Brief Consolidated Financil Report for the First Half of FY2007
November 16, 2006
Stock Exchange Listings: Tokyo and Osaka
Listed Company Name: OKUMURA CORPORATION
Code No: 1833
Head Office: Osaka(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
Date of Board Meeting for settlement of accounts: November 16, 2006
Adoption of U.S. GAAP: No
1. Consolidated results for the first half of FY2007 (April 1, 2006 to September 30, 2006)(1) Consolidated business results(Amounts less than one million yen have been omitted)
Operating income (loss)
Ordinary income (loss)

Net sales
Millions of yen

First half of FY2007First half of FY2006
FY2006

77,246
63,678269,887%

Notes: 1
234329(2,438)4,160――(2,286)(6,132)
5,511

Net income (loss) per share

Millions of yen%

Millions of yen%

(3,093)(7,336)
3,889

Net income (loss)
First half of FY2007First half of FY2006
FY2006

Millions of yen

21.3―

Net income per share (diluted)

Yen――%――Yen

1.63(11.95)
20.27

―
―
―

Equity in earnings of unconsolidated subsidiaries and affiliates
First half of FY2007: － million yen
First half of FY2006: － million yen
FY2006: － million yen
Average number of shares outstanding (consolidated)
First half of FY2007: 201,860,833 shares First half of FY2006: 204,126,118 shares FY2006: 203,225,151 shares
Changes in the method of accounting policies: Applicable
Percentages of net sales, operating income (loss), ordinary income (loss) and net income (loss) represent an increase(a decrease) from the corresponding period of the previous fiscal year.

(2) Consolidated financial position
Total assets
First half of FY2007First half of FY2006
FY2006

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen

404,903431,894
437,155

178,774
166,309
183,689

43.8
38.5
42.0

Note: Number of shares outstanding at end of period (consolidated)
First half of FY2007: 200,217,971 sharesFirst half of FY2006: 202,346,637 shares(3) Consolidated cash flows
Cash flows fromoperating activities
First half of FY2007First half of FY2006
FY2006

Cash flows frominvesting activities

Net assets per share%Yen

884.87821.90907.83

FY2006: 202,291,673 shares

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

5,536(13,255)(18,612)(2,857)
14,47023,215(3,437)(3,628)(4,740)Cash and cash equivalents
at end of period
Millions of yen

45,312
43,76046,084(4) Number of consolidated subsidiaries, and unconsolidated subsidiaries and affiliates accounted for by the equity method
Consolidated subsidiaries: 2 Unconsolidated subsidiaries accounted for by the equity method: 0Affiliates accounted for by the equity method: 0(5) Changes in the number of consolidated subsidiaries, and unconsolidated subsidiaries and affiliates accounted for by the equitymethod
Newly consolidated subsidiaries: 0 Subsidiaries excluded from consolidation: 0Companies newly accounted for by the equity method: 0 Companies excluded from the equity method: 02. Forecast of consolidated business results for FY2007 (April 1, 2006 to March 31, 2007)
Net sales

Ordinary income

Millions of yen

FY2007
237,800(Reference) Expected net income per share (FY2007): 20.98 yen

Net income

Millions of yen

Millions of yen

4,990

4,200

Note: Since the forecasts described above have been made based on information available as of the announcement, actual
results may differ from these forecasts due to various factors.
Consolidated–1

Consolidated Financial Statements
Consolidated Balance Sheets

ItemChangeFirst half of FY2007

FY2006

As of September 30, 2006

As of March 31, 2006

Millions of yen

Composition
ratio (%)

Millions of yen

Composition
ratio (%)

Increase(Decrease)

First half of FY2006
As of September 30, 2005

Millions of yen

Millions of yen

Composition
ratio (%)

AssetsCurrent assets:
Cash and time deposits

48,95753,760(4,802)54,801

Trade notes and accounts receivable

33,07884,342(51,264)

35,511

Short-term investments
Accumulated costs of uncompleted
contracts
Other inventories

15,322

7,819

7,503

2,135

137,160

113,981

23,179166,724

8,983

8,848

135

8,141

Deferred income taxes

13,50813,352

156

17,569Other accounts receivable

22,41323,983(1,570)22,179OthersLess: Allowance for doubtful
accounts

3,088

4,038

(949)

