Annual Report 2021
Fiscal year ended March 31, 2021

Sumitomoichigaya Building 8F 1-1, Ichigayahonmura-cho,Shinjuku-ku,Tokyo, 162-0845, Japan
Tel: +81-(0)3-6774-8594 Fax: +81-(0)3-6774-8615
https://www.wave-nakano.co.jp
SINGAPORE
1 Coleman St., #10-03/04/05 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
Tamara Center 14th Floor Jl. Jend. Sudirman KAV. 24, Jakarta 12920, Indonesia
Tel: +62-21-5203674
Fax: +62-21-5203670

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

VIETNAM
Unit 1411-1412, 14th Floor, Daeha Business Center, 360 Kim Ma Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi, Vietnam
Tel: +84-243-724-7552
Fax: +84-243-724-7553

CORPORATE PROFILECONTENTS

Company Outline (As of March 31, 2021)

FINANCIAL HIGHLIGHTS

1

REPORT OF INDEPENDENT AUDITORS

2

CONSOLIDATED BALANCE SHEETS

6

CONSOLIDATED STATEMENTS OF INCOME

8

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

9CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

10CONSOLIDATED STATEMENTS OF CASH FLOWS

11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

12

SUPPLEMENTAL INFORMATION32

NONCONSOLIDATED BALANCE SHEETS

32

NONCONSOLIDATED STATEMENTS OF INCOME

34

CORPORATE PROFILE

35

Company Name
Headquarters
Foundation
Established
Capitalization
Employees
Stock Listing
Primary Business

NAKANO CORPORATION
Sumitomoichigaya Building 8F 1-1, Ichigayahonmura-cho, Shinjuku-ku, Tokyo 162-0845, Japan
February 8, 1933
December 19, 1942
¥5,061,678,686
1,336(Group)Tokyo Stock Exchange, First Section
Domestic Construction Projects
International Construction Projects
Real Estate Business

Board of Directors / Audit & Supervisory Board Members (As of September 10, 2021)
Honorary Chairman
President
Directors
Outside Directors
Standing Corporate Auditors
Corporate Auditors

Yoshikazu Oshima
Toshiyuki Taketani
Yorinobu Kato
Takashi Iizuka
Moriyasu Kawamura
Mitsuharu Kotaka
Koichiro Nakano
Kohei Yamaya

Hiroyuki Tanada
Yoshinobu Oshima
Makoto Fukuda
Tetsuo Sato
Hideaki Sekizawa

Main Affiliated Financial Institutions
MUFG Bank, Ltd.
The Shoko Chukin Bank, Ltd.
The Shizuoka Bank, Ltd.
The Musashino Bank, Ltd.

Mizuho Bank, Ltd.
The Bank of Yokohama, Ltd.
The Yamanashi Chuo Bank, Ltd.
The Joyo Bank, Ltd.

Major Shareholders
Oshima Scholarship Foundation
Yoshikazu Oshima
MB Service Co., Ltd.

Kanto Kogyo Co., Ltd.
Marine Dream Co., Ltd.
MUFG Bank, Ltd.

Domestic Offices
Headquarters
Tohoku Regional OfficeOsaka Regional Office
Taito Branch Office
Kita Tohoku Branch Office
Higashi Kanto Branch Office
Sales Offices (Mie, Kita Kyushu)

Tokyo Main Office
Nagoya Regional Office
Kyushu Regional Office
Hokkaido 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
Sumitomoichigaya Building 8F 1-1,
Ichigayahonmura-cho, Shinjuku-ku, Tokyo, 162-0845, Japan
Tel: +81-(0)3-6774-8594 Fax: +81-(0)3-6774-8615
https://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 2021

35

FINANCIAL HIGHLIGHTS

NAKANO CORPORATION and its subsidiaries
Years ended March 31, 2017 through 2021
2017

2018

2019

2020

2021

2021

Millionsof yenThousands of
U.S. dollars

Contract awards¥108,637¥116,422¥125,022¥115,640¥100,050$ 903,712

Net sales

116,802104,456

117,152

116,977

116,046

1,048,197

Operating income

5,958

4,264

5,476

4,104

1,622

14,650Ordinary income

6,232

4,579

5,954

4,395

1,818

16,421

Profit attributable to owners of parent

5,544

3,947

3,990

2,932

369

3,333

Comprehensive income

5,816

4,631

4,023

1,661

2,267

20,476

Total net assets

26,45530,742

34,35235,53237,318337,078

Total assets

77,98484,55484,45081,34984,467

762,957

Net cash provided by (used in) operating activities

428

4,611

2,864

(6,797)(4,544)(41,044)

Net cash provided by (used in) investing activities(3,698)(1,773)

2,544

(555)

89

803

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

(969)

(458)

(931)

(1,821)

4,057

36,64524,36427,001

31,60021,612

21,874

197,579

Yen

U.S. dollars

Per share of common stock( in yen and U.S. dollars )Net assets¥738.16¥860.02¥961.56¥996.50¥1,044.19$9.43

Net income

161.28114.83116.09

85.33

10.75

0.10

Cash dividends applicable to the year

10.00

12.00

14.00

14.00

12.00

0.11

1,363

1,355

1,390

1,361

1,336

Number of employees

Notes: 1. The rate of ¥110.71=US$1.00, the foreign exchange rate on March 31, 2021, has been used for translation.
2. Cash dividends applicable to the year in 2017 includes a special dividend ¥3.

140,000

140,000

120,000

120,000

100,000

100,000

80,00060,00040,00080,00060,00040,00020,00020,000002017 2018 2019 2020 2021
Domestic

International

Profit attributableto owners of parent

Millions of yen

Net Sales

Millions of yen

Millions of yen

Contract Awards

2017 2018 2019 2020 2021
Domestic

6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2017 2018 2019 2020 2021

International

ANNUAL REPORT 2021

1

REPORT OF INDEPENDENT AUDITORS

2

NAKANO CORPORATIONANNUAL REPORT 2021

3

4

NAKANO CORPORATIONANNUAL REPORT 2021

5

CONSOLIDATED BALANCE SHEETSNAKANO CORPORATION and its subsidiaries
As of March 31, 2020 and 2021

Millions of yen

Thousands of
U.S. dollars(Note 2)

2020

2021

2021

¥22,535¥22,375$202,104

Notes receivable, accounts receivable from completed
construction contracts and other (Notes 4 and 9)30,391

36,109326,158

Costs on uncompleted construction contracts (Note 4)

2,890

1,232

11,128

48

48

433

AssetsCurrent assets:
Cash and deposits (Notes 4, 7 and 9)

Costs on real estate business
Raw materials and supplies

6

5

45

Accounts receivable - other

4,394

2,313

20,892

Other

985

924

8,346

Allowance for doubtful accounts

(161)

(134)

(1,210)61,09162,875567,925

7,804

7,831

70,734

Total current assets

Non-current assets:
Property, plant and equipment (Notes 4 and 13)
Buildings and structures
Machinery, vehicles, tools, furniture and fixtures (Note 8)

1,592

1,576

14,235Land

11,524

11,525

104,100

Construction in progress

49

346

3,125

(5,117)(5,300)(47,872)

15,853

15,978144,323

Leasehold right

903

964

8,707

Other

93

87

785

996

1,052

9,502

2,909

3,438

31,054

Accumulated depreciation
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities (Notes 4, 9 and 10)
Long-term loans receivable

