2023

FINANCIALSTATEMENTS
MARCH 31, 2022-2023

KITANO CONSTRUCTION CORP.

Contents

Financial Statements

Consolidated Balance Sheets................................................................................................. 2

Consolidated Statements of Income..................................................................................... 4

Consolidated Statements of Comprehensive Income......................................................... 5

Consolidated Statements of Changes in Equity................................................................... 6

Consolidated Statements of Cash Flows.............................................................................. 7

Notes to Consolidated Financial Statements....................................................................... 8

Board of Directors, Statutory Auditors and Executive Officers........................... 26

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K I TA N O C O N S T R U C T I O N C O R P.

Consolidated Balance Sheets
As of March 31, 2022 and 2023
Millions of yen
March 31,
2022

2023

Current Assets:
Cash in hand and in banks.................................................................
Notes and accounts receivable..........................................................
Securities..............................................................................................
Real estate for sale..............................................................................
Cost of construction in progress.......................................................
Cost of uncompleted development projects....................................
Inventories............................................................................................
Other current assets............................................................................
Less: allowance for doubtful accounts.............................................
Total current assets......................................................................

¥14,906
15,443
6
3,232
385
—
55
1,679
(14)
35,695¥26,132
12,662
28
3,230
1,119
50
405
1,346
(14)
44,960Non-current Assets:
Tangible Fixed Assets:
Buildings and structures..............................................................
Machinery and equipment...........................................................
Tools, furniture and fixtures.......................................................
Golf course....................................................................................
Land................................................................................................
Other non-current assets.............................................................
Less: accumulated depreciation.................................................
Total tangible fixed assets....................................................

15,965
2,915
3,048
770
10,073
97(12,151)
20,72016,675
3,068
3,149
770
10,073
97(13,706)
20,129Intangible fixed assets........................................................................

188

244

Investments:
Investment securities...................................................................
Long-term loans............................................................................
Net defined benefit asset.............................................................
Deferred tax assets.......................................................................
Other investments........................................................................
Less: allowance for doubtful accounts......................................
Total investments..................................................................
Total non-current assets.......................................................
Total assets.............................................................................

6,140
64
913
17
1,792
(31)
8,896
29,805¥65,500

6,534
54
896
18
1,954
(31)
9,426
29,801¥74,761

ASSETS

The accompanying notes are an integral part of these statements.
K I TA N O C O N S T R U C T I O N C O R P.

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Consolidated Balance Sheets
As of March 31, 2022 and 2023
Millions of yen
March 31,
2022

2023

¥9,891
4,110
4,000
238
4,024
6
323
51
46
2,028
24,721¥12,568
8,065
—
1,305
7,936
6
408
54
65
1,667
32,077

65
1,756
—
1,167
288
3,278
27,999

62
1,701
753
1,029
275
3,822
35,899

9,116

9,116

3,188
24,443(1,951)
34,796

3,188
25,811(2,554)35,562

Unrealized gain (loss) on available-for-sale securities...................
Deferred gain (loss) on hedging derivatives....................................
Foreign currency translation adjustment.........................................
Remeasurements of defined benefit plans.......................................
Total accumulated other comprehensive income....................

1,820
39
238
88
2,186

2,132
(0)
581
42
2,756

Non-controlling interests.............................................................................

517

543

Total net assets.............................................................................................

37,501

38,861

Total liabilities and net assets.....................................................................

¥65,500¥74,761

LIABILITIESCurrent Liabilities:
Notes and accounts payable..............................................................
Electronically recorded obligations - operating..............................
Short-term borrowings.......................................................................
Income taxes payable.........................................................................
Advances received on construction in progress.............................
Advances received on uncompleted development business.........
Accrued bonuses to employees.........................................................
Accrued bonuses to directors and statutory auditors....................
Accrued warranty................................................................................
Other current liabilities......................................................................
Total current liabilities................................................................
Non-current Liabilities:
Net defined benefit liability................................................................
Membership deposit............................................................................
Provision for loss on guarantees.......................................................
Deferred tax liabilities........................................................................
Other non-current liabilities...............................................................
Total non-current liabilities.........................................................
Total liabilities..............................................................................
NET ASSETS
Shareholders’ Equity:
Common stock.....................................................................................
Authorized — 20,000,000 shares
Issued — 6,836,853 shares as of March 31, 2022 and
6,836,853 shares as of March 31, 2023
Capital surplus.....................................................................................
Retained earnings................................................................................
Treasury shares...................................................................................
Total shareholders’ equity...........................................................
Accumulated Other Comprehensive Income:The accompanying notes are an integral part of these statements.
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Consolidated Statements of Income
For the years ended March 31, 2022 and 2023
Millions of yen
for the year ended March 31,
2022

2023

¥57,696
2,407
60,103¥81,803
3,473
85,277Gross profit..................................................................................................

51,5881,846
53,434
6,669

73,5362,207
75,743
9,533

Selling, General and Administrative Expenses.......................................
Operating income.......................................................................................

4,274
2,394

5,602
3,931

150
312
0
—
(56)
(0)
(17)
81
2,864

167
229
0
32
(42)
—
(17)
57
4,358

Special Items:
Gain on sales of non-current assets................................................
Gain on sales of investment securities...........................................
Provision for loss on guarantees.....................................................
Loss on sales of investment securities...........................................
Loss on disposal of non-current assets...........................................
Loss on valuation of investment securities....................................
Impairment loss.................................................................................
Income before income taxes.....................................................

—
123
—
(0)
(4)
(191)
(22)
2,770

0
40
(753)
—
(7)
—
(344)
3,295

Income Taxes:
Current................................................................................................
Deferred..............................................................................................
Profit.............................................................................................................
Profit attributable to non-controlling interests......................................

827
183
1,760
20

1,600
(319)
2,014
26

Profit attributable to owners of parent....................................

¥1,739¥1,988

Net Sales:
Construction contracts.....................................................................
Real estate development and other.................................................
Cost of Sales:
Construction contracts.....................................................................
Real estate development and other.................................................

Non-operating Income (Expenses):
Interest and dividend income..........................................................
Foreign exchange gains....................................................................
Reversal of allowance for doubtful accounts................................
Surrender value of insurance policies............................................
Interest expenses...............................................................................
Provision of allowance for doubtful accounts...............................
Commitment fee................................................................................
Other, net............................................................................................

The accompanying notes are an integral part of these statements.
K I TA N O C O N S T R U C T I O N C O R P.

