Annual Report 2022

Profile
Since Okumura was established in 1907, our mission has been to contribute to society through ourbusiness under our corporate mottos, “steadfast management” and “sincere operation.”
We will continue to accumulate a wealth of technical expertise and, as a general contractor
company with a harmonious mix of civil engineering and architectural construction, make steadystrides forward in our aim to realize comfortable, safe and secure lives for people, and a sustainable
society as well.

Contents
1
2
4
6
8
10
11

Financial Highlights
To Our Shareholders
Review of Operations
TopicsConsolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income

12
13
14
36
39
40
41

Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
Breakdown of Orders (Nonconsolidated)
Network
Board of Directors / Investor Information

Financial Highlights
Okumura Corporation Annual Report 2022

For the years ended March 31

2020

2021

Consolidated:

2022

2022
Thousands of
U.S. Dollars

Millions of Yen¥226,372¥220,712¥242,459$1,980,709

Operating income

11,517

12,88012,647103,317

Net income attributable to owners of the parent

9,796

10,285

12,542

102,456

Total assets

294,919

329,005

332,349

2,715,044

Total equity

156,112167,964

167,425

1,367,742

Net sales

Per Share:

Yen

U.S. Dollars

Basic net income¥258.01¥271.90¥334.11$2.73

Cash dividends applicable to the year

143.00140.00172.001.41*“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the fiscal period of March 2022. Accordingly, the summaries of business results for the fiscal period of March 2022 represent performance results after applying thesaid accounting standards, etc.
Note:	The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yenat the approximate exchange rate in Tokyo on March 31, 2022, of ¥122.41=$1.

Net Sales

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

250,000

Total Equity(Millions of Yen)

15,000(Millions of Yen)
200,000

200,000

12,000160,000

150,000

9,000

120,000

100,000

6,000

80,00050,0003,000

40,000

0

0

0

2020

2021

2022

2020

2021

2022

2020

2021

2022

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

1

To Our Shareholders

We would like to thank our shareholders for their continuing support and encouragement and wish eachone of them the greatest success in their endeavors.

2

A general overview of our business performance for the fiscal period of March 2022 (April 1,
2021 to March 31, 2022) is provided below.

Results for the Year Ended March 31, 2022
During the period under review, the Japanese economy continued to seesaw under the effects of thenovel coronavirus (COVID-19), with progress made in the roll-out of vaccines on the one hand, while newvariants spread on the other. Amid this, the deterioration of the situation in Ukraine and other factors
contributed to an even greater sense of uncertainty. In this climate, although a certain robustness inconstruction investment was maintained thanks in part to various forms of policy support, increased
competition for orders and the skyrocketing prices of steel and other materials added to the severebusiness environment in the construction industry.
In these circumstances, mainly due to increases in the construction business, the Company’s
consolidated net sales increased 9.9% year on year to ¥242,459 million, which led to an increase of 1.1%
year on year in consolidated gross profit to ¥31,838 million. Consolidated operating income decreased
1.8% year on year to ¥12,647 million, primarily due to increases in selling, general and administrative
expenses, but net income attributable to owners of the parent increased 21.9% year on year to ¥12,542
million, mainly due to an increase in gain on sale of investment securities.

Dividend for the Year Ended March 31, 2022
The Company decided to pay a dividend of ¥172.00 per share (interim dividend of ¥65.00, year-end
dividend of ¥107.00) for the period ended March 31, 2022 based on its basic policy regarding profit
sharing.
The Company has reviewed its shareholder return policy for next fiscal year and beyond due tothe need to balance active investments for the realization of its “Vision toward 2030” with steady profit
sharing with our shareholders.

Medium Term Business Plan
The outlook for the Japanese economy is expected to follow a moderate path to recovery, underpinnedby policy support measures, albeit it with some fluctuation caused by the impact of COVID-19. However,the sense of uncertainty due to the course of the pandemic and geopolitical risks remains strong, and theOkumura Corporation Annual Report 2022

3

unpredictable situation is likely to continue. In the construction industry, construction investment is
expected to remain firm, particularly in the public sector, but there are concerns about even further rises
in construction costs, and the business environment is likely to become even more severe.
Under these circumstances, the Okumura Group will continue to contribute to thesustainable development of society through the long-term continuation of our business into the
future, amid accelerating changes in the business environment and increasingly diverse social needs.
As the second step toward the realization of our “Vision toward 2030,” we have formulated our
Medium Term Business Plan (FY2022-FY2024). While following the same basic policies for businessstrategies upheld in the previous Medium Term Management Plan, we intend to deepen the efforts
we have made to date even further.
Specifically, we will pursue the “enhancement of corporate value” by improving our productivity
and technological advantage through operational reforms and the promotion of strategic technologicaldevelopments and digital transformation (DX), and the reinforcement of ESG/SDG initiatives, as well as
the “expansion of business domains” by further expanding our real estate business and new businesses
and building the foundations for our overseas business. Further, we will continue with our efforts to“leverage our human resources” by promoting work style reform, giving our diverse people, who
underpin our business strategies, the opportunity to flourish, and promoting initiatives to strengthen
staff education.
Under the Medium Term Business Plan, we will undertake initiatives for business activities and
ESG/SDGs by reflecting measures to solve sustainability-related issues in the Plan. We declared ourendorsement of the Task Force on Climate-Related Financial Disclosures (TCFD) in April 2022, and we willfurther strengthen our efforts toward the realization of a sustainable society.
The Company looks forward to the continued support and guidance of our shareholders.
June 2022

Takanori Okumura
President and Representative Director

Review of Operations
CIVIL ENGINEERING
Major Projects Completed

4

Hirayama Elevated Bridge on the Kyushu Shinkansen Bullet
Train’s West Kyushu Route

Hokuriku Shinkansen Bullet Train’s Shin-Hokuriku Tunnel(Kashimagari), etc.

Work period: January 2017 to May 2021
Bridge length (5 RC girders): 75 m
Elevated bridge length: 476 m (5-grider rigid-frame elevated bridge: 210 m,
18-girder elevated bridge: 266 m)

Work period: March 2016 to November 2021
Tunnel: 2,130 m, NATM, inclined shaft: 284 m, 1 reinforced soil abutment,
subgrade: 47 m, buffer work: 1 set

Expansion Work of the Heisaka Final Disposal Site

Construction Work of Joint General Final Disposal Site

Work period: October 2017 to June 2021
Expansion of final disposal site, land development of the new landfill site,(cut and fill volume of 805,361 m3 and foundation work over existing waste),
expansion of disaster prevention reservoir (retaining wall work, revetment
work, etc.), rainwater drainage work (rainwater drainage gutter, pipe andculvert work, and slope drainage work), road construction (cut volume:
97,292 m3, fill volume: 23,218 m3), collection and drainage pipework(groundwater drainage piping, leakage collection and drainage piping),
work on leachate treatment facility (concrete water tank volume: 14,061 m3,
plant construction: 1 set), leakage containment work

Work period: August 2019 to February 2022
Area of project zone: approximately 69,000 m2, development area:
approximately 38,000 m2, land development work, storage structure work,
insulation facility work, leakage containment work, groundwater collection
and drainage work, work on leachate water collection and drainage facility,
bottom surface protective soil, work on flood control reservoir, work on
rainwater collection and drainage facility, road facility work, gate andenclosure work, work on leachate treatment facility, etc.

Orders Received
North Part of Tokai-Kanjo
Expressway’s Yoro Tunnel

Fukushima Sendatsuyama Solar
Power Plant

Work period: August 2021 toNovember 2025
Construction length: 2,665 m on northside of the total 4,730 m

Work period: November 2021 to July
2024
Development area: 97.2 ha, landdevelopment area: 57.6 ha, reservoirs:
4, cut volume: 4,280,000 m3, fillvolume: 4,620,000 m3

Taiwan Power Company’s Tunnel
from Datan to Meihu (2nd WorkArea)

FY 2021 Bridge Substructure
Work of South Part of Sasebo
Elevated Bridge on Sasebo Road

Work period: June 2021 to November
2024
Construction length: 1,890 m, finishedinternal diameter: 3.9 m, TBM: 1 machine,
launching and retrieval shafts, soil
improvement: 1 set

Work period: February 2022 to August2024
10 bridge piers, foundation work(offshore: 4 steel pipe sheet-pilefoundations, overland: 2 caisson piles)

Okumura Corporation Annual Report 2022

BUILDINGS
Major Projects Completed

5Landport Koshigaya

Manazuru-kai Medical Corporation’s Kokura Daiichi HospitalWork period: February 2019 to May 2021
Structure: RC and steel
Total floor space: 31,980.95 m2

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

Wakayama-Jo Hall

Toyoshikidai Apartment Complex

Work period: July 2019 to December 2021
Structure: SRC (partially steel and RC)
Total floor space: 14,279.86 m2

Work period: February 2020 to February 2022
Structure: RC
Stories above ground: 8
Total units: 142

Orders Received
GLP ALFALINK Nagareyama 5th
and 6th Projects
Work period: May 2021 to January
2023
Structure: PC and steel
Total floor space: 225,301.42 m2

Development/operation project forcross-jurisdictional combustible waste
treatment facility in Okayama City
Work period: March 2022 to March
2027
Structure: Steel, SRC and RC
Total floor space: 9,269.5 m2

New Building of Setsunan
University’s Neyagawa Campus

New Building of Sano City
Hospital

Work period: August 2021 to January
2023
Structure: Steel
Total floor space: 12,159 m2

Work period: March 2022 to February
2024
Structure: Steel
Total floor space: 9,567.92 m2

Topics
Improvement of Automatic Drilling System for Small-diameter Holes,
and its Application to Actual Construction Work

6

Okumura has improved an automatic drilling system for smalldiameter holes, which it had developed to reduce labor and improve
efficiency in drilling work of the wall expansion method using postconstruction anchors, a method for reinforcing existing RC structures,and used it for an actual construction project for the first time. The
Company confirmed that the system has the prescribed performance.
The conventional system has been modified with a motor thatdrives the system along a floor-mounted rack gear rail, making it
possible to automate the entire process from moving to the drilling
position to drilling according to the drilling plan (drilling position,

depth, and number of holes to be drilled). The Company applied thisto an actual construction project and confirmed that the system candrill approximately 400 holes in two days (approximately 200 holes foreach diameter) according to a set drilling plan and automaticallyrecord the construction data.
Going forward, Okumura will actively propose this system as atechnology that contributes to labor-saving and improved efficiency inreinforcement work of existing RC structures, as well as to improve
productivity through mechanization and automation at construction sites.

Photo courtesy of Bureau of Sewerage,
Tokyo Metropolitan Government

Photo courtesy of Bureau of Sewerage,
Tokyo Metropolitan Government

Control cabinet
Dust collector

Control cabinet

Power hammer
drill

WheelsWheelsRack gears

Traveling
direction

Automatic Drilling System for Small-diameter Holes

Automatic drilling in action

Demonstration Started for Japanese Puffer Aquaculture(Closed Land-based Recirculating Aquaculture)
To enter the closed recirculating land-based aquaculture business, notable for its
small environmental footprint and location independence, Okumura hasconstructed a land-based farming experiment building equipped with two 20-ton
cultivating tanks and four 4-ton cultivating tanks within the Okumura TechnicalResearch Institute in Tsukuba City, Ibaraki. We have started demonstration on
land-based aquaculture technology.
The 20-ton tanks are designed for comparative verification of different
filtration systems, with the first experiment being a comparative growthexperiment on Japanese puffers. The 4-ton tanks are designed for multi-purpose
use, such as aquaculture experiments of various fish species. Each tank isequipped with a system that constantly monitors and records the state of thetank with sensors for water quality and oxygen concentration, as well as
surveillance cameras. The system also has an alert feature that enables immediate
response in the event of power outages or water quality problems.
Through these demonstration experiments, we will verify the feasibility ofcommercialization and aim at establishing water purification technology that can
provide synergies with its core business.
Okumura will continue to promote not only the establishment of water
purification technology and a sustainable aquaculture business, but also job
creation and industrial development in regional areas, to ensure both the safe andsecure life of people and preservation of a beautiful, rich marine environment,
and ultimately, to achieve SDG number 14, “Life below water.”

