2016
2016

ended
March
2016
YearYear
ended
March
31,31,
2016

Profile

HAZAMA ANDO CORPORATION was launched on April 1, 2013, through the merger of
HAZAMA CORPORATION and ANDO Corporation, with the aim of an expanded businessscale, a streamlined and more effective management structure, and greater earning
capacity.
ANDO Corporation was founded in 1873, and HAZAMA CORPORATION in 1889.
As general contractors, each with well over a century of history and possessing industryleading technological capabilities built on experience with numerous projects, these twocompanies have contributed to Japan’s development and the creation of today’s modern
lifestyle. The firm’s business scope extends beyond Japan to 30 countries and territories
around the world.
In addition to an expanded business scale and greater management efficiency, themerger has brought together HAZAMA CORPORATION’s established reputation in civilengineering with ANDO Corporation’s expertise in building construction, allowing the
integrated company to utilize the complementarity effect of each firm’s previous
accomplishments, and generate synergies in terms of technology, marketing, and costcompetitiveness. In the three years since the merger, HAZAMA ANDO CORPORATION has
strengthened its management foundation, and achieved a high level of profitability.
HAZAMA ANDO CORPORATION aspires to be a “good company” for all of its
stakeholders. With solid technology and passion we will meet expectations, and contributeto the development of society through building and manufacture. Further, by looking
beyond the present, continually seeking to create new value, and enhancing sustainablecorporate development, we will seek to realize a prosperous future, and to build a new
history as HAZAMA ANDO CORPORATION.

CONTENTS

Financial Highlights.................................................................................. 1
Message from the Chairman & the President............................................ 2
Business Conditions and Outlook............................................................. 3
Topics 2016............................................................................................. 4
Review of Operations............................................................................... 6
Corporate Governance............................................................................ 8
Consolidated Financial Review................................................................. 9
Consolidated Balance Sheets.................................................................. 12
Consolidated Statements of Income....................................................... 14
Consolidated Statements of Comprehensive Income............................... 15
Consolidated Statements of Changes in Net Assets................................. 16
Consolidated Statements of Cash Flows................................................. 18
Notes to Consolidated Financial Statements............................................ 19
Independent Auditor‘s Report................................................................ 43
Global Network..................................................................................... 44
Corporate Data / Directors, Officers / Major Subsidiaries and Affiliates....... 45

Financial Highlights
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2016, 2015 and 2014

Millions of yen		2016¥379,258
25,457
14,984300,368
76,978

Consolidated
Revenues
Operating income
Profit attributable to owners of parent
Total assets
Net assets
		Basic profit per share
Net assets per share

Thousands of
U.S. dollars

2015¥369,703
18,5187,240
269,720
64,621

2014¥371,217
12,07816,414
260,646
54,381

2016$3,365,498
225,903
132,9662,665,436
683,096

Yen

¥

81.03
411.76¥

U.S. dollars

39.17
345.56¥96.47
290.96

$

0.72
3.65

Notes: 1. U.S. dollar amounts in this annual report are translated from yen at the rate of ¥112.69 to US$1.00 for convenience.
2. The main reason for significant changes in the management indicators of 2014 due to the merger with ANDO Corporation.

Non-Consolidated

Consolidated

Consolidated

Revenues

Millions of yen

Operating Income

Millions of yen

Orders Received

25,457400,000

371,217369,703379,258

399,308

400,000

25,000Millions of yen

362,214
333,760
20,00018,518300,000

300,000

15,00012,078200,000

200,000

10,000100,000

100,000

0

5,000

‘14

‘15

‘16

0

‘14

‘15

‘16

0

‘14

‘15

‘16

1

Message from the Chairman & the President

Toshio Ono,
Representative Director andChairman of the Board of Directors

The HAZAMA ANDO CORPORATION Group, withthe aim of being a company able to achievesustainable growth, formulated a medium-term
management plan (FY3/16 – FY3/18) with thestrategic theme of “Transformation to an Engaging
Corporate Group,” and made a concerted effort toimplement this plan.
In the fiscal year ended March 2016, the firstyear of this new management plan, we madeproactive efforts for securing and developing humanassets, and improving the work environment. These
measures were implemented on schedule.
In terms of business results, supported by themoderate recovery in the Japanese economy, we
exceeded our plan target figures for both revenue
and earnings, with ordinary income reaching a newrecord high. This is the result of the understanding
and support we have received from stakeholders, andwe would like to express our sincere appreciation.
Looking ahead to the fiscal year ending March

2

Toshiaki Nomura,
Representative Director and President

2017, several aspects for concern remain in thebusiness environment. The economic outlook isclouded by the slowdown in emerging economies,
and moderation in consumer spending and private
sector capital expenditures. We also need to remain
cautious regarding supply-demand trends for skilledconstruction workers and building materials.
Under such circumstances, the HAZAMA ANDOCORPORATION Group will steadily implement themeasures of the management plan, maintain stability
in its management and financial base, and follow toa path for sustainable growth.
We will adhere to our basic management policyof “Safe, Reliable, High-Quality Manufacturing,” withthe aim of establishing a relationship of mutual
growth with all stakeholders, including society,customers, shareholders, business partners, andemployees. We ask for your continued understanding
and support.

Business Conditions and Outlook

1

Summary of Business Activities

The Japanese economy continued to recover at a moderate pace overall during the fiscal year ended March 2016, withimprovement in corporate earnings along with employment conditions and wages, mainly as a result of the government’s
steady implementation of measures for overcoming deflation and long-term economic growth.
At the same time, the continuing slowdown in emerging economies and cautious attitudes toward consumer
spending and private sector investment remain factors for concern that could depress the Japanese economy, making fora turbid economic outlook.
In the construction industry, the principal business of HAZAMA ANDO CORPORATION Group, construction
demand remained firm on steady growth in disaster recovery-related projects and public sector construction investment,along with recovery in private-sector capital investment. However, the supply-demand trends for skilled construction
workers and building materials continue to warrant caution, with the business environment continuing to present areas
for concern.
Under such conditions, HAZAMA ANDO CORPORATION Group recorded consolidated revenues of ¥379.2 billion(+2.6% year on year) for the fiscal year ended March 2016, with operating income of ¥25.4 billion (+37.5%), ordinary
income of ¥23.3 billion (+28.6%), and profit attributable to owners of parent of ¥14.9 billion (+106.9%).

Results by business segment are as follows.
•Civil Engineering
Revenues amounted to ¥122.5 billion (+0.8% year on year), with operating income of ¥15.0 billion (+57.7%).
•Building Construction
Revenues amounted to ¥233.4 billion (+3.3% year on year), with operating income of ¥12.6 billion (+21.7%).
•Group Business
Revenues amounted to ¥18.7 billion (+1.6% year on year), with operating income of ¥1.6 billion (+17.5%).
•OtherRevenues amounted to ¥4.5 billion (+22.5% year on year), with operating income of ¥0.3 billion (-59.5%).

2

Outlook for the Next Fiscal Year (ending March 2017)

The Japanese economy is expected to recover at a moderate pace, though we expect uncertainty in the economic outlook
to remain as a result of such factors as the slowdown in emerging economies.
Also, with construction related to the 2020 Olympics and Paralympics and other large-scale projects scheduled toget fully underway, the supply-demand trends for skilled construction workers and building materials will continue towarrant caution. Private sector investment is also recovering at a moderate pace, but could also be postponed dependingon the degree of business confidence.
Under such circumstances, in May 2015 HAZAMA ANDO CORPORATION formulated its medium-term
management plan for the fiscal year ending March 2016 through the fiscal year ending March 2018.

2nd Medium-Term Management Plan
Summary of the Medium-Term Management
Plan
1.Period
The fiscal year ending March 2016 through thefiscal year ending March 2018
2.Strategic Theme“Transformation to an Engaging Corporate Group”
3.Priority Measures
1) Measures for sustainable growtha. Enhance construction capabilities
b. Expand business scopec. Procurement measuresd. Secure management resources2) Measures for work satisfaction and personal
growtha. Improve the work environmentb. Promote career formation with a sense ofsatisfaction3) Measures for coexistence with society
a. Measures for safety and quality
b. Measures to address issues in the constructionindustryc. Measures to respond to changes in the social
environment4) Measures to stabilize and strengthen management
and financial foundations
a. Stabilize and strengthen management andfinancial foundation
b. Returns to shareholders
4.Target Figures
The fiscal year ending March 2018 (the fiscal year end of final plan year)
Construction orders received
Revenues
Operating income
Operating profit margin
ROE
Payout ratio

Non-consolidated
Consolidated
Around ¥400bn—
Around ¥380bn Around ¥400bn
Around ¥19bn
Around ¥20bn
Stably above 5%—Over 10%—Around 20%

3Topics 2016

Development and Application of the Geological
Information CIM Management System
Consolidated Management of Geological Informationand Measured Data with 3D Modeling
During mountain engineering projects such as mountain tunnels
and dams, various assessments on the soil characteristics are
conducted during the survey and planning stage, with details on
soil conditions confirmed and evaluated during the actual
construction, in order to ensure the required construction quality.
The Geological Information CIM Management System wasdeveloped to make these operations more sophisticated,
automated, and labor-saving. HAZAMA ANDO CORPORATION
has used this system for numerous projects (13 tunnels, 1 dam,and 3 site development projects). Improvements to the systemwere made based on the needs identified at each project site,
and we completed registration with the New Technology
Information System (NETIS) administered by the Ministry of Land,
Infrastructure, Transport and Tourism. (Registration No.
KK-110010-A)
Details of the system development:
For mountain tunnels• Allows for consolidated management of construction
information, including 3D positioning of face photos, andrecording of lining concrete placement (Fig. 1)• Provides 3D representation of measured data, including earth
surface displacement and ground water levels
For dams• Application of CIM for dam body base excavation slope,
allowing for automatic calculation of excavation quantity foreach soil type
• Provides 3D presentation of measured data, including earth
surface displacement and ground water levels

Expanded Range of Application for the APRSS
Construction Method, Lowering Construction Costs
Construction Technique Performance Verification
Reacquired
The APRSS construction method, a combined pillar/beam joining
method, is a hybrid construction method that uses reinforced
concrete (RC) for the pillar material, combined with beams madeof steel (S) or steel framed reinforced concrete (SRC). HAZAMAANDO CORPORATION revised the technique with an expanded
application range in order to further rationalize the construction
method, and reacquired the construction technique performanceverification (GBRC Performance Verification No. 07-04, Rev. 2)
from the General Building Research Corporation of Japan.
Conventional reinforced concrete construction has highcompression yield strength and rigidity, but since the materials
are heavy, application is limited to buildings with comparatively
short spans. Steel construction is lightweight with high yieldstrength, and so is suited to buildings with longer spans, but
steel is expensive compared to RC, and the time required to
procure steel pillars is a further complication. The APRSS method
4Going forward, we plan a full-fledged application of thissystem by utilizing ICT to enhance communication between the
project site and the engineering divisions at the head and branch
offices. We will use CIM to share a range of information on thestatus of construction in real time, and build a system that allows
us to deal promptly with problems that arise at the project site.
Fig.1 Overview of the Geological Information CIM
Management System
Example of modeling for the Shinkawame tunnel
Geological
profile(design)

Face photos(construction
data)

Construction
data attributerecords

Various construction
records

Modeling ofmultiple pieces
of information

The visual representation of the designand construction information allows forquick agreements and policy decisions.

