TOBISHIMA
2022
Integrated ReportTOBISHIMA × ANTARCTICA (Background photo by Kazuya Ono)
In the two-plus decades since 1994, we have participated in theJapanese Antarctic Research Expedition, a national Japanese project.
Every year, we dispatch engineers to the National Institute of Polar
Research to perform general construction and engineering work,
including maintenance of facilities at Showa Station, Japan’s permanent
research base in the Antarctic, and general construction and civilengineering work, including installation, demolition, maintenance ofpower generation and sewage treatment facilities and other structures,
infrastructure improvements, road construction, and heliport facility
enhancements. We contribute to research activities by drawing on our
accumulated engineering expertise, insight, and experience to complete
the tasks necessary under severe conditions.

About this booklet
TOBISHIMA Group promotes sustainability transformation (SX) aiming at a fusion of enterprise sustainability and social
sustainability through corporate management in consideration of ESG and SDGs, made possible by epochal DX-based production
process reforms. In this process, we will capture medium-to-long-term risks and opportunities and aim at sustainable corporate valueenhancement.
This report is intended to provide information on TOBISHIMA Group’s current activities and prospects, which, we hope, willmeet your expectations.

Philosophy of Corporate Foundation

CONTENTS

Rita-Riko: Compassion and Self-Interest“If you would pursue your interests, weigh first the interests of others, then put those before your own.
Draw on your own efforts and ideas to offset the sacrifices made for others.
Doing so creates prosperity on both sides and, ultimately, to the attainment of your own interests.”

Introduction
The 139-year History of TOBISHIMA …………………… 3
Financial/Non-financial Highlights …………………… 5
Financial Summary for 11 years ……………………… 7
Message from the President ………………………… 9
TOBISHIMA’s Value Creation Process ………………… 13

Strategy
TOBISHIMA Group’s Management Vision andManagement vision

Medium-Term Five-Year Plan ………………………… 15— To Become a Company that Supports Future Industrial Promotion and Development —Civil Engineering and Construction Business ………… 19
Building Construction Business ……………………… 21
Growth Business ……………………………………… 23………………………… 25

Actions for the Environment ………………………… 29
Climate Information Disclosure Based on TCFD Initiatives … 31
Securing Quality and Strengthening Technological
Capabilities …………………………………………… 33
Initiatives for Safety Management …………………… 34
Realizing Workplaces that Deliver Job Satisfaction …… 35

Corporate Code of Conduct

Photo: National Institute of Polar Research

1 TOBISHIMA Integrated Report 2022

Please visit our website for more informationon our past achievements and technologies.

Directors ……………………………………………… 37

3. Awareness of responsibility as a construction
company1) Making efforts to provide high-quality inexpensive
construction products
2) Establishing cooperative relationships withconstruction partners based on mutual
understanding3) Improving technical prowess and quality
4) Enhancing safety awareness5) Creating lively and worthy workplaces

Photo: National Institute of Polar Research

Organizations covered in this Report
This report covers the business activities of TOBISHIMACORPORATION and Group companies; certain portions address nonconsolidated Company issues.

Sustainability
Sustainability Management

2. Compliance with basic social rules
1) Complying with relevant laws and regulations2) Eliminating anti-social activities
3) Developing business activities through faircompetition

Up to FY 2021, TOBISHIMA CORPORATION had issued Corporate
Reports that integrate Company Information and an Environmental
Report. From FY 2022 on, we will issue an Integrated Report for ourshareholders, investors, and other stakeholders. The Integrated
Report will facilitate understanding of our sustainable value
creation efforts.

TOBISHIMA’s DX Promotion ………………………… 17

Promoting corporate transformation from Tobishima Corporation to
TOBISHIMA to evolve into a New Business Contractor

1. Contributing to society
1) Promoting construction activities satisfyingsocial requirements
2) Creating and maintaining better environment3) Promoting harmony with society

Editorial policy

Corporate Governance ……………………………… 39
Risk Management and Compliance………………… 40

Period covered in this Report
April 2021 - March 2022
Certain portions of the Report address period before or after theabove period.

Reference guidelines<IR> Framework (International Integrated Reporting Council: IIRC)
Guidance for Integrated Corporate Disclosure and CompanyInvestor Dialogues for Collaborative Value Creation (Ministry of
Economy, Trade, and Industry: METI)
Environmental Reporting Guidelines (Ministry of the Environment: MOE)

Messages from Outside Directors …………………… 41
Discussions of prospects

Data Section
Explanation of Corporate Performance ……………… 43
Consolidated Financial Statements …………………… 44
Company Information ………………………………… 47

Discussions of prospects and future events presented in thisReport are based on information currently available to theCompany and on certain premises deemed reasonable. For
various reasons, actual performance and results may differ
materially from projections.

Stock Information …………………………………… 48

Photo: National Institute of Polar Research

Photo: National Institute of Polar Research
TOBISHIMA Integrated Report 2022

2

Introduction

Urayama Dam (1997)
Located in Chichibu City, Saitama Prefecture, this isJapan’s second-highest gravity dam. Utilizing theworld longest layer construction method, the RCD
method, the world’s first one-meter lift, and belt
conveyor technologies to transport raw stone,
aggregate, and concrete materials for the first timein Japan, this challenging project applied several
unprecedented technologies. The dam is now afamiliar site open to the public.

Wacoal New Kyoto Building (2016)
Designed to serve as a new marketing base, thebuilding with its external fins and other design
features expresses tact, gentleness, refinement,
and purity. Incorporating a toggle brace seismic
damping structure, the building attained S rank
class, signifying Superior quality by CASBEE.

Mega Solar Park (2020)
To make the most of renewable energy and toachieve carbon neutrality, we installed 122,000
solar panels on a vast 65 ha site developed as partof a mega solar power plant project with an output
power of 45 MW in Miyagi Prefecture.

Strategy

The foundations of the TOBISHIMA Group date back to 1883, when it was contracted for the demolition of Fukui Castle.
Since then, we’ve continued to grow and respond to social needs.
Drawing on the experience and capabilities accumulated over the past 139 years, TOBISHIMA will continue to evolve and boldly
advance to create new value.

Introduction

The 139-year History of TOBISHIMA

1947
Tobishima Civil Engineering (representative director: Hitoshi
Tobishima) was founded with 3 million yen in capital.
1960
Shares first traded over the counter on the Tokyo Stock
Exchange.
1965
Company name changed to Tobishima Corporation to cast
off the image of an exclusive focus on civil engineering.

Echizen Electric Railway (1915)
Construction of Nakao power plant was completed,and the supply of power began, enabling plans forconstruction of the Echizen Electric Railway tocommence. Undertook the construction work
between Fukui and Ohno.

1946
Tobishima-gumi applied for rehabilitation under the
Corporate Reorganization Law and was dissolved.

1993
Celebrated 110th anniversary of the Company’s founding.
1994
Began dispatching engineers to the Japanese Antarctic
Research Expedition.

1983
100th anniversary of the Company’s founding
Headquarters moved to new building (Sanban-cho, Tokyo).

1916
Tobishima-gumi Corporation (representative director;
Bunkichi Tobishima) founded with 100,000 yen incapital, with headquarters located in Toyoshimanakacho, Fukui City.
1940
Headquarters moved from Fukui City to Kudan, Kojimachi
Ward, Tokyo.

Kanagawa Science Park: KSP (1989)
Developed by Kanagawa Prefecture, Kawasaki City,and TOBISHIMA, this collection of facilities serves as
an international center where R&D companies are
incubated and developed, gather, and interact, andto formulate creative R&D movements. The project
was recognized by various honors, including the BCS
Special Prize and the Prize of the Society of Heating,
Air-Conditioning, and Sanitary Engineers of Japan.

Seikan Tunnel (1982)
This 53.8 km railway tunnel runs below the Tsugaru
Strait, connecting Honshu (the Japanese mainland)and Hokkaido. Tobishima completed the 5.5 km
Sanyoushi section on the Honshu side. Fraught withheavy technical challenges and constant flooding
hazards, this project had significant consequences
for integrating the nation and was selected as one of
the 20 Selections of Japan’s 20th Century Heritage.

2003
Celebrated 120th anniversary of the Company’s founding.

Tokyo Bay Aqua-Line (1997)
Named the Apollo Project in Civil Engineering, thisproject was completed by integrating the cuttingedge technologies and knowhow available at thetime; by developing and applying numerous new
construction technologies/methods; and by
overcoming the countless challenges posed by thenatural conditions at the site, including the soft
seabed, strong winds and tides, and earthquakes, aswell as complications related to environmental
concerns and measures to ensure the continuing
safe passage of ships in Tokyo Bay.

National Highway No. 45, Rikuzentakata Road
(2018)
This 10 km limited highway was planned as a leading
earthquake disaster reconstruction project. We
constructed the 7.0 km section on the side of
Rikuzentakata. Completion of the road will strongly
help afflicted areas move forward with local
reconstruction and is expected to play a major role inthe development of local industries encompassing
Iwate and Miyagi Prefectures.

Co-creation
Period2019
Formulated Medium-Term Five-Year Plan with the basic
policy of establishing foundations for our status as a New
Business Contractor.

(2011-)

Civil Engineeringand Construction
Business
Net sales

Transformation
Period(1991-2010)

60.1

Development
PeriodBuilding
Construction
Business

44.4

Percentage
of sales:51.1%

billion yen

Net sales

Bunkichi Tobishima, the founder instrumental to the subsequent success ofTobishima-gumi, was born in 1876, the first son of Bunjiro Tobishima. At 13, hebecame a key assistant to his father as a stone mason and gradually honed his skills.
For a construction project in 1901, at a time when oxcarts were commonly used totransport earth and sand, he introduced handcarts, the latest invention at the time.
This innovation reduced costs, halved construction times, and won high acclaim.
Work on building hydroelectric power stations added to his reputation. A
swelling tide of hydroelectric power station construction boosted the Company tonational prominence and earned it the reputation as leading company in waterrelated facility construction and civil engineering.
Bunkichi Tobishima’s word set forth the following ideal: To benefit oneself, one must first make sacrifices that
benefit others. Coupled with innovations, these sacrifices will be duly rewarded. These words may remind us of a more
modern phrase: The customer’s needs come first. His integrity and strong sense of responsibility for work won him
an outstanding reputation and the trust of those who requested the services of his company. The company won
a steady stream of orders to build electric power stations across the country.
His character and charisma attracted many capable partners, including Santaro Kumagai (founder of KumagaiGumi) and Matabei Maeda (founder of Maeda Corporation), and generated the driving force behind Tobishima-gumi.
TOBISHIMA’s foundations lie in the integrity, sincerity and good faith of these forerunners, qualities sincehanded down from generation to generation.

（1883～1919）
3 TOBISHIMA Integrated Report 2022

Surikamigawa Dam (2006)
This rock-filled dam with center core, one of thelargest in the Tohoku region, supplies city water,
including drinking water and water for othereveryday uses to three cities and four towns,
including Fukushima City. It also provides irrigation
for rice paddies and agricultural land along the
Surikami River and Abukuma River to support thethriving agriculture of this region.
2013
Celebrated 130th anniversary of the Company’s founding.

Bunkichi Tobishima, Founder

黎明期

Shizuoka Prefectural Fuji Swimming Pools (2001)
With an external profile that recalls a giant waterdrop,
this building contains swimming pools equippedwith movable floors and walls that change depths
and distances. The facility is open to the public,
including children, adults, and the elderly, as a fully
equipped sports center. In 2003, it served as themain venue for the Summer National Sports Festival
held in Shizuoka Prefecture.

Elevated Bridge for the Hokuriku Shinkansen
Nanetsu Station (2021)
We constructed a 980-meter elevated bridge with
Echizen-Takefu Station positioned in the middle aspart of the Hokuriku Shinkansen extension projectfrom Kanazawa to Tsuruga. The bridge is scheduled
to be opened at the end of FY 2023. We are also
currently engaged in separate construction work
to build Echizen-Takefu Station.

Sustainability

1905
Contracted to construct Kyoto Electric’s Nakao power
plant (Fukui Prefecture) as its first hydroelectric power
plant project.

Haneda Airfield (1931)
Contracted to execute reclamation work for Tokyo
Airfield, Japan’s first national airfield for aircraft on a
53-ha site. The airfield featured one runway measuring
300 meters in length and 15 meters in width.

Data Section

Demolition of Fukui Castle (1883)
Bunjiro Tobishima founded Tobishima-gumi, which
was contracted to demolish Fukui Castle as its
first job.

Percentage
of sales:37.7 %

billion yen(1960-1990)

GrowthPeriod(1920-1959)

Founding
Period(1883-1919)

GrowthBusiness
Net sales

13.2

Percentage
of sales:11.2%

billion yen

As of March 2022
TOBISHIMA Integrated Report 2022

4

Introduction

Financial

104.5

billion yen■■ Orders received

billion yen■■ Orders completed(Unit: 100 million yen)

2,000

1,450

17

■■ Net sales (consolidated)■■ Number of employees

Number of employees taking childcare leave(Unit: 100 million yen)

(Unit: persons)(Unit: persons)

117.6
1,500

1,224 1,240
1,221
1,160
1,057
1,067
1,045

1,000

1,172

2018

2019

2020

2021 (Fiscal Year)

1,500

1,322

1,351

1,394

1,483

1,450

■■ Operating profit

Operating profit ratio
(%)

100

10.0

6.3

60

72
5.6

78

8.0

5.8
39

40

3.4

20

45

6.0
4.0

3.9

0

2.0

500

5

0

0

2018

2019

2020

2021 (Fiscal Year)Net assets/Capital adequacy ratio (consolidated)

43.8

billion yen

38.3%■■ Net assets

31.2

364
33.2

394
32.4

415

50.0

38.3

30.0

200

20.0

100

10.0

0

0

2017

2018

5 TOBISHIMA Integrated Report 2022

2019

2020

2021 (Fiscal Year)

5

8

2020

7

6

7

2017

2018

2019

2020

14

2021 (Fiscal Year)

Occupational accident rate

0.52

53.2%

Rate of annual paid leave taken

Occupational accident rate

(%)

60

47.3

51.9

53.2

0.71

0.80

37.2

40

0.94

1.00

30.2

0.60

0.57

0.52

0.39

0.40

0

0

2017

ROE (consolidated)/Dividend payout ratio(non-consolidated)

35.1%

2018

2019

2020

31,548

t-CO2

27.2

43.3
35.1

40.0

19.9

14.9

13.5

2017

2018

2019

6.1

7.5

2020

2021 (Fiscal Year)043,823

26,17434.7
29.1

20,00020.0

12.2

42,03824.8

29,74824.0

10,00031,548

40.0

2018

2019

2020

2020

80.3002021 (Fiscal Year)t(1,000 t)

200

162.7
150

134.9

150.4

161.7

100

80.3

20.0

0

2017

2019

30.0

27.2

10.0

0

2018

■■ Construction waste treatment results
50.0

40,00030,00021.5

t-CO2/100 million yen(t-CO2/100 million yen)

50,0002017

Construction waste treatment results

Specific consumption(t-CO2)60.02021 (Fiscal Year)

Workplace CO2 emissions■■ Volume emitted

Dividend payout ratio

(%)

20.9

4

4

2021 (Fiscal Year)

11
8
2

0.20

40.0

34.2

2019

20

ROE
(%)

438

billion yen
51.1%

44.4

Capital adequacy ratio

500

60.1

Building
construction
business

7.5%(Unit: 100 million yen)

317

billion yen
11.2%

2018

Rate of annual paid leave taken

Civilengineeringandconstruction
business

13.2

2017

3

12

10

2021 (Fiscal Year)billion yen
37.7%

0

2017

2020

Growth business(Unit: 100 million yen)

82

2019

Sales component ratio (consolidated)

3.9%

billion yen

2018■■ Female
17

15

4
2017

■■ Male

20

1,176

0

Operating profit/Operating profit ratio(consolidated)

300

2,000

1,348

500

2017

4.5

1,288

1,000

0

400

1,311

1,000

500

80

billion yen

1,506
1,212 1,270

Number of employees taking childcare leave

Sustainability

1,500

Number of employees

Net Sales (consolidated)

Strategy

116.0

Non-financial (non-consolidated)

Data Section

Orders received/completed (non-consolidated)

Introduction

Financial/Non-financial Highlights

2021 (Fiscal Year)

50
0

2017

2018

2019

2020

2021 (Fiscal Year)TOBISHIMA Integrated Report 2022

6

Introduction

FY 2011

FY2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Introduction

Financial Summary for 11 years
FY 2021

FY 2020

Orders received(million yen)

105,980

106,111

123,173

139,371

112,848

134,652

122,065

154,556

110,772

128,228

120,647

Net sales(million yen)

105,621111,865

109,227

118,652

120,710

117,807

131,121

128,866

134,859

117,295

117,665

Operating profit(million yen)

1,331

1,373

1,716

3,287

6,662

5,477

8,252

7,220

7,848

3,995

4,575

Ordinary income(million yen)

508

570

1,007

2,684

6,059

5,048

7,797

7,019

7,382

3,673

4,212

Current net income attributable to shareholders
of a parent company(million yen)

307

442

860

2,449

6,115

4,383

6,024

5,071

5,109

2,451

3,219

Civil engineering and construction business(million yen)

61,82360,53854,78064,57767,591

66,95773,641

79,216

77,62465,784

63,175

Building construction business(million yen)

42,76650,35653,32153,172

52,10349,55455,86847,76950,08845,62947,338Development business, etc.