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Consolidated Statements of Comprehensive Income
For the years ended March 31, 2022 and 2023
Millions of yen
for the year ended March 31,

Profit.............................................................................................................
Other Comprehensive Income:Unrealized gain (loss) on available-for-sale securities.................
Deferred gain (loss) on hedging derivatives..................................
Foreign currency translation adjustment.......................................
Remeasurements of defined benefit plans.....................................
Total other comprehensive income................................................
Comprehensive Income.............................................................................
Comprehensive income attributable to:
Owners of parent...............................................................................
Non-controlling interests..................................................................

2022

2023

¥1,760¥2,014

(165)
23
213
(36)
34
1,794

312
(39)
344
(45)
571
2,586

1,773
20

2,557
28

The accompanying notes are an integral part of these statements.
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K I TA N O C O N S T R U C T I O N C O R P.

Consolidated Statements of Changes in Equity
For the years ended March 31, 2022 and 2023
Millions of yen
Accumulated other comprehensive income

Shareholders’ equity
Number ofshares of

Unrealized

DeferredForeign

gain (loss) on gain (loss) currency Remeasurements

common Common Capital Retained Treasury available-for- on hedging translation of defined Non-controlling Total net
stock surplus earnings shares sale securities derivatives adjustment benefits plans interests assets
stock(thousands)
Balance at March 31, 2021......
Cumulative effects ofchanges in accounting
policies............................
Restated balance......................
Dividends of surplus........
Profit attributable toowners of parent............
Purchase of treasury
shares...............................
Disposal of treasury
shares...............................
Net changes of
items other thanshareholders’ equity.......
Total changes of items
during period..................

6,836

9,116

3,188 23,384(1,938)

1,985

16

26

124

498 36,403

—
6,836
—

—
9,116
—

—
2
—
3,188 23,386 (1,938)
—
(682)
—

—
1,985
—

—
16
—

—
26
—

—
124
—

—
2
498 36,405
—
(682)

—

—

—

1,739

—

—

—

—

—

—

1,739

—

—

—

—

(13)

—

—

—

—

—

(13)

—

—

(0)

—

0

—

—

—

—

—

0

—

—

—

—

—

(164)

23

212

(36)

18

52

—

—

(0)

1,057

(13)

(164)

23

212

(36)

18

1,095

Balance at March 31, 2022......

6,836

9,116

3,188 24,443(1,951)

1,820

39

238

88

517 37,501

Balance at March 31, 2022......
Dividends of surplus........
Profit attributable toowners of parent............
Purchase of treasury
shares...............................
Disposal of treasury
shares...............................
Net changes of
items other thanshareholders’ equity.......
Total changes of items
during period..................

6,836
—

9,116
—

3,188 24,443 (1,951)
—
(619)
—

1,820
—

39
—

238
—

88
—

517 37,501
—
(619)

—

—

—

1,988

—

—

—

—

—

—

1,988

—

—

—

—

(603)

—

—

—

—

—

(603)

—

—

(0)

—

0

—

—

—

—

—

0

—

—

—

—

—

312

(39)

342

(45)

26

595

—

—

(0)

1,368

(602)

312

(39)

342

(45)

26

1,360

Balance at March 31, 2023......

6,836

9,116

3,188 25,811(2,554)

2,132

(0)

581

42

543 38,861

The accompanying notes are an integral part of these statements.
K I TA N O C O N S T R U C T I O N C O R P.

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Consolidated Statements of Cash Flows
For the years ended March 31, 2022 and 2023
Millions of yen

for the year ended March 31,
2022

2023

¥2,770¥3,295

839
22
(150)
56
(214)
191
(123)
—
4
(40)
17
(0)
1
(17)
—
3,537

891
344
(167)
42
(316)
—
(40)
(0)
7
(54)
18
85
2
(0)
753
2,785

1,000
10
607
(3,871)
(716)
(70)
(14)
3,837
150
(56)
(1,606)
2,324

(783)
(343)
344
6,625
3,912
(443)
20
16,975
167
(42)
(581)
16,520Cash flows from investing activities:
Payment into time deposit...........................................................................................
Proceeds from withdrawal of time deposit...............................................................
Payments for purchase of tangible fixed assets.......................................................
Proceeds from sale of tangible fixed assets..............................................................
Payments for purchase of intangible fixed assets....................................................
Payments for purchase of investment securities......................................................
Proceeds from sales of investment securities...........................................................
Proceeds from redemption of investment securities...............................................
Payments for loans.......................................................................................................
Proceeds from recovery of loans................................................................................
Payments of guarantee deposits.................................................................................
Other...............................................................................................................................
Net cash provided by (used in) investing activities....................................

(971)
561
(308)
—
(22)
(108)
402
16
(0)
12
(23)
97
(345)

(807)
971
(372)
0
(87)
(61)
128
6
(2)
37
(230)
181
(236)

Cash flows from financing activities:
Increase (decrease) in short-term borrowings.........................................................
Purchase of treasury shares........................................................................................
Disposal of treasury shares.........................................................................................
Cash dividends paid......................................................................................................
Cash dividends paid to non-controlling interests.....................................................
Other...............................................................................................................................
Net cash provided by (used in) financing activities...................................

—
(13)
0
(683)
(2)
(16)
(715)

(4,000)
(603)
0
(619)
(2)
(16)
(5,241)

Effect of exchange rate changes on cash and cash equivalents....................................
Net increase (decrease) in cash and cash equivalents...................................................
Cash and cash equivalents of beginning of year..............................................................
Cash and cash equivalents of end of year........................................................................

235
1,498
12,436¥13,935

344
11,386
13,935¥25,321

Cash flows from operating activities:
Income before income taxes................................................................................
Adjustments for:
Depreciation...........................................................................................................
Impairment loss.....................................................................................................
Interest and dividend income...............................................................................
Interest expenses...................................................................................................
Foreign exchange (gains) losses..........................................................................
(Gain) loss on valuation of investment securities.............................................
(Gain) loss on sales of investment securities.....................................................
Gain on sales of non-current assets.....................................................................
Loss on disposal of non-current assets...............................................................
Increase (decrease) in net defined benefit asset and liability................................
Increase (decrease) in accrued warranty..................................................................
Increase (decrease) in accrued bonuses to employees...........................................
Increase (decrease) in accrued bonuses to directors and statutory auditors......
Increase (decrease) in allowance for doubtful accounts........................................
Increase (decrease) in provision for loss on guarantees.........................................
(Increase) decrease in notes and accounts receivable............................................
(Increase) decrease in cost of construction in progress and cost of
uncompleted development projects....................................................................
(Increase) decrease in real estate for sale and inventories.....................................
(Increase) decrease in other current assets..............................................................
Increase (decrease) in notes and accounts payable................................................
Increase (decrease) in advances received on construction in progress................
Increase (decrease) in other current and non-current liabilities...........................
Other...............................................................................................................................
Sub-total...........................................................................................................
Interest and dividend income received......................................................................
Interest expenses paid.................................................................................................
Income taxes paid.........................................................................................................
Net cash provided by (used in) operating activities...................................