Fig.2 Example of 3D Modelling (Dam Body Base Excavation Slope)

Dam
body
base

Cross section of upstream
and downstream direction

is well suited for structures that require wide spaces, such as
distribution warehouses, manufacturing or commercial facilities,
and medical centers. It is also more economical than steel
construction, while offering exceptional performance.
HAZAMA ANDO CORPORATION developed a techniquethat allows for combination with steel braces. The braces areplaced according to such considerations as the building spanand superimposed load, so by appropriately limiting thesection size of the pillars and beam, and the amount of
Fig.1 Overview of the Revised APRSS Construction Method
Steel pillar joint

Off-center beam connection
Combination with steel bracereinforcing steel used, the cost can be reduced. On theuppermost floor, which only needs to support the lightweightroof, small section steel pillars are used, which is more
economical compared to RC construction. Further, the beams
can be fitted off-center to the pillars, allowing for a significant
reduction in the number of fittings needed to attach theexterior wall, and the amount of reinforcing material necessary

H A Z A M A A N D O C O R P O R AT I O N R e c e i v e s“Chairman’s Prize” at the 12th JLCA Awards
HAZAMA ANDO CORPORATION received the JLCA Chairman’s
Prize at the 12th JLCA Awards in February 2016, sponsored by
the Life Cycle Assessment Society of Japan (JLCA).
The JLCA Awards were established in 2004 to recognize
the efforts of companies, organizations, and researchers in
reducing the environmental load in the lifecycle of products.
HAZAMA ANDO CORPORATION received the prize for utilizing acarbon footprint (CFP)* to provide a visual representation of CO2
emissions in a building.
The amount of CO2 from a building is considerable, and iscomplicated by numerous factors, so a visual representation of
CO2 emissions is important in order to reduce the overall CO2
volume. HAZAMA ANDO CORPORATION established a method
to calculate the CFP in the framework and finished version of areinforced concrete structure, achieving a visual representation.
We became the first Japanese construction company to receive
CFP certification for a building (framework and finishedmaterials). The award praised HAZAMA ANDO CORPORATION’s

Groundbreaking Ceremony Held for the Wattay
International Airport Terminal Expansion Project
HAZAMA ANDO CORPORATION recently began work on a
project to expand the terminal at Vientiane (Wattay)
International Airport in Laos, holding the groundbreaking
ceremony on December 28, 2015.
Officials attending the ceremony for Laos included
Minister of Public Works and Transport Mr. Sommad Pholsena,and from Japan, Minister of Land, Infrastructure, Transport andTourism Mr. Keiichi Ishii, Ambassador of Japan in the Lao PDR Mr.
Takeshi Hikihara, and Chief Representative of the Japan
International Cooperation Agency (JICA) Laos Office Mr. Yusuke
Murakami. Representatives from HAZAMA ANDOCORPORATION included Representative Director and Chairman
Toshio Ono, and Executive Officer and International Projects
Department Manager Hideo Matsumoto.
The Wattay International Airport Terminal Expansion
Project is being conducted as a loan assistance project by theJapanese government. In January 2014, JICA and the Laogovernment signed a yen loan agreement with a ¥9,017 billion
limit.
Wattay International Airport is the gateway to Laos,
playing a vital role as a center for tourism and economic activity
in the country. This project includes the expansion of theto accommodate overhanging slabs.
HAZAMA ANDO CORPORATION began using the hybrid
APRSS method in 1997, and has utilized it for 12 construction
projects. Going forward, we will further encourage use of thismethod by proactively proposing hybrid construction forbuildings with large spans, and will continue to refine thetechnology.

carbon reduction efforts.
HAZAMA ANDO CORPORATION is building on thisrecognition to conduct further research and development onenvironmentally friendly materials and construction methods. We
are also pursuing general initiatives encompassing the entire
lifecycle of a building, helping to achieve a low-carbon society.
* CFP: A system to calculate and provide an easy-to-understand representation of
the total volume of the greenhouse gas CO2 emitted throughout the lifecycle of a
product or service, from material procurement to disposal or recycling.

international passenger terminal and construction of a newdomestic passenger terminal, with the aim of enhancing
convenience and efficiency in order to handle future increases in
air transport demand. The airport improvements are expected toincrease connectivity within the ASEAN region, and contribute to
Laos’s economic development.
HAZAMA ANDO CORPORATION began doing business in
Laos in 1968, and has been involved in the construction ofhydroelectric power stations, bridges, roads, and waterworks.
The airport project follows the expansion of Wattay’s
international terminal in 2011-2012 through a grant fund aid
project. HAZAMA ANDO CORPORATION will make a concerted
effort to provide Vientiane with a safe, reliable, high-quality
structure.

5

Review of Operations

Major Orders Received● Tentative name: Nippon Seinenkan Building Construction
Work / Nippon Seinenkan & JAPAN SPORT COUNCIL(Japan) ❶● Vientiane International Airport Terminal Expansion
Project/ Ministry of Public Works and Transport, Lao
P.D.R. (Laos) ❷● Yokohama Ring Expressway North-West Line Shield
Tunnel Construction Work/City of Yokohama, Kanagawa
Prefecture (Japan)● Research Laboratory Building Construction Work/RICOH
Company, Ltd. (Japan)● Yorozu Automotive Alabama New Factory Project/Yorozu
Automotive Alabama, Inc. (America)● The Project for Improvement Water supply system ofCoronel Oviedo City / Ministry of Public Works andCommunications, Republic of Paraguay (Paraguay) ❸

❷

❶

❸

Major Projects in Progress● Tokyo Contour Belt Highway Main Tunnel (North Bound)
Oizumi Minami Construction Work/Central Nippon
Expressway Company Limited (Japan)● Tsugaru Dam Main Construction Work/Tohoku Regional
Bureau, Ministry of Land, Infrastructure, Transport andTourism (Japan)● Sukagawa City Government Office Building Main
Construction Work/City of Sukagawa, Fukushima
Prefecture (Japan)● Apporo Dam Main Construction Work/Hokkaido
Government Iburi General Subprefectural Bureu (Japan)● Nagoya Castle Hommaru Palace Restoration Work/City of
Nagoya, Aichi Prefecture (Japan)

6● The Project for Rehabilitation and Improvement of Buluto
Irrigation Scheme/Ministry of Agriculture and Fisheries,
The Democratic Republic of Timor-Leste (East Timor) ❹❹

Major Projects Completed● XIV TOBA-BETTEI New Construction Work/Resorttrust,
Inc. (Japan) ❺● Kitakami-Canal River disaster restoration work (Phase1)(Phase3)/Miyagi Prefecture (Japan) ❻● Kitakokubun Area Box Culvert Work Phase 2/Kanto
Regional Development Bureau, Ministry of Land,
Infrastructure, Transport and Tourism (Japan)● Topre(Thailand)Co.,LTD. (Asia Industrial Estate
Suvarnabhumi) New Factory project/Topre (Thailand)
Co.,LTD. (Thailand) ❼● HAL ALUMINUM MEXICO No.2 Factory Construction
Project/HAL ALUMINUM MEXICO, S.A.DE C. V. (Mexico)● The Rehabilitation Project of The Outer Bangkok Ring
Road/ Department of Highways Ministry of Transport,
The Kingdom of Thailand (Thailand) ❽

❺

❻

❼

❽

7

Corporate Governance● Basic Policy
HAZAMA ANDO CORPORATION seeks to contribute to the advancement of society and its customers’ business development through businessactivities founded on “Safe, Reliable, High-Quality Manufacturing.” We recognize that maintaining and improving a management system able torespond flexibly to changes in the business environment, along with transparency and fairness in management oversight, are essential to achieve
this goal. Accordingly, we continually pursue measures to enhance corporate governance.
● Matters Regarding Corporate Functions including Business Execution, Auditing/Supervision, Nominating and Determination of Compensation
To strengthen its corporate governance, HAZAMA ANDO CORPORATION maintains a clear distinction between the decision-making andoperational oversight functions of the directors and Board of Directors, and the business execution function of the Management Meeting,executive officers and the Meeting of Executive Officers. The specific functions are as follows.
1. Revisions related to the directors
The term for directors is fixed at one year to further clarify the management responsibility of directors, and to provide an optimal
management structure responsive to changes in the business environment. Further, directors are classified into those with businessexecution responsibility and those without. HAZAMA ANDO CORPORATION does not have the position of “executive director,” and only
makes a distinction between “representative director” and “director.” Non-business execution directors conclude contracts with theCompany that limit liability for damages to an amount prescribed by law.
2. Board of Directors
The Board of Directors had 12 members as of June 30, 2016 (including two external directors, of which one is female), comprising executive
and non-executive directors. External directors, who are non-executive directors, serve in roles based on their experience and insights,
including supervision and providing advice on management. The Board of Directors meets monthly to render decisions on importantmatters regarding management, and to supervise the status of business execution.
3. Management Meeting
The Management Meeting meets monthly to discuss policies for management strategies and other matters, to confirm the progress ofbusiness plans, and to diversify and strengthen policy-proposing capabilities.
4. Executive officer system
The number of executive officers as of June 30, 2016, totaled 33 (including 10 executive officers who concurrently serve as directors).
HAZAMA ANDO CORPORATION has established the six officer categories of “chairman,” “president,” “vice president,” “senior managing
executive officer,” “managing executive officer” and “executive officer.” We have clarified the responsibilities for the operations executive
officers manage, and limited the term to one year to enhance the mobility and flexibility of the executive officer system. In addition, weclarified through a resolution of the Board of Directors the rights and responsibilities regarding operations managed, and implemented acompensation system that reflects the performance of operations managed.
5. Meeting of Executive Officers
The Meeting of Executive Officers meets monthly in accordance with the executive officer system, to enhance the efficiency of consensual
decision-making and strengthen operational execution, as well as to ensure that management information is conveyed promptly andaccurately along the management line, and to provide for the sharing of information among departments.
6. Board of Auditors System
The Board of Auditors comprised 4 members as of June 30, 2016 (including 2 non-regular external directors). Auditors (including external
auditors), in accordance with auditing standards established by the Board of Auditors, and in line with the auditing policies for each fiscal
period, division of duties and other rules, maintains communication with directors, the Internal Auditing Department and other employees.
Auditors attend meetings of the Board of Directors and other important meetings, receive reports and explanations from directors andemployees regarding the status of the execution of their duties, review important documents and other papers, and conduct audits at thehead office and other major business locations. External auditors conclude contracts with the Company that limit liability for damages to an
amount prescribed by law.
7. Various Committees
HAZAMA ANDO CORPORATION has established various committees that contribute to the streamlining of management operations. These
include the Compliance Promotion Committee, which deliberates and provides advice regarding compliance matters, and the Central Safety
and Health Committee, which deliberates and provides advice regarding health and safety matters.
●

Corporate Governance and Internal Control Structure
Shareholders’ Meeting

Management
Appoint /Dismiss
Directors
Board of Directors

Audit

Board of Auditors
Secretariat
Business
Execution

ReportReport/Recommend

Audit

Coordinate

Consult

ReportManagement Meeting

Executive Officer
Meeting of Executive Officers

Compliance Promotion Committee

ReportDirectAudit Department
Audit
Business Divisions

8

Audit

ReportReportDirectCoordinate

Coordinate

ChairmanPresident

ReportAccounting Auditor

Committees
Supervise

DirectAppoint/Dismiss

Appoint/Dismiss
Audit
ReportAuditors
Board of Auditors

DirectSafety and Health Committee

DirectCoordinate
CSR Promotion Department
ReportImplement

ReportAudit

ImplementGroup Companies(Subsidiaries)

Consolidated Financial Review
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2016, 2015, 2014, 2013 and 2012

Summary
Thousands of
U.S. dollars

Millions of yen
2016

2015

2014

2013

2012

2016

$3,202,316

Operating results:
Revenues¥360,869¥355,069¥357,474¥182,740¥169,256

Other activities

18,38914,634

13,74315,15912,794

163,182

Total

379,258

369,703371,217

197,899

182,050

3,365,498

Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating income

334,524

333,691

342,810

182,271

166,630

2,968,533

44,73436,012

28,407

15,62815,420396,965

19,277

17,494

16,32910,015

9,505

171,062

25,457

18,51812,078

5,613

5,915

225,903

Profit14,984

7,240

16,414

2,293

1,767

132,966

Total assets¥300,368¥269,720¥260,646¥141,880¥133,177$2,665,436

Total liabilities

223,390

205,099

206,265

109,036

102,620

1,982,340

Total net assets

76,97864,621

54,381

32,84430,557683,096¥34,722¥15,716¥7,464¥7,934¥(3,158)$308,120(12,016)

(134)

3,593

(723)

562

(106,629)

5,941(7,490)(54)(4,347)(3,076)52,720Construction contracts

Financial position:

Cash flows:
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities

Yen

U.S. dollars

Per share amounts:
ProfitBasic¥81.03¥39.17¥96.47¥20.69¥15.38$0.72

Diluted

80.96

39.12

88.59

14.74

11.51

0.72

Dividends
12.00

8.00

5.00

3.00

1.50

0.11

Class I preferred stock

―

―

―

78.40

78.80

―

Class II preferred stock

―

―

―

88.40

88.80

―

Class III preferred stock

―

―

―

98.40

98.80

―

Class IV preferred stock

―

―

―

―

93.80

―

411.76345.56290.96212.75194.75

3.65

Common stock

Net assets

Note: 1. U.S. dollar amounts in this annual report are translated from yen at the rate of ¥112.69 to US$1.00 for convenience.
2. The dividend per share for 2014 includes a ¥2 commemorative dividend.
3. The main reason for significant changes in the management indicators of 2014 due to the merger with ANDO
Corporation.