(million yen)

1,031

970

1,125

902

1,014

1,294

1,610

1,880

7,146

5,882

7,150

Total assets(million yen)

84,695

96,12085,864

91,59491,45598,125

101,908

109,586

121,804

121,598

114,632

Net assets(million yen)

11,312

11,995

13,065

16,50821,96225,894

31,77036,41039,473

41,58643,872

Interest-bearing liabilities(million yen)

16,411

17,107

12,205

13,60010,00010,000

10,247

10,524

19,897

20,192

16,194

Operating cash flow

(million yen)

△483

6,485

2,613

2,663

4,259

11,335989

4,164△2,6794,173△6,187

Investing cash flow

(million yen)

△680

△351

△254

1,248

△794

△791

△4,473△1,233△1,602△1,175△1,772Financial cash flow

(million yen)

△954

683

△4,9201,372△3,627

△452

△318

△721

4,362

△846

△4,561The ending balances of cash and cash equivalents(million yen)

4,982

11,8599,346

14,764

14,532

24,606

20,78523,01323,05025,235

12,749Current net income per share

(yen)

2.44

3.53

6.68

18.10

36.59

22.77

312.95263.47266.39128.15168.30Net assets per share(yen)△50.18△41.98△18.8131.15

114.04134.48

1,649.80

1,891.96

2,062.77

2,173.26

2,293.14

Dividend

(yen)

―

―

―

―

2.0

3.0

4.0

50.0

50.0

50.0

50.0

(%)

―

―

―

―

5.9

13.2

12.2

21.5

19.9

43.3

35.1

(%)

13.4

12.5

15.2

18.0

24.0

26.4

31.2

33.2

32.4

34.2

38.3

(times)

1.5

1.4

0.9

0.8

0.5

0.4

0.3

0.3

0.5

0.5

0.4

(%)

2.8

3.8

6.9

16.5

31.8

18.3

20.9

14.9

13.5

6.1

7.5

Strategy

Business management results

Sustainability

Segment information (Net sales)

Data Section

Financial position

Cash flow

Per share information

Dividend payout ratio

Financial indicators
Capital adequacy ratio
Debt to equity ratio
ROE(Note) As of October 1, 2018, we undertook a reverse stock split for one share for every ten common shares. “Net assets per share” and “current net income per share” are calculated as if the reverse stock
split had taken place at the beginning of FY 2018.

7 TOBISHIMA Integrated Report 2022

TOBISHIMA Integrated Report 2022

8

Despite turbulent supply chain conditions andother factors, we achieved increases in sales
and profit comparable to the previous term.

deep trust among clients and residents alike, generating moreorders for more challenging construction projects nationwide.
Our Innovative Mindset, responsible for breakthroughs in
response to many challenging circumstances, has shone
through in major projects like the reclamation work for Haneda

Highlights for the year ended in March 2022, which began

Airfield (now Haneda Airport) in 1931 and, more recently, thewith the amount carried forward of 199.6 billion yen, include

Seikan Tunnel, Honshu-Shikoku Bridge Project, and Tokyo Bay

consolidated net sales of 117.665 billion yen (up 0.3% year on

Aqua-Line, to name a few. These principles are now part of ouryear); operating profit of 4.5 billion yen (up 14.5% year on year);core character as a company.

Strategy

Highlights for the year ended in March 2022

Introduction

Introduction

ordinary profit of 4.212 billion yen (up 14.7% year on year); andcurrent net income attributable to shareholders of parent

prolonged aftermath of the COVID-19 pandemic and tumultuous
supply chain conditions due to lockdowns in China andsemiconductor shortages, our business proceeded successfully
without any major construction disruptions or other problems
by taking thorough infection prevention measures and effective
supply chain management.

Progress of Medium-Term Five-Year Plan (from year
ended in March 2002 to year ending in March 2024)(see pp.15-16 for more details)

Advancing evolution and growth intoa New Business Contractor supporting futureindustrial development

Sustainability

While the year presented various challenges, including theFive years ago, in 2017, when I was appointed as President andRepresentative Director, we were promoting the previous

Nevertheless, COVID-19 remains as a factor, while the situation

Medium-Term Three-Year Plan. Through this plan, we sought toin Ukraine has destabilized the world economy. We will continue

maintain and improve profitability through our operational

to monitor conditions with a watchful eye while implementing

portfolio, including civil engineering and construction, independently

the risk management needed to minimize adverse events forof efforts to expand operational volume. The Plan achieved its

our business.

goals one year before the target year. We have now launched a

Data Section

company of 3.219 billion yen (up 31.3% year on year).

new Medium-Term Five-Year Plan, our current plan.

Year 2023, marking the 140th anniversary in
our corporate history

Two strands of DNA underlying the sustainablegrowth of the TOBISHIMA Group

Message from the President

Based on the eternal ideals of the Innovative Mindset and Rita Riko,Compassion and Self-Interest,
TOBISHIMA GROUP continues to evolve andgrow as a New Business Contractor.

Masahiro Norikyo

When formulating the Medium-Term Five-Year Plan, I had
misgivings about the traditional way of going about business in aclosed construction industry, in which competitors appear to vie
for bigger slices of a single pie. In such a shrinking world, we will
never achieve real growth or put ourselves in a position to present

Our roots date back to 1883 when Bunjiro Tobishima foundeda bright or attractive future for our young staff. I feel strongly that

Tobishima-gumi and won a contract to demolish Fukui Castle.

the TOBISHIMA Group’s purpose, its raison d’être, should lie inSince then, during the rise of domestic industry and times ofmeeting the diverse needs of customers not just for construction,high economic growth, we’ve established a national reputation

but in other related areas. This insight is part of the new Plan.

as the first choice for water-related facility construction and civil

Under the current Medium-Term Five-Year Plan, we will expand

engineering work. Subsequently, by placing a greater emphasis

the scope of construction work, seek to identify, and make senseon our building construction business, we’ve also established aof potential societal needs and unsolved challenges, andsolid reputation as a general construction contractor.

promote initiatives as smart solution services capable of solving

Over the 140 years of our history, two principles have guided

these issues, thereby establishing a New Business Contractor

our Group development: the Rita-Riko (compassion and self-

platform for co-creating Society 5.0, a super smart society. We willinterest) spirit established by our founder and the Innovative

pursue these efforts with a diverse range of partners.

Mindset established by our predecessors. The integrity exhibited

After analyzing and evaluating our progress over the pastin our work, as exemplified by the Rita-Riko spirit, has inspired

three years, we are reasonably satisfied that our qualitative DX

President

9 TOBISHIMA Integrated Report 2022

TOBISHIMA Integrated Report 202210

enterprise sustainability, based on epochal DX-led production

measures and safety management initiatives, have proceeded toprocess innovations driven by the innovative mindset encoded

plan and that we are fully prepared for the completion of

into our DNA; and social sustainability, based on ESG- and SDG-

evolution and growth as a New Business Contractor in theoriented management that embodies the spirit of Rita Riko,remaining two years. The post-merger integration (PMI) of

Compassion and Self-interest, on which TOBISHIMA was

Axisware, an IT architect firm that joined the Group in February

founded. In moving forward with TOBISHIMA SX, we assessed

2021, has been completed as planned. More recently, in a joint

the potential impact of various social challenges, including

investment project with NTT Group, we established NXTField, a

SDGs, on Group business activities. We then selected ten priority

new company that supports construction site DX services, inissues, which we refer to as SX Materiality issues.

Strategyreforms, including device development and construction

Introduction

Introduction

site know-how and NTT Group’s ICT know-how in advancing

Of these ten items, we would like to introduce the log pilingtechnology and operations, the new company provides

method, a unique approach that will enable carbon sequestration

comprehensive DX support and ICT services for construction

underground. Trees absorb carbon dioxide from the atmospheresites, and has drawn growing numbers of inquiries, primarily

via photosynthesis, fixing the carbon and discharging oxygen.

from small- to mid-sized local construction companies. For the

Using logs as piles in soft ground at the level of groundwater freeremaining two years we will continue to consider new alliancesof oxygen prevents biodegradation of the logs via rotting andin maintenance business areas and additional mergers andtermite damage. It also enables carbon to be sequestered semi-

acquisitions and innovations in mechanisms based on thepermanently underground. This method, on which we haveeffective application of DX, for increased organizational agility. In

worked steadily for some time, is drawing attention, and is

this way we will achieve evolution and growth as a New Businessexpected to play a significant future role.

Sustainability

April 2022. Drawing on both TOBISHIMA Group’s construction

Contractor capable of meeting wide-ranging customer needs.
Another topic I would like to present here is an initiative

was as reported in a separate section (please refer to pp.7-8).

involving small- and medium-scale hydroelectric power

Investments in the growth business failed to proceed as

generation. Hydroelectric power is a source of renewable

expected due primarily to dampened domestic investment

energy and an eco-friendly energy resource based on theinterest in the private sector amid the COVID-19 pandemic. For

plentiful water resources in Japan. In addition to building power

the remaining two years of the current Medium-Term Five-Yearfacilities, we are advancing the small- and medium-scalePlan, we will enhance efforts in investment and development inhydroelectric power business through processes ranging fromthe growth business while continuing to improve theresearch and design to operations management. Four sites are

profitability of our civil engineering and building construction

currently operating: Yonezawa Odaira (198 kw/Yamagata

businesses, which constitute our core operational areas.

Prefecture), Misato Kurosawa River (199 kw/Nagano Prefecture),

project orders and increase operational volumes. Based on these

Misaka Kirigahara (170 kw/Gifu Prefecture), and Ochiai Hiraishi

efforts, we will balance future-oriented growth investments and(126 kw/Gifu Prefecture). Other projects are under discussion.

SX in TOBISHIMA Group (See pp.25-28 for more details)

As has been said, the 21st century is the Century
of Water, and it’s also the century in which wewill demonstrate our true strengths as a Group.

“The 21st century is the Century of Water.” This has been arecurring theme in publications and presentations of various
scholarly and public organizations, as well as in discussions at

Data Section

Our quantitative progress in the year ended in March 2022

We will apply our competitive water infrastructure technologies
to help solve emerging global-scale water resource concerns.

on effective application of DX. Additionally, we will secure

To our stakeholders

shareholder returns. Specifically, for the next term, ourSetting the goal of sustainable growth basedon future-oriented growth investments andshareholder returns

performance targets include consolidated net sales of 131
billion yen (up 11.3% year on year), operating profit of 4.8 billion
yen (up 4.9% year on year), ordinary profit of 4.1 billion yen(down 2.7% year on year), and current net income attributable

the Japan Dam Foundation, a general incorporated foundation
where I serve as planning committee chairperson. I have two

We managed to accumulate the amount carried forward in

Promoting sustainability to meet social requirements lies atforthright views regarding Japan’s water infrastructure: we need

our construction business as of March 2022 of 142.7 billion yen

the foundations of our corporate activities and corporate value.

more robust protection against the powerful natural forces thatin civil engineering works and 68.2 billion yen in construction

By strengthening our dialogue with stakeholders, TOBISHIMA

intensify every year; the existing hydroelectric power stations

works for a total of 211 billion yen (a year-on-year increase of 11.3

Group is advancing TOBISHIMA SX (sustainability transformation),must take a more active role in water control in their respective

billion yen). For the next term, while capital investment in the

an initiative that seeks to fuse two types of sustainability:

watersheds.

domestic construction market may remain sluggish, we will

11 TOBISHIMA Integrated Report 2022

approach each case at a steady pace while increasingly focusing

to shareholders of parent company of 2.4 billion yen (down
25.5% year on year).
We look forward to your continuing support in the future
development of the TOBISHIMA Group.

TOBISHIMA Integrated Report 202212

- To become a company supportive of futureindustrial growth and development Promoting the transformationfrom Tobishima Corporation to TOBISHIMA
and evolving into a New Business Contractor

TOBISHIMA’s Value Creation Process

Formulating the New Business Contractor platform to create Society 5.0
in partnership with diverse people. This will involve expanding
the construction industry framework, identifying, and bringing tolight diverse latent needs and unsolved problems, and building
the capabilities needed to solve these issues (Smart Solutions Services).

Driven by the innovative mindset encoded into TOBISHIMA’s DNA and based on Rita Riko, Compassion and Self-Interest, ourfoundational philosophy, we pursue our business activities to solve ever evolving and diversifying social issues. We undertake
investments to enhance our financial and non-financial standing, enhance our strength in corporate value creation, and maintain our
corporate value enhancement cycle to achieve sustainable growth for both society and the company. We refer to this as TOBISHIMA’s

flood damage due to climate change■ Risks associated with aging infrastructure
hastily developed during the period of rapid
economic growth■ Intensifying over-centralization of Tokyo andincreasing difficulty of maintaining
community functions in less urban areas■ Deteriorating national power due todeclining birthrates and aging population

Changing paradigms■ Decarbonization requirements to respond to

global environmental issues■ Changing lifestyles prompted by the
COVID-19 pandemic experience■ Growing importance of human rights issues
and recognition of diversity

Human capital

1,450
Engagement index 61.8%

G(Governance)●

Enhancing the corporate management foundations

Renewable energy power generation

5,101 MWh/year

43.8 billion yen
Capital adequacy ratio 38.3%

SX Management

Number of registered patents

Promoting a fusion of enterprise sustainability
and social sustainability by strengthening
dialogue with stakeholders

184Intellectual
capitalSuppliers(Major business partners)
Social/related
capital

Total of

Naturalcapital※単体

Enterprise sustainability

Social sustainability

An epochal transformation involving
DX-based production, driven by theinnovative mindset encoded into
TOBISHIMA’s DNA

Corporate management that accounts
for ESG and SDGs that puts into practice
Rita Riko, Compassion and Self-Interest,
TOBISHIMA’s foundational philosophy

Renewable energy power
generating capacity

3.5 MWh218t-CO

2

Reinvestments
Investments in human capital■ Enhancing human resource

development training■ Improving employee treatment■ Improving the workplace environment■ Promoting health management■ Promoting work style reforms

Mediu
m-Term Five-Year Plan (2019-2023)

496,000 GJ■ National resilience measures by the

Carbon stock

2,199 companies

Total energy used

Environmental
Added Value(FY 2021)

Net assets
Financialresources

117.6 billion yen
Operating profit
4.5 billion yen
Ordinary income
4.2 billion yen
Current net income
3.2 billion yen

Strategy(Society)●

Total assets 114.6 billion yen

Trends in the construction industry
government to boost investment in public
facilities■ Declining private sector investment due to
COVID-19 pandemic and geopoliticalinstability

S

Creating a resilient infrastructure ● Promoting occupational
Contributing to society and local safety● Promoting diversity/communities● Achieving productivity/efficiency
inclusion● Promoting work/life balanceenhancements through digitaltransformation
and work style reforms● Achieving quality andtechnology enhancements●

Employees■ Risk of major earthquakes and consequentcatastrophic damage(Environment)(FY 2021)

Japan facing a crisis■ Risk of more violent and frequent storm/

E

Net Sales

Sustainability(Megatrends)

Input
Major Management Resources(FY 2021)
Promoting decarbonization● Actions to address water resource problems●

Data Section

Social Background

Financial Added Value

Materiality

value creation process.

OutputCreating Value

Introduction

Introduction

Investments in financial capital■ Earned surplus

Investments in intellectual capital■ Technological developments

Civil Engineeringand Construction
Business

Building
Construction
Business

Smart Solutions
Business

Expanding business areas
through construction
capabilities andpromoting infrastructure
solutions

Promoting one-stop
services to expand
the customer base

Providing diverse
solution services torealize a super smart
Society 5.0■ Maintenance/management ofpatent applications

Investments in social/related capital■ Meister system■ Comprehensive support for

construction DX

Investments in natural capital■ Developing small- and medium-

Management Base

Establishing the management base needed
to evolve into New Business Contractor

scale hydroelectric power plants■ Technological developments

involving carbon stock■ Responding to the call to reduce

CO2 emissions

Foundational enhancements/capital increasethat connect value creation to Group growth
13 TOBISHIMA Integrated Report 2022

TOBISHIMA Integrated Report 2022

14

Strategy

Strategy for Sustainable Growth

Basic approaches to the Medium-Term Five-Year Plan
A roadmap for becoming a New Businessengineering and building construction); the growthEstablishing the foundations for evolving into a New Business Contractor

promotes three pillars: the core business (civil
business (new businesses); and the management
base.

