Okumura Corporation
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295

Okumura Corporation

http://www.okumuragumi.co.jp

Annual Report 2011

Printed in Japan

Okumura was established in 1907 based on two key principles
enshrined in the corporate mottos “steadfast management”
and “sincere operation.” The steady growth achieved over theyears has been made possible through the unflagging supportof our customers.
Okumura’s main business activities include construction projects for houses, public facilities, medical facilities, andoffice buildings. In the area of civil engineering are projects
such as railways, roads, power station facilities, sewage andwater works, and others. The Company has developed technology at the highest level, with achievements including theseismic isolation system used to construct Japan’s first earthquake-absorbing building. In the area of environment-related
technology, Okumura has developed techniques for 100%
recycling of demolished concrete, and natural greening of
concrete surfaces on buildings.
Okumura understands what an important mission it isto provide a better environment for the future. Accordingly,
the Company is dedicated to contributing to meaningfulsocial infrastructure investment and to always being a corporation regarded highly by society. It will achieve this by continuing to develop as an all-around construction company
based on steadfast business management.

Contents
1 Financial Highlights
2 To Our Shareholders
4 Review of Operations
6 Topics
8 Consolidated Balance Sheets
10 Consolidated Statements of Income
11 Consolidated Statement of Comprehensive Income
12 Consolidated Statements of Changes in Equity
13 Consolidated Statements of Cash Flows
14 Notes to the Consolidated Financial Statements
30 Independent Auditors’ Report
31 Non-Consolidated Balance Sheets
33 Non-Consolidated Statements of Income
34 Breakdown of Orders (Non-Consolidated)
35 Network
36 Board of Directors / Investor Information

Financial Highlights
Okumura Corporation Annual Report 2011

For the years ended March 31

2009

2010

Consolidated:

2011

2011
Thousands of
U.S. dollars

Millions of yen

Net sales
Operating income
Net income (loss)
Total assets
Total equity¥226,974
4,399(3,406)
293,677
115,155¥198,494
864
652
241,759
115,469

Per Share:$2,316,501¥192,617
3,380
3,605
229,771
114,387

40,65343,354
2,763,335
1,375,671

Yen

Basic net income (loss)¥(17.03)¥3.26

U.S. dollars$0.22¥18.04

1
Non-Consolidated:Thousands of
U.S. dollars

Millions of yen

Net sales
Operating income
Net income (loss)
Total assets
Total equity¥220,760
4,310(3,800)288,492
113,034¥199,562
1,461
649
236,533
113,319

Per Share:$2,260,607¥187,969
3,183
3,594
224,903112,187

38,284
43,2182,704,785
1,349,215

Yen

Basic net income (loss)¥(19.00)¥3.24

U.S. dollars$0.22¥17.98

Note:	The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yenat the approximate exchange rate in Tokyo on March 31, 2011, of ¥83=U.S.$1.

Net Sales

Net Income(Millions of Yen)

250,000

Total Equity(Millions of Yen)

(Millions of Yen)
120,000

4,000
3,000

100,000

200,000
2,000

80,0001,000

150,000

60,0000100,000-1,00040,000-2,00050,00020,000-3,0000-4,000

0

2009

2010

2011

Non-Consolidated
Consolidated

2009

2010

Non-Consolidated
Consolidated

2011

2009

2010

2011

Non-Consolidated
Consolidated

Disclaimer Regarding Forecasts and Projections
This Annual Report includes forecasts, projections and other predictive statements that represent Okumura’s assumptions and expectations in light of currently available information. These forecasts, etc., are based on industry trends, circumstances involving clients and other factors, and involve risks, variables and uncertainties.
The Okumura Group’s actual performance results may differ from those projected in this Annual Report. Consequently, no guarantee is presented or implied as tothe accuracy of specific forecasts, projections or predictive statements contained herein.

To Our Shareholders

2

We would like to thank our shareholders for their continuing support and encouragement, and we wish each ofthem the greatest success in their own range of endeavors.
Our deepest sympathy goes out to all of our shareholders affected by the Great East Japan Earthquake.
A general overview of business performance for the period to March 2011 (April 1, 2010 to March 31,2011) is provided in the following sections.

Fiscal 2011 Results
During the period under review, the Japanese economy had been on track for gradual recovery as corporate
earnings picked up, but experienced downward pressure due to the further appreciation of the yen and theslowdown in exports. The construction industry was affected by this and found itself in an environment offierce competition stemming from the contraction of the market as reflected in dramatic cuts in public investment, while capital investment in the private sector remained low.
In these circumstances, the Company’s consolidated net sales fell 3.0% year on year, to ¥192,617 million, whereas consolidated gross profit increased 21.1%, to ¥19,277 million due to the improvement of profitability, as a result of which consolidated operating income soared 291.2%, to ¥3,380 million, a substantial
increase over the previous corresponding period. Consequently, the Company posted net income of ¥3,605
million, up 453.2% year on year, despite declaring an extraordinary loss in the amount of ¥701 million for
impairment losses on investment securities.
Although the business climate surrounding the Company is harsh, the Company decided to upholdits basic corporate policy regarding profit sharing and paid a regular dividend of ¥9.00 per share for the period
ended March 31, 2011.

