Annual Report 2016
Fiscal year ended March 31, 2016

4-2-28 Kudan-kita, Chiyoda-ku, Tokyo, 102-0073, Japan
Tel: +81-(0)3-3265-4685 Fax: +81-(0)3-3265-4698
www.wave-nakano.co.jp
SINGAPORE
1 Coleman St., #06-02 The Adelphi, 179803, Singapore
Tel: +65-6333-4933
Fax: +65-6338-8568

MALAYSIA
Block B, 15-4-2, Megan Salak Park Jalan 1/125E, Taman Desa Petaling, Kuala Lumpur 57100, Malaysia
Tel: +60-3-9059-6977
Fax: +60-3-9059-6277

INDONESIA
1401 Wisma Tamara 14th Floor Jl. Jend. Sudirman KAV. 24, Jakarta 12920, Indonesia
Tel: +62-21-5203674
Fax: +62-21-5203670

THAILAND#17-03, 2170 Bangkok Tower, New Petchburi Road, Bangkapi, Huaykwang, Bangkok 10310, Thailand
Tel: +66-2-308-0500
Fax: +66-2-308-0497

VIETNAM
1411-1412, 14th Floor, Daeha Business Center, 360 Kim Ma Street, Ngoc Khanh Commune, Ba Dinh District, Hanoi, Vietnam
Tel: +84-4-3-724-7552/58
Fax: +84-4-3-724-7553
2nd Floor New Agency Service Center Building 19 Vo Van Tan Street Ward 6, District 3, Ho Chi Minh City, Vietnam
Tel: +84-8-3-930-6501
Fax:+ 84-8-3-930-6499

CHINA
Room 10A3, First World Plaza, Hongli Road West, Shenzhen 518034, China
Tel: +86-755-8296-8491
Fax: +86-755-8296-8493

CORPORATE PROFILE
As of 31st March 2016

CONTENTS

Company Outline
Company Name
Headquarters
Foundation
Established
Capitalization
Employees
Stock Listing
Primary Business

FINANCIAL HIGHLIGHTS

1

REPORT OF INDEPENDENT AUDITORS

2

CONSOLIDATED BALANCE SHEETS

3

CONSOLIDATED STATEMENTS OF INCOME

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

6

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

7

CONSOLIDATED STATEMENTS OF CASH FLOWS

8NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

9

Board of Directors

SUPPLEMENTAL INFORMATION

28

Honorary Chairman
Vice Chairman
President
Directors

NONCONSOLIDATED BALANCE SHEETS

28

NONCONSOLIDATED STATEMENTS OF INCOME

30

CORPORATE PROFILE

31

NAKANO CORPORATION
4-2-28 Kudan-kita, Chiyoda-ku, Tokyo 102-0073, Japan
8th February 1933
19th December 1942
¥5,061,678,686
1,314
Tokyo Stock Exchange, First Section
Domestic Construction Projects
International Construction Projects

Outside Directors
Standing Corporate Auditors
Corporate Auditors

Yoshikazu Oshima
Akira Asai
Toshiyuki Taketani
Yorinobu Kato
Satoshi Hattori
Moriyasu Kawamura
Toshihide Kurokawa
Shunichi Sato

Koichiro Nakano
Hiroyuki Tanada
Makoto Fukuda
Akihiko Sugaya
Kohei Yamaya

Main Affiliated Financial Institutions
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
The Yamanashi Chuo Bank, Ltd.

Mitsubishi UFJ Trust and Banking Corporation
The Shoko Chukin Bank, Ltd.

Major Shareholders
Oshima Scholarship Foundation
Yoshikazu Oshima
Nakano Investment Fraternity Association
Nakano Employee Shareholder Association

Kanto Kogyo Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Japan Trustee Services Bank, Ltd.(Trust Account)

Domestic Offices
Headquarters
Tohoku Regional OfficeOsaka Regional Office
Civil Engineering Office
Hokkaido Branch Office
Ibaraki Branch Office
Higashi Kanto Branch Office
Sales Offices (Mie, Hyogo, Kita Kyushu)

Tokyo Main Office
Nagoya Regional Office
Kyushu Regional Office
Taito Branch Office
Kita Tohoku Branch Office
Kita Kanto Branch Office
Yokohama Branch OfficeInternational Offices
Nakano Singapore (Pte.) Ltd. (Singapore)
PT. Indonakano (Indonesia)
Nakano Vietnam Co., Ltd. (Vietnam)

Cautionary remarks regarding forward looking statements
This Annual Report includes forward-looking statements that represent Nakano Corporation’s assumptions and expectations inlight of currently available information. These statements reflect industry trends, client’s situations and other factors, and involverisks and uncertainties which may cause actual performance results to differ from those discussed in the forward looking
statements in accordance with changes in the domestic and international business environment.
For further information contact:
Nakano Corporation International Operations Headquarters
4-2-28 Kudan-kita, Chiyoda-ku, Tokyo 102-0073, Japan
Tel: +81-(0)3-3265-4685 Fax: +81-(0)3-3265-4698
www.wave-nakano.co.jp

Nakano Construction Sdn. Bhd. (Malaysia)
Thai Nakano Co., Ltd. (Thailand)

Industry Affiliations
Japan Federation of Construction Contractors
The Associated General Contractors of Tokyo
General Contractors Association of Osaka

National General Contractors Association of Japan
Japan Association of Representative General Contractors

ANNUAL REPORT 2016

31

FINANCIAL HIGHLIGHTS

NAKANO CORPORATION and its subsidiaries
Years ended March 31, 2012 through 2016
2012

2013

2014

2015

2016

2016

Millionsof yenThousands of
U.S. dollars

Contract awards¥101,198¥112,967¥120,386¥131,256¥114,067$1,012,309

Net sales

110,344

117,254

129,177

125,260

114,989

1,020,491

Operating income

229

1,522

2,250

3,367

5,481

48,642

Ordinary income

275

1,755

2,522

3,801

5,795

51,428

Profit (Loss) attributable to owners of parent(2,024)

653

1,543

2,717

3,986

35,374Comprehensive income(1,997)

1,958

2,267

4,625

2,942

26,109Total net assets

9,710

11,565

12,971

18,11020,880185,303

Total assets

65,83871,92776,47878,41973,976

656,514

Net cash provided by (used in) operating activities(2,462)

2,167

2,339

(780)

9,607

85,259Net cash provided by (used in) investing activities(1,371)

2,502

128

(854)

844

7,490

Net cash provided by (used in) financing activities
Cash and cash equivalents at end of period

(603)

274

(258)

(2,134)(2,244)(19,914)

15,02622,15325,23922,99529,329260,285

Yen

U.S. dollars

Per share of common stock(in yen and U.S. dollars)
Net assets
Net income (loss)¥271.14¥319.60¥354.05¥493.98¥577.61$5.13(58.88)

19.01

44.89

79.04

115.96

1.03

3.00

3.00

3.00

5.00

7.00

0.06

1,169

1,293

1,333

1,334

1,314

Cash dividends applicable to the year
Number of employees

Note: The rate of ¥112.68=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

140,000

140,000

120,000

120,000

100,000

100,000

80,00060,00040,00080,00060,00040,00020,00020,000002012 2013 2014 2015 2016
Domestic

International

Profit attributableto owners of parent

Millions of yen

Net Sales

Millions of yen

Millions of yen

Contract Awards

2012 2013 2014 2015 2016
Domestic

4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
–500
–1,000–1,500–2,000–2,5002012 2013 2014 2015 2016

International

ANNUAL REPORT 2016

1

REPORT OF INDEPENDENT AUDITORS

2

NAKANO CORPORATIONCONSOLIDATED BALANCE SHEETSNAKANO CORPORATION and its subsidiaries
As of March 31, 2015 and 2016

Millions of yen

Thousands of
U.S. dollars(Note 2)

2015

2016

2016

¥25,641¥30,971$274,858

Notes receivable, accounts receivable from completed
construction contracts and other (Notes 4 and 8)

29,451

21,622

191,888

Costs on uncompleted construction contracts (Note 4)

1,068

2,287

20,296

104

48

425

AssetsCurrent assets:
Cash and deposits (Notes 4, 7 and 8)

Costs on real estate business
Raw materials and supplies

6

5

44

Accounts receivable - other

1,176

1,045

9,274

Consumption taxes receivable

2,249

—

—

Other

1,198

992

8,803

Allowance for doubtful accounts
Total current assets

(139)

(120)

(1,064)60,75756,853

504,552

Non-current assets:
Property, plant and equipment (Note 4)
Buildings and structures

7,053

7,041

62,486

Machinery, vehicles, tools, furniture and fixtures

1,343

1,728

15,335

Land

9,998

9,995

88,702324——

Construction in progress
Accumulated depreciation
Total property, plant and equipment
Intangible assets(5,052)(5,211)(46,246)

13,667

13,553

120,278

318

261

2,316

Investments and other assets
Investment securities (Notes 4, 8 and 9)

3,215

2,896

25,701Long-term loans receivable

240

199

1,766

Claims provable in bankruptcy, claims provable inrehabilitation and other

32

32

283

Other

268

258

2,289

Allowance for doubtful accounts

(79)