9

Financial Review
Revenues
Revenues in fiscal 2016 totaled ¥379,258 million (US$3,365,498 thousand), of which ¥360,869 million (US$3,202,316
thousand) came from construction projects and ¥18,389 million (US$163,182 thousand) from other activities. These two businesssegments accounted for 95.2% and 4.8%, respectively, of total revenues.
Costs and Expenses
Cost of sales amounted to ¥334,524 million (US$2,968,533 thousand), which is equivalent to 88.2% of revenues. Selling, generaland administrative expenses amounted to ¥19,277 million (US$171,062 thousand), which is equivalent to 5.1% of revenues.
Operating income reached ¥25,457 million (US$225,903 thousand), and the operating margin was 6.7%. Profit amounted to¥14,984 million (US$132,966 thousand). Basic profit per share was ¥81.03 (US$0.72). We paid dividend of ¥5 per share for the
fiscal year ended March 31, 2015 on June 29, 2015, and paid interim dividend of ¥5 per share for the fiscal year ended March 31,
2016 on December 2, 2015.
Financial Position and Analysis
Total assets amounted to ¥300,368 million (US$2,665,436 thousand), total liabilities amounted to ¥223,390 million(US$1,982,340 thousand), and total net assets amounted to ¥76,978 million (US$683,096 thousand) at the end of fiscal 2016.
Net worth to total assets ratio was 25.4%. Net assets per share amounted to ¥411.76 (US$3.65).
Cash Flows
Cash and cash equivalents at the end of the year increased by ¥27,378 million (US$242,950 thousand) to ¥106,936 million(US$948,940 thousand).
Net cash provided by operating activities amounted to ¥34,722 million (US$308,120 thousand) mainly as the result of income
before income taxes amounting to ¥22,638 million (US$200,887 thousand), decrease in notes and accounts receivable amounting
to ¥6,335 million (US$56,216 thousand) and income taxes paid amounting to ¥6,091 million (US$54,051 thousand).
Net cash provided by investing activities amounted to ¥(12,016) million (US$(106,629) thousand) mainly as a result of
payments into time deposits amounting to ¥(9,681) million (US$(85,908) thousand).
Net cash used in financing activities amounted to ¥5,941 million (US$52,720 thousand) mainly as a result of proceeds fromissuance of convertible bond-type bonds with subscription rights to shares amounting to ¥10,050 million (US$89,183 thousand).
Construction Business (Non-Consolidated Construction Projects)
As HAZAMA ANDO CORPORATION’s construction business accounts for a large percentage of consolidated group business,
the financial performance of the business is presented below for reference.
Thousands of
U.S. dollars

Millions of yen
Revenues

2016

2015

2014

2013

2012

2016

Government sector¥85,772¥77,095¥80,092¥59,343¥54,942$761,132

Private sector

32,72136,75723,32325,442

19,038290,363

4,002

7,721

6,695

6,275

7,223

35,513

122,495

121,573

110,110

91,06081,203

1,087,008

Civil engineering
Domestic

Overseas
Subtotal
Building construction
Domestic
Government sector

29,40425,713

21,590

3,613

4,487

260,928

Private sector

171,296

169,524

183,281

62,82868,595

1,520,064

32,76230,74631,14921,881

11,688

290,727

Subtotal

233,462

225,983

236,020

88,322

84,7702,071,719

Total construction projects¥355,957¥347,556¥346,130¥179,382¥165,973$3,158,727

Overseas10Revenue from the civil engineering category accounted for ¥122,495 million (US$1,087,008 thousand), or 34.4% of total revenue
from construction projects, with domestic projects contributing ¥118,493 million (US$1,051,495 thousand), or 96.7%.
The government sector contributed ¥85,772 million (US$761,132 thousand), or 72.4%, of total domestic civil engineering
revenue, while private-sector civil engineering revenue amounted to ¥32,721 million (US$290,363 thousand), or 27.6% of total
domestic civil engineering revenue. Overseas civil engineering revenue reached ¥4,002 million (US$35,513 thousand),equivalent to 3.3% of total revenue in the civil engineering category.
Revenue from the building construction category totaled ¥233,462 million (US$2,071,719 thousand), or 65.6% of total
construction revenue. Domestic projects accounted for ¥200,700 million (US$1,780,992 thousand), or 86.0%.
The government sector contributed ¥29,404 million (US$260,928 thousand), or 14.7%, of total domestic building
construction revenue, while private-sector building construction revenue amounted to ¥171,296 million (US$1,520,064 thousand),or 85.3%, of total domestic building construction revenue. Overseas building construction revenue reached ¥32,762 million(US$290,727 thousand), equivalent to 14.0% of total revenue in the building construction category.
Total overseas construction revenue reached ¥36,764 million (US$326,240 thousand) and accounted for 10.3% of total
construction revenue. Civil engineering projects accounted for 10.9% of this total, and building construction for 89.1%.
Thousands of
U.S. dollars

Millions of yen
Orders Received
Civil engineering

2016

2015

2014

2013

2012

¥123,292¥167,060¥107,666¥92,395¥87,2122016$1,094,081

Building construction

238,922232,248

226,094

94,55689,5132,120,170

Total construction projects¥362,214¥399,308¥333,760¥186,951¥176,725$3,214,251

Orders received for construction projects during fiscal 2016 amounted to ¥362,214 million (US$3,214,251 thousand). Overseas
work contributed 10.5% of orders in the construction category. Civil engineering orders amounted to ¥123,292 million(US$1,094,081 thousand), or 34.0% of total construction orders. Building construction orders amounted to ¥238,922 million(US$2,120,170 thousand), which is equivalent to 66.0% of total construction orders.
Thousands of
U.S. dollars

Millions of yen
Year-end Backlog
Civil engineering

2016

2015

2014

2013

2012

2016

¥167,343¥166,623¥121,099¥114,655¥113,278$1,484,985

Building construction

189,780

184,297

177,794

69,65263,454

1,684,089

Total construction projects¥357,123¥350,920¥298,893¥184,307¥176,732$3,169,074

Order backlog for construction projects at the end of fiscal 2016 amounted to ¥357,123 million (US$3,169,074 thousand), withcivil engineering work accounting for ¥167,343 million (US$1,484,985 thousand), or 46.9%, and building construction for¥189,780 million (US$1,684,089 thousand), or 53.1%.

11

Consolidated Balance Sheets
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
March 31, 2016 and 2015

Thousands of
U.S. dollars(Note 1)Millions of yen
2016

2016

2015

AssetsCurrent assets:
Cash and time deposits (Notes 4 and 24)¥100,618¥79,661$892,874

Marketable securities (Notes 7 and 24)

16,0000141,982

Receivables (Note 24):
Notes

10,105

7,920

89,671

Accounts

92,588101,068

821,617

Inventories (Notes 5 and 8)

11,845

10,918105,111

Deferred tax assets (Note 18)

2,105

1,695

18,679Other (Note 7)

12,252

14,613

108,723

(10)

(11)

(89)

245,503

215,864

2,178,568

Land

17,93318,898159,136

Buildings and structures

17,815

17,487

158,089

Machinery and equipment

8,850

8,464

78,534

830

274

7,365

Less allowance for doubtful accounts
Total current assets

Property and equipment (Notes 7, 13 and 14):

Other

45,42845,123403,124

Less accumulated depreciation(18,526)(17,995)(164,398)

Net property and equipment

26,902

27,128

238,726

20,517

20,247

182,066

217

217

1,926

Investments and other assets:
Investment securities (Notes 3, 7 and 24)
Investments in unconsolidated subsidiaries and affiliates
Long-term loans receivable (Note 7)
Deferred tax assets (Note 18)

638

4,952

1,503

18,112Other (Note 7)

6,876

6,134

61,017Less allowance for doubtful accounts(2,246)(2,011)(19,931)

Total investments and other assets
Total assets
See accompanying notes.

12

558
2,041

12

27,963

26,728248,142¥300,368¥269,720$2,665,436

Thousands of
U.S. dollars(Note 1)Millions of yen
2016

2016

2015

Liabilities and Net Assets
Current liabilities:¥11,678¥12,654$103,629

5,645

7,097

50,093

451

351

4,002

Notes

31,14728,162

276,395

Accounts

71,38770,326

633,481

Income taxes payable

5,996

3,856

53,208Advances received (Note 16)

31,49831,426

279,510

Short-term loans payable (Notes 6 and 24)
Current maturities of long-term loans payable (Notes 6 and 24)
Current portion of bonds (Notes 6 and 24)
Payables (Note 24):

Accrued expenses
Provision for losses on construction contracts (Note 8)
Other
Total current liabilities

487

408

4,322

3,622

4,408

32,141

24,992

19,990221,777

186,903178,678

1,658,558

Long-term liabilities:
832

833

7,383

Convertible bond-type bonds with subscription rights to shares

10,050－89,183Long-term loans payable, less current maturities (Notes 6 and 24)

12,72012,753112,876

Net defined benefit liability (Note 17)

12,181

11,950108,093

Provision for environmental spending

156

295

1,384

Deferred tax liabilities (Note 18)

56

72

497

Bonds (Notes 6 and 24)

492

518

4,366

Total long-term liabilities

36,487

26,421

323,782

Total liabilities

223,390

205,099

1,982,340

12,00012,000106,487

Capital surplus

14,99415,001133,055

Retained earnings

46,50133,366412,645

(56)

(68)

(497)

73,43960,299651,690

3,750

4,016

33,277

(18)

(7)

(159)

Other

Net assets (Notes 20 and 21):
Shareholders’ equity:
Capital stock
Common stock

Authorized - 400,000,000 shares
Issued – 185,209,189 shares

Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

170

270

1,509

Accumulated remeasurements of defined benefit plans(1,187)(691)(10,533)

Total accumulated other comprehensive income

2,715

3,588

24,094Foreign currency translation adjustment

Share subscription rights

10

15

89

Non-controlling interests

814

719

7,223

76,97864,621

683,096¥300,368¥269,720$2,665,436

Total net assets
Total liabilities and net assets

13

13

Consolidated Statements of Income
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2016 and 2015

Thousands of
U.S. dollars(Note 1)Millions of yen
2016

2015

2016

¥360,869¥355,069$3,202,316

18,38914,634

163,182379,258

369,7033,365,498

Construction contracts

318,368

321,466

2,825,166

Other activities

16,156

12,225

143,367

334,524

333,691

2,968,533

44,73436,012396,965

19,277

17,494

171,062

25,457

18,518225,903
3,088

Revenues (Notes 10 and 22):
Construction contracts
Other activities
Cost of sales (Notes 11 and 22):

Gross profit
Selling, general and administrative expenses (Notes 12 and 22):
Operating income
Other income (expenses):
Interest and dividends income

348

286

Foreign exchange gain

－

658

－

(755)

(884)

(6,700)Interest expense

(279)

－

(2,476)(1,241)－(11,013)Gain on sales of noncurrent assets (Note 14)

287

18

2,547

Gain on sales of investment securities

117

1

1,038

Loss on valuation of investment securities

(335)

－

(2,973)

Provision of allowance for doubtful accounts
Foreign exchange loss

Impairment loss (Note 13)

(431)

－

(3,825)

Loss on liquidation of overseas subsidiaries (Note 15)

(226)

－

(2,005)

Provision for allowance for doubtful accounts
Other, net－(1,750)－(304)(1,328)(2,697)(2,819)(2,999)(25,016)

22,63815,519200,887

Current

8,214

5,472

72,890

Deferred

(569)

2,784

(5,049)

7,645

8,256

67,841

14,993

7,263

133,046

Income before income taxes
Income taxes (Note 18):

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

23

80

¥14,984¥7,240$132,966
U.S. dollars

Yen
2016

(Note 1)
2016

2015

Per share amounts (Note 23):
ProfitBasic¥81.03¥39.17$0.72

Diluted

80.96

39.12

0.72

12.00

8.00

0.11

Cash dividends applicable to the year
Common stock
See accompanying notes.

1414

Consolidated Statements of Comprehensive Income
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2016 and 2015

Thousands of
U.S. dollars(Note 1)Millions of yen
2016
Profit2016

2015¥14,993¥7,263$133,046(2,360)

Other comprehensive income
Valuation difference on available-for-sale securities

(266)

3,062

Deferred gains or losses on hedges

(11)

(8)

(98)

Foreign currency translation adjustment

(161)

227

(1,429)Remeasurements of defined benefit plans

(496)

1,164

(4,401)

Total other comprehensive income (Note 19)
Comprehensive income

(934)

4,445

(8,288)14,05911,708

124,758

14,11011,598125,211

(51)

110

(453)

Comprehensive income attribute to:Comprehensive income attribute to owners of the parent
Comprehensive income attribute to non-controlling interests
See accompanying notes.