4,749

(2,711)(4,742)

2,030(3,198)(25,581)308,613

Total current assets

279,801

69.1

305,383

69.9

71.5

Fixed assets:
Property and equipment:
4,234

4,144

89

5,333

917

930

(13)

959

15,22515,000224

16,392

205

113

91

132

20,581

20,188393

22,817

1,100

1,065

34

665

Investments in securities

96,993103,979(6,985)94,425Long-term receivables

2,430

2,517

(87)

4,151

OthersLess: Allowance for doubtful
accounts

4,025

4,060

(35)

2,941

(28)

(39)

10(1,720)

Total investments and other assets103,419

110,517(7,097)

99,798

Total fixed assets

125,10130.9

131,77130.1(6,669)123,280

28.5

Total assets

404,903100

437,155100(32,251)

431,894

100

Buildings
Machinery and equipment
Land
Construction in progress
Total property and equipment
Intangible fixed assets
Investments and other assets:

Consolidated–2

Item

ChangeFirst half of FY2007

FY2006

As of September 30, 2006

As of March 31, 2006

Millions of yen

Composition
ratio (%)

Millions of yen

Composition
ratio (%)

Increase(Decrease)

First half of FY2006
As of September 30, 2005

Millions of yenMillions of yen

Composition
ratio (%)

Liabilities
Current liabilities:
Trade notes and accounts payable
Short-term loans including current
portion of long-term debt
Accrued income taxes
Advances received on uncompleted
contracts
Allowance for repairs
Allowance for warranty work on
construction projects
Allowance for construction loss
OthersTotal current liabilities
Long-term liabilities:
Long-term debt

72,907

98,267(25,360)

87,116

12,384

12,431(46)

13,495

460

241

219

177

95,29388,4906,802

127,006

97

236

(138)

219

563

695

(131)

264

2,902
16,601

1,944
21,531957(4,929)2,082
13,190(22,626)

243,552

201,21149.7

223,837

51.2

56.4

525

583

(57)

584

Deferred income taxes
Accrued severance indemnities
Others17,4326,946
14

19,4297,877
14(1,996)(930)
011,642
8,143
14

Total long-term liabilities

24,918

6.1

27,903

6.4(2,985)

20,385

4.7

Total liabilities

226,12955.8

251,74157.6(25,611)

263,938

61.1

Minority interests
Minority interests

―

1,724

0.4

―

1,646

0.4

Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Net unrealized gains on securities
Less: Treasury stock, at cost

―
―
―
―
―

19,83825,326112,973
36,374(10,823)

4.5
5.8
25.9
8.3
(2.5)

―
―
―
―
―

19,83825,325
106,373
25,556(10,785)

4.6
5.9
24.6
5.9
(2.5)

―

183,68942.0―

166,30938.5―

437,155100―

431,894

100

Total shareholders’ equity
Total liabilities,minority interests andshareholders’ equity
Net assets
Shareholders’ equity:
Common stock
Additional paid-in capital
Retained earnings
Less: Treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments:
Net unrealized gains on securities
Total valuation and translation
adjustments
Minority interests

19,838

4.9

―

―

―

25,327111,237(12,135)

6.3
27.5
(3.0)

―
―
―

―
―
―

―
―
―

144,268

35.7

―

―

―

32,898

8.1

―

―

―

32,898

8.1

―

―

―

1,607

0.4

―

―

―

Total net assets

178,774

44.2

―

―

―

Total liabilities and net assets

404,903

100

―

―

―

Consolidated–3

Consolidated Statements of Income

Item
Net sales:
Completed constructionOthers
Total net sales
Cost of sales:
Completed construction
OthersTotal cost of sales
Gross profit:
Completed construction
OthersTotal gross profit
Selling, general and administrative
expenses
Operating income
Operating loss
Non-operating income:Interest income
Dividends
Amortization of negative goodwill
Amortization of consolidationdifferences
OthersTotal non-operating income
Non-operating expenses:
Interest expenses
Foreign exchange loss
OthersTotal non-operating expenses
Ordinary income
Ordinary loss
Extraordinary gains:
Prior-year adjustment
Gain on sales of property andequipment
Reversal of allowance for doubtful
accounts
Gain on sales of investments insecurities
Gain on redemption of investments insecurities
Total extraordinary gains
Extraordinary losses:
Prior-year adjustment
Loss on sales of property andequipment
Loss on disposal of property andequipment
Devaluation of investments insecurities
Loss on deduction of carrying amounts
of property and equipment
Total extraordinary losses
Income before income taxes andminority interests
Loss before income taxes andminority interests
Current income taxes
Deferred income taxes
Minority interests in income ofconsolidated subsidiaries
Minority interests in loss of
consolidated subsidiaries
Net income
Net loss