(78)

(692)

Total investments and other assets

3,676

3,308

29,357

Total non-current assets

17,661

17,123

151,961¥78,419¥73,976$656,514

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

ANNUAL REPORT 2016

3

Millions of yen

Thousands of
U.S. dollars(Note 2)

2015

2016

2016

¥45,050¥35,009$310,694

Liabilities
Current liabilities:
Notes payable, accounts payable for construction contracts
and other (Note 8)
Short-term loans payable (Notes 4, 8 and 16)

3,036

3,768

33,439Current portion of bonds (Note 15)

80

80

709

Income taxes payable

389

176

1,561

Accrued consumption taxes

—

1,995

17,705

4,792

7,161

63,551

Provision for warranties for completed construction

112

110

976

Provision for loss on construction contracts (Note 4)

98

—

—

Advances received on uncompleted construction contracts

Provision for bonuses
Other (Note 16)
Total current liabilities

431

459

4,073

1,108

1,804

16,00955,09850,564

448,739

200

120

1,064

2,628

—

—

Non-current liabilities:
Bonds payable (Note 15)
Long-term loans payable (Notes 4, 8 and 16)
Deferred tax liabilities (Note 11)

747

625

5,546

Net defined benefit liability (Note 10)

736

1,014

8,998

Other (Note 16)
Total non-current liabilities
Total liabilities

898

772

6,851

5,210

2,532

22,47060,30953,096471,210¥5,061¥5,061$44,914

Net assets
Shareholders’ equity:
Common stock
Authorized: 154,792,300 shares
Issued:34,498,097 shares

Capital surplus

1,400

1,400

12,424Retained earnings
Less: Treasury stock, at cost
121,084 shares in 2015 and 122,618 shares in 2016

10,182

13,997124,219

(30)

(31)

(275)

16,614

20,427

181,283

Valuation difference on available-for-sale securities

767

567

5,031

Foreign currency translation adjustment

(214)

(592)

(5,253)Remeasurements of defined benefit plans (Note 10)

(186)

(546)

(4,845)

Total accumulated other comprehensive income

366

(572)

(5,076)

1,128

1,024

9,087

Total shareholders’ equity
Accumulated other comprehensive income:Non-controlling interests:
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

4

NAKANO CORPORATION

18,11020,880185,303¥78,419¥73,976$656,514

CONSOLIDATED STATEMENTS OF INCOME
NAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2015 and 2016

Net sales:
Net sales of completed construction contracts
Sales on real estate business (Note 12)
Sales on other businessTotal net sales
Cost of sales:
Cost of sales of completed construction contracts (Note 5)
Cost of sales on real estate business (Notes 5 and 12)
Cost of sales on other businessTotal cost of sales
Gross profit:
Gross profit on completed construction contracts
Gross profit - real estate business
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses (Note 5)
Operating income
Non-operating income:Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of non-current assets (Note 5)
Gain on sales of investment securities (Note 9)
Total extraordinary income
Extraordinary losses:
Impairment loss (Notes 5 and 12)
Loss on valuation of investment securities (Note 9)
Loss on reversal of foreign currency translation adjustments
Loss on liquidation of Equipment Center
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Profit before income taxes
Income taxes:
Income taxes - current
Income taxes for prior periods
Income taxes - deferred (Note 11)
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Millions of yen

Thousands of
U.S. dollars(Note 2)

2015

2016

2016

¥124,172
1,054
33
125,260¥113,901
1,013
73
114,989$1,010,835
8,990
647
1,020,491

116,252542
37
116,831103,669442
69104,181920,030
3,922
612
924,574

7,920
512
(4)
8,429
5,061
3,367

10,231571
310,807
5,325
5,481

90,7965,067
26
95,90847,257
48,642

239
36
298
574

267
45
89
401

2,369
399
789
3,558

125
15
141
3,801

83
3
87
5,795

736
26
772
51,428

28
1
29

4
28
32

35
248
283

7
53
—
48
29
32
172
3,658

181
—
389
—
—
13
585
5,243

1,606
—
3,452
—
—
115
5,191
46,529

682
27
73
783
2,874
157
¥2,717

506
674
10
1,191
4,052
65
¥3,986

4,490
5,981
88
10,56935,960576$35,374

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

ANNUAL REPORT 2016

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2015 and 2016

Millions of yen

Thousands of
U.S. dollars(Note 2)

2015

2016

2016

¥2,874¥4,052$35,960

292
888
569
1,750

(200)
(549)
(359)
(1,109)(1,774)(4,872)(3,186)(9,842)Comprehensive income¥4,625¥2,942$26,109

Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests¥4,296329¥3,047(104)$27,041(922)

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income (Note 6)

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

6

NAKANO CORPORATIONCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSNAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2015 and 2016
Millions of yen
Shareholders’ Equity

Commonstock

Balance as at March 31, 2014

Capitalsurplus

Valuation
Total
difference
accumulated
Foreign
Nonothercurrency Remeasurements
Total on available-for-sale translationof defined comprehensive controlling
Treasury shareholders’interests
securities adjustment
incomeequitybenefit plansstock¥5,061 ¥1,400 ¥6,952 ¥(29) ¥13,384

Cumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Accumulated other comprehensive income

616

Total net
assets¥474 ¥(930) ¥(756) ¥(1,212) ¥799 ¥12,971

616

616

¥5,061 ¥1,400 ¥7,568 ¥(29) ¥14,001¥474 ¥(930) ¥(756) ¥(1,212) ¥799 ¥13,588

Changes of items during
periodDividends from surplus(103)

Profit attributable to owners ofparent2,717

Purchase of treasury stock

(0)

(103)

(103)

2,717

2,717

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance as at March 31, 2015

—

—

2,613

(0)

Cumulative effects of changes
in accounting policies
Restated balance

2,613¥5,061 ¥1,400 ¥10,182 ¥(30) ¥16,614

292

716

569

1,579

329

1,908

292

716

569

1,579

329

4,521

¥767 ¥(214) ¥(186) ¥366 ¥1,128 ¥18,110——¥5,061 ¥1,400 ¥10,182 ¥(30) ¥16,614¥767 ¥(214) ¥(186) ¥366 ¥1,128 ¥18,110

Changes of items during
periodDividends from surplus(171)

Profit attributable to owners ofparent

3,986

Purchase of treasury stock

(1)

(171)

(171)

3,986

3,986

(1)

(1)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance as at March 31, 2016

—

—

3,814

(1)

3,813

¥5,061 ¥1,400 ¥13,997 ¥(31) ¥20,427

(200)

(378)

(359)

(938)

(104)

(1,043)

(200)

(378)

(359)

(938)

(104)

2,769

¥567 ¥(592) ¥(546) ¥(572) ¥1,024 ¥20,880

Thousands of U.S. dollars (Note 2)
Shareholders’ Equity

Commonstock

Balance as at March 31, 2015

CapitalsurplusRetainedearnings

Valuation
Total
difference
accumulated
Foreign
Nonothercurrency Remeasurements
Total on available-for-sale translationof defined comprehensive controlling
Treasury shareholders’interests
securities adjustment
incomeequitybenefit plansstock$44,914 $12,424 $90,362 $(266) $147,444

Cumulative effects of changes
in accounting policies
Restated balance

Accumulated other comprehensive income$6,806 $(1,899) $(1,650) $3,248 $10,010 $160,720—$44,914 $12,424 $90,362 $(266) $147,444

Total net
assets—$6,806 $(1,899)(1,650) $3,248

10,010 $160,720

Changes of items during
periodDividends from surplus(1,517)

Profit attributable to owners ofparent35,374Purchase of treasury stock(8)(1,517)(1,517)35,37435,374(8)(8)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance as at March 31, 2016——

33,848(8)

33,839$44,914 $12,424 $124,219 $(275) $181,283(1,774)(3,354)(3,186)(8,324)(922)(9,256)(1,774)(3,354)(3,186)(8,324)(922)

24,574$5,031 $(5,253) $(4,845) $(5,076) $9,087 $185,303

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

ANNUAL REPORT 2016

7

CONSOLIDATED STATEMENTS OF CASH FLOWSNAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2015 and 2016

Net cash provided by (used in) operating activities:
Profit before income taxes
Adjustments for:
Depreciation and amortization
Impairment loss
Loss on reversal of foreign currency translation adjustments
Increase in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for loss on construction
contracts
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in costs on uncompleted construction
contracts
Decrease in other inventories
Decrease in notes and accounts payable - trade
Increase (decrease) in advances received on uncompleted
construction contracts
Decrease/increase in consumption taxes receivable/payable
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities:
Net decrease in short-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 7)
The accompanying notes are an integral part of these financial statements.

