Consolidated Statement of Changes in Equity
13 Consolidated Statement of Cash Flows
14 Notes to the Consolidated Financial Statements
32 Independent Auditor’s Report
33 Breakdown of Orders (Non-Consolidated)
34 Network
35 Board of Directors / Investor Information

Managing Officers
Kazuo Takami*
Seiichi Fujioka*
Hiroomi Iida
Keiji Yamaguchi
Hirokazu Oishi
Executive Officers
Toshio Kobayashi*
Takeshi Kurita
Yuichi Mizuno*
Yutaka Maruyama
Takanori Hayashi
Noriyuki MachidaKenji Kotera
Note: Those officers marked with an asterisk (*) work as directors.

35

Group Employees
1,855

Financial Highlights
Okumura Corporation Annual Report 2013

For the years ended March 31

2011

2013

2012

Consolidated:2013
Thousands of
U.S. dollars

Millions of yen¥192,617¥179,285¥196,554$2,091,225

Operating income (loss)

3,380(3,940)1,339

14,251

Net income (loss)

3,605(2,958)2,684

28,554

Total assets

229,771

216,856

234,034

2,489,986

Total equity

114,387

111,714

121,924

1,297,197

Net sales

Per Share:

Yen

Basic net income (loss)
Cash dividends applicable to the year

U.S. dollars¥18.04¥(14.80)¥13.43

$0.14

9.00

9.00

9.00

0.10

Note:	The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yenat the approximate exchange rate in Tokyo on March 29, 2013, of ¥93.99=U.S.$1.

Net Sales

Net Income(Millions of Yen)

200,000

Total Equity(Millions of Yen)

4,000
3,000

150,000(Millions of Yen)

150,000

125,000

2,000

100,000

1,000
100,000

75,000050,000-1,00050,00025,000-2,000-3,000

0

2011

2012

2013

0

2011

2012

2013

2011

2012

2013

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

1

To Our Shareholders

2

We would like to thank our shareholders for their continuing support and encouragement, and wish each ofthem the greatest success in their endeavors.
A general overview of business performance for the period to March 2013 (April 1, 2012 to March 31,2013) is provided in the following sections.

Fiscal 2013 Results
During the period under review, the Japanese economy, despite being affected by the global economic
slowdown and other factors, began to show signs of recovery toward the end of the year. In the constructionindustry, while investments were generally on a recovery trajectory due to the full-scale implementation ofrestoration and reconstruction projects following the Great East Japan Earthquake, the operating environment remained harsh as revenues were adversely affected by the tight supply of skilled construction workers,
among other factors.
In these circumstances, the Company’s consolidated net sales rose 9.6% year on year to ¥196,554
million and consolidated gross profit increased 21.3% year on year to ¥14,840 million. In terms of operating
income, thanks to the increase in consolidated gross profit and the decrease in selling, general and administrative expenses, the Company was able to report a profit of ¥1,339 million, as compared to the loss in theprevious period, and a net income of ¥2,684 million, as a result of reporting a reversal of allowance for doubtful accounts and other factors.
Although the business climate surrounding the Company is harsh, the Company decided to pay a
dividend of ¥9.00 per share for the period ended March 31, 2013 based on its basic policy regarding profit
sharing.

Looking Ahead and Key Strategies
The Japanese economy is expected to head toward moderate recovery propped up by improvements inoverseas economies and the effects of the government’s economic measures. In the construction industry,
public investments are expected to continue on an upward trend, while robust capital investments are also
predicted in the private sector. However, given the industry’s oversupply structure, and with no solution insight for the shortage of skilled construction workers, the overall situation is expected to continue to remain
unpredictable.

Okumura Corporation Annual Report 20133

Under these circumstances, the Okumura Group formulated a new Three-Year Medium-Term Business Plan which starts from fiscal 2013. Building on the results, such as improved management efficiency,from the previous Five-Year Medium-Term Business Plan that had started in fiscal 2008, the new Plan aims atsecuring stable profits through reinforcement of the Company’s customer-handling capabilities, technological strengths, and price-competitiveness, and strengthening the management base that ensures sustainablegrowth.
Specifically, in civil engineering operations, the Company will thoroughly enforce selective receipt oforders based on profitability and technological competitive advantages. In addition, the Company will implement measures including organized and enhanced approaches in dealing with comprehensive evaluation
biddings and private sector projects, technological development that will enhance plan proposal capabilities,
and further cost-cutting activities.
In building operations, the Company will implement measures including promotion of proposaloriented marketing to potential needs of customers, refinement of proprietary technologies such as seismic
isolation, super high-rise and environmental technologies, avoidance of cutthroat price competition throughbusiness cooperation from the upstream stage, focus on maintaining and utilizing construction stocks that are
expected to increase in demand in the future, and improvement of quality through reinforcement of designand construction control systems.
In real estate operations, the Company intends to aggressively acquire properties for rent, which are
expected to become a long-term and stable source of income.
For the future, Okumura will apply all of its resources with the aim of responding quickly and flexibly to thechanging operating environment, and thereby secure stable profits in accordance with its corporate philosophy, which has endured through the many years since the Company’s founding. 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 of its shareholders.
June 2013

Takanori Okumura
President and Representative Director

Review of Operations
Major Projects Completed
BUILDINGS

4
Lions Ichijo Residence Shonan C-X

Senri Newtown PlazaWork period: April 2011 to January 2013
Structure: RC
Total floor space: 31,835 m2

Work period: April 2010 to June 2012
Structure: RC and SRC (seismic isolation structure)
Total floor space: 10,721.88 m2

Kansai No. 3 Plant of SANKO Co., Ltd.

Tokyo Metropolitan Theater

Work period: February 2012 to January 2013
Structure: Steel
Total floor space: 41,000 m2

Work period: February 2011 to June 2012
Renovation involving seismic reinforcement
Structure: SRC and Steel
Total floor space: 51,308.6 m2

CIVIL ENGINEERINGWork in Taoyuan International
Airport MRT System
Construction Project(Contract CU02A)
Work period: May 2007 to
October 2012
Construction length: 5,520 m
Tunnel length: 7,194 m(up and down tracks)
Shield machines: 8 units

Tajiri District Box Culvert
Construction

Maizuru-Wakasa Expressway
Tagami Tunnel WorkWork period: February 2010 toMarch 2013
Box culvert length: 100 m(inside width: 22.5 m, height: 7.7 m)

Work period: November 2009 to
December 2012
Construction length: 1,932 m
Tunnel length: 1,269 m
2 bridges substructure(4 abutments, 2 piers)

Funagawa Dam Construction in
Funagawa Comprehensive
Development ProjectWork period: December 2006 to
September 2012
Concrete gravity dam
Dam height: 49.8 m
Dam crest length: 160.5 m
Dam crest width: 4 m
Volume of dam: 70,672 m3
Total reservoir capacity: 600,000 m3

Okumura Corporation Annual Report 2013

Orders Received
BUILDINGS

5
Reconstruction of Suginami Incineration Plant
Work period: September 2012 to September 2017
Structure: Steel, RC and SRC
Total floor space: 30,501 m2
Stoker-type incinerator: 2 units, 600 t/day

Yonago Medical Center

Awa City’s New Government Building andCommunity Disaster-Prevention Facilities

Nitori Mall Sagamihara

Work period: March 2013 to November 2014
Structure: RC and SRC (seismic isolation structure)
Total floor space: 13,829 m2

Work period: June 2012 to December 2014
Structure: SRC
Total floor space: 20,198.14 m2

Work period: October 2012 to July 2013
Structure: Steel
Total floor space: 52,162.35 m2

CIVIL ENGINEERING

Decontamination andOther Work at Katsurao Village
Work period: March 2013 toMarch 2014
Radioactive decontamination work,
creation of temporary storage space,etc.