67

27

243

Net defined benefit asset (Note 11)

—

753

6,801

Other

443

353

3,188

Allowance for doubtful accounts

(13)

(12)

(108)

Total investments and other assets

3,407

4,560

41,188

Total non-current assets

20,257

21,591

195,023¥81,349¥84,467$762,957

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

6

NAKANO CORPORATIONMillions of yen

Thousands of
U.S. dollars(Note 2)

2020

2021

2021

¥34,236¥30,479$275,304

Short-term loans payable (Notes 4, 9 and 17)

480

5,480

49,498

Income taxes payable

315

805

7,271

6,644

5,886

53,165

Provision for warranties for completed construction

255

298

2,691

Provision for loss on construction contracts (Note 4)

1

17

153

Liabilities
Current liabilities:
Notes payable, accounts payable for construction contracts
and other (Note 9)

Advances received on uncompleted construction contracts

Provision for bonuses

538

532

4,805

Other (Note 17)

769

1,064

9,610

43,241

44,563

402,520

Bonds payable (Notes 9 and 16)

500

500

4,516

Long-term loans payable (Notes 4, 9 and 17)

720

410

3,703

Deferred tax liabilities (Note 12)

282

647

5,844

Net defined benefit liability (Note 11)

268

227

2,050

Total current liabilities
Non-current liabilities:

Other (Note 17)
Total non-current liabilities
Total liabilities

805

800

7,226

2,576

2,585

23,34945,817

47,149425,878¥5,061¥5,061$45,714

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

Capital surplus

1,400

1,400

12,645Retained earnings
Less: Treasury stock, at cost
128,323 shares in 2020 and 129,465 shares in 2021

28,933

28,821

260,328

Total shareholders’ equity

(34)

(34)

(307)

35,36035,248318,381

597

962

8,689

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment(1,575)(747)(6,747)

Remeasurements of defined benefit plans (Note 11)

(133)

424

3,829

Total accumulated other comprehensive income(1,111)

638

5,762

Non-controlling interests:

1,282

1,430

12,916

Total net assets

35,53237,318337,078¥81,349¥84,467$762,957

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

ANNUAL REPORT 2021

7

CONSOLIDATED STATEMENTS OF INCOME
NAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2020 and 2021

Net sales:
Net sales of completed construction contracts
Sales on real estate business (Note 13)
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 (Note 13)
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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Foreign exchange losses
Bond issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Subsidy income (Note 5)
Gain on liquidation of subsidiaries and associates
Other (Note 5)
Total extraordinary income
Extraordinary losses:
Losses due to COVID-19 (Note 5)
Extra retirement payments of subsidiaries
Other (Note 5)
Total extraordinary losses
Profit before income taxes
Income taxes:
Income taxes - current
Income taxes - deferred (Note 12)
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent
The accompanying notes are an integral part of these financial statements.

8

NAKANO CORPORATION

Millions of yen

Thousands of
U.S. dollars(Note 2)

2020

2021

2021

¥115,691
1,177
109
116,977¥114,757
1,191
97
116,046$1,036,554
10,757876
1,048,197

106,787426
62107,276108,262384
61108,707

977,8883,468
550
981,907

8,903
751
46
9,701
5,596
4,104

6,494
807
36
7,338
5,715
1,622

58,6577,289
325
66,281
51,621
14,650

290
55
—
22
368

119
46
25
61
253

1,074
415
225
550
2,285

31
28
15
2
77
4,395

56
—
—
0
57
1,818

505
—
—
0
514
16,421

—
17
16
34

467
—
8
475

4,218
—
72
4,290

—
111
139
250
4,178

698
—
50
749
1,545

6,304
—
451
6,765
13,955

1,153
54
1,207
2,971
38
¥2,932

1,069
38
1,108
436
67
¥369

9,655
343
10,0083,938
605$3,333

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2020 and 2021

Millions of yen

Thousands of
U.S. dollars(Note 2)

2020

2021

2021

¥2,971¥436$3,938

(226)
(982)
(101)
(1,309)

364
908
557
1,830

3,287
8,201
5,031
16,529Comprehensive income¥1,661¥2,267$20,476

Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests¥1,681(20)¥2,119147$19,140
1,327

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.

ANNUAL REPORT 2021

9

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSNAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2020 and 2021
Millions of yen
Shareholders’ Equity

Commonstock

Balance as at March 31, 2019

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

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 ¥26,481 ¥(33) ¥32,910

Total net
assets¥824 ¥(651) ¥(32) ¥139 ¥1,302 ¥34,352

Changes of items during
periodDividends from surplus(481)

Profit attributable to owners ofparent2,932

Purchase of treasury stock

(0)

(481)

(481)

2,932

2,932

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance as at March 31, 2020

—

—

2,451

(0)

2,450

¥5,061 ¥1,400 ¥28,933 ¥(34) ¥35,360

(226)

(923)

(101)

(1,251)(20)(1,271)

(226)

(923)

(101)

(1,251)

(20)

1,179

¥597 ¥(1,575) ¥(133) ¥(1,111) ¥1,282 ¥35,532

Changes of items during
periodDividends from surplus(481)

Profit attributable to owners ofparent369

Purchase of treasury stock

(0)

(481)

(481)

369

369

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance as at March 31, 2021

—

—

(111)

(0)

(112)

¥5,061 ¥1,400 ¥28,821 ¥(34) ¥35,248

364

827

557

1,750

147

1,898

364

827

557

1,750

147

1,785

¥962 ¥(747) ¥424 ¥638 ¥1,430 ¥37,318

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

Commonstock

Balance as at March 31, 2020

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Valuation
Total
difference
accumulated
Foreign
Nonothercurrency Remeasurements
Total on available-for-sale translationof defined comprehensive controlling
Treasury shareholders’interests
securities adjustment
incomeequitybenefit plansstock$45,714 $12,645 $261,340 $(307) $319,393

Total net
assets$5,392 $(14,226) $(1,201) $(10,035) $11,579 $320,946

Changes of items during
periodDividends from surplus(4,344)

Profit attributable to owners ofparent

3,333

Purchase of treasury stock(0)(4,344)(4,344)

3,333

3,333

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance as at March 31, 2021——

(1,002)(0)

NAKANO CORPORATION

7,469

5,031

15,807

1,327

17,143

3,287

7,469

5,031

15,807

1,327

16,123$45,714 $12,645 $260,328 $(307) $318,381 $8,689 $(6,747) $3,829 $5,762 $12,916 $337,078

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

10(1,011)

3,287

CONSOLIDATED STATEMENTS OF CASH FLOWSNAKANO CORPORATION and its subsidiaries
For the years ended March 31, 2020 and 2021

Cash flows from operating activities:
Profit before income taxes
Adjustments for:
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Increase (decrease) in provision for loss on construction
contracts
Interest and dividend income
Interest expenses
Subsidy income
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in costs on uncompleted construction
contracts
Increase (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
Subsidy income received
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Other, net
Net cash provided by (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)

Millions of yen

Thousands of
U.S. dollars(Note 2)

2020

2021

2021

¥4,178¥1,545$13,955

474
156
(7)
(83)

451
(31)
(28)
18

4,073
(280)
(252)
162

1
(346)
31
—
(5,372)