15

15

Consolidated Statements of Changes in Net Assets
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2016 and 2015

Millions of yen
Shareholders’ equity

Balance at April 1, 2014

Capital stock

CapitalsurplusRetainedearnings¥12,000¥15,010¥27,604

Treasury
Stock
¥(95)

(1,478)Cash dividends paid

7,240

Profit(9)

Disposal of treasury stock

31(4)

Acquisition of treasury stock
Net changes in items otherthan shareholders’ equity
Balance at April 1, 2015

¥12,000¥15,001¥33,366

Cash dividends paid

(1,849)Profit14,984(7)

Disposal of treasury stock

¥(68)

15
(3)

Acquisition of treasury stock
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2016

¥12,000¥14,994¥46,501¥(56)

Millions of yen
Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
remeasurements ofdifference on
currencyorlossesonavailable-for-saledefined benefit
translation
hedgesplans
securities
adjustment
Balance at April 1, 2014

¥2

¥130

¥(1,855)

Noncontrollinginterests

¥22

¥609

Total

¥54,381

Cash dividends paid

(1,478)

Profit7,240

Disposal of treasury stock

22

Acquisition of treasury stock(4)

Net changes in items otherthan shareholders’ equity
Balance at April 1, 2015

3,062

(9)

140

1,164

(7)

110

4,460

¥4,016¥(7)¥270¥(691)¥15¥719¥64,621

Cash dividends paid

(1,849)Profit14,984

Disposal of treasury stock8

Acquisition of treasury stock(3)

Net changes in items otherthan shareholders’ equity
Balance at March 31, 2016

16

¥954

Share
subscription
rights

(266)

(11)

(100)

(496)

(5)

95

(783)

¥3,750

¥(18)

¥170

¥(1,187)

¥10

¥814

¥76,97816

Thousands of U.S. dollars (Note 1)
Shareholders’ equity

Balance at April 1, 2015

Capital stock

CapitalsurplusRetainedearnings$106,487$133,117$296,087

Cash dividends paid

(16,408)

Profit132,966(62)

Disposal of treasury stock

Treasurystock$(603)

133(27)

Acquisition of treasury stock
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2016

$106,487$133,055$412,645$(497)

Thousands of U.S. dollars (Note 1)
Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
remeasurements
difference on
currencyorlossesonof defined
available-for-saletranslation
hedgesbenefit planssecurities
adjustment
Balance at April 1, 2015

$35,638$(62)$2,396$(6,132)

Share
subscription
rights

Noncontrollinginterests$133$6,380

Total$573,441

Cash dividends paid

(16,408)

Profit132,966

Disposal of treasury stock71

Acquisition of treasury stock(27)

Net changes in items otherthan shareholders’ equity
Balance at March 31, 2016

(2,361)

(97)

(887)

(4,401)(44)843(6,947)$33,277$(159)$1,509$(10,533)$89$7,223$683,096

See accompanying notes.

17

17

Consolidated Statements of Cash Flows
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2016 and 2015

Thousands of
U.S. dollars(Note 1)
2016

Millions of yen
2016

2015

Cash flows from operating activities:
Income before income taxes
Adjustment to reconcile income before income taxes to net
cash provided by operating activities:
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net benefit defined liability
Interest and dividends income
Interest expense
Foreign exchange loss (gain)
Loss (gain) on valuation of investment securities
Loss (gain) on sale of property, plant and equipment
Changes in assets and liabilities:
Decrease (increase) in notes and accounts receivable
Decrease (increase) in costs on uncompleted construction contracts
Decrease (increase) in other inventories
Decrease (increase) in advances paid
Increase (decrease) in notes and accounts payable
Increase (decrease) in advances received
Increase (decrease) in deposit received
Increase (decrease) in consumption tax payable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
Purchase of marketable securities and investment securities
Proceeds from sales of marketable securities and investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments of loans receivableCollection of loans receivable
Proceeds from withdrawal of investments in silent partnership
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of convertible bonds
Proceeds from issuance of convertible bond-type bonds with subscription
rights to shares
Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 4)
See accompanying notes.

18

18¥22,638¥15,519$200,887

1,073
431
235
236
(348)
755
1,149
335
(268)

1,081
－
1,711
(2,000)(286)
883(1,254)
1
471

9,522
3,825
2,085
2,094
(3,088)6,700
10,196
2,973(2,378)6,335
248(1,175)(2,216)
4,076
(313)
1,249
1,234
5,481
41,155329(671)(6,091)
34,722

2,386(1,337)338(161)(3,575)
4,907
2,245(2,845)
2,690
20,774271(797)(4,532)
15,71656,2162,201(10,427)(19,665)
36,170(2,778)11,084
10,95048,638365,205
2,920(5,954)(54,051)
308,120(9,681)(1,296)
195(1,965)
1,139
(7)
87
125
(613)
(12,016)－(1,034)
22
(514)
335
(6)
112
401
550
(134)

(85,908)(11,501)
1,730(17,437)
10,107
(62)
772
1,109
(5,439)(106,629)

(976)
6,191
(7,676)500(401)(4,826)
8,831(9,749)375(364)(8,661)54,938(68,116)
4,437(3,558)10,050－89,183(1,849)102
5,941(1,269)27,37879,558¥106,936(1,478)(279)(7,490)1,441
9,533
70,025¥79,558(16,408)905
52,720(11,261)
242,950
705,990$948,940

Notes to Consolidated Financial Statements
HAZAMA ANDO CORPORATION- and Consolidated Subsidiaries
For the years ended March 31, 2016 and 2015

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of HAZAMA ANDO CORPORATION (“the Company”) and its
consolidated subsidiaries have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments
and Exchange Law and its related accounting regulations, and in conformity with accounting principles generally accepted inJapan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements of International
Financial Reporting Standards.
The accompanying consolidated financial statements have been restructured and translated into English with some expanded
descriptions from the consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filedwith the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange
Law. Some supplementary information included in the statutory Japanese language consolidated financial statements, but notrequired for fair presentation, is not presented in the accompanying consolidated financial statements.
The translations of the Japanese yen amounts into U.S. dollars are included solely for the convenience of readers outside
Japan, using the prevailing exchange rate at March 31, 2016, which was ¥112.69 to U.S. $1.00. The convenience translations
should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be,converted into U.S. dollars at this or any other rate of exchange.
2. Summary of Significant Accounting Policies(1) Consolidation
The consolidated financial statements include the accounts of the Company and its significant subsidiaries (“the Companies”).
All significant intercompany transactions and unrealized profits and losses among the Companies have been eliminated inconsolidation.
All companies are required to consolidate all significant investees, which are controlled through substantial ownership ofmajority voting rights or existence of certain conditions. Investments in affiliates over which the Company has the ability to
exercise significant influence over operating and financial policies of the investees, are accounted for by the equity method.
Investments in remaining unconsolidated subsidiaries and affiliates, which have immaterial effect on the consolidated
financial statements, are accounted for at cost. Such investments are adjusted for any non-recoverable diminution in value, andincome from these unconsolidated subsidiaries and affiliates is recognized only when the Companies receive dividends
therefrom.
(2) Revenue and cost recognition
When the outcome of construction contracts can be estimated reliably, the percentage-of-completion method (cost-to-cost method
for the estimated progress) is mainly applied. Otherwise the completed-contract method is applied.
(3) Foreign currency translation
Revenues and expenses are translated at the rates of exchange prevailing when transactions are made. Assets and liabilities
denominated in foreign currencies are generally translated at the rates of foreign exchange prevailing at the balance sheet date
and the resulting translation gains or losses are included in earnings.
(4) Cash and cash equivalents
Cash and cash equivalents include cash on hand, highly liquid investments with maturity of three month or less from the purchasedate. See Note 4 as to a reconciliation of cash and cash equivalents reported in the consolidated statements of cash flows withcash and time deposits reported in the consolidated balance sheets.
(5) Allowance for doubtful accounts
To prepare for credit loss on receivables, collectability of normal receivables is estimated by applying the historical overall credit
loss rates, and collectability of doubtful receivables is analyzed individually and the estimated uncollectible amount is recorded.
(6) Inventories
Inventories are stated at cost as determined on a specific project basis.

19

(7) Securities
Securities of the Companies are classified into one of the following categories based on the intent of holding, and are accounted
for as follows:(a) Debt securities that are intended to be held to maturity (“held-to-maturity debt securities”) are stated at amortized cost.
(b) Securities other than trading securities, held-to-maturity debt securities and shares issued by unconsolidated subsidiaries andaffiliated companies not on the equity method (“available-for-sale securities”) are stated at fair market values, if their fair market
values are readily available. Unrealized gains and losses on these securities are reported, net of applicable income taxes, as aseparate component of net assets. Realized gains and losses on sale of these securities are computed using moving-average cost.
Available-for-sale securities with no available fair market values are stated at moving-average cost.
(8) Derivatives and hedging transactions
Derivative financial instruments are stated at fair value and changes in the fair value are recognized as gains or losses unlessderivative financial instruments are used for hedging purposes.
If derivative financial instruments are used as hedges and meet certain hedging criteria, the Companies defer recognition ofgains or losses resulting from changes in fair value of derivative financial instruments until the related losses or gains on thehedged items are recognized.
If a forward foreign exchange contract is executed to hedge an existing foreign currency receivable or payable,(a) the difference, if any, between the Japanese yen amount of the hedged foreign currency receivable or payable translated using
the spot rate at the inception date of the contract and the book value of the receivable or payables is recognized in the
consolidated statements of operations in the period which includes the inception date, and(b) the discount or premium on the contract (that is the difference between the Japanese yen amount of the contract translatedusing the contracted forward rate and that translated using the spot rate at the inception date of the contract) is recognized over
the term of the contract.
Also, if interest rate swap contracts are used as hedge and meet certain hedging criteria, the net amount to be paid or received
under the interest rate swap contract is added to or deducted from the interest on the assets or liabilities for which the swap
contract was executed.
The Companies use forward foreign currency contracts and interest rate swap contracts as derivative financial instruments
only for the purpose of mitigating future risks of fluctuation of foreign currency exchange rates and interest rate increases.
The Companies evaluate hedge effectiveness by comparing the cumulative changes in cash flows from or the changes in fairvalue of hedged items and the corresponding changes in the hedging derivative instruments.
(9) Property and equipment, depreciation
Property and equipment are carried at cost. Depreciation of building is mainly provided on the straight-line method, anddepreciation of other property and equipment is provided on the declining-balance method over estimated useful lives, exceptthat the declining-balance method is applied to buildings of one consolidated subsidiary.
Expenditures for significant renewals and betterments are capitalized, while expenditures for normal repairs and maintenanceare charged to expense when incurred.
(10) Provision for losses on construction contracts
To prepare for future losses related to construction contracts, the amount of estimated losses is recorded for the construction
contracts when losses are probable to occur and such losses can be reasonably estimated.
(11) Provision for environmental spending
To prepare for the treatment of Polychlorinated Biphenyl waste, which is obligated by the “Act on Special Measures Concerning
Promotion of Proper Treatment of PCB Waste,” the estimated cost for treatment is recorded.