Commissioned Work for Disaster
Waste Crushing/Sorting, etc. in
Yamada Region (Part 2)

Construction of Water Purifying
Facilities at Sueyama Water
Purification Plant

Work period: March 2013 toMarch 2014
Crushing, sorting and removal of disaster waste

Work period: December 2012 toMarch 2014
Construction of sedimentation basin,
rapid filter basin, water pump house,
etc.

Takata West District Land
Development for Reconstruction
Work period: September 2012 toMarch 2015
Development area: 93,120 m2
Cut: 958,640 m3
Embankment: 53,400 m3
Removal of surplus soil: 833,120 m3

Topics

Column profile
Flow ofload

Plane A

ColumnA
B
C

Temporary
supportjack jig

Plane B

Cutting/
removal ofcolumnPlane C❶ Fluidity check

6

ColumnAdditionallyreinforced
concretecolumn❶ Filling in a complicated cross-section❷ Column profile and sectional(mounting area of emergency door inan evacuation connecting tunnel)

diagrams to install seismic isolation
device❸ Inside the seminar hall

❶ Development and Practical Application of Medium-Fluidity Concrete(Fiber Reinforced Type)To improve quality and durability of tunnel-lining concrete, wedeveloped a medium-fluidity concrete (fiber reinforced type),
and applied it to ongoing tunnel constructions after full-scalelaboratory experimental constructions.
The medium-fluidity concrete achieves a higher degreeof fluidity while maintaining the same material separation
resistance as normal concrete, allowing easy and secure fillingeven in areas where filling concrete is difficult, such as areas where
reinforcement bars have already been put in place and top areas,
with small vibrations induced by formwork vibrators. Occurrenceof cracks is decreased as well by mixing short fibers into theconcrete, and we expect that this new technology will improve thequality and durability of tunnel-lining concrete, as well as saving
construction labor.
❷ Upgrading Seismic Isolation Retrofitting Construction Method

We have abundant experience in the seismic isolation retrofitting
construction method (a method which allows smooth seismic
isolation refurbishment while the target building is in use). We
have expanded its scope of applications and improved our costcompetitiveness as well.
In this construction method, additionally reinforced concrete
structural sections are employed on other parts of existing columns❷ Installation status ofseismic isolation device❸ Panel discussionin order to temporarily support the load of upper floors whencutting parts of the existing columns on the floor where the seismic
isolation device is installed. This method completely eliminates theuse of reinforcements on lower floors, which used to be requiredfor certain buildings according to their conditions. Thus, as theconstruction area is now limited to the floor where the seismic
isolation device is to be installed, this method can not only beapplied to a wider range of buildings in various conditions but canalso contribute to shorter construction periods and lower costs.
❸ Hosting of a Technical Seminar

On December 7, 2012, Okumura hosted the 24th TechnicalSeminar at the Tokyo International Forum in Tokyo’s Chiyoda Ward.
The seminar was attended by approximately 200 participants fromvarious fields, including clients of Okumura.
Okumura began hosting the seminar in 1988 as part of thecollaboration among the industrial, governmental and academic
sectors related to the construction industry. This year’s theme
was “Disaster-Resistant National Land Planning and System
Advancement: the Past and the Future.” Professor Hitoshi Iedaof the Graduate School of the University of Tokyo delivered the
keynote speech. In addition, a panel discussion was held on topics
including the direction of advancement of future technologies
and societies from the viewpoint of “social systems” such as
people, institutions, and organizations based on our experiencesin the Great East Japan Earthquake.

Okumura Corporation Annual Report 2013

❺ External view (connecting corridor)

7❺ Permanent collection

exhibition room

❻ Removal of fish nets and broken pieces of boats❹ Recipients of the Okumura Environmental Construction Technology
Foundation Grant for the Fiscal Year Ended March 31, 2013 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
reduce the environmental load.
The steering committee – comprising experts such asuniversity professors – met on July 10, 2012 to select the recipientsand determine the amount of the grant awarded for the fiscal year
ended March 31, 2013. The foundation has ensured that all thosechosen for the fiscal year have received the grant.
Research themes of the recipients are as follows:• Development of concrete containers for storing radiationcontaminated earth and sand and evaluation of their durability• Design of sidewalk cooling/heating systems using heat fromfire-protection water tanks and development of their control
methods• Evaluation of structural performance of traditional woodenbuildings repaired to prolong life
• Investigation for adaptive management of the rare species
Cicindela lewisi in response to shoreline mitigation• Evaluation of the impact of dry dams on the environment andbasic investigation of Nishinotani Dam regarding evaluation ofenvironment functions❻ Sorting of recovered objects❺ Mie Prefecture Kumano Kodo Center was Awarded
the “Public Building Award (Cultural Facility Division)” by
the Minister of Land, Infrastructure, Transport and Tourism

In the 13th “Public Building Award” hosted by Public Buildings
Association, Mie Prefecture Kumano Kodo Center, completed
in 2006, won an Award in the Cultural Facility Division and
was awarded by the Minister of Land, Infrastructure, Transport
and Tourism. The facilities of this Center were constructed byassembling 135-mm square lumber without using any adhesives.
Our utilization of lumber resources and attempts to contribute to
rejuvenation of forest resources were evaluated highly.
❻ Dispatching Freshman Employees to Assist Areas Stricken by
the Great East Japan Earthquake

Forty nine employees newly-recruited this fiscal year were sent to
Yamada-cho, Iwate Prefecture, for three days from October 24 to
26 to engage in support activities, including cleaning of the beach,as a part of their training. The Company has been involved withthese support activities since 2011. While hoping that affectedareas can be restored quickly, we strive to cultivate humanresources who understand the significance of the social roles andsocial contribution of the construction industry so that they canmake use of such knowledge for their future work and social lives.
The Company will continue to make a concerted effort to assist in
the recovery and restoration of the areas affected by the earthquake.

Consolidated Balance Sheet
Okumura Corporation and Consolidated Subsidiaries
March 31, 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥ 28,344¥ 24,521$ 301,562

Time deposits (Notes 12 and 14)

105

1,104

1,115

Marketable securities (Notes 3 and 12)

—

999

—

Trade notes (Note 12)

5,263

2,592

56,001

Trade accounts (Notes 12 and 13)

92,16582,525980,588

815

3,377

8,670

6,463

6,264

68,759ASSETS

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

Unconsolidated subsidiaries and associated companies (Note 12)
Other
Allowance for doubtful receivables
Inventories (Note 4)(4,393)(4,461)(46,744)

12,45827,516

132,552

Deferred tax assets (Note 9)

44

58

464

Prepaid expenses and other

432

684

4,598

Total current assets

141,696

145,179

1,507,565

Property, plant and equipment (Notes 5 and 6):
Land (Note 14)

26,362

19,767

280,481

Buildings and structures

19,38318,093

206,219

Machinery and equipment

2,831

2,693

30,121

Furniture and fixtures

2,089

2,127

22,230

Lease assets (Note 11)