15
(165)
56
(467)
(4,846)135(1,490)505(4,218)(43,772)(1,545)
(351)

1,684
(4,534)

15,210(40,953)951(4,074)986(5,001)357(29)(2,124)—(6,797)

(769)
2,002
729
(4,339)
173
(63)
(743)
427
(4,544)(6,946)18,083
6,584(39,192)
1,562
(569)
(6,711)
3,856(41,044)(1,236)
1,020
(314)
(14)
(11)
(555)

(1,315)
1,764
(378)
(20)
38
89

(11,877)
15,933(3,414)
(180)
343
803

(30)
(610)
482
(1,000)(480)(183)(1,821)(813)(9,988)31,600¥21,612

5,000
(310)
—
—
(480)
(151)
4,057
659
261
21,612¥21,874

45,163(2,800)——(4,335)(1,363)36,645
5,952
2,357
195,212$197,579

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

ANNUAL REPORT 2021

11

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 “Group”) are prepared in accordancewith the provisions set forth in the Japanese Financial Instruments and Exchange Law and its
related accounting regulations, and in conformity with accounting principles generally accepted inJapan (“Japanese GAAP”), which are different in certain respects as to application and disclosure
requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications 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 2020 financial statements to conform to the classifications
used in 2021.

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 ¥110.71 to U.S.$1, the rate of exchange prevailing at March 31, 2021,
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 9 subsidiaries as of March 31, 2021. The consolidated financial statements forthe year ended March 31, 2021 include the accounts of the Company and all subsidiaries.
2) Financial Statements of Subsidiaries
The subsidiaries’ financial year-end is March 31.
b. Securities
Securities are classified and accounted for as follows:
Available-for-sale securities, which are not classified as the aforementioned securities, arereported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a
separate component of net assets, while the cost of securities sold is computed using the movingaverage 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 on uncompleted construction contracts are stated at cost determined by the specificidentification 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.
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. Buildings (excluding building fixtures) acquired on or after April 1, 1998 and building
fixtures and structures acquired on or after April 1, 2016 are depreciated using the straight-line
method. Useful lives and residual values of the assets are determined based on the regulations of
the Corporation Tax Act.
Foreign consolidated subsidiaries use primarily the straight-line method.

12

NAKANO CORPORATION

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 Corporation Tax Act.
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.
Some foreign consolidated subsidiaries prepare financial statements pursuant to theInternational Financial Reporting Standards. These subsidiaries have applied International
Financial Reporting Standard 16 Leases (hereinafter referred to as “IFRS 16”). As a result, lessees
recognize all leases as assets and liabilities on the balance sheet, in principle. Depreciation ofright-of-use assets recognized as assets is calculated by the straight-line method. Leasetransactions based on IFRS 16 are classified under “1. Finance lease transactions” in “8. Lease
Transactions.”
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 which is
calculated by using the results in the past fiscal years.
i. Provision for Loss on Construction Contracts
The provision for loss on construction contracts is provided by the Group with respect toconstruction 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, 2021 was ¥108,611 million ($981,040 thousand).

ANNUAL REPORT 2021

13

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 within 3months at the time of acquisition that are exposed to insignificant risk of changes in value.
n. Significant Accounting Estimates
1) “Percentage-of-completion Method”i) Amount recorded in the consolidated financial statements for the year ended March 31, 2021
Construction revenue recognized based on the percentage-of-completion method: ¥108,611
million ($981,040 thousand)ii) Information on significant accounting estimates for identified items
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 recorded by the completed-contract method if its outcome
cannot be reliably estimated. Where the percentage-of-completion method is applied, thepercentage completed at the balance sheet date is calculated based on the cost-to-cost method.
If estimated total cost or cost incurred should significantly exceed original estimations due to a
substantial rise in labor and equipment costs, or other reasons, then this may have a significant
impact on construction revenue recognized based on the percentage-of-completion method in the
consolidated financial statements of the following fiscal year.
2) “Provision for Warranties for Completed Construction”i) Amount recorded in the consolidated financial statements for the year ended March 31, 2021
Provision for warranties for completed construction: ¥298 million ($2,691 thousand)ii) Information on significant accounting estimates for identified items
The provision for warranties for completed construction is provided to cover expenses fordefects claimed concerning completed work based on the estimated amount of warranties to be
paid in the future for the work completed during the fiscal year, which is calculated using theresults for the past 5 years. Because this estimate is calculated by using the results in the pastfiscal years, if a massive cost of defects or similar cost arises, then this may have a significant
impact on the amounts of provision for warranties for completed construction and cost of sales ofcompleted construction contracts recorded in the consolidated financial statements of thefollowing fiscal year.
o. Accounting Standards not yet Applied“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance
No. 30, March 26, 2021)
1) Overview
This is a comprehensive accounting standard for revenue recognition. Revenue is recognizedby applying the following 5 steps:
Step 1: Identify the contract with the customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when or as the entity satisfies each performance obligation.
2) Scheduled date of application
Effective from the beginning of the fiscal year ending March 31, 2022.
3) Effects of the application of the guidance
The Company is currently evaluating the effect of the adoption of this accounting standard andimplementation guidance on its consolidated financial statements.

14

NAKANO CORPORATION

“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019)“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance
No. 31, July 4, 2019)“Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9, July 4, 2019)“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019)“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ
Guidance No. 19, March 31, 2020)
1) Overview
To improve comparability with international accounting standards, the “Accounting Standard for
Fair Value Measurement” and the “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (hereinafter collectively referred to as the “Accounting Standard for Fair
Value Measurement and the Guidance”) were developed and guidance, etc. for fair value
measurement methods were established. The Accounting Standard for Fair Value Measurement
and the Guidance are applied to fair values of the following items.
· Financial instruments under the “Accounting Standard for Financial Instruments”· Inventories held for trading purposes under the “Accounting Standard for Measurement of
Inventories”
In addition, “Implementation Guidance on Disclosures about Fair Value of Financial Instruments”
has been revised to provide the notes for a breakdown of financial instruments by fair valuelevel and others.
2) Scheduled date of application
Effective from the beginning of the fiscal year ending March 31, 2022.
3) Effects of the application of the guidance
The Company is currently evaluating the effect of the adoption of this accounting standard andimplementation guidance on its consolidated financial statements.
p. Additional Information(Impact of the coronavirus disease 2019)
Although it is difficult to forecast the future impact of the coronavirus disease 2019 (COVID-19),
we rationally estimated amounts for completed construction contracts based on the percentageof-completion method, and such accounting estimates as recoverability of deferred tax assets.
In a case where the business environment changes significantly due to re-expansion,
prolongation, etc. of COVID-19, the Company’s consolidated financial position and financial
performance could be affected in the following fiscal year.