20

(12) Retirement and severance benefits
The retirement benefit obligation is calculated by allocating the estimated retirement benefit amount to periods until the end of
the current fiscal year on a benefit formula basis. Actuarial differences are recognized in expenses using the straight-line method
over period less than the average of the estimated remaining service lives (9 years) commencing with the succeeding period.
Prior service costs are recognized in expenses using the straight-line method over period less than the average of the estimatedremaining service lives (3 years) commencing with present period.
The Company has calculated retirement and severance benefits and retirement benefit costs under certain lump-sum payment
plans using simplified method.
(13) Lease transactions(a) Finance leases which transfer ownership of leased assets
Leased assets arising from finance lease transactions which transfer ownership to the lessee are depreciated by the same method
as the depreciation of fixed assets.
(b) Finance leases which do not transfer ownership of leased assets
Leased assets arising from finance lease transactions which do not transfer ownership to the lessee are depreciated to a residual
value of zero by the straight-line method using the contract term as useful life.
(14) Income taxes
The Companies recognize tax effects of temporary differences between the carrying amounts of assets and liabilities for tax andfinancial reporting purposes. The provision for income taxes is computed based on the pretax income included in the
consolidated statements of operations. The asset and liability approach is used to recognize deferred tax assets and liabilities forthe expected future tax consequences of temporary differences.
(15) Appropriations of retained earnings
Appropriations of retained earnings are reflected in the accompanying consolidated financial statements for the following year
upon the shareholders’ meeting approval.
(16) Amounts per share
Basic profit per share is based on the weighted average number of common stock outstanding during the period, and diluted
profit per share reflects the potential dilution that could occur if preferred stock were converted into common stock or sharesubscription rights were exercised.
Cash dividends per share represent amounts applicable for the respective years on accrual basis.
A net asset per share is reported at the amounts of ¥411.76 (US$3.65) and ¥345.56 at March 31, 2016 and 2015, respectively.
(17) Change in accounting policies with amendment of respective law or regulation that are not distinguishable from change inaccounting estimates
The Company and its domestic subsidiaries adopted “Revised Accounting Standard for Business Combinations” (ASBJ
Statement No.21, September 13, 2013 (hereinafter, “Statement No.21”)), “Revised Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No.22, September 13, 2013 (hereinafter, “Statement No.22”)) and “Revised AccountingStandard for Business Divestitures” (ASBJ Statement No.7, September 13, 2013 (hereinafter, “Statement No.7”)) (together, the“Business Combination Accounting Standards”), from the current fiscal year. As a result, the Company changed its accounting
policies to recognize in capital surplus the differences arising from the changes in the Company’s ownership interest of
subsidiaries over which the Company continues to maintain control and to record acquisition related costs as expenses in thefiscal year in which the costs are incurred. In addition, the Company changed its accounting policy for the reallocation of
acquisition costs due to the completion following provisional accounting to reflect such reallocation in the consolidated financial
statements for the fiscal year in which the business combination took place. The Company also changed the presentation of profit
and the term “non-controlling interests” is used instead of “minority interests”. Certain amounts in the prior year comparative
information were reclassified to conform to such changes in the current year presentation.
With regard to the application of the Business Combination Accounting Standards, the Company followed the provisional
treatments in article 58-2 (4) of Statement No.21, article 44-5 (4) of Statement No.22 and article 57-4 (4) of Statement No.7 withapplication from the beginning of the current fiscal year prospectively.
In the consolidated statement of cash flows, cash flows from acquisition or disposal of shares of subsidiaries with no changes
in the scope of consolidation are included in “Cash flows from financing activities” and cash flows from acquisition related costs
for shares of subsidiaries with changes in the scope of consolidation or costs related to acquisition or disposal of shares ofsubsidiaries with no changes in the scope of consolidation are included in “Cash flows from operating activities”.
There is no effect on the consolidated financial statements of the current fiscal year.
21

3. Securities(1) The following tables summarize book values and fair values of held-to-maturity debt securities at March 31, 2016 and 2015.
Millions of yen
Book values
Type
Securities with fair values exceeding book values

2016
Fair values

DifferenceBook values

2015
Fair values

Difference

Government bonds

¥385

¥454

¥69

¥389

¥437

¥48

Sub total

385

454

69

389

437

48
¥ －

Securities with fair values not exceeding book values
Corporate bonds¥1,000¥1,000

¥ －

¥ －

¥ －

Sub total

1,000

1,000

－

－

－

－

Total

¥1,385¥1,454

¥69

¥389

¥437

¥48

Thousands of U.S. dollars
Book values
Type
Securities with fair values exceeding book values

2016
Fair values

Difference

Government bonds$3,416$4,028$612

Sub total

3,416

4,028

612
$ －

Securities with fair values not exceeding book values
Corporate bonds$8,874$8,874

Sub total

8,874

8,874

－

$12,290$12,902

$612

Total

22

(2) The following tables summarize book values and acquisition costs of available-for-sale securities at March 31, 2016 and2015:
Millions of yen
Book values
Type
Securities with book values exceeding acquisition costs

2016
Acquisition
costs

DifferenceBook values

2015
Acquisition
costs

Difference

Equity securities¥12,816¥7,184¥5,632¥15,502¥9,388¥6,114

Sub total

12,816

7,184

5,632

15,502

9,388

6,114

¥4,108¥4,458¥(350)¥955¥1,301¥(345)

6

15

(9)

8

14

(7)

15,00015,000－－－－Sub total

19,114

19,473

(359)

963

1,315

(352)

Total

¥31,930¥26,657¥5,273¥16,465¥10,703¥5,762

Securities with book values not exceeding acquisition costs
Equity securities
Bonds
Negotiable certificatesof deposit

Thousands of U.S. dollars
Book values

Type
Securities with book values exceeding acquisition costs

2016
Acquisition
costs

Difference

Equity securities$113,728$63,750$49,978

Sub total

113,728

63,75049,978$36,454$39,560$(3,106)

53

133

(80)

133,109

133,109－

Sub total

169,616

172,802(3,186)

Total$283,344$236,552$46,792

Securities with book values not exceeding acquisition costs
Equity securities
Bonds
Negotiable certificatesof deposit23

(3) Total sales, related gains and losses of available-for-sale securities are as follows:
Thousands of
U.S. dollars
2016

Millions of yen
Type

2016

2015

Equity securities
Sales

¥195

¥22

$1,730Related gains

117

1

1,038

Related losses

0

0

0

(4) Impairment losses on securities recognized for the years ended March 31, 2016 and 2015 are as follows:
Thousands of
U.S. dollars
2016

Millions of yen
Type

2016

2015

Available-for-sale securities

¥335

¥1

$2,973

Total

¥335

¥1

$2,973

4. Cash and Cash Equivalents(1) Cash and cash equivalents reported in the consolidated statements of cash flows at March 31, 2016 and 2015 were reconciledwith cash and time deposits reported in the consolidated balance sheets as follows:
Thousands of
U.S. dollars
2016

Millions of yen
2016
Cash and time deposits
Time deposits with maturities of exceeding
3-month from the date of acquisition
Securities with remaining maturities of 3-month or lessTotal: Cash and cash equivalents

2015¥100,618¥79,661$892,874(9,682)(103)(85,917)

16,000－141,983¥106,936¥79,558$948,940

5. Inventories
Inventories at March 31, 2016 and 2015 consisted of the following:
Millions of yen
2016

24

2015

Thousands of
U.S. dollars
2016

Accumulated Costs on uncompleted construction contracts¥6,280¥6,528Others

5,565

4,390

$55,728
49,383

Total¥11,845¥10,918$105,111

6. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans are represented mainly by loan on deed. The average interest rates of short-term loans were 1.5% and1.8% at March 31, 2016 and 2015.
Bonds at March 31, 2016 and 2015 are summarized below:
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Long-term debt from bonds, insurance companies and others due serially through 2021:¥1,283¥1,184$11,385

Less current maturities

(451)

(351)

(4,002)Sub total

832

833

7,383

Unsecured 0.4%

Convertible bond-type bonds with subscription rights to shares¥10,050－$89,183

Total¥10,882¥ 833$96,566

Long-term loans payable at March 31, 2016 and 2015 are summarized below:
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Long-term debt from banks, insurance companies and others due serially through 2022:
Secured 0.9% to 1.6%

¥985

¥15,810$8,741

Unsecured 1.0% to 2.8%

17,3804,040

154,228

Less current maturities(5,645)(7,097)(50,093)

Total¥12,720¥12,753$112,876

Repayment schedules for bonds are summarized below:
Years ending March 31,
2017Millions of yen¥451

Thousands of
U.S. dollars$4,002

2018

391

3,470

2019

10,30391,428

2020

138

1,224

2021

50

444

2022~

－

－

Total

¥11,333$100,568

Repayment schedules for the long-term loans payable are summarized below:

2017¥5,645

Thousands of
U.S. dollars$50,093

2018

4,337

38,486

2019

3,503

31,085

2020

3,473

30,819

2021

760

6,744

2022~

647

5,742

Total

¥18,365$162,969

Years ending March 31,

Millions of yen

As is customary in Japan, long-term and short-term bank loans are made under general agreements which provide that additional
security and guarantees for present and future indebtedness will be given under certain circumstances at the request of the banks,
and that any collateral furnished will be applicable to all indebtedness due to that bank.
In addition, the agreements provide that the bank has the right to offset cash deposited against any long-term and short-term
debt that become due and in case of default and certain other specified events, against all other debts payable to the bank. Suchrights have never been exercised by the bank.
25

7. Pledged Assets
The following assets were pledged to secure short-term bank loans, long-term debt and certain other obligation at March 31, 2016
and 2015:
Thousands of
U.S. dollars

Millions of yen
2016

2016

2015

Marketable securities

¥ －

¥0

$ －

Property and equipment

1,765

15,993

15,662

Investment securities

4,719

750

41,876

144

151

1,278

¥6,628¥16,894$58,816

Other assets
Total

8. Estimated loss on uncompleted construction contracts
Amount of costs on uncompleted construction contracts for which a construction loss is anticipated and reserve for expected
losses on construction contracts in process are presented without being offset.
Thousands of
U.S. dollars

Millions of yen
2016

Amount of costs on uncompleted construction contracts for which aconstruction loss is anticipated, matching with reserve for expected
losses on construction contracts in process

2016

2015

¥1,239¥887$10,995

9. Contingent Liabilities
At March 31, 2016 and 2015, the Companies had the following contingent liabilities for loan guaranteed:
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Guarantees for loan
Loans of employees

¥2

¥3

$18

Total

¥2

¥3

$18

10. Revenues from construction contracts recognized by the percentage-of-completion method
Revenues from construction contracts recognized by the percentage-of-completion method for the fiscal year ended March 31,
2016 and 2015 were ¥342,624 million (US$3,040,412 thousand) and ¥327,354 million, respectively.
11. Provision for losses on construction contracts included in cost of sales of construction contracts
Provision for losses on construction contracts included in cost of sales of construction contracts for the fiscal year ended March
31, 2016 and 2015 were ¥115 million (US$1,021 thousand) and ¥2,543 million, respectively.
12. Research and Development Expenses
Research and development expenses included in manufacturing costs, and selling, general and administrative expenses amounted
to ¥2,178 million (US$19,327 thousand) and ¥1,829 million for the years ended March 31, 2016 and 2015, respectively.

26

13. Impairment Loss
No impairment loss is recognized for the year ended March 31, 2015.
Impairment loss for the year ended March, 31, 2016 is as follows:
Location

Use

Type of assets

Saitama prefecture

Idle asset

Land

¥431

Thousands of
U.S. dollars$3,825¥431$3,825

Millions of yen

Total

The Companies generally conduct grouping of its business assets by location and idle assets by each property unit to measure
impairment loss. As the above assets become idle assets in the current fiscal year, the book value was reduced to recoverable
amount, and such reduction was recorded as an impairment loss. The recoverable amounts of these assets were measured basedon net selling price, and were evaluated based on appraisal for assets of significant book value, and based on market standard forother assets.
14. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets for the year ended March 31, 2016 and 2015 is as follows:
Thousands of
U.S. dollars

Millions of yen
Type of assets

2016

2016

2015
¥259

¥9

Other

28

9

249

Total

¥287

¥18

$2,547

Land and Buildings$2,298

15. Loss on Liquidation of Overseas Subsidiaries
No loss on liquidation of overseas subsidiaries is recognized for the year ended March 31, 2015.
Loss on liquidation of overseas subsidiaries is recorded for the amount of estimated losses related to HAZAMA ANDOSINGAPORE PTE. LTD., HAZAMA ANDO MALAYSIA SDN. BHD. and ANDO (MALAYSIA) SDN. HD. of liquidation, theconsolidated subsidiaries for the year ended March 31, 2016.
16. Advances Received
As is customary in Japan, the Companies normally receive payments from customers on a progress basis in accordance with theterms of the respective construction contracts.

2717. Net Defined Benefit Liability
The Company and its consolidated subsidiaries have adopted the lump-sum payment plan and the retirement benefit pension planas their defined benefit plan.
The Company and its consolidated subsidiaries have calculated net defined benefit liability and retirement benefit costs undercertain lump-sum payment plans using simplified method.
Although the Company had adopted a multiple of retirement benefit plans due to its merger with ANDO Corporation as at
April 1, 2013, the Company integrated these retirement benefit plans and migrated into defined benefit plans as at April 1, 2014.
(a)Defined benefit plans

Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

(1) Movement in retirement benefit obligations¥30,312¥30,596$268,986

Service cost

1,335

1,362

11,846

Interest cost

303

306

2,689

Actuarial loss (gain)

176

49

1,562

Balance at April 1, 2015 and 2014

Benefits paid

(2,275)(2,001)(20,188)

Balance at March 31, 2016 and 2015

¥29,851¥30,312$264,895$175,552(2) Movement in plan assets¥19,783¥17,992

Expected return on plan assets

220

205

1,952

Actuarial loss (gain)

(680)

1,532

(6,034)

Balance at April 1, 2015 and 2014

Contributions paid by the employer

1,244

1,256

11,039Benefits paid

(1,471)(1,202)(13,053)

Balance at March 31, 2016 and 2015

¥19,096¥19,783$169,456$12,610(3) Movement in simplified method¥1,421¥1,339Retirement benefit costs

294

267

2,609

Benefits paid

(272)

(196)

(2,414)

Balance at April 1, 2015 and 2014

Other
Balance at March 31, 2016 and 2015

(17)

11

(151)

¥1,426¥1,421$12,654(4) Reconciliation from retirement benefit obligations and plan assets to liability (asset) for retirement benefits
Funded retirement benefit obligation¥29,851¥30,312$264,895

Plan assets(19,096)(19,783)(169,456)

10,755

10,52995,439Unfunded retirement benefit obligation

1,426

1,421

12,654

Total net liability (asset) for retirement benefits at March 31, 2016 and 2015

12,181

11,950108,093

Net defined benefit liability

12,181

11,950108,093

Total net liability (asset) for retirement benefits at March 31, 2016 and 2015

¥12,181¥11,950$108,093(Note) Retirement benefit obligation under the lump-sum payment plan is included in funded retirement benefit obligation because a retirement
benefit trust has been established for lump-sum payment plans. In addition, the retirement benefit trust that has been established for the lump-sum
payment plan is included in plan assets.