Looking Ahead and Key Strategies
The Japanese economy is expected to be weak for the foreseeable future, due in part to the impact of theGreat East Japan Earthquake. Business performance in the construction industry is likely to be substantiallydependent on the timing of recovery of capital investment in the private sector, fluctuations in materials andequipment prices and other such factors.
In these circumstances, the Okumura Group is vigorously implementing various measures set forthin its Five-Year Medium-Term Business Plan formulated in fiscal 2008, and will remain committed to fulfillingOkumura Corporation Annual Report 20113

its targets, given that its efforts have been steadily yielding results as reflected in its profitability.
In construction operations, the Company’s top priority for the time being will be to secure a certain
volume of business while firmly maintaining its profitability-oriented approach, as competition to win orders
is becoming increasingly fierce in response to the contraction of the market and dramatic changes in the business environment. The Company intends to overcome these conflicting challenges by such means as enhancing its price competitiveness based on thoroughgoing cost reduction and improved precision of estimates,
proposing technologies and providing quality to the satisfaction of customers’ needs.
The real estate operations are making substantial contributions to the Company in securing stableprofit. The Company plans to acquire profit-earning real estate and engage in leasing activities by maximizing
the potential use of company-held properties in a careful but aggressive manner.
On the organizational front, the Company will continue to make improvements and exercise ingenuity in pursuit of even greater excellence, having arrived at its current form as a result of streamlining executive/
management structures suited to the business environment and improving operational efficiency, such asreforming the business divisions into a dual branch structure—East Japan and West Japan Branch at its core,and consolidating the headquarters into civil engineering, building, and administration.
For the future, Okumura will apply all of its resources with the aim of responding quickly and flexibly toshifting trends and the changing operating environment, and thereby build a strong business foundation inaccordance with its corporate philosophy, which has endured through the many years since the Company’s
foundation. This will enable Okumura to maintain the trust and confidence of its shareholders. Okumura will
also strive to assist in the Great East Japan Earthquake reconstruction efforts to fulfill its social responsibility.
In all its efforts, the Company looks forward to the continued support and patronage of its shareholders.
June 2011

Takanori Okumura
President and Representative Director

Review of Operations
Major Projects Completed
BUILDINGS

4
New Main Building of Asahi Chuo General
Hospital
Work period: December 2008 to March 2011
Structure: RC and steel (seismic isolation structure)
Total floor area: 55,865.94m2

Eco Clean Matsue
Work period: July 2008 to March 2011
Structure: SRC
Total floor area: 12,673m2

Saitama Governmental Joint Office of Legal
Affairs No.2

Tennoji Gakkan High School
Work period: November 2009 to August 2010
Structure: Steel
Total floor area: 3,418.81 m2

Work period: March 2009 to October 2010
Structure: RC
Total floor area: 8,843.61m2

CIVIL ENGINEERING

Nara Overpass in Omiya Region:
New BL Construction and one
other construction task
Work period: December 2004 to
October 2010
145 cast-in-place piles
7 elevated bridges
3 rigid-frame bridge substructures
8 RC slabs, etc.

Aburagimachi-Nishimachi City
Road Improvement WorkWork period: March 2008 to
February 2011
Road length: 230m
Road earthwork(drilling: 22,000m3, filling: 55,000m3)
Complete set of slope protection work,
revetment work,
culvert construction,
drainage structure construction, etc.

Hokuriku Shinkansen:
Elevated Bridge at Nakatsuka,
Namerikawa City
Work period: October 2007 to
October 2010
Bridge length: 1,336m
22 bridge columns
29 RC T-beams
16 rigid-frame elevated bridges

Landslide Prevention Work in
the Sako area
Work period: August 2008 to
March 2011
Drilling/boulders and bounding stone
Treatment: 8,410m3
Counterweight fill: 118,000m3
123 restraint anchors, etc.

Okumura Corporation Annual Report 2011

Orders Received
BUILDINGS

5
Kotoni 4-2 Region: Category I
Urban Redevelopment Project

Shokei Gakuen’s Kuhonji
CampusWork period: May 2011 to
October 2013
Structure: RC and steel
Total floor area: 44,734m2

Work period: January 2011 toMarch 2013
Structure: RC and steel
Total floor area: 16,843.05m2

Yamabiko Medical Welfare Centerfor Children with Severe Motor &Intellectual Disabilities
Work period: November 2010 toMarch 2013
Structure: RC
Total floor area: 9,000.1m2

Tokyo Metropolitan Art SpaceWork period: February 2011 toJune 2012
Renovation
Structure: SRC and steel
Total floor area: 51,298.9m2

CIVIL ENGINEERING

Higashi-Kyushu Expressway:
No.2 Iitani Tunnel Construction
Work
Work period: July 2010 to
December 2012
Length: 1,601m
Two tunnels: 1,079m
2 bridge substructures

Kakogawa Chuo Junction Ramp
Improvement Work

Saitama City: New Clean Center
Development ProjectWork period: January 2011 to
February 2013
Construction length: 1,180m
7 reverse T-shaped retaining walls
8 overhang bridge columns
64 cast-in-place piles

Work period: June 2010 to March 2015
Vertical impervious wall construction(bentonite cut-off wall construction:
9,310m2)
Capping work (internal cut-and-fillearthwork: 7,700m3
Breathable/impermeable sheets:
22,200m2)

Removal of Soil Contamination,etc. at Former Site of Policy
Research Institute of the
Ministry of Agriculture, Forestry
and Fisheries: Phase II WorkWork period: August 2010 toAugust 2011
Soil contamination removal work, etc.
(target soil volume: 13,316m3)

Topics❷ Circular steel sheet piling

SensorSensorControl computer
SensorVariable damper❶ Conceptual diagram❶ Variable damper installed

Vertical shaft for injection❷ Construction site (aerial view)

Vertical shaft for injection

Electrodes

14m

6

Area subject tofoundation improvement plan

Rate of change in
specific resistance before/
after injection (%)

55m–4–6 Reference value
–8
–10
–12
–14

❸ Distribution of rate of change in specific resistance at time of completion offoundation improvement (two-dimensional diagram)❶ Development of Technology to Curb Shaking of Seismically Isolated Buildings
according to Seismic Wave Characteristics

The Company has developed a system that can automaticallycontrol shaking of seismically isolated buildings in the event of anearthquake by detecting any shake with a sensor installed in suchbuildings.
This system helps improve safety as it can curb shakingof buildings by flexibly operating the seismic isolation device
according to the seismic wave characteristics.
❷ Development of Small-diameter Circular Steel Sheet Pile Vertical Shaft
Construction Method

resistivity tomography (a type of electrical prospecting technology
for investigating the internal properties of the target area by using
electrical resistance). The Company has applied this technology toactual construction work.
This survey technology makes it possible to confirm
the status of the improved foundations as a plane by putting
electrodes into the ground at multiple locations around the area
where foundation improvement work has been performed. The
Company will promote the application of this technology inthe future as a quality control method for the improvement offoundations directly beneath structures where it is difficult toperform boring surveys, etc.
❹ Hosting of a Technical Seminar