4.	Notes to

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

Thousands of
U.S. dollars

2020

2021

2021

¥52

¥52

200

200

Consolidated
Balance Sheets

As of March 31

Cash and deposits
Notes receivable
Buildings
Land
Investment securities

$

469
1,806

703

566

5,112

6,320

5,697

51,458

1,189

322

2,908

Total

¥8,466¥6,838$61,764

Short-term loans payable¥210¥2,800$25,291

Long-term loans payable
Total

280

120

1,083

¥490

¥2,920$26,375

ANNUAL REPORT 2021

15

2. The Group was contingently liable for the following:
Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

Advance payment guarantees¥3,925206¥2,978330$26,899
2,980

Total

¥

¥3,308$29,879

As of March 31

Guarantees to financial institutions, etc. to ensure
the completion of construction contracts ofNakano Singapore (Pte.) Ltd. and its subsidiaries

4,131

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

2020

2021

2021

¥1

¥17

$153

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

Employees’ salaries and allowances

Thousands of
U.S. dollars

2020

2021

2021

¥2,378¥2,668$24,098

Provision for bonuses

227

228

2,059

Retirement benefit expenses

150

152

1,372

Provision of allowance for doubtful accounts

158

(34)

(307)

Depreciation

181

199

1,797

3.	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

2020

2021

2021

¥60

¥84

$758

4.	“Subsidy Income”
For the year ended March 31, 2021:
The construction sites and offices of Nakano Singapore (Pte.) Ltd. and Nakano Construction
Sdn. Bhd., the Company’s consolidated subsidiaries in Singapore and Malaysia respectively,
underwent closures due to government requests, etc. as a result of the impact of thecoronavirus disease 2019 (COVID-19).
The Company has recorded subsidies paid by the governments of both countries tocompanies suffering the impact of COVID-19 under their respective schemes to support
employment: the Jobs Support Scheme (JSS) in Singapore and the Wage Subsidy Program(PSU: Program Subsidi Upah) in Malaysia.
5.	“Losses due to COVID-19”
For the year ended March 31, 2021:
The construction sites and offices of Nakano Singapore (Pte.) Ltd. and Nakano Construction
Sdn. Bhd., the Company’s consolidated subsidiaries in Singapore and Malaysia respectively,
underwent closures due to government requests, etc. in order to prevent the spread of
COVID-19. The Company recorded fixed costs arising during the period of the closures andexpenses incurred during the period of the closures as losses due to COVID-19.

16

NAKANO CORPORATION

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

VehiclesThousands of
U.S. dollars

2020

2021

2021

¥16

¥3

$27

Other

—

0

0

Total

¥16

¥3

$27

Millions of yen

Thousands of
U.S. dollars

7. “Head office relocation expenses” consisted of the following:
For the year ended March 31

2020

2021

2021

¥25

¥—

$—

Depreciation

6

6

54

Other

22

7

63

Total

¥54

¥14

$126

Demolition cost

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

2020

2021

2021

¥(330)¥530$4,787

Valuation difference on available-for-sale securities
Amount arising during the year

5

—

—

(325)

530

4,787

99

(166)

(1,499)

(226)

364

3,287

Amount arising during the year

(982)

908

8,201

Reclassification adjustments

—

—

—

(982)

908

8,201

—

—

—

(982)

908

8,201

Amount arising during the year

(200)

732

6,611

Reclassification adjustments

54

71

641

Reclassification adjustments
Total before tax effectTax effect
Valuation difference on available-for-sale securities
Foreign currency translation adjustments

Total before tax effectTax effectForeign currency translation adjustments
Remeasurements of defined benefit plans

Total before tax effectTax effectRemeasurements of defined benefit plans
Total other comprehensive income

7.	Notes toConsolidated
Statements of Cash
Flows

(145)

803

7,253

44

(246)

(2,222)

(101)

557

5,031

¥(1,309)¥1,830$16,529

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 3 months
Cash and cash equivalents per consolidated statementsof cash flows

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥22,535¥22,375$202,104

(923)

(500)

(4,516)¥21,612¥21,874$197,579

ANNUAL REPORT 2021

17

8.	Lease Transactions

1. Finance lease transactions(As lessee)
Finance lease contracts that do not transfer ownership of the lease assets to the lessee1) Contents of lease assets
Property, plant and equipment
Fixtures such as computers and vehicles.
In addition, “Right of use assets” of foreign consolidated subsidiaries mainly comprise offices andvehicles.
2) Depreciation of lease assets
As described in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3. Summary of Significant
Accounting Policies f. Lease Assets”.
2. Operating lease transactions
Future minimum lease payments under non-cancelable operating lease contracts as of March 31,
2020 and 2021 were as follows:
As of March 31

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥126

¥130

$1,174(As lessee)
Due in 1 year
Due after 1 year
Total

52

—

—

¥178

¥130

$1,174

¥76

¥71

$641

(As lessor)
Due in 1 year
Due after 1 year
Total

9.	Financial
Instruments

257

186

1,680

¥334

¥257

$2,321

1. Overview
1) Policy for financial instruments
The Group raises operating funds primarily through bank loans and bond issues. Temporary fundsurpluses are managed principally through short-term deposits with little risk. Under the policy of
the Group, the Group uses derivatives only for the purpose of reducing foreign exchange
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 Group controls 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 Group identifies major customers’ credit status bymonitoring the payment terms and credit balances by each customer.
Regarding investment securities, principally consisting of equity securities, the Group regularly
identifies the quoted market price of the listed securities to manage the risks arising from market
value fluctuations.
The Group manages liquidity risk associated with loans payable by appropriately planning forfund raising based on monthly cash flow projections.
Regarding derivative transactions, the Group executes and controls the transactions based on
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.

18

NAKANO CORPORATION2. Fair value of financial instruments
The carrying amount, fair value and difference of the financial instruments as of March 31, 2020
and 2021 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, 2020

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

Carrying amount

Fair value

Difference¥22,535¥22,535¥—30,39130,391

—

1,705

1,705

—

¥54,632¥54,632¥—(3) Investment securities
Available-for-sale securities
Assets total(1) Notes payable, accounts payable forconstruction contracts and other34,23634,236—(2) Short-term loans payable

480

480

—

(3) Long-term loans payable

720

720

—

(4) Bonds payable

500

500

—

¥35,936¥35,936

¥—

—

—

—

Carrying amount

Fair value

Difference(1) Cash and deposits(2) Notes receivable, accounts receivable fromcompleted construction contracts and other(3) Investment securities
Available-for-sale securities¥22,375¥22,375¥—

36,10936,109

—

2,236

2,236

—

Assets total¥60,721¥60,721¥—30,479
5,480
410
500

30,479
5,480
410
500

—
—
—
—

¥36,869—¥36,869—¥——

Carrying amount

Fair value

Difference(1) Cash and deposits(2) Notes receivable, accounts receivable fromcompleted construction contracts and other(3) Investment securities
Available-for-sale securities$202,104$202,104$—326,158

326,158—

20,19620,196—

Assets total$548,459$548,459$—275,304
49,4983,703
4,516

275,304
49,498
3,703
4,516

—
—
—
—

$333,023—$333,023—$——Liabilities total
Derivative transactions

Millions of yen
As of March 31, 2021

(1) Notes payable, accounts payable forconstruction contracts and other(2) Short-term loans payable(3) Long-term loans payable(4) Bonds payable
Liabilities total
Derivative transactions

Thousands of U.S. dollars
As of March 31, 2021

(1) Notes payable, accounts payable forconstruction contracts and other(2) Short-term loans payable(3) Long-term loans payable(4) Bonds payable
Liabilities total
Derivative transactions

