Brief Financial Report for the Second Quarter of FY2009
November 13, 2008
Listed company name: OKUMURA CORPORATION

Stock exchange listings: Tokyo and Osaka

Code number: 1833
URL: http://www.okumuragumi.co.jp/
Representative: President and Representative Director: Takanori Okumura
Contact: Administration Division, Finance and Accounting Department, General Manager: Atsushi Tanaka TEL: (06) 6621-1101
Scheduled date for filing of Quarterly Securities Report (Shihanki Hokokusho): November 14, 2008
(Amounts less than one million yen have been omitted)
1. Consolidated financial results for the second quarter of FY2009 (April 1, 2008 through September 30, 2008)(1) Consolidated operating results for six-month period(% indicates changes from the corresponding period of the previous fiscal year)
Net sales
Operating loss
Ordinary income (loss)
Net loss
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
2nd quarter of
78,944
―
(972)
―
217
―
(4,716)―
FY2009
2nd quarter of
89,81016.3(9,490)―(8,601)―(26,667)―
FY2008Net income pershare (diluted)
Yen

Net loss per share
2nd quarter ofFY2009
2nd quarter ofFY2008

Yen(23.58)―(133.26)―(2) Consolidated financial position

2nd quarter of
FY2009FY2008

Total assets

Net assets

Shareholders’ equity ratio

Net assets per share

Millions of yen

Millions of yen

344,421

121,93235.4

609.84

332,711

128,81938.7

644.04%Yen

2. Dividends(Record date)

End of
1st quarter
Yen
―
―
―

Cash dividends per share
End of
3rd quarter
Yen―――

End of
2nd quarter
Yen―――

FY2008FY2009FY2009 (Forecast)
Note: Revisions to the forecast of cash dividends during the current quarter: Not applicableYear-end

Total for the year

YenYen

9.00―
9.00

9.00―
9.00

3. Forecast of consolidated operating results for FY2009 (April 1, 2008 through March 31, 2009)(% indicates changes from the previous fiscal year)
Net sales
Operating income
Ordinary income
Net income
Net income per share
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2009230,530(9.3)
1,670―
3,620―
900―
Note: Revisions to the forecast of consolidated operating results during the current quarter: Applicable－1－Yen

4.50

4. Other(1) Changes in significant subsidiaries during the current six-month period (Changes in scope of consolidation): Not applicable(2) Adoption of simplified accounting procedures and accounting procedures specific to quarterly consolidated financial
statements: Not applicable(3) Changes in accounting principles, procedures and presentation method, etc. for quarterly consolidated financial statements
1) Changes due to the revision of the accounting standards: Applicable
2) Changes other than 1): Applicable(4) Number of shares of common stock issued and outstanding
1) Number of shares issued at the end of each period (including treasury stock):
FY2008: 228,326,133 shares
2nd quarter of FY2009: 228,326,133 shares
2) Number of treasury stock at the end of each period:
FY2008: 28,308,113 shares
2nd quarter of FY2009: 28,384,060 shares
3) Average number of shares outstanding during each six-month period ended September 30:
FY2009: 199,991,016 shares
FY2008: 200,110,550 shares*Note to appropriate use of forecasts
1. The Company has revised the full fiscal year forecast for FY2009 which was announced on May 15, 2008.
2. This report contains forward-looking statements including performance forecasts. These forward-looking statements weremade based on currently available information and on assumptions that the Company judges to be reasonable. Actualresults may differ substantially from those stated in this report due to various factors.
3. Effective from the fiscal year ended March 31, 2009, the Company adopted the Accounting Standard for Quarterly
Financial Statements (ASBJ Statement No. 12) and the Implementation Guidance for Accounting Standards for Quarterly
Financial Statements (ASBJ Guidance No. 14). The consolidated financial statements of the Company are prepared inaccordance with “Regulations for the Quarterly Consolidated Financial Statements.”－2－Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)
Current Second Quarter
As of September 30, 2008

FY2008
As of March 31, 2008

AssetsCurrent assets:
Cash and deposits

22,49910,668Notes receivable, accounts receivable fromcompleted construction contracts and other48,49685,998

Short-term investment securities

18,20114,803

Real estate for sale

1,408

1,572

Costs on uncompleted construction contracts

140,147

102,591

Costs on real estate business

11,24911,382Work in process

1,138

826

221

143

Other

18,30816,915

Allowance for doubtful accounts(4,196)(4,633)

Total current assets

257,474

240,268

23,81823,217759

853

Investment securities

57,49863,325

Other

5,064

5,207

Allowance for doubtful accounts

(194)

(161)

Total investments and other assets

62,36968,371

86,94792,442

344,421332,711

Raw materials and supplies

Noncurrent assets:
Property, plant and equipment
Intangible assets
Investments and other assets