The accompanying notes are an integral part of these statements.
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Notes to Consolidated
Financial Statements
1. Basis of Presenting Consolidated Financial Statements(a) Accounting principles
The accompanying consolidated financial statements have been prepared based on the accounts maintainedby Kitano Construction Corp. (the “Company”) and its subsidiaries prepared in accordance with accounting
principles generally accepted in Japan, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards, and are compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
(b) Scope of consolidation
The Company had 4 subsidiaries (majority-owned companies) as at March 31, 2023 (4 for 2022). The
consolidated financial statements in the fiscal year ended March 31, 2023 include the accounts of the Company
and 4 (4 for 2022) of its subsidiaries (the “Companies”), which are listed below:•Kawanakajima Tochi Kaihatsu Co., Ltd.......................................... 91.7% owned•Solomon Kitano Mendana Hotel Limited........................................ 100.0% owned•Sakura Hanoi Plaza Investment Co., Ltd. ....................................... 99.5% owned•Asahi Agency Inc. .............................................................................. 59.5% owned
The above consolidated subsidiaries, except for Solomon Kitano Mendana Hotel Limited and Sakura Hanoi
Plaza Investment Co., Ltd., which have a fiscal year ending at December 31 of each year, have a fiscal year endingat March 31 of each year, which is the same as the fiscal year of the Company.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
All significant intercompany balances, intercompany transactions and unrealized profits among theCompanies have been eliminated in consolidation and the portion thereof attributable to non-controlling interests
is charged to non-controlling interests.
(b) Recognizing revenues and costs of construction contracts
Details of major performance obligations in main businesses in relation to revenue from contracts withcustomers of the Company and its consolidated subsidiaries, and normal timing when these performanceobligations are satisfied (normal timing when revenue is recognized) are as follows.
(1) Construction
In the construction business, the Company mainly assumes obligations to execute construction work
related to building and civil engineering based on construction contracts with clients.
Construction contracts are performance obligations that are satisfied over a certain period of time,
because the Company’s performance of an obligation creates an asset or enhances value of an asset, and thecustomer obtains control of the asset as the asset is created or value of the asset is enhanced. Revenue isrecognized over a certain period of time based on progress of construction.
Progress towards satisfaction of performance obligations is measured based on the proportion of
construction cost that is incurred by the last day of each reporting period to the estimated total of
construction cost. In addition, when progress towards satisfaction of performance obligations cannot bereasonably estimated, but incurred costs are expected to be recovered, revenue is recognized using the cost
recovery method.
Consideration for transactions of construction work is received in stages during the contract period,
separately from satisfaction of performance obligations, and the remaining amount is basically received
within one year after all the performance obligations are satisfied. Contract assets are recognized as rights toconsideration that is recorded through the recognition of revenue according to the progress. Contract assets
are reclassified to notes and accounts receivable when the right to consideration becomes unconditional.
Advance consideration received from customers prior to fulfillment of a contract is recognized as contract
liabilities (advances received on construction in progress), and reversed as revenue is recognized in relation
to the contract for the advance consideration.
For construction contracts for which the period from the day when the transaction under the contract
begins to the time when performance obligations are expected to be completely satisfied is very short, theCompany does not recognize revenue over a certain period of time, but recognizes revenue when
performance obligations are completely satisfied, applying the alternative treatment.
(2) Hotels
In the hotels business, the Company assumes obligations to provide accommodation services of hotels inaccordance with the accommodation terms and conditions. These performance obligations are satisfied at apoint in time when the provision of services is completed, and revenue is recognized at the time ofcompletion. The payment of accommodation fees is received at the time when hotel guests check out.

K I TA N O C O N S T R U C T I O N C O R P.

8

(3) Golf courses
In the golf courses business, the Company assumes obligations to provide services for use of golf course
facilities to members and other customers in accordance with the service use terms and conditions, etc.
These performance obligations are satisfied at the time when the facilities are used. In addition, major
consideration for transactions is fees for using the golf courses such as play fees, and is received at the endof using the facilities.
(4) Advertising agent
In the advertising agent business, the Company mainly provides services such as placement ofadvertising to various media, advertising production, and production of diverse contents. As for theplacement of advertising, the Company considers that control of the service is transferred to customers andperformance obligations are satisfied principally at the time when advertising is placed to media. As for theprovision of services such as advertising production and production of diverse contents, the Company
considers that control of goods or services is transferred to customers and performance obligations are
satisfied mainly by the acceptance inspection of the product by customers or the provision of services.
Consideration for various service revenues is basically received within one month from the satisfaction of
performance obligations.
With regard to revenue related to the construction business and the advertising agent business, fortransactions in which the role of the Company in the provision of goods or services to customers falls under
the category of agent, revenue is recognized at the net amount calculated by deducting the amount paid tobusiness partners for the goods or services from the amount received from customers.
(c) Inventory valuation
The cost of construction in progress, real estate for sale and the cost of uncompleted development projects
are stated at cost, as determined on a specific project basis.
Materials and supplies are stated at cost, as determined based on an average method.
The net book value of inventories in the balance sheet is written down if the net realizable value declines.
(d) Depreciation
Depreciation is computed by the declining-balance method; provided however, buildings (excluding
leasehold improvements and auxiliary facilities attached to buildings), facilities attached to buildings andstructures acquired on or after April 1, 2016 and real estate for leasing are depreciated by the straight-line method
at rates based on the estimated useful lives of the assets, as prescribed by Japanese income tax laws. The range ofuseful lives is principally from 2 to 50 years for buildings and structures and from 2 to 17 years for machinery andequipment.
(e) Allowance for doubtful accounts
The balance of allowance for doubtful accounts represents the amount deemed necessary to cover possible
losses estimated on an individual doubtful account basis. The amount is calculated using a certain percentage
based on past experience for other accounts.
(f) Accrued warranty
Accrued warranty is provided for against the future costs of warranty from completed construction.
(g) Accrued bonuses to employees
Accrued bonuses are computed by estimating the payment required in order to provide for the payment ofbonuses to employees.
(h) Accrued bonuses to directors and statutory auditors
Accrued bonuses are computed by estimating the payment required in order to provide for the payment ofbonuses to directors and statutory auditors.
(i) Reserve for retirement benefits to employees
The Company recognizes accrued pension and severance costs to employees based on the actual valuationof projected benefit obligation and plan assets at fair value.
Actuarial gains and losses were recognized using mainly the straight-line method over a period of 10 years.
Prior service costs were amortized using mainly the straight-line method over a period of 10 years, the period
within the estimated average remaining service life of the employees.
(j) Allowance for losses on construction contracts
The Company prepares reasonable estimated amount for future losses from construction works outstanding
at fiscal year-end.
(k) Provision for loss on guarantees
The Company prepares reasonable estimated amount of future losses to be incurred in relation to debt
guarantees, taking into account the financial position of the guaranteed company, etc.
(l) Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of cash flows are composed of cash in hand, bankdeposits able to be withdrawn on demand and short-term investments with an original maturity of three months
or less and which represent a minor risk of fluctuations in value.