Management vision— To Become a Company that Supports
Future Industrial Promotion and Development —Promoting corporate transformation from Tobishima Corporation to TOBISHIMA
to evolve into a New Business Contractor

Introduction

Management Vision and Medium-Term Five-Year Plan

Basic policy

Basic strategy
Civil engineering/▶ Maintaining core businesses and pursuing business structural reforms
Building construction business
Construction concierge
business▶ Promoting one-stop services by enhancing real estate development functions
and their integration with existing building construction business (base) functions

Smart solutions business▶ Enhancing the branding business with existing technologies; providing diverse solution
services to realize super smart Society 5.0

Management base

▶ Promoting digital transformation for accelerated transition to next-generation
business processes

Strategy

TOBISHIMA Group’sContractor, the Medium-Term Five-Year Plan

Major activities for realizing the goals of the Medium-Term Five-Year Plan
— To Become a Company that Supports Future Industrial Promotion and Development —Promoting corporate transformation from Tobishima Corporation to TOBISHIMA to evolve into a New Business Contractor

Management Vision

To realize Society 5.0 (super smart society) promoted by the Japanese government, the TOBISHIMA Group intends to promote DX(digital transformation) and establish a TOBISHIMA corporate group platform capable of providing comprehensive services.

Medium-Term Five-Year Plan: 2019-2023

Under the Medium-Term Five-Year Plan, by expanding the boundaries of the construction business, identifying latent social needs and

A Super Smart
SocietySociety 5.0 for SDGs

A society oriented toward the human element,
one that balances economic growth and theneed to find solutions to social issues throughsophisticated systems that integrate
cyberspace and physical space

15 TOBISHIMA Integrated Report 2022

Accelerating community creation(Infrastructure solutions business)

Construction concierge
business(One-stop building
construction business)

Building construction business(construction)(Further expansion of customer
base)
Real estate development business(Real estate development,
management, redevelopment)
Branding business(Expansion oftechnologies
possessed)

Civil engineering business(Infrastructure solutions business)

Construction concierge
business(One-stop building
construction business)

Civil engineering business

Smart solutions business(TOBISHIMA branding business)

Construction concierge business
Aqua engineering business

Data Section

Civil engineering and construction
business (construction)(Expansion of area of businessbased on construction abilities)

The TOBISHIMA Platform

Infrastructure managementbusiness
Disaster prevention branding
business
Natural disaster mitigation
Environmental load reduction
Sixth sector industrialization(agriculture)

Five years later (2023)

Evolution

Stock disaster readiness andrenewal businessMedium-Term Five-Year Plan

Smart solutions business

Civil engineering andconstruction business

Building construction business

New Business Contractor

Integration

Formulating a corporate group based on the TOBISHIMA platform to provide
comprehensive services for community development in line with Society 5.0

Civil engineering andconstruction business

Structural reform entrenchment stage

ExpansionTOBISHIMA Group = New Business Contractor
New businesses

Society 5.0 = Creation

The TOBISHIMA We Envision
Promoting the smart city vision

Direction of Japan

Core businesses

to a new TOBISHIMA and help to establish Society 5.0.

Growth businesses

evolve into a New Business Contractor. Alongside diverse partners and stakeholders, we will promote corporate transformation leading

Core businesses

Structural reform
implementation stage
Preceding Medium-TermThree-Year Plan

Sustainability<<Basic policy>> Establishment of foundation for New Business Contractor

issues, and developing businesses capable of satisfying or solving these needs and issues through smart solutions services, we will

Asset operations business
Building damping devices
business
Renewable energy business
IoT platform business:
Digital transformation (DX)

Reconstruction of business processes through the proactive use of digital technology to establish the TOBISHIMA Platform
Smart solutions business(Social)TOBISHIMA

Strategy

Platform
Corporate Group
Smart solutions businessCore businesses(Life)

Smart solutions business(Environmental)

Smart solutions business(Industrial)

Continuing/sustained
pursuit of business structuralreforms

Related SDGs

ActionMaintenance of stableprofit bases

Transformation to highproductivity business

Growthbusinesses

Expanding new profitmaking bases

Promoting active business
investments

Digital Transformation (DX)Management
base

Establishing management
system to achieve New
Business Contractor status

Establishing supportive
working environments

KPI

FY 2023

Improving profit per worker in core business(compared to FY 2018)

Up 5%

Increasing number of retained private sector
customers in core business (compared to FY 2018)

Up 10%

Improving completed work productivity per worker
in core business (compared to FY 2018)

Up 8%

Expanding growth businesses(Assessing investment progress based on comprehensive evaluations of strategic
feasibility, synergy, yields, etc.)
Promoting digital transformation(Assessing progress in introducing digital technologies, etc. for business processtransformation)
Improving employee satisfaction(Assessing satisfaction with sense of fulfilment in work, with working conditions,and other aspects among Group employees)

Enhancing financial
foundations

Capital adequacy ratio

45%

Stable shareholder returns

Dividend payout ratio

30% or more

TOBISHIMA Integrated Report 2022

16

Strategy

TOBISHIMA’s DX Promotion

Cyber Construction Site

Construction Sites that integrate site digital data (e.g.,(1) Ability to identify conditions remotely through visualization(2) Ability to accumulate/analyze site data to improve construction quality(3) Ability to provide remote site support

sensor information) and BIM/CIM models (4D) in cyberspace

productivity, and work style, allowing us to enhance our competitive advantage.
In response to the ever-advancing state of digital technologies, we are determined to stay ahead of the information curve andapply the requisite technologies to evolve into our role as New Business Contractor. TOBISHIMA DX will meet the challenge ofas digital twins that facilitate work at construction sites.
This technology will enable the following: (1) visualization
and remote identification of site conditions; (2) accumulation/

continually raising satisfaction for our customers, partner companies, employees, and other stakeholders.

Construction machinery canbe visualized as movable 3D
models.

analysis of site data to improve construction quality; and (3)remote provision of site support.
DX is a core element of our efforts to promote the Medium-Term Five-Year Plan.
DX goes beyond making construction sites more efficient—it refers to comprehensive efforts, based on theapplication of digital technologies, to restructure business processes right across the company, thereby
enhancing our competitiveness.

Basic Policy

The surroundings can bevisualized as point groups
and 3D models.

We will promote Field Success Centers (FSCs) that support
site operations by identifying site conditions remotely; bycentralizing routine tasks like construction planning, image

Crane movements
are recorded andreproduced.
Strategy

DX will transform how we do business, how we improve organizations, processes, corporate culture and work environments,

Introduction

Capabilities to be provided by Cyber Construction SiteTOBISHIMA CORPORATION is seeking to establish Cyber

BIM/CIM can be applied
for construction targets.

capture management, and as-built management; and by
allowing more efficient management of all these tasks.
As advocated by MLIT, DX for infrastructure will make

１. Establishing co-creative systems with startups to facilitate future growth businesses
２. Boosting productivity through labor savings, automation, and robot operations enabled
via digital technologies
３. Promoting digital communications, to enhance receptivity toward digital
４. Nurturing/securing core future-generation DX personnel

DX-Based Next-Generation
Worksite Management

without human presence, thereby enhancing operationalField Success Center (FSC) initiative

Centralizing management operations via transformation from a site-based/completed management structure
to a more centralized site management structure

Production System Reforms
1. Centralizing roles and authorities of sites and branches into Field Success Centers to achieve more rational and more efficient organizational
structures
2. Transitioning to New Normal work styles unrestricted by workplace or work hours

Now
Advantages offered by a centralized structure

Centralization expected to improve functionality and efficiency

1. Maintains and improves engineering/construction
capabilities
2. Promotes New Normal work practices
3. Promotes labor savings and efficiency improvements insite management; enhances productivity
4. Secures construction quality and safety
5. Enables early detection of site issues and fast resolution

1. Achieves centralization and integration of multiple data sets formerly
managed separately.
2. Lays the foundations for operational flows that enable retrieval of the latest
information and past records whenever required.
3. Comprehensive centralization of operations will streamline tasks across worksites
scattered due to diverse work styles.

Centralized
Model

Research
Institute

After Reform

New Normal work styles free of time and location constraints

Sales activities
Management/
evaluation of each
worksite
Negotiations with local
construction companies

Coordination

Sales activities
Headquarters/
branchBranchFSC

Worksite

Dispersion
Model

The example above illustrates the monitoring of boom movements in a case involving the movement ofmultiple cranes at a caisson construction site.

inspiring innovations in construction management.

Promoting SX initiatives in response to social demands, such as reforms in work styles, and management reforms, while moving
forward with the transition to more efficient site operations
GeneraldirectionWorksiteSupervision/
supportWorksite[Operations to betransferred]

Coordination

Site support

Negotiations with client
Worksite
Headquarters

Field Success Center

BranchManagement/
evaluation of each site

Compilation ofprocess plan

Worksite
Research
Institute

Worksite
Research
Institute

Research
Institute

Headquarters

Safety management
Site

Headquarters

Worksite
BranchHeadquarters

WorksiteWorksite

BranchWorksite

17 TOBISHIMA Integrated Report 2022

Earnings forecast
Reviewing process
improvement measures

Supervision/
supportNegotiations withclientSafety management

BranchCost management
Worksite

Sustainability

efficiency, invigorating the workplace atmosphere, andData Section

Basic Strategy

communication more vivid, and enable site management

Reviewing process
improvement
measures

Negotiations with local
construction companies
Cost management

Site

Earnings forecast
Compilation ofprocess plan

TOBISHIMA Integrated Report 2022

18

Strategy

Construction work

Civil Engineering and Construction Business●Active use of smart technologies to boost productivity <Establishing operational support system via use of DX>

752
645

580

2017

2018

2019

Transition of gross profit(Unit: 100 million yen)

730

766

(Unit: 100 million yen)

746
629

601
102

2020

2021(Fiscal Year)

2017

2018

2019

2020

2021(Fiscal Year)

75

82

2017

2018

2019

79

71

2020

2021(Fiscal Year)

Recognition of business environments and our actions in FY 2022

Sustainability

835

Example of an AI tool
Comparison of manual concrete placement and automatic concrete compaction based on posture estimation technology (digital operation
rendering)

Conventional casting (manual)AI-based posture estimation

Automatic compacting

・In FY 2021, our non-consolidated net sales in the civil engineering and construction business reached 60.1 billion yen, whilegross profit on sales amounted to 7.1 billion yen, both slight declines from typical annual figures.

●Unique construction sites: Promoting work style reforms

・Regarding the future business environment of the civil engineering and construction business, we expect steady public
investment for the time being, based primarily on sustained national resilience promotion plans by the government.

In anticipation of legal restrictions on working hours to be introduced in FY 2024, we plan to deploy Field Success Centers (FSCs) toimprove work environments for site workers.

・In FY 2022 we will promote business that captures the diversifying needs of public and private customers by exploringand developing markets to build lasting business foundations.

●Establishing corporate structure to achieve sustainable innovation and human resource development

Data Section

810

Transition of net sales(Unit: 100 million yen)

Use of AI tools is expected to streamline and automate site ledgers nationwide and increase productivity.

Strategy

Drawing on our core strengths in construction developed and amassed since the company’s foundation weparticipate in projects to strengthen national resilience, such as construction of the Linear Chuo Shinkansen, Tokyo
Gaikan Expressway, water supply/sewage plants, flood control facilities, and other local infrastructure projects.
We stand ready to tackle and develop the innovations necessary to realize new markets, including work toextend the service life of infrastructures and commercial decarbonization projects.

Transition of orders received

Introduction

Business Strategies

Anticipating prospects of our organizations and human resources, we proactively promote young engineers to managerial posts toencourage them to play more active roles and to establish the future organizational foundation.

Priority strategies

Drawing on our core construction capabilities,
we will expand our areas of business and promote infrastructure solutions.
Orders received

Maintaining presence in key construction types and responding to social needs

Construction

Accelerating and realizing DX and linking these measures to improvements in productivity

Earnings

・Hydro-Jet RD Method(Deck removal technology for expressways)

Technical development for increasing orders●Market cultivation/development leading to establishment ofenduring business foundations
For renewal construction projects, we seek to refine construction methods
and enhance cost competitiveness based on the unique characteristics ofeach project. We anticipate our joint research on technologies with road
construction companies to boost orders for renewal projects.

19 TOBISHIMA Integrated Report 2022

Tama North Water Supply Station (provisional name) construction project(Tokyo)Client: Tokyo Metropolitan Government
This work involves the new construction of distribution reservoirs, pump buildings, outdoor warehouses, andinstallation of interior piping facilities and pipework accessories at the water supply station located at 1-3,
Umezono, Kiyose City, Tokyo, part of a water supply/distribution facility improvement project.

Securing earnings in core business areas

Ideal state and future priority measures

Example of sites where work has been completed

Deck removal underway

Water gate civil engineering work for Class 2 River: Tashiro River Sujikawamukaiarea river disaster restoration (23 Disaster No. 661)
Client: Iwate Prefectural Government
This work involves the restoration and raising of the water gate (by about 5 m) and surrounding tide barriers of
the Tashiro River, which sustained serious damage in the Great East Japan Earthquake. The site is in the Taro
district, Miyako City, Iwate Prefecture. Amid the extreme scarcity of materials/equipment and labor immediately
after the earthquake, we took flooding prevention measures in the area and completed the work in seven years
and ten months. The project provides the area with strong protection against future tidal wave damage.

TOBISHIMA Integrated Report 2022

20

Strategy

Technical developments for increasing orders●Activities to achieve decarbonization/zero-carbon

We are actively engaged in construction concierge activities that involve identifying potential needs—needs
hidden even to the customers—then meeting these needs by providing information and services the customers
may eventually need.
To refine these concierge functions, we will promote developments in the areas of DX, zero-carbon, and newnormal life/workplace solutions.

515

489

477

Transition of gross profit(Unit: 100 million yen)

541
456

403

478

438

444

(Unit: 100 million yen)

Construction work

62
43

35

33
22

2017

2018

2019

2020

2021(Fiscal Year)

2017

2018

2019

2020

2021(Fiscal Year)

2017

2018

2019

2020

Anticipating prospects for our organizations and the human resources we expect to attract, we will enhance Field Success Center(FCS) functions to enable remote support and streamline and automate site operations and production processes.
2021(Fiscal Year)

Grasping the business environment and our response in FY 2022
・In FY 2021, non-consolidated net sales in the building construction business reached 44.4 billion yen. Gross profit on sales
reached 3.5 billion yen.
・Regarding the future of our business environment, we expect slowing private sector investment due to lack of clarity regarding
the end of the COVID-19 pandemic but expect interest in the fields of maintenance/renewal, disaster prevention/mitigation,and energy/environment, etc. to increase over the present level.
・For FY 2022, we will strengthen our systemic readiness to effectively meet these demands and become more agile in our
approach to various challenges.

Priority strategies

Promoting one-stop services to strengthen our customer baseOrder received

Continuing enhancements in concierge activities to strengthen our customer baseConstruction

Accelerating and realizing DX and linking these measures to improvements in productivity

Earnings
Decarbonization

Securing profits in core business areas
Pursuing technical developments based on next-generation perspectives, promoting zerocarbon initiatives, including the establishment of new zero-carbon offices

The ideal situation and future priority measures
During this year, the fourth year of the Medium-Term Five-Year Plan, we will undertake organizational reforms to transform the current
site-centric structure to a headquarter-oriented configuration. We will take a more agile approach to various challenges.

21 TOBISHIMA Integrated Report 2022

●Establishing a next-generation business management structure

Sustainability

Transition of net sales(Unit: 100 million yen)

672

[Application of LaG+WOOD]
Based on the OEM contract with Shelter Inc., we are set to offer Lag+WOOD, a fireproof woodmaterial. This technology makes it possible to design fireproof structures and is expected to meeta wider range of customer needs.

●Active use of DX technologies and BIM
We will verify and make active use of technologies to enhance communication
between sites and offices. These technologies, including e-Sense and various
VR/AR/MR technologies, are designed to promote construction planningsimulations that visually combine actual landscapes and buildings underconstruction with blueprints by use of virtual reality, augmented reality, mixed
reality, and other technologies. We will also promote front loading based on
the visualization of construction processes made possible by BIM.

Data Section

Transition of orders received[Activities to achieve ZEB/ZEH]
On December 25, 2020, we acquired certification as a ZEB planner.
We seek to achieve ZEB by building structures with low energy loss through higher levels of insulation and solar
shielding, by introducing high efficiency equipment, devices, and control mechanisms, and generating energy via
photovoltaics and other means.

Strategy

Building Construction Business

Introduction

In FY 2022, we established a zero-carbon office project targeted with achieving a 25% reduction in Scope 1+2 greenhouse gas
emissions and 13% reduction in Scope 3 emissions. To achieve these targets, we will make effective use of renewable energy, enhance
ZEB/ZEH efforts, and expand the use of wooden structures.