28

Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

(5) Retirement benefit costs
Service cost

¥1,335¥1,362

Interest cost

303

306

$11,846
2,689

Expected return on plan assets

(220)

(205)

(1,952)

Transition obligations amortization

－

335

－

Net actuarial loss amortization

568

468

5,040

Past service costs amortization

(402)

(426)

(3,567)Retirement benefit expenses by simplified method

294

267

2,609

¥1,878¥2,107$16,665

Transition obligations

¥ －

¥336

$ －

Past service costs

(402)

(426)

(3,567)

Total retirement benefit costs for the fiscal year ended March 31, 2016 and 2015
(6) Remeasurements of defined benefit plans

Net actuarial loss

(288)

1,951

(2,556)

Total adjustments for retirement benefit¥(690)¥1,861$(6,123)(7) Accumulated remeasurements of defined benefit plans
Past service costs that are yet to be recognized¥78¥(323)$692

Actuarial gains and losses that are yet to be recognized

1,634

1,345

14,500Total accumulated adjustments for retirement benefit¥1,712¥1,022$15,192(8) Plan assets
1. Plan assets comprise:
Bonds

41%

Equity securities

22

General account assets

16

Cash and deposits

2

Other

19

Total

100%

(Note) The retirement benefit trust that has been established for the corporate pension plan accounts for 13% and 13% of the total plan assets forthe year ended March 31, 2016 and 2015.
2. Long-term expected rate of return:Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in determining
the long-term expected rate of return.
(9) Actuarial assumptions
The principal actuarial assumptions at March 31, 2016 (expressed as weighted averages) follow:
Discount rate

1.0%

Long-term expected rate of return

1.1%

29

29

18. Income Taxes
The Companies were subject to a number of taxes based on income, which, in the aggregate, indicate statutory rate in Japan ofapproximately 33.1% and 35.6% for the years ended March 31, 2016 and 2015.
The following table summarizes the significant differences between the statutory tax rate and the effective tax rate forfinancial statement purposes for the year ended March 31, 2016 and 2015.

Statutory tax rate

2016

2015

33.1%

35.6%

Permanent non-deductible expenses

0.7

0.8

Permanent non-taxable income

(0.6)

(0.7)

Per capita inhabitant taxes

0.7

1.1

Change in valuation allowance

0.8

12.9

Decrease in deferred income tax assets due to tax rate changes

1.6

2.5

Others(2.5)

1.0

Effective tax rate

33.8%

53.2%

Significant components of the Companies’ deferred income taxes at March 31, 2016 and 2015 are as follows:
Millions of yen
2016

2015

Thousands of
U.S. dollars
2016

Deferred tax assets:
Net defined benefit liability¥4,853¥5,023

Others

7,344

6,875

$43,065
65,170Gross deferred tax assets

12,197

11,898108,235

Less: Valuation allowance(4,469)(4,461)(39,657)

Total deferred tax assets

7,728

7,437

68,578Valuation difference on available-for-sale securities

1,527

1,743

13,551Others

2,111

2,568

18,733

Total deferred tax liabilities

3,638

4,311

32,284

Net deferred taxes¥4,090¥3,126$36,294

Deferred tax liabilities:

On March 31, 2016, amendments to the Japanese tax regulations were enacted into law. Based on the amendments, the statutory
income tax rates utilized for the measurement of deferred tax assets and liabilities expected to be settled or realized from April 1,2017 to March 31, 2019 and on or after April 1, 2019 were changed from 32.3% to 30.9% and 30.6%, respectively, as of March
31, 2016.
Due to these changes in statutory income tax rates, net deferred tax assets (after deducting the deferred tax liabilities)
decreased by ¥ 274 million (US$2,431 thousand) as of March 31, 2016, deferred gains or losses on hedges decreased by ¥0
million (US$1 thousand), accumulated remeasurements of defined benefit plans decreased by ¥42 million (US$373 thousand),deferred income tax expense recognized increased by ¥355 million (US$3,150 thousand), valuation difference on
available-for-sale securities increased by ¥122 million (US$1,083 thousand) and foreign currency translation adjustment
increased by ¥2 million (US$18 thousand).

30

19. Comprehensive Income
Amounts reclassified to profit for the fiscal year ended March 31, 2016 and 2015 that were recognized in other comprehensive
income in the current or previous periods and tax effects for each component of other comprehensive income are as follows:
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Valuation difference on available-for-sale securities:¥(817)¥4,321

Reclassification adjustment

329

(1)

2,920

Sub-total, before tax

(488)

4,320

(4,330)Tax (expense) or benefit

222(1,258)

1,970

Sub-total, net of tax

(266)

3,062

(2,360)

¥(21)

¥(16)

$(186)

7

3

62

(14)

(13)

(124)

Increase (decrease) during the year$(7,250)

Deferred gains or losses on hedges:
Increase (decrease) during the year
Reclassification adjustment
Sub-total, before tax
Tax (expense) or benefit
Sub-total, net of tax

3

5

27

(11)

(8)

(98)
$(1,234)

Foreign currency translation adjustment:¥(139)¥227

Reclassification adjustment

－

－

－

Sub-total, before tax

(139)

227

(1,234)

Increase (decrease) during the year

Tax (expense) or benefit

(22)

－

(195)

Sub-total, net of tax

(161)

227

$(1,429)$(7,596)

Remeasurements of defined benefit plans¥(856)¥1,483

Reclassification adjustment

166

378

1,473

Sub-total, before tax

(690)

1,861

(6,123)

Increase (decrease) during the year

Tax (expense) or benefit

194

(697)

1,722

Sub-total, net of tax

(496)

1,164

(4,401)

Total other comprehensive income¥(934)¥4,445$(8,288)

20. Net Assets
Under the Japanese Corporate Law (“the Law”), the entire amount paid for new shares is required to be designated as common
stock (or preferred stock). However, a company may, by a resolution of the Board of Directors, designate an amount notexceeding one-half of the price of the new shares as additional paid-in capital, which is included in capital surplus in theaccompanying consolidated balance sheets.
Under the Law, in cases where dividend distribution of surplus is made, the smaller of an amount equal to 10% of thedividend or the excess, if any, of 25% of common stock and preferred stock over the total of additional paid-in capital and legal
earnings reserve must be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included inretained earnings in the accompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit or could becapitalized generally by a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all additional
paid-in capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which
are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial
statements of the Company in accordance with the Law.

31

31

21. Consolidated Statements of Changes in Net Assets(1) Common stock and preferred stock issued

Balance at April 1, 2014

Number ofsharesCommonstock
185,209,189

Increase during the year

0

Decrease during the year

0

Balance at April 1, 2015

185,209,189

Increase during the year

0

Decrease during the year
Balance at March 31, 2016

(2) Treasury stock outstanding(Common stock)

Balance at April 1, 2014

0
185,209,189

Number ofsharesCommonstock
469,881

Increase during the year

5,631

Decrease during the year

149,836

Balance at April 1, 2015

325,676

Increase during the year

4,363

Decrease during the year

69,239Balance at March 31, 2016

260,800

22. Segment Information(1) General information about reportable segments
Each reportable segment of the Companies is the business unit of the Companies, which discrete financial information is able toobtain. Reportable segments are reviewed periodically at the Board of Directors meeting in order to determine distribution ofmanagement resources and evaluate business results by each reportable segment.
The Companies mainly operate the construction and construction-related business. Among them the Company, the general
constructor, operates their businesses that is composed of the civil engineering and building construction, and each headquarter
plans and executes on their business strategy of production systems and sales process in Japan and overseas.
Furthermore, consolidated subsidiaries respectively develop their business by cooperating with the Company.
Accordingly, the Companies classify their business operating segments, identified by product and services, into threereportable segments as “Civil engineering segment”, “Building construction segment” and “Consolidated subsidiaries segment”.
The major products and services of each segment are as follows:
Reportable segments

Major products and services

Civil engineering
Building construction
Consolidated subsidiaries

Civil engineering of the Company in Japan and overseas
Building construction of the Company in Japan and overseas
Constructions and sales of construction materials of consolidated subsidiaries(2) Basis of measurement about reported segment profit or loss, segment assets, segment liabilities and other material items
Accounting methods of reported segment are the same as that set forth in “Summary of Significant Accounting Policies”. The
segment profits or losses for each reportable segment are in conformity to the operating income of consolidated statements ofincome. Intersegment transactions and transfers are based on fair market prices.
Assets are not allocated to Civil engineering segment and Building construction segment, since the chief operating decision
maker have no financial information on assets in these segments. However, corresponding depreciation expenses including
amortization of intangible fixes assets are allocated to Civil engineering segment and Building construction segment according to
the reasonable criterion measured by depending on the degree on benefit.

32

32

(3) Information about reported segment profit or loss, segment assets, segment liabilities and other material items(a) Segment information as of and for the fiscal year ended March 31, 2016 is as follows:
Millions of yen
CivilengineeringYear ended March 31, 2016:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:¥122,502¥233,462¥18,758¥374,722¥4,536¥379,258¥ －¥379,258－042,461

42,461

18

42,479(42,479)－

Total

122,502

233,462

61,219417,1834,554

421,737(42,479)

379,258

Segment profit

15,097

12,6191,637

29,353313

29,666(4,209)25,457

Assets

Note 4Note 4

31,372

168,382

10,558

178,940

121,428

300,368

199

379

216

794

102

896

153

1,049

Note 4Note 4

524

1,786

96

1,882

819

2,701

Outside customers
Intersegment

Other material items:
Depreciation
and amortization
Capital expenditures

Thousands of U.S. dollars
Civil
engineeringYear ended March 31, 2016:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:$3,365,498$1,087,071$2,071,719$166,456$3,325,246$40,252$3,365,498

$ －

－

0

376,795

376,795

160

376,955(376,955)－

1,087,071

2,071,719

543,251

3,702,041

40,412

3,742,453(376,955)

3,365,498

Segment profit

133,969

111,980

14,527

260,4762,777

263,253(37,350)

225,903

Assets

Note 4Note 4

278,392

1,494,205

93,691

1,587,896

1,077,540

2,665,436

Other material items:
Depreciation
and amortization
Capital expenditures

1,766

3,363

1,917

7,046

905

7,951

1,358

9,309

Note 4Note 44,650

15,849852

16,701

7,267

23,968Outside customers
Intersegment
Total

Notes:
1. “Other” consisted of mainly research and other activities, which are not included in reportable segment.
2. Reconciliations amounts were as follows:(i) Reconciliations amount of segment profit was to ¥(4,209) million (US$(37,350) thousand), which included ¥6 million (US$53
thousand) of intersegment eliminations and others, and ¥(4,215) million (US$(37,403) thousand) of corporate expenses. Corporate
expenses were mainly general and administrative expenses, which are not attributed to reportable segments.
(ii) Reconciliations amount of segment assets was to ¥121,428 million (US$1,077,540 thousand), which included ¥(18,148) million(US$(161,044) thousand) of intersegment eliminations and others, and ¥139,576 million (US$1,238,584 thousand) of corporate assets.
Corporate assets were mainly cash and time deposits, investment securities and others, which are not attributed to reportable segments.
3. Segment profit was adjusted to operating income of consolidated statement of operations.
4. As discussed in Note 22. (2), assets are not allocated to Civil engineering segment and Building construction segment, since the chief
operating decision maker have no financial information on assets in these segments. However, for your information, segment assets ofCivil engineering segment and Building construction segment are amounted to ¥137,010 million (US$1,215,813 thousand), and capital
expenditures of these segments are amounted to ¥1,262 million (US$11,199 thousand).