The Company has developed a method of constructing circularvertical shafts with a small diameter for shield tunneling, etc. at low
cost by using generic steel sheet piles as earth retaining materials.
Steel sheet piles are not intrinsically suitable for installation along
curved surfaces due to the performance limitations of hydraulicpile drivers. By developing a special attachment for hydraulic piledrivers, the Company has made it possible to install steel sheet
piles in circular vertical shafts with a small diameter (smaller thanthe minimum diameter of 8m utilized in conventional construction
methods). The new construction method will be applied to theCompany’s future construction projects step by step in an effort to
reduce costs.
❸ Establishment of Survey Technology for Areas with Improved Foundations by
Resistivity Tomography

The Company has established a survey technology that makes it
possible to confirm, with high precision, the finish of areas where
foundation improvement work has been performed by applying

On December 2, 2010, Okumura hosted the 22nd TechnicalSeminar at the Tokyo International Forum in Tokyo’s Chiyoda Ward.
The seminar was attended by approximately 200 participants,
such as government agencies and clients of Okumura from theprivate sector.
Okumura began hosting the seminar in 1988 as part ofthe collaboration among industrial, governmental and academic
sectors related to the construction industry. Under the theme“For Accelerated Social Infrastructure Development”, this year’s
Seminar was jointly hosted with the Global Center of Excellence
for Sustainable Urban Regeneration—one of the centers of the
University of Tokyo Global COE Program*. Tomonari Yashiro,
Director General of the Institute of Industrial Science (IIS), theUniversity of Tokyo, and Koichi Maekawa, Professor of School ofEngineering, the University of Tokyo, delivered a keynote speech.
In addition, a panel discussion was held on topics including theconstruction of systems and technological innovations to realize“the acceleration of construction projects”.

Okumura Corporation Annual Report 2011

❹ Inside the seminar hall

7

❹ Panel discussion❻ Award ceremony* Global COE Program: A funding support project of Japan’s Ministry of
Education, Culture, Sports, Science and Technology (MEXT) aimed at
intensively assisting the development of internationally outstanding
education and research centers and promoting the establishment ofinternationally-competitive universities for the purpose of further enhancing
and strengthening the education and research functions of graduate schools
in Japan and fostering highly creative young researchers who will go on to
become world leaders in their respective fields.
❺ Recipients of the Okumura Environmental Construction Technology Foundation Grant for the Fiscal Year Ended March 31, 2011 Are Announced

In 2007, the Company established a charitable trust fund, theOkumura Environmental Construction Technology Foundation
Grant, whose objective is to further promote the preservationand improvement of Japan’s environment by providing funds
to various research projects on construction technologies that
reduce the environmental load.
The steering committee—comprising experts such asuniversity professors—met on July 8, 2010 to select the recipientsand determine the amount of the grant awarded for the fiscal year
ended March 31, 2011. The foundation has ensured that all thosechosen for the fiscal year have received the grant.
Research themes of the recipients are as follows:• Empirical research on autonomous renovation of old residential
estates in consideration of resources recycling• High-precision discrimination analysis of ligneous waste basedon visible/near-infrared hyper spectral imaging technology• Proposal of building life cycle design techniques• Proposal and development of wooden building construction
methods with high reusability and recyclability, fulfilling both
environmental performance and seismic safety• Impact of flood-control dams on benthic invertebrate
community structures❻ View of tunnel❻ Okumura’s Work in Taoyuan International Airport Access MRT System Construction Project (Tender CU02A) Wins Taiwan’s Highest Honor for Public Works:
Award for Excellence of Golden Quality Awards

Okumura’s Work in Taoyuan International Airport Access MRT
System construction project (Tender CU02A), executed jointlywith Taiwanese construction firm RSEA Engineering Corporation,
has won the Award for Excellence in Civil Engineering of the 10th
Golden Quality Awards for public works.
The Award, which is granted by the Public Construction
Commission, Executive Yuan of Taiwan, is regarded as the highest
honor of public works in Taiwan.
Our work involved constructing a subway tunnel running
immediately beneath Taoyuan International Airport, constituting
part of the railway construction project to connect Taipei Station,
Taoyuan International Airport and Taiwan High Speed Rail (THSR)
Taoyuan Station. Under harsh conditions including tackling layersof earth consisting of boulders exceeding 1m in diameter, ourwork was unprecedented in that 8 tunnel boring machines were
utilized. In the screening process for the Award, our work was
rated as having contributed to the progress of Taiwan’s shieldtunneling technology and paved the way for the constructionindustry’s future.

Consolidated Balance Sheets
Okumura Corporation and Consolidated Subsidiaries
As of March 31, 2011 and 2010

Millions of yen

Thousands of
U.S. dollars(Note 1)

2011

2010

2011

¥ 34,721¥ 27,831$ 417,569

232

468

2,792

1

56

16

Trade notes (Note 12)

2,320

6,305

27,907

Trade accounts (Note 12)80,03756,744

962,557

ASSETS

Current assets:
Cash and cash equivalents (Note 12)
Time deposits (Notes 12 and 13)
Marketable securities (Notes 3 and 12)

8

Receivables:

Unconsolidated subsidiaries and associated companies (Note 12)

2,257

157

27,148

Other

8,179

10,80398,361

Allowance for doubtful receivables
Inventories (Note 4)(3,482)(3,802)(41,874)

40,03373,739481,450

Prepaid expenses and other

454

639

5,456

Total current assets

164,752

172,940

1,981,382

Property, plant and equipment (Notes 5 and 6):
Land (Note 13)

17,966

16,680216,066

Buildings and structures

17,331

16,161

208,436

Machinery and equipment

3,323

3,355

39,961

Furniture and fixtures

2,109

2,160

25,362

Lease assets (Note 11)

41

27

491

19

40

234

40,78938,423

490,550(14,841)(14,285)(178,486)

25,94824,138312,064

Investment securities (Notes 3, 12 and 13)

37,44842,496450,366

Investments in and advances to unconsolidated subsidiaries and associated companies (Note 12)

1,001

1,138

12,042

339

450

4,080

Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

Investments and other assets:Long-term loans receivable (Note 12)
Other assets

4,534

4,049

54,523

Allowance for doubtful receivables(4,251)(3,452)(51,122)

Total investments and other assets
Total
See notes to consolidated financial statements.