●Activities to respond to diversifying office environments
The Building Construction Division and the Business Promotion Division have implemented/
introduced ABW and virtual office (oVice).
ABW allows us to create work environments where employees can freely choose where and when
to work according to the nature of their work to meet the needs of the changing times, and link this with customer proposals.

Examples of completed projects
Koryo Primary School (school building and kitchen) operated by Miyawaka City
(Fukuoka Prefecture)
Client: Miyawaka City (municipal government)
In response to declining birthrates, two primary schools have been reorganized into a single building. With
three floors, the school building creates in inviting interior atmosphere by integrating wood obtained fromprivately-owned woodland. The second floor offers two swimming pools (large and small) and an indoor
playground. A shared kitchen was also incorporated within the premises.

Gakken Hatsukaichi Multi-generation Support Center, Gakken Hall (Public Facility
Building), Cocofump Hatsukaichi (Private sector Facility Building) (Hiroshima Prefecture)
Client: Gakken Cocofump Holdings
This building is part of the Hatsukaichi City Regional Medical Center Improvement Project, an urban
development project in Hatsukaichi City, Hiroshima Prefecture. It is a public-private complex composed of apublic facility building, a private facility building, and other facilities. It is expected to be widely used in the
future, including by residents, and is aimed at creating a “sustainable community” where the entire community
supports each other, with medical care and multi-generational interaction at its core.

TOBISHIMA Integrated Report 2022

22

Strategy

Tequanauts Co., Ltd.

Growth Business

Introduction

Developing the future with water technology
Water is both a blessing from the earth and a source of life for humans. Tequanauts, a group of professionals specialized in AquaEngineering, seeks to integrate wisdom and skills to help protect our water supply.
The company’s business scope covers every aspect of water, from installation and removal of aquatic structures by work performed
protect water, we’re committed to the preservation and creation of an optimal water environment that will allow humans to live
comfortably, safely, and securely.
Controlling aquatic ecology
Water quality can be impaired by lack of oxygen in the water, a state caused by theStrategy

To respond to diversifying social needs, we have formulated a vision in which we play the role of a New
Business Contractor, a platform aimed at providing comprehensive services beyond the conventionalframework of construction.
Drawing on our cutting-edge technologies and know-how, we will pursue partnerships with companies thatare developing unique services to further expand our service areas.

underwater to the manufacture and maintenance of control facilities for dams, marinas, and other structures. Through activities thatproliferation of aquatic weeds or exotic plants in irrigation channels, dams, lakes, andTransition of net sales

ponds enriched by global warming and by nutrients origination from domestic orTransition of gross profit(Unit: 100 million yen)aquatic plants to flourish and to restore the original water environment. Working from

132

29

106
20

67
40

a waterweed cutting boat we developed, Weed Hunter, we work to preserve the water

27

quality environment and protect the ecosystems that rely on water.

21

Promoting DX for underwater operations

10

Sustainability

124

industrial wastewater. Our activities maintain and enhance water quality to allow native(Unit: 100 million yen)

Underwater operations are difficult and fraught with hazards; thus, we promote
2018

2019

2020

2021(Fiscal Year)

2017

2018

2019

2020

2021(Fiscal Year)

Recognition of business environments and our actions in FY 2022
・In FY 2021, consolidated net sales in our growth business reached 13.2 billion yen. Gross profit on sales reached 2.7 billion yen.
・For FY 2022, Group companies will enhance their respective strengths through operational co-creation activities undertakenwith TOBISHIMA CORPORATION to focus the joint efforts on priority business projects.

Tequanauts Co., Ltd.
(Consolidated subsidiary)

Sugita Construction Corporation(Consolidated subsidiary)

Env
iro

str
y

fe

Li

u

23 TOBISHIMA Integrated Report 2022

NXTField, Inc.

cameras, interactive communication, and remote site observation systems.
(*) Remotely Operated Vehicle

Helping to safeguard Japan’s exclusive economic zone
Chichi-jima and Haha-jima islands in the Ogasawara Islands are located some
1,000 km south of mainland Japan.
For half a century the company has been involved in the creation of theinfrastructure that supports the livelihoods of Chichi-jima and Haha-jima’s

FOR YOU, Inc.
(Consolidated subsidiary)and create comfortable living environments. As about one-third of Japan’s exclusive

Business: Real estate sale, renting,brokerage, agency, and management;
real estate consultant business
Established in May 1985; joined
TOBISHIMA Group in April 2019
Net sales in FY 2021: 5.16 billion yen(Strictly non-consolidated basis)

we provide is directly linked to protecting Japan’s rights and national interests.

economic zone is located around the Ogasawara islands, we believe the support

Protecting nature
Chichi-jima and Haha-jima islands are home to many unique and endemic species,
forming a unique island ecosystem. The islands were registered as World Natural Heritage

E&CS Co., Ltd.

Axisware, Inc.

ROV (*) robots, such as for real-time distribution of underwater conditions using diverapproximately 2,600 residents. We support the lives of the islanders and industries

FOR YOU, Inc.

Soc

GrowthBusiness
I nd

Business: IT system development andmaintenance services
Established in April 2006; joined
TOBISHIMA Group in February 2021
Net sales in FY 2021: 770 million yen(Strictly non-consolidated basis)ntyBusiness: Various total support
operations for construction site DX,
EC platform business
Established in April 2022

e
nm

t
ie

NXTField, Inc.
(Equity method affiliate)

Axisware, Inc.
(Consolidated subsidiary)Business: Infrastructure business,carbon stock business
Established in March 1963; joined
TOBISHIMA Group in July 2017
Net sales in FY 2021: 2.95 billion yen(Strictly non-consolidated basis)

Sugita Construction
Corporation

Tequanauts Co., Ltd.

We are actively promoting the development and introduction of high-performance

Sugita Construction Corporation

TOBISHIMA Platform

Business: Aqua-engineering business
Established in December 1973;
joined TOBISHIMA Group in
February 2018
Net sales in FY 2021: 2.46 billion yen(Strictly non-consolidated basis)transformation).

Data Section

2017

the improvement in feasibility and safety of this kind of work by utilizing DX (digital

E&CS Co., Ltd.
(Consolidated subsidiary)

sites in June 2011. However, human movement between the islands and the mainland of

Business: Building damping devices
business; construction materials
business
Established in June 1992
Net sales in FY 2021: 10.53 billion yen(Strictly non-consolidated basis)

introduced invasive species that imperil this indigenous ecosystem. To protect the rare andJapan, the development of agricultural land and tree planting, and other trends havevaluable natural environment, we have built fences to keep out invasive species and toprotect the biodiversity of the remote islands. Our efforts here mark a step forward in thenatural history of the Ogasawara islands.

TOBISHIMA Integrated Report 202224

Sustainability

Comments from experts concerning the identification of SX Materiality issues

Sustainability Management
Promoting SX (sustainability transformation) management

Introduction

Masao Seki
Senior Advisor, Sustainability Promotion Division, Sompo Japan Insurance Inc.
Project professor, School of Business Administration, Meiji University

dual perspectives of financial performance and additional contribution toward the realization of a sustainable world.
To enhance corporate value, TOBISHIMA’s SX promotes a fusion of two types of sustainability: enterprise sustainability and social
sustainability. We strive to achieve the former by cultivating dialogue with stakeholders and achieving dramatic production process
reforms by harnessing DX as a driving force emerging from the innovative mindset encoded in our DNA. We strive to achieve the latter
through corporate management that incorporates consideration for ESG and SDGs and the practices inherent to Rita Riko, Compassion
and Self-Interest, on which TOBISHIMA was founded.

• I’d like to express my respect for your efforts to identify materiality. I hope that you will continue to revise and update your viewpoints on thisissue in accordance with the environment surrounding your business and your business strategy.
• The construction industry is in the business of constructing infrastructure that will last for decades or more. Therefore, considering the SDGs andother decarbonization initiatives, it is desirable to set long-term goals such as the 2030 to 2050 timeframe and consider what must be done toattain them.
• Decarbonization remains a pressing environmental issue. The construction industry must establish recycling-based business models and mustalso recognize the rising international concerns with biodiversity and ecosystem protection and analyze how these concerns will affect thecompany business.

Strategy

The environment in which companies operate is changing rapidly. Corporations are now being increasingly evaluated through the• Corporate responsibility for protecting human rights is currently under intense focus. Respect for human rights must be understood not just asa philosophy or motto, but as a crucial and central corporate issue to be effectively managed through the PDCA cycle.

SX Materiality and KPI• The issues of decarbonization, ecosystem protection, and human rights require appropriate action based on a consideration of the entire value
chain. I look forward to steady progress in your management of these issues.

After systematically reviewing the relationships between the SDGs, other social issues, and our business activities, evaluating theseissues (SX Materiality) to be addressed as priority items to promote SX management. We have also established KPIs (key performance

Hiromi Sakazume

Sustainability

issues and priorities for our stakeholders in-house, and exchanging viewpoints with experts across diverse fields, we identified ten key

Professor, Department of Lifelong Learning and Career Design, Hosei University

indicators), to evaluate our progress in each issue.

• The recruitment and employment of young workers and active participation of women are frequently cited as challenging issues for theconstruction industry. The obligations include promoting young human personnel, including their career development, promoting a thriving
female workforce, and promoting effective work-life solutions.

SocialSustainability

Sustainability
Sustaining/enhancing“earning power”

Innovativemindset DX• Detailed KPIs must be set to assess progress on work-life balance initiatives and to advance the participation of female workers. To adequatelyreflect the participation of female workers, these indicators must account not just for the number and ratio of female managers, but other data,
including service years of female employees and retention after childbirth or other events.

Data Section

Corporate• I have high regard for your efforts in promoting work style reforms, encouraging teleworking and flextime systems, and soliciting employee
viewpoints. Due to certain legal changes, companies will be required to encourage male workers to take childcare leave. In this regard, the ratio ofchild-care leaves taken by your male workers already exceeds the Japanese average. This is an important starting point in creating future work styles.

• Within the construction industry, head offices may find it relatively easy to promote work style reforms. But these initiatives may be significantly
more difficult at construction sites and other workplaces outside the head offices. The question of how to diversify work styles at worksites
other than headquarters—including what action to take regarding employee age structures, retirement ages, and other issues and how topropose and diversify work styles and human resources—are future challenges that must be kept in mind.

Rita RikoESG SDGs
Incorporating social
sustainability into
corporate management

Miyako Enokibori
Associate Director, CDP Japan, PhD (Environmental Studies)

Kyoko Narita

Co-creating corporate value through dialogue
with stakeholders

Senior Manager, CDP Japan• The construction industry has a particularly high affinity for energy saving and renewable energy potential associated with buildings. Given thecurrent levels of Scope 3 emissions, the consequences of CO2 reduction efforts involving the renovation of residences and commercial facilities,
particularly in urban areas, will likely be quite significant. Thus, the recommendation here is to identify the CO2 emissions in value chains, set
CO2 reduction targets from the perspective of SBT (Science Based Targets), and proceed with decarbonization activities. Making effective useof domestic lumber from thinning for preventing liquefaction, etc. contributes not just to carbon fixation, but advances the sustainableprocurement of wood materials. These measures should be publicized more extensively.
• As TOBISHIMA CORPORATION extends its operations to Southeast Asia and Africa, its actions on water resources will prove significant. Moreemphasis is needed on environmental preservation, including water resources, and on effective water treatment methods. The company
should disclose more information concerning its recognition of related risks and actions to rectify these issues.
• The Company’s deep experience and record of achievements in disaster prevention initiatives are highly commendable. Ideally, it should
provide the public with more information on its various solutions to social issues, on the framework of its business strategies, and its contributions
to various stakeholders—including customers and local communities.
• In addition to its ESG activities and financial positions, corporate culture plays a significant role in meeting the expectations of investors andshareholders. In this regard, we find the efforts to promulgate the founder’s philosophy of Rita Riko within the company highly commendable.
This aspect is worthy of wider disclosure outside the company.

25 TOBISHIMA Integrated Report 2022

TOBISHIMA Integrated Report 2022

26

Sustainability

SX Materiality
Indicator (KPI)

TargetFiscal YearKey issues (materiality)

Numerical

Contributing to the environment

Key issues (materiality)

25% reduction
from FY 2020
levelsCO2 emissions reductions ratio(Scope 3)

FY 2030

13% reduction
from FY 2020
levelsNumber of wooden buildings(Mid- to high-rise, large span)

FY 2023

Two buildings
or more/year

Carbon fixation amount (soil
improvement methods andcarbon sequestration
technologies in FY 2023 involving
use of timber materials)* Using domestic timber fromforest thinning

FY 2023

Promoting ZEB/ZEH

Number of buildings at which
ZEB/ZEH and ZEB Readymeasures are taken

FY 2023

Five buildings
or more/year

Promoting renewable energy
business

Small-scale hydroelectric andphotovoltaic power generation
volumes

FY 20235,800 MWh/year
or moreDeveloping the water quality
preservation business for lakes andponds (Tequanauts)

Volume of water preserved/
treatedActions involving related facility
construction

Number of cases involving
construction of water supply/
sewage and other water related
facilities in Japan and abroad

Actions taken

Indicator (KPI)

Annually

Annually

Promoting labor safety
As an increasing number of skilledworkers are aging and coming fromdifferent countries, we therefore needto reform our safety management
schemes.
Promoting diversity and inclusion
In establishing the TOBISHIMA Platform,
we must create environments thatallow group companies of diverse
capabilities and individuals of diverse
backgrounds and values to act
promptly, flexibly, and effectively inresponse to changing environments
and to establish innovations driven
by synergies.

1,000-t-CO2
or more10,000 t or more

Helping to extend the service life of
infrastructures

Infrastructure renewal work
completion ratio

Contributing to regional
revitalization through partnerships
with local governments andestablishing regional corporate
syndicates

Number of partnerships with
regional companies and local
governments

Promoting effective dialogue withlocal communities

Number of social contribution
activities performed

FY 2023

Numerical

Improving quality and technologies
This constitutes the foundations of
our corporate management. We will
strive to achieve continuing
improvements in quality andtechnologies to meet increasingly
diverse and sophisticated customer
needs.

Annually

Five or more

Annually

40 or more/
workplace

27 TOBISHIMA Integrated Report 2022

Production process innovations
involving the introduction ofadvanced technologies(automation/remote control)

Number of advanced technology
developments

FY 2023

Three or more

Enhancing efficiency byintroducing advanced technologies(automation/remote control)

Completed work productivity per
worker

FY 2023

Up 8% comparedto FY 2018

Providing high-quality structures
through thorough implementationof the quality check system

Maintenance/improvement oftechnological capabilities

Establishing workplaces where
women can thrive[Civil engineering] Achievement
ratio of work performance rating
pointsAnnually

100% or more

[Building construction] Customer
satisfaction

FY 202395 points
or higher

Number of significant quality
problems

Annually0

Number of patent applications

FY 2023

20 or more

Investments to maintain andpromote healthEnhanced employee treatment andwelfare, providing diverse work styles
and comfortable work environments

15% or more

Securing quality and strengthening technological capabilities
Strengthening productivity andefficiency through digitaltransformation
We will reform our production
processes through DX to shift to anext-generation system of businessadministration.

Employing diverse humanresources and providing effective
workplaces

Achieving work style reforms byimproving productivity

Promoting work-life balance andwork style reforms
We must promote diverse work
styles, reduce prolonged work
hours, and improve work efficiency
through DX to create healthy,
supportive working environments
for all.

TargetFiscal Year

Heightening risk sensitivity andimplementing risk elicitation free ofoversights and based oncomprehensive measures; andutilizing new tools (e.g., e-Series,
Green Site, and FSC) to eliminate
occupational accidents

10 or more

Key issues (materiality)

Numerical

Frequency rate

Annually

0.60 or lower

Strength rate

Annually

0.06 or lower

Number of fatal accidents

Actions taken

Annually0

Number of CCUS placements(Per billion yen of completed
domestic work)

FY 2023

2,164
placements or
more

Diversity ratio(Ratios of female workers, midcareer recruits, and non-Japanese
workers among all employees)

FY 2023

25% or more

Ratio of female workers among
new recruits

FY 2023

25% or more

Ratio of male workers taking
childcare leave

FY 2023

50% or more

Rate of achieving “eight full days
off every four weeks”

FY 2023

100%

Overtime work hours(Annual average of unscheduled
work hours)

FY 2023300 hours or lessper year

Rate of use of annual paid
holidays

FY 2023

60% or more

Rate of complete medical
checkups taken(30 and older but less than 40)

FY 2023

20% or more

Rate of complete medical
checkups taken (40 and older)

FY 2023

40% or more

Rate of employee participation in
annual companywide health
event

FY 2023

90% or more

Absenteeism(Number of days absent due toinjury/sickness per employee peryear)

FY 2023

0.6 or less

Employee satisfaction survey(Percentage of those reporting
satisfaction)

FY 2023

65% or more

Employee stress check(Comprehensive health risk
indicator)

FY 202390 or lower

Indicator (KPI)

TargetFiscal Year

Numerical

Number of significant risk
incidents

Annually

0

Percentage of employees
enrolling in information security
training

Annually

100%

Number of significant legal
violations

Annually

0

Percentage of employees
enrolling in compliance training(e-learning)

Annually

100%

Upgrading governance

G (Corporate governance)

S (Society)Contributing to local communities
and to society
As society continues to age, regional
revitalization has emerged as a key
issue. We will promote regionalinnovations in partnership with local
governments and regional
construction companies.