8

NAKANO CORPORATION

Millions of yen

Thousands of
U.S. dollars(Note 2)

2015

2016

2016

¥3,658¥5,243$46,529

358
7
—
34
36

385
181
389
6
(65)

3,416
1,606
3,452
53
(576)

16
(275)
125
(580)

(98)
(312)
83
7,139

(869)
(2,768)736
63,356

143
134
(210)

(1,233)56(8,872)(10,942)496(78,736)(1,722)(2,519)
393
(400)
275
(116)
(538)
(780)

2,468
4,238
1,240
10,851312(75)(1,481)
9,607

21,902
37,61011,00496,2992,768(665)(13,143)
85,259(5,639)
5,072
(480)
114
78
(854)

(2,950)
3,903
(285)
4
171
844

(26,180)
34,637(2,529)
35
1,517
7,490

(350)
(1,511)
(80)
(103)
(89)
(2,134)
1,524(2,243)25,239¥22,995(710)(1,186)
(80)
(171)
(96)
(2,244)(1,873)
6,333
22,995¥29,329(6,301)(10,525)(709)(1,517)(851)(19,914)(16,622)
56,203204,073$260,285

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NAKANO CORPORATION and its subsidiaries

1.	Basis of Presenting
Consolidated
Financial
Statements

The consolidated financial statements presented herein of NAKANO CORPORATION (the“Company”) and its consolidated subsidiaries (together, the “Companies”) are prepared inaccordance with the provisions set forth in the Corporation Law of Japan and the Financial
Instruments and Exchange Law of Japan, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to applicationand disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued domestically inorder to present them in a form which is more familiar to readers outside Japan. In addition, certain
reclassifications have been made to the 2015 financial statements to conform to the classifications
used in 2016.

2. U.S. Dollar Amounts The accounts of consolidated financial statements presented herein are expressed in Japanese

yen by rounding down to the nearest million. The U.S. dollar amounts shown in the accompanying
consolidated financial statements and notes thereto have been translated from Japanese yen into
U.S. dollars on the basis of ¥112.68 to U.S.$1, the rate of exchange prevailing at March 31, 2016,and have been then rounded down to the nearest thousand. These U.S. dollar amounts are notintended to imply that the Japanese yen amounts have been or could be converted, realized or
settled in U.S. dollars at this or any other rate.

3.	Summary of
Significant
Accounting Policies

a. Consolidation
1) Scope of Consolidation
The Company had 10 subsidiaries as of March 31, 2016. The consolidated financial statements forthe year ended March 31, 2016 include the accounts of the Company and all subsidiaries. The
Company had 2 affiliates as of March 31, 2016. As of March 31, 2016, the equity method was notapplied to these affiliates, as they were not significant in terms of retained earnings and net
income of the consolidated financial statements.
Nakano International Corp. and PT. Nakano S Batam, which were consolidated subsidiaries inthe year ended March 31, 2015, were excluded from the scope of consolidation since thesecompanies were liquidated in March, 2016. The statements of income up to the completion ofliquidation are consolidated.
2) Financial Statements of Subsidiaries
The financial year-end of an overseas subsidiary is December 31.
Consolidation of the subsidiary is therefore performed by using the provisional financial
statements prepared as of March 31. The other subsidiaries’ financial year-end is March 31.
b. Securities
Securities are classified and accounted for as follows:i) held-to-maturity debt securities, which are expected to be held to maturity with the positive intent
and ability are reported at amortized cost and ii) available-for-sale securities, which are notclassified as the aforementioned securities, are reported at fair value, with unrealized gains andlosses, net of applicable taxes, reported in a separate component of net assets, while the cost of
securities sold is computed using the moving-average method.
Non-marketable available-for-sale securities are stated at cost determined by the movingaverage method. For other than temporary declines in fair value, securities are written down to net
realizable value.
c. Inventories
Costs of uncompleted construction contracts are determined by the specific identification method.
Costs on real estate business and raw materials and supplies are stated at cost determined by
the specific identification method for costs on real estate business and by the last purchase pricemethod for raw material and supplies, while the net book value of these inventories in the balance
sheet is written down if the net realizable value declines.

ANNUAL REPORT 20169

d. Property, Plant and Equipment (excluding lease assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment of
the Company and its domestic consolidated subsidiaries is computed by the declining-balancemethod, while buildings (excluding building fixtures) acquired on or after April 1, 1998 aredepreciated using the straight-line method. Useful lives and residual values of the assets are
determined based on the regulations of the Corporate Income Tax Law.
Foreign consolidated subsidiaries use primarily the straight-line method.
e. Intangible Assets (excluding lease assets)
Intangible assets are amortized by the straight-line method. Useful lives of the assets are
determined based on the regulations of the Corporate Income Tax Law.
Software for internal use is amortized over a period of the internal available years (5 years)
using the straight-line method.
f. Lease Assets
Depreciation of lease assets under finance leases that do not transfer ownership of the leaseassets to the lessee is calculated by the straight-line method over the lease term of the leaseassets with no residual value.
g. Allowance for Doubtful Accounts
The allowance for doubtful accounts provided by the Company and its domestic consolidated
subsidiaries is stated in amounts considered to be appropriate based on each company’s pastcredit loss experience and an evaluation of potential losses in the receivables and others
outstanding.
Foreign consolidated subsidiaries provide for such possible losses based on the estimateduncollectible amounts of the specific accounts.
h. Provision for Warranties for Completed Construction
The provision for warranties for completed construction is provided by the Company to cover
expenses for defects claimed concerning completed work based on the estimated amount ofcompensation to be paid in the future for the work completed during the fiscal year.
i. Provision for Loss on Construction Contracts
The provision for loss on construction contracts is provided by the Company and its consolidated
subsidiaries with respect to construction projects for which eventual losses are reasonably
estimated.
j. Provision for Bonuses
The provision for bonuses provided by the Company and its domestic consolidated subsidiaries is
accrued at the year end to which such bonuses are attributable.
k. Accounting for Retirement Benefits
In computing projected benefit obligations, the estimated amounts of retirement benefit obligations
are attributed to periods on a benefit formula basis.
Actuarial differences are amortized commencing in the following year after the differences are
incurred by the straight-line method over a period (12 years) which is shorter than the averageremaining years of service of the employees when incurred.
In determining net defined benefit liability and retirement benefit expenses, certain
consolidated subsidiaries adopt a short-cut method where the amount required for voluntarytermination of employees at the fiscal year end is regarded as projected benefit obligations.
l. Revenue and Cost of Construction Contracts
Revenue of construction contracts is recorded by the percentage-of-completion method for thecompleted portion of the contracts at the balance sheet date, if the outcome of the construction
contract can be reliably estimated and the completed-contract method is applied to othercontracts whose outcome cannot be reliably estimated. The percentage of completion is
calculated based on the cost incurred to date as a percentage of the estimated total cost.
Construction revenue recognized based on the percentage-of-completion method for the year
ended March 31, 2016 was ¥105,033 million ($932,135 thousand).

10

NAKANO CORPORATION

m. Cash and Cash Equivalents in the Consolidated Statements of Cash Flows
In preparing the consolidated statements of cash flows, cash and cash equivalents include cash on
hand, readily-available deposits and short-term highly liquid investments with maturities less than
three months at the time of acquisition that are exposed to insignificant risk of changes in value.
n. Changes in Accounting Policies(Application of the accounting standards for business combinations, etc.)
The Company applied “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
revised on September 13, 2013), “Accounting Standard for Consolidated Financial Statements”(ASBJ Statement No. 22, revised on September 13, 2013) and “Accounting Standard for Business
Divestitures” (ASBJ Statement No. 7, revised on September 13, 2013) from the current fiscal year.
As a result, certain changes were implemented in the presentation of items previously presented
as “Net income” and other. And also, the previous presentation of “minority interests” was changed
to “non-controlling interests”. To reflect the said changes in presentation, the Company has
reclassified the Consolidated Financial Statements for the previous fiscal year.
o. Accounting Standards not yet Applied“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26,
revised on March 28, 2016)
1) Overview
Following the framework in Auditing Committee Report No. 66 “Audit Treatment regarding the
Judgment of Recoverability of Deferred Tax Assets,” which prescribes estimation of deferred tax
assets according to the classification of the entity into five categories, the following treatments
were reviewed as required.
a) Treatment for an entity that does not meet any of the criteria in Categories 1 to 5;b) Criteria for Categories 2 and 3;c) Treatment for deductible temporary differences which an entity classified as Category 2 isunable to schedule;d) Treatment for reasonable estimation period for future taxable income before adjusting
temporary differences for an entity classified as Category 3; ande) Treatment when an entity classified as Category 4 also meets the criteria for Category 2 or 3.
2) Scheduled date of application
Effective from the beginning of the year ending March 31, 20173) Effects of application of the Guidance
The Company is in the process of measuring the effects at the time of preparing theaccompanying consolidated financial statements.