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(m) Income taxes
The income taxes of the Company and its domestic subsidiaries consist of corporate income taxes, local
inhabitants’ taxes and enterprise taxes.
The Company and its subsidiaries account for deferred taxes in accordance with the regulations for
preparation of consolidated financial statements in Japan. Deferred income taxes are determined using the asset
and liability approach, whereby deferred tax assets and liabilities are recognized in respect of temporary
differences between the tax basis of assets and liabilities and those as reported in the financial statements.
(n) Securities valuation
Held-to-maturity debt securities are carried at amortized cost.
Available-for-sale securities are classified into two categories: (1) securities other than shares, etc. whose
quoted market price is not available and (2) shares, etc. whose quoted market price is not available.
(1)	Securities other than shares, etc. whose quoted market price is not available are valued at fair value. Net
unrealized gains or losses on these securities are reported as a separate component of net assets at a netof-tax amount. Cost of sales is determined by the moving-average method.
(2)	Shares, etc. whose quoted market price is not available are valued at cost, determined by the movingaverage method.
(o) Hedge accounting
Gains or losses arising from changes in the fair value of the derivatives designated as “hedging instruments”
are deferred as an asset or liability and included in net profit or loss in the same period during which the gains
and losses on the hedged items or transactions are recognized.
The derivatives designated as hedging instruments by the Company are principally forward exchange
contracts. The related hedged items are finance for the overseas construction business. The Company is able tofix future cash flows and mitigate the deterioration of income from the construction business due to yen
depreciation. The Company obtains management approval before making forward exchange contracts, andsubsequently the accounting department executes and controls the contract. Evaluation of effectiveness has been
omitted for forward exchange contracts because these are expected to completely offset cash-flow fluctuations
resulting from exchange rate fluctuations as the hedging instrument and the hedged item are in the same
currency.
(p) Reclassification of accounts
Certain prior year amounts have been reclassified to conform with the current year’s presentation.

K I TA N O C O N S T R U C T I O N C O R P.

10

Significant accounting estimates
1. Revenue based on performance obligations that are satisfied over a certain period of time.
a. Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2022 and 2023
Millions of yen
for the year ended March 31,
2022
2023
Construction contracts...................................................................................
¥56,409¥80,716
b. Information on details of significant accounting estimates for identified items
For construction contracts in the construction business, the progress towards satisfaction of performanceobligations over a certain period of time is estimated with such contracts, and revenue is recognized based on thisprogress.
The progress of construction is calculated based on what percentage of total construction work costs havebeen expended in the work performed up to the fiscal year closing date. The total construction work costs are theestimated amount based on the information available as of the fiscal year closing date. However, given thevariability arising from the various factors of uncertainty, such as future additions or alterations to contracts,changes in prices of materials, wages, etc., and weather, the actual final total cost of construction work may bedifferent from the estimate.
2. Impairment loss on non-current assetsa.	Amounts recorded in the consolidated financial statements for the fiscal years ended March 31, 2022 and2023
Millions of yen
for the year ended March 31,
2022
2023
Tangible fixed assets..............................................................................
¥20,720¥20,129
Intangible fixed assets............................................................................
188
244
22
344
Impairment loss.......................................................................................
b.

Information on details of significant accounting estimates for identified items
In principle, the Company and its subsidiaries group assets for business use based on business divisions
whose profit and loss are identified continuously, and idle assets are grouped by individual asset.
As for judgment on indications of impairment, the Company and its subsidiaries consider that there is anindication of impairment when operating loss continues, and is expected to continue, to be recorded on an
individually grouped asset or asset group, when fair value of a non-current asset decreases significantly, or inother cases.
Of non-current assets, for assets or asset groups for which there is an indication of impairment, if the total
amount of undiscounted future cash flows that can be gained from the asset or asset group falls below the bookvalue, the book value is reduced to the recoverable amount, and the reduced amount is recorded as impairment
loss. The recoverable amount in this case is calculated based on the net sale value or value in use.
While the Company and its subsidiaries consider carefully in the judgment and measurement of an indication
and recognition of impairment loss, if there is any change in conditions or assumptions on which the estimatedamount is based due to changes in the business plan or market environment, recording of additional impairment
loss may be required.

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3. Recording of provision for loss on guaranteesa.	Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2022 and 2023
Millions of yen
for the year ended March 31,
2022
2023
Provision for loss on guarantees...........................................................
¥—
¥753
b.

Information on details of significant accounting estimates for identified items
The Company has delivered a shareholder support agreement subject to the condition that certain eventsoccur, together with other equity investors, with regard to borrowings of a guaranteed company in which it has
taken a stake.
Furthermore, under a shareholders agreement, the Company has an obligation to purchase class A
preference shares issued by the guaranteed company, subject to the condition that certain events occur, together
with other equity investors.
The estimated amount of losses to be incurred has been calculated, taking into consideration the businessenvironment, operating results, financial position and outstanding borrowings of the guaranteed company, andthe Company’s investment ratio. However, this estimate is subject to uncertain economic conditions in the future
and the guaranteed company’s business condition, and may significantly affect the consolidated financial
statements in and after the next fiscal year.
Changes in presentation
1. Consolidated statements of cash flows“Payments of guarantee deposits” under “Cash flows from investing activities” has been presented
individually from the current fiscal year since its materiality in amount has increased. The consolidated
statements of cash flows for the previous fiscal year have been reclassified in order to reflect this change inpresentation.
As a result, in the consolidated statements of cash flows for the previous fiscal year, ¥73 million previously
presented in “Other” under “Cash flows from investing activities” has been reclassified as “Payments of guarantee
deposits” of ¥(23) million and “Other” of ¥97 million.