ANNUAL REPORT 2021

19

(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.
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 mainly within a short period of their maturity.
(4) Bonds payable
The fair value of bonds issued by the Company is based on the current value of the bonds, which is
calculated by discounting the total amount of principal and interest by an interest rate that reflects theremaining terms of the Company’s bonds and credit risk.
2.	Carrying amounts of financial instruments for which it is extremely difficult to identify the fair value were as
follows:
Thousands of
U.S. dollars

Millions of yen
As of March 31

Unlisted equity securities

2020

2021

2021

¥1,204¥1,202$10,857

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, 2020

Due in 1 year
or less

Due after 1
year through5 years

Cash and deposits¥22,535

¥—

¥—

¥—

30,391———

Notes receivable, accounts
receivable from completed
construction contracts and other
Investment securities
Available-for-sale securities with
contractual maturities

Due after 5
years through10 years

Due after 10
years

—

—

2

—

¥52,927

¥—

¥2

¥—

As of March 31, 2021

Due in 1 year
or less

Due after 1
year through5 years

Due after 5
years through10 years

Due after 10
years

Cash and deposits¥22,375

¥—

¥—

¥—

36,109

—

—

—

Total

Millions of yen

Notes receivable, accounts
receivable from completed
construction contracts and other
Investment securities
Available-for-sale securities with
contractual maturities
Total

20

NAKANO CORPORATION

—

—

5

—

¥58,485

¥—

¥5

¥—

Thousands of U.S. dollars

As of March 31, 2021

Due in 1 year
or less

Due after 1
year through5 years

Cash and deposits$202,104

$—

$—

$—

326,158———

Notes receivable, accounts
receivable from completed
construction contracts and other
Investment securities:
Available-for-sale securities with
contractual maturities
Total

Due after 5
years through10 years

Due after 10
years

—

—

45

—

$528,272

$—

$45

$—

4.	Repayment schedule of short-term loans payable, long-term loans payable and bonds payable after
balance sheet date was as follows:
Millions of yen
Due after
1 yearthrough
2 years

Due after
2 years
through
3 years

Due after
4 years
through
5 years

Due after
3 years
through
4 years

Due after
5 years

As of March 31, 2020

Due in 1
year or less

Short-term loans payable¥480 ¥— ¥— ¥— ¥— ¥—Long-term loans payable

—

310

210

50

50

100

Bonds payable

—

—

500

—

—

—

Total

¥480 ¥310 ¥710 ¥50 ¥50 ¥100
Millions of yen
Due after
1 yearthrough
2 years

Due after
2 years
through
3 years

Due after
4 years
through
5 years

Due after
3 years
through
4 years

Due after
5 years

As of March 31, 2021

Due in 1
year or less

Short-term loans payable¥5,480 ¥— ¥— ¥— ¥— ¥—Long-term loans payable

—

210

50

50

50

50

Bonds payable

—

500

—

—

—

—

Total

¥5,480 ¥710 ¥50 ¥50 ¥50 ¥50
Thousands of U.S. dollars
Due after
2 years
through
3 years

Due after
4 years
through
5 years

Due after
3 years
through
4 years

Due after
5 years

As of March 31, 2021

Due in 1
year or less

Short-term loans payable$49,498 $— $— $— $— $—Long-term loans payable
Bonds payable
Total

10. Securities

Due after
1 yearthrough
2 years

—

1,896

451

451

451

451

—

4,516

—

—

—

—

$49,498 $6,413 $451 $451 $451 $451

1. Investment securities as of March 31, 2020 and 2021 consisted of the following:
As of March 31

Available-for-sale securities with market value

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥1,705¥2,236$20,196

2.	The carrying amount and fair value of held-to-maturity debt securities as of March 31, 2020 and
2021 were as follows:
Not applicable

ANNUAL REPORT 2021

21

3.	The carrying amount (fair value) and acquisition cost of available-for-sale securities as of March
31, 2020 and 2021 were as follows:
Millions of yen
As of March 31, 20201) Securities with carrying amount exceedingacquisition cost
Equity securities
Other
Subtotal2) Securities with acquisition cost exceeding
carrying amount
Equity securities
Subtotal
Total

Carrying amount

Acquisition cost

Difference¥1,511

¥588

¥922

2

1

0

¥1,513

¥590

¥923

¥191

¥245

¥(54)

¥191

¥245

¥(54)¥1,705

¥835

¥869

Carrying amount

Acquisition cost

Difference¥2,068¥659¥1,409

Millions of yen
As of March 31, 2021

1) Securities with carrying amount exceedingacquisition cost
Equity securities
Other
Subtotal2) Securities with acquisition cost exceeding
carrying amount
Equity securities
Subtotal
Total

5

1

3

¥2,073¥661¥1,412

¥162

¥174

¥(12)

¥162

¥174

¥(12)¥2,236¥835¥1,400

Carrying amount

Acquisition cost

Difference$18,679$5,952$12,726

Thousands of U.S. dollars
As of March 31, 2021

1) Securities with carrying amount exceedingacquisition cost
Equity securities
Other
Subtotal2) Securities with acquisition cost exceeding
carrying amount
Equity securities
Subtotal
Total

45

9

36

$18,724$5,970$12,754$1,463$1,571$(108)$1,463$1,571$(108)$20,196$7,542$12,645(Note)	“Unlisted equity securities” in an amount of ¥1,204 million as of March 31, 2020 and ¥1,202 million ($10,857
thousand) as of March 31, 2021 were not included in available-for-sale securities in the above table, since there
is no market price and their fair value is extremely difficult to identify.

4.	Available-for-sale securities which were sold during the years ended March 31, 2020 and 2021
were as follows:
For the year ended March 31

Sales proceeds

22

NAKANO CORPORATION

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥—

¥3

$27

Gain on sales

—

1

9

Loss on sales

—

—

—

5.	Securities on which impairment loss was recognized during the years ended March 31, 2020
and 2021 were as follows:
For the year ended March 31, 2020:
The Group recognized impairment loss on available-for-sale securities in amount of ¥5 million.
For the year ended March 31, 2021:
There were no securities on which impairment loss was recognized.
If the fair value of available-for-sale securities with fair value declines by 30% to 50% of theacquisition cost, the Company judges the recoverability, considering the current status of theissuing companies and the fair value trends, and recognizes impairment loss, unless the recovery
is reasonably expected.

11.	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 Group may pay additional retirement benefits upon the retirement of certain
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.
2. Defined Benefit Plans
1)	The changes in projected benefit obligations for the years ended March 31, 2020 and 2021 wereas 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

2020

2021

2021

¥4,274¥4,050$36,582

Service cost

268

262

2,366

Interest cost

17

13

117

Beginning balance of projected benefit obligations

Actuarial differences

(16)

(47)

(424)

Retirement benefits paid

(436)

(343)

(3,098)Extra retirement payments of subsidiaries

(37)

(2)

(18)

Other

(18)

(6)

(54)

¥4,050¥3,927$35,471

Ending balance of projected benefit obligations2)	The changes in plan assets for the years ended March 31, 2020 and 2021 were as follows(excluding the plans to which a short-cut method was applied):
Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

Beginning balance of plan assets¥4,119¥3,895$35,182

Expected return of plan assets

82

77

695

For the year ended March 31

Actuarial differences

(203)

692

6,250

Contribution from the employer

312

230

2,077

Retirement benefits paid
Ending balance of plan assets

(416)

(310)