126

58

1,336

Construction in progress

210

82

2,234

51,00142,820542,621(15,161)(14,586)(161,307)

35,84028,234

381,31455,39642,058589,385

Investments in and advances to unconsolidated subsidiaries and associated companies (Notes 12 and 14)

259

1,104

2,748

Long-term loans receivable (Note 12)

160

246

1,701

Total
Accumulated depreciation
Net property, plant and equipment

Investments and other assets:
Investment securities (Notes 3, 6, 12 and 14)

Other assets

3,591

4,128

38,207

Allowance for doubtful receivables(2,908)(4,093)(30,934)

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

56,49843,443

601,107¥234,034¥216,856$2,489,986

Okumura Corporation Annual Report 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

Short-term bank loans including current portion of long-term debt (Notes 6, 11 and 12) ¥ 16,448¥ 11,176$ 174,997

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

5,415

7,130

57,612

Trade accounts (Note 12)

42,07439,267

447,643

182

207

1,940

9,145

17,83097,302Other
Advances received on construction projects in progress
Income taxes payable

227

185

2,411

Allowance for warranty work on construction projects

510

446

5,422

Allowance for losses on construction contracts

1,856

4,360

19,749Other (Note 14)

19,567

14,484

208,177

95,42495,085

1,015,253

4,202

194

44,706

Total current liabilities
Long-term liabilities:
Long-term debt (Notes 6, 11, 12 and 13)
Liability for retirement benefits (Note 7)

2,023

3,289

21,531

Deferred tax liabilities (Note 9)

10,334

6,151

109,945

Negative goodwill

—

284

—

Other

127

139

1,354

Total long-term liabilities

16,686

10,057

177,536

Total liabilities

112,110

105,142

1,192,789

Commitments and contingent liabilities (Note 14)
Equity (Notes 8, 15 and 16):
Common stock
19,83919,839211,074

Capital surplus

25,32725,327

269,457

Retained earnings

70,136

69,250746,213(12,366)(12,358)(131,562)

18,9889,656

202,015authorized, 480,376,000 shares; issued, 228,326,133 shares

Treasury stock—at cost
28,609,201 shares in 2013 and 28,579,984 shares in 2012
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Total

18,9889,656

202,015

Total equity

121,924

111,714

1,297,197

Total¥234,034¥216,856$2,489,986

9Consolidated Statement of Operations
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥196,554
181,714
14,840¥179,285
167,053
12,232$2,091,225
1,933,333
157,892

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

13,501
1,339

16,172(3,940)143,641
14,251Other income (expenses):
Interest and dividend income
Interest expense
Amortization of negative goodwill
Reversal of allowance for doubtful accounts
Loss on construction contracts
Other—net
Other income —net

1,031
(180)
284
522
(407)
247
1,497

952
(177)
284
—
—
(294)
765

10,976(1,914)3,017
5,550(4,329)2,624
15,924

Income (loss) before income taxes and minority interests

2,836(3,175)30,175

164
(12)
152

138
(355)
(217)

1,742
(121)
1,621

2,684
2,684

(2,958)¥ (2,958)

Net sales
Cost of sales
Gross profit

10

Income taxes (Note 9):
Current
Deferred
Total income taxes
Net income (loss) before minority interests
Net income (loss)

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

¥

¥

13.43
9.00

$

28,55428,554

Yen

U.S. dollars(Note 1)¥ (14.80)
9.00$ 0.140.10

Consolidated Statement of Comprehensive Income
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 2013

Net income (loss) before minority interests
Other comprehensive income (Note 15):
Unrealized gain on available-for-sale securities
Total other comprehensive income
Comprehensive income (loss)
Total comprehensive income (loss) attributable to:
Owners of the parent
Minority interests
See notes to consolidated financial statements.

Okumura Corporation Annual Report 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥ 2,684¥(2,958)$ 28,554

9,332
9,332
¥12,016

2,093
2,093
¥ (865)99,28399,283$127,837¥12,016—¥ (865)—$127,837—11

Consolidated Statement of Changes in Equity
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 2013

Thousands

Millions of yen
Accumulated othercomprehensive income

12

BALANCE, APRIL 1, 2011
Net loss
Cash dividends, ¥9 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2012
Net income
Cash dividends, ¥9 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2013

Outstanding
number ofshares ofcommonstock

Commonstock

CapitalsurplusRetainedearnings

199,777
—
—
(31)
0
—
199,746
—
—
(29)
0
—
199,717¥19,839—————
19,839—————¥19,839¥25,327———(0)—
25,327———(0)—¥25,327¥74,006(2,958)(1,798)———69,2502,684(1,798)———¥70,136

Treasurystock

Unrealized
gain onavailable
for-salesecurities

Total
equity¥(12,348)
—
—
(10)
0
—
(12,358)
—
—
(9)
1
—
¥(12,366)¥ 7,563
—
—
—
—
2,093
9,656
—
—
—
—
9,332
¥18,988¥114,387(2,958)(1,798)
(10)
0
2,093
111,7142,684(1,798)(9)
1
9,332¥121,924

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

BALANCE, MARCH 31, 2012
Net income
Cash dividends, $0.10 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2013
See notes to consolidated financial statements.

Commonstock

CapitalsurplusRetainedearnings

Treasurystock

Unrealized
gain onavailable
for-salesecurities$211,074—————$211,074$269,462
—
—
—
(5)
—
$269,457$736,786
28,554(19,127)———$746,213$(131,477)
—
—
(100)
15
—
$(131,562)$102,732————
99,283$202,015

Total
equity$1,188,577
28,554(19,127)(100)
1099,283$1,297,197

Consolidated Statement of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 2013

Okumura Corporation Annual Report 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥ 2,836¥ (3,175)$ 30,175

(218)
810
(284)
(522)
407

(132)
777
(284)
2,910
—

(2,315)8,620(3,017)(5,550)4,329(9,764)
12,7442,456
880(8,685)(1,265)
3,378
(63)
2,773

(5,860)
6,053
6,464
1,541
(8,098)(1,395)
485
2,461
(714)

(103,886)
135,585
26,1309,357(92,400)(13,461)
35,937(671)
29,504

Cash flows from investing activities:
Net decrease (increase) 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 used in investing activities

1,000(1,015)2,006(8,503)
5
(39)
126
33
(6,387)(872)(11,662)8,205(3,200)
8
(311)
374
(36)
(7,494)

10,639(10,804)
21,343(90,462)
57
(411)
1,335
352
(67,951)

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

5,241
4,000
(26)
(9)
1
(1,805)
(23)
7,379

(127)
—
(30)
(10)
0
(1,798)(12)(1,977)55,75842,558
(273)
(100)
10
(19,202)(244)
78,50758
3,823
24,521¥ 28,344(15)(10,200)
34,721¥ 24,521

618
40,678260,884$301,562

Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of negative goodwill
Provision for (reversal of) doubtful receivables
Loss on construction contracts
Changes in assets and liabilities:
Increase in trade notes and accounts receivable
Decrease in accumulated costs of construction projects in progress
Decrease in other inventories
Increase in trade notes and accounts payable
Decrease in advances received on construction projects in progress
Decrease 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.