K I TA N O C O N S T R U C T I O N C O R P.

12

3.

Notes to Consolidated Balance Sheets
Millions of yen
March 31,
2022
2023

(1) Items relating to non-consolidated subsidiaries and associates
Investment securities.............................................................................
¥23
¥31
(2) Inventories
51
400
Materials and supplies............................................................................
Merchandise............................................................................................
4
5(3) The guarantee of housing construction flaw security
Securities..................................................................................................
628
Investment securities.............................................................................
6133(4) Assets pledged as collateral and secured liabilities
Assets pledged as collateralLand...................................................................................................
1,160
1,160
Buildings...........................................................................................
366
342
Secured liabilities
2,000—
Short-term borrowings....................................................................
(5) Receivables arising from contracts with customers andcontract assets
Notes receivable - trade.........................................................................
34
190
Accounts receivable - trade...................................................................
296
370
Accounts receivable from completed construction contracts..........
4,544
2,536
Contract assets........................................................................................
10,5679,565(6) Contract liabilities
4,024
7,936
Advances received on construction in progress.................................
15
6
Advances received..................................................................................
(7) Guarantee obligations, etc.
6,394
5,920
Soyano Wood Power co., ltd. ................................................................
Under a shareholders agreement, the Company has an obligation to purchase ¥500 million of class A
preference shares issued by the above company, subject to the condition that certain events occur, together withother equity investors. The Company’s investment ratio in this company is 8.3%. In the current fiscal year,
provision for loss on guarantees of ¥753 million was recorded.
4.

Notes to Consolidated Statements of Income
Millions of yen
for the year ended March 31,
2022
2023

(1) Write-down of inventories included in cost of
sales on real estate development and other.................................
(2) The major components of “Selling, general andadministrative expenses”
Payroll......................................................................................................
Retirement benefit expenses.................................................................
Allowance for accrued bonuses............................................................
Provision of allowance for doubtful accounts....................................
Depreciation............................................................................................

13

K I TA N O C O N S T R U C T I O N C O R P.

¥4

¥1

1,360
42
148
(0)
506

1,582
43
178
(0)
564

5.

Notes to Consolidated Statements of Comprehensive Income
Reclassification adjustments and tax effects related to other comprehensive income were as follows:
Millions of yen
for the year ended March 31,
Net unrealized gain (loss) on available-for-sale securities, net of taxes
2022
2023
Gains (losses) arising during the year..............................................
¥(336)¥406
Reclassification adjustments.............................................................
115
40
		
Total before tax effect.................................................................
(221)
446
		
Tax effect......................................................................................
56
(134)
		
Net unrealized gain (loss) on available-for-sale securities,
(165)
312
		
net of taxes.............................................................................
Deferred gain (loss) on hedging derivatives, net of taxes
Gains (losses) arising during the year..............................................
		Tax effect......................................................................................
		
Deferred gain (loss) on hedging derivatives, net of taxes......

¥33
(10)
23

¥(57)
17(39)

Foreign currency translation adjustment
Gains (losses) arising during the year..............................................

¥213

¥344

Remeasurements of defined benefit plans, net of tax
Gains (losses) arising during the year..............................................
Reclassification adjustments.............................................................
		
Amount before income tax effect..............................................
		
Income tax effect.........................................................................
		
Remeasurements of defined benefit plans, net of tax.............

¥(39)
(12)
(52)
15
(36)

¥(46)
(18)
(64)
19
(45)

		

¥34

¥571

Total other comprehensive income...........................................

K I TA N O C O N S T R U C T I O N C O R P.

14

6.

Notes to Consolidated Statements of Changes in Equity(a) Type and number of outstanding shares
March 31, 2022
Number of shares
Type of shares
Balance atIncrease in shares
beginning of year
during the year
Issued stock
Common stock
6,836,853—
Total
6,836,853—
Treasury shares
Common stock
Total

632,048
632,048

Decrease in shares
during the year

6,160
6,160

Balance at
end of year——

6,836,853
6,836,853

8
8638,200
638,200

The summary of the main change reason
Increase by the repurchase of shares less than one unit........................................................
Decrease due to purchase of shares less than one unit...........................................................

Type of shares

Balance at
beginning of year

March 31, 2023
Number of shares
Increase in shares
during the year

Decrease in shares
during the year

6,160 shares
8 shares

Balance at
end of year

Issued stock
Common stock
Total

6,836,853
6,836,853

—
—

—
—

6,836,853
6,836,853

Treasury shares
Common stockTotal

638,200
638,200

253,834
253,83447
47

891,987
891,987

The summary of the main change reason
Increase by acquisition of treasury sharesby resolution of the Board of Directors.......................................................................... 250,000 shares
Increase by the repurchase of shares less than one unit.................................................
3,834 shares
Decrease due to purchase of shares less than one unit...........................................................
47 shares(b) Dividends		(1) Dividends paid to shareholders
Resolution
Date ofapproved
Type ofapprovalbysharesJune 28,2022

		Commonstock

619

Paid from
Retainedearnings

Amountper share Shareholders’(Yen)
cut-off date
100.0

March 31,2022

Effective
date
June 29,2022(2)	Dividends with a shareholders’ cut-off date during the current fiscal year but an effective date
subsequent to the current fiscal year
Resolution
AmountAmountDate ofapproved
Type of(Millions ofper share Shareholders’ Effective
approvalbysharesyen)
Paid from(Yen)
cut-off datedate
June 23,2023

15Annualgeneralmeeting ofshareholders

Amount(Millions ofyen)Annualgeneralmeeting ofshareholders

K I TA N O C O N S T R U C T I O N C O R P.

Commonstock

653

Retainedearnings

110.0

March 31,2023

June 26,2023

7.

Notes to Consolidated Statements of Cash Flows

Cash in hand and in banks.....................................................................
Time deposits with a deposit term of over 3 months.........................
Cash and cash equivalents.....................................................................