39,071

44,681

469,889¥229,771¥241,759$2,763,335

Okumura Corporation Annual Report 2011

Millions of yen

Thousands of
U.S. dollars(Note 1)

2011

2010

2011

Short-term bank loans including current portion of long-term debt (Notes 6, 11 and 12) ¥ 11,299¥ 10,319$ 135,889

LIABILITIES AND EQUITYCurrent liabilities:
Payables:Trade notes (Note 12)

6,258

4,843

75,259Trade accounts (Note 12)40,54635,302487,623

174

195

2,091

25,92840,796

311,828

205

248

2,468

Other
Advances received on construction projects in progress
Income taxes payable

347

408

4,179

Allowance for losses on construction contracts

4,272

5,752

51,372Other (Note 13)

14,512

13,615

174,524

103,541

111,478

1,245,233

Long-term debt (Notes 6, 11 and 12)

204

247

2,452

Liability for retirement benefits (Note 7)

4,683

5,785

56,325

Deferred tax liabilities (Note 9)

6,242

7,806

75,071

567

851

6,821

Allowance for warranty work on construction projects

Total current liabilities
Long-term liabilities:

Negative goodwill

147

123

1,762

Total long-term liabilities

11,843

14,812

142,431

Total liabilities

115,384

126,290

1,387,664

Other

Commitments and contingent liabilities (Notes 11 and 13)

Equity (Notes 8, 14 and 15):
Common stock
19,83919,839238,592

Capital surplus

25,32725,327

304,592

Retained earnings

74,006

72,200890,037(12,348)(12,332)(148,507)

7,563

10,43590,957

7,563

10,43590,957authorized, 480,376,000 shares; issued, 228,326,133 shares

Treasury stock—at cost
28,549,412 shares in 2011 and 28,496,086 shares in 2010
Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Total
Total equity

114,387

115,469

1,375,671

Total¥229,771¥241,759$2,763,335

9

Consolidated Statements of Income
Okumura Corporation and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2010

Millions of yen

Thousands of
U.S. dollars(Note 1)

2011

2010

2011

¥192,617
173,340
19,277¥198,494
182,582
15,912$2,316,501
2,084,670
231,831

15,8973,380

15,048864

191,178
40,653

Other income (expenses):
Interest and dividend income
Interest expense
Amortization of negative goodwill
Impairment losses on investment securities
Provision of allowance for doubtful accounts
Loss on fire accident
Other—net
Other income (expenses)—net

951
(193)
284
(701)
—
—
(1)
340

956
(197)
284
(168)
(1,022)(1,353)
1,384
(116)

11,441(2,320)3,410(8,436)
—
—
(14)
4,081

Income before income taxes and minority interests

3,720

748

44,734

138
(23)
115

137
(41)
96

1,660
(280)
1,380

3,605
3,605

652
¥ 652

Net sales
Cost of sales
Gross profit

10

Selling, general and administrative expenses (Note 10)
Operating income

Income taxes (Note 9):
Current
Deferred
Total income taxes
Net income before minority interests
Net income
Per share of common stock (Notes 2.n and 14):
Basic net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

¥¥ 18.04
9.00$

43,35443,354

Yen

U.S. dollars(Note 1)

¥ 3.269.00$ 0.22
0.11

Consolidated Statement of Comprehensive Income
Okumura Corporation and Consolidated Subsidiaries
For the year ended March 31, 2011

Net income before minority interests
Other comprehensive income (Note 14):
Unrealized loss on available-for-sale securities
Total other comprehensive income
Comprehensive income (Note 14)
Total comprehensive income attributable to (Note 14):
Owners of the parent
Minority interests
See notes to consolidated financial statements.

Okumura Corporation Annual Report 2011

Millions of yen

Thousands of
U.S. dollars(Note 1)

2011

2011

¥3,605$43,354(2,872)(2,872)
733(34,534)(34,534)
8,820

¥ 733
—

$ 8,820—

11

Consolidated Statements of Changes in Equity
Okumura Corporation and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2010

Thousands

Millions of yen
Accumulated othercomprehensive income

12

BALANCE, MARCH 31, 2009
Net income
Cash dividends, ¥9 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2010
Net income
Cash dividends, ¥9 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2011

Outstanding
number ofshares ofcommonstock

Commonstock

CapitalsurplusRetainedearnings

199,875
—
—
(50)
5
—
199,830
—
—
(56)
3
—
199,777¥19,839—————¥19,839—————¥19,839¥25,327———(0)—¥25,327———(0)—¥25,327¥73,347652(1,799)———¥72,200
3,605(1,799)———¥74,006

Treasurystock

Unrealized
gain onavailable
for-salesecurities

Total
equity¥(12,317)
—
—
(18)
3
—
¥(12,332)
—
—
(17)
1
—
¥(12,348)¥ 8,959
—
—
—
—
1,476
¥10,435————(2,872)¥ 7,563¥115,155652(1,799)
(18)
3
1,476
¥115,469
3,605(1,799)(17)
1(2,872)¥114,387

Thousands of U.S. dollars (Note 1)
Accumulated othercomprehensive income

BALANCE, MARCH 31, 2010
Net income
Cash dividends, $0.11 per share
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2011
See notes to consolidated financial statements.