Inside of the land-based aquaculture experiment building

Japanese puffer breeding

Okumura Corporation Annual Report 2022

Works of Paralym Artists Displayed at Offices and Construction Sites
Around Japan
Paralym Art (Shogaisha Jiritsu Suishin
Kikou Association)

As part of its efforts to contribute to the SDGs, Okumura has signed an official
partnership agreement with the Minato-ku, Tokyo-based Shogaisha Jiritsu
Suishin Kikou Association (Representative Director: Ryo Nakai) to support
people with disabilities to live independent lives through the organization’s
Paralym Art program. Works created by artists with disabilities who are
registered with Paralym Art are displayed at 30 locations around Japan,
including Okumura’s offices and on temporary fencing at its construction sites.
We will continue to help people with disabilities participate in society andgain financial independence through our ongoing support of this program.

Paralym Art is a program for artists with disabilities that was launchedin 2007. Its philosophy is to create a world where people withdisabilities can make their dreams come true with art. It has around710 registered artists (as of March 2022) all over Japan andundertakes initiatives with more than 200 companies every year.
Official website: https://paralymart.or.jp/association/

Paralym Art works on display

Railway construction site (Miyagi Prefecture)

Condominium construction site (Tokyo)

Tokyo Head Office (Tokyo)

Construction site of a local government building (Kagoshima Prefecture)

Sponsorship of Osaka Women’s Marathon
Okumura sponsored the 41st Osaka Women’s Marathon held on January
30, 2022. The Company has supported female athletes as a sponsor of thisevent since 2018 because we empathize with the athletes, as we identify
the images of the athletes dedicated to the race with those of our own
employees determined to work on a construction project to achieve thegoal of successful completion by overcoming difficulties with supports
from various people. Another reason is the Company’s efforts to contributeto its hometown of Osaka and to promote the participation andadvancement of women through its business. Through its ongoingsponsorship of the Osaka Women’s Marathon, the Company will continue
to bring excitement to the streets of Osaka and to support female athletes
as they take flight from Osaka out into the world.
Photo courtesy: SANKEI SHIMBUN CO., LTD.

7

Consolidated Balance Sheet
Okumura Corporation and Consolidated Subsidiaries
March 31, 2022

ASSETS

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2022

2021

2022

¥ 31,622¥ 20,130$  258,330

1,534

1,483

12,531

—

123

—

1,723

5,547

14,076

133,967

137,249

1,094,412

Current assets:
Cash and cash equivalents (Note 14)
Time deposits (Notes 14 and 16)
Marketable securities (Notes 4 and 14)

8

Receivables:
Trade notes (Note 14)
Trade accounts (Note 14)
Unconsolidated subsidiaries and associated companies (Note 14)

6,618

661

54,066

Other

10,03010,67081,935

Allowance for doubtful receivables (Note 14)
Inventories (Note 5)

(152)

(153)

(1,243)

5,466

9,942

44,649Prepaid expenses and other

1,207

1,443

9,861

Total current assets

192,015

187,095

1,568,617

Property, plant and equipment (Notes 6 and 7):
Land (Note 16)

34,66734,406283,203

Buildings and structures (Note 16)

15,273

15,760124,768

Machinery and equipment

807

1,264

6,591

Furniture and fixtures

387

415

3,163

Lease assets (Note 13)
Construction in progress
Total property, plant and equipment

2

2

17

22,24015,968

181,687

73,376

67,815599,429

56,415

67,127

460,868

Investments and other assets:
Investment securities (Notes 4, 14 and 16)
Investments in and advances to unconsolidated subsidiaries and associated companies (Notes 14 and 16)

318

329

2,596

Long-term loans receivable (Note 14)

14

16

115

Asset for retirement benefits (Note 8)

5,077

4,974

41,475

3

4

27

408

438

3,335

Deferred tax assets (Note 10)
Goodwill
Other assets

6,679

3,176

54,563

Allowance for doubtful receivables (Note 14)(1,956)(1,969)(15,981)

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

66,95874,095546,998¥332,349¥329,005$2,715,044

Okumura Corporation Annual Report 2022

LIABILITIES AND EQUITY

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2022

2021

2022

¥  9,481¥  7,460$   77,452

Current liabilities:
Short-term bank loans including current portion of long-term debt (Notes 7, 13 and 14)
Payables:Trade notes (Note 14)

2,460

1,949

20,093

Trade accounts (Note 14)

48,86945,090399,226

575

942

4,696

Advances received on construction projects in progress

11,537

15,713

94,248

Income taxes payable

1,656

4,523

13,530

540

462

4,412

Other

Allowance for warranty work on construction projects

973

863

7,952

Deposits received (Note 16)

25,61024,562

209,219

Suspense receipt of consumption taxes

18,051

16,119147,461

Other

7,059

6,498

57,664

126,811

124,181

1,035,953

5,114

7,115

41,775

Allowance for losses on construction contracts

Total current liabilities
Long-term liabilities:
Long-term debt (Notes 7, 13,14 and 15)
Non-recourse loans (Notes 7, 14, 15 and 16)

21,063

16,228172,066

Deferred tax liabilities (Note 10)

11,65912,431

95,243

277

1,086

2,265

Other
Total long-term liabilities

38,11336,860311,349

Total liabilities

164,924

161,041

1,347,302

19,83919,839162,069

Commitments and contingent liabilities (Note 16)

Equity (Notes 9, 17 and 18):
Common stock
authorized, 96,000,000 shares; issued, 39,665,226 shares
Capital surplus

26,24026,240214,365

Retained earnings

101,711

95,460830,901(8,062)(4,637)(65,860)

Unrealized gain on available-for-sale securities

24,66630,958201,500

Deferred gain (loss) on hedges

1,099

(475)

8,980

Defined retirement benefit plans

1,465

1,753

11,96927,23032,236

222,449467(1,174)

3,818

Total equity

167,425

167,964

1,367,742

Total¥332,349¥329,005$2,715,044

Treasury stock—at cost
2,892,468 shares in 2022 and 1,838,723 shares in 2021
Accumulated other comprehensive income (loss):

Total
Noncontrolling interests

9Consolidated Statement of Income
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2022

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2022

2021

2022

¥242,459
210,62131,838¥220,712
189,232
31,480$1,980,709
1,720,616
260,093

Selling, general and administrative expenses (Note 12)
Operating income

19,191
12,647

18,60012,880156,776
103,317

Other income (expenses):
Interest and dividend income
Interest expense
Gain on sale of investment securities
Other—net
Other income —net

1,240
(394)
3,201
508
4,555

1,213
(366)
429
744
2,020

10,131(3,215)
26,148
4,148
37,212

Income before income taxes

17,202

14,900140,529

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

4,225
964
5,189

5,802
(550)
5,252

34,513
7,875
42,38812,013(529)¥ 12,542

9,648
(637)
¥ 10,285

98,141(4,315)$  102,456

Yen

U.S. Dollars(Note 1)

¥ 271.90
140.00$ 2.73
1.41

Net sales
Cost of sales
Gross profit

10

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

Per share of common stock (Notes 2.p and 18):
Basic net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

¥ 334.11
172.00Consolidated Statement of Comprehensive Income
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2022

Net income
Other comprehensive income (loss) (Note 17):
Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on hedges
Defined retirement benefit plans
Total other comprehensive income (loss)
Comprehensive income
Total comprehensive income (loss) attributable to:
Owners of the parent
Noncontrolling interests
See notes to consolidated financial statements.

Okumura Corporation Annual Report 2022

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2022

2021

2022

¥12,013¥ 9,648$ 98,141(6,292)
3,149(287)(3,430)¥ 8,583

7,724(1,043)388
7,069¥16,717(51,401)
25,724(2,348)(28,025)$ 70,116¥ 7,537
1,046¥17,876(1,159)$ 61,569
8,547

11

Consolidated Statement of Changes in Equity
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2022

Thousands

Millions of Yen
Accumulated othercomprehensive income (loss)

Number ofshares ofcommonstock
outstanding

12

BALANCE, APRIL 1, 2020
Net income attributable to owners of the parent
Cash dividends, ¥139 per share
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock*
Net change in the year
BALANCE, MARCH 31, 2021 (APRIL 1,
2021, as previously reported)
Cumulative effect of accounting change
BALANCE, APRIL 1, 2021 (as restarted)
Net income attributable to owners of the parent
Cash dividends, ¥168 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2022

Commonstock

Unrealized
gain onDefinedavailable- Deferred retirement
Capital Retained Treasury
for-sale gain (loss)
benefit Noncontrolling
surplus earnings
stock securities on hedges
interests
plans

37,828
—
—
(1)
0
—
—

¥19,839 ¥26,248 ¥105,554 ¥(19,761) ¥23,234—— 10,285————(5,258)
—
—
—
—
—
(5)
—
—
(0)
—
0
—
—
(8) (15,121) 15,129
—
—
—
—
—
7,724

37,827

19,839—37,827——(1,054)0—36,773Total
equity

¥46
—
—
—
—
—
(521)

¥1,365
—
—
—
—
—
388

¥ (413) ¥156,112—
10,285—(5,258)
—
(5)
—
0
—
—
(761)
6,830

30,958

(475)

1,753

(1,174)——64——
19,839 26,240 95,524 (4,637) 30,958—— 12,542———— (6,355)————— (3,425)
—
—
0
—
0
—
—
—
—
— (6,292)¥19,839 ¥26,240 ¥101,711 ¥ (8,062) ¥24,666

—
(475)
—
—
—
—
1,574
¥1,09926,24095,460(4,637)

167,964——
64
1,753 (1,174) 168,028——
12,542——(6,355)——(3,425)
—
—
0
(288)
1,641
(3,365)¥1,465 ¥   467 ¥167,425

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

Commonstock

BALANCE, MARCH 31, 2021 (APRIL 1,
2021, as previously reported)
Cumulative effect of accounting change
BALANCE, APRIL 1, 2021 (as restarted)
Net income attributable to owners of the parent
Cash dividends, $1.37 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2022

Unrealized
gain onDefinedavailable- Deferred retirement
Capital Retained Treasury
for-sale gain (loss)
benefit Noncontrolling
surplus earnings
stock securities on hedges
interests
plans

Total
equity$162,069 $214,364 $779,839 $(37,878) $252,901$(3,882) $14,318$(9,588) $1,372,143

—
—
520
—
—
162,069 214,364 780,359 (37,878) 252,901—— 102,456———— (51,914)————— (27,984)
—
—
1
—
2
—
—
—
—
— (51,401)$162,069 $214,365 $830,901 $(65,860) $201,500——(3,882) 14,318
—
—
—
—
—
—
—
—
12,862(2,349)$ 8,980 $11,969—
520(9,588) 1,372,663—
102,456—(51,914)—(27,984)—3
13,406(27,482)$ 3,818 $1,367,742