13

Notes to the Consolidated Financial Statements
Okumura Corporation and Consolidated Subsidiaries
Year ended March 31, 201314

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 accordance withaccounting principles generally accepted in Japan (“Japanese
GAAP”), which are different in certain respects as to theapplication 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 2012 consolidated financial statements to conform to the classifications used in 2013.
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 ¥93.99 to$1, the rate of exchange at March 31, 2013. Such translations should not be construed as representations that theJapanese yen amounts could be converted into U.S. dollars atthat or any other rate.

Cash equivalents include time deposits and certificate ofdeposits, all of which mature or become due within 3months of the date of acquisition.

2. Summary of Significant Accounting Policies
a. Consolidation — The consolidated financial statements
as of March 31, 2013 and 2012 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 8 (8 in 2012) unconsolidated subsidiaries
and 1 (1 in 2012) associated company are stated at cost. If
the equity method of accounting had been applied to theinvestments in these companies, the effect on the accompanying consolidated financial statements would not bematerial.
The differences between the cost of investments andthe fair value of net assets of consolidated subsidiaries andassociated companies at the date of acquisition are amortized on a 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 theGroup is also eliminated.

e. Property, Plant and Equipment — Property, plant andequipment are stated at cost. Depreciation, except for leaseassets, is computed by the declining-balance method basedon the estimated useful lives of the assets, while the straightline method is applied to buildings acquired after April 1,
1998, and lease assets. The range of useful lives is principallyfrom 3 to 60 years for buildings and structures, from 4 to 17
years for machinery and equipment, and from 2 to 20 years
for furniture and fixtures. Lease assets under finance leasearrangements are depreciated using the straight-line method
over the terms of the respective leases without any salvage
value.
Pursuant to the amendments to the Corporate Income
Tax Act, the Group changed the depreciation method forproperty, plant and equipment acquired on or after April 1,
2012, to the depreciation method provided by the amended
Corporate Income Tax Act. The effect of this change on net
income is immaterial.

b. Cash Equivalents — Cash equivalents are short-term
investments that are readily convertible into cash and that are
exposed to insignificant risk of changes in value.

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:(1) held-to-maturity debt securities, for which there is the
positive intent and ability to hold to maturity are reported atamortized cost and(2) available-for-sale securities, which are not classified as theheld-to-maturity, are reported at fair value, with unrealized
gains and losses, net of applicable taxes, reported in a separate component of equity.
Nonmarketable available-for-sale securities are stated atcost determined by the moving-average method. For otherthan-temporary declines in fair value, investment securities
are reduced to net realizable value by a charge to income.

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 is recognized if the carrying amount of an asset or asset groupexceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss
would be measured as the amount by which the carrying
amount of the asset exceeds its recoverable amount, which is
the higher of the discounted cash flows from the continued

Okumura Corporation Annual Report 2013use and eventual disposition of the asset or the net selling
price at disposition.
g. Allowance for Doubtful Receivables — The allowancefor doubtful receivables is stated in amounts considered to beappropriate based on the Group’s past credit loss experienceand an evaluation of estimated losses in the receivables outstanding.
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 loss experience.
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 employees’ retirement benefits 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 priorservice costs have been amortized on straight-line over theperiod of 10 years which is within the employees’ averageremaining service years.
k. Asset Retirement Obligations — In March 2008, the
Accounting Standards Board of Japan (the “ASBJ”) published
ASBJ Statement No. 18, “Accounting Standard 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 from the acquisition,
construction, development and normal operation of a tangible fixed asset and is associated with the retirement of suchtangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted cash flows required forthe future asset retirement and is recorded in the period inwhich the obligation is incurred if a reasonable estimate canbe made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement
obligation is incurred, the liability should be recognized whena 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 byincreasing the carrying amount of the related fixed asset by
the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over theremaining useful life of the asset. Over time, the liability is
accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original estimateof undiscounted cash flows are reflected as an adjustment tothe carrying amount of the liability and the capitalized
amount of the related asset retirement cost.
l. Construction Contracts — In December 2007, the ASBJ
issued ASBJ Statement No. 15, “Accounting Standard forConstruction Contracts” and ASBJ Guidance No. 18,“Guidance on Accounting Standard for Construction
Contracts.” Under this accounting standard, construction revenue and construction costs should be recognized by thepercentage-of-completion method, if the outcome of a construction contract can be estimated reliably. When total
construction revenue, total construction costs and the stageof completion of the contract at the balance sheet date canbe reliably measured, the outcome of a construction contract
is deemed to be estimated reliably. If the outcome of a construction contract cannot be reliably estimated, thecompleted-contract method should be applied. When it isprobable that the total construction costs will exceed total
construction revenue, an estimated loss on the contract
should be immediately recognized by providing for a loss on
construction contracts.
The revenues recognized by the percentage-of-completion method for the years ended March 31, 2013 and 2012,were ¥161,602 million ($1,719,350 thousand) and ¥139,853
million, respectively.
m. Income Taxes — The provision for income taxes is computed based on the pretax income included in the
consolidated statements of operations. The asset and liability
approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary
differences between the carrying amounts and the tax basesof assets and liabilities. Deferred taxes are measured byapplying currently enacted tax laws to the temporary differences.
n. Derivatives and Hedging Activities — The Group uses
derivative financial instruments to manage its exposures tofluctuations in foreign exchange and interest rates. Foreignexchange forward contracts and currency and interest rate
swaps are utilized by the Group to reduce foreign currency
exchange and interest rate risks. The Group does not enter
into derivatives for trading or speculative purposes.
Trade receivables denominated in foreign currencies, forwhich foreign currency forward contracts are used to hedge
the foreign currency fluctuations, are translated at the contracted rate, if the forward contracts qualify for hedge
accounting.
Currency and interest rate swaps, which qualify forhedge accounting and meet specific matching criteria, are15

not remeasured at market value, but the differential paid or
received under the swap agreements is recognized andincluded in interest expense or income, and hedge items
denominated in a foreign currency are translated at the contracted rates.

16

o. Per Share Information — Basic net income (loss) per
share is computed by dividing net income available to common shareholders by the weighted-average number ofcommon shares outstanding for the period, retroactively
adjusted for stock 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 statement of operations are dividends
applicable to the respective years including dividends to be
paid after the end of the year.
p. Accounting Changes and Error Corrections — In
December 2009, the ASBJ issued ASBJ Statement No. 24,“Accounting Standard for Accounting Changes and Error
Corrections” and ASBJ Guidance No. 24, “Guidance on
Accounting Standard for Accounting Changes and Error
Corrections.” Accounting treatments under this standard andguidance are as follows:(1) Changes in Accounting Policies:
When a new accounting policy is applied following revisionof an accounting standard, the new policy is applied retrospectively unless the revised accounting standards include
specific transitional provisions, in which case the entity shallcomply 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.
q. New Accounting Pronouncements
Accounting Standard for Retirement Benefits — On May
17, 2012, the ASBJ issued ASBJ Statement No. 26,“Accounting Standard for Retirement Benefits” and ASBJ
Guidance No. 25, “Guidance on Accounting Standard for
Retirement Benefits,” which replaced the AccountingStandard for Retirement Benefits that had been issued by theBusiness Accounting Council in 1998 with effective date ofApril 1, 2000, and the other related practical guidance, andfollowed by partial amendments from time to time through2009.