Commonstock

CapitalsurplusRetainedearnings

Treasurystock

Unrealized
gain onavailable
for-salesecurities$238,592—————$238,592$304,597
—
—
—
(5)
—
$304,592$868,312
43,354(21,629)———$890,037$(148,313)
—
—
(210)
16
—
$(148,507)$125,491————(34,534)$ 90,957

Total
equity$1,388,679
43,354(21,629)(210)
11(34,534)$1,375,671

Consolidated Statements of Cash Flows
Okumura Corporation and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2010

Okumura Corporation Annual Report 2011

Millions of yen

Thousands of
U.S. dollars(Note 1)

2010

2011

748

$ 44,734

(111)
975
(284)
1,468
701
—

(41)
956
(284)
1,528
228
1,353

(1,333)
11,731(3,410)17,651
8,436—(23,642)
30,504
3,051
7,365(14,868)(1,101)
718
4,776
8,496

(853)
44,338(3,447)(29,976)(19,973)
146
261(5,764)(5,016)(284,330)
366,855
36,68988,574(178,808)(13,244)8,626
57,437102,171

Cash flows from investing activities:
Net decrease in time deposits
Payments for purchases of securities
Proceeds from sales of securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Investment in loans receivableCollection of loans receivable
Other—net
Net cash provided by (used in) investing activities

236
(113)
152
(2,398)
1
(204)
1,563
29
(734)

1,540
(98)
1,694
(911)
999
(504)
296
108
3,124

2,831
(1,358)
1,827(28,836)
16(2,449)18,796349(8,824)

Cash flows from financing activities:
Increase in short-term bank loans—net
Repayments of long-term debt
Purchase of treasury stock
Disposal of treasury stock
Dividends paid
Other
Net cash used in financing activities

1,063
(50)
(17)
1
(1,798)
(8)
(809)

775
(33)
(18)
2
(1,800)(4)(1,078)

12,791
(603)
(210)
11
(21,627)(92)(9,730)(63)
6,890
27,831¥34,721(10)(2,980)30,811¥27,831(760)
82,857334,712$417,569

2011

Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of negative goodwill
Provision for doubtful receivables
Impairment losses on marketable and investment securities
Loss on fire accident
Changes in assets and liabilities:
Increase in trade notes and accounts receivable
Decrease in accumulated costs of construction projects in progress
Decrease (increase) in other inventories
Increase (decrease) in trade notes and accounts payable
Decrease in advances received on construction projects in progress
Increase (decrease) in liability for retirement benefits
Other—net
Total adjustments
Net cash provided by (used in) operating activities

Foreign currency translation adjustments on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
See notes to consolidated financial statements.

¥ 3,720¥13

Notes to the Consolidated Financial Statements
Okumura Corporation and Consolidated Subsidiaries
Years ended March 31, 2011 and 201014

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements havebeen prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Act and its
related accounting regulations and in conformity withaccounting principles generally accepted in Japan (”Japanese
GAAP”), which are different in certain respects as to application and disclosure requirements of International Financial
Reporting Standards.
Under Japanese GAAP, a consolidated statement ofcomprehensive income is required from the fiscal year ended
March 31, 2011 and has been presented herein. Accordingly,
accumulated other comprehensive income is presented in the
consolidated balance sheet and the consolidated statementof changes in equity. Information with respect to other comprehensive income for the year ended March 31, 2010 is disclosed in Note 14. In addition, ”net income before minority
interests” is disclosed in the consolidated statement ofincome from the year ended March 31, 2011.
In preparing these consolidated financial statements,
certain reclassifications and rearrangements have been madeto the consolidated financial statements issued domesticallyin order to present them in a form which is more familiar toreaders outside Japan. In addition, certain reclassifications
have been made in the 2010 financial statements to conformto the classifications used in 2011.
The consolidated financial statements are stated inJapanese yen, the currency of the country in which Okumura
Corporation (the ”Company”) is incorporated and operates.
The translations of Japanese yen amounts into U.S. dollar
amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥83 to $1,
the approximate rate of exchange at March 31, 2011. Suchtranslations should not be construed as representations that
the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
2. Summary of Significant Accounting Policies
a. Consolidation — The consolidated financial statements
as of March 31, 2011 and 2010 include the accounts of theCompany and its 2 significant subsidiaries (together, the”Group”).
Under the control or influence concept, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated, andthose companies over which the Group has the ability to
exercise significant influence are accounted for by the equity
method.
Investments in 7 (7 in 2010) unconsolidated subsidiaries
and one associated company (2 in 2010) are stated at cost. If
the equity method of accounting had been applied to theinvestments in these companies, the effect on the accompanying consolidated financial statements would not be material.

The differences between the cost of investments andthe fair value of net assets of consolidated subsidiaries andassociated companies at the date of acquisition are amortized on a straight-line basis over 5 years.
All significant intercompany balances and transactions
have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within
the Group is eliminated.
b. Cash Equivalents — Cash equivalents are short-term
investments that are readily convertible into cash and that are
exposed to insignificant risk of changes in value.
Cash equivalents include time deposits and certificate ofdeposits, all of which mature or become due within 3months of the date of acquisition.
c. Inventories — Construction projects in progress are stated at cost determined by the specific identification method.
Real estate held for sale and development projects inprogress are stated at the lower of cost determined by specific identification method or net selling value, which is definedas the selling price less additional estimated manufacturingcosts and estimated direct selling expenses.
d. Marketable and Investment Securities — Marketable
and investment securities are classified and accounted for,depending on management’s intent, as follows:(1) held-to-maturity debt securities, which are expected to beheld to maturity with the positive intent and ability to hold tomaturity, are reported at amortized cost and (2) available-forsale securities, which are not classified as held-to-maturity,
are reported at fair value, with unrealized gains and losses,
net of applicable taxes, reported in a separate component ofequity.
Non-marketable available-for-sale securities are statedat cost determined by the moving-average method. For otherthan temporary declines in fair value, investment securities
are reduced to net realizable value by a charge to income.
Equities of limited liability partnerships for investment
purpose and of other similar partnerships (defined as ”securities” by Section 2 of Article 2 of the Financial Instruments
and Exchange Act) are valued at the equivalent net equity
based on the recently available financial statements of thepartnerships corresponding to the reporting dates of thefinancial statements defined by the partnership agreements.
e. Property, Plant and Equipment — Property, plant andequipment are stated at cost. Depreciation is computed by
the declining-balance method based on the estimated useful
lives of the assets, while the straight-line method is applied tobuildings acquired after April 1, 1998 and lease assets. The
range of useful lives is principally from 3 to 60 years forbuildings and structures, from 4 to 17 years for machineryand equipment, and from 2 to 20 years for furniture and fixtures. The useful lives for lease assets are the terms of therespective leases.