Total noncurrent assets
Total assets－3－(Millions of yen)
Current Second QuarterAs of September 30, 2008

FY2008
As of March 31, 2008

Liabilities
Current liabilities:
Notes payable, accounts payable forconstruction contracts and other
Short-term loans payable

86,432

86,914

11,831

10,995158

147

Advances received on uncompleted
construction contracts

89,32368,171

Provision

1,487

1,797

Provision for loss on construction contracts

5,021

6,904

Other

9,089

9,506

203,345

184,438286

404

Provision for retirement benefits

5,508

5,525

Negative goodwill

1,276

1,417

Other

12,073

12,105

Total noncurrent liabilities

19,143

19,452

222,489

203,891

Capital stock

19,838

19,838

Capital surplus

25,32825,329Retained earnings

72,03678,553

Treasury stock(12,291)(12,260)

Total shareholders’ equity

104,912

111,460

Valuation difference on available-for-salesecurities

17,01917,359Total valuation and translation adjustments

17,01917,359Total net assets

121,932

128,819

344,421332,711

Income taxes payable

Total current liabilities
Noncurrent liabilities:
Long-term loans payable

Total liabilities

Net assets
Shareholders’ equity:

Valuation and translation adjustments:

Total liabilities and net assets

Note: Certain account titles for the previous year have been restated to conform to the current quarter’s presentation.

－4－

Consolidated Statements of Income(Six-month Period Ended September 30)(Millions of yen)Six-month Ended
September 30, 2007

Six-month Ended
September 30, 2008

April 1, 2007 throughApril 1, 2008 throughSeptember 30, 2007

September 30, 2008

Net sales

89,81078,944

Cost of sales

88,392

71,239Gross profit

1,417

7,704

Selling, general and administrative expenses

10,908

8,677

Operating loss

(9,490)(972)

Interest income

341

224

Dividends income

603

783

Amortization of negative goodwill―141

Non-operating income

Other
Total non-operating income

73

141

1,017

1,291

120

84

816

Non-operating expenses
Interest expenses
Other
Total non-operating expenses

129

100(8,601)

217

Gain on prior period adjustment

210

298

Gain on sales of noncurrent assets

163

409

Gain on sales of investment securities

210

Reversal of allowance for doubtful accounts

61

394

Total extraordinary income

457

1,103

2426

Ordinary income (loss)
Extraordinary income

Extraordinary loss
Loss on prior period adjustment
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets

95

188

87

Loss on sales of investment securities―

500

Loss on valuation of investment securities

179

1,040

Loss on reduction of noncurrent assets

3―

Loss on valuation of membership

27―

Special extra retirement payments

―

4,166

Total extraordinary loss

432

5,825

Loss before income taxes(8,576)(4,504)

108

107

Income taxes-current

(199)

―

Income taxes-deferred

18,240104

Total income taxes

18,148212

58―(26,667)(4,716)

Refund of income taxes for prior periods

Minority interests in loss
Net loss

Note: Certain account titles for the previous six-month period have been restated to conform to the current period presentation.

－5－

Consolidated Statements of Cash Flows(Six-month Period Ended September 30)(Millions of yen)Six-month Ended
September 30, 2007

Six-month Ended
September 30, 2008

April 1, 2007 throughApril 1, 2008 throughSeptember 30, 2007

September 30, 2008

Cash flows from operating activities:
Loss before income taxes(8,576)(4,504)

Depreciation and amortization

433458

Amortization of negative goodwill

―

(141)

Decrease in allowance for doubtful accounts

(63)

(404)

Decrease in provision for retirement benefits

(528)

(17)

Increase (decrease) in provision for loss on
construction contracts

2,159(1,882)

Interest and dividends income(944)(1,008)Interest expenses

120

84

Gain on sales of noncurrent assets

(154)

(404)

(21)

499

179

1,040

―

4,166

Decrease in notes and accounts receivable-trade24,46637,502

Increase in costs on uncompleted construction
contracts(21,044)(37,556)

Increase in inventories(3,788)(116)

Decrease in notes and accounts payable-trade(4,322)(1,694)

Increase in advances received on uncompleted
construction contracts

13,892

21,151(910)―

Increase in consumption taxes refund receivable(1,489)(1,700)

Other, net(4,271)

460

Subtotal(4,865)

15,932

Interest and dividends income received

957

1,010

Interest expenses paid

(119)

(84)

Income taxes paid

(278)

(90)

―

(4,072)(4,305)

12,695

Loss (gain) on sales of short-term and long term
investment securities
Loss on valuation of short-term and long terminvestment securities
Special extra retirement payments