Millions of yen
March 31,2022
2023
¥14,906¥26,132
(971)
(811)
¥13,935¥25,321

8. Fair Value of Financial Instruments
	The fair values and book values of financial instruments as of March 31, 2022 and March 31, 2023 are as
follows:
Millions of yen
March 31, 2022
Book value
Fair value
Difference
Securities and investment securities...............
¥4,801¥4,801¥—Total.............................................................
¥4,801¥4,801¥—
Derivative transactions.....................................

Securities and investment securities...............
Total.............................................................

¥57

¥57

¥—

Book value¥5,256¥5,256

Millions of yen
March 31, 2023
Fair value¥5,256¥5,256

Difference
¥—
¥—

¥(0)
¥(0)
¥—
Derivative transactions.....................................
(*1) Since “Cash in hand and in banks,” “Notes and accounts receivable (excluding contract assets),” “Notes
and accounts payable,” “Electronically recorded obligations - operating” and “Short-term borrowings”
are cash, and settled in a short period of time, their fair value approximates the book value. Therefore,
the information has been omitted.
(*2) Shares, etc. whose quoted market price is not available are not included in “Securities and investment
securities.”
Book values of these financial instruments are as follows.
Millions of yen
March 31,2022
2023
Non-listed shares............................................................................................. ¥1,344¥1,305

K I TA N O C O N S T R U C T I O N C O R P.

16

(a) Redemption schedule for money claims and securities with maturities
Millions of yen
March 31, 2022
Due in 1 year orDue after 1 year
Due after 5 years
lessthrough 5 years
through 10 years
Cash in hand and in banks ¥14,906¥—¥—
Notes and accounts
receivable (excluding
contract assets)...................
4,876
—
—
Securities and investment
securities
Government bonds........
6
51
111
Corporate bonds............
——
50

Cash in hand and in banks
Notes and accounts
receivable (excluding
contract assets)...................
Securities and investment
securities
Government bonds........
Corporate bonds............

17

K I TA N O C O N S T R U C T I O N C O R P.

Millions of yen
March 31, 2023
Due in 1 year orDue after 1 year
lessthrough 5 years¥26,132¥—Due after 10
years
¥—

—

—
—

Due after 5 years
through 10 years¥—

Due after 10
years
¥—

3,097

—

—

—

28
—

30
50

104
—

—
—

(b) Matters regarding the breakdown of financial instruments by level of fair value
Fair values of financial instruments are classified into the following three levels according toobservability and significance of inputs for fair value measurement.
Level 1 fair value: Fair value determined using quoted price formed in an active market for the asset or
liability that is subject to the fair value measurement, of observable inputs for fair value measurement
Level 2 fair value: Fair value determined using inputs for fair value measurement other than Level 1
inputs, of observable inputs for fair value measurement
Level 3 fair value: Fair value determined using unobservable inputs for fair value measurement
Financial instruments recorded at fair value in the consolidated balance sheets
Millions of yen
March 31, 2022
Fair Value
Level 1
Level 2
Level 3
Securities and investment
securities
Available-for-salesecurities
Equity securities............ ¥4,584¥—¥—Corporate bonds............
—
49—
Government bonds........
67
99—
Derivative transactions
Currency-related............
—
57
—

Total

¥4,584
49
167
57

Millions of yen
March 31, 2023
Fair Value
Level 1

Level 2

Level 3
Total
Securities and investment
securities
Available-for-salesecurities
Equity securities............ ¥5,047¥—¥—¥5,047
Corporate bonds............
—
49
—
49
Government bonds........
61
97
—
159
Derivative transactions
Currency-related............
—
(0)
—
(0)
(Note) Explanation of valuation techniques and inputs for fair value measurement
Securities and investment securities
Listed shares, government bonds and corporate bonds are valued using quoted prices. Since listed sharesand Japanese government bonds are traded in active markets, their fair values are classified as Level 1 fairvalue. On the other hand, because local government bonds and corporate bonds held by the Company are
infrequently traded in markets and their prices are not deemed as quoted prices in active markets, their fairvalues are classified as Level 2 fair value.
Derivative transactions
Fair values of forward exchange contracts are determined by the discounted present value using
observable inputs such as interest rate and exchange rate, and are classified as Level 2 fair value.

K I TA N O C O N S T R U C T I O N C O R P.

18

9. Investment Securities
	The following tables summarize the acquisition cost and book value of available-for-sale securities withmarket value as of March 31, 2022 and 2023:
Millions of yen
March 31, 2022
Book value
Acquisition cost
Difference
Securities with book value exceedingacquisition cost:
Equity securities..................................................... ¥4,581¥1,988¥2,592
Government bonds.................................................
59
58
0
—
—
—
Corporate bonds.....................................................
Sub-total.............................................................. ¥4,640¥2,046¥2,593
Securities with book value not exceedingacquisition cost:
Equity securities..................................................... ¥2
Government bonds.................................................
108
49
Corporate bonds.....................................................
Sub-total..............................................................
161
Total............................................................................. ¥4,801

Book value
Securities with book value exceedingacquisition cost:
Equity securities..................................................... ¥5,045
Government bonds.................................................
52—
Corporate bonds.....................................................
Sub-total.............................................................. ¥5,097
Securities with book value not exceedingacquisition cost:
Equity securities..................................................... ¥1Government bonds.................................................
106
49
Corporate bonds.....................................................
Sub-total..............................................................
158
Total............................................................................. ¥5,256

19

K I TA N O C O N S T R U C T I O N C O R P.

¥3
108
51
163
¥2,210

¥(0)
(0)
(1)
(1)
¥2,591

Millions of yen
March 31, 2023
Acquisition cost

Difference¥2,00251—¥2,054¥3,0430—¥3,043

¥2
109
50
163
¥2,217

¥(0)
(3)
(1)
(4)
¥3,038

10. Reserve for Retirement Benefits to Employees	Employees of the Company are covered by a defined-benefit corporate pension plan and definedcontribution allowance plan. Employees of its subsidiaries are covered by termination allowance plan ordefined-contribution pension plan.
Defined benefit plans(a) Movements in retirement benefit obligations (except (c) below)
Balance at April 1, 2022.......................................................................................................
Service cost.........................................................................................................................
Interest cost........................................................................................................................
Actuarial loss (gain)..........................................................................................................
Benefits paid.......................................................................................................................
Balance at March 31, 2023..................................................................................................