Fiscal Year

Strategy

FY 2030

Realizing a sustainable society
Establishing resilient infrastructures
The world is being increasingly
confronted with severe natural
disasters. We will draw on our
renowned disaster prevention
technologies to strengthen andextend the service life of suchinfrastructures to help safeguard
against these disasters.

TargetSustainability

Promoting carbon fixation by using
timber materials (soil improvement
methods and carbon sequestration
technologies involving use ofwooden construction materials)

CO2 emissions reductions ratio(Scopes 1/2)

S (Society)

E (Environment)

Working on water resource issues
We will apply our competitive water
infrastructure technologies to help
solve emerging global-scale water
resource issues.

Indicator (KPI)

Realizing workplaces that deliver job satisfaction

Promoting CO2 emissions
reductions at worksites/offices

Promoting decarbonization
We’re committed to efforts to reduce
CO2 emissions because the very
nature of our business involves theuse of heavy equipment, concrete,
and other construction equipment
and materials that generate significant
volumes of CO2.

Actions taken

Introduction

Actions taken

Data Section

Key issues (materiality)

Strengthening the foundations ofcorporate management
・Upgrading corporate governance・Enhancing risk management
・Ensuring complianceCorporate governance, risk management,
and compliance are key issues forcorporate management and must becontinuously addressed.

Enhancing risk management

Compliance

TOBISHIMA Integrated Report 2022

28

Sustainability

Promoting decarbonization
Working on water resource issues

Actions for the Environment
Promoting decarbonization The LP-LiC and LP-SoC carbon stock methods

Introduction

Environmental policy

Trees absorb carbon dioxide from the atmosphere via photosynthesis.

Basic principles

They discharge oxygen and fix carbon within themselves. Carbon stock

1. We will actively engage in environmental conservation in all
corporate activities and ensure that these activities take rm root.
・Maintain and improve the organization needed to promote
environmental conservation and constantly update environmental
management systems.
・Implement internal environmental audits and make sustained
efforts to improve the internal environment.
・Document implementation items related to environmental
conservation and review and con-rm information shared among
all employees.
・Promote environmental conservation in design, construction,and research on technology for civil engineering structures andbuildings as well as in management activities.

3. We will continue to work on the following environmental e-orts:
・Efforts to reduce pollutants・Efforts to conserve energy
・Efforts to promote resource recycling and natural resource
conservation
・Efforts to reduce construction by-products
・Efforts to reduce global greenhouse gas emissions
・Efforts to promote green procurement
・Efforts to conserve and restore the natural environment
4. We will play an active role in activities involving environmental
conservation to fulfill our societal obligations.

moving lumber underground while promoting the construction business.
This reduces greenhouse gas emissions and mitigates climate change.
We contribute to decarbonization via the LP-LiC Method (piling logs into
Strategy

Guidelines for actions

technologies apply this natural process to construction technologies bysoft ground to solidify the ground and prevent liquefaction) and the LPSoC Method (piling logs into soft ground, such as cohesive soil, to improve
the load bearing capacity of and reinforce the local ground surface).
Large-scale housing complex site (Chiba Prefecture)

Small- and medium-scale hydroelectric power generation business
Effective use of locally produced and consumed renewable energy

Sustainability

Recognizing the pressing need to conserve the richness and blessings of the world environment,
our company will act in all our activities with due consideration for the global environment.

Hydroelectric power is a renewable and eco-friendly energy source based on water resources which are plentiful in Japan. We’readvancing the small- and medium-scale hydroelectric power business through processes ranging from research and design to operations

2. We will comply with all environmental laws and the provisionsof agreements with customers, the construction industry, andneighborhood residents.

management.
We’re developing this business nationwide to meet the needs of local communities, alongside community support activities that seek
to revitalize agricultural infrastructures and dialogue with local governments based on the conditions of each region.

Introducing the Environmental Management Systems (ISO 14001)

Data Section(Four operating sites as of FY 2022)

To manage the environmental impacts generated by corporate activities and to actively promote environmental conservation andpollution control, we have introduced environmental management systems based on ISO 14001 to ensure sustained effectiveness andimprovements. (*)(*) Incorporated into the companywide systems in FY 2004. Updated to the 2015 version in FY 2017.

Internal audit
Internal audits are performed at the headquarters and eachbranch according to an annual schedule to check compliancewith rules and spread understanding and knowledge of bestpractices. In drafting annual schedules, we set audit objectives
to ensure that the audits are effective.
●Example of environmental audit objective
Make sure the identification of a remarkable environmental
aspect is relevant to the department’s activities.
●Number of internally audited sections (worksites):
87 sections (59 sites)●Audit results: Serious case of nonconformance: 1
Minor case of nonconformance: 0
Cases involving improvement: 11

External audit
Audits by a certification/registration body found no cases ofenvironmental nonconformance in the 7-2 recertification review,
allowing us to retain our registration status.
●Audit dates: July 13-16, 2021
●Audited sections: Headquarters, Tokyo Metropolitan Area
Civil Engineering Branch Office,Tokyo Metropolitan Area Construction
Branch Office, Nagoya Branch Office●Audit results: Serious cases of nonconformance: 0
Minor cases of nonconformance: 0
Requested improvements: 7 cases

Environmental risk evaluation/management process
In 2021, we indicated our agreement with the TCFD initiatives to promote response to climate change. Based on the scenario analyses,
we identified the risks and opportunities we face in relation to climate change to move closer toward a decarbonized society.

29 TOBISHIMA Integrated Report 2022

Water turbine generator(rated capacity: 136 kw)

Ochiai Hiraishi small-scale hydroelectric power station(Gifu Prefecture)

Promoting the renewal, upgrade, and management of local
agricultural waterways as part of our business activities

Environmental accounting(Units: million yen)

SectionItem

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Environmental conservation costs
within the business areas
Pollution prevention costs

Preventing water, noise, vibration, and air pollution

205.7

310.2

217.9

446.9

316.8

Resource recycling costs

Waste sorting, reducing volumes of construction byproducts,
reuse, and disposal costs

2,973.7

1,091.2

1,920.2

2,442.4

1,242.0

Upstream and downstream costs

Green procurement and environmentally friendly designs, etc.

24.7

21.8

51.4

39.7

156.9

Management costs

Environmental education and management personnel costs, etc.

81.7

86.6

87.6

84.7

92.3

Research and development costs

Research and development for environmental conservation, etc.

84.8

69

82.1

87.9

0.0

Social contribution activity costs

Nature conservation, community activities, and donations

23.6

14.2

26.1

21.1

22.1

Environmental damage costs

Restoration of natural environments and compensations, etc.

3.2

1.6

12.4

2.2

10.9

Other

13.3

17.2

17.2

0.1

0.0

Total

3,410.6

1,611.8

2,414.9

3,124.9

1,841.0

TOBISHIMA Integrated Report 202230

Enforcement ofdecarbonization
policies

strengthen our governance and business areas to facilitate the transition to a decarbonized society.
* TCFD: International framework established by the Financial Stability Board (FSB) in 2015 following a request from the G20 to consider how information concerning climate-related actions and performance
should be disclosed and subsequent actions taken by financial institutions.

Transition

disclosure framework proposed by TCFD (governance, strategy, risk management, and metrics and targets). We will identify risks

Opportunities

Governance Governance of organizations affecting risks and opportunities posed by climate change
We have established a Risk Management Committee to identify issues that may have a significant impact on management or businessactivities, including climate change risks, and formulate and develop measures, and manage the progress of such measures”]. Matters
discussed in the Committee are reported to the Board of Directors (4 times a year) via the Internal Control Committee, which is chairedby the President.

Enforcement ofdecarbonization
policies

Growing needfor renewableenergyBoard of Directors
ReportInstruction

RiskManagement Conference
ReportNatural disasters

・Companies with low environmental awareness will receive low
evaluations from the market, reducing sales opportunities.
・Lack of advantages in technological requirements for required
environmental consideration may be a factor in losing thecapacity to attract orders.
Growing demand for construction technologies based on highCO2 reduction effects/sequestration effects
・Growing need for energy-saving technologies
・Expanding opportunities to apply CO2 capture/sequestration
technologies

Growing demand for renewable energy-related facilities/
equipment
・Investments in renewable energy-related facilities/equipment will
increase and expand opportunities to win orders.

Compliance Committee
Direction/support

Executive Officer

Information Council

Various business divisions/group companies

Strategy Actual and potential impact of risks and opportunities posed by climate change on our business, strategies, and financial planning● Composed of members drawn from across the company, the

TCFD Working Group has analyzed the financial impact ofclimate changes on the Company.
● We have identified matters likely to be affected by a futuretransition to a decarbonized society and matters projected tobe affected by actual physical changes, including natural
disasters likely to become more catastrophic due to averagetemperature rise, and assessed the potential financial impact

Major scenarios adopted to study the transition andphysical risks and opportunities[Analyses of risks and opportunities in the transition scenario]
4°C Scenario: Standard Policy Scenario by IEA (STEPS)

Risks and opportunities in the transition scenario
Risks and opportunities assume a scenario wherein
drastic policies/technological innovations continue to
evolve in the transition to a zero-carbon society to keep
the rise in temperature to less than 2°C by the end of
this century.

Risks and opportunities in the physical scenario
Risks and opportunities assume a scenario wherein the
average temperature will rise by about 4°C due toatmospheric green gas concentrations, resulting in
more damaging natural disasters.

31 TOBISHIMA Integrated Report 2022

Growing demand for natural disaster countermeasureconstruction projects
・More frequent and heavier rainfall and torrential rain and more
intense typhoons will require more countermeasures atconstruction sites.

Introduction

・Enhanced sales promotions in areas related to renewable energy(new small-scale hydroelectric power generation, upgrading
existing facilities, hydraulic power renewal construction, solar
energy/biomass)

Measures to improve working environments
・Production process innovations involving robots and ICT technologies
・Promoting the use of precast items to reduce on-site labor
requirements
・Deploying Field Success Centers (*3) to make site management
operations more efficient
Strengthening response to meet the needs of improved
infrastructure and infrastructure service life
・Drawing on our renowned and proprietary disaster prevention
technologies
・Developing construction technologies to implement governmentsponsored national resilience measures
・Applying concierge functions to enhance our capacity to formulate
proposals for solutions and maintenance/management services*1: Concierge functions: Listening to customer issues and requests, eliciting specific aspects based on the general social context, and proposing optimal solutions based on TOBISHIMA technologies/knowhow and external resources*2: Carbon stock technologies: TOBISHIMA’s proprietary technologies for sequestering large volumes of lumber for extended periods to reduce CO2*3: Field Success Centers (FSCs): Centralized site management systems for enhancing labor savings, quality, safety, and productivity at construction sites

Risk management

Metrics and targets

How the risks associated with climate change are selected, evaluated,and managed

Metrics and targets for evaluating and managing the risks andopportunities posed by climate change● As part of our approach to realizing TOBISHIMA SX, we have

● We have been granted SBT (*) certification

identified challenging issues related to contributing to social
sustainability; established key issues to be tackled first (SXMateriality); and identified the pursuit of decarbonization as apriority issue.
● For risks posed by climate change, the Risk Management
Committee checks the impact of these risks on the businessof each section and undertakes regular monitoring to confirm
that the required measures are taken.
● The discussions of and decisions made by the Risk Management
Committee are integrated into the companywide risk
management process at the Internal Control Committee chairedby the President and reported to the Board of Directors.

for setting long-term CO2 reduction targets

2°C Scenario: Sustainable Development Scenario by IEA (SDS)[Analyses of risks and opportunities in the physical scenario]
4°C Scenario: RCP8.5 by IPCC
2°C Scenario: RCP2.6 by IPCC

as risks and opportunities.
2030

Promoting and enhancing sales activities for customers withthe future changing electricity structures in mind

・Formulating construction plans incorporating BCP
・Establishing BCP system incorporating supply chains andimplementing regular training
・Development and deployment of disaster-prevention/mitigation
technologies

Report/proposal

Promoting theGovernment’s
national
resiliencemeasures・Enhanced proposal formulating capabilities/technologicaldevelopments involving wooden architecture based on the
concierge functions (*1) as well as ZEB and other energy-saving
construction methods
・Expanding the application and further development of carbon
stock technologies (*2)

・Extreme climate events may damage or result in the wholesale
loss of facilities, buildings, and other assets; impair construction
capabilities; and disrupt or delay the transportation and delivery ofmaterials and supplies. Such conditions would significantly affectbusiness activities, including delays or work suspension.

・Extreme summer heat will affect working conditions and impair
productivity.

Opportunities

Risk Management Committee

Enhancing initiatives involving low-carbon compatible
construction/CO2 capture/sequestration technologies

Enhancing BCP response capabilities in the event of a disasterin coordination with supply chain

Impaired productivity at construction sites

PhysicalReport・Educating employees and promoting activities to gain
certifications
・Developing construction methods and temporary building
methods associated with low CO2 emissions

Risk of operational stoppages due to damage at civilengineering/building construction worksites

Internal Control Committee
Instruction

Responding to the need to account for the environment

Significant

Audit

Shrinking orders for companies unable to respond to the needto make environmental adjustments

Strategy

We will disclose information concerning our climate-related actions and performance in accordance with the information

・Promoting low carbon emitting materials/machinery, construction
devices and methods to reduce carbon taxes
・Using renewable energy to reduce CO2 emissions

Sustainability

Disclosures (“TCFD(*)”).

Promoting CO2 emissions reduction activities across the supply
chain

Data Section

Risks

performance and activities and have formally agreed with the proposals submitted by the Task Force on Climate-Related Financial

Significant

on management that accounts for ESG and the SDGs. We believe it is essential to disclose information concerning our climate

・Carbon taxes will be imposed on raw materials/construction
machinery prices, increasing procurement costs.
・Carbon taxes will be incurred in accordance with CO2 emission
from business activities.

Countermeasures

Moderate

Impact ofcarbon taxes

Moderate

Rising procurement costs due to carbon tax burdens andcarbon tax payment burdens

As part of activities related to TOBISHIMA SX, we intend to strengthen corporate value by promoting social sustainability based

and opportunities related to climate changes based on the scenario analyses for the disclosure items proposed by TCFD and

Impact on TOBIHSIMA

Significant

Risks/opportunities

Moderate

Climate Information Disclosure Based on TCFD Initiatives

Impactlevel

Sustainability

2050

The financial
consequences of thetransition to a low carbon
society are estimated tomaterialize as of 2030.

Under this scenario, given
progress with the transition toa low carbon society, the actual
additional financial impact isprojected to be relatively
limited as of 2030.

The financial impact ofintensifying natural
disasters driven by climatechange is still projected toremain limited.

Forecasts indicate the financial
impact of intensifying natural
disasters driven by climatechange will become significant
around 2050.

End of this century

Temperature rise
kept to less than 2°C
above preindustrial levels

Temperature rises
about 4°C
above preindustrial levels

for a zero-carbon society.

Item

Coverage

TargetScope 1/2

25% reduction
from 2020 levels by 2030

Scope 313% reduction
from 2020 levels by 2030

Greenhouse gas(*) SBT (Science Based Targets): GHG emissions reductions targets set by each enterprise toachieve targets to be attained in 5-10 years, aligned with the levels required by the Paris
Agreement (curbing global temperature rise to well below 2°C above preindustrial levels andpursuing efforts to limit warming to 1.5°C).

TOBISHIMA Integrated Report 2022

32

Sustainability

Establishing resilient infrastructures
Improving quality and technologies

Promoting labor safety

Securing Quality and Strengthening Technological Capabilities

In accordance with our management slogan, The Pursuit of Quality, we seek to proactively promote quality
assurance activities and to contribute to society under the customer-first spirit—Rita Riko.
１．Apply the quality management system based on ISO 9001 to the entire company and ensure effective implementation
while continuingly improving e-effectiveness.
２．Clarify and secure customer requirements in addition to clarifying and complying with applicable laws, regulations, andother requirements.
３．Pursue high quality in all aspects of our corporate activities, not just in construction work, to enhance customer

Introduction

Basic principles
Basic principles: Since humans constitute a driving production force, it is impossible to improve quality and productivity withoutmaintaining harmony among products, equipment, and humans. For any company, ensuring safety is a social responsibility thatcannot be considered apart from the company’s primary production activities. Thus, we uphold respect for human lives as a basic
safety tenet.
Basic policy for managing safety and health: We seek to promote comprehensive risk awareness and thorough implementationof necessary measures. All site workers work to strengthen risk awareness and strive to remain constantly vigilant of work-relatedrisks and take proactive measures to eliminate all occupational accidents, including those attributable to unsafe behavior.