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

Consolidated Statement of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2022

Okumura Corporation Annual Report 2022

Millions of Yen

Thousands of
U.S. Dollars(Note 1)

2022

2021

2022

¥17,202¥ 14,900$140,529(6,994)
1,804
30(3,284)1,777
30(57,138)
14,735
243

1,125
2,261
2,215
4,932
(4,176)
(517)
407
1,087
18,289(21,673)
536
(211)
(776)
3,114
(347)
5,958
(14,876)
24

9,194
18,47318,09940,292(34,117)(4,226)
3,326
8,881
149,410Investing activities:
Net decrease in time deposits
Payments for purchases of securities
Proceeds from sales of securities
Purchases of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Collection of loans receivable
Other—net
Net cash used in investing activities

39
(136)
5,192
(7,912)1
35
26(2,755)

523
(111)
1,082
(10,507)
4
151
(105)
(8,963)319(1,111)42,415(64,636)4
289
215(22,505)

Financing activities:
Decrease in short-term bank loans—net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from non-recourse loans
Repayments of non-recourse loans
Purchase of treasury stock
Disposal of treasury stock
Dividends paid
Proceeds from share issuance to noncontrolling shareholders
Other—net
Net cash provided by (used in) financing activities

(31)
—
(2)
4,927
(93)
(3,256)1(6,350)595(1)(4,210)

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

(252)
—
(16)
40,251(759)(26,598)3(51,872)4,859(6)(34,390)168
11,492
20,130¥31,62288(7,128)27,258¥ 20,130

1,368
93,883
164,447$258,330

Operating activities:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Changes in assets and liabilities:
Decrease (increase) in trade notes and accounts receivable
Decrease in accumulated costs of construction projects in progress
Decrease (increase) in other inventories
Increase (decrease) in trade notes and accounts payable
Increase (decrease) in advances received on construction projects in progress
Increase in asset for retirement benefits
Other—net
Total adjustments
Net cash provided by 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 Consolidated Financial Statements
Okumura Corporation and Consolidated Subsidiaries
Year Ended March 31, 2022

14

1. Basis of Presentation of Consolidated Financial
Statements
The accompanying consolidated financial statements havebeen prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its
related accounting regulations and in accordance withaccounting principles generally accepted in Japan, which are
different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
In preparing these consolidated financial statements,
certain reclassifications and rearrangements have been madeto the consolidated financial statements issued domesticallyin order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications
have been made in the 2021 consolidated financial statements to conform to the classifications used in 2022.
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 ¥122.41 to$1, the approximate rate of exchange at March 31, 2022.
Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S.
dollars at that or any other rate.
2. Summary of Significant Accounting Policies
a. Consolidation — The consolidated financial statements
as of March 31, 2022, include the accounts of the Company
and its 4 (3 in 2021) significant subsidiaries (together, the“Group”). HIRATA BIO ENERGY GODO KAISHA was established on January 17, 2022 and newly consolidated for theyear ended March 31, 2022.
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated, andthose companies over which the Group has the ability to
exercise significant influence are accounted for by the equity
method.
Investments in 9 (9 in 2021) unconsolidated subsidiaries
and 6 (6 in 2021) associated companies are stated at cost. If
the equity method of accounting had been applied to theinvestments in these companies, the effect on the accompanying consolidated financial statements would not be material.
The excess of the cost of acquisition over the fair valueof the net assets of an acquired subsidiary at the date ofacquisition is amortized over a period of 17 years.
All significant intercompany balances and transactions
have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within theGroup is also eliminated.
b. Business Combinations — Business combinations areaccounted for using the purchase method. Acquisitionrelated costs, such as advisory fees or professional fees, areaccounted for as expenses in the periods in which the costs
are incurred. If the initial accounting for a business combination is incomplete by the end of the reporting period inwhich the business combination occurs, an acquirer shallreport in its financial statements provisional amounts for theitems for which the accounting is incomplete. During themeasurement period, which shall not exceed one year fromthe acquisition, the acquirer shall retrospectively adjust theprovisional amounts recognized at the acquisition date toreflect new information obtained about facts and circumstances that existed as of the acquisition date and that would
have affected the measurement of the amounts recognized
as of that date. Such adjustments shall be recognized as if
the accounting for the business combination had been completed at the acquisition date. The acquirer recognizes any
bargain purchase gain in profit or loss immediately on theacquisition date after reassessing and confirming that all of
the assets acquired and all of the liabilities assumed havebeen identified after a review of the procedures used in thepurchase price allocation. A parent’s ownership interest in a
subsidiary might change if the parent purchases or sells ownership interests in its subsidiary. The carrying amount of noncontrolling interest is adjusted to reflect the change in theparent’s ownership interest in its subsidiary while the parent
retains its controlling interest in its subsidiary. Any difference
between the fair value of the consideration received or paid
and the amount by which the noncontrolling interest is
adjusted is accounted for as capital surplus as long as theparent retains control over its subsidiary.
c. Cash Equivalents — Cash equivalents are short-term
investments that are readily convertible into cash andexposed to insignificant risk of changes in value.
Cash equivalents include time deposits, certificates ofdeposit and commercial paper, all of which mature or
become due within 3 months of the date of acquisition.
d. Inventories — Construction projects in progress are stated at cost, determined by the specific identification method.
Real estate held for sale and development projects inprogress are stated at the lower of cost, determined by the
specific identification method, or net selling value, which isdefined as the selling price less additional estimated manufacturing costs and estimated direct selling expenses.
e. Marketable and Investment Securities — Marketable
and investment securities are classified and accounted for,depending on management’s intent, as follows:(1) held-to-maturity debt securities, for which there is a positive intent and ability to hold to maturity, are reported atamortized cost; and(2) available-for-sale securities, which are not classified as
held-to-maturity are reported at fair value, with unrealized
gains and losses, net of applicable taxes, reported in a separate component of equity.
Nonmarketable available-for-sale securities, which do
not have a market price, are stated at cost determined by themoving-average method. For other-than-temporary declines
in fair value, investment securities are reduced to net realizable value by a charge to income.
Investments in limited partnerships, which are considered securities under Article 2, Clause 2 of the Japanese
Financial Instruments and Exchange Act, are recorded underthe equity method and based on the latest consolidated
financial statements available on the reportable date ruled by
the partnership contracts.

Okumura Corporation Annual Report 2022

f. Property, Plant and Equipment — Property, plant andequipment are stated at cost. Depreciation, except for leaseassets, is computed by the declining-balance method basedon the estimated useful lives of the assets, while the straightline method is applied to buildings acquired on or after April
1, 1998 and building improvements and structures acquiredon or after April 1, 2016, and lease assets. The range of useful lives is principally from 3 to 60 years for buildings andstructures, from 4 to 17 years for machinery and equipment,
and from 2 to 15 years for furniture and fixtures. Lease assets
under finance lease arrangements are depreciated using thestraight-line method over the terms of the respective leases
without any salvage value.
Accumulated depreciation totaled ¥1 8,1 4 4 million($148,225 thousand) and ¥16,685 million as of March 31,
2022 and 2021, respectively.
g. Long-Lived Assets — The Group reviews its long-lived
assets for impairment whenever events or changes in circumstance indicate the carrying amount of an asset or asset
group may not be recoverable. An impairment loss is recognized if the carrying amount of an asset or asset groupexceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss
would be measured as the amount by which the carrying
amount of the asset exceeds its recoverable amount, which is
the higher of the discounted cash flows from the continued
use and eventual disposition of the asset or the net selling
price at disposition.
h. Allowance for Doubtful Receivables — The allowancefor doubtful receivables is stated in amounts considered to beappropriate based on the Group’s past credit loss experienceand an evaluation of estimated losses in the receivables outstanding.
i. Allowance for Warranty Work on Construction
Projects — The allowance for warranty costs for completed
work is provided at the amount of warranty costs based on
past loss experience.
j. Allowance for Losses on Construction Contracts — An
allowance for losses on construction contracts is provided
with respect to construction projects for which eventual losses are reasonably expected and estimated.
k. Employees’ Retirement Benefits — The Company has acontributory funded pension plan covering substantially all of
its employees.
The Company accounts for the liability for retirement
benefits based on the projected benefit obligations and plan
assets at the balance sheet date. The projected benefit obligations are attributed to periods on a benefit formula basis.
Actuarial gains and losses and past service costs that are yet
to be recognized in profit or loss are recognized within equity(accumulated other comprehensive income), after adjustingfor tax effects, and are recognized in profit or loss over 10
years but no longer than the expected average remaining service period of the employees.

l. Asset Retirement Obligations — An asset retirement
obligation is recorded for a legal obligation imposed either by
law or contract that results from the acquisition, construction, development and normal operation of a tangible fixed
asset and is associated with the retirement of such tangible
fixed asset. The asset retirement obligation is recognized as
the sum of the discounted cash flows required for the future
asset retirement and is recorded in the period in which the
obligation is incurred if a reasonable estimate can be made. If
a reasonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation isincurred, the liability should be recognized when a reasonable estimate of the asset retirement obligation can be made.
Upon initial recognition of a liability for an asset retirement
obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset by theamount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over theremaining useful life of the asset. Over time, the liability is
accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original estimateof undiscounted cash flows are reflected as an adjustment tothe carrying amount of the liability and the capitalized
amount of the related asset retirement cost.
m. Construction Contracts — Regarding the construction
business, the primary business of the Group, the Group recognizes revenue when control of a promised good or service
is transferred to a customer.
The performance obligations for construction contracts
in the construction business are mainly construction anddelivery of buildings, etc. When control of a good or service
is transferred to a customer over time, the Group recognizes
revenue over time as the performance obligation is satisfied
by transferring a promised good or service to a customer. The
progress toward complete satisfaction of a performance obligation is measured based on the proportion of construction
costs incurred by the end of the reporting period to the total
expected construction costs.
In some circumstances such as the first stage of a contract, if the Group may not be able to reasonably measure
the progress toward complete satisfaction of a performanceobligation but expect to recover the costs, the Group applies
the cost recovery method.
Regarding construction contracts whose periods are very
short from the initial transaction date of the contract to the
expected date of completely satisfying performance obligations, the Group does not recognize revenue over time, but
recognizes revenue when the performance obligations are
satisfied completely (the time of completing and delivering
constructions).
n. Income Taxes — The provision for income taxes is computed based on the pretax income included in the consolidated statement of income. The asset and liability approach isused to recognize deferred tax assets and liabilities for the
expected future tax consequences of temporary differences
between the carrying amounts and the tax bases of assets
and liabilities. Deferred taxes are measured by applying currently enacted income tax rates to the temporary differences.