Major changes are as follows:(a) Treatment in the consolidated balance sheet
Under the current requirements, actuarial gains and losses
and past service costs that are yet to be recognized in profit
or loss are not recognized in the balance sheet, and the difference between retirement benefit obligations and plan
assets (hereinafter, “deficit or surplus”), adjusted by suchunrecognized amounts, are recognized as a liability or asset.
Under the revised accounting standard, actuarial gains
and losses and past service costs that are yet to be recognized in profit or loss shall be recognized within equity(accumulated other comprehensive income), after adjustingfor tax effects, and any resulting deficit or surplus shall berecognized as a liability (liability for retirement benefits) or
asset (asset for retirement benefits).
(b) Treatment in the consolidated statement of operations
and the consolidated statement of comprehensive income
The revised accounting standard does not change how
to recognize actuarial gains and losses and past service costs
in profit or loss. Those amounts would be recognized in profit
or loss over a certain period no longer than the expected
average remaining working lives of the employees. However,actuarial gains and losses and past service costs that arose in
the current period and have not yet been recognized in profit
or loss shall be included in other comprehensive income andactuarial gains and losses and past service costs that wererecognized in other comprehensive income in prior periods
and then recognized in profit or loss in the current period
shall be treated as reclassification adjustments.
(c) Amendments relating to the method of attributing expected benefit to periods and relating to the discount rate andexpected future salary increases
The revised accounting standard also made certain
amendments relating to the method of attributing expected
benefit to periods and relating to the discount rate andexpected future salary increases.
This accounting standard and the guidance for (a) and(b) above are effective for the end of annual periods beginning on or after April 1, 2013, and for (c) above are effective
for the beginning of annual periods beginning on or after
April 1, 2014, or for the beginning of annual periods beginning on or after April 1, 2015, subject to certain disclosure in
March 2015, both with earlier application being permitted
from the beginning of annual periods beginning on or after
April 1, 2013. However, no retrospective application of thisaccounting standard to consolidated financial statements inprior periods is required.
The Group expects to apply the revised accounting standard for (a) and (b) above from the end of the annual period
beginning on April 1, 2013, and for (c) above from the
beginning of the annual period beginning on April 1, 2014,
and is in the process of measuring the effects of applying therevised accounting standard in future applicable periods.

Okumura Corporation Annual Report 2013

3. Marketable and Investment Securities
Marketable and investment securities as of March 31, 2013 and 2012, consisted of the following:
Millions of yen

Thousands of
U.S. dollars

2012

2013

2013

Current:
Short-term bonds payable

¥—

¥

Non-current:
Marketable equity securities
Government and corporate bonds
Trust fund investments and otherTotal¥53,186
116
2,094¥55,396¥39,699
113
2,246¥42,058

999

$

—

$565,876
1,232
22,277$589,385

The costs and aggregate fair values of marketable and investment securities at March 31, 2013 and 2012, were as follows:
Millions of yen

March 31, 2013

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

Cost

Unrealized
Gains

Unrealized
LossesFair
Value¥25,595
1,000¥27,803
—

¥212
189

¥53,186
811

116

5

—

121

¥25,596
1,000¥14,653
—

¥550
241

¥39,699
759

1,112

0

0

1,112

Cost

Unrealized
Gains

Unrealized
LossesFair
Value$272,320
10,639$295,804—$2,2482,015$565,876
8,624

1,232

52

—

1,284

March 31, 2012

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

Thousands of U.S. dollars

March 31, 2013

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

17

The information for available-for-sale securities which were sold during the years ended March 31, 2013 and 2012, is asfollows:
Millions of yen

March 31, 2013
Available-for-sale:
Equity securities

Proceeds

Realized
Gains

Realized
Losses¥2¥2¥—

Proceeds

Realized
Gains

Realized
Losses¥3¥0¥—Proceeds

Realized
Gains

Realized
Losses

$21

$21

$—

Millions of yen

18

March 31, 2012
Available-for-sale:
Equity securities

Thousands of U.S. dollars

March 31, 2013
Available-for-sale:
Equity securities

The impairment losses on available-for-sale equity securities for the years ended March 31, 2013 and 2012, were ¥220 million($2,338 thousand) and ¥112 million, respectively.
4. Inventories
Inventories at March 31, 2013 and 2012, 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

2013

2012

2013

¥ 8,485
679
2,785
509
¥12,458¥21,228
2,058
3,087
1,143
¥27,516$ 90,272
7,221
29,637
5,422$132,552

Okumura Corporation Annual Report 2013

5. Investment Property
In November 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.”
The Group owns certain 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.
The net of rental income and operating expenses for those rental properties was ¥2,627 million ($27,954 thousand) and¥2,277 million for the fiscal years ended March 31, 2013 and 2012, respectively.
The carrying amounts, changes in such balances and market prices of such properties were as follows:
Millions of yen
Fair Value

Carrying AmountRental properties
Rental properties in part
Total

April 1,
2012

Increase/
Decrease

March 31,2013

March 31,2013

¥19,195
1,431¥20,626¥7,808(238)¥7,570¥27,003
1,193¥28,196¥42,095
7,738¥49,833
Millions of yen
Fair Value

Carrying AmountRental properties
Rental properties in part
Total

April 1,
2011

Increase/
Decrease

March 31,2012

March 31,2012

¥16,587
1,482¥18,069¥2,608(51)¥2,557¥19,195
1,431¥20,626¥36,4369,366¥45,802
Thousands of U.S. dollars
Fair Value

Carrying AmountRental properties
Rental properties in part
Total

April 1,
2012

Increase/
Decrease

March 31,2013

March 31,2013

$204,222
15,226$219,448$83,078(2,532)$80,546$287,300(12,694)$299,994$447,868
82,322$530,190

Notes:(1) Carrying amount recognized in the consolidated balance sheets is net of accumulated depreciation and accumulated
impairment losses, if any.
(2) Of the changes in balances and market prices of rental properties for the year ended March 31, 2013, an increase wasrecorded mainly in acquisition of real estate at ¥8,120 million ($86,394 thousand) and decrease in depreciation at ¥269
million ($2,857 thousand).
(3) Fair value of properties as of March 31, 2012, is measured by the Group in accordance with its Real-Estate Appraisal
Standard (including those measured using indicators). Fair value of properties as of March 31, 2013, is measured inaccordance with real-estate appraisal by real-estate appraisers for primary properties, and amount measured by the Groupin accordance with its Real-Estate Appraisal Standard for other properties (including those measured using indicators).

19

6. Short-term Bank Loans and Long-term Debt
Short-term bank loans at March 31, 2013 and 2012, consisted of notes to banks and bank overdrafts. The annual interest rateapplicable to the short-term bank loans ranged from 1.050% to 1.475% and 1.475% at March 31, 2013 and 2012, respectively.
Long-term debt at March 31, 2013 and 2012, consisted of the following:

20

Loans from banks and other financial institutions, due serially to 2031
with interest rates ranging from 0.67% to 5.60%
Collateralized
Unsecured
Obligations under finance leases
Total
Less current portionLong-term debt, less current portion

Millions of yen

Thousands of
U.S. dollars

2013

2012

2013

¥2,023
2,122
105
4,250
(48)
¥4,202

¥ 30
140
56
226
(32)
¥194

$21,519
22,576
1,121
45,216(510)$44,706

Annual maturities of long-term debt, excluding finance leases (see Note 11), at March 31, 2013, were as follows:Year Ending March 31