Strategy

Quality policy

Initiatives for Safety Management

satisfaction and confidence, with a sense of gratitude and in the spirit of dedication to our customers always in mind.

Construction process management

Target to be attained

To meet customer quality requirements and reduce environmental impact on areas around the workplaces, we have established flows

Disaster prevention
targets

for managing construction processes, especially at worksites, through branch-headquarters collaborations. Improvement e-orts are

Priority implementation items
1. Assured implementation of the healthand safety management PDCA
2. Preventing fall accidents
3. Preventing accidents associated withheavy machinery/equipment

Fatal accidents: 0
Frequency rate
0.60 or less
Severity rate:
0.06 or less

4. Preventing tripping/stumbling accidents
5. Preventing accidents due to unsafe
behavior
6. Preventing accidents leading todamage/injury outside the company

Sustainability

Health and safety management targets

continuous. To this end, we feedback know-how through pre-construction examinations, inspections (internal) and patrols during

Safety management activities

TOPIC

Information reported from construction sites and branches is shared via the intranet. Risk management is a key priority. We share information
in a timely manner, seek to eliminate similar nonconformities, and strive to always upgrade risk management across the company.

We review our basic health and safety management policies based oncompanywide performance results and conditions of the previous year. As

Headquarters

Worksite

BranchPre-construction study meeting, design document study meeting

Beforeconstruction

part of this process, we set core/priority implementation items that form thefoundation of our subsequent activities.
Each branch office establishes detailed site-specific implementation items,
identified from the priority implementation items, and deploy PDCA cycles

Safety review meeting, type-specific procedure study meeting, etc.

quarterly based on the implementation status to identify areas for potential
Duringconstruction

Follow-up bytechnical committees
Confirmation by central safety
and health diagnosis

Aftercompletion

Construction management
Special process management
Receiving inspection
In-process inspection
Factory inspection

Monthly patrol
Internal audit
Intermediate internal inspection
Internal completion inspection

Post-completion review meeting addressing cases of improvement, cases of failure, issues to examine, etc.
Customer evaluation and analysis, including on-delivery inspections, work performance ratings, customer satisfaction surveys,
complaint information, periodic checks, after-sales service, etc.

improvement and put virtuous cycles in place. The headquarters undertakes
annual central health and safety diagnoses as part of branch audits.

Special internal accident prevention months

Collaboration with partner companies[Hiyuukyoryokukai: TOBISHIMA
Collaboration Association]TOBISHIMA organizes joint efforts with partnercompanies (Hiyuukyoryokukai) with the goal offurthering coexistence and mutual prosperity
involving labor, health, and safety management
activities. We forge strong partnerships to ensure
safety and quality based on the collective efforts of
TOBISHIMA and its partners. We work to improve,
foster, and support the management capabilitiesof our partner companies by organizing various
educational sessions, workshops, and inspections
throughout the country.
Organizational Chart for the Hiyuukyoryokukai
Head office for
Hiyuukyoryokukai

Considering serious accidents in the past, we have established special
accident prevention months to address falling accidents and machinery
accidents. During these months, we undertake accident prevention measures

Quality Management System (ISO 9001)

Education/training

based on predetermined guidelines. Safety awareness campaigns incorporate

Data Section

construction, and post-completion review meetings.

Chairman
AuditorSecretary General

SupremeAdviser/Adviser/Councilor

Chairman(exclusive duty)
Vice Chairman

slogans for these months suggested by employees.
We verify our consistent capabilities to provide civil

Recruit training provides an overview of ISO. Those employedengineering structures and buildings capable of meeting customer

for seven years or longer receive new internal auditor capability

requirements and applicable legal/regulatory requirements

development training to ensure that about 40% of the entire workthrough the application of a quality management system based onforce can function as internal auditors. Prior to internal audits,

ISO 9001. We also seek to improve customer satisfaction byinternal auditor capability enhancement training is provided toguaranteeing the effective application of various systems, including

ensure that the audits can be implemented effectively.

KyushuBranchofficeChugoku Hokuriku
Chapter Chapter

Safety Patrol

TohokuTokyo
Tokyo
BranchMetropolitan Metropolitan office
Area
Area Civil
Construction Engineering Sapporo
Branch office Branch office Chapter

annually to enhance site safety management systems.

For environment and quality management, a hierarchicalTunnel accident elimination inspection

ensuring compliance with customer and legal/regulatory

collective education program is provided for workers grouped

Inspection by management members

requirements.

by company tenure to enhance management. The current

Inspection by the president

NovemberAccident elimination inspection

DecemberTerm-end intensive inspection

February

33 TOBISHIMA Integrated Report 2022

NagoyaBranchofficeHeadquarters personnel perform six on-site inspections

continuously refining our quality management system andemphasis is on experience-based education.

Osaka
BranchofficeJune/November
July

TOBISHIMA Integrated Report 2022

34

Sustainability

Promoting diversity and inclusion
Promoting work-life balance and work style reforms

Health management initiatives®
TOBISHIMA CORPORATION’s Health Management Declaration

Introduction

Realizing Workplaces that Deliver Job Satisfaction
Promoting work style reforms and diversity management■ Both the Company and all its employees will continue to grow through ongoing management-employee joint efforts to pursue work

style reforms in an open-minded spirit. This approach seeks to question things taken for granted to date; to create a supportive
working environment for all; and to achieve both productivity enhancements for the Company and a work-life balance for everyone.
■ We acknowledge and respect diverse values and ways of thinking to invigorate organizations and accelerate innovation. We seek topromote environments in which everyone can fulfill their potential.
Strategy

Alongside its employees, TOBISHIMA CORPORATION will work to create a company in which all employees can work actively
in sound health, both mentally and physically.
We launched our health management efforts in fiscal 2019, and in March 2020 we were certified by the Ministry of Economy, Trade,and Industry as an outstanding health management corporation. We continue to refine our health management practices maintaining
and promote the good health of all our employees.
No company can achieve sustained growth without considering the health of its employees. We share the Health Management
Declaration with all employees through the collective efforts of both the Company and its workers.

Major actions

Promoting work-life balance(1) Promoting teleworking
We seek to improve teleworking work environments and strive
to enhance communications, issues often identified as challenges
in such environments. Our goal is to become a company in which
a diverse group of employees can make the most of theircapabilities and effectively fulfill their responsibilities; in whichbusiness continuity is assured even under emergency conditions;and in which employees are empowered to achieve a work-lifebalance.
(2) Enhancing employee welfare
The employee welfare outsourcing services introduced in FY
2022 allow employees to use various services nationwide. These
services cover family members to the second degree of kinship.

ActionIndicator

FY 2023 targets

Rate of achieving eight full days off every four weeks at construction sites

Providing workplaces
where women can thrive

Achievements
FY 2020

FY 2021

100%

74.1%

76.8%

300 hours or less in a year

320 hours a year

329 hours a year

60% or more

52.0%

53.2%

Ratio of female workers among new recruits

25% or more

12.5%

22.0%

Ratio of male workers taking childcare leave

50% or more

25.9%

63.6%

Employees overtime work (annual average of unscheduled work hours)
Ratio of annual paid holidays taken

Actions involving human resource development
In 2016, we defined T-Shaped Professionals as individuals equipped with both deep expertise (vertical part) and general interpersonal skills(horizontal part). We will develop and nurture a corps of T-Shaped Professionals by emphasizing and enhancing general interpersonal skills.

Radio Gymnastics Grand Prix (T-1 Grand Prix)

Group training
In 2016, we introduced Human Power Training to enhance the well-rounded general capabilities that can be acquired throughintellectual, social/interpersonal, and self-governing skills. From new recruits to managers, regardless of job categories and levels, allemployees undergo step-by-step training to acquire the well-rounded general capabilities needed to enhance personal growth and act
decisively and effectively.

Effective health management is possible only when the Company and employees work together to maintain and improve employee
health. This means all employees are responsible for understanding the health management policies, for sharing targets and related
measures, and working continuously toward the realization of the targets set.
Younger than 30 years old

30 and older but less than
40 years old

40 and older but less than
50 years old

50 and older

Total

Understand clearly

56.3%

53.7%

57.0%

68.2%

62.5%

Don’t understand

12.1%

10.1%

9.8％

4.1%

7.3%

Unsure

31.6%

36.2%

33.2%

27.7%

30.2%

▲

Although understanding of health management policies appears to be improving (60.9% in FY 2020 -> 62.5% in FY 2021), it is still unsatisfactory. To ensure progress in thisarea, present clear targets, and promote action to achieve them, we have established a section to supervise and promote health management policies within the Personnel
Department from FY 2022.

35 TOBISHIMA Integrated Report 2022

■ Indicators concerning “work style reforms and diversity promotion” (2023 targets and status)

Achieving work stylereforms through improved
productivity

Percentage of employees stating, “I understand the Company’s health management policies”(from the FY 2021 Employee Satisfaction Survey)

About Health Management Policies▪ In 2019, we introduced the mandatory retirement age of 65 to provide our employees with the option to continue working past
the age of 60.
▪ Encourage the use the teleworking, flextime, and job return systems.
▪ Encourage employees to take childcare leave and family care leave (in particular, encouraging male employees to take childcare leave).
▪ The work style reform committee identifies the work situation and develops and implements measures to curtail prolonged
work hours.
▪ Organize work style reform competitions that encourage employees to think about, propose, and practice their own work styles.
▪ Enhance work efficiency, labor savings, and labor productivity through DX promotion and BPO (business process outsourcing)of non-core tasks, and other similar measures.
▪ Establish a diversity promotion committee to identify the current state of and challenges in diversity management and to planand promote necessary measures.

Sustainability

Preventing and halting the onset of lifestyle diseases(1) Encouraging employees aged 30 and older to undergo
thorough health screenings
The Company provides financial assistance for employees aged
30 and older to get thorough health screenings. The Company
also designates individual worker health examination dates asdays off and provides employees with transportation andaccommodation expenses to encourage them to get their healthexaminations.
(2) Thorough Company supports for follow-up exams
Follow-up exams that need to be taken during work hours,
based on the results of regular health checkups and thoroughhealth screenings, etc. are treated as hours worked. Employees are
required to report the results of follow-up exams, based on which
industrial doctors can provide health guidance to prevent or treat
lifestyle diseases and to prevent the progression of any otherconditions.
(3) Events to promote physical exercise
We hold companywide exercise promotion events, including
the Arukatsu walking event, in which teams and individual
participants compete for pedometer readings over specified
periods and the Radio Gymnastics Grand Prix, in which groupscompete on radio gymnastics perfection and planning. These
activities encourage employees to make exercise a habit andpromote employee interaction.
(4) Providing health information
The TOBISHIMA health promotion website provides a range ofhealth information employees will find useful in promoting theirhealth. The site enhances awareness of health issues and solutions.

Data Section

Major activities

Supports for employee initiatives to acquire qualifications
In FY 2017, as part of measures to promote qualification acquisition for employees, we
introduced e-learning that allows employees to participate in courses to acquire
qualification for First-Class Construction Management Engineer in civil engineering,
construction, plumbing, and electrical work via personal computers as well as smartphones.
We provide full support to encourage employees to acquire necessary qualifications
through financial support and rewards for obtaining specified qualifications.
A Human Power Training session

TOBISHIMA Integrated Report 2022

36

Sustainability

Seiichi Okuyama

April 1980 : Joined TOBISHIMA CORPORATION.
April 2014 : Executive Officer, Chief of Corporate Administration Division in charge ofCompliance
June 2014 : Director, Executive Officer, Chief of Corporate Administration
Division in charge of Compliance
April 2016 : Director, Managing Executive Officer, Chief of Corporate
Administration Division in charge of Compliance
April 2019 : Director, Senior Managing Executive Officer, Chief of Corporate
Administration Division in charge of Compliance
April 2020 : Director, Executive Vice President, Chief of Corporate
Administration Division in charge of Compliance
June 2020 : Executive Vice President, Representative Director, Chief ofCorporate Administration Division in charge of Compliance
April 2021 : Executive Vice President, Representative Director in charge ofCompliance (incumbent)

Director, Executive Vice President,
Private Company Sales Representative

April 1983 : Joined TOBISHIMA CORPORATION.
April 2014 : Executive Officer, General Manager, Tokyo Metropolitan Area
Building Construction Branch
April 2016 : Managing Executive Officer, General Manger, Tokyo Metropolitan
Area Building Construction Branch Office
April 2019 : Managing Executive Officer, Chief of Building Construction
Division in charge of Quality
June 2019 : Director, Managing Executive Officer, Chief of Building
Construction Division in charge of Quality
April 2020 : Director, Senior Managing Executive Officer, Chief of Building
Construction Division in charge of Quality
April 2022 : Director, Senior Managing Executive Officer, Chief of Building
Construction Division in charge of Quality (incumbent)

Mitsuhiko Takahashi

Takako Masai

Takashi Hagisako

Hiroshi Ito

Standing Auditor
April 1985
April 2010

April 1974
April 2003

: Joined TOBISHIMA CORPORATION.
: Business Management General Manager, Business
Management Department
July 2008: Administration General Manager, East Japan Civil Engineering
BranchMay 2012 : General Manager, Tokyo Metropolitan Area Civil Engineering
BranchAugust 2013 : Deputy Manager, Tokyo Metropolitan Area Building
Construction Branch
June 2015 : Standing Auditor, TOBISHIMA CORPORATION (incumbent)

July 2011
April 2014
May 2020
June 2020: Joined TOBISHIMA CORPORATION.
: General Manager, Finance Department, Business
Administration Headquarters: General Manager, Accounting Department, Business
Administration Headquarters: General Manager, Accounting Department, Corporate
Administration Division: Vice Chief of Corporate Administration Division: Standing Auditor, TOBISHIMA CORPORATION (incumbent)

Aki Nakanishi

Outside Auditor

April 2011

: Director, Public Security Division, Criminal Affairs Bureau,
Ministry of Justice
January 2012 : Director, Criminal Affairs Division, Criminal Affairs Bureau,
Ministry of JusticeDecember 2012 : Director, Secretarial Division, Minister’s Secretariat, Ministryof Justice
January 2015 : Public prosecutor, Supreme Public Prosecutors Office
July 2015: Chief public prosecutor, Morioka District Public Prosecutors’ Office
June 2016: Public prosecutor, Supreme Public Prosecutors Office
July 2016: Resigned from the public prosecutor’s post
August 2016 : Attorney registration, Dai-ichi Tokyo Bar Association (incumbent)
June 2020: Outside Auditor, TOBISHIMA CORPORATION (incumbent)

ReportReportAppoint

Board of Directors
ReportSupervision

ReportAudit

Management Conference
Instruct

Audit

ReportReportVarious Committees
Instruct

ReportRisk Management Committee
Compliance Committee

Executive Officer
Various business division/group companies

Direction/
supportReport/proposal

Direction/
adviceCorporate lawyers

Internal Control Committee

IT Promotion Meeting

Internal
audit

ReportBoard of Corporate
Auditors

Appoint

Internal Control and
Audit Office

Accounting Auditor: Joined Ministry of Foreign Affairs.
Director-General, Asian and Oceanian Affairs Bureau
Resident ambassador and plenipotentiary extraordinary to
India, and resident ambassador to Bhutan
Deputy Minister for Foreign Affairs
Vice-Minister for Foreign Affairs: Resigned from the ministry.
: Director, Mitsubishi Corporation (incumbent): Outside Director, TOBISHIMA CORPORATION (incumbent)

Outside Auditor

April 2007

: Professor, Faculty of Business Administration, Meiji University(incumbent)
October 2009 : Lecturer, Japan Advanced Institute of Science and Technology
April 2015
: Senior Researcher, Research Center for Science Systems,
Japan Society for the Promotion of Science
April 2015
: Visiting professor, Faculty of Creation of New Photonics
Industries, The Graduate School for the Creation of New
Photonics Industries (incumbent)
April 2016
: Lecturer, Faculty of Maritime Sciences, Kobe University
February 2020 : Councilor, Meiji University (incorporated educational
institution) (incumbent)
June 2020: Outside Auditor, TOBISHIMA CORPORATION (incumbent)

Director skills matrix

Report37 TOBISHIMA Integrated Report 2022

June 2016
June 2017
June 2021

Standing Auditor

Shareholders’ Meeting
Appoint

April 1976

: Joined Osaka Gas.
: Director, Osaka Gas: President and Representative Director, Kinpai: Advisor, Osaka Gas Jutakusetsubi: Corporate Auditor, Osaka Gas Jutakusetsubi: Outside Director, TOBISHIMA CORPORATION (incumbent)