First half of FY2007First half of FY2006

ChangeFY2006

April 1, 2006 to
September 30, 2006

April 1, 2005 to
September 30, 2005

Increase(Decrease)

April 1, 2005 to
March 31, 2006

Millions of yen

74,273
2,972
77,246Composition
ratio (%)

Millions of yen

Composition
ratio (%)

Millions of yen

Millions of yen

Composition
ratio (%)

100

12,802765
13,568261,041
8,846
269,887

100

93.4

9,258
188
9,446

236,952
6,236
243,18890.1

24,0882,610
26,6999.910061,471
2,206
63,67889.2

58,1781,274
59,452

6,837
1,509
8,347

10.8

3,293
932
4,225

6.6

3,544
577
4,121

11,44014.8

11,562

18.1

(121)

22,809

8.5

―
3,093

―
7,336

(11.5)―(4,243)

3,889
―

1.4

(4.0)

67,436
1,463
68,899

200
667
13

133
1,136
―

67(468)
13

277
1,363
―

―

14(14)

14(9)
(412)

298
1,954

(49)
25
8(15)
―
(3,846)

269
―
62
332
5,511
―

95
977
99
25
44
169
―
2,286

1.2

0.2
(3.0)

105
1,389
149
―
36185
―6,132

2.2

0.3
(9.6)

212

384

(172)

341

756

418

338

1,389

2,041

1,654

387

―

206

20

185

140

―
3,216

―
4.2

2,478

3.9―

825

737

2,696

131

104

27

200

00(0)

2

18

43(25)

74

177

104

73

12―

―

328

0.4

252

602

0.8

―

―
88
245

0.1
0.4

―

0.4

0.1
2.0

1.0―

411

75

702

0.2

602

7,506

2.8

3,906

(6.1)

(3,906)―88(1,488)

0.1
(2.3)

0
1,734

216
3,120

0.1
1.2

―

8

0.0―

60

0.1

67

329
―

0.4

―
2,438

Consolidated–40.7

0.1(6)―(3.8)

329(2,438)

4,160
―

1.5

Consolidated Statements of Change in Net Assets
For the first half of FY2007 (April 1, 2006 to September 30, 2006)(Millions of yen)
Shareholders’ equity

Balance—March 31, 2006

Common stock

Additional
paid-in capital

19,83825,326

Retainedearnings
112,973

Treasury stock,at costTotal
shareholders’equity(10,823)

147,315

Changes during the period:
Dividends from retained
earnings (Note)
Bonus for directors andstatutory auditors (Note)
Net income(2,022)(2,022)

(42)

(42)

329

329

Purchase of treasury stock(1,313)(1,313)120

Sales of treasury stock
Total changes during the period―0(1,735)(1,311)(3,046)

Balance—September 30, 2006

19,83825,327111,237(12,135)

144,268(Millions of yen)
Valuation and translation adjustments

Balance—March 31, 2006

Net unrealized
gains onsecurities

Total valuationand translation
adjustments

36,37436,374

Minority
interests

1,724

Total
net assets

185,414

Changes during the period:
Dividends from retained
earnings (Note)
Bonus for directors andstatutory auditors (Note)(2,022)(42)329

Net income(1,313)

Purchase of treasury stock

2

Sales of treasury stock
Changes in items other thanshareholders’ equity during
the period, net(3,475)(3,475)(117)(3,593)

Total changes during the period(3,475)(3,475)(117)(6,639)Balance—September 30, 2006

32,89832,898

1,607

178,774

Note: Appropriation of retained earnings which was approved by the general meeting of shareholders held in June 2006.