(2,800)¥3,895¥4,586$41,423

ANNUAL REPORT 2021

233)	The changes in net defined benefit liability of the plans to which the short-cut method wasapplied for the years ended March 31, 2020 and 2021 were as follows:
Millions of yen
For the year ended March 31

Thousands of
U.S. dollars

2020

2021

2021

¥80

¥113

$1,020

Retirement benefit expenses

37

21

189

Retirement benefits paid

(5)

(2)

(18)

¥113

¥132

$1,192

Beginning balance of net defined benefit liability

Ending balance of net defined benefit liability4)	Reconciliation between the ending balances of projected benefit obligations and plan assets andnet defined benefit liability and net defined benefit asset recorded in the consolidated balance
sheet as of March 31, 2020 and 2021 was as follows:
Millions of yen
As of March 31

Funded projected benefit obligations
Plan assets
Net
Unfunded projected benefit obligations

Thousands of
U.S. dollars

2020

2021

2021

¥3,926¥3,832$34,612(3,895)(4,586)(41,423)¥31¥(753)$(6,801)

237

227

2,050

Net liability recorded in the consolidated balance
sheet

¥268

¥(526)$(4,751)

Net defined benefit liability

¥268

¥227

$2,050

Net defined benefit asset

—

(753)

(6,801)¥268¥(526)$(4,751)

Net liability recorded in the consolidated balance
sheet(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, 2020 and 2021
were as follows:
For the year ended March 31

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

Service cost

¥268

¥262

$2,366

Interest cost

17

13

117

Expected return of plan assets

(82)

(77)

(695)

Amortization of actuarial differences

40

63

569

Retirement benefit expenses computed byshort-cut method

37

21

189

Extra retirement payments of subsidiaries

103

(2)

(18)

Other

(18)

(6)

(54)

¥366

¥275

$2,483Retirement benefit expenses on defined benefit
plans6)	The component of “Remeasurements of defined benefit plans” under “Other comprehensive
income” (before adjusting for tax effects) for the years ended March 31, 2020 and 2021 was asfollows:
Millions of yen
For the year ended March 31

Actuarial differences

24

NAKANO CORPORATION

Thousands of
U.S. dollars

2020

2021

2021

¥(145)¥803$7,2537)	The component of “Remeasurements of defined benefit plans” under “Accumulated othercomprehensive income” (before adjusting for tax effects) as of March 31, 2020 and 2021 was asfollows:
As of March 31

Unrecognized actuarial differences

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥(192)¥611$5,518

8) Plan assets
a. Components of plan assets
Plan assets as of March 31, 2020 and 2021 consisted of the following:
As of March 31

2020

2021

Bonds

58%

57%

Equity securities

29

33

Insurance assets (general account)

10

8

Other

3

2

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, 2020 and 2021 were set forth asfollows:
For the year ended March 31

2020

2021

Discount rate

0.1%

0.2%

Long-term expected rate of return on plan assets

2.0

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, 2020 and 2021 was as follows:
For the year ended March 31

Required contribution to the defined contribution
plans

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥71

¥70

$632

ANNUAL REPORT 2021

25

12.	Deferred Tax
Accounting

1.	The significant components of deferred tax assets and liabilities as of March 31, 2020 and 2021
were as follows:
Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

Tax loss carryforwards

¥87

¥537

$4,850

Provision for bonuses

165

163

1,472

Net defined benefit liability

35

30

270

As of March 31

Deferred tax assets:

Allowance for doubtful accounts

44

18

162

Loss on valuation of real estate for sale

287

287

2,592

Provision for loss on construction contracts

0

5

45

Accounts payable for construction contracts

55

87

785

1,355

1,350

12,194

Impairment loss
Other

394

430

3,884

Subtotal

2,425

2,911

26,293

Less: valuation allowance (Note)(1,885)(2,432)(21,967)

¥540

¥479

$4,326¥(272)¥(438)$(3,956)

(410)

(426)

(3,847)

Net defined benefit asset

—

(230)

(2,077)

Other

(57)

(31)

(280)

Deferred tax liabilities¥(739)¥(1,126)$(10,170)

Net deferred tax liabilities¥(199)¥(647)$(5,844)

Deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-salesecurities
Undistributed earnings of foreign consolidated
subsidiaries(Note) Valuation allowance increased by ¥547 million ($4,940 thousand). The major reason for this increase was therecognition of valuation allowance of ¥340 million ($3,071 thousand) and ¥196 million ($1,770 thousand) associatedwith tax loss carryforwards by the consolidated subsidiaries Nakano Singapore (Pte.) Ltd. and Nakano
Construction Sdn. Bhd., respectively.

2.	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, 2020 and 2021 was asfollows:

26

NAKANO CORPORATIONAs of March 31

2020

2021

Normal effective statutory tax rate

30.6%

30.6%

Expenses not deductible income tax purposes

0.7

1.1

Tax rate differences in foreign consolidated subsidiaries

(2.3)

11.4

Undistributed earnings of foreign consolidated subsidiaries

(0.3)

1.4

Inhabitant per capita taxes

0.8

2.1

Withholding tax of foreign consolidated subsidiaries for priorperiods

1.1

(6.2)

Valuation allowance

(3.1)

32.5

Other

1.4

(1.2)

Actual effective tax rate

28.9

71.7

13.	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, 2020 and 2021 were ¥732 million and ¥791
million ($7,144 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, 2020 and
2021.
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

2020

2021

2021

¥12,787¥12,789$115,518

2(1,048)(9,466)¥12,789¥11,741$106,051¥17,852¥16,821$151,937(Notes): 1. The carrying amount is presented after deducting accumulated depreciation from the acquisition cost.
2.	Increase during the year ended March 31, 2020 primarily represents the acquisition of real estate of ¥214
million and decrease is primarily due to depreciation of ¥141 million and effect of change in exchange rateof ¥70 million.
	Increase during the year ended March 31, 2021 primarily represents the acquisition of real estate of ¥32
million ($289 thousand) and effect of change in exchange rate of ¥78 million ($704 thousand), anddecrease is primarily due to the change in holding purpose from investment to internal use of ¥1,036
million ($9,357 thousand), and depreciation of ¥146 million ($1,318 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” or based on reasonable internal appraisal.

14.	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 Board of Directors is being performed in order to decide how
resources are allocated among the Group.
The Group is active in the construction business and the real estate business in Japan andforeign countries.
Therefore, the Group consists 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)”, and those of the real estate business are “Japan”
and “Southeast Asia (Singapore and Malaysia)”.
In addition, during the fiscal year ended March 31, 2021, the holding purpose of real estate
owned by Nakano Singapore (Pre.) Ltd.in Singapore was changed from investment to internal use.
“Net sales” and “Segment income” prior to this change in the purpose of ownership have been
included in “Real estate (Southeast Asia).”
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 “3.
Summary of Significant Accounting Policies”.