Okumura Corporation Annual Report 2011

f. Long-lived assets — The Group reviews its long-lived
assets for impairment whenever events or changes in circumstance indicate the carrying amount of an asset or asset
group may not be recoverable. An impairment loss would berecognized if the carrying amount of an asset or asset groupexceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss
would be measured as the amount by which the carrying
amount of the asset exceeds its recoverable amount, which is
the higher of the discounted cash flows from the continued
use and eventual disposition of the asset or the net selling
price at disposition.
g. Allowance for Doubtful Receivables — The allowancefor doubtful receivables is stated in amounts considered to beappropriate based on the Group’s past credit loss experienceand an evaluation of estimated losses in the receivables outstanding.
h. Allowance for Warranty Work on Construction
Projects — The allowance for warranty costs for completed
work is provided at the amount of warranty costs based on
past rate expenses.
i. Allowance for Losses on Construction Contracts —Allowance for losses on construction contracts is provided
with respect to construction projects for which eventual losses are reasonably expected and estimated.
j. Employees’ Retirement Benefits — The Company has acontributory funded pension plan covering substantially all of
their employees.
Liability for retirement benefits for employees is recorded based on the estimated present value of projected benefit
obligations and the fair value of the plan assets at the end of
the fiscal year.
The unrecognized transition amount which arose fromadopting the new standard during the year ended March 31,
2001 has been amortized on a straight-line basis over 15
years, and unrecognized actuarial differences are amortized
subsequent to the year in which they arise on a straight-line
basis over the period of 10 years which is within the employees’ average remaining service years. Unrecognized prior service costs have been amortized on straight-line over theperiod of 10 years which is within the employees’ averageremaining service years.
k. Asset Retirement Obligations — In March 2008, the
Accounting Standards Board of Japan (the ”ASBJ”) published
the accounting standard for asset retirement obligations,
ASBJ Statement No.18 ”Accounting Standard for Asset
Retirement Obligations” and ASBJ Guidance No.21”Guidance on Accounting Standard for Asset Retirement
Obligations”. Under this accounting standard, an asset retirement obligation is defined as a legal obligation imposed
either by law or contract that results from the acquisition,

construction, development and the normal operation of atangible fixed asset and is associated with the retirement ofsuch tangible fixed asset. The asset retirement obligation isrecognized as the sum of the discounted cash flows required
for the future asset retirement and is recorded in the period
in which the obligation is incurred if a reasonable estimate
can be made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement
obligation is incurred, the liability should be recognized whena reasonable estimate of asset retirement obligation can be
made. Upon initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized byincreasing the carrying amount of the related fixed asset by
the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over theremaining useful life of the asset. Over time, the liability is
accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original estimateof undiscounted cash flows are reflected as an increase or adecrease in the carrying amount of the liability and the capitalized amount of the related asset retirement cost. This standard was effective for fiscal years beginning on or after April
1, 2010.
The Group applied this accounting standard effective
April 1, 2010. The effect of this change was to decrease
operating income by ¥3 million ($37 thousand) and income
before income taxes and minority interests by ¥114 million($1,375 thousand).
l. Construction Contracts — The Company recognizes construction revenues and construction costs by the percentageof-completion method, if the outcome of a construction
contract can be estimated reliably. When total construction
revenue, total construction costs and the stage of completionof the contract at the balance sheet date can be reliably measured, the outcome of a construction contract can be estimated reliably. The percentage of completion is determinedusing the percentage of the cost incurred to the estimatedtotal cost.
Prior to April 1, 2009, the Company recognized construction revenues and construction costs for construction
contracts whose total contract amounts were more than ¥5billion ($60,132 thousand) and the construction period
exceeded two years under the percentage-of-completion
method and the remaining contracts under the completedcontract method.
However, in December 2007, the ASBJ issued ASBJ
Statement No.15 ”Accounting Standard for Construction
Contracts” and ASBJ Guidance No.18 ”Guidance on
Accounting Standard for Construction Contracts”. Under theprevious Japanese GAAP, either the completed-contract
method or the percentage-of-completion method was permitted to account for construction contracts. Under this new
accounting standard, the construction revenue and construction costs should be recognized by the percentage-of-com-