4.	Notes to

1. The assets pledged as collateral and collateralized liabilities were as follows:

Consolidated
Balance Sheets

Millions of yen
As of March 31

Cash and deposits
Notes receivableThousands of
U.S. dollars

2015

2016

2016

¥202

¥202

$1,792

950

450

3,993

Buildings

1,580

1,490

13,223

Land

8,204

8,076

71,671

Investment securities

1,800

1,488

13,205

Total¥12,737¥11,708$103,904

Short-term loans payable¥1,970¥3,130$27,777

Long-term loans payable

2,460

—

—

¥4,430¥3,130$27,777

Total

The following assets included in the above were deposited as security for dealing:
Millions of yen
As of March 31

Investment Securities

Thousands of
U.S. dollars

2015

2016

2016

¥9

¥9

$79

ANNUAL REPORT 201611

2. The Companies were contingently liable for the following:
As of March 31

Guarantees to financial institutions, etc. to ensure
the completion of construction contracts ofNakano Singapore (Pte.) Ltd. and its subsidiaries
Guarantees of deposits
Guarantee on employees’ housing loan
Total

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥5,55941¥3,246—$28,807
—

0

—

—

¥5,601¥3,246$28,807

3.	“Costs on uncompleted construction contracts” which are estimated to recognize losses and“Provision for loss on construction contracts” are to be recorded on a gross basis without
offsetting, if any.

5.	Notes toConsolidated
Statements ofIncome1.	Provision for loss on construction contracts included in “Cost of sales of completed construction
contracts” was as follows:
Millions of yen
For the year ended March 31

Provision for loss on construction contracts

Thousands of
U.S. dollars

2015

2016

2016

¥63

¥—

$—

2.	The ending balance of costs on real estate business reflected the write-down due to the declineof the net realizable value and the following loss on valuation of inventories was included in“Cost of sales on real estate business”:
For the year ended March 31

Loss on valuation of inventories

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥97

¥55

$488

3.	The major components of “Selling, general and administrative expenses” were as follows:
For the year ended March 31

Depreciation
Provision for bonuses
Retirement benefit expenses
Employees’ salaries and allowancesMillions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥197

¥201

$1,783

182

195

1,730

274

193

1,712

2,440

2,626

23,304

4.	Research and development costs included in selling, general and administrative expenses wereas follows:
Millions of yen
For the year ended March 31

Research and development costs

Thousands of
U.S. dollars

2015

2016

2016

¥13

¥13

$115

Millions of yen

Thousands of
U.S. dollars

5.	“Gain on sales of non-current assets” consisted of the following:
For the year ended March 31

2015

2016

2016

¥12

¥—

$—

Buildings

500Vehicles

10

4

35

Land

12

NAKANO CORPORATION

Other

0

0

0

Total

¥28

¥4

$35

6.	The Companies recognized impairment loss as follows:
Millions of yen
Use

Location

Rental properties Miyagi Pref.

Rental properties Hyogo Pref.

Type

Thousands of
U.S. dollars

2015

2016

2016

Buildings

¥—

¥50

$443

Fixtures—00Demolition costs

—

125

1,109

Total

¥—

¥175

$1,553

Land

—

3

26

Buildings
Total
Total

7

2

17

¥7

¥5

$44

¥7

¥181

$1,606

The Companies are grouping their assets by the performance management unit for construction
business and by the individual asset for real estate business and other.
With respect to the rental properties owned by the Company which are grouped into rental
properties of the real estate business, carrying amounts were reduced to memorandum value
since they are planned to be dismantled based on the decision of reconstructing and the reduced
amounts and demolition costs were recorded as impairment loss under extraordinary loss. The
recoverable amount of these assets is calculated regarding the value in use as zero due todemolition.
With respect to the rental properties owned by a consolidated subsidiary which are grouped
into rental properties of the real estate business, carrying amounts were reduced to recoverable
amounts due to the decline of profitability and the reduced amounts were recorded as impairment
loss under extraordinary loss. The recoverable amount of such assets is measured by the net
selling value, which is determined based on the appraisal value by an independent real estateappraiser.

6.	Notes toConsolidated
Statements ofComprehensive
IncomeReclassification adjustments and tax effects related to other comprehensive income were as
follows:
For the year ended March 31

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥348

¥(287)$(2,547)

52

(28)

(248)

Valuation difference on available-for-sale securities
Amount arising during the year
Reclassification adjustments
Total before tax effect

400

(315)

(2,795)

Tax effect

(107)

115

1,020

Valuation difference on available-for-sale securities

292

(200)

(1,774)

888

(938)

(8,324)Foreign currency translation adjustments
Amount arising during the year
Reclassification adjustments
Total before tax effect

—

389

3,452

888

(549)

(4,872)

Tax effect

—

—

—

Foreign currency translation adjustments

888

(549)

(4,872)

482

(406)

(3,603)Remeasurements of defined benefit plans
Amount arising during the year
Reclassification adjustments
Total before tax effect

86

46

408

569

(359)

(3,186)

Tax effect

—

—

—

Remeasurements of defined benefit plans

569

(359)

(3,186)¥1,750¥(1,109)$(9,842)

Total other comprehensive income

ANNUAL REPORT 201613

7.	Notes toConsolidated
Statements of Cash
Flows

The reconciliation between “Cash and cash equivalents” reported in the consolidated statementsof cash flows and “Cash and deposits” reported in the consolidated balance sheets was asfollows:
As of March 31

Cash and deposits per consolidated balance sheets
Less: Time deposits maturing over three months
Cash and cash equivalents per consolidated statementsof cash flows

8.	Financial
Instruments

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥25,641¥30,971$274,858(2,646)(1,642)(14,572)¥22,995¥29,329$260,285

1. Overview
1) Policy for financial instruments
The Companies raise operating funds primarily through bank loans and bond issues. Temporary
fund surpluses are managed principally through short-term deposits with little risk. Under thepolicy of the Companies, the Companies use derivatives only for the purpose of reducing foreignexchange fluctuation risks associated with foreign currency denominated transactions and interest
rate fluctuation risks associated with loans payable, and not for speculative purposes.
2) Types of financial instruments, risk and risk management
The Companies control risks by type of financial instruments in accordance with the risk
management policy.
Regarding credit risk associated with notes receivable and accounts receivable fromcompleted construction contracts, the Companies identify major customers’ credit status bymonitoring the payment terms and credit balances by each customer.
Regarding investment securities, principally consisting of equity securities, the Companies
regularly identify the quoted market price of the listed securities to manage the risks arising frommarket value fluctuations.
The Companies manage liquidity risk associated with loans payable by appropriately planningfor fund raising based on monthly cash flow projections.
Regarding derivative transactions, the Companies execute and control the transactions basedon the internal control rules which define the transaction authority and limits and enter into
contracts with only the high credit rating financial institutions to reduce credit risk.
3) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is determined based on the market price or reasonableestimated amount if there is no market price. Certain assumptions are used for calculation of suchfair value, and accordingly, the result of such calculation may vary, if different assumptions are
used.

14

NAKANO CORPORATION2. Fair value of financial instruments
The carrying amount, fair value and difference of the financial instruments as of March 31, 2015
and 2016 were as follows:
Note that the financial instruments whose fair value is extremely difficult to determine were notincluded in the following table (See Note 2 of the below table):
Millions of yen
As of March 31, 2015

(1) Cash and deposits(2)	Notes receivable, accounts receivable fromcompleted construction contracts and other

Carrying amount

Fair value

Difference¥25,641¥25,641¥—29,451

29,451—(3)	Investment securities
Held-to-maturity securities

9

10

0

Available-for-sale securities

1,995

1,995

—

Assets total

57,09857,0990(1)	Notes payable, accounts payable forconstruction contracts and other

45,05045,050—(2) Short-term loans payable

3,036

3,036

—

(3) Long-term loans payable

2,628

2,628

—

Liabilities total

50,71450,714————

Carrying amount

Fair value

Difference(1) Cash and deposits(2)	Notes receivable, accounts receivable from¥30,971¥30,971¥—completed construction contracts and other(3) Investment securities
Held-to-maturity securities
Available-for-sale securities

21,622

21,622

—

9
1,676

10
1,676

0
—

Assets total

54,28054,2800(1)	Notes payable, accounts payable forconstruction contracts and other(2) Short-term loans payable

35,0093,768

35,0093,768——

Liabilities total
Derivative transactions

38,777—

38,777———

Derivative transactions

Millions of yen
As of March 31, 2016

ANNUAL REPORT 201615

Thousands of U.S. dollars
As of March 31, 2016

Carrying amount

Fair value

Difference(1) Cash and deposits(2)	Notes receivable, accounts receivable from$274,858$274,858$—completed construction contracts and other(3) Investment securities
Held-to-maturity securities
Available-for-sale securities

191,888

191,888—

79
14,87388
14,8738—

Assets total

481,700

481,7098(1)	Notes payable, accounts payable forconstruction contracts and other(2) Short-term loans payable

310,694
33,439310,694
33,439——Liabilities total
Derivative transactions

344,133—

344,133———(Notes): 1.	Method used for determining the fair value of the financial instruments and matters regarding securities
and derivative transactions:
Assets:(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction
contracts and other
The carrying amount is presented as the fair value, since the fair value approximates the carrying amountbecause they will be settled within a short period of their maturity.
(3) Investment securities
The fair value of equity securities is determined based on the quoted price of the exchanges, the fair valueof investment trust is determined based on the published standard quotation price and the fair value ofdebt securities is determined based on the published price by the Japan Securities Dealers Association.
Notes regarding investment securities classified by the management’s intent of holding are described in
Note 9 “Securities”.
Liabilities:(1) Notes payable, accounts payable for construction contracts and other and (2) Short-term loans payable
The carrying amount is presented as the fair value, since the fair value approximates the carrying amountbecause they will be settled within a short period of their maturity.
(3) Long-term loans payable
The carrying amount is presented as the fair value, since the fair value approximates the carrying amountbecause their interest rates will be reset within a short period of their maturity.
2.	Carrying amounts of financial instruments for which it is extremely difficult to identify the fair value were as
follows:
Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥ 1,210¥1,210$10,738