15

16

o. Derivatives and Hedging Activities — The Group uses
derivative financial instruments to manage its exposures tofluctuations in foreign exchange and interest rates. Foreign
currency forward contracts are utilized by the Group to
reduce foreign currency exchange rate risks on foreign currency denominated trade payables for imported materials. In
addition, interest rate swaps are utilized by the Group to
reduce interest rate risks on long-term loans. The Group does
not enter into derivatives for trading or speculative purposes.
Interest rate swaps that qualify for hedge accounting
and meet specific matching criteria are not remeasured atmarket value, but the differential paid or received under theswap agreements is recognized and included in interest
expense or income.
p. Per Share Information — Basic net income per share iscomputed by dividing net income attributable to commonshareholders by the weighted-average number of commonshares outstanding for the period, retroactively adjusted forstock splits.
Diluted net income per share is not disclosed because
there are no securities with a dilutive effect upon exercise orconversion into common stock.
Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicable to the respective fiscal years, including dividends to be
paid after the end of the year, retroactively adjusted for stock
splits.
q. Accounting Policy Disclosures, Accounting Changes
and Error Corrections — Under ASBJ Statement No. 24,“Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections,” and ASBJ
Guidance No. 24, “Guidance on Accounting Standard for
Accounting Policy Disclosures, Accounting Changes and Error
Corrections,” accounting treatments are required as follows:(1) Changes in Accounting Policies:
When a new accounting policy is applied following revisionof an accounting standard, the new policy is applied retrospectively unless the revised accounting standard includes
specific transitional provisions, in which case the entity shallcomply with the specific transitional provisions.
(2) Changes in Presentation:
When the presentation of financial statements is changed,
prior-period financial statements are reclassified in accordance with the new presentation.
(3) Changes in Accounting Estimates:
A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only,
and is accounted for prospectively if the change affects boththe period of the change and future periods.
(4) Corrections of Prior-Period Errors:
When an error in prior-period financial statements is discovered, those statements are restated.
r. Accounting policies and procedures which are adopted when the provisions of the relevant accounting
standards are not clear
Accounting for works by joint ventures formed, in order totake orders and carry out the works jointly with several constructors, are incorporated in the consolidated financial statements according to the proportion of investment equities.

s. Accounting Changes
Application of Accounting Standard for Revenue
Recognition, etc.
The Group has applied ASBJ Statement No. 29, “AccountingStandard for Revenue Recognition” (March 31, 2020; hereinafter the “Revenue Recognition Standard”) and others fromthe beginning of the fiscal year ended March 31, 2022. The
Group recognizes revenue when control of promised goods
or services is transferred to a customer in an amount thatreflects the consideration to which the Group expects to beentitled in exchange for those goods and services.
Regarding the construction business, the primary business of the Group, the Company used to apply the percentage-of-completion method for works for which the outcomeof the construction activity is deemed certain while applying
the completed contract method for other construction contracts including those that were commenced before March
31, 2009. For the works whose control of goods or services istransferred to a customer over time, however, the Group haschanged its method to recognize their revenue over time as
the performance obligations for goods or services are satisfied. The progress toward complete satisfaction of a performance obligation is measured based on the proportion of
construction costs incurred by the end of the reporting period
to the total expected construction costs. In some circumstances such as the first stage of a contract, the Group may
not be able to reasonably measure the progress toward complete satisfaction of a performance obligation but expect torecover the costs. In those circumstances, the Group applies
the cost recovery method. The Group has applied an alternative treatment for construction contracts whose periods arevery short from the initial transaction date of the contract tothe expected date of completely satisfying performance obligations. Specifically, the Company does not recognize revenue for those contracts over time but recognizes revenue
when the performance obligations are satisfied completely(the time of completing and delivering constructions).
The Group applies the Revenue Recognition Standard,
etc. in accordance with the transitional treatment provided
for in the proviso to Paragraph 84 of the Revenue
Recognition Standard. The cumulative impact of retrospectively applying the new accounting policies to prior periods isadjusted to retained earnings at the beginning of the fiscal
year ended March 31, 2022, with the new accounting policies applied from the beginning balance of the fiscal year
ended March 31, 2022. However, the Group applies themethod provided for in Paragraph 86 of the Revenue
Recognition Standard and does not apply the new accounting policies retrospectively to contracts for which substantially
all revenue amounts has been recognized prior to the beginning of the fiscal year ended March 31, 2022, in accordancewith the previous treatment. In addition, applying the method stipulated in proviso (1) to Paragraph 86 of the Revenue
Recognition Standard, contract modifications that occurredprior to the beginning of the fiscal year ended March 31,
2022 were accounted for based on the terms of the contract
after reflecting all contract modifications, with the cumulative
impact adjusted to retained earnings at the beginning of the
fiscal year ended March 31, 2022.
As a result, these changes have had an immaterial
impact on operating income, ordinary income, income before
income taxes, and net assets per share and net income pershare of the fiscal year ended March 31, 2022. SinceOkumura Corporation Annual Report 2022

cumulative effects are reflected on the net assets at the
beginning of the fiscal year ended March 31, 2022, thebeginning balance of retained earnings in the consolidated
statement of changes in equity increased by ¥64 million($520 thousand).
In accordance with the transitional measures set forth inParagraph 89-3 of the Revenue Recognition Standard, a noteon revenue recognition for the fiscal year ended March 31,
2021 is not stated.
Application of Accounting Standard for Fair Value
Measurement, etc.
The Group has applied ASBJ Statement No. 30, “AccountingStandard for Fair Value Measurement” (July 4, 2019; hereinafter “Fair Value Measurement Standard”), etc. from the
beginning of the fiscal year ended March 31, 2022, and willprospectively apply the new accounting policies stipulated by
the Fair Value Measurement Standard, etc. in accordancewith the transitional treatment provided in Paragraph 19 of
the Fair Value Measurement Standard and Paragraph 44-2 ofthe “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). These changes do not affectthe consolidated financial statements. In addition, the Group
includes notes on fair value information by level within thefair value hierarchy under Note 14 “Financial Instruments andRelated Disclosures.”
However, in accordance with the transitional treatment
set forth in paragraph 7-4 of the “Implementation Guidance on
Disclosures of fair value of Financial Instruments” (ASBJ GuidanceNo. 19, July 4, 2019), the note does not include matters regarding the fiscal year ended March 31, 2021.
t. New Accounting Pronouncements
Implementation Guidance on Accounting Standard for
Fair value Measurement” (ASBJ Guidance No. 31, June17, 2021)
ASBJ Guidance No. 31 provided a treatment on the note regarding fair value measurement of investment trust and fair valueof investments in partnerships recorded in a net amount ofequity interests in the balance sheet.
The Group expects to apply the accounting standard andguidance for fiscal years beginning on or after April 1, 2022,
but there is no impact on the consolidated financial statements.
u. Additional Information
Accounting Estimates on the Impact of COVID-19
The Group is responding to the COVID-19 pandemic throughefforts to minimize the impact on its business activities andimplements measures to prevent infection with a focus on
avoiding the “Three Cs” (Closed spaces with poor ventilation, Crowded places with many people nearby and Closecontact setting such as close-range conversations). Measures
include implementing remote working at offices across Japanand effective use of online meetings based on the policies
and guidelines of national and local governments.
In this context, the Group expects the impact of thepandemic on the Group’s business will be limited and there
was no significant impact of COVID-19 on the accounting
estimates for the fiscal year ended March 31, 2022.

It is uncertain when COVID-19 will be contained andany significant changes in the business environment due tothe spread of COVID-19 might affect the accounting estimates in the following fiscal year onward.
3. Significant Accounting Estimates
Revenue Recognition over Time and Allowance forLosses on Construction Contracts(1) A mounts recorded in the consolidated financial statements for the fiscal year ended March 31, 2022
Millions of Yen
2022
2021

Construction revenues
recognized over time
Allowance for losses on
construction contracts

Thousands of
U.S. Dollars
2022¥226,012 ¥205,730 $1,846,355
973

863

7,952

*Construction revenues for the year ended March 31, 2021
were recorded by the percentage-of-completion method in
accordance with ASBJ Statement No. 15, “Accounting Standard
for Construction Contracts.”(2) Information about the contents of significant accounting
estimates on the identified items
1) Calculation method
Construction revenues recognized over time are recognized by multiplying the total construction revenue by
progress, which is estimated based on a proportion of
construction costs incurred by the end of each reporting period to the estimated total construction costs.
In addition, when it is probable that the total construction costs will exceed total construction revenue,
an allowance for losses on construction contracts will
be recorded at the expected excess amount (loss on
construction contracts) less the profit or loss alreadyrecognized.
2) Major assumptions
For example, in the event an agreement on consideration for changes in design or scope of a construction
are not timely finalized in the contracts and other documents, the total construction revenue is obtained byestimating consideration based on the details of thechange in works and other matters as instructed.
Total construction costs are estimated mainly considering the market conditions of materials and subcontract
costs and individual risk factors associated with theprogress of works.
These estimates and underlying assumptions are continuously reviewed.
3) Impact on consolidated financial statements for the following fiscal year
Any changes in major assumptions as of March 31,
2022 might affect construction revenue and allowance
for losses on construction contracts for the following
fiscal year.

174. Marketable and Investment Securities
Marketable and investment securities as of March 31, 2022 and 2021, consisted of the following:
Millions of Yen
2022
2021

Current:
Government and corporate bonds
Total

18

Non-current:
Marketable equity securities
Non-marketable equity securities and other
Total

Thousands of
U.S. Dollars
2022

¥—
¥—

¥123
¥123

$—
$—

¥55,010
1,405¥56,415¥65,634
1,493¥67,127$449,393
11,475$460,868

The costs and aggregate fair values of marketable and investment securities at March 31, 2022 and 2021, were as follows:
Millions of Yen

March 31, 2022

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

Cost

Unrealized
Gains

Unrealized
LossesFair Value¥20,940¥34,126¥56¥55,010

Cost

Unrealized
Gains

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

123

1

—

124

Cost

Unrealized
Gains

Unrealized
LossesFair Value$171,064$278,790$461$449,393

Millions of Yen

March 31, 2021

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

Thousands of U.S. Dollars

March 31, 2022

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

The information for available-for-sale securities which were sold during the years ended March 31, 2022 and 2021 is asfollows:
Millions of Yen

March 31, 2022

Available-for-sale:
Equity securities

Proceeds

Realized
Gains

Realized
Losses¥5,045¥3,201¥—

Proceeds

Realized
Gains

Realized
Losses

¥663

¥429

¥—

Millions of Yen

March 31, 2021

Available-for-sale:
Equity securities

Okumura Corporation Annual Report 2022

Thousands of U.S. Dollars

March 31, 2022

Available-for-sale:
Equity securities

Proceeds

Realized
Gains

Realized
Losses$41,213$26,148$—

The impairment losses on unlisted available-for-sale equity securities for the year ended March 31, 2022, was ¥6 million ($50
thousand).
The impairment losses on listed available-for-sale equity securities for the year ended March 31, 2021, was ¥146 million.

19

5. Inventories
Inventories at March 31, 2022 and 2021, consisted of the following:
Millions of Yen
2022
2021

¥2,613
1,081
983
789
¥5,466

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

¥4,874
715
3,376
977
¥9,942Thousands of
U.S. Dollars
2022$21,344
8,835
8,028
6,442
$44,649

6. Investment Property
The Group owns certain rental properties such as residential buildings, warehouses, and land in Osaka and other areas. Somerental warehouses leased to third parties of which the Company utilizes a part are classified as rental properties in part.
The net of rental income and operating expenses for those rental properties was ¥3,173 million ($25,918 thousand) and¥3,153 million for the years ended March 31, 2022 and 2021, respectively.
In addition, the carrying amounts, changes in such balances and market prices of such properties were as follows:
Millions of Yen
Fair Value

Carrying AmountRental properties
Rental properties in part
Total

April 1,
2021

¥35,327
1,175¥36,502

Increase/
Decrease¥(993)(31)¥(1,024)

March 31,2022

¥34,334
1,144¥35,478

Rental properties
Rental properties in part
Total

¥35,553
1,194¥36,747

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

¥35,327
1,175¥36,502

Rental properties
Rental properties in part
Total

$288,595
9,597$298,192

Increase/
Decrease$(8,110)(250)$(8,360)

March 31,2021

¥64,447
1,993¥66,440

Thousands of U.S. Dollars
Fair Value

Carrying Amount

April 1,2021

¥64,8392,026¥66,865

Millions of Yen
Fair Value

Carrying Amount

April 1,
2020

March 31,2022

March 31,2022

$280,485
9,347$289,832

March 31,2022

$529,690
16,547$546,237

Notes:(1) Carrying amount recognized in the consolidated balance sheets is net of accumulated depreciation and accumulated
impairment losses, if any.
(2) Fair value of properties as of March 31, 2022 and 2021 is measured in accordance with real-estate appraisal performed byreal-estate appraisers for primary properties. The amount measured by the Group is in accordance with its Real-EstateAppraisal Standard for other properties (including those measured using indicators).

7. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans at March 31, 2022 and 2021, consisted of notes to banks and bank overdrafts. The annual interest rates
applicable to the short-term bank loans ranged from 0.7% to 1.3% at March 31, 2022 and 0.7% to 1.0% at March 31, 2021.
Long-term debt at March 31, 2022 and 2021, consisted of the following:

20

Loans from banks and other financial institutions, due serially to 2037
with interest rates ranging from 0.5% to 6.0%
UnsecuredNon-recourse loans
Obligations under finance leases
Total
Less current portionLong-term debt, less current portion

Millions of Yen

Thousands of
U.S. Dollars

2022

2021

2022

¥7,11421,063
2
28,179(2,002)¥26,177¥7,116
16,2282
23,346(3)¥23,343$58,116
172,06619
230,201(16,360)$213,841

Annual maturities of long-term debt, excluding finance leases (see Note 13), at March 31, 2022, were as follows:Year Ending March 31

Millions of Yen

Thousands of
U.S. Dollars

2023
2024
2025
2026
2027
2028 and thereafterTotal¥2,002
7,280
1,694
2,714
1,585
12,902¥28,177$16,354
59,467
13,841
22,173
12,949105,398$230,182

Millions of Yen

Thousands of
U.S. Dollars

2022

2021

2022

Amount of business assets of a consolidated subsidiary engaged in renewable energy¥27,596business pledged as collateral for non-recourse loans¥17,163$225,440

Assets pledged as collateral for non-recourse debt

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 2022

8. Employees’ Retirement Benefits
Most of the employees of the Company are covered by a contributory trusted pension plan.
The Company has a cash balance plan (pension plan linked to the market interest rates) based on the Defined Benefit
Corporate Pension Law.
(1) The changes in defined benefit obligations for the years ended March 31, 2022 and 2021, were as follows:

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

2022

Millions of Yen
2021

Thousands of
U.S. Dollars
2022¥19,349
1,187
97
13
(752)
¥19,894¥19,619
1,165
98
(21)
(1,512)¥19,349$158,067
9,698
790
105
(6,140)$162,520

2022

Millions of Yen
2021

Thousands of
U.S. Dollars
2022¥24,323
219
158
1,023
(752)
¥24,971¥23,687213
940
995(1,512)¥24,323$198,700
1,788
1,289
8,358
(6,140)$203,995(2) The changes in plan assets for the years ended March 31, 2022 and 2021, were as follows:

Balance at beginning of year
Expected return on plan assets
Actuarial gains
Contributions from the employer
Benefits paid
Balance at end of year

(3) Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit
obligation and plan assets was as follows:

Defined benefit obligation
Plan assets
Total
Unfunded defined benefit obligation
Net asset arising from defined benefit obligation

Asset for retirement benefits
Net asset arising from defined benefit obligation

2022

Millions of Yen
2021

Thousands of
U.S. Dollars
2022¥ 19,894(24,971)(5,077)—¥ (5,077)¥19,349(24,323)(4,974)—¥(4,974)$162,520(203,995)(41,475)—$(41,475)

2022

Millions of Yen
2021

Thousands of
U.S. Dollars2022¥(5,077)¥(5,077)¥(4,974)¥(4,974)$(41,475)$(41,475)(4) The components of net periodic benefit costs for the years ended March 31, 2022 and 2021, were as follows:

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

2022

Millions of Yen
2021

Thousands of
U.S. Dollars
2022¥1,187
97
(219)
(522)
(37)
¥506

¥1,165
98
(213)
(366)
(37)
¥647

$9,698790(1,788)(4,266)(302)$4,13221

(5) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans
for the years ended March 31, 2022 and 2021, were as follows:
2022

Actuarial gains (losses)
Past service costs
Total

22

¥(377)(37)¥(414)

Millions of Yen
2021

¥596
(37)
¥559

Thousands of
U.S. Dollars
2022$(3,083)(301)$(3,384)(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement
benefit plans as of March 31, 2022 and 2021, were as follows:
Millions of Yen
2022
2021

Unrecognized actuarial gains
Unrecognized past service costs
Total¥(1,853)(258)¥(2,111)¥(2,230)(295)¥(2,525)

Thousands of
U.S. Dollars
2022$(15,136)(2,111)$(17,247)(7) Plan assets
a. Components of plan assets
Plan assets as of March 31, 2022 and 2021, consisted of the following:
Debt investments
Equity investments
Life insurance general account assets
Others
Total

2022

2021

43%
12
31
14
100%

43%
12
31
14
100%

b. Method of determining the expected rate of return on plan assets
	
The expected rate of return on plan assets is determined considering allocation of plan assets, which are expectedcurrently and in the future, and the long-term rates of return which are expected currently and in the future from thevarious components of the plan assets.
(8) Assumptions used for the years ended March 31, 2022 and 2021, are set forth as follows:
Discount rate
Expected rate of return on plan assets

2022

2021

0.5%
0.9

0.5%
0.9

Okumura Corporation Annual Report 2022

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

2310. Income Taxes
The Group is subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 30.6% for the years ended March 31, 2022 and 2021.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2022 and 2021, are as follows:

24

Deferred tax assets:
Impairment losses on securities
Write-down of inventories
Allowance for bonuses
Tax loss carryforwards (Note)
Allowance for doubtful accounts
Accrued expenses
Allowance for losses on construction contracts
Other
Less valuation allowance on tax loss carryforward
Less valuation allowance on sum of future deductible temporary difference
Total
Deferred tax liabilities:
Net unrealized gains on available-for-sale securities
Retained earnings appropriated for special allowance
Asset for retirement benefits
Deferred loss on hedges
Total
Net deferred tax liabilities

Millions of Yen

Thousands of
U.S. Dollars

2022

2021

2022

¥ 1,894
1,199
1,152
1,128
648
617
298
421
(1,128)(4,194)2,035¥1,952
1,198
1,007
831
651
1,776
264
817
(831)
(4,785)2,880$ 15,474
9,798
9,410
9,211
5,290
5,043
2,433
3,439
(9,211)(34,259)
16,628(9,412)(1,694)(1,554)(1,031)(13,691)¥(11,656)(12,080)(1,705)(1,522)—(15,307)¥(12,427)(76,893)(13,836)(12,691)(8,424)(111,844)$(95,216)(Note) Tax loss carryforwards and amount of deferred tax assets by maturity
Millions of Yen

March 31, 2022

Tax loss carryforwards*
Valuation allowance
Deferred tax assets

Within one
year

¥—
—
—

Over one year Over two years
within two
within three
years
years

¥—
—
—

¥3
(3)
—

Over three Over four years
years within
within five
four years
years Over five years

¥ 95
(95)
—

¥ 47
(47)
—

¥ 983
(983)
—

Total

¥ 1,128(1,128)—Millions of Yen

March 31, 2021

Tax loss carryforwards*
Valuation allowance
Deferred tax assets

Within one
year

¥—
—
—

Over one year Over two years
within two
within three
years
years

¥—
—
—

¥—
—
—

Over three Over four years
years within
within five
four years
years Over five years

¥3
(3)
—

¥ 95
(95)
—

¥ 733
(733)
—

Total

¥ 831
(831)
—

Thousands of U.S. Dollars

March 31, 2022

Tax loss carryforwards*
Valuation allowance
Deferred tax assets

Within one
year

$—
—
—

Over one year Over two years
within two
within three
years
years

$—
—
—

$ 21
(21)
—

Over three Over four years
years within
within five
four years
years Over five years

$ 775
(775)
—

$ 385
(385)
—

$ 8,030(8,030)—Total$ 9,211(9,211)—* The tax loss carryforwards presented above are the amounts multiplied by the effective statutory tax rate.

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statement of income for the year ended March 31, 2022 is omitted since the difference is 5% or less of thenormal effective statutory tax rate.

Okumura Corporation Annual Report 2022

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statement of income for the year ended March 31, 2021 was as follows:
2021

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

30.6%
0.5
(0.6)
0.9
(1.5)
5.1
0.2
35.2%

11. Revenue Recognition(1) Disaggregation of revenue from contracts with customers
Please see Note 19 “Segment Information.”(2) Underlying information in understanding revenue from contracts with customers
Please see 2. Summary of Significant Accounting Policies, m. Construction Contracts.
(3)	Satisfaction of performance obligations based on contracts with customers and relationship with cash flows arising fromsuch contracts, and the amount and timing of revenue from contracts with customers existing at the end of the fiscal year
expected to be recognized in the following fiscal years
a. Balances of contract assets and contract liabilities, etc.
2022
Millions of Yen

Receivables from contracts with customers
Contract assets
Contract liabilities

BeginningbalanceEndingbalance¥68,264
75,335
12,489¥52,816
89,474
11,254

Thousands of U.S. Dollars

BeginningbalanceEndingbalance$557,668 $431,471
615,432
730,939
102,023
91,937(Note) 1.	Contract assets primarily relate to the right of the Group, primarily based on the construction contracts with customers, to consideration for goods or services for which control has been transferred to a customer. Once theGroup has an unconditional right to consideration, it reclassifies contract assets to receivables from contracts withcustomers. The consideration is charged and received in accordance with the payment term determined with a customer by contract.
2.	Contract liabilities primarily relate to advances received from customers based on the payment terms of construction contracts with customers. Contract liabilities that are reversed as revenue is recognized. The beginning balanceof contract liabilities is included in revenue from contracts with customers for the fiscal year ended March 31, 2022
in its almost entirety.
3.	The amount of revenue recognized in the fiscal year ended March 31, 2022 from performance obligations thatwere satisfied (or partially satisfied) in previous periods (mainly fluctuations of transaction amounts based onchanges in design or scope) is immaterial.
b. Transaction price allocated to remaining performance obligations
The transaction price allocated to remaining performance obligation that are unsatisfied as of March 31, 2022 amounted
to ¥424,798 million (*1, 2) ($3,470,290 thousand) and revenue is expected to be recognized within approximately 5
years.
*1 The transaction price describes the price allocated to the remaining performance obligations for the construction business, the primary business of the Group.
*2 The transaction price includes the changes in design or scope for which an agreement on the consideration is notdetermined in the contracts and other documents. The transaction price for the changes in design or scope is estimated based on the details of the change in works and other matters as instructed.

25

12. Research and Development Costs
Research and development costs charged to income were ¥1,630 million ($13,313 thousand) and ¥1,667 million for the years
ended March 31, 2022 and 2021, respectively.