Millions of yen

2014
2015
2016
2017
2018
2019 and thereafter
Total

¥

17
14
14
14
4,013
73
¥4,145

Thousands of
U.S. dollars

$

175
152
152
149
42,690777$44,095

The carrying amount of assets pledged as collateral for the above collateralized long-term debt at March 31, 2013, was as follows:
Property, plant and equipment—net of accumulated depreciation
Investment securities
Total

Millions of yen

Thousands of
U.S. dollars

¥ 126
2,391
¥2,517$ 1,342
25,434$26,776

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

Okumura Corporation Annual Report 2013

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, 2013 and 2012, consisted of the following:

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

2013

Millions of yen
2012

Thousands of
U.S. Dollars
2013¥25,271(23,830)
366
110
106
¥ 2,023¥27,336(23,914)
(425)
165
127
¥ 3,289$268,875(253,535)
3,893
1,171
1,127
$ 21,531

The components of net periodic benefit costs for the years ended March 2013 and 2012, are as follows:

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

2013

Millions of yen
2012

Thousands of
U.S. dollars
2013

¥922
547
(335)
(401)
(55)
(21)
¥657

¥963
583
(373)
(488)
(55)
(21)
¥609

$9,812
5,814(3,562)(4,267)(585)(225)$6,987

Assumptions used for the years ended March 31, 2013 and 2012, are set forth as follows:
Discount rate
Expected rate of return on plan assets
Amortization period of prior service cost
Recognition period of actuarial differences
Amortization period of transitional obligation

2013

2012

2.0%
1.4%
10 years
10 years
15 years

2.0%
1.5%
10 years
10 years
15 years

21

22

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

Okumura Corporation Annual Report 2013

9. Income Taxes
The Group are subject to Japanese national and local income taxes which, in the aggregate, resulted in normal effective statutory tax rates of approximately 38.0% for the year ended March 31, 2013, and 40.6% for the year ended March 31, 2012.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2013 and 2012, were as follows:

Deferred tax assets:
Tax loss carryforwards
Impairment losses on securities
Allowance for doubtful accounts
Write-down of inventories
Liability for retirement benefits
Allowance for bonuses
Allowance for losses on construction contracts
Accrued expenses
Write-off of bad debt
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

2013

2012

2013

¥ 12,886
2,644
2,334
1,786
720
717
703
558
66
334
(22,704)
44¥11,923
2,570
2,925
2,271
1,171
278
1,656
485
72
340
(23,633)58$ 137,104
28,13024,82818,999
7,665
7,626
7,478
5,931
704
3,554
(241,555)
464(8,400)(1,934)(10,334)¥(10,290)(4,191)(1,960)(6,151)¥ (6,093)(89,371)(20,574)(109,945)$(109,481)

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, 2013, was as follows (2012 was omitted becauseof the net loss for the period):
2013

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

38.0%
3.4
(6.7)
5.1
(31.4)(3.0)
5.4%

On December 2, 2011, new tax reform laws were enacted in Japan, which changed the normal effective statutory tax ratefrom approximately 40.6% to 38.0% effective for the fiscal years beginning on or after April 1, 2012 through March 31, 2015,
and to 35.6% afterwards.

2310. Research and Development Costs
Research and development costs charged to income were ¥690 million ($7,339 thousand) and ¥614 million for the years ended
March 31, 2013 and 2012, respectively.

24

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, 2013 and 2012, were
¥18 million ($193 thousand) and ¥20 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

2013

2012

2013

¥ 31
74
¥105

¥16
40
¥56

$ 335
786
$1,121(2) Operating leases
Future minimum lease receivables or payments under noncancelable operating leases at March 31, 2013 and 2012, 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

2013

2012

2013

¥ 1,729
17,056¥18,785¥ 1,889
18,828¥20,717$ 18,397
181,470$199,867

¥

¥

$

¥

31
59
90

¥

26
69
95

$

331
623
954

12. Financial Instruments and Related Disclosures(1) Group policy for financial instruments
At the Group level cash surpluses, if any, are invested in low-risk and capital-safe financial assets. Short-term bank loans areused to fund its ongoing operations. Derivatives are used, not for speculative purposes, but to manage its exposure to fluctuations in foreign currency exchange and interest rates.
(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 of each transaction.
Market risk management (foreign exchange risk and interest rate risk)
Marketable and investment securities are managed by monitoring market values and financial position of issuers on a regularbasis. Also, the Group continuously reviews its possession of those securities except for held-to-maturity securities.

Okumura Corporation Annual Report 2013

Monetary assets (trade receivables) denominated in foreign currencies are exposed to the fluctuations in foreignexchange rates and long-term debt denominated in foreign currencies is exposed to the fluctuations in the market interest
rates and foreign exchange rates. The Group utilizes derivative instruments (foreign exchange forward contracts and currency and interest rate swaps contracts) as hedging instruments to manage these market risks. Hedge accounting method is
described in Note 2 n.
Please see Note 13 for more details about derivatives.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity dates. The Groupmanages its liquidity risk by making the appropriate cash schedule on a monthly basis.
(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.
(a) Fair values of financial instruments
Millions of yen

March 31, 2013

Carrying
AmountFair Value

Unrealized
Gain/Loss

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

¥ 28,449
98,240(4,034)
94,206
54,11375(1)74¥176,842¥ 28,449¥ —94,195
54,118(11)
576¥176,8382¥ (4)

Short-term bank loans
Long-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total
Derivatives¥ 16,400
4,000
47,489106¥ 67,995—¥¥ 16,400
4,010
47,489101¥ 68,000
¥
—

¥ —
10
—
(5)
¥ 5
¥—
Millions of yen

March 31, 2012

Carrying
AmountFair Value

Unrealized
Gain/Loss

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

¥ 25,625
999
88,492(1,938)86,55440,570
878
(742)
136
¥153,884¥ 25,625
999

¥—
0

86,52440,570

(30)
(0)

136
¥153,8540¥(30)

Short-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portionTotal¥ 11,145
46,39756¥ 57,598¥ 11,145
46,39754¥ 57,596

¥—
—
(2)
¥ (2)

25

Thousands of U.S. dollars

March 31, 2013

26

Carrying
AmountFair Value

Unrealized
Gain/Loss

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

$ 302,677
1,045,221(42,927)
1,002,294
575,732802(6)796$1,881,499$ 302,677$—

1,002,180
575,784

(114)
52

815
$1,881,456

19$(43)

Short-term bank loans
Long-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total
Derivatives$ 174,487
42,557505,255
1,121$ 723,420$—$ 174,487
42,665505,255
1,070$ 723,477
$—

$—
108
—
(51)
$57
$—

Amounts due from unconsolidated subsidiaries and associated companies are included in receivables-trade notes and accounts
and long-term loans receivable.
Cash and cash equivalents and time deposits
The carrying values of cash and cash equivalents and time deposits approximate fair value because of their shortmaturities.
Marketable securities and investment securities
The fair values of marketable securities and investment securities are measured at the quoted market price of thestock exchange for the equity instruments and at the quoted price obtained from the financial institution for certain
debt instruments. The information of the fair value for the marketable securities and the investment securities byclassification 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.
Payables—Trade notes and accounts and short-term bank loans
The carrying values of payables—trade notes and accounts and short-term bank loans approximate fair value
because of their short maturities.
Long-term debt—lease obligation
The fair values of long-term debt—lease obligation are determined by discounting the cash flows related to the debt
at the Group’s assumed corporate borrowing rate.
Long-term bank loans
The fair values of long-term bank loans are determined by the present value calculated by discounting the total
amount of the principal and interest expense at the interest rate considering the remaining maturities of the loans
and credit risk of the Company. The carrying values of bank loans with floating interest rates approximate fair value
because they reflect market interest rates and the credit position of the Company does not change significantly after
the execution.
Derivatives
Fair value information for derivatives is included in Note 13.
(b) Financial instruments whose fair value cannot be reliably determined
Carrying Amount