As of March 31

Unlisted equity securities

Above financial instruments were not included in “(3) Investment securities” in the above table, since there
is no market price and their fair value is extremely difficult to identify.
3.	Redemption schedule for monetary assets and securities with contractual maturities after balance sheet
date was as follows:
Millions of yen

As of March 31, 2015

Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts and other

Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years

Due after ten
years¥25,641

¥—

¥—

¥—

29,451

—

—

—

—

9

—

—

Investment securities:
Held-to-maturity securities(Japanese government bonds)
Available-for-sale securities
with contractual maturities
Total

16

NAKANO CORPORATION

—

4

—

—

¥55,093

¥14

¥—

¥—

Millions of yen
Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years

Due after ten
years¥30,971

¥—

¥—

¥—

21,622———

Held-to-maturity securities(Japanese government bonds)

—

9

—

—

Available-for-sale securities
with contractual maturities

3

—

—

—

¥52,597

¥9

¥—

¥—

Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years

Due after ten
years$274,858

$—

$—

$—

191,888———

Held-to-maturity securities(Japanese government bonds)

—

79

—

—

Available-for-sale securities
with contractual maturities

26

—

—

—

$466,782

$79

$—

$—

As of March 31, 2016

Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts and other
Investment securities:

Total

Thousands of U.S. dollars

As of March 31, 2016

Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts and other
Investment securities:

Total

4.	Repayment schedule of short-term loans payable and long-term loans payable after balance sheet date
was as follows:
Millions of yen
Due after
Due after
Due after
one year
two years three years
through two through three through four
years
years
years

Due after
four years
through five Due after five
years
years

As of March 31, 2015

Due in one
year or less

Short-term loans payable¥3,036 ¥— ¥— ¥— ¥— ¥—Long-term loans payable

—

2,628

—

—

—

—

Millions of yen
Due after
Due after
Due after
one year
two years three years
through two through three through four
years
years
years

As of March 31, 2016

Due in one
year or less

Short-term loans payable¥ 3,768 ¥

— ¥

— ¥

Due after
four years
through five Due after five
years
years

— ¥

— ¥

—

Thousands of U.S. dollars
Due after
Due after
Due after
one year
two years three years
through two through three through four
years
years
years

Due after
four years
through five Due after five
years
years

As of March 31, 2016

Due in one
year or less

Short-term loans payable$33,439 $— $— $— $— $—

ANNUAL REPORT 201617

9. Securities

1.	Investment securities as of March 31, 2015 and 2016 consisted of the following:Thousands of
U.S. dollars

Millions of yen
As of March 31

Held-to-maturity securities
Available-for-sale securities with market value
Total

2015

2016

2016

¥9

¥9

$79

1,995

1,676

14,873¥2,005¥1,686$14,962

2.	The carrying amount and fair value of held-to-maturity debt securities as of March 31, 2015 and2016 were as follows:
Millions of yen
As of March 31, 2015

Japanese government bonds

Carrying amount

Unrealized gain

Unrealized loss

Fair value

¥9

¥0

¥—

¥10

Carrying amount

Unrealized gain

Unrealized loss

Fair value

¥9

¥0

¥—

¥10

Carrying amount

Unrealized gain

Unrealized loss

Fair value

$79

$8

$—

$88

Millions of yen
As of March 31, 2016

Japanese government bonds

Thousands of U.S. dollars
As of March 31, 2016

Japanese government bonds

3.	The carrying amount (fair value) and acquisition cost of available-for-sale securities as of March
31, 2015 and 2016 were as follows:
Millions of yen
As of March 31, 2015

Carrying amount

Unrealized gain

Unrealized loss

Acquisition cost

Equity securities¥1,991¥1,136

¥(0)

¥854

Other

4

2

—

1

Total

¥1,995¥1,139

¥(0)

¥856

As of March 31, 2016

Carrying amount

Unrealized gain

Unrealized loss

Acquisition cost

Equity securities

Millions of yen¥1,672¥834¥(12)

¥851

Other

3

1

—

1

Total

¥1,676¥835¥(12)¥853

As of March 31, 2016

Carrying amount

Unrealized gain

Unrealized loss

Acquisition cost

Equity securities

Thousands of U.S. dollars$14,838$7,401$(106)$7,552

Other

26

17

—

8

Total

$14,873$7,410$(106)$7,570(Note)	“Unlisted equity securities” in an amount of ¥1,210 million ($10,738 thousand) as of March 31, 2015 and 2016
were not included in available-for-sale securities in the above table, since there is no market price and their fairvalue is extremely difficult to identify.

18

NAKANO CORPORATION

4.	Available-for-sale securities which were sold during the years ended March 31, 2015 and 2016
were as follows:
Millions of yen
For the year ended March 31

Thousands of
U.S. dollars

2015

2016

2016

¥3

¥33

$292

Gain on sales

1

28

248

Loss on sales

—

—

—

Sales proceeds

5.	Securities on which impairment loss was recognized during the years ended March 31, 2015
and 2016 were as follows:
For the year ended March 31, 2015:
The Company recognized impairment loss on available-for-sale securities in an amount of ¥53
million.
For the year ended March 31, 2016:
There were no securities on which impairment loss was recognized.
If the fair value of available-for-sale securities with market value declines by 30% to 50% of theacquisition cost, the Company judges the recoverability, considering the current status of theissuing companies and the market value trends, and recognizes impairment loss, unless therecovery is reasonably expected.

10.	Retirement
Benefits

1. Outline of the Company’s retirement benefit plans
The Company has defined benefit plans that consist of a defined benefit corporate pension plan
and a lump-sum retirement benefit plan and also defined contribution pension plans. Certain
consolidated subsidiaries have unfunded defined benefit plans and lump-sum benefit plans.
Furthermore, the Company may pay additional retirement benefits upon the retirement ofcertain employees.
With respect to lump-sum benefit plans adopted by certain consolidated subsidiaries, net
defined benefit liability and retirement benefit expenses are calculated by the short-cut method.
The Company participates in Tokyo Construction Welfare Pension Fund as a multi-employer
plan. If the plan assets corresponding to the Company’s contribution cannot be reasonably
determined, such plan is accounted for in the same manner as the defined contribution plans.
Tokyo Construction Welfare Pension Fund in which the Company participated was dissolvedon November 20, 2015 with the approval of the Minister of Health, Labour and Welfare. Any
additional burden amount resulting from the dissolution of the Fund is not anticipated.
2. Defined Benefit Plans
1)	The changes in projected benefit obligations for the years ended March 31, 2015 and 2016 wereas follows (excluding the plans to which a short-cut method was applied):
For the year ended March 31

Beginning balance of projected benefit obligations
Cumulative effects of changes in accounting
policies
Restated balance of projected benefit obligations
Service cost
Interest cost

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥4,991¥4,003$35,525

(616)

—

—

¥4,374¥4,003$35,525

246

260

2,307

39

39

346

Actuarial differences

(191)

249

2,209

Retirement benefits paid

(464)

(486)

(4,313)

—

110

976

Transfer from short-cut method to standard
methodOther
Ending balance of projected benefit obligations

—

(8)

(70)

¥4,003¥4,169$36,998

ANNUAL REPORT 2016192)	The changes in plan assets for the years ended March 31, 2015 and 2016 were as follows(excluding the plans to which a short-cut method was applied):
Millions of yen
For the year ended March 31

Thousands of
U.S. dollars

2015

2016

2016

Beginning balance of plan assets¥3,268¥3,468$30,777

Expected return of plan assets

32

69

612

Actuarial differences

291

(157)

(1,393)Contribution from the employer

340

335

2,973

Retirement benefits paid

(464)

(485)

(4,304)¥3,468¥3,230$28,665

Ending balance of plan assets3)	The changes in net defined benefit liability of the plans to which the short-cut method wasapplied for the years ended March 31, 2015 and 2016 were as follows:
For the year ended March 31

Beginning balance of net defined benefit liability

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥154

¥201

$1,783Retirement benefit expenses

54

5

44

Retirement benefits paid

(7)

(21)

(186)

Transfer from short-cut method to standard
method

—

(110)

(976)

Ending balance of net defined benefit liability

¥201

¥75

$665

4)	Reconciliation between the ending balances of projected benefit obligations and plan assets andnet defined benefit liability recorded in the consolidated balance sheet as of March 31, 2015 and2016 were as follows:
Millions of yen
As of March 31

Funded projected benefit obligations
Plan assets

Thousands of
U.S. dollars

2015

2016

2016

¥4,003¥4,020$35,676(3,468)(3,230)(28,665)

¥535

¥789

$7,002

201

224

1,987

Net liability recorded in the consolidated balance
sheet

¥736

¥1,014$8,998

Net defined benefit liability¥736¥1,014$8,998

Net liability recorded in the consolidated balance
sheet

¥736

¥1,014$8,998

Unfunded projected benefit obligations(Note) Above amounts include plans to which the short-cut method is applied.