Outside Director

Toshiya Natori

Organizational Chart

Outside Director

January 2004 : Joined Tokyo Branch, Calyon Bank.
May 2007 : General Manager, Capital Markets Department, Shinsei Bank
July 2015: Executive Officer and General Manager, Financial Market
Research Department, Shinsei Bank, Limited
June 2016 : Member of the Policy Board of the Bank of Japan
June 2021 : Director, SBI Financial and Economic Research Institute (incumbent)
July 2021: Outside Director, TOBISHIMA CORPORATION (incumbent)
July 2021: Outside Director, Mitsubishi Chemical Group Corporation(incumbent)
August 2021 : Outside Director, BlackRock Japan (incumbent)

Director, Senior Managing Executive Officer,
Chief of Corporate Planning Division

April 1985 : Joined TOBISHIMA CORPORATION.
October 2014 : Executive Officer, General Manager of Corporate Planning
Department
April 2017 : Executive Officer, Chief of Corporate Planning Division
April 2019 : Managing Executive Officer, Chief of Corporate Planning
Division
April 2020 : Senior Managing Executive Officer, Chief of Corporate
Planning Division
June 2020 : Director, Senior Managing Executive Officer, Chief of Corporate
Planning Division (incumbent)

Akitaka Saiki

Outside Director

April 1979
June 2010
April 2014
April 2016
June 2016
June 2018

Director, Senior Managing Executive Officer,
Chief of Building Construction Division in charge of Quality

Takuji Arao

April 1984 : Joined Fuji Bank (now Mizuho Bank).
April 2007 : Manager, Shimizu Branch, Mizuho Bank
July 2011 : Manager, Gotanda Branch, Mizuho Bank, and Gotanda 1st
Manager, Gotanda Branch
April 2013 : Manager, Nagoya Chuo Branch, Mizuho Bank
April 2015 : Yaesuguchi 2nd Manager, Yaesuguchi Branch, Mizuho Bank
April 2018 : Executive Officer, Mizuho Bank, Tokyo Chuo 2nd Manager, Tokyo
Chuo Branch, Mizuho Bank
June 2020 : Director, Executive Vice President, TOBISHIMA CORPORATION
May 2021 : Director, Executive Vice President, Private Company Sales
Representative, TOBISHIMA CORPORATION (incumbent)

Takashi Aihara

Strategy

April 1980 : Joined TOBISHIMA CORPORATION.
May 2012 : Executive Officer, Vice Chief of Building Construction Division
June 2012 : Director and Executive Officer, Vice Chief of Building Construction
Division
April 2014 : Director and Managing Executive Officer, Chief of Building
Construction Division and Responsible for Earthquake
Reconstruction
April 2015 : Director and Senior Managing Executive Officer, Chief of Civil
Engineering Division and Responsible for Earthquake
Reconstruction
April 2016 : Director and Executive Vice President in charge of Civil
Engineering and Building Construction and Responsible for theTechnology Research Institute
April 2017 : Representative Director and Executive Vice President in charge ofCivil Engineering and Building Construction Business
June 2017 : President and Representative Director (incumbent)

Executive Vice President, Representative
Director in charge of Compliance

Sustainability

Yasuo Terashima

President and Representative Director

Data Section

Masahiro Norikyo

Introduction

Directors

Name

Position and assignment at TOBISHIMA

Corporate
management/
management
strategies

Technology/
quality/environment●

Finance/accounting/banking

Legal/
compliance●

Masahiro Norikyo

President and Representative Director
President and Executive Officer●

Yasuo Terashima

Executive Vice President,
Representative Director in charge of Compliance●●

Seiichi Okuyama

Director, Executive Vice President,
Private Company Sales Representative●●

Takuji Arao

Director, Senior Managing Executive Officer,
Chief of Building Construction Division in charge of Quality●

Mitsuhiko Takahashi

Director, Senior Managing Executive Officer,
Chief of Corporate Planning Division●

Takashi Aihara

Outside Director●

Akitaka Saiki

Outside Director●

Takako Masai

Outside Director●

International
business/overseas
insights andknowledge

●
●
●

●
●
●

●

●
●
TOBISHIMA Integrated Report 2022

38

Sustainability

Strengthening the foundationsof corporate management

Corporate GovernanceRisk Management and Compliance
Basic approaches to risk management & compliance

Having established Our Actions addressing Corporate Governance Codes to respond effectively to changes in the business and social
environments, we seek to improve the efficiency, soundness, and transparency of management to enhance corporate governance.

Introduction

Basic approaches to corporate governanceRisk management and compliance are among the top corporate management issues. We have established proper management
systems through various means, including having respective sections or departments establish relevant regulations and manuals toensure that they are thoroughly communicated and understood by employees. Furthermore, to promote compliance management

Board of corporate auditors and accounting
auditors
Auditors attend the Board of Directors’ meetings, executive board
meetings, branch managers’ meetings and management
conferences, where they audit the status of business execution by
Directors. Additionally, auditors, the Internal Control and Audit
Office, and accounting auditors work closely through liaison
meetings and information exchange, striving to improve theeffectiveness and efficiency of audits. As accounting auditor, we

Each fiscal year, the Board of Directors verifies the effectiveness of
its management practices as well as that of each director andcorporate auditor based on self-evaluations and other measures. It
then discloses a summary of the results and takes action to makethe Board of Directors still more effective. The self-evaluationquestionnaires address matters required to activate discussions at
the Board of Directors, enhance information acquisition by the
directors and corporate auditors and any relevant support systems.
The results of an anonymous survey of directors and corporate
auditors implemented in FY 2021 evaluated and confirmed theeffectiveness of the Board of Directors. In these and other ways, wewill continue to enhance the effectiveness of the Board of Directors.

Risk Management Committee
To respond to companywide risks, we have established the Risk
Management Committee, chaired by a managing executive officer.
This body determines annual priority risks to be managed by top
management, based on conceivable potential risks; undertakes
quarterly inventory/evaluations and revisions; and acts to ensure
thorough communication to and understanding by all employees.
For annual priority risks, risk management measures are planned
and implemented for individual risks, incorporated into operational
processes, and adjusted and coordinated among different sections
and departments.
The management status of these priority risks are reported to the
top management by the various sections and departments. The
Crisis Management Regulations specify how to anticipate risks andrespond to any risks that manifest to preserve corporate assets
minimize consequences for business management.

Training for directors and corporate auditors
To ensure that directors and corporate auditors can adequately
fulfill their roles and responsibilities, we provide them with internal
information, as required, and opportunities to participate in external
training sessions, as well as lectures and other training opportunities
involving outside experts. For external directors and outside
auditors, we provide various opportunities to deepen theirunderstanding of business operations, including site visits.

Compliance Committee
Our Compliance Committee, chaired by an executive vice president
in charge of compliance, formulates compliance promotion plans
and supervises actions concerning corporate ethics, including legal
compliance. It also establishes Anti-monopoly Legislature Compliance
Rules and Collusive Bidding Prevention Manual and undertakes
continuous education/training for the relevant personnel to enhance■ Compliance promotion system

Presented below is the remuneration granted to directors andcorporate auditors in FY 2021.

(Note)

Actions to eliminate anti-social forces
The TOBISHIMA CORPORATION Code of Conduct stipulates theelimination of all ties to any anti-social forces. The Crisis Management
Regulations and the Anti-social Forces Handling Manual set forth
how to handle various situations and establish organizations incharge, including the appointment of a manager in charge of
avoiding unjustifiable demands. We also enhance joint efforts withspecialized bodies and lawyers, etc.
We share information about anti-social forces to ensure that all
employees are fully aware of how to handle them. When concluding
contracts, we constantly include provisions concerning theelimination of organized crime syndicates.

Compliance training

Board of Directors
Audit

Total of remuneration andother compensation in different categories

Number of directors concerned

Basic remuneration

Performance-based stockcompensation

179 million yen(13 million yen)

159 million yen(13 million yen)

19 million yen
-

10
(4)

39 million yen(9 million yen)

39 million yen(9 million yen)

-

4
(2)

Commission/
appointment

Compliance officer (officer in charge)

1. The above figures include pay for an outside director who resigned at the end of the 78th Ordinary General Meeting of Shareholders held June 29, 2021.
2. The total amount of performance-based stock compensation is the compensation for the fiscal year based on the performance-based stock compensation scheme (BBT: Board Benefit Trust)
introduced at a resolution of the 76th Ordinary General Meeting of Shareholders.

39 TOBISHIMA Integrated Report 2022

In accordance with the enforcement of the 2006 Whistleblower
Protection Act, a reporting contact office was set up and an internalreporting regulation established to make efforts to implement andimprove activities and systems to raise awareness of thewhistleblower system.

Compliance Committee

ReportWe implement compliance e-learning via the intranet for all
officers and employees. We also implement complianceeducation in various ways, including new employee orientationand group training according to status and business division.
To further promote compliance, we publish the monthly
Compliance Communication as a compliance promoting
document to raise employees’ awareness of compliance.

Compliance departments(Compliance Management Department,Internal Control and Audit Office)Report/consultation

Control manager of department compliance(Headquarters/branches/group companies)
Report/consultation

Consultation/
notification

Directors(Amount paid to outside directors
within the above)
Corporate auditors(Amount paid to outside corporate
auditors within the above)

Whistleblower system

Shareholders (Shareholders’ Meeting)■ Amounts of remuneration and other compensation paid to directors and corporate auditors

Total of remuneration andother compensation

our actions against any collusive biddings. It also establishes Insider
Trading Prevention Management Regulations for effective preventionof insider-trading.

Board member remuneration

President

Director categories

Strategy

communication to and the understanding of all employees.

Sustainability

Assessing the effectiveness of the Board of
Directors

practices, we revise the Compliance Manual in response to the changing social environment and take steps to ensure thorough

Data Section

As a company with a board of company auditors, we haveestablished a management system that allows directors to makedecisions and execute business affairs expeditiously and promotes
effective management and supervision, thereby enabling andenhancing effective corporate governance.
The Board of Directors meet, in principle, monthly, and hold othermeetings as necessary to discuss and decide basic management
policies and important matters, supervise business execution status,and confirm the progress of execution of the management plans.
The decisions are shared at executive board meetings and branchmanagers’ meetings, and instructions based on such decisions areprovided at these meetings. Additionally, with the aim of increasing
the effectiveness of supervisory functions and the efficiency ofbusiness execution by separating the decision-making/supervisory
function from the executive function, we’ve introduced an executive
officer system.
To enhance the efficiency of business execution, a management
conference consisting of representative directors, executive officers,
general managers of divisions, and other executive officers, etc.
holds a meeting once a week and whenever necessary. This
organization is responsible for making decisions related to strategic
matters and daily tasks, as well as for summarizing managementrelated reports from each department.

have appointed Deloitte Touche Tohmatsu LLC, who handles our
audits in a fair manner based on the Companies Act and the
Financial Instruments and Exchange Act.

Board of company
auditors

Business execution system

Employees, etc.
(full-time company staff/contract employees/dispatched employees/part-timers, etc.)

TOBISHIMA Integrated Report 2022

40

Sustainability

To enhance corporate value, we actively incorporate various expertise of external officers and seek to improve environments
where they can fulfill their roles and capabilities to the fullest.
Here are messages from external officers about their evaluations of our current approaches toward sustainable growth and futurechallenges.

Strategy

We will enhance the effectiveness of
our corporate governance and of the Board of Directors
while incorporating various input andinsight from external officers,
thereby maintaining sustainable growth.

I would first like to express my candid impressions of the Board of Directors,
which seems to be operating in quite an amiable atmosphere, where outside
directors can freely express their opinions. This is probably due to the nononsense manner of Mr. Norikyo, the president. The right amount of information
is provided in a timely manner. Our understanding has been greatly enhanced by
the Company initiative to arrange site visits for various projects, in response tooutside director requests.
One aspect deemed challenging for the Company, as viewed from an outside
director, is the personnel issue. In serious consideration of the results of the
Employee Satisfaction Survey for the current term, the Company would need towork on short-term, as well as medium-to-long-term, measures, considering
what should be done to protect employees’ health and life, and enhance theirwork motivation.
I would also emphasize that cases of failure are more important than cases ofsuccess for any organization to grow. By sharing information about failed projects
in the past, and difficulties in any present activities straightforwardly with outside
directors, I will be able to provide more proper advice, based on my experience.

Sustainability

Messages from outside directors

Introduction

Sharing cases of failure with outside directors, the Company can benefit morefrom proper advice based on individual unique experience.

Local governments have diverse policy issues.
This means we have many chances to help solve the problems of local communities
by drawing on our highly competitive proprietary technologies.

The Company’s efforts for qualitative improvements of the Board of Directors
are highly appreciated, as in the supports it provides to encourage outside directors
to contribute actively to various meetings.

As management policies move in the direction of diversification, the numberof outside directors has grown from two to three, making the management
system more compatible with diverse perspectives. Furthermore, the Company
provides outside directors with necessary information as appropriate, including
documents for the management conference sessions, facilitating ourunderstanding of corporate governance. In addition, several annual site visits
provide us with more in-depth knowledge about corporate activities.
To ensure our future sustainable growth, for the short-term, we recognize twochallenges: Transforming ourselves into a new construction industry leader
through early promotion of DX to respond to the rapidly changing social reforms
and enhancing core business areas of new business fields.
Simultaneously, in the medium-to-long term, we recognize the importance ofmarketing activities that go hand in hand with customers by breaking free of theconventional image of the construction industry, identifying, and learning about
local community issues, and proposing our winning technologies. Specifically, local
governments confront various challenges, to which our proprietary expertise caneffectively contribute. As regards the top management, I would like to propose
more active approaches to be made to the heads of various governmental bodies.

I highly appreciate the Company’s arrangements for allowing me to contributerapidly and actively to various meetings, as sincere responses to my preliminary andex post facto questions and confirmation about agenda of the Board of Directors’
meetings. In addition, I have been allowed to visit actual civil engineering/architecturalsites, participate in branch managers’ meetings, and share information discussed atmanagement conferences. The Company’s efforts in the field of qualitative
improvements of the Board of Directors and governance are quite tangible.
SX management promotion will require, in the short term, measures to ensure
successful completion of the Medium-Term Five-Year Plan, and in the long term,
efforts to improve profitability under the macroeconomic conditions different
from those assuming cost increases in the past several decades.
The top management naturally recognizes these changes in businessenvironments, but the key question is whether these issues are fully shared at theindividual worksites and whether there is a general trend of change and moving
forward within the entire Company. These are the points the Board of Directors
should carefully monitor. In terms of both short-term and long-term perspectives,securing human resources should be a crucial issue. With that in mind, I will watchwith anticipation the executives’ actions toward diversity and inclusion (D&I).

Takashi Aihara Outside Director

Takako Masai Outside Director

41 TOBISHIMA Integrated Report 2022

TOBISHIMA Integrated Report 2022

Data Section

Akitaka Saiki Outside Director

42

Data Section

Previous
consolidated
accounting year
(Year ended on
March 31, 2021)

Civil engineeringand construction
business

Building
construction
business

Development
business, etc.

In the building construction business, the net sales of completed construction contracts were 47.338
billion yen (up 3.7% over the preceding consolidated accounting year) due to steady progress ofconstruction projects, etc. The segment profit in the building construction business was 1.757 billion yen(up 268.0% over the previous consolidated accounting year).
In the development business, the net sales of development business, etc. were 7.150 billion yen (up 21.6%
over the preceding consolidated accounting year) due to sales of net assets, etc. The segment profit in thedevelopment business, etc. was 0.502 billion yen (as compared to loss of 0.006 billion yen in the previous
consolidated accounting year).

Risks posed by business, etc.
Of matters related to business and accounting affairs
described in the financial statements, major risks
recognized by the management to be serious and to pose
the risk of material impact on consolidated financial
position, business performances, and cash flow status are
as indicated on the right. The TOBISHIMA Group recognizes
the possibility of the occurrence of incidents associatedwith these risks and strives to avoid them and takenecessary measures should they arise.
Matters concerning future events are based onassumptions concerning the Group based on conditions
as of the end of the consolidated accounting year.