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

Millions of yen

Thousands of
U.S. dollars

2013

2012

2013

¥1,479¥1,787$15,732

Okumura Corporation Annual Report 2013(5) Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of yen

March 31, 2013

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

Due in 1 Yearor Less

Due after
1 Year through5 Years

Due after
5 Years through10 Years¥28,449
92,213

¥ —
6,027

¥ —
—

¥

—
—
¥120,662

2
21¥6,050

124
13
¥137

1,000
41
¥1,041

Due in 1 Yearor Less

Due after
1 Year through5 Years

Due after
5 Years through10 Years$302,677
981,094$
—64,127$——$1,283,771

21
229$64,377

1,320
137$1,457

Due after
10 Years——Thousands of U.S. dollars

March 31, 2013

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

—
—

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

Due after
10 Years$——

10,639436$11,07527

28

13. Derivatives
The Group enters into derivatives, in the normal course of business, to reduce the exposure to fluctuations in foreign exchange
rates and interest rates. The primary classes of derivatives used by the Group are foreign currency forward contracts, currency
and interest rate swaps.
The Group does not hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major financial institutions, the Group does not anticipate
any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate theauthorization and credit limit amount.
Derivative transactions to which hedge accounting is not applied:
There were no derivative transactions to which hedge accounting is not applied at March 31, 2013 and 2012.
Derivative transactions to which hedge accounting is applied:
There were no derivative transactions to which hedge accounting is applied at March 31, 2012.
Millions of yen

March 31, 2013

Foreign currency forward contracts: Selling U.S. dollars

Currency and interest rate swaps
Floating-rate receipt, fixed-rate payment
Receipt in U.S. dollars, payment in yen

Hedged item

Receivables—
trade notes
and accounts
Long-term
debt

Contract
amountContract
amount due
after one year

¥384

¥—

Note 1¥2,000¥2,000

Note 2Contract
amountContract
amount due
after one year$4,090¥—Note 1$21,279$21,279

Note 2

Fair value

Thousands of U.S. dollars

March 31, 2013

Foreign currency forward contracts: Selling U.S. dollars

Currency and interest rate swaps
Floating-rate receipt, fixed-rate payment
Receipt in U.S. dollars, payment in yen

Hedged item

Receivables—
trade notes
and accounts
Long-term
debt

Fair value

Notes:
1. With respect to foreign currency forward contracts which qualify for hedge accounting and meet specific matching criteria
are not remeasured at market value. The fair value of such foreign currency forward contracts is included in those of thehedged items (i.e., receivables-trade notes and accounts) in Note 12.
2. With respect to currency and interest rate swaps which qualify for hedge accounting and meet specific matching criteria are
not remeasured at market value but the differential paid or received under the swap agreement is recognized and included ininterest expense or income. The fair value of such currency and interest rate swaps is included in those of the hedged items(i.e., long-term debt) in Note 12.

Okumura Corporation Annual Report 2013

14. Commitments and Contingent Liabilities
Investments in securities in the amounts of ¥114 million ($1,211 thousand), ¥74 million ($789 thousand), and ¥1 million ($11thousand) are pledged as collateral for the guarantee against defect of construction, the loans of an affiliate, and contract performance obligation of PFI business, respectively, at March 31, 2013, and time deposit in the amount of ¥5 million ($51
thousand) is pledged for lease arrangements of construction materials at March 31, 2013. Land in the amount of ¥21 million($221 thousand) is pledged for the deposit received from lessee related to the fixed-term land leasehold at March 31, 2013.
15. Comprehensive Income
The components of other comprehensive income for the years ended March 31, 2013 and 2012, were as follows:

2013

Unrealized gain on available-for-sale securities
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before tax effect
Income tax effectTotal
Total other comprehensive income¥13,525
16
13,541(4,209)¥ 9,332¥ 9,332

Millions of yen

Thousands of
U.S. dollars

2012

2013

¥2,186
112
2,298
(205)
¥2,093¥2,093$143,902
163
144,065(44,782)$ 99,283$ 99,283

16. Subsequent EventAppropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2013, was approved at the Company’s shareholders’ meeting
held on June 27, 2013.
Year-end cash dividends, ¥9 ($0.10) per share

Millions of yen

Thousands of
U.S. dollars¥1,797$19,124

17. Segment Information
1. Description of Reportable Segments
The Group’s reportable segments are those for which separately financial information is available and regular evaluation by
the Company’s management is being performed in order to decide how resources are allocated among the Group.
Therefore, the Group’s reportable segments consist of “Civil engineering,” “Architectural construction,” and “Realestate.”2.	Methods of measurement for the amounts of sales, profit (loss), assets, liabilities and other items for each reportablesegment
The accounting policies of each reportable segment are consistent to those disclosed in Note 2, “Summary of Significant
Accounting Policies.”29

3. Information about sales, profit (loss), assets, liabilities and other items is as follows:
Millions of yen
2013

Reportable segment

30

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit (loss)
Other:
Depreciation

Civil
engineering

Architectural
construction

Real estate

Total

Other
(Note 1)

¥72,927¥111,841¥7,132¥191,900¥4,654¥196,554¥—¥196,554—
72,927599

191
112,032(3,039)

18
7,150
3,696

209
192,109
1,256

780
5,434
47

989
197,543
1,303

(989)
(989)
36

—
196,554
1,339

262

¥ 344

817

¥(7)

¥

206

¥

¥

812

¥

Total Reconciliations(Note 2)5¥Consolidated(Note 3)¥810

Millions of yen
2012

Reportable segment

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit (loss)
Other:
Depreciation

Civil
engineering

Architectural
construction

Real estate

Total

Other
(Note 1)

¥58,814¥105,051¥10,568¥174,433¥4,852¥179,285¥—¥179,285—
58,814(1,187)—105,051(4,584)26
10,5942,096

26
174,459(3,675)

362
5,214
(304)

388
179,673(3,979)

(388)
(388)
39

—
179,285(3,940)

785

¥(7)

¥

176

¥

270

¥

294

¥

740

¥

Total Reconciliations(Note 2)45¥

Consolidated(Note 3)¥

778

Thousands of U.S. dollars
2013

Reportable segment

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit (loss)
Other:
Depreciation

Civil
engineering

Architectural
construction

Real estate

Total

Other
(Note 1)$775,906$1,189,928$75,875$2,041,709$49,516$2,091,225$—$2,091,225—
775,906
6,379

2,026
1,191,954(32,335)

196
76,071
39,321

2,222
2,043,931
13,365

8,297
57,813496

10,5192,101,744
13,861(10,519)(10,519)390—
2,091,225
14,251

2,785$ 3,6628,695$(75)$$ 2,196

$

$

8,643

$

52

Total Reconciliations(Note 2)$

Consolidated(Note 3)

8,620

Notes:
1. Other is a business segment which is not included in any reportable segment, and includes business related to manufacturing
and sales of construction machineries and materials.
2. Reconciliations to segment profit (loss) in the amount of ¥36 million ($390 thousand) and ¥39 million for the years ended
March 31, 2013 and 2012, respectively, include eliminations of intersegment transactions.
3. Consolidated amounts of segment profit (loss) above correspond to the amounts of operating income in the consolidated
statements of operations.