26

13. 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, 2022 and 2021, were
¥1 million ($6 thousand) and ¥1 million, respectively.
Obligations under finance leases at March 31, 2022 and 2021, were as follows:

Due within one year
Due after one year
Total

Millions of Yen

Thousands of
U.S. Dollars

2022

2021

2022

¥1
1
¥2

¥1
1
¥2

$6
13
$19

(2) Operating leases
Future minimum lease receivables or payments under noncancelable operating leases at March 31, 2022 and 2021, 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

2022

2021

2022

¥ 2,233
12,996¥15,229¥2,370
14,495¥16,865$ 18,242
106,168$124,410

¥

¥88
784
¥872

$

¥

89
718
807

727
5,869
$ 6,596

Okumura Corporation Annual Report 2022

14. Financial Instruments and Related Disclosures(1) Disclosures on financial instruments
1) Group policy for financial instruments
At the Group level, cash surpluses, if any, are invested in low-risk financial assets. Short-term bank loans are used to fundits ongoing operations. Derivatives are not used for speculative purposes, but to manage its exposure to fluctuations inforeign 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 exposedto the risk of market price fluctuations.
Payment terms of payables, such as trade notes and trade accounts, are mostly less than one year.
Bank loans are utilized to finance principally working capital and non-recourse loans are used for financing therenewable energy business of a consolidated subsidiary.
3) Risk management for financial instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay or service debt according to the contractual terms. The Group manages its credit risk from receivables based on internal guidelines, which include
continuously determining customers’ circumstances from the phase of accepting orders to that of collection of the receivables, along with monitoring of payment terms and balances of each transaction.
Market risk management (foreign exchange risk and interest rate risk)
Marketable and investment securities are managed by monitoring market values and the financial position of issuers on aregular basis. Also, the Group continuously reviews its possession of those securities, except for held-to-maturity securities.
Long-term debt denominated in foreign currencies in association with import of materials for renewable energy business is exposed to fluctuations in foreign exchange rates. The Group utilizes derivative instruments (comprehensive longterm foreign currency forward contracts) as hedging instruments to manage these market risks.
Bank loans with floating interest rates are exposed to fluctuations in interest rates. With respect to long-term bankloans and non-recourse loans, the Group utilizes derivatives (interest rate swaps) by individual contract as hedging instruments to fix the interest expenses. The hedge accounting method is described in Note 2.o.
Please see Note 15 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
Group manages its liquidity risk by making the appropriate cash schedule on a monthly basis.

27

(2) Fair value of financial instruments
Millions of Yen

Carrying
AmountFair Value

Unrealized
Gain/Loss

Receivables—trade notes and accounts
Allowance for doubtful receivables (*4)
Net
Investment securities
Available-for-sale securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable (*4)
Net
Total

¥142,296(140)
142,156¥142,155¥(1)55,010103(0)103¥197,269

55,010—101¥197,266

(2)
¥(3)

Lease obligations
Long-term bank loans
Non-recourse loans
Total
Derivatives (*5)

¥2
5,100
21,063¥26,165¥3,230¥2
5,088
20,973¥26,063¥3,230

¥(0)
(12)
(90)
¥(102)¥—

March 31, 2022

28(*1) The fair value of “Cash and cash equivalents and time deposits,” “Payables – Trade notes, accounts, etc.” and “Short-termloans” is omitted because they are cash and the carrying amount approximates the fair value because of their short maturities.
(*2) Investments in limited partnerships and other similar entities recorded in a net amount of equity equivalents in the consolidated balance sheet are omitted. Such investments recorded in the consolidated balance sheet amounted to ¥441 million.
(*3) Equity securities, etc. which do not have a quoted market price in an active market are not included in above “Investment
securities.” Such amount of financial instruments (unlisted equity securities) recorded in the consolidated balance sheet
was ¥1,179 million.
(*4) Allowance for doubtful receivables recorded on “Receivables – trade notes and accounts” or “Long-term loans receivable”
is individually recognized and deducted from such receivables.
(*5) Net receivables and payables generated from derivatives are presented in net amounts and net payables are shown inparentheses.
Millions of Yen

Carrying
AmountFair Value

Unrealized
Gain/Loss

Receivables—trade notes and accounts
Allowance for doubtful receivables (*3)
Net
Marketable and Investment securities
Held-to-maturity securities
Available-for-sale securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable (*3)
Net
Total

¥143,422(142)
143,280¥143,280¥—123
65,634114(0)
114¥209,151

124
65,634

1—

114¥209,152(0)¥1Lease obligation
Long-term bank loans
Non-recourse loans
Total
Derivatives (*4)

¥2
7,100
16,228¥23,330¥(950)¥2
7,088
16,169¥23,259¥(950)

¥(0)
(12)
(59)
¥(71)
¥—

March 31, 2021

Okumura Corporation Annual Report 2022(*1) The fair value of “Cash and cash equivalents and time deposits,” “Payables – Trade notes, accounts, etc.” and “Short-termloans” is omitted because they are cash and the carrying amount approximates the fair value because of their short maturities.
(*2) The carrying amounts of financial instruments whose fair value cannot be reliably determined were unlisted equity securities in an amount of ¥1,185 million and investments in limited partnerships in an amount of ¥523 million.
(*3) Allowance for doubtful receivables recorded on “Receivables – trade notes and accounts” or “Long-term loans receivable”
is individually recognized and deducted from such receivables.
(*4) Net receivables and payables generated from derivatives are presented in net amounts and net payables are shown inparentheses.
Thousands of U.S. Dollars

Carrying
AmountFair Value

Unrealized
Gain/Loss

Receivables—trade notes and accounts
Allowance for doubtful receivables (*4)
Net
Investment securities
Available-for-sale securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable (*4)
Net
Total

$1,162,457(1,144)
1,161,313$1,161,301$(12)

449,393
838(1)
837$1,611,543

449,393—824$1,611,518(13)$(25)

Lease obligation
Long-term bank loans
Non-recourse loans
Total
Derivatives (*5)$1941,663172,066$213,748$26,383$1841,562
171,336$212,916$26,383

$(1)
(101)
(730)
$(832)$—

March 31, 2022(*1) The fair value of “Cash and cash equivalents and time deposits,” “Payables – Trade notes, accounts, etc.” and “Short-termloans” is omitted because they are cash and the carrying amount approximates the fair value because of their short maturities.
(*2) Investments in limited partnerships and other similar entities recorded in a net amount of equity equivalents in the consolidated balance sheet are omitted. Such investments recorded in the consolidated balance sheet amounted to $3,605 thousand.
(*3) Equity securities, etc. which do not have a quoted market price in an active market are not included in above “Investment
securities.” Such amount of financial instruments (unlisted equity securities) recorded in the consolidated balance sheet
was $9,628 thousand.
(*4) Allowance for doubtful receivables recorded on “Receivables – trade notes and accounts” or “Long-term loans receivable”
is individually recognized and deducted from such receivables.
(*5) Net receivables and payables generated from derivatives are presented in net amounts and net payables are shown inparentheses.

29

(Note) 1 Maturity Analysis for Financial Assets and Securities with Contractual Maturities
Millions of Yen

March 31, 2022
Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Long-term loans receivable
Total

Due in 1 Yearor Less

Due after
1 Year through5 Years

Due after
5 Years through10 Years

Due after
10 Years¥33,156
112,226—¥145,382¥—29,92683¥30,009

¥—
144
33
¥177

¥—
—
—
¥—

Due in 1 Yearor Less

Due after
1 Year through5 Years

Due after
5 Years through10 Years

Due after
10 Years$270,861
916,807—$1,187,668$—244,475
680$245,155

$—
1,175
273
$1,448

$—
—
—
$—

30

Thousands of U.S. Dollars

March 31, 2022
Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Long-term loans receivable
Total(Note) 2 Please see Note 7 for annual maturities of long-term debt and Note 13 for obligations under finance leases.
(3) Fair value information by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability and materiality of inputs used to measure fair value.
Level 1 fair value: Fair value measured by using quoted prices in active markets for assets or liabilities that are the subject ofthe measurement.
Level 2 fair value: Fair value measured by using observable inputs other than Level 1 inputs.
Level 3 fair value: Fair value measured by using unobservable inputs.
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement is categorized in its
entirety in the level of the lowest priority in the entire measurement.
1) Financial instruments measured at fair values in the consolidated balance sheet
Millions of Yen

March 31, 2022
Investment securities
Available-for-sale securities:
Equity securities
Derivatives
Currency related
Total assets
Derivatives
Interest rate related
Total liabilities

Level 1

Level 2

Level 3

Fair value
Total¥55,010¥—¥—¥55,010—¥55,0103,370¥3,370

—
¥—

3,370
¥58,380¥—¥—¥(140)¥(140)¥—¥—¥(140)¥(140)Thousands of U.S. Dollars

March 31, 2022
Investment securities
Available-for-sale securities:
Equity securities
Derivatives
Currency related
Total assets
Derivatives
Interest rate related
Total liabilities

Level 1

Level 2

Level 3

Fair value
Total$449,393$—$—$449,393—$449,393

27,528$27,528—$—

27,528$476,921$—$—$(1,145)$(1,145)$—$—$(1,145)$(1,145)

Okumura Corporation Annual Report 2022

2) Financial instruments not measured at fair values in the consolidated balance sheet
Millions of Yen

March 31, 2022
Receivables—trade notes and accounts
Long-term loans receivable
Total assets
Lease obligations
Long-term debt
Non-recourse loans
Total liabilities

Level 1

Level 2

Level 3

Fair value
Total

¥—
—
¥—
¥—
—
—
¥—

¥142,155
101¥142,256¥2
5,088
20,973¥26,063

¥—
—
¥—
¥—
—
—
¥—

¥142,155
101¥142,256¥2
5,088
20,973¥26,063

Thousands of U.S. Dollars

March 31, 2022
Receivables—trade notes and accounts
Long-term loans receivable
Total assets
Lease obligations
Long-term debt
Non-recourse loans
Total liabilities

Level 1

Level 2

Level 3

Fair value
Total

$—
—
$—
$—
—
—
$—

$1,161,301
824$1,162,125$18
41,562
171,336$212,916

$—
—
$—
$—
—
—
$—

$1,161,301
824$1,162,125$18
41,562
171,336$212,916(Note) A description of the valuation techniques and inputs used in the fair value measurements
Investment securities
Listed shares are valued using quoted prices. As listed shares are traded in active markets, their fair value is classified as Level
1.
Derivatives
The fair value of interest rate swaps and forward exchange contracts is measured using the discounted present value techniques based on observable inputs, such as interest rates and exchange rates, and is classified as Level 2.
Trade notes and accounts receivable
The fair value of these items is measured using the discounted present value techniques based on the recoverable amountreflecting credit risk and an interest rate obtained from appropriate indicators such as government bond yields according tomaturity periods, for each receivable amount categorized by a specified period, and is classified as Level 2 because theimpact of unobservable inputs on the fair value is immaterial.
Long-term loans receivable
The fair value of long-term loans receivable is measured separately for each loan agreement using the discounted present
value techniques based on future cash flows and an interest rate obtained by adding the credit spread to appropriate indicators such as government bond yields for each loan agreement, and is classified as Level 2.
Lease obligations
The fair value of lease obligations is measured using the discounted present value techniques based on the total amount ofprincipals and interests, the remaining period of such obligations, and an interest rate obtained by adding credit risk, foreach obligation amount categorized by a specified period, and is classified as Level 2.
Long-term debt and non-recourse loans
The fair value of these items is measured separately for each loan agreement. The fair value of floating rate borrowings ismeasured as carrying value because their rates reflect the market interest rates in a timely manner and their carrying values
approximate fair value. The fair value of fixed-rate borrowings is measured using the discounted present value techniques
based on future cash flows and an interest rate obtained by adding the credit spread to appropriate indicators such as government bond yields. The fair value is classified as Level 2.