33

(b) Segment information as of and for the fiscal year ended March 31, 2015 is as follows:
Millions of yen
CivilengineeringYear ended March 31, 2015:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:
Outside customers¥121,555¥225,975¥18,471¥366,001¥3,702¥369,703

¥ －

－

0

37,08537,085

105

37,190(37,190)－

121,555

225,975

55,556

403,086

3,807

406,893(37,190)369,703

Segment profit

9,575

10,365

1,393

21,333774

22,107(3,589)18,518Assets

Note 4Note 429,076

173,430

10,084

183,514

86,206

269,720

197

365

201

763

71

834

225

1,059

Note 4Note 4

204

737

77

814

20

834

Intersegment
Total

Other material items:
Depreciation
and amortization
Capital expenditures¥369,703

Notes:
1. “Other” consisted of mainly research and other activities, which are not included in reportable segment.
2. Reconciliations amounts were as follows:(i) Reconciliations amount of segment profit was to ¥(3,589) million, which included ¥(6) million of intersegment eliminations and others,and ¥(3,583) million of corporate expenses. Corporate expenses were mainly general and administrative expenses, which are not
attributed to reportable segments.
(ii) Reconciliations amount of segment assets was to ¥86,206 million, which included ¥(15,834) million of intersegment eliminations andothers, and ¥102,040 million of corporate assets. Corporate assets were mainly cash and time deposits, investment securities and others,
which are not attributed to reportable segments.
3. Segment profit was adjusted to operating income of consolidated statement of operations.
4. As discussed in Note 22. (2), assets are not allocated to Civil engineering segment and Building construction segment, since the chief
operating decision maker have no financial information on assets in these segments. However, for your information, segment assets of Civil
engineering segment and Building construction segment are amounted to ¥144,354 million, and capital expenditures of these segments areamounted to ¥533 million.

(4) Related information(a) Information about products and services
Disclosure of information about products and services is omitted, since reportable segments of the Companies areclassified by their products and services.
(b) Information about geographic areas(Revenues)
Revenues information about geographic areas for the year ended March 31, 2016 and 2015 are as follows:
Millions of yen

Geographic Areas
Japan
Other
Total

Thousands of
U.S. dollars
2016

2016

2015

¥341,665¥328,439

37,593

41,264

333,596¥379,258¥369,703$3,365,498$3,031,902(Tangible fixed assets)
Disclosure of tangible fixed assets information about geographic areas is omitted, since the proportion of tangible fixed
assets in Japan to total tangible fixed assets is over 90%.

34

(c) Information about major customers
Disclosure of information about major customers is omitted, since net sales to no single customer represented 10% or moreof total net sales of the Companies’ consolidated statement of income for the year ended March 31, 2016 and 2015.
(d) Information about impairment loss of fixed assets by reported segment
No impairment loss is recognized for the year ended March 31, 2015.
Impairment loss of fixed assets by reported segment of the year ended March 31, 2016 is as follow.
Millions of yen
2016

Impairment loss

Reportable segments
Building
Consolidated
Civil engineering
construction
subsidiaries
¥ －
¥ －
¥ －

Other

Eliminations
and others

¥ －

Total

¥431

¥431

Thousands of U.S. dollars
2016

Impairment loss

Reportable segments
Building
Consolidated
Civil engineering
construction
subsidiaries
$ －
$ －
$ －

Other

Eliminations
and others

$ －

Total

$3,825$3,825

23. Amounts per Share of Common Stock
Basis of calculation of basic and diluted profit per share (the “EPS”) for the year ended March 31, 2016 is as follows:
ProfitYear ended March 31, 2016:

Millions of yen

Profit¥14,984

Basic EPS-Profit available to common shareholders¥14,984

Weightedaverage
sharesThousands ofshares184,911EPS
Yen

U.S. dollars¥81.03$0.72¥80.96$0.72

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation－¥14,984155
185,066

Basis of calculation of basic and diluted profit per share (the “EPS”) for the year ended March 31, 2015 is as follows:
ProfitYear ended March 31, 2015:

Millions of yen

Profit¥7,240

Basic EPS-Profit available to common shareholders¥7,240Weightedaverage
sharesThousands ofshares184,835

EPS
Yen¥39.17

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation－¥7,240224
185,059¥39.1235

24. Financial Instruments(1) Status of financial instruments(a) Policies for using financial instruments
The Companies raise funds mainly by borrowings from bank and bond issues, and restrict temporary surplus funds to the lower
risk assets such as deposits. Derivative transactions are employed for hedging of the risk described below, and never use for
speculation.
(b) Detail of financial instruments and the related risks
Notes and accounts receivable are exposed to the credits risks in relation to customers. Foreign currency-dominated notes andaccounts receivable are also exposed to foreign exchange risk.
Investment securities which are mainly share held for keep the relationship with business partners are exposed to market pricefluctuation risk.
Notes and accounts payable are mostly settled within one year.
Borrowing is primarily for working funds. With variable interest rates, it is exposed to interest-rates risk.
Borrowing, notes and accounts payable are also exposed to liquidity risk.
Derivative transactions entered into by the Companies are forward currency exchange contracts to hedge foreign exchange
risk involving oversea business and interest rate swap contracts to hedge interest-rates risk involving borrowing.
Refer to Note 2(8) “Derivatives and hedging transactions” for information about the hedging instruments and hedging items,
hedging policy and method of evaluating hedging effectiveness concerning the hedge accounting methods adopted by theCompanies.
(c) Policies and processes for risk management
In order to control customer’s credit risk, each business and sales management division within the Companies conduct periodic
monitoring of key transaction partners and attempt to find out deterioration of the financial situation at the initial stage under theinternal credit policies.
For the purpose of hedging foreign exchange risk, the Companies conduct forward exchange contracts. The Companies also
conduct interest rate swap contracts to avert interest-rate risk by each long-term borrowing.
Fair value of investment securities are periodically reported to the Directors and Executive Officers. The possession situationof securities is also continually reviewed, taking into consideration of the Companies’ relationship with respective business
partners.
Derivative transactions are treated by the Finance Department in accordance with the established policies. The Companies
deal with credible banks to reduce the credit risk.
In order to manage the liquidity risk, the Companies update financial plan monthly.
(d) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on market value or reasonable estimate if there is no market value. Since certain
assumptions are used for estimating values, values could be different if different assumptions are applied. In addition, thederivative contract amounts described in Note 25 “Derivative Financial Instruments” are not indicative of actual market risk
involved in derivative transactions.
(e) Concentration of credit risk
The trade receivables for specific and large-scale customers accounted for 12.9% of the total trade receivables in the consolidated
financial statements of the current fiscal year.

36

(2) Fair value of financial instruments
The following tables summarize book values and fair values of financial instruments at March 31, 2016:
Millions of yen

Thousands of U.S. dollars

Book values

Fair values

DifferenceBook values

Fair values

Difference¥100,618¥100,618¥ －$892,874$892,874

$ －

Notes

10,105

10,105－89,671

89,671－

Accounts

92,58892,575(13)

821,617

821,501

(116)

613

Type
Assets(a) Cash and time deposits(b) Receivables:(c) Marketable securities andInvestment securities:
Held-to-maturity debt securities

1,385

1,454

69

12,29012,903Available-for-sale securities

31,93031,930－283,344283,344－¥236,626¥236,682¥56$2,099,796$2,100,293

$497

Notes

¥31,147¥31,147¥ －$276,395$276,395$ －Accounts

71,387

71,387－

633,481

633,481－

11,678

11,678－103,629

103,629

－

5,645

5,645

－

50,09350,093

－

451

451

－

4,002

4,002

－

832

838

6

7,383

7,436

53

12,72012,81999

112,876

113,755

879¥133,860¥133,965¥105$1,187,859$1,188,791

$932

¥(27)

¥(27)

¥ －

$(240)$(240)$ －Total assets
Liabilities(a) Payables:(b) Short-term bank loans
Current maturities oflong-term debt
Current portion of bonds(c) Bonds(d) Long-term debt,
less current maturities
Total liabilities
Derivative transactions

The following tables summarize book values and fair values of financial instruments at March 31, 2015:
Millions of yen
TypeAssets(a) Cash and time deposits

Book values

Fair values

Difference¥79,661¥79,661¥ －(b) Receivables:
Notes
Accounts

7,920

7,920

－

101,068

101,038(30)(c) Marketable securities andInvestment securities:
Held-to-maturity debt securities

389

437

48

16,465

16,465－¥205,503¥205,521

¥18

Notes

¥28,162¥28,162¥ －Accounts

70,32670,326－

12,654

12,654

－

7,097

7,097

－

Available-for-sale securities
Total assets
Liabilities(a) Payables:(b) Short-term bank loans
Current maturities oflong-term debt
Current portion of bonds(c) Bonds(d) Long-term debt,
less current maturities
Total liabilities
Derivative transactions

351

351

－

833

833

0

12,753

12,688(65)¥132,176¥132,111

¥(65)

¥(16)

¥(16)

¥ －
37

Notes:1. Method of measurement of financial instruments and matters concerning securities and derivatives(Assets)(a) Cash and time deposits
The fair values of this account are equivalent to the book value, since this account is settled in a short period of time.
(b) Notes and accounts receivables
The fair values of these accounts are based on the present value of discounted cash flows using the interest rate determined by the factors of
the remaining terms and credit risks, with respect to each receivable categorized by collection terms.
(c) Marketable securities and Investment securities
The fair values of this account are based on the quoted market value. However, the fair value of negotiable certificates of deposit is equivalent
to the book value, since this account is settled in a short period of time.
(Liabilities)(a) Notes and accounts payables and (b) Short-term bank loans, Current maturities of long-term debt and Current portion of bonds
The fair values of these accounts are equivalent to the book value, since these accounts are settled in a short period of time.
(c) Bonds
The fair value of bonds issued by the Company is based on the price on bond markets or present value of the total principal and interest
discounted by an interest rate determined taking into account the remaining period of bond and current credit risk.
(d)Long-term debt, less current maturities
The fair values of this account are based on the present value of discounted cash flows using the interest rate which may be applicable when
the same kinds of borrowings are made.
(Derivative transactions)
See Note 25 “Derivative Financial Instruments”.
2. Financial instruments which are difficult to estimate the fair value
Non-marketable securities (book values of ¥3,419 million (US$30,340 thousand) and ¥3,610 million at March 31, 2016 and 2015,
respectively) are not included in the above “Assets (c) Marketable securities and investment securities”; since it is difficult to estimate the fairvalues thereof because neither market quoted value is available nor future cash flows can be estimated.
The fair value of Convertible bond-type bonds with subscription rights to shares (book value of ¥10,050 million (US$89,183 thousand) at
March 31, 2016) is not disclosed, since it is difficult to estimate the fair values thereof because neither market quoted value is available nor
future cash flows can be estimated.
3. Redemption schedules for cash and time deposits, receivables, held-to-maturity debt securities and other at March 31, 2016 and 2015 are as
follows:
Millions of yen
2016
Within1 yearCash and time deposits¥100,618

2015

Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 yearsWithin1 year¥ －¥79,661Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 years¥ －Receivables:
Notes

10,105

－

－

－

7,920

－

－

－

Accounts

83,077

9,510

－

－

91,421

9,646

－

－

1,000

76

64

246

5

42

96

246

15,000

－

－

－

－

－

－

－

¥209,800¥9,586¥64¥246¥179,007¥9,688¥96¥246

Held-to-maturity
debt securities
Negotiable certificatesof deposit
Total

38

38

Thousands of U.S. dollars
2016
Within1 yearCash and time deposits$892,874Over
1 yearless than
5 years$ －Over
5 yearsless than
10 years$ －Over
10 years$ －Receivables:
Notes

89,671－－

Accounts

737,217

84,391

－

－

8,874

674

568

2,183

133,109－－－$1,861,745$85,065$568$2,183

Held-to-maturity debt securities
Negotiable certificatesof deposit
Total

－

25. Derivative Financial Instruments
Derivative transactions accounted for by the hedge accounting at March 31, 2016 and 2015 are as follows:(Currency-related transactions)
Millions of yen
2016
Type ofderivative transactions

Main items
hedgedForeign exchange
forward contract (Sell US$)deposits

Translated at the contracted
rate:

Cash and time

2015

Contract amount
Settled overTotal
1 year¥9,580

¥ －

Fair
value

Contract amount
Settled overTotal
1 year

Note 1

¥ －

¥ －

Fair
value

－

Thousands of U.S. dollars
2016Type ofderivative transactions

Main items
hedgedForeign exchange
forward contract (Sell US$)deposits

Translated at the contracted
rate:

Cash and time

Contract amount
Settled overTotal
1 yearFair
value$85,012Note 1$ －Note:
1. The fair values of translated at the contracted rate treatment are included in the fair value of cash and time deposits since such foreignexchange forward contract is treated together with cash and time deposits being hedged.