5)	The components of retirement benefit expenses for the years ended March 31, 2015 and 2016
were as follows:
Millions of yen
For the year ended March 31

Service cost

NAKANO CORPORATION

2015

2016

2016

¥246

¥260

$2,307

Interest cost

39

39

346

Expected return of plan assets

(32)

(69)

(612)
408

Amortization of actuarial differences

86

46

Retirement benefit expenses computed byshort-cut method

54

5

Other

—

(8)

(70)

¥394

¥275

$2,440Retirement benefit expenses on defined benefit
plans

20

Thousands of
U.S. dollars

446)	The component of “Remeasurements of defined benefit plans” under “Other comprehensive
income” (before adjusting for tax effects) for the years ended March 31, 2015 and 2016 was asfollows:
For the year ended March 31

Actuarial differences

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥569

¥(359)$(3,186)

7)	The component of “Remeasurements of defined benefit plans” under “Accumulated othercomprehensive income” (before adjusting for tax effects) as of March 31, 2015 and 2016 was asfollows:
Millions of yen
As of March 31

Unrecognized actuarial differences

Thousands of
U.S. dollars

2015

2016

2016

¥(186)¥(546)$(4,845)8)	Plan assets
a. Components of plan assets
Plan assets as of March 31, 2015 and 2016 consisted of the following:
As of March 31

2015

2016

Bonds

61%

42%

Equity securities

26

44

Insurance assets (general account)

10

10

Other

3

4

Total

100

100

b.	Method of determining the long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined considering allocation ofplan assets which are expected currently and in the future and the long-term rates of return
which are expected currently and in the future from the various components of the plan
assets.
9)	Actuarial assumptions used for the years ended March 31, 2015 and 2016 were set forth asfollows:
For the year ended March 31

2015

2016

Discount rate

0.7%

0.1%

Long-term expected rate of return on plan assets

1.0

2.0

3. Defined Contribution Plans
The amount of the required contribution to the defined contribution plans of the Company for theyears ended March 31, 2015 and 2016 was as follows:
For the year ended March 31

Required contribution to the defined contribution
plans

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥55

¥62

$550

4. Multi-employer Plans
The amount of the required contribution to the Welfare Pension Fund Plans of multi-employer plans
which were accounted for in the same manner as defined contribution plans for the years ended
March 31, 2015 and 2016 was as follows:
For the year ended March 31

Required contribution to the Welfare Pension Fund
Plans

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥219

¥105

$931

(Note): The amount of the required contribution for the year ended March 31, 2016 is presented using the amount ofcontribution up to October 2015 because the said fund was dissolved.
ANNUAL REPORT 201621

11.	Deferred Tax
Accounting

1.	The significant components of deferred tax assets and liabilities as of March 31, 2015 and 2016
were as follows:
Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥142

¥142

$1,260

195

259

2,298

As of March 31

Deferred tax assets:
Provision for bonuses
Net defined benefit liability
Allowance for doubtful accounts

66

61

541

Loss on valuation of real estate for sale

291

289

2,564

Provision for loss on construction contracts

32

—

—

Accounts payable for construction contracts

—

274

2,431

Impairment loss

1,509

1,464

12,992

Tax loss carryforwards

1,342

1,270

11,270

Other

303

357

3,168

Subtotal

3,883

4,119

36,554(3,822)(4,096)(36,350)

¥60

¥22

$195

¥(369)¥(253)$(2,245)

subsidiaries

(367)

(362)

(3,212)

Other

(39)

(16)

(141)

Deferred tax liabilities¥(775)¥(632)$(5,608)

Net deferred tax liabilities¥(715)¥(609)$(5,404)

Less: valuation allowance
Deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-salesecurities
Undistributed earnings of foreign consolidated

2.	A reconciliation between the normal effective statutory tax rates and the actual effective tax
rates reflected in the consolidated statements of income as of March 31, 2015 and 2016 wereas follows:
As of March 31

2015

2016

Normal effective statutory tax rate

35.6%

33.0%

Expenses not deductible income tax purposes

2.3

1.8

Tax rate differences in foreign consolidated subsidiaries

(6.9)

(9.6)

Undistributed earnings of foreign consolidated subsidiaries

2.1

(0.1)

Effects of liquidation of an overseas subsidiary—(14.3)

Inhabitant per capita taxes

1.0

0.7

Income taxes for prior periods

0.8

12.9

Valuation allowance(13.1)

(2.1)

Other

(0.4)

0.4

Actual effective tax rate

21.4

22.7

3.	Adjustments of deferred tax assets and liabilities due to a change in the corporate income tax
rate
On March 29, 2016, the “Act for Partial Revision of the Income Tax Act, etc.” and the “Act on
Partial Revision of the Local Tax Act, etc.” were enacted at the National Diet and the normal
effective statutory tax rate used in computing deferred tax assets and liabilities has been reduced
from 32.3% to 30.9% for the temporary differences estimated to be settled in the years from April
1, 2016 through March 31, 2018 and 30.6% for those estimated to be settled in the years
beginning on and after April 1, 2018.
As a result, deferred tax liabilities (net of deferred tax assets), and income taxes - deferred
decreased by ¥19 million ($168 thousand) and ¥6 million ($53 thousand), respectively, andvaluation difference on available-for-sale securities increased by ¥13 million ($115 thousand).

22

NAKANO CORPORATION

12.	Investment andRental Properties

1.	The Company and certain consolidated subsidiaries own office buildings, commercial facilities
and residual units for lease in Tokyo and other areas. Rental income from these real estate
properties for lease for the years ended March 31, 2015 and 2016 were ¥530 million and ¥554
million ($4,916 thousand), respectively. Rental income and related costs were included in “Sales
on real estate business” and “Cost of sales on real estate business”, respectively, in theaccompanying consolidated statements of income for the years ended March 31, 2015 and2016. In addition, impairment losses for the years ended March 31, 2015 and 2016 were ¥7
million and ¥181 million ($1,606 thousand), respectively. Impairment losses were included in“Extraordinary losses.”
2.	The carrying amounts, changes in such balances during the year and fair values of suchproperties were as follows:
As of March 31

Carrying amounts(Note 1):

Beginning balance
Increase (decrease) (Note 2)
Ending balance

Fair value (Note 3)

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥10,701¥10,509$93,264

(192)

(111)

(985)

¥10,509¥10,398$92,279¥13,041¥13,330$118,299(Notes): 1.	The carrying amount is presented after deducting accumulated depreciation from the acquisition cost.
2.	Increase during the year ended March 31, 2015 primarily represents the change in holding purpose frominternal use to investment of ¥22 million and the acquisition of real estate of ¥18 million and decrease is
primarily due to sale of real estate of ¥87 million, the change in holding purpose from investment to internal
use of ¥43 million and depreciation of ¥119 million.
	Increase during the year ended March 31, 2016 primarily represents the acquisition of real estate of ¥83
million ($736 thousand) and decrease is primarily due to impairment loss of ¥45 million ($399 thousand),the change in holding purpose from investment to internal use of ¥34 million ($301 thousand) anddepreciation of ¥113 million ($1,002 thousand).
3.	The fair values of major properties are determined based on the real estate appraisal value by independent
real estate appraisers and the fair values of other properties are determined based on the value inaccordance with “Japanese Real Estate Appraisal Standard” as well as internal appraisal.

13.	Segment
Information

1.	Description of reportable segments
The Companies’ reportable segments are those for which separate financial information isavailable and regular evaluation by the Board of Directors is being performed in order to decide
how resources are allocated among the Companies.
The Companies are active in the construction business and the real estate business in Japanand foreign countries.
Therefore, the Companies consist of regional segments which are based on each business.
Reportable segments of the construction business are “Japan” and “Southeast Asia (Singapore,
Malaysia, Indonesia, Thailand and Vietnam etc.)”, and those of the real estate business are“Japan” and “North America (USA)”.
2.	Methods of measurement for the amounts of sales, income (loss), assets and other items foreach reportable segment
The accounting policies of each reportable segment are consistent to those disclosed in Note 3,“Summary of Significant Accounting Policies”.