31

32

15. Derivatives
The Group enters into derivatives, in the normal course of business, to reduce the exposure to fluctuations in foreign exchange
and interest rates. The primary classes of derivatives used by the Group are foreign currency forward contracts and interest rate
swaps.
The Group does not hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major financial institutions, the Group does not anticipate
any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate theauthorization and credit limit amount.
Derivative transactions to which hedge accounting is not applied:
There were no derivative transactions to which hedge accounting is not applied at March 31, 2022 and 2021.
Derivative transactions to which hedge accounting is applied:
Millions of Yen

Hedged item

Contract
amountContract
amount due
after one year

Foreign currency forward contracts
Buying: U.S. Dollars

Foreign currency
denominatedforward contracts¥47,960¥45,902¥3,370Interest rate swaps
Floating-rate receipt, fixed-rate payment
Interest rate swaps
Floating-rate receipt, fixed-rate payment

Non-recourse
loansLong-termbank loans

19,664

18,888

(140)

4,000

4,000

Note

Hedged item

Contract
amountContract
amount due
after one year

Fair value

Foreign currency forward contracts
Buying: U.S. Dollars

Foreign currency
denominatedforward contracts¥47,960¥47,960¥(720)

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

Non-recourse
loansLong-termbank loans

19,664

19,664

(230)

4,000

4,000

Note

Hedged item

Contract
amountContract
amount due
after one year

Fair value

Foreign currency forward contracts
Buying: U.S. Dollars

Foreign currency
denominatedforward contracts$391,796$374,984$27,528

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

Non-recourse
loansLong-termbank loans

160,640

154,305(1,145)32,67732,677

Note

March 31, 2022

Fair value

Millions of Yen

March 31, 2021

Thousands of U.S. Dollars

March 31, 2022

Note: Interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured at market
value but the differential paid or received under the swap agreement is recognized and included in interest expense or
income. The fair value of such interest rate swaps is included in those of the hedged items (i.e., long-term bank loans) in
Note 14.

Okumura Corporation Annual Report 2022

16. Commitments and Contingent Liabilities
Land in the amount of ¥21 million ($170 thousand) is pledged for a deposit received from a lessee related to a fixed-term landleasehold at March 31, 2022. Land in the amount of ¥1,458 million ($11,913 thousand) and buildings in the amount of ¥975
million ($7,968 thousand) are pledged as construction assistance funds pursuant to building lease contracts at March 31, 2022.
Investment securities in the amount of ¥16 million ($129 thousand) and investments in and advances to unconsolidated
subsidiaries and associated companies in the amount of ¥62 million ($502 thousand) are pledged as collateral for contract performance obligation of the private finance initiative (PFI) business, and the loans of an affiliate, respectively, at March 31, 2022.
Time deposits in the amount of ¥1,219 million ($9,962 thousand) are pledged as security for performance obligation of
construction contracts at March 31, 2022.
Assets pledged as collateral for non-recourse debts are business assets of a consolidated subsidiary engaged in renewableenergy business for the amount of ¥27,596 million ($225,440 thousand) at March 31, 2022.
17. Other Comprehensive Income
The components of other comprehensive income (loss) for the years ended March 31, 2022 and 2021, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

2021

2022

¥(5,758)(3,201)(8,959)2,667¥(6,292)¥10,754(284)
10,470(2,746)¥7,724$(47,042)(26,148)(73,190)
21,789$(51,401)¥4,180—
4,180(1,031)¥3,149¥(1,197)—(1,197)154¥(1,043)$34,148—
34,148(8,424)$25,724

¥145
(559)
(414)
127
¥(287)¥(3,430)

¥962
(403)
559
(171)
¥ 388¥ 7,069$1,183(4,567)(3,384)1,036$(2,348)$(28,025)

2022

Unrealized gain (loss) on available-for-sale securities
Gain (loss) arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gain (loss) on hedges
Gain (loss) arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Defined retirement benefit plans
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Total other comprehensive income (loss)

18. Subsequent Events
Appropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2022, was approved at the Company’s shareholders’ meeting
held on June 29, 2022:
Year-end cash dividends, ¥107 ($0.87) per share

Millions of Yen

Thousands of
U.S. Dollars¥3,935$32,143

Cancellation of treasury stock
The Company resolve to cancel treasury stock based on the provision of Article 178 of the Companies Act at the Board of
Directors’ meeting held on March 7, 2022 and implemented as follows:
Type of shares cancelled:
Common stock of the Company
Number of the shares cancelled: 1,000,000 shares (ratio against total number of issued shares before cancellation: 2.52%)
Date of cancellation:
April 5, 2022
Total number of issued
shares after cancellation:
38,665,226 shares33

19. Segment Information
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available and regular evaluation by
the Company’s management is being performed in order to decide how resources are allocated among the Group.
Therefore, the Group’s reportable segments consist of “Civil engineering,” “Architectural construction,” and “Investment
development.”

34

2. Methods of measurement for the amounts of sales, profit, assets, liabilities and other items for each reportable segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “Summary of Significant
Accounting Policies.”
In addition, as stated in “Accounting Changes,” the Company has applied the Revenue Accounting Standard fromthe beginning of the fiscal year ended March 31, 2022 and changed its accounting method for revenue recognition.
Accordingly, the measurement method on profit of the reportable segment has also been changed, but the impact ofthese changes on sales and segment profit is immaterial.
3. Information about sales, profit, assets, liabilities, other items and disaggregation of revenue is as follows:
Millions of Yen
2022

Sales
Domestic public agencies
Domestic non-government
Overseas
Revenue from contracts
with customers
Revenue from othersources
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Other:
Depreciation
Amortization of goodwill

Reportable segment
Investment
development
Total

Other
(Note 1)

Total

Reconciliations(Note 2)

Consolidated(Note 3)

¥96,371
130,882
3,294

¥121
7,543
49

¥96,492
138,425
3,343

¥—
—
—

¥96,492
138,4253,343

640

230,547

7,713

238,260—

238,260

—

4,199

4,199

—

4,199

—

4,199

93,307

136,600

4,839

234,746

7,713

242,459—

242,459—
93,3079,548

1136,601
463

35
4,874
2,113

36
234,782
12,124

423
8,136
422

459
242,918
12,546

(459)
(459)
101

—
242,459
12,647

¥570
—

¥780
—

¥403
30

¥1,75330¥58—¥1,811
30

¥(7)
—

¥1,80430

Civil
engineering

Architectural
construction¥62,145
27,8683,294¥34,206
102,394
—

¥20
620
—

93,307

136,600—

Millions of Yen
2021

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

Reportable segment
Investment
development
Total

Other
(Note 1)

Total

¥214,909¥5,803¥220,712

35
5,138
2,082

35
214,944
12,366

562
6,365
455

597
221,30912,821¥ 43630¥ 1,73230¥¥ 1,784
30

Civil
engineering

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

¥

¥

679
—

617
—

52
—

Reconciliations(Note 2)

Consolidated(Note 3)¥—¥220,712

(597)
(597)
59

—
220,712
12,880(7)—¥ 1,77730¥Okumura Corporation Annual Report 2022

Thousands of U.S. Dollars
2022

Sales
Domestic public agencies
Domestic non-government
Overseas
Revenue from contracts
with customers
Revenue from othersources
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Other:
Depreciation
Amortization of goodwill

Reportable segment
Investment
development
Total

Other
(Note 1)

Total

Reconciliations(Note 2)

Consolidated(Note 3)

$787,278
1,069,207
26,912$988
61,623402$788,266
1,130,830
27,314$———$788,266
1,130,830
27,314

5,229

1,883,397

63,013

1,946,410—

1,946,410—

34,29934,299—34,299—34,299762,250

1,115,918

39,5281,917,696

63,013

1,980,709—

1,980,709—
762,250
77,9959
1,115,927
3,785

294
39,822
17,261303
1,917,999
99,041

3,449
66,462
3,447

3,752
1,984,461
102,488(3,752)(3,752)829—
1,980,709
103,317$4,655—$6,370—$3,289243$14,314
243

$478
—

$14,792243$(57)—$14,735
243

Civil
engineering

Architectural
construction$507,678
227,660
26,912$279,437
836,481
—

$163
5,066
—

762,250

1,115,918—

Notes:
1. “Other” is a business segment which is not included in any reportable segment and includes business related to
manufacturing and sale of construction machinery, materials, and so on.
2. Reconciliations to segment profit in the amount of ¥101 million ($829 thousand) and ¥59 million for the years ended March
31, 2022 and 2021, respectively, include eliminations of intersegment transactions.
3. The consolidated amounts of segment profit above correspond to the amounts of operating income in the consolidated
statement of income.

35

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

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

36

OpinionWe have audited the consolidated financial statements of Okumura Corporation and its consolidated subsidiaries (the“Group”), which comprise the consolidated balance sheet as of March 31, 2022, and the consolidated statement of income,consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement ofcash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, all expressed in Japanese yen.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as of March 31, 2022, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made in accordance with the basis stated in Note 1 to the consolidated financial statements. Such U.S.
dollar amounts are presented solely for the convenience of readers outside Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements sectionof our report. We are independent of the Group in accordance with the provisions of the Code of Professional Ethics in Japan,
and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
A key audit matter is a matter that, in our professional judgment, was of most significance in our audit of the consolidated
financial statements of the current period. The matter was addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter.
Revenue recognized over time
Key audit matter Description
As described in Note 2.m. “Summary of Significant Accounting
Policies – Construction Contracts” to the consolidated financial
statements, the Group recognizes revenue over time as theGroup satisfies the performance obligations by transferring
control of a promised good or service to a customer.
Revenues recognized over time were JPY 226,012 million out
of total construction revenue of JPY 229,906 million for thecurrent year.
As described in Note 3. “Significant Accounting Estimates,”
construction revenues recognized over time based on satisfying performance obligations according to the construction
contracts are recognized by multiplying the total construction
revenue by the stage of completion of the contract, which is
calculated as a percentage of actual costs incurred at the balance sheet date. The measurement of the total construction
revenue, the total construction costs and the stage of completion of the contract involve significant estimates andjudgments made by management.
The reliability of estimating the total construction revenue
and the total construction costs in applying revenue recognition over time has a significant impact on the consolidated
financial statements where a higher estimation uncertainty
may exist in relation to the following matters:

How the Key Audit Matter Was
Addressed in the Audit
Based on our understanding of the business environment surrounding the Group and its industry, we evaluated the designand operating effectiveness of internal controls, including
Information Technology controls, over the process of revenue
recognition over time based on satisfaction of the performanceobligations. Our procedures related to estimated total construction revenue and total construction costs were as follows:(1) Estimated total construction revenue
We performed inquiries and inspected related documents
to test the design and operating effectiveness of internal
controls related to the determination of the estimatedcontract amount. This included approval of the reports on
certain projects prepared by estimating the contract
amount for the agreed upon changes in each construction
project, and monitoring activities.
(2) Estimated total construction costs
We performed inquiries and inspected related documents
to test the design and operating effectiveness of internal
controls related to approval of the reports on working
budget, construction projects and costs incurred to date,and monitoring activities.