15

16

pletion method, if the outcome of a construction contract
can be estimated reliably. When total construction revenue,
total construction costs and the stage of completion of thecontract at the balance sheet date can be reliably measured,
the outcome of a construction contract can be estimated reliably. If the outcome of a construction contract cannot be reliably estimated, the completed-contract method should beapplied. This standard is applicable to construction contracts
and software development contracts and effective for fiscal
years beginning on or after April 1, 2009. The Company
applied the new accounting standard effective April 1, 2009.
The revenues recognized by the percentage-of-completion method for the years ended March 31,2011 and 2010
were ¥114,963 million ($1,382,592 thousand) and ¥43,052
million, respectively.
m. Leases — In March 2007, the ASBJ issued ASBJ Statement
No.13, ”Accounting Standard for Lease Transactions”, whichrevised the previous accounting standard for lease transactions issued in June 1993. The revised accounting standard
for lease transactions was effective for fiscal years beginningon or after April 1, 2008.
Under the previous accounting standard, finance leases
that were deemed to transfer ownership of the leased property to the lessee were capitalized. However, other financeleases were permitted to be accounted for as operating leasetransactions if certain ”as if capitalized” information was disclosed in the note to the lessee’s financial statements. The
revised accounting standard requires that all finance leasetransactions be capitalized to recognize lease assets and leaseobligations in the balance sheet.
In addition, the accounting standard permits leases
which existed at the transition date and do not transfer ownership of the leased property to the lessee to continue to beaccounted for as operating lease transactions.
The Group applied the revised accounting standard
effective April 1, 2008. In addition, the Group continues toaccount for leases which existed at the transition date and do
not transfer ownership of the leased property to the lessee as
operating lease transactions.
All other leases are accounted for as operating leases.
n. Income Taxes — The provision for income taxes is computed based on the pretax income included in the consolidated statements of income. The asset and liability approach isused to recognize deferred tax assets and liabilities for the
expected future tax consequences of temporary differences
between the carrying amounts and the tax bases of assets
and liabilities. Deferred taxes are measured by applying currently enacted tax laws to the temporary differences.
o. Per Share Information — Basic net income per share iscomputed by dividing net income available to commonshareholders by the weighted-average number of commonshares outstanding for the period, retroactively adjusted forstock splits.
Diluted net income per share is not disclosed because
there are no securities with dilutive effect upon exercise orconversion into common stock.
Cash dividends per share presented in the accompanying consolidated statements of income are dividends applicable to the respective years including dividends to be paid
after the end of the year.
p. New Accounting Pronouncements
Accounting Changes and Error Corrections — In December
2009, ASBJ issued ASBJ Statement No.24 ”AccountingStandard for Accounting Changes and Error Corrections” andASBJ Guidance No.24 ”Guidance on Accounting Standard for
Accounting Changes and Error Corrections”. Accounting
treatments under this standard and guidance are as follows:(1) Changes in Accounting Policies:
When a new accounting policy is applied with revision of
accounting standards, the new policy is applied retrospectively unless the revised accounting standards include specifictransitional provisions. When the revised accounting standards include specific transitional provisions, an entity shallcomply with the specific transitional provisions.
(2) Changes in Presentations:
When the presentation of financial statements is changed,
prior period financial statements are reclassified in accordance with the new presentation.
(3) Changes in Accounting Estimates:
A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only,
and is accounted for prospectively if the change affects boththe period of the change and future periods.
(4) Corrections of Prior Period Errors:
When an error in prior period financial statements is discovered, those statements are restated.
This accounting standard and the guidance are applicable to accounting changes and corrections of prior period
errors which are made from the beginning of the fiscal yearthat begins on or after April 1, 2011.

Okumura Corporation Annual Report 2011

3. Marketable and Investment Securities
Marketable and investment securities as of March 31, 2011 and 2010 consisted of the following:
Millions of yen

Thousands of
U.S. dollars

2010

2011

2011

Current:
Investments in limited liability partnerships and other
Total

¥
¥

Non-current:
Marketable equity securities
Trust fund investments and otherTotal¥34,989
2,459¥37,448

1
1

¥
¥

56
56

¥39,924
2,572¥42,496

$
$

16
16

$420,796
29,570$450,366

The costs and aggregate fair values of marketable and investment securities at March 31, 2011 and 2010 were as follows:
Millions of yen

March 31, 2011

Securities classified as:
Available-for-sale:
Equity securities
Debt securities

Cost

Unrealized
gains

Unrealized
lossesFair
value¥23,197
1,200¥12,4813¥ 689232¥34,989971¥23,786
1,200¥16,983
8¥ 845
171¥39,924
1,037

Cost

Unrealized
gains

Unrealized
lossesFairvalue$278,977
14,432$150,10433$8,2852,789$420,796
11,676

March 31, 2010

Securities classified as:
Available-for-sale:
Equity securities
Debt securities

Thousands of U.S. dollars

March 31, 2011

Securities classified as:
Available-for-sale:
Equity securities
Debt securities

17

The information for available-for-sale securities which were sold during the years ended March 31, 2011 and 2010 was asfollows:
Millions of yen

March 31, 2011
Available-for-sale:
Equity securities

Proceeds

Realized
gains

Realized
loss

¥

¥

¥

91

44

—

Millions of yen

18

March 31, 2010
Available-for-sale:
Equity securities

Proceeds

Realized
gains

Realizedloss¥  687¥  436¥

Proceeds

Realized
gains

Realized
loss$1,090$  527$

2

Thousands of U.S. dollars

March 31, 2011
Available-for-sale:
Equity securities—

The impairment losses on available-for-sale equity securities for the years ended March 31, 2011 and 2010 were ¥701 million($8,436 thousand) and ¥109 million, respectively.
4. Inventories
Inventories at March 31, 2011 and 2010 consisted of the following:
Millions of yen

Construction projects in progress
Real estate held for sale
Development projects in progress
Other
Total

Thousands of
U.S. dollars

2011

2010

2011

¥27,281
8,226
3,019
1,507
¥40,033¥57,785
10,017
4,552
1,385¥73,739$328,095
98,92536,304
18,126$481,450

Okumura Corporation Annual Report 2011

5. Investment Property
In November, 2008, the ASBJ issued ASBJ Statement No.20 ”Accounting Standard for Investment Property and Related
Disclosures” and issued ASBJ Guidance No.23 ”Guidance on Accounting Standard for Investment Property and Related
Disclosures”. This accounting standard and the guidance were applicable to investment property and related disclosures at theend of the fiscal years ending on or after March 31, 2010. The Group applied the accounting standard and guidance effective
March 31, 2010.
The Group owns certain rental properties such as office buildings, warehouses, and land in Osaka and other areas. Somerental warehouse, part of which the Company uses, are classified as rental properties in part.
The net of rental income and operating expenses for those rental properties was ¥2,162 million ($26,000 thousand) and¥2,130 million for the fiscal years ended March 31, 2011 and 2010, respectively.
The carrying amounts, changes in such balances and market prices of such properties are as follows:
Millions of yen
Fair value