(Interest-related transactions)
Millions of yen
2016
Type ofderivative transactions

Main items
hedged2015

Contract amount
Settled overTotal
1 yearFair
value

Contract amount
Settled overTotal
1 yearFair
value

Benchmark method:

Interest swap contract:
To pay fixed, to receive variable

Long-term debt

¥865

¥793

Note 2¥937¥865

Note 2Long-term debt

¥8,943¥6,015Note 2¥10,398¥6,792

Note 2

Short-cut method:

Interest swap contract:
To pay fixed, to receive variable39

39

Thousands of U.S. dollars
2016Type ofderivative transactions

Main items
hedgedContract amount
Settled overTotal
1 yearFair
value

Benchmark method:

Interest swap contract:
To pay fixed, to receive variable

Long-term debt

$7,676$7,037Note 2Long-term debt

$79,359$53,377

Note 2

Short-cut method:

Interest swap contract:
To pay fixed, to receive variableNote:

1. Fair value is based on the prices obtained from counterparty financial institutions.
2. The fair values of special case interest swap treatment are included in the fair value of long-term debt since such interest swap is treated
together with long-term debt being hedged.

26. Asset Retirement Obligations
Disclosures about asset retirement obligations are omitted, since the amount of asset retirement obligations is immaterial for theyear ended March 31, 2016 and 2015.
27. Fair Value of Investment and Rental Property
Disclosures about fair value of investment and rental property are omitted, since the total amount of investment and rental
property is immaterial for the years ended March 31, 2016 and 2015.

40

40

28. Stock Option Plans(1) No cost for stock options is recognized for the years ended March 31, 2016 and 2015.
(2) The stock options outstanding at March 31, 2016 are mainly as follows:(a) Content
The first series
The first seriesof shareof sharesubscription rights (A)subscription rights (B)Persons granted
Class and number ofsharesDate of grantCondition of
settlement rights

Length of service
Exercisable period

June 27, 2008

June 26, 2009

June 26, 2009

Directors of the company: 8
Executive officers: 13

Executive employees: 76

Directors of the company: 9
Executive officers: 12

Executive employees: 9110,400 sharesof common stock
July 15, 2008

722,000 sharesof common stock
July 15, 2008

115,000 sharesof common stock
July 14, 2009

86,400 sharesof common stock
July 14, 2009

The person who exercises
stock purchase rights shallbe a director, or executive
officer of the Company,
who has continued towork at the Company
from the fifth
stockholders’ meeting to
the sixth stockholders’meeting.
However, this condition
is invalid in case of deathor loss of position due toCompany circumstances.
From July 15, 2008
to July 14, 2009
From July 15, 2009

The person who exercises
stock purchase rights shallbe an employee of theCompany who has
continued to work at theCompany from July 15,
2008 until July 15, 2010.
However, this condition
is invalid in case of death,retirement age or loss of
position due to Company
circumstances.

The person who exercises
stock purchase rights shallbe a director, or executive
officer of the Company,
who has continued towork at the Company
from the sixth
stockholders’ meeting to
the seventh stockholders’meeting.
However, this condition
is invalid in case of deathor loss of position due toCompany circumstances.
From July 14, 2009
to July 13, 2010
From July 14, 2010

The person who exercises
stock purchase rights shallbe an employee of theCompany who has
continued to work at theCompany from July 14,
2009 until July 14, 2011.
However, this condition
is invalid in case of death,retirement age or loss of
position due to Company
circumstances.

From July 15, 2008
to July 15, 2010
From July 16, 2010

to July 14, 2019

to July 15, 2015

The third seriesof sharesubscription rights (A)The fourth seriesof sharesubscription rights (A)June 29, 2010

June 29, 2011

Persons granted

Directors of the company: 9
Executive officers: 13

Class and numberof shares
Date of grant

90,000 sharesof common stock
July 16, 2010

85,800 sharesof common stock
July 15, 2011

The person who exercises
stock purchase rights shallbe a director, or executive
officer of the Company,
who has continued to workat the Company from theseventh stockholders’meeting to the eighth
stockholders’ meeting.
However, this condition
is invalid in case of deathor loss of position due toCompany circumstances.
From July 16, 2010
to July 15, 2011
From July 16, 2011

The person who exercises
stock purchase rights shallbe a director, or executive
officer of the Company,
who has continued to workat the Company from theeighth stockholders’meeting to the ninth
stockholders’ meeting.
However, this condition
is invalid in case of deathor loss of position due toCompany circumstances.
From July 15, 2011
to July 14, 2012
From July 15, 2012

Length of service
Exercisable period

The second seriesof sharesubscription rights (B)June 27, 2008

Directors of the company: 8
Executive officers: 8

Condition of
settlement rights

The second seriesof sharesubscription rights (A)to July 15, 2021

to July 13, 2020

From July 14, 2009
to July 14, 2011
From July 15, 2011
to July 14, 2016

to July 14, 2022
41

(b) Number and price

The first
series of sharesubscription
rights (A)The first
series of sharesubscription
rights (B)The second
series of sharesubscription
rights (A)The second
series of sharesubscription
rights (B)The third
series of sharesubscription
rights (A)The fourth
series of sharesubscription
rights (A)At the beginning of the year

―

―

―

―

―

―

Granted during the year

―

―

―

―

―

―

―

―

―

―

―

―

Vested during the year

―

―

―

―

―

―

At the end of the year

―

―

―

―

―

―
48,800Non-vested shares

Forfeited and expired during theyear

Vested shares
At the beginning of the year

13,20019,00036,80014,20054,000

Vested during the year

―

―

―

―

―

―

Exercised during the year

4,400

19,00013,8004,600

18,000

9,200

―

―

―

―

―

―

8,800

0

23,0009,600

36,00039,600

¥1

¥125

¥1

¥120

¥1

¥1

Average stock price at exercise

¥668

¥681

¥551

¥519

¥603

¥604

Fair value price at the grant date

¥107

¥30

¥101

¥28

¥72

¥111

Forfeited or expired during theyear
Unexercised at the end of the year
Exercise price(3) Method to estimate fair value of stock options
It does not give employees stock options for the current fiscal year.
(4) Method to estimate number of vested stock options
As a rational estimate of the forfeited number of stock options in the future is generally difficult, the company adopts a method whereby only
forfeited numbers are reflected.

29. Subsequent Event
On June 29, 2016, the shareholders of the Company approved the appropriations of retained earnings to pay cash dividends in theamount of ¥1,294 million (US$11,483 thousand).

4242Independent Auditor’s Report43Global Network
Japan
Head Office6-1-20, Akasaka, Minato-ku, Tokyo 107-8658, Japan

Branches

Sapporo, Tohoku, Hokuriku, Metropolitan Area Building,Kanto Civil, Shizuoka, Nagoya, Osaka, Shikoku,
Hiroshima, Kyushu

International Division

6-1-20, Akasaka, Minato-ku, Tokyo 107-8658, Japan

Branches

81-3-6234-3600

81-3-6234-3640

Asia, North America

Technical Research Institute515-1, Karima, Tsukuba-shi, Ibaraki 305-0822, Japan

81-29-858-8800

Overseas

TurkeyU.S.A.
Vietnam
Laos

Nepal

Cambodia

MyanmarSingapore

Thailand

MexicoHonduras
PanamaMalaysia
Indonesia

OfficesThailand

AddressPhone

159 Serm-Mit Tower Building, 15th Floor, Sukhumvit Road 21 (Soi Asoke), North Klongtoey,
Wattana, Bangkok 10110, Thailand

66-2-665-7041

Vietnam

18th Floor, Harbour View Tower, 35 Nguyen Hue Street, District 1, Ho Chi Minh City, Vietnam

84-8-38299533

Malaysia

Suite 13.4, Level 13, Menara IMC, Letter Box No.9, No.8, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia

60-3-2031-4902

Indonesia

Menara Thamrin, 14th Floor, Suite 1405, JL. M.H. Thamrin Kav. 3, Jakarta, 10250, Indonesia

62-21-3140392

Laos

Ban Sibounheung Unit No.3 House No.030 Chanthabouly District Vientiane Capital, LAO.P.D.R

856-21-250-872

MyanmarRoom No.513, YANGON INTERNATIONAL HOTEL, No.330, Ahlone Road, Dagon Township, Yangon, Myanmar

95-1-216002 (Ext.513)

Cambodia

Office NO.19, HOTEL CAMBODIANA 313 Sisowath Quay, Phnom Penh, Cambodia

855-23-992-914

Nepal

P.O.Box No.4137 Ward No.4 Baluwatar, Kathmandu, Nepal

977-1-4438032

TurkeyATATURK MAHALLESI GIRNE CADDESI, NO:27, D:2-3, Atasehir, Istanbul, Turkey

90-216-456-5047

MexicoPaseo de la Reforma N° 373 1-B Col. Cuauhtémoc C.P. 06500 Del. Cuauhtémoc Mexico D.F.

52-55-5525-9311

U.S.A.

500 West Wilson Bridge Road, Suite 130 Worthington, Ohio 43085, U.S.A.

1-614-985-4906

PanamaEdificio Office One. Oficina No. 1104 Avenida Nicanor de Obarrio o Calle 50 con 58 Este Obarrio, Ciudad de Panama 507-830-6671

Honduras

Colonia Lomas de Miraflores Sur 3ra. Calle, Casa No. 4310, Tegucigalpa M.D.C., Honduras, C.A

44

504-2271-1283

Corporate DataName

(As of March 31, 2016)

Authorized Shares

HAZAMA ANDO CORPORATION

Issued Shares

Common stock
397,250,000
Preferred stock
2,750,000

Established
October 1, 2003

Common stock
185,209,189

Number of Shareholders
40,221
Number of Employees
3,387

Capital¥12,000 million

Directors, Officers
Board Directors
Representative Director andChairman of the Board of
Directors
Toshio Ono
Representative Director andPresident
Toshiaki Nomura
Representative Directors andVice Presidents
Haruyuki Kaneko(As of July 1, 2016)

Board Directors / Senior
Managing Executive Officers
Hikari Yamazaki
Board Directors / Managing
Executive Officers
Yasushi Kikuchi
Hideo Hosobuchi
Toru Ikegami
Board Directors(External Board Directors)
Yuzuru Fujita
Shoko Ikeda

Board Director andVice President

Auditors

Mitsuaki Higo

Auditors

Hidekazu Kojima

Yoshihiko Baba
Kimihiro Hirata

Fumio Sugimoto

Corporate Auditors(External Auditors)
Shigeo Kamimura
Masamitsu Takahara

Executive Officers
Senior Managing Executive
Officers
Toshioki Nishida
Managing Executive Officers
Toshihiko Kitano
Masato Fukutomi
Kazuya Ozawa
Katsuhiko Tabuchi
Hajime Tsukizu
Muneo Gomi
Masanobu Shiga

Major Subsidiaries and Affiliates
Name
Stated Capital			

Executive Officers
Toshimitsu Ueno
Shinkichi Komatsubara
Katsuhiko Kosaka
Shozo Tsuji
Tatsumi Asao
Toshiaki Iimura
Yoichi Matsuura
Masaaki Tomita
Ken Moriyasu
Kazutaka Miyazaki
Hiroshi Ono
Hideo MatsumotoTakeshi Komatsu
Shinya Miyamori
Fuminori Hirosue(As of April 1, 2016)

Principal Business

Address / Phone

Hazama Ando Kogyo
152.5 million JPY
Sales of Construction Materials
Co., Ltd.			

1-38-4, Kameido, Koto-ku, Tokyo 136-0071, Japan
81-3-5626-7130

Aoyama Kiko Co., Ltd.
80 million JPY
Construction, Procurement			2-45, Yamanaka, Kitamoto-shi, Saitama 364-0004, Japan
81-48-591-9770

Ryoko Kaihatsu Co., Ltd.
80 million JPY
Real-estate			

1-8-20, Marunouchi, Naka-ku, Nagoya-shi, Aichi 460-0002, Japan
81-52-232-2171

HAZAMA ANDO (THAILAND)
16 million THB
Construction
CO., LTD.			
			

159 Serm-Mit Tower Building, 15th Floor, Sukhumvit Road 21(Soi Asoke), North Klongtoey, Wattana, Bangkok 10110, Thailand
66-2-665-2980

HAZAMA ANDO SINGAPORE
6.5 million SGD
Construction
PTE. LTD.			

168 Jalan Bukit Merah #03-07 D&E, Tower C, Singapore 150168
65-6270-9498

HAZAMA ANDO MALAYSIA
800,000 MYRConstruction
SDN. BHD.			

			

No. 84B, Jalan Sutera Tanjung 8/4, Taman Sutera Utama, 81300
Skudai, Johor, Malaysia
60-7-557-3833

PT.Hazama Ando Murinda
50,000 Million IDR Construction			Menara Thamrin, 14th Floor, Suite 1405, JL. M.H. Thamrin Kav. 3,
Jakarta, 10250, Indonesia

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