ANNUAL REPORT 2021

27

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, 2020

Southeast
Japan
Asia

Total

Real estateSoutheast
Japan
Asia

Other
(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net sales:
Customers
Inter-segment
Total¥77,504 ¥38,187 ¥115,691 ¥1,150 ¥26 ¥1,177¥109 ¥116,977 ¥— ¥116,977

0

—

0

1

—

1

—

1

(1)

—

77,50438,187

115,691

1,151

26

1,178

109

116,979(1)

116,977

Segment income

3,027

408

3,435

622

13

636

33

4,104

—

4,104

Segment assets

31,14023,561

54,701

12,515

1,036

13,551352

68,605

12,744

81,349Other items:
Depreciation
Increase in property,
plant and equipment
and intangible assets¥104 ¥189 ¥294 ¥139 ¥6 ¥145

263

249

512

119

68

188

¥35 ¥474 ¥— ¥474

1

702

—

702

(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 ¥12,744 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) of the Company.
3.	Segment income is reconciled with operating income in the accompanying consolidated statements ofincome.
Millions of yen
Reportable segments
Construction
For the year ended
March 31, 2021

Southeast
Japan
Asia

Total

Real estateSoutheast
Japan
Asia

Other
(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net sales:
Customers
Inter-segment
Total¥78,557 ¥36,200 ¥114,757 ¥1,173 ¥17 ¥1,191 ¥97 ¥116,046 ¥— ¥116,046
0

—

0

3

—

3

—

3

(3)

—

78,55736,200114,757

1,177

17

1,194

97

116,050(3)

116,046

Segment income(loss)

2,865(1,964)

901

691

7

698

22

1,623

(0)

1,622

Segment assets

30,001

25,19455,195

12,551

68

12,620321

68,137

16,33084,467

Other items:
Depreciation
Increase in property,
plant and equipment
and intangible assets¥105 ¥166 ¥272 ¥141 ¥5 ¥147 ¥31 ¥451 ¥— ¥451

322

194

517

35

0

35

2

555

—

555

Thousands of U.S. dollars
Reportable segments
Construction
For the year ended
March 31, 2021

Southeast
Japan
Asia

Total

Real estateSoutheast
Japan
Asia

Other
(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)Total

Net sales:
Customers
Inter-segment
Total$709,574 $326,980 $1,036,554 $10,595 $153 $10,757 $876 $1,048,197 $— $1,048,197
0

—

0

27

—

27

—

27

709,574

326,980

1,036,554

10,631

153

10,784876

1,048,234(27)—(27) 1,048,197

Segment income(loss)

25,878(17,740)

8,138

6,241

63

6,304

198

14,659(0)

14,650

Segment assets

270,987

227,567

498,554

113,368

614

113,991

2,899

615,454

147,502762,957

Other items:
Depreciation
Increase in property,
plant and equipment
and intangible assets

28

NAKANO CORPORATION$948 $1,499 $2,456 $1,273 $45 $1,327 $280 $4,073 $— $4,073

2,908

1,752

4,669

316

0

316

18

5,013

—

5,013

(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 ¥16,330 million ($147,502 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) of the Company.
3.	Segment income (loss) is adjusted with operating income in the accompanying consolidated statements ofincome.

15.	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, 2020 and 2021 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, 2020 and 2021 were as
follows:
Yen

U.S. dollars

For the year ended March 31

2020

2021

2021

Net assets per share¥996.50¥1,044.19$9.43

85.33

10.75

0.10

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥35,532¥37,318$337,078

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:(1,282)(1,430)(12,916)

Net assets attributable to common stock¥34,249¥35,887$324,153

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

34,36934,36834,368Millions of yen

Thousands of
U.S. dollars

Non-controlling interests

2. Net income per share was calculated based on the following information:

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)

16. Bonds Payable

2020

2021

2021

¥2,932¥369$3,333———¥2,932¥369$3,333

34,37034,36934,369Bonds payable as of March 31, 2020 and 2021 consisted of the following:
Millions of yen

Issuer and Issue type

Thousands of
U.S. dollars

2021

2021

Interest
rate(%)

Collateral

Maturity

Mar.10, 2020 ¥ 500 ¥500$4,516

0.34

None

Mar. 10, 2023

Issue date

2020

(Nakano Corporation)
9th unsecured bond

ANNUAL REPORT 2021

29

(Notes): The following was a summary of maturities of bonds subsequent to March 31, 2021:
Years ending March 31

Millions of yen

Thousands of
U.S. dollars

2022

¥—

$—

2023

500

4,516

2024

—

—

2025

—

—

2026

—

—

2027 and thereafter
Total

—

—

¥500

$4,516

17.	Loans Payable and Short-term loans payable, long-term loans payable and other debts as of March 31, 2020 and
Other Debts

2021 were as follows:

As of March 31

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

Averageinterest rate(%)

Maturity

Short-term loans payable¥170¥5,170$46,698

0.85—

Current portion of
long-term loans payable

310

310

2,800

0.96

—

Current portion of leaseobligations

108

104

939

—

—

Long-term loans payable
excluding current portion

720

410

3,703

May.31, 2022 –0.97 Feb. 25, 2027

Lease obligations
excluding current portion

99

95

858

Apr. 10, 2022 –— Sep. 30, 2025

¥1,407¥6,089$54,999

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, 2021:
Millions of yen
Years ending March 31

Lease
obligations

Long-termloans payableLease
obligations

2022

¥310

¥104

$2,800

$939

2023

210

75

1,896

677

2024

50

17

451

153

2025

50

2

451

18

2026

50

0

451

0

2027 and thereafterTotal

18.	Subsequent
EventsThousands of U.S. dollars

Long-termloans payable

50

—

451

—

¥720

¥199

$6,503$1,797

1. At the Annual General Meeting of Shareholders held on June 29, 2021, it was resolved to
distribute the year-end cash dividends of ¥12 ($0.11) per share of common stock of theCompany.
The aggregate amount of such cash dividends was ¥412 million ($3,721 thousand).
2. Acquisition of non-current assets
Based on a resolution made at the Board of Directors meeting in July 2021, the Company
concluded contracts, etc. for the acquisition of non-current assets effective July 16, 2021, andacquired the assets the same day. The details of the acquisition are as follows.

30

NAKANO CORPORATION

1) Details of the non-current assets
Address

1-36-2 Shikinai, Otaru-shi, Hokkaido

Land751.79m2

Buildingsi) 7 floors above ground, total floor space 3,018.84m2ii) 3 floors above ground, total floor space 222.71m2

Acquisition value

Publication has been withheld by agreement with the seller.

2) Overview of the seller
Company nameWBF Hotels & Resorts Co., Ltd.

Address

1-11-1 Nakatsu, Kita-ku, Osaka-shi, Osaka

Name and position ofrepresentative

Chiyoko Ikeda, Representative Director

Description of business

Management of hotels and restaurants, real estate leasing andother

Capital¥6 million ($54 thousand)Relationship with theCompany

The Company has a business relationship with the seller, but does
not have a capital relationship or human relationship.
The seller is not a related party of the Company.

3) Reason for the acquisition
This acquisition of non-current assets constitutes the collection of monetary claims against theseller, concerning which doubts had arisen regarding recoverability.