Decrease in accrued consumption taxes

Payments for special extra retirement payments
Net cash provided by (used in) operating
activities－6－Consolidated Statements of Cash Flows(Millions of yen)Six-month Ended
September 30, 2007

Six-month Ended
September 30, 2008

April 1, 2007 throughApril 1, 2008 throughSeptember 30, 2007

September 30, 2008

Cash flows from investment activities:
Decrease in time deposits

9,357

205

(766)

(203)

3,309

5,616

(1,840)

(827)

166

432

Payments of loans receivable

(13)

(104)

Collection of loans receivable

54195

Other, net

565

78

10,832

5,391

Net increase in short-term loans payable

15902

Repayment of long-term loans payable

(32)

(129)

Purchase of treasury stock

(73)

(39)

37(3,982)(1,792)

Cash dividends paid to minority shareholders(8)―

Other, net―(0)(4,078)(1,051)(8)0

Net increase in cash and cash equivalents

2,440

17,035

Cash and cash equivalents at beginning of period

39,637

21,445

Cash and cash equivalents at end of period

42,07738,481

Purchase of short-term and long term investment
securities
Proceeds from sales and redemption of shortterm and long term investment securities
Purchase of property, plant and equipment andintangible assets
Proceeds from sales of property, plant andequipment and intangible assets

Net cash provided by investment activities
Cash flows from financing activities:

Proceeds from sales of treasury stock
Cash dividends paid

Net cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents

Note: Certain account titles for the previous six-month period have been restated to conform to the current period presentation.

－7－

Breakdown of Orders (Non-consolidated)(Millions of yen)Six-month Ended
September 30, 2007

Six-month Ended
September 30, 2008

April 1, 2007 throughSeptember 30, 2007

April 1, 2008 throughSeptember 30, 2008

Civil engineering
construction

Architectural

7,677

50.3

Domestic private sector

7,726

50.6

%

84.8

7,038

15.1

Civil engineering
Subtotal% Change
Increase(Decrease)%

31,909

415.6

(688)

(8.9)

51.2

Overseas

(129)

(0.9)

59

0.1

189

－Subtotal

15,274100

46,685100

31,411205.6Domestic public sector

2,898

6.1

6,083

13.7

3,184

109.9

Domestic private sector

44,58493.9

38,345

86.3(6,238)(14.0)

Subtotal

47,482

100

44,429100(3,053)(6.4)

Domestic public sector

10,57616.8

45,67050.1

35,094331.8

Domestic private sector

52,31083.4

45,38449.8(6,926)(13.2)

75.7

48.8

100

Overseas

(129)

(0.2)

59

0.1

189

－

Total

62,757

100

91,114100

28,35745.2

Domestic public sector

15,032

62.9

4,109

20.6

(10,922)(72.7)

Domestic private sector

8,876

37.112,522

62.7

3,646

41.1

Overseas

－－

3,330

16.7

3,330

－

(3,945)(16.5)

1,713

50.2

(9,887)(16.8)

71.4(8,173)(13.1)[100](9,209)(49.9)[27.7]

27.2
Subtotal

23,908100

Domestic public sector

3,415

5.5

Domestic private sector

58,921

94.5

Subtotal

62,336100

71.1

Domestic public sector

18,447

21.4

[100]

Domestic private sector

67,797

Overseas
Subtotal[26.9]

26.3
19,963

100

5,129

9.5

49,033

90.5

54,163

100

9,238

12.5

78.6

61,55683.0(6,241)

(9.2)

－－

3,330

4.5

3,330－

86,245100

74,126100(12,119)(14.1)[72.3]

98.3[73.1]

97.7

Side line business

1,488

1.7

1,781

2.3

292

19.6

Total

87,734100

75,907100(11,827)(13.5)

31,54334.7(7,883)(15.5)

construction

Civil engineering
Architectural

Total

Domestic public sector%
39,587100

Architectural
construction

Projects completed

Net sales
Period-end backlog

%

24.3

Total

Construction orders awarded%

ChangeIncrease(Decrease)

Domestic public sector

90,79351.6

Domestic private sector

50,872

28.9

122,33665.3

42,98923.0

45.0

52.0

Overseas

34,33619.5

21,997

11.7(12,339)(35.9)

Subtotal

176,002100

187,322100

11,320

6.4

Domestic public sector

23,44010.9

25,467

14.7

2,026

8.6

Domestic private sector

191,84889.1

147,57185.3(44,276)(23.1)

Subtotal

215,288100

173,038100(42,249)(19.6)

Domestic public sector

114,233

29.2

147,803

41.0

33,56929.4

Domestic private sector

242,72062.0

190,560

52.9(52,159)(21.5)

55.0

100

48.0

100

Overseas

34,3368.8

21,997

6.1(12,339)(35.9)

Total

391,291100

360,361100(30,929)(7.9)－8－