Millions of yen¥2,077
143
10
(25)
(236)
¥1,969(b) Movements in plan assets (except (c) below)
Balance at April 1, 2022.......................................................................................................
Expected return on plan assets.......................................................................................
Actuarial loss (gain)..........................................................................................................
Contributions paid by the employer................................................................................
Benefits paid.......................................................................................................................
Balance at March 31, 2023..................................................................................................

Millions of yen¥2,990
59
(71)
124
(236)
¥2,865(c) Movements in net defined benefit liability based on the simplified method
Balance at April 1, 2022.......................................................................................................
Retirement benefit costs...................................................................................................
Benefits paid.......................................................................................................................
Balance at March 31, 2023..................................................................................................

Millions of yen
¥65
7
(10)
¥62

(d)	Reconciliation between net defined benefit obligations and plan assets, and net defined benefit liability
and net defined benefit asset
Millions of yen
Funded retirement benefit obligations.............................................................................
¥1,978(2,865)
Plan assets............................................................................................................................
(887)
53
Unfunded retirement benefit obligations.........................................................................
Total net defined benefit liability (asset) at March 31, 2023..........................................
(833)
Net defined benefit liability.........................................................................................
Net defined benefit asset.............................................................................................
Total net defined benefit liability (asset) at March 31, 2023...................................

62
(896)
¥(833)

K I TA N O C O N S T R U C T I O N C O R P.

20

(e) Retirement benefit costs
Service cost...........................................................................................................................
Interest cost..........................................................................................................................
Expected return on plan assets.........................................................................................
Net actuarial loss amortizations........................................................................................
Retirement benefit costs calculated by simplified method............................................
Total retirement benefit costs for the year ended March 31, 2023................................

Millions of yen
¥143
10
(59)
(18)
7
¥83

(f) Remeasurements of defined benefit plans, before tax
Actuarial gains / losses........................................................................................................
Total................................................................................................................................

Millions of yen¥(64)¥(64)(g) Breakdown of items recognized in accumulated other comprehensive income
Unrecognized actuarial differences...................................................................................
Total................................................................................................................................

Millions of yen¥(61)¥(61)(h) Plan assets
Bonds.....................................................................................................................................
Equity securities...................................................................................................................
General accounts.................................................................................................................
Other......................................................................................................................................
Total................................................................................................................................

23%
15%
45%
17%
100%

(i) Long-term expected rate of return
Current and target asset allocations as well as historical and expected returns on various categories ofplan assets have been considered in determining the long-term expected rate of return.
(j) Actuarial assumptions
Discount rate........................................................................................................................
Rate of expected return on plan assets.............................................................................

0.5%
2.0%

(k) Defined contribution plans
Amount of contributions to defined contribution plans by the Company and its subsidiaries was ¥52
million.

21

K I TA N O C O N S T R U C T I O N C O R P.

11. Income Taxes(a)	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets
and deferred tax liabilities are presented below:
Millions of yen
March 31,
2022
2023
Deferred tax assets:
Write-down of fixed assets.................................................................
¥721
¥818
Allowance for doubtful accounts......................................................
22
19
Provision for loss on guarantees.......................................................
—
229
Write-down of marketable securities................................................
216
214
Intercompany profits..........................................................................
171
155
Loss on valuation of real estate for sale...........................................
309
309
Operating tax loss carry forwards (Note)........................................
192
202
Net defined benefit liability................................................................
10
11
509
785
Other.....................................................................................................
Total gross deferred tax assets..................................................
2,155
2,748
Valuation allowance related to operating
tax loss carry forwards (Note).........................................................
(192)
(202)
Valuation allowance related to total(1,415)(1,745)deductible temporary differences, etc............................................
(1,608)(1,947)
Total valuation allowance...........................................................
547
800
Deferred tax liabilities:
Net defined benefit asset....................................................................
(278)
(272)
Reserve for advanced depreciation...................................................
(87)
(87)
Unrealized gain (loss) on available-for-sale securities...................
(770)
(905)
Deferred gain (loss) on hedging derivatives....................................
(17)
—
(543)
(545)
Difference from fair value of subsidiaries........................................
Total gross deferred tax liabilities.............................................
(1,697)(1,811)
Net deferred tax assets (liabilities)............................................

¥(1,150)¥(1,010)(Note) Amount of operating tax loss carry forwards and its deferred tax assets by carryforward period
Millions of yen
March 31, 2023
Due 1 year orDue after 1 year
lessthrough 5 years

Due after 5 years

Operating tax loss
carry forwards (*1)............. ¥14
¥187
¥—
Valuation allowance.............
(14)
(187)
—
Deferred tax assets...............
———*1 The amount of operating tax loss carry forwards is multiplied by statutory tax rate.

Total
¥202
(202)
—

(b)	The reconciliation between the statutory tax rate and the effective tax rate as at March 31, 2022 and 2023
is presented below:
March 31,2022
2023
Statutory tax rate.....................................................................................
30.4%
30.4%
Permanent differences on expenses not deductible.......................
1.4
2.5
Permanent differences on income not taxable................................
(0.3)
(0.3)
Accrued bonuses to directors and statutory
auditors not deductible.....................................................................
0.5
0.4
Inhabitant taxes per capita.................................................................
0.8
0.6
Valuation allowance............................................................................
6.1
9.7
(2.5)
(4.5)
Other......................................................................................................
36.4%
38.8%
Effective tax rate..................................................................................

K I TA N O C O N S T R U C T I O N C O R P.

22

12. Revenue Recognition
1. Information on disaggregation of revenue from contracts with customers
Information on disaggregation of revenue from contracts with customers is as stated in the notes toconsolidated financial statements “Segment Information.”
Information that forms the basis for understanding revenue from contracts with customers
Information that forms the basis for understanding revenue from contracts with customers is as stated in“Notes to Consolidated Financial Statements, 2. Summary of Significant Accounting Policies, (b) Recognizing
revenues and costs of construction contracts.”

2.