Okumura Corporation Annual Report 2013

4. Information concerning amortization of goodwill and unamortized balance of goodwill by reportable segment
The Group records negative goodwill not allocated to any reportable segment. Amortization of negative goodwill was ¥284
million ($3,017 thousand) and ¥284 million for the years ended March 2013 and 2012, respectively, and unamortized balance at the year-end was ¥0 million ($0 thousand) and ¥284 million at March 31, 2013 and 2012, respectively. The negative
goodwill was incurred when the Company acquired additional shares in Okumura Machinery Corporation.

31

Independent Auditor‘s Report

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

32
INDEPENDENT AUDITOR’S REPORTTo the Board of Directors of Okumura Corporation:

We have audited the accompanying consolidated balance sheet of Okumura Corporation and its consolidated subsidiaries as ofMarch 31, 2013, and the related consolidated statements of operations, comprehensive income, changes in equity, and cash
flows for the year then ended, and a summary of significant accounting policies and other explanatory information, allexpressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance withaccounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable
the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, theauditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Okumura Corporation and its consolidated subsidiaries as of March 31, 2013, and the consolidated results of
their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made in accordance with the basis stated in Note 1 to the consolidated financial statements. Such U.S.
dollar amounts are presented solely for the convenience of readers outside Japan.

June 27, 2013
Member of
Deloitte Touche Tohmatsu Limited

Breakdown of Orders (Non-Consolidated)
Okumura Corporation
Year ended March 31, 2013

Okumura Corporation Annual Report 2013

Construction Orders Awarded

2013

Millions ofyen

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

60.3

18,564
72,814—
91,378100 %48,50787,784
3,748¥140,039

Composition
ratio

Millions of
yen

37.8%

¥ 39,818
16,4842,512
58,81458.1

15,56789,484—
105,051

95.9
4.1
100 %

55,385
105,968
2,512
163,865
6,169¥170,034

Composition
ratio

Millions of
yen

39.5%

¥ 50,000
21,4195,828
77,24760.5

30,20589,187—
119,392

100 %

80,205
110,606
5,828¥196,639

101,501
70,146
2,375¥174,022
2013

Millions ofyen¥ 54,276
15,534
3,117
72,927
19,78891,905339
112,032
74,064
107,4393,456
184,959
7,982¥192,941

Year-end Backlog¥ 56,766
13,283
3,345
73,39450,87460,031
1,402
112,307
107,640
73,314
4,747¥185,701

Composition
ratio

Thousands of
U.S. dollars

34.7%$ 649,467
78,703
6,744
734,91465.3

430,436
667,621
18,522
1,116,579

100 %

1,079,903
746,324
25,266$1,851,493

Composition
ratio

Thousands of
U.S. dollars

34.6%$ 577,473
165,272
33,161775,906

61.8

210,536
977,809
3,609
1,191,954

96.4
3.6
100 %

788,009
1,143,081
36,7701,967,860
84,924$2,052,784

Composition
ratio

Thousands of
U.S. dollars

39.3%$ 603,961
141,32135,593780,875

60.7

541,268
638,703
14,913
1,194,884

100 %

1,145,229
780,024
50,506$1,975,759

2013

2012

2013

Millions ofyen

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

39.7%

¥ 29,943
14,9703,748
48,66140,45762,749
1,741
104,947

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¥ 61,044
7,397
634
69,0752013

2012

Composition
ratio

2013

2012

33

Network

Head and Branch Offices

34

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

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

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
2-1-18, Kita Shijo Nishi,
Chuo-ku, Sapporo 060-0004, 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

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
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

Board of Directors

Investor Information(As of June 27, 2013)(As of March 31, 2013)
Okumura Corporation Annual Report 2013

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

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

years has been made possible through the unflagging supportof our customers.
Okumura’s main business activities include construction projects for houses, public facilities, medical facilities, andoffice buildings. In the area of civil engineering are projects
such as railways, roads, power station facilities, sewage andwater works, and others. The Company has developed technology at the highest level, with achievements including theseismic isolation system used to construct Japan’s first earthquake-absorbing building. In the area of environment-related
technology, Okumura has developed techniques for 100%

Directors
Toshio Yamaguchi
Kozo Aoki
Makoto Tsuchiya
Kazuo Takami
Seiichi Fujioka
Toshio Kobayashi
Yuichi Mizuno
Kiyoshi Saito

EstablishedFebruary 22, 1907

Standing Statutory Auditors
Yuji Takemura
Koichi Yamauchi

Stock Information

Auditors
Yoshio Takahashi
Yoshihiro Ban
Kazuo Tsuji

recycling of demolished concrete, and natural greening of
concrete surfaces on buildings.
Okumura understands what an important mission it isto provide a better environment for the future. Accordingly,

Notes:1. Kiyoshi Saito is outside director.

Capital¥19.8 billion

Stock Exchange Listings
Tokyo and Osaka
Transfer Agent
Sumitomo Mitsui Trust Bank, Limited
Major Shareholders
Shareholder

Shares held
(thousands)

Percentage oftotal

Okumura Corporation(Treasury stock)28,60912.53%

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

18,9208.29

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

7,736

3.39

Okumura Employees’
Shareholding Association

7,555

3.31

BBH/Blackrock Global
Allocation Fund, Inc.

6,712

2.94

Resona Bank, Limited.

6,074

2.66

Sumitomo Realty &Development Co., Ltd.

6,050

2.65

Japan Trustee Services Bank,
Ltd. (Trust Account)

5,661

2.48

Sumitomo Mitsui Banking
Corporation

5,568

2.44

Nippon Life Insurance Company

4,593

2.01

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

3,516

1.54

2. Yoshio Takahashi, Yoshihiro Ban and Kazuo Tsuji are outside auditors.

the Company is dedicated to contributing to meaningfulsocial infrastructure investment and to always being a corporation regarded highly by society. It will achieve this by con-

Executive Officers

tinuing to develop as an all-around construction company

Senior Managing Officers
Takaiku Hirako*
Toshio Yamaguchi*
Masamichi Shirahase
Kozo Aoki*
Makoto Tsuchiya*

based on steadfast business management.

Contents
1 Financial Highlights
2 To Our Shareholders
4 Review of Operations
6 Topics
8 Consolidated Balance Sheet
10 Consolidated Statement of Operations
11 Consolidated Statement of Comprehensive Income
12 Consolidated Statement of Changes in Equity
13 Consolidated Statement of Cash Flows
14 Notes to the Consolidated Financial Statements
32 Independent Auditor’s Report
33 Breakdown of Orders (Non-Consolidated)
34 Network
35 Board of Directors / Investor Information

Managing Officers
Kazuo Takami*
Seiichi Fujioka*
Hiroomi Iida
Keiji Yamaguchi
Hirokazu Oishi
Executive Officers
Toshio Kobayashi*
Takeshi Kurita
Yuichi Mizuno*
Yutaka Maruyama
Takanori Hayashi
Noriyuki MachidaKenji Kotera
Note: Those officers marked with an asterisk (*) work as directors.

35

Group Employees
1,855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

Okumura Corporation
Annual Report 2013

Printed in Japan