Okumura Corporation Annual Report 2022

Revenue recognized over time
Key audit matter Description(1) Estimating total construction revenue
During construction, when changes in the design or scopeof construction are agreed with customers but the construction contract has not been revised to update thecontract amount in a timely manner, the total construction revenue may be revised using the estimated contract
amount based on amendments mutually agreed with customers (the “estimated contract amount”).
Management’s estimate of the total construction may
affect the accuracy of the construction revenue.
(2) Estimating total construction costs
It may be necessary to modify total construction costs due
to unexpected events, changes in market conditions suchas materials and subcontracting costs, and accelerating
construction in response to potential delays during construction. If total construction costs are not updated in atimely manner, or if management’s estimate is not reasonable, it may affect the accuracy of the construction
revenue and the allowance for losses on construction contracts.
We determined applying revenue recognition over time to bea key audit matter because of the possible significant impactof accounting estimates of total construction revenue andtotal construction costs on the consolidated financial statements.

How the Key Audit Matter Was
Addressed in the Audit
In addition, we assessed the reasonableness of the construction revenue recognized over time by performing an analysisof the quarterly progress of revenues and gross profits
against the business plan in each branch office. Such analysis
identified branch offices with significant fluctuations in revenues and profit margins near the end of the period. We also
inspected related documents, performed inquiries of construction managers, performed site observations forconstruction projects that possessed characteristics such as
those with significantly higher or lower profit margins ratio,
large fluctuating profit margins ratio, deficit projects, projects
with large estimated contract amounts, or large-scale projects.
Specifically, for the estimate of total construction revenue
and total construction costs, we performed the following:(1) Estimated total construction revenue
We tested the estimated contract amount by inspection of
documents underlying the estimate, inspection of meeting
minutes with customers and inquiries of construction
managers.
In addition, for construction projects that contained estimated contract amounts in the prior year, we inspected
revised construction contracts signed in the current year
and compared the updated amounts in the contracts withtotal construction revenue estimated in the previous year.
(2) Estimated total construction costs
For samples of construction projects selected, we compared total construction costs with the original estimate
identifying the reason for the change, inspected the orderconfirmation for purchase orders issued, quotation orunderlying documents prior to the order, performed inquiries of the construction managers, and inspected thevendor invoices, as necessary.

Other Information
Management is responsible for the other information. The Audit and Supervisory Committee is responsible for overseeing the
Directors’ execution of duties relating to the design and operating effectiveness of the controls over the other information. The
other information comprises the information included in the annual report, but does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, weare required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance withaccounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable
the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally accepted in Japan and using the going concern basis of accounting unless management either intends to liquidate theGroup or to cease operations, or has no realistic alternative but to do so.
The Audit and Supervisory Committee is responsible for overseeing the Directors’ execution of duties relating to the designand operating effectiveness of the controls over the Group’s financial reporting process.

37

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing
standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:38• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks. The procedures selected depend on the auditor’s judgment. In
addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on theGroup’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the consolidated financial statements are in accordance withaccounting principles generally accepted in Japan, as well as the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within theGroup to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision andperformance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit and Supervisory Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the Audit and Supervisory Committee with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with it all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Audit and Supervisory Committee, we determine those matters that were ofmost significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matteror when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because theadverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

July 29, 2022

Member of
Deloitte Touche Tohmatsu Limited

Breakdown of Orders (Nonconsolidated)
Okumura Corporation
Year Ended March 31, 2022

Okumura Corporation Annual Report 2022

Construction Orders Awarded

2022

Millions of
Yen

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

56.7

32,70861,285—93,993100  %

125,827
95,410987¥222,224

Composition
ratio

Millions of
Yen

39.3%

¥ 66,405
36,501
1,793
104,699

57.6

23,71281,395—
105,10796.9
3.1100  %

90,117
117,896
1,793
209,806
5,977¥215,783

Composition
ratio

Millions of
Yen

56.5%

¥113,225
70,512
13,102
196,83943.5

58,053
109,123—
167,176100  %

171,278
179,635
13,102¥364,015

94,784
121,879
7,039¥223,702
2022

Millions ofYen¥ 62,145
27,8683,294
93,307
34,206102,395—
136,601
96,351
130,2633,294
229,908
7,322¥237,230

Year-end Backlog*¥118,664
66,293
15,512200,469
51,047102,010
1,334
154,391
169,711
168,303
16,846¥354,860

Composition
ratio

Thousands of
U.S. Dollars

57.7%$  552,114
193,187
46,603791,90442.3

222,204
802,479
10,897
1,035,580

100  %

774,318
995,666
57,500$1,827,484

Composition
ratio

Thousands of
U.S. Dollars

48.5%$  507,678
227,660
26,912
762,25048.7

279,437
836,490—
1,115,927

97.2
2.8100  %

787,115
1,064,150
26,912
1,878,177
59,819$1,937,996

Composition
ratio

Thousands of
U.S. Dollars

54.1%$  969,399
541,560
126,724
1,637,683

45.9

417,014
833,348
10,897
1,261,259

100  %

1,386,413
1,374,908
137,621$2,898,942

2022

2021

2022

Millions of
Yen

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

43.3%

¥ 93,11934,125987
128,231

27,20098,231
1,334
126,765

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¥ 67,584
23,648
5,705
96,9372022

2021

Composition
ratio

2022

2021

*“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the fiscal year ended
March 31, 2022. Accordingly, construction work carried forward as of the beginning of the fiscal year ended March 31, 2022 decreased by ¥2,949 million ($24,097
thousand) from construction work carried forward as of the end of the previous fiscal year.

39

Network

Head and Branch Offices

40

Consolidated Subsidiaries

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

Hokuriku Office2-3-26, Higashi Ohdori, Chuo-ku,
Niigata 950-0087, Japan
TEL: +81-25-241-6160 FAX: +81-25-241-6364

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

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

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

Kansai Branch
26F ABENO HARUKAS,1-1-43 Abenosuji,
Abeno-ku, Osaka 545-6026, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6621-1921

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

Nara Office38-3, Takama-cho, Nara 630-8241, Japan
TEL: +81-742-22-5001 FAX: +81-742-27-0192

West Japan Branch Office
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692

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

West Japan Branch Office (HARUKAS Office)
26F ABENO HARUKAS,1-1-43 Abenosuji,
Abeno-ku, Osaka 545-6026, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6621-1921

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

Sapporo Branch
2-1-18, Kita Shijo Nishi,
Chuo-ku, Sapporo 060-0004, Japan
TEL: +81-11-261-9261 FAX: +81-11-251-5345

Shikoku Branch
2-3-11, Kotobuki-cho,Takamatsu 760-0023, Japan
TEL: +81-87-851-9008 FAX: +81-87-822-9286

Tohoku Branch
2-25, Tsutsumi dori, Amamiya-machi,
Aoba-ku, Sendai 981-8525, Japan
TEL: +81-22-274-1231 FAX: +81-22-273-9805

Kyushu Branch
2-19-1, Sanno, Yahata Higashi-ku,
Kitakyushu 805-8531, Japan
TEL: +81-93-671-3131 FAX: +81-93-661-1543

Tokyo Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8116

Fukuoka Office
1-13-8, Yakuin, Chuo-ku,
Fukuoka 810-0022, Japan
TEL: +81-92-741-4431 FAX: +81-92-741-4740

Higashikanto Office18-14, Shinmachi, Chuo-ku,
Chiba 260-0028, Japan
TEL: +81-43-241-2255 FAX: +81-43-244-5911

Taiwan Branch
Rm.B, 11F-3, No.51, Hengyang Rd.,
Zhongzheng Dist.,Taipei City 100004, Taiwan(R.O.C.)TEL: +886-2-2311-7080 FAX: +886-2-2311-7076

Yokohama Office
60, Nihon Ohdori, Naka-ku,
Yokohama 231-0021, Japan
TEL: +81-45-662-1361 FAX: +81-45-641-3502

Singapore Branch
175A Bencoolen Street, #05-06 Burlington
Square, Singapore 189650
TEL: +65-6884-6830 FAX: +65-6884-6831

Okumura Machinery Corporation
3-5-26, Himejima, Nishiyodogawa-ku,
Osaka 555-0033, Japan
TEL: +81-6-6472-3461 FAX: +81-6-6477-6801
Business line:Design, manufacture, sales, andrepair of construction/industrial machines anddevices
Taihei Real Estate Corporation[Head Office]5-16-7, Shiba, Minato-ku,
Tokyo 108-0014, Japan
TEL: +81-3-5439-5401 FAX: +81-3-5439-5402[Osaka Branch]
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6625-3959 FAX: +81-6-6629-3938
Business line: Real estate, land and building
management
ISHIKARI BIO ENERGY GODO KAISHA
2-763-3, Shinko, Chuo,
Ishikari 061-3242, Japan
TEL: +81-133-77-5318 FAX: +81-133-77-5319
Business line: Power generation using renewable energy and sales of electricity
HIRATA BIO ENERGY GODO KAISHA
23-8 Tsubouchi, Tonoko, Hirata-mura,
Ishikawa-gun, Fukushima-ken 963-8204 Japan
Business line: Power generation using renewable energy and sales of electricity

Board of Directors

Investor Information(As of June 29, 2022)(As of March 31, 2022)

Directors

Corporate Data

President and Representative Director
Takanori Okumura
Representative Director
Atsushi Tanaka
Directors
Yuichi Mizuno
Kenji Kotera
Toru Osumi
Masahiro Kaneshige
Tamotsu Tsuchiya
Rieko Ueda

Head Office	OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295
EstablishedFebruary 22, 1907
Capital¥19.8 billion

Director (Audit and Supervisory Committee Member)
Tetsuo Kodera
Director (Full-time Audit and Supervisory Committee Member)
Kazutoshi Abe

Stock Information

Directors (Audit and Supervisory Committee Member)
Hiroyo Yashiro
Kenji Nishihara
Eiji Maeda

Stock Exchange Listings
Tokyo

Note: Rieko Ueda, Tetsuo Kodera, Hiroyo Yashiro, Kenji Nishihara and Eiji Maeda areoutside directors.

Executive Vice Presidents
Yuichi Mizuno*
Hajime Kosaka
Senior Managing Executive Officers
Shunso Iijima
Kenji Kotera*
Atsushi Tanaka*
Managing Executive Officers
Hiroyuki Hayashi
Toru Osumi*
Kazuyuki Yoshimi
Masahiro Kaneshige*
Wataru Onishi
Tamotsu Tsuchiya*
Sawayuki Kawatani
Kazutoshi Yuyama
Executive Officers
Takanori Hayashi
Naoki Magoori
Hirohide Taniguchi
Yoshinori Yasui
Kunitake Konishi
Nobuharu Suga
Yasuhiko Goto
Hiroki Machida
Kazuyoshi Okuma
Hiroyuki Matsushima

Transfer Agent
Sumitomo Mitsui Trust Bank, Limited
Major Shareholders
Shareholder

Executive Officers

Akira Sasaki
Takami Nakada
Koji Furusawa
Akira Okada
Masanari Kashiki
Junichi Hori
Kenichi Abe
Koichi Isogami
Yoshihiro Kadotani

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

41

Group Employees
2,194

Shares held Shareholding(thousands)
ratio

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

5,289

14.39%

Okumura Employees’
Shareholding Association

1,786

4.86

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

1,502

4.09

Custody Bank of Japan,
Ltd. (Trust Account)

1,390

3.78

Resona Bank, Limited.

1,214

3.30

Sumitomo Realty &Development Co., Ltd.

1,210

3.29

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

769

2.09

Nippon Life Insurance Company

643

1.75

State Street Bank andTrust Company 505001

567

1.54

Sumitomo Mitsui Banking Corporation

556

1.51

Note:
1. The Company holds 2,892,468 shares of treasury stock, which are excluded
from the above.
2. Shareholding ratio is computed excluding treasury stock.

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

Printed in Japan