3. Information on relation between satisfaction of performance obligations based on contracts withcustomers and cash flows arising from the contracts, and amount and timing of revenue expected to berecognized in and after the fiscal year ending March 31, 2024 from contracts with customers that existed as
at March 31, 2023
(1) Balances of contract assets and contract liabilities, etc.
Millions of yen
March 31,2022
2023
Receivables arising from contracts with customers (Balance at¥4,876
April 1, 2021 and April 1, 2022)..........................................................
¥3,441
Receivables arising from contracts with customers (Balance at
March 31, 2022 and March 31, 2023)..................................................
4,876
3,097
Contract assets (Balance at April 1, 2021 and April 1, 2022).............
16,055
10,567
Contract assets (Balance at March 31, 2022 and March 31, 2023)....
10,567
9,565
Contract liabilities (Balance at April 1, 2021 and April 1, 2022)........
4,749
4,039
Contract liabilities (Balance at March 31, 2022 and March 31,2023)......................................................................................................
4,039
7,942
Of the amount of revenue recognized in the fiscal year ended March 31, 2022, the amount included in thebalance of contract liabilities at April 1, 2021 was ¥4,662 million. The amount of revenue recognized in thefiscal year ended March 31, 2022 from performance obligations that were satisfied (or partially satisfied) inpast periods was ¥919 million.
Of the amount of revenue recognized in the fiscal year ended March 31, 2023, the amount included in thebalance of contract liabilities at April 1, 2022 was ¥3,964 million. The amount of revenue recognized in thefiscal year ended March 31, 2023 from performance obligations that were satisfied (or partially satisfied) inpast periods was ¥364 million.
(2) Transaction price allocated to remaining performance obligations
As of March 31, 2022, performance obligations that have not been satisfied (or partially not beensatisfied) are ¥61,150 million. These performance obligations are related to construction works in theconstruction business. Approximately 89% of them is expected to be recognized as revenue within one year
after the year-end, and remaining approximately 11% is expected to be recognized within two years after
that.
As of March 31, 2023, performance obligations that have not been satisfied (or partially not beensatisfied) are ¥60,056 million. These performance obligations are related to construction works in theconstruction business. Approximately 84% of them is expected to be recognized as revenue within one year
after the year-end, and remaining approximately 16% is expected to be recognized within two years after
that.

23

K I TA N O C O N S T R U C T I O N C O R P.

13. Segment Information(a) The Company and its subsidiaries operate principally in the following 4 industrial segments:
		Construction............. Construction, engineering works, development and solar power generation.
		
Golf courses.............. Management of golf courses
		Hotels......................... Management of hotels
		Advertising agent..... Management of advertising agent(b)	The segment information of the Company and its subsidiaries for the years ended March 31, 2022 and2023 is presented below:
Millions of yen
for the year ended March 31, 2022
Golf
Advertisingcourses
Hotelsagent
Total
Construction
Reconciliations Consolidated
Ⅰ. Net sales and operating income
Net sales
Goods or services
transferred at a¥1,677
point in time
Goods or services
transferred
56,409over a certain
period of time
Revenue fromcontracts with
58,086customers
Other revenue
369
Customers¥58,455
Intersegment or1transfer
Total
58,457
Operating income (loss) ¥2,916

¥234

¥652

¥761

¥3,325¥—¥3,325———

56,409—56,409

234

652

761

59,734—59,734

—
¥234

—
¥652

—
¥761

369
¥60,103

—
¥—

369
¥60,103

4

1

47

55

(55)

—

238
¥15

653
¥(623)809¥58

60,158¥2,366(55)¥27

60,103¥2,394

26

341

11

866

(27)

839

Ⅱ. OtherDepreciation

487

Construction

Millions of yen
for the year ended March 31, 2023
Golf
Advertisingcourses
Hotels
agent

Total

Reconciliations Consolidated

Ⅰ. Net sales and operating income
Net sales
Goods or services
transferred at a¥1,398
point in time
Goods or services
transferred
80,716over a certain
period of time
Revenue fromcontracts with
82,114
customers
Other revenue
376
Customers¥82,491
Intersegment or1transfer
Total
82,492
Operating income (loss) ¥3,868¥272¥1,692¥821¥4,184¥—¥4,184———

80,716—80,716

272

1,692

821

84,901—

84,901—¥272—¥1,692

—
¥821

376
¥85,277

—
¥—

376
¥85,277

9

4

55

70

(70)

—

282
¥46

1,696
¥(94)

876¥81

85,347¥3,900(70)¥30

85,277¥3,931

19

398

10

927

(35)

891

Ⅱ. OtherDepreciation

499

K I TA N O C O N S T R U C T I O N C O R P.

24

14. Per Share Data
Net assets per share and earnings per share for the years ended March 31, 2022 and 2023 are as follows:
Yen
as of / for the year ended March 31,
2022
2023
Net assets per share................................................................................
¥5,966.43¥6,445.68
Earnings per share – primary.................................................................
280.54327.76
1.	Basis of net income per share of common stock for the years ended March 31, 2022 and 2023 is asfollows:
Millions of yen
for the year ended March 31,
2022
2023
Profit attributable to owners of parent.................................................
¥1,739¥1,988
Profit pertaining to common stock.......................................................
¥1,739¥1,988
6,201 thousand
6,065 thousand
Average outstanding shares of common stock....................................
sharesshares2.

Basis of net assets per share of common stock as of March 31, 2022 and 2023 is as follows:
Millions of yen
March 31,2022
2023
Net assets..................................................................................................
¥37,501¥38,861
Amounts deducted from net assets.......................................................
517
543
517
543
Non-controlling interests......................................................................
36,98338,318
Net assets applicable to common stock...............................................
6,198 thousand
5,944 thousand
Number of shares of common stock at end of year............................
sharesshares25

K I TA N O C O N S T R U C T I O N C O R P.

Board of Directors, Statutory Auditors andExecutive Officers
Board of Directors
Chairman and President, Representative Director
		Takahiro Kitano
Directors
		Yoshikatsu Yamazaki

Executive Officers
President and Executive Officer
		 Takahiro Kitano *Senior Executive Officer
		 Yoshikatsu Yamazaki *		Zentaro Ozawa
		Satoshi Kubo

Managing Executive Officer
		 Zentaro Ozawa *Outside Directors
		Yoshinori Uda

Executive Officers

		Fumiko Yazaki

		 Satoshi Kubo *		Mitsuya Minamisawa

Statutory Auditors

		Kenji Yamanaka

Permanent Auditor

		Kazuyoshi Kurashina

		Noboru Takizawa

		Masakatsu Kobayashi
		Shuichi Moriyasu

Outside Auditors

		Yuzuru Maruyama		Yoshichika Owa

		Takeo Murata

		Takashi Nishida

		Masami Aruga

		Kouichi Sakai

		Chihiro Sakamoto
		Tsuyoshi Shiozawa
		Satoru Koyama
		Shu Uehara		Yoshio Matsumoto
		 * : Member of Board of Directors

K I TA N O C O N S T R U C T I O N C O R P.

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