ANNUAL REPORT 2021

31

SUPPLEMENTAL INFORMATIONNONCONSOLIDATED BALANCE SHEETSNAKANO CORPORATIONAs of March 31, 2020 and 2021

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 - other
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
Insurance funds
Prepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

32

NAKANO CORPORATION

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥11,310
1,433
19,452
1,458
43
6
15
3,535
567
(78)
37,743¥13,581
2,671
19,485
990
43
5
15
1,565
502
(46)
38,814$122,671
24,126
176,000
8,942
388
45
135
14,136
4,534(415)
350,591

6,938(3,593)
3,345
147
(130)
16
560
(307)
252
11
(10)
0
296
(227)
69
11,170
145
(30)
115
49
15,022

6,972(3,741)
3,230
147
(134)
12
562
(338)
223
11
(11)
0
306
(252)
53
11,170
147
(61)
85
346
15,12462,975(33,790)
29,175
1,327(1,210)108
5,076(3,053)
2,014
99
(99)
0
2,763
(2,276)478
100,894
1,327
(550)
767
3,125
136,609

194

189

1,707

1,708
2,425
90
31
161
100
313
(13)
4,817
20,034¥57,778

2,148
2,425
75
31
142
34
265
(12)
5,109
20,422¥59,237

19,402
21,904
677
280
1,282
307
2,393
(108)
46,147
184,463$535,064

Liabilities
Current liabilities:
Notes payable – trade
Electronically recorded obligations - operating
Accounts payable for construction contracts
Short-term loans payable
Lease obligations
Income taxes payable
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
Lease obligations
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
128,323 shares in 2020 and 129,465 shares in 2021
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

2020

2021

2021

¥2,112
8,983
13,142
480
37
272
6,124
255
1
532
550
32,492¥1,376
6,617
10,507
5,480
38
794
5,717
298
17
527
793
32,167$12,428
59,76894,90549,498343
7,171
51,639
2,691
153
4,760
7,162
290,551

500
720
87
31
548
120
2,008
34,500

500
410
54
42
546
120
1,674
33,841

4,516
3,703
487
379
4,931
1,083
15,120305,672¥5,061¥5,061$45,714

1,400
1,400

1,400
1,400

12,645
12,645

16,347
16,347

18,15918,159164,023
164,023(34)
22,775(34)
24,586(307)
222,075

502
502
23,277808
808
25,395

7,298
7,298
229,383¥57,778¥59,237$535,064

ANNUAL REPORT 2021

33

NONCONSOLIDATED STATEMENTS OF INCOME
NAKANO CORPORATION
For the years ended March 31, 2020 and 2021

Millions of yen

Thousands of
U.S. dollars

2020

2021

2021

¥77,504¥78,557$709,574

1,090

1,116

10,080

72

68

614

78,66779,741

720,269

70,39971,529646,093

457

419

3,784

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

43

41

370

70,89971,990650,257

7,105

7,027

63,472

633

696

6,286

Gross profit:
Gross profit on completed construction contracts
Gross profit - real estate business
Gross profit - other business

28

26

234

7,768

7,751

70,011

4,343

4,393

39,680

3,424

3,357

30,322

Interest income

30

4

36

Dividend income

53

44

397

Foreign exchange gains

—

25

225

Interest on tax refund

—

15

135

Other

17

18

162

101

108

975

Interest expenses

15

50

451

Foreign exchange losses

28

—

—

Bond issuance cost

15

—

—

Total gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:

Total non-operating income
Non-operating expenses:

Other
Total non-operating expenses
Ordinary income

7

1

9

67

52

469

3,458

3,413

30,828Extraordinary income:Gain on sales of investment securities

—

1

9

Gain on liquidation of subsidiaries and associates

17

—

—

17

1

9

Loss on litigation

79

18

162

Head office relocation expenses

54

14

126

Other

4

0

0

Total extraordinary income
Extraordinary losses:

Total extraordinary losses
Profit before income taxes

137

33

298

3,339

3,380

30,530933

1,156

10,441

Income taxes:
Income taxes - current
Income taxes - deferred

162

(69)

(623)

Total income taxes

1,095

1,087

9,818

¥2,243¥2,292$20,702

Profit34

NAKANO CORPORATIONCORPORATE PROFILECONTENTS

Company Outline (As of March 31, 2021)

FINANCIAL HIGHLIGHTS

1

REPORT OF INDEPENDENT AUDITORS

2

CONSOLIDATED BALANCE SHEETS

6

CONSOLIDATED STATEMENTS OF INCOME

8

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

9CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

10CONSOLIDATED STATEMENTS OF CASH FLOWS

11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

12

SUPPLEMENTAL INFORMATION32

NONCONSOLIDATED BALANCE SHEETS

32

NONCONSOLIDATED STATEMENTS OF INCOME

34

CORPORATE PROFILE

35

Company Name
Headquarters
Foundation
Established
Capitalization
Employees
Stock Listing
Primary Business

NAKANO CORPORATION
Sumitomoichigaya Building 8F 1-1, Ichigayahonmura-cho, Shinjuku-ku, Tokyo 162-0845, Japan
February 8, 1933
December 19, 1942
¥5,061,678,686
1,336(Group)Tokyo Stock Exchange, First Section
Domestic Construction Projects
International Construction Projects
Real Estate Business

Board of Directors / Audit & Supervisory Board Members (As of September 10, 2021)
Honorary Chairman
President
Directors
Outside Directors
Standing Corporate Auditors
Corporate Auditors

Yoshikazu Oshima
Toshiyuki Taketani
Yorinobu Kato
Takashi Iizuka
Moriyasu Kawamura
Mitsuharu Kotaka
Koichiro Nakano
Kohei Yamaya

Hiroyuki Tanada
Yoshinobu Oshima
Makoto Fukuda
Tetsuo Sato
Hideaki Sekizawa

Main Affiliated Financial Institutions
MUFG Bank, Ltd.
The Shoko Chukin Bank, Ltd.
The Shizuoka Bank, Ltd.
The Musashino Bank, Ltd.

Mizuho Bank, Ltd.
The Bank of Yokohama, Ltd.
The Yamanashi Chuo Bank, Ltd.
The Joyo Bank, Ltd.

Major Shareholders
Oshima Scholarship Foundation
Yoshikazu Oshima
MB Service Co., Ltd.

Kanto Kogyo Co., Ltd.
Marine Dream Co., Ltd.
MUFG Bank, Ltd.

Domestic Offices
Headquarters
Tohoku Regional OfficeOsaka Regional Office
Taito Branch Office
Kita Tohoku Branch Office
Higashi Kanto Branch Office
Sales Offices (Mie, Kita Kyushu)

Tokyo Main Office
Nagoya Regional Office
Kyushu Regional Office
Hokkaido 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
Sumitomoichigaya Building 8F 1-1,
Ichigayahonmura-cho, Shinjuku-ku, Tokyo, 162-0845, Japan
Tel: +81-(0)3-6774-8594 Fax: +81-(0)3-6774-8615
https://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 2021

35

Annual Report 2021
Fiscal year ended March 31, 2021

Sumitomoichigaya Building 8F 1-1, Ichigayahonmura-cho,Shinjuku-ku,Tokyo, 162-0845, Japan
Tel: +81-(0)3-6774-8594 Fax: +81-(0)3-6774-8615
https://www.wave-nakano.co.jp
SINGAPORE
1 Coleman St., #10-03/04/05 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
Tamara Center 14th Floor Jl. Jend. Sudirman KAV. 24, Jakarta 12920, Indonesia
Tel: +62-21-5203674
Fax: +62-21-5203670

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

VIETNAM
Unit 1411-1412, 14th Floor, Daeha Business Center, 360 Kim Ma Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi, Vietnam
Tel: +84-243-724-7552
Fax: +84-243-724-7553