43 TOBISHIMA Integrated Report 2022

(2) Risks associated with the Company’s business operations(i) Trends in domestic construction market(ii) Credit risks posed by business partners(iii) Quality problems and occupational accidents during
construction(iv) Difficulty securing skilled workers(v) Corporate takeover, capital alliance, and business restructuring

Previous
consolidated
accounting year
(Year ended on
March 31, 2021)(Year ended on
March 31, 2022)

Current
consolidated
accounting year
(Year ended on
March 31, 2022)

Liabilities
Current liabilities

Current assets
Cash and deposits

25,43912,968Notes payable and accounts payable
for construction contracts and other

26,246

26,174

Short-term borrowings

5,249

3,157

Advances received on construction
contracts in progress

6,459

5,426

Deposits received

22,236

19,076

Notes receivable and accounts
receivable from completed
construction contracts and other52,29457,015

Real estate for sale

1,043

614

Costs on construction contracts
in progress and other

1,903

2,178

Provision for warranties forcompleted construction

364

416

Costs on development businessand other in progress

6,196

6,706

Provision for loss on construction
contracts

272

166

Other

3,267

2,393

Other

7,171

7,276
Total current liabilities

64,09756,811

Allowance for doubtful accounts△7△６

94,04186,754

14,943

13,037

Provision for share awards for
directors (and other officers)

27

47

Provision for retirement benefits
for directors (and other officers)59

33

Retirement benefit liability

73

43

Other

811

786

15,915

13,94880,01270,759

Share capital

5,519

5,519

Capital surplus

6,237

6,237

Retained earnings

29,354

31,621

Treasury shares

△577

△580

Total shareholder equity

40,53442,797

Fixed assets
Tangible fixed assets
Buildings and structures

17,15819,032

Machinery, vehicles, tools,
furniture, and fixtures

4,784

4,420

Land

8,500

8,193

Leased assets

134

148

Construction-in-progress
account

1,555

16

Cumulative depreciation△12,897△12,797

Total fixed assets

19,236

19,013

Intangible fixed assets

1,096

996

Fixed liabilities
Long-term borrowings

Total fixed liabilities

Investments and other assets(1) Risks associated with external business environments,
including geopolitical events and economic trends(i) Risks posed by international conflict(ii) Risks associated with COVID-19 pandemic(iii) Legal and regulatory risks(Units: million yen)

Current
consolidated
accounting year

AssetsTotal current assets

In the civil engineering and construction business, because there were fewer projects that progressedsignificantly toward completion compared to the previous year and for other similar reasons, net sales ofcompleted construction contracts was 63.175 billion yen (down 4.0% from the previous consolidated
accounting year). The segment profit in the civil engineering and construction business was 5.104 billion
yen (down 12.2% from the previous consolidated accounting year).

Introduction

14.7% over the previous consolidated accounting year), a 10.9%
increase over the scheduled figure of 3.8 billion yen. The recurring
profit margin was 3.6% (up 0.5 percentage points over theprevious consolidated accounting year). Return on assets was
3.6% (up 0.6 percentage points over the previous consolidated
accounting year).
Extraordinary losses resulted in a loss of 0.316 billion yen due
to impairment losses, etc. (a 0.008-billion-yen loss in the previous
consolidated accounting year). As a resulting of registering 0.611
billion yen for decreased corporate tax, resident tax, and businesstax compared to the level of the preceding consolidated
accounting year (1.153 billion yen in the previous consolidated
accounting year) due to decreased taxable income through salesof assets, and registering 0.064 billion yen for income taxesdeferred (0.06 billion yen in the previous consolidated accounting
year), the current net income attributable to shareholders ofparent company reached 3.219 billion yen (up 31.3% over theprevious consolidated accounting year), a 34.2% increase overthe scheduled 2.4 billion yen.

Total liabilities
Net assets
Shareholder equity

Investment securities

4,229

4,094

Accumulated other comprehensive income

Retirement benefit assets

1,280

1,942

Valuation differences on availablefor-sale securities

714

630

Other

1,915

2,032

Foreign currency translation adjustments

1

7

Allowance for doubtful
accounts

△200

△201

Remeasurements of defined
retirement benefit plans

329

428

Total investments and otherassets

1,066

7,867

Total accumulated othercomprehensive income

1,044

7,223

7

8

27,55627,87841,58643,872

121,598

114,632

121,598

114,632

Total fixed assets

Total assets

Strategy

In the consolidated performance of the TOBISHIMA Group in
this consolidated accounting year, the consolidated net sales
failed to reach the scheduled 132.0 billion yen. It was off by 10.9%,
resulting in 117.665 billion yen (up 0.3% over the previous
consolidated accounting year), due to mismatches over order
receiving timings and delayed construction commencement, andso on, under the lingering influence of the COVID-19 pandemic.
Gross profit amounted to 13.212 billion yen (up 9.1% over theprevious consolidated accounting year) due to profit increases
made possible by improved construction profitability despite thedecreased sales as stated above, and strong performance ofconsolidated subsidiaries’ profit increases, etc. Operating profit
after deducting selling, general and administrative expenses of
8.637 billion yen (8.118 billion yen in the previous accounting year)
reached 4.575 billion yen (up 14.5% over the previous consolidated
accounting year), exceeding the scheduled 4.2 billion yen by 8.9%.
Non-operating profit/loss ended in a loss of 0.362 billion yen(as compared to 0.321 billion yen in the previous consolidated
accounting year). Ordinary profit reached 4.212 billion yen (upConsolidated balance sheet (for the year ended in March 2022)

Sustainability

Performance overview

Consolidated Financial Statements

Data Section

Explanation of Corporate Performance

Noncontrolling interests
Total net assets
Total liabilities and net assets

TOBISHIMA Integrated Report 2022

44

Data Section

Current consolidated
accounting year

(From April 1, 2020, to March 31, 2021)(From April 1, 2021, to March 31, 2022)(From April 1, 2020, to March 31, 2021)(From April 1, 2021, to March 31, 2022)

111,413

110,514

3,665
871
－
78
2
115
△66
△429
－
△33
267
△37
△102
△3
△0
－
－
－
5
3,780
494
△329
△1,656
1,905
△64
△28
△5,556
1,117△1,054
2,766
717
△78
18
6,363
33
△261
85
△45
△2,001
4,173

3,895
911
371
127
△0
52
△106
△15
△520
△27
215
△28
－
36
△0
24
△20
△91
△2
△4,694
428
△275
△515
△1,032964△270△99△1,032
117△3,156△761
16
212△5,277
27
△214
－
△2
△720
△6,187△11,600
13,112△2,091
15
△124
△281
－
△236
－
△7
43
△7
△1,175－13△1,459
5
△160
△255
223
－
△145
△5
27
△17
△1,772△2,251
13,660△11,213
△961
△79
△846
34
2,185
23,05025,235△3,0003,890△4,412△961△77△4,561
35△12,486
25,235
12,749

5,882

7,150
117,665

Cost of sales of completed construction contracts

99,964

98,654

Cost of sales in development business and other

5,216

5,798

105,181

104,452

Gross profit on completed construction contracts

11,448

11,859Gross profit on development business and other

665

1,352

12,113

13,212

Cost of sales

Total cost of sales
Gross profit

Total gross profit
Selling, general and administrative expenses

8,118

8,637

Operating profit

3,995

4,575

Non-operating income
Interest received

3

2

Dividend’s income29

25

Foreign exchange gains－

38

Investment partnership gains－

20

Employment adjustment subsidies

102

－

Other

114

37

Total non-operating income

250

123

Interest expenses

267

215

Design activity expenses－

87

Syndicated loan commissions

187

50

Other

117

132

Non-operating expenses

Total non-operating expenses
Ordinary profit

572

486

3,673

4,212

Extraordinary income
Gain on sale of fixed assets

03Gain on sale of shares of subsidiaries and associates

－

91

Other

0

0

Total extraordinary income

195

Extraordinary losses
Loss on sales and retirement of fixed assets

50Loss on valuation of investment securities－

371

Fixed asset advanced depreciation deduction0－

Golf membership impairment loss

1

－

Other

1

40

Total extraordinary losses

9412

Profit before income taxes
Corporate taxes, resident taxes, and business taxes
Corporate taxes - deferred

3,665
1,153
60

3,895
611
64

Total corporate taxes

1,213

676

Current net profit

2,451

3,219

0

△0

Profit attributable to owners of parent

2,451

3,219

Total net profit

2,451

3,219

Valuation differences on available-for-sale securities

△21

△83

Foreign currency translation adjustments△37Remeasurements of defined retirement benefit plans

647

98

Profit or loss (△) attributable to noncontrolling interests

Other comprehensive income

623

23

3,075

3,242

Comprehensive income attributable to owners of parent

3,075

3,241

Comprehensive income attributable to noncontrolling interests△00

Total other comprehensive income
Comprehensive income(Breakdown)

45 TOBISHIMA Integrated Report 2022

Cash flow from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increases/decreases of provision for bad debts (“Δ” indicating decrease)
Increases/decreases of provision for warranties for completed construction (“Δ” indicating decrease)
Increases/decreases of provision for loss on construction contracts (“Δ” indicating decrease)
Increases/decreases of retirement benefit liabilities (“Δ” indicating decrease)
Increases/decreases of retirement benefit assets (“Δ” indicating decrease)
Interest and dividends received
Interest paid
Foreign exchange gains/losses (“Δ” indicating gain)
Employment adjustment subsidies
Pneumoconiosis compensation
Gain/loss on sale of investment securities (“Δ” indicating gain)
Gain/loss on valuation of investment securities (“Δ” indicating gain)
Gain/loss on investment partnerships (“Δ” indicating gain)
Gain/loss on sale of shares of subsidiaries and associates (“Δ” indicating gain)
Gain/loss on sale of tangible fixed assets (“Δ” indicating gain)
Increase/decrease in trade receivables (“Δ” indicating increase)
Increase/decrease from real estate for sale (“Δ” indicating increase)
Increase/decrease in costs on construction contracts in progress (“Δ” indicating increase)
Increase/decrease in costs on development business and other in progress (“Δ” indicating increase)
Increase/decrease in consumption tax and other taxes receivable (“Δ” indicating increase)
Increase/decrease in accounts receivable (“Δ” indicating increase)
Increase/decrease in other assets (“Δ” indicating increase)
Increase/decrease in trade payables (“Δ” indicating decrease)
Increase/decrease in receivables on construction contracts in progress (“Δ” indicating decrease)
Increase/decrease in receivables on development business and other in progress (“Δ” indicating decrease)
Increase/decrease in deposits received (“Δ” indicating decrease)
Increase/decrease in consumption tax and other taxes payable (“Δ” indicating decrease)
Increase/decrease in other payables (“Δ” indicating decrease)
Other
SubtotalInterest and dividends received
Interest paid
Employment adjustment subsidies received
Pneumoconiosis compensation paid
Corporate tax and other taxes paid
Cash flow from operating activities
Cash flow from investments
Payment(s) to acquire investment securities
Gains on maturing investment securities
Payment(s) to acquire tangible fixed assets
Gain(s) on sales of tangible fixed assets
Payment(s) to acquire intangible fixed assets
Payment(s) to acquire investment securities
Gain(s) on investment partnership profit sharing
Payment(s) to acquire shares of subsidiaries accompanying changes in consolidation scope
Payment(s) for sale of shares of subsidiaries accompanying changes in consolidation scope
Debt service paymentsGain(s) on successful debt collection
Other
Cash flow from investments
Cash flow from financing activities
Net gains/losses on short-term borrowings (“Δ” indicating decrease)
Net gains on long-term borrowings
Repayment of long-term borrowings
Dividend payments
Other
Cash flow from financing activities
Effects of currency translations on cash and cash equivalents
Increase/decrease in cash and cash equivalents (“Δ” indicating decrease)
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

TOBISHIMA Integrated Report 2022

Introduction

Previous consolidated
accounting year

Strategy

Current consolidated
accounting year

117,295

Net sales in development business and otherTotal net sales(Units: million yen)Previous consolidated
accounting year

Net sales
Net sales of completed construction contracts

Consolidated statement of cash flow

Sustainability(Units: million yen)

Data Section

Consolidated statement of income

46

Data Section

1883

Month and yearof incorporation

March 1947

Paid-in capital

5,519,942,968 yen

LicenseConstruction license: grantedby Minister of Land, Infrastructure
and Transportation(Toku-04) No. 1400
(License date: April 25, 2022)

Number of
employees(consolidated)

Corporate
Planning
Division

1,450 (non-consolidated: 1,180)

Representative

Masahiro Norikyo,
Representative Director, and President

Address

W Bldg. 1-8-15, Konan, Minato-ku, Tokyo,
108-0075, Japan

Branches,
research
institutes

Sapporo BranchPresident

Research Institute of Technology
Sapporo Branch
Tohoku BranchTokyo Metropolitan Area
Civil Engineering BranchTokyo Metropolitan Area
Construction Branch
Nagoya Branch
Hokuriku Branch
Osaka Branch
Chugoku Branch
Shikoku Branch
Kyushu BranchInternational BranchOverseasbusiness office

Brunei, Pakistan, Myanmar

Account closing
month

March

Ordinary General
Meeting of
Shareholders

June

Major Group
Companies

E&CS Co., Ltd.
Sugita Construction Corporation
Tequanauts Co., Ltd.
FOR YOU, Inc.
Axisware, Inc.
NXTField, Inc.

Corporate
Administration
Division

40,000,000 shares

Total number of outstanding shares

19,310,436 shares

Tohoku Branch

Number of shareholders

30,378

Safety & Environment
Department

Tokyo Metropolitan Area
Civil Engineering Branch

Listed securities exchange

Prime Market, Tokyo Stock Exchange

Corporate Planning
Department

Tokyo Metropolitan Area
Building Construction Branch

Securities Code1805

Shareholder registry administrator

Mizuho Trust & Banking Co., Ltd.

FSC Management
Department

Nagoya Branch

New Business Management
Department

Hokuriku Branch

Affiliates Administration
Department

Osaka Branch

Major Shareholders
Number ofshareholding(1,000 shares)

Ratio ofshareholding (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,166

11.27

Custody Bank of Japan, Ltd. (Trust Account)

1,044

5.43

Tobishima Kyoei-kai (Co-prosperity Association)

1,035

5.38

TOBISHIMA CORPORATION Jishakabu-Toshi-kai(Treasury Share Investment Association)

434

2.26

Information Systems
Department

RE FUND 107-CLIENT AC(Standing Proxy: Citibank, N.A, Tokyo Branch)

299

1.56

Accounting Department

CGML PB CLIENT ACCOUNT/COLLATERAL(Standing Proxy: Citibank, N.A, Tokyo Branch)

297

1.55

General Affairs
Department

Masayoshi Yamauchi

259

1.35

Personnel Department

Masafumi Miyamoto

257

1.34

DFA INTL SMALL CAP VALUE PORTFOLIO(Standing Proxy: Citibank, N.A, Tokyo Branch)

222

1.16

BBH LUX/DAIWA SBI LUX FUNDS SICAV-DSBI JAPAN EQUITY SMALL CAP ABSOLUTE VALUE(Standing Proxy: Sumitomo Mitsui Banking Corporation)

200

1.04

Shareholder

Finance Planning
Department

Chugoku Branch

Public Relations Office

Shikoku Branch

Secretarial Office

Kyushu Branch

General Administration
Department

International Operations
DivisionEnterprise System Re-construction
Development Office
Procurement
Department
Business Management
Department
Civil Engineering Business
Promotion Department
Engineering Planning
Department
Construction Business
Promotion Department
Civil
Engineering
Division

Total number of authorized sharesInternal Control & Audit
OfficeCompliance Management
Department

Business
Promotion
Division(Note) Shareholding ratios are calculated by deducting treasury shares (79,000 shares). The number of treasury shares excludes company shares
held by trust accounts concerning the Board Benefit Trust (BBT) (102,000 shares).

Ownership distribution of unit stocks
Financial instruments
business operators
Other corporations

7.9%

Civil Engineering
Management Department

18,811,200

Civil Engineering Design
Department

sharesInfrastructure Renewal
Department
Green Infrastructure
Department
Construction Management
Department
Construction Design
Department
Zero-carbon Office
Research Institute ofTechnology

47 TOBISHIMA Integrated Report 2022

National/local governments

0.00%

1.8%

Civil Engineering Technology
Development Department

Building
Construction
Division

Introduction

Year ofestablishment

Status of stocks

Strategy

TOBISHIMA CORPORATION

Organizational Chart (as of October 1, 2022)(as of March 31, 2022)

Sustainability

Company overview
Company name

Stock Information(as of March 31, 2022)

Data Section

Company Information

Overseas
corporations, etc.

13.1%
Private citizens, etc.

57.0%

Financial institutions

20.2%* The number of unit stocks in treasury shares is included in “Private citizen,
etc.”; the number of unit stocks in Japan Securities Depository Center, Inc.
(unregistered) is included in “Other corporations.”

TOBISHIMA Integrated Report 202248

We support arts created by the disability community.

“Memories of Summer,” by Niji Kisaragi, awarded Highest Prize

Shougaisha Jiritsu Suishin Kikou Association (Paralym Art, ageneral incorporated association) contributes throughongoing efforts assisting self-support initiatives for those withdisabilities from private enterprises and citizens without relying
on social security measures, based on the philosophy of“creating a world in which people with disabilities can maketheir dreams come true through art.”
As part of our SX management promotion, we concluded a
Platinum Partner Contract, and held a design competition with
“ Water ” as the theme. The prize-winning art pieces are
displayed in our internal facilities and used as designs for ournovelty goods and temporary fences at our construction site.

W Bldg. 1-8-15, Konan, Minato-ku,
Tokyo, 108-0075, Japan
www.tobishima.co.jp