Consolidated–5

Consolidated Statements of Cash Flows

Item

First half ofFY2007First half ofFY2006

April 1, 2006 to
September 30, 2006April 1, 2005 to
September 30, 2005

Millions of yen

Millions of yen

ChangeIncrease(Decrease)

April 1, 2005 to
March 31, 2006

Millions of yen

Millions of yen

FY2006

Cash flows from operating activities:
Income (loss) before income taxes and minority
interests

602(3,906)

4,509

7,506

Depreciation

340

263

77558

Amortization of negative goodwill

(13)

―

(13)

―

Amortization of consolidation differences

―

(14)

14

(14)

Decrease in allowance for doubtful accounts(2,041)(2,007)

(34)

(513)

Decrease in accrued severance indemnities

(930)

(357)

(573)(624)

Increase in allowance for construction loss

957

2,082

(1,124)

1,944

Dividends and interest income(867)(1,269)401(1,641)

99

149

(49)

269

Gain on sales of property and equipment

(756)

(418)

(338)

(1,386)

Loss on deduction of carrying amounts ofproperty and equipment

―

―

―

411

(206)

(20)

(185)

(140)

Gain on redemption of investments in securities

―

―

―

(825)

Devaluation of securities

177

104

73

12

51,22031,966

19,253(16,864)(23,179)(44,230)

21,051

8,511

(120)

(185)

65

1,136

Decrease in trade notes and accounts payable(23,039)(19,811)(3,227)(12,424)

Increase (decrease) in advances received on
uncompleted contracts

6,802

31,566(24,763)(6,949)

Increase (decrease) in accrued consumption taxes(1,632)

(720)

(912)

912

Increase in uncollected consumption taxes(460)(1,940)1,479―

Bonus paid to directors and statutory auditors

(42)

(42)

0(42)

(1,966)(5,224)

3,257

213

4,945

(14,018)

18,963(19,950)Dividends and interest received

896

1,241(344)1,763Interest paid

(100)

(148)

48(264)

Income taxes paid

(205)

(330)

124

(160)

5,536

(13,255)

18,791(18,612)Interest expenses

Gain on sales of securities

Decrease (increase) in trade notes and accounts
receivable
Decrease (increase) in accumulated costs ofuncompleted contracts
Decrease (increase) in other inventories

Other, net
Subtotal

Net cash provided by (used in) operating
activities

Consolidated–6

ItemFirst half ofFY2007First half ofFY2006

April 1, 2006 to
September 30, 2006

April 1, 2005 to
September 30, 2005

Millions of yen

Millions of yen

ChangeFY2006

Increase(Decrease)

April 1, 2005 to
March 31, 2006

Millions of yen

Millions of yen

Cash flows from investing activities:
Net (increase) decrease in time deposits(2,967)

13,034(16,001)

13,204(4,090)(4,586)495(8,907)

3,362

6,462

(3,100)18,144

(842)

(385)

(456)

(799)

948

728

220

1,672

Issuance of loans receivable―(1,480)1,480(1,517)

Collection of loans receivable

105

71

34

176

Other, net

625

625

(0)

1,243

(2,857)

14,470(17,328)

23,215Net decrease in short-term borrowings

(42)

(363)

321

(1,428)Proceeds from long-term debt―

37(37)

67

Repayments of long-term debt

(61)

(44)

(17)

(74)

(1,313)(1,428)115(1,468)21

14(2,013)(1,830)(182)(1,840)

Dividends paid to minority shareholders

(8)

―

(8)

―

Net cash used in financing activities(3,437)(3,628)190(4,740)Effect of exchange rate changes on cash andcash equivalents

(13)

(7)

(5)

40

Net decrease in cash and cash equivalents(771)(2,420)

1,648

(95)

Cash and cash equivalents at beginning ofperiod

46,084

46,180(95)

46,180Cash and cash equivalents at end of period

45,312

43,7601,552

46,084

Payments for purchases of marketable securities
and investments in securities
Proceeds from sales of marketable securities
and investments in securities
Payments for purchases of tangible and intangible
fixed assets
Proceeds from sales of tangible and intangible
fixed assets

Net cash provided by (used in) investing
activities

Cash flows from financing activities:

Payments for purchases of treasury stock
Proceeds from sales of treasury stock
Dividends paid

Consolidated–7