ANNUAL REPORT 201623

3.	Information on sales, income (loss), assets and other items for each reportable segment was asfollows:
Millions of yen
Reportable segments
Construction
For the year ended
March 31, 2015

Southeast
Japan
Asia

Total

Real estate
Japan

North
America

Other(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net sales:
Customers¥80,466 ¥43,705 ¥124,172 ¥1,054 ¥— ¥1,054¥33 ¥125,260 ¥— ¥125,260

1

14

15

0

—

0

—

16

(16)

—

Total

80,46843,720124,188

1,055

—

1,055

33

125,276(16)

125,260

Segment income(loss)
Segment assets

1,620
25,332

1,367
28,474

2,988
53,806396
11,169

(2)
1,902

393
13,072

(14)
410

3,367
67,288—
11,1303,367
78,419Inter-segment

Other items:
Depreciation¥136 ¥95 ¥232 ¥124 ¥— ¥124¥1 ¥358 ¥— ¥358

Impairment loss

—

—

—

7

—

7

—

7

—

7

Increase in property,
plant, and equipment
and intangible assets

87

108

195

55

—

55

302

554

—

554

(Notes): 1. “Other” is a business segment not included in the reportable segments such as insurance agent business.
2.	An adjustment of “Segment assets” in an amount of ¥11,130 million was corporate assets which were notallocated to each reportable segment and consisted of surplus fund (cash and deposits) and long-term
investment fund (investment securities and insurance funds) of the Company.
3.	Segment income (loss) is reconciled with operating income in the accompanying consolidated statements
of income.
Millions of yen
Reportable segments
Construction
For the year ended
March 31, 2016

Southeast
Japan
Asia

Total

Real estate
Japan

North
America

Other(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net sales:
Customers¥73,368 ¥40,532 ¥113,901 ¥1,013 ¥— ¥1,013¥73 ¥114,989 ¥— ¥114,989

Inter-segment

18

20

38

—

—

—

—

38

(38)

—

Total
Segment income(loss)
Segment assets

73,38640,553113,939

1,013

—

1,013

73

115,027(38)

114,989

3,076
18,402

1,963
27,391

5,040
45,794455
10,974(6)—448
10,974

(7)
541

5,481
57,310—16,666

5,481
73,976

Other items:
Depreciation

24

NAKANO CORPORATION¥142 ¥85 ¥227 ¥118 ¥— ¥118¥40 ¥385 ¥— ¥385

Impairment loss

38

—

38

142

—

142

—

181

—

181

Increase in property,
plant, and equipment
and intangible assets

17

68

86

52

—

52

159

297

—

297

Thousands of U.S. dollars
Reportable segments
Construction
For the year ended
March 31, 2016

Southeast
Japan
Asia

Total

Real estate
Japan

North
America

Other(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net sales:$ 651,118 $ 359,708 $1,010,835 $

8,990 $

— $8,990 $647 $1,020,491 $

— $1,020,491

159

177

337

—

—

—

—

337

(337)

Total

651,277

359,895

1,011,173

8,990

—

8,990

647

1,020,828

Segment income(loss)
Segment assets

27,298163,312

17,421
243,086

44,728406,407

4,037
97,390

(53)
—

3,975
97,390(62)
4,801

48,642508,608

Customers
Inter-segment—(337) 1,020,491—
147,905

48,642656,514

Other items:
1,260 $754 $

2,014 $

1,047 $

— $1,047 $354 $

3,416 $

— $

3,416

Impairment loss

$

337

—

337

1,260

—

1,260

—

1,606

—

1,606

Increase in property,
plant, and equipment
and intangible assets

150

603

763

461

—

461

1,411

2,635

—

2,635

Depreciation(Notes): 1.	“Other” is a business segment not included in the reportable segments, which consists of solar power
generation business and insurance agent business.
2.	An adjustment of “Segment assets” in an amount of ¥16,666 million ($147,905 thousand) was corporate
assets which were not allocated to each reportable segment and consisted of surplus fund (cash anddeposits) and long-term investment fund (investment securities and insurance funds) of the Company.
3.	Segment income (loss) is reconciled with operating income in the accompanying consolidated statements
of income.

14.	Per ShareInformation

Basic net income per share is computed based on the weighted average number of shares ofcommon stock outstanding during the year. Diluted net income per share was not presented forthe years ended March 31, 2015 and 2016 since the Company had no potentially dilutive shares
outstanding as of the balance sheet dates.
Net assets per share is computed based on the number of shares of common stock
outstanding as of the balance sheet dates.
Net assets and net income per share for the years ended March 31, 2015 and 2016 were as
follows:
Yen

U.S. dollars

For the year ended March 31

2015

2016

2016

Net assets per share¥493.98¥577.61$5.1379.04

115.96

1.03

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥18,110¥20,880$185,303

Basic net income per share(Notes): 1. Net assets per share was calculated based on the following information:

As of March 31

Total net assets
Deductions from total net assets:(1,128)(1,024)(9,087)

Net assets attributable to common stock¥16,981¥19,855$176,206

Number of shares of common stock usedin computing net assets per share(in thousand shares)

34,377

34,37534,375

Non-controlling interests

ANNUAL REPORT 201625

2. Net income per share was calculated based on the following information:
Millions of yen
For the year ended March 31

Profit attributable to owners of parent
Amount not attributable to common stock
shareholders
Profit attributable to common stock ofowners of parent
Average number of shares of common
stock during the year (in thousand shares)

15. Bonds Payable

Thousands of
U.S. dollars

2015

2016

2016

¥2,717¥3,986$35,374———¥ 2,717¥3,986$35,374

34,377

34,37634,376

Short-term and long-term bonds payable as of March 31, 2015 and 2016 consisted of thefollowing:
Millions of yen

Issuer and Issue type

Thousands of
U.S. dollars

Issue date

2015

2016

2016

Sep.30, 2013

280

200
(80)

1,774
(709)

¥280 ¥200(80)$1,774(709)

Interest
rate(%)

Collateral

Maturity(Nakano Corporation)
7th unsecured bond

Total

0.64

None Sep. 28, 2018

(Notes): 1. ( ) denotes the amount expected to be redeemed within one year.
2.	The following was a summary of maturities of bonds subsequent to March 31, 2016:
Years ending March 31

Millions of yen

Thousands of
U.S. dollars

2017

¥80

$709

2018

80

709

2019

40

354

2020

—

—

2021

—

—

2022 and thereafter
Total

26

NAKANO CORPORATION

—

—

¥200

$1,77416.	Loans Payable and Short-term loans payable, long-term loans payable and other debts as of March 31, 2015 andOther Debts

2016 were as follows:

Millions of yen

As of March 31

Thousands of
U.S. dollars

2015

2016

2016

Averageinterest rate(%)

Maturity

Short-term loans payable¥2,450¥1,740$15,441

1.66—

Current portion of
long-term loans payable

586

2,028

17,997

2.01—

Current portion of leaseobligations

93

92

816

—

—

Long-term loans payable
excluding current portion

2,628

—

—

—

—

Lease obligations
excluding current portion

196

111

985

Apr. 30, 2017 –— Feb. 28, 2021

¥5,954¥3,972$35,250

Total

—

—

(Notes):1.	“Average interest rate” represents the weighted average interest rate on loans payable outstanding as of
the balance sheet date. “Average interest rate” of lease obligations is not shown since interest equivalentamounts included in the aggregated lease premiums are allocated to each fiscal year using the straightline method.
2.	The following was a summary of annual maturities of loans payable and lease obligations subsequent toMarch 31, 2016:
Millions of yen
Years ending March 31

Lease
obligations

Long-termloans payableLease
obligations2017¥2,028¥92$17,997

$816

2018

—

74

—

656

2019

—

28

—

248

2020

—

7

—

62

2021

—

0

—

0

2022 and thereafterTotal

17.	Subsequent
Events18.	Other Information

Thousands of U.S. dollars

Long-termloans payable

—

—

—

—

¥2,028¥204$17,997$1,810At the Annual General Meeting of Shareholders held on June 29, 2016, it was resolved to distributethe year-end cash dividends of ¥7 ($0.06) per share of common stock of the Company.
The aggregate amount of such cash dividends was ¥240 million ($2,129 thousand).
A Japanese company brought an action against the Company to claim payment of approx. ¥1.7
billion ($15,086 thousand) as compensation for damage in place of rectification of defects on the
grounds that there existed defects on the buildings for which the Company has defect liability.
However, the amount claimed was reduced to approx. ¥670 million ($5,946 thousand) due to arequest for amendment of claim in January 2016.
The Company was sentenced, in the first instance on April 28, 2016, to pay approx. ¥30 million($266 thousand) as costs to rectify certain portion of the claimed defects. The said Japanesecompany filed an appeal against this judgment to the Tokyo High Court on May 20, 2016.
The Company intends continuously to cope with the appeal appropriately.

ANNUAL REPORT 201627

SUPPLEMENTAL INFORMATIONNONCONSOLIDATED BALANCE SHEETSNAKANO CORPORATIONAs of March 31, 2015 and 2016

AssetsCurrent assets:
Cash and deposits
Notes receivable - trade
Accounts receivable from completed construction contracts
Costs on uncompleted construction contracts
Costs on real estate business
Raw materials and supplies
Short-term loans receivable from subsidiaries and affiliates
Accounts receivable - otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy, claims provable in rehabilitationand other
Insurance funds
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
28

NAKANO CORPORATION

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥5,676
1,808
19,138
953
85
6
10
336
2,249
815
(114)
30,966¥13,801
2,939
9,696
2,135
43
5
10
637
—
636
(120)
29,785$122,479
26,082
86,04818,947
381
44
88
5,653
—
5,644
(1,064)
264,332

6,578(3,747)
2,831
144
(102)
42
116
(114)
2
11
(3)
8
281
(252)
29
9,649
235
(85)
150
324
13,0386,573(3,856)
2,716
144
(109)
34
562
(149)
412
11
(5)
5
304
(266)
37
9,649
239
(134)
105
—
12,96258,333(34,220)
24,103
1,277
(967)
301
4,987
(1,322)
3,656
97
(44)
44
2,697
(2,360)328
85,631
2,121(1,189)931—
115,033

306

253

2,245

3,089
2,670
621

2,773
1,186
610

24,60910,525
5,413

32
31
376
(347)
6,474
19,818¥50,784

32
31
333
(364)
4,602
17,818¥47,604

283
275
2,955
(3,230)40,841
158,129$422,470

Liabilities
Current liabilities:
Notes payable - trade
Electronically recorded obligations - operating
Accounts payable for construction contracts
Short-term loans payable
Current portion of bonds
Income taxes payable
Accrued consumption taxes
Advances received on uncompleted construction contracts
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities:
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Long-term deposits received
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Common stock
Authorized: 154,792,300 shares
Issued:34,498,097 shares
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Less: Treasury stock, at cost
121,084 shares in 2015 and 122,618 shares in 2016
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥11,687
3,801
11,706
3,036
80
209
—
4,178
112
98
426
732
36,070¥6,191
4,997
8,107
3,768
80
141
1,990
5,922
110
—
455
1,586
33,351$54,943
44,346
71,94733,439709
1,251
17,66052,555976—
4,037
14,075295,979

200
2,628
340
378
508
350
4,405
40,476

120
—
227
283
495
238
1,365
34,717

1,064
—
2,014
2,511
4,392
2,112
12,113308,102¥5,061¥5,061$44,914

1,400
1,400

1,400
1,400

12,424
12,424

3,167
3,167

5,945
5,945

52,76052,760

(30)
9,599

(31)
12,376(275)
109,833

708
708
10,308510
510
12,886

4,526
4,526
114,359¥ 50,784¥ 47,604$ 422,470
ANNUAL REPORT 2016

29

NONCONSOLIDATED STATEMENTS OF INCOME
NAKANO CORPORATION
For the years ended March 31, 2015 and 2016

Net sales:
Net sales of completed construction contracts
Sales on real estate business
Sales on other businessTotal net sales
Cost of sales:
Cost of sales of completed construction contracts
Cost of sales on real estate business
Cost of sales on other businessTotal cost of sales
Gross profit:
Gross profit on completed construction contracts
Gross profit - real estate business
Gross profit (loss) - other businessTotal gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividend income
Foreign exchange gains
Dividend income of insurance
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Foreign exchange losses
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of investment securities
Gain on liquidation of subsidiaries
Other
Total extraordinary income
Extraordinary losses:
Impairment Loss
Loss on valuation of investment securities
Loss on liquidation of Equipment Center
Other
Total extraordinary losses
Profit before income taxes
Income taxes:
Income taxes - current
Income taxes for prior periods
Refund of income taxes for prior periods
Income taxes - deferred
Total income taxes
Profit30

NAKANO CORPORATION

Millions of yen

Thousands of
U.S. dollars

2015

2016

2016

¥80,468
974—
81,442¥73,386
952
4274,381$651,277
8,448
372
660,108

75,104563—
75,66866,405449
4366,898589,3233,984
381
593,698

5,363
410
—
5,773
4,113
1,659

6,981
502
(0)
7,482
4,288
3,194

61,9544,455(0)66,40038,054
28,345

16
352
149
—
30
549

15
43
—
27
22
108

133
381
—
239
195
958

125
—
—
4
130
2,078

82
13
17
3
117
3,185

727
115
150
26
1,038
28,265

—
—
21
21

26
118
0
144

230
1,047
0
1,277

—
53
48
33
135
1,964

175
—
—
9
185
3,144

1,553
—
—
79
1,641
27,902

198
25
—
(0)
222
¥1,741

208
—
(12)
(0)
195
¥2,949

1,845
—
(106)
(0)
1,730
$26,171CORPORATE PROFILE
As of 31st March 2016

CONTENTS

Company Outline
Company Name
Headquarters
Foundation
Established
Capitalization
Employees
Stock Listing
Primary Business

FINANCIAL HIGHLIGHTS

1

REPORT OF INDEPENDENT AUDITORS

2

CONSOLIDATED BALANCE SHEETS

3

CONSOLIDATED STATEMENTS OF INCOME

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

6

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

7

CONSOLIDATED STATEMENTS OF CASH FLOWS

8NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

9

Board of Directors

SUPPLEMENTAL INFORMATION

28

Honorary Chairman
Vice Chairman
President
Directors

NONCONSOLIDATED BALANCE SHEETS

28

NONCONSOLIDATED STATEMENTS OF INCOME

30

CORPORATE PROFILE

31

NAKANO CORPORATION
4-2-28 Kudan-kita, Chiyoda-ku, Tokyo 102-0073, Japan
8th February 1933
19th December 1942
¥5,061,678,686
1,314
Tokyo Stock Exchange, First Section
Domestic Construction Projects
International Construction Projects

Outside Directors
Standing Corporate Auditors
Corporate Auditors

Yoshikazu Oshima
Akira Asai
Toshiyuki Taketani
Yorinobu Kato
Satoshi Hattori
Moriyasu Kawamura
Toshihide Kurokawa
Shunichi Sato

Koichiro Nakano
Hiroyuki Tanada
Makoto Fukuda
Akihiko Sugaya
Kohei Yamaya

Main Affiliated Financial Institutions
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
The Yamanashi Chuo Bank, Ltd.

Mitsubishi UFJ Trust and Banking Corporation
The Shoko Chukin Bank, Ltd.

Major Shareholders
Oshima Scholarship Foundation
Yoshikazu Oshima
Nakano Investment Fraternity Association
Nakano Employee Shareholder Association

Kanto Kogyo Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Japan Trustee Services Bank, Ltd.(Trust Account)

Domestic Offices
Headquarters
Tohoku Regional OfficeOsaka Regional Office
Civil Engineering Office
Hokkaido Branch Office
Ibaraki Branch Office
Higashi Kanto Branch Office
Sales Offices (Mie, Hyogo, Kita Kyushu)

Tokyo Main Office
Nagoya Regional Office
Kyushu Regional Office
Taito Branch Office
Kita Tohoku Branch Office
Kita Kanto Branch Office
Yokohama Branch OfficeInternational Offices
Nakano Singapore (Pte.) Ltd. (Singapore)
PT. Indonakano (Indonesia)
Nakano Vietnam Co., Ltd. (Vietnam)

Cautionary remarks regarding forward looking statements
This Annual Report includes forward-looking statements that represent Nakano Corporation’s assumptions and expectations inlight of currently available information. These statements reflect industry trends, client’s situations and other factors, and involverisks and uncertainties which may cause actual performance results to differ from those discussed in the forward looking
statements in accordance with changes in the domestic and international business environment.
For further information contact:
Nakano Corporation International Operations Headquarters
4-2-28 Kudan-kita, Chiyoda-ku, Tokyo 102-0073, Japan
Tel: +81-(0)3-3265-4685 Fax: +81-(0)3-3265-4698
www.wave-nakano.co.jp

Nakano Construction Sdn. Bhd. (Malaysia)
Thai Nakano Co., Ltd. (Thailand)

Industry Affiliations
Japan Federation of Construction Contractors
The Associated General Contractors of Tokyo
General Contractors Association of Osaka

National General Contractors Association of Japan
Japan Association of Representative General Contractors

ANNUAL REPORT 201631

Annual Report 2016
Fiscal year ended March 31, 2016

4-2-28 Kudan-kita, Chiyoda-ku, Tokyo, 102-0073, Japan
Tel: +81-(0)3-3265-4685 Fax: +81-(0)3-3265-4698
www.wave-nakano.co.jp
SINGAPORE
1 Coleman St., #06-02 The Adelphi, 179803, Singapore
Tel: +65-6333-4933
Fax: +65-6338-8568

MALAYSIA
Block B, 15-4-2, Megan Salak Park Jalan 1/125E, Taman Desa Petaling, Kuala Lumpur 57100, Malaysia
Tel: +60-3-9059-6977
Fax: +60-3-9059-6277

INDONESIA
1401 Wisma Tamara 14th Floor Jl. Jend. Sudirman KAV. 24, Jakarta 12920, Indonesia
Tel: +62-21-5203674
Fax: +62-21-5203670

THAILAND#17-03, 2170 Bangkok Tower, New Petchburi Road, Bangkapi, Huaykwang, Bangkok 10310, Thailand
Tel: +66-2-308-0500
Fax: +66-2-308-0497

VIETNAM
1411-1412, 14th Floor, Daeha Business Center, 360 Kim Ma Street, Ngoc Khanh Commune, Ba Dinh District, Hanoi, Vietnam
Tel: +84-4-3-724-7552/58
Fax: +84-4-3-724-7553
2nd Floor New Agency Service Center Building 19 Vo Van Tan Street Ward 6, District 3, Ho Chi Minh City, Vietnam
Tel: +84-8-3-930-6501
Fax:+ 84-8-3-930-6499

CHINA
Room 10A3, First World Plaza, Hongli Road West, Shenzhen 518034, China
Tel: +86-755-8296-8491
Fax: +86-755-8296-8493