Carrying amountRental properties
Rental properties in part
Total

April 1,
2010

Increase/
Decrease

March 31,2011

March 31,2011

¥14,400
1,537¥15,937¥2,187(55)¥2,132¥16,587
1,482¥18,069¥34,102
9,357¥43,459
Millions of yen
Fair value

Carrying amountRental properties
Rental properties in part
Total

April 1,
2009

Increase/
Decrease

March 31,2010

March 31,2010

¥14,013
1,597¥15,610

¥387
(60)
¥327

¥14,400
1,537¥15,937¥31,867
9,767¥41,634
Thousands of U.S. dollars
Fair value

Carrying amountRental properties
Rental properties in part
Total

April 1,
2010

Increase/
Decrease

March 31,2011

March 31,2011

$173,183
18,479$191,662$26,299(661)$25,638$199,482
17,818$217,300$410,125
112,537$522,662

Notes:(1) Carrying amount recognized in the balance sheet is net of accumulated depreciation and accumulated impairment losses, ifany.
(2) Fair value of properties as of March 31, 2011 and 2010 are measured by the Group in accordance with its Real-estateAppraisal Standard.
6. Short-term Bank Loans and Long-term Debt
Short-term bank loans at March 31, 2011 and 2010 consisted of notes to banks and bank overdrafts. The annual interest rates
applicable to the short-term bank loans were 1.475% and ranged from 1.475% to 2.000% at March 31, 2011 and 2010,
respectively.
Long-term debt at March 31, 2011 and 2010 consisted of the following:

Loans from banks and other financial institutions, due serially to 2031
with interest rates ranging from 1.33% to 5.70%
Collateralized
Unsecured
Obligations under finance leases
Total
Less current portionLong-term debt, less current portion

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥ 44
156
31
231
(27)
¥204

¥ 57
193
24
274
(27)
¥247

$ 533
1,875
368
2,776
(324)
$2,45219

Annual maturities of long-term debt, excluding finance leases (See Note 11) at March 31, 2011, were as follows:

20

Year Ending March 31

Millions of yen

Thousands of
U.S. dollars

2012
2013
2014
2015
2016
2017 and thereafter
Total

¥ 18
18
18
18
17
111
¥200

$ 219
218
216
215
207
1,333
$2,408The carrying amount of assets pledged as collateral for the above collateralized long-term debt at March 31, 2011 was as follow:
Property, plant and equipment — net of accumulated depreciation

Millions of yen

Thousands of
U.S. dollars¥133$1,597

As is customary in Japan, the Company maintains substantial deposit balances with banks with which it has borrowings. Suchdeposit balances are not legally or contractually restricted as to withdrawal.
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided
under certain circumstances if requested by such banks and that certain banks have the right to offset cash deposited withthem against any long-term or short-term debt or obligation that becomes due and, in case of default and certain other specified events, against all other debt payable to the banks. The Company has never been requested to provide any additional collateral.
7. Employees’ Retirement Benefits
Most of the employees of the Company are covered by a contributory trusted pension plan.
The Company has lump-sum retirement benefit plans and a cash balance plan (pension plan linked to the market interest
rates) based on the Defined Benefit Corporate Pension Law.
The liability for employees’ retirement benefits at March 31, 2011 and 2010 consisted of the following:

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial differences
Unrecognized transitional obligation
Unrecognized prior service cost
Net liability

2011

Millions of yen
2010

Thousands of
U.S. Dollars
2011¥29,190(24,847)
(28)
220
148
¥ 4,683¥30,500(25,930)
770
275
170
¥ 5,785$351,056(298,827)
(335)
2,647
1,784
$ 56,325

The components of net periodic benefit costs for the years ended March 2011 and 2010 were as follows:

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial differences
Amortization of transitional obligation
Amortization of prior service cost
Net periodic benefit costs

2011

Millions of yen
2010

Thousands of
U.S. dollars
2011

¥993
610
(389)
(196)
(55)
(21)
¥942

¥1,040
644
(429)
35
(55)
(21)
¥1,214$11,945
7,333(4,678)(2,353)(662)(255)$11,330

Assumptions used for the years ended March 31, 2011 and 2010 were set forth as follows:
Discount rate
Expected rate of return on plan assets
Amortization period of prior service cost
Recognition period of actuarial differences
Amortization period of transitional obligation

2011

2010

2.0%
1.5%
10 years
10 years
15 years

2.0%
1.6%
10 years
10 years
15 years

Okumura Corporation Annual Report 2011

8. Equity
Japanese companies are subject to the Companies Act of Japan (the ”Companies Act”). The significant provisions in the
Companies Act that affect financial and accounting matters are summarized below:(1) Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders meeting. For companies that meet certain criteria such as; (1) having the Board of
Directors, (2) having independent auditors, (3) having the Board of Corporate Auditors, and (4) the term of service of thedirectors is prescribed as one year rather than two years of normal term by its articles of incorporation, the Board of
Directors may declare dividends (except for dividends in kind) at any time during the fiscal year if the company has prescribedso in its articles of incorporation. However, the Company cannot do so because it does not meet all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to acertain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles ofincorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million.
(2) Increases / decreases and transfer of common stock, reserve and surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity accountcharged upon the payment of such dividends until the total of aggregate amount of legal reserve and additional paid-in capital equals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal
reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional
paid-in capital, other capital surplus and retained earnings can be transferred among the accounts under certain conditions
upon resolution of the shareholders.
(3) Treasury stock and treasury stock acquisition rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolutionof the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to
the shareholders which is determined by specific formula. Under the Companies Act, stock acquisition rights, are presented
as a separate component of equity. The Companies Act also provides that companies can purchase both treasury stockacquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity
or deducted directly from stock acquisition rights.

21

9. Income Taxes
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate,
resulted in normal effective statutory tax rates of approximately 40.6% for the years ended March 31, 2011 and 2010.
The tax effects of significant temporary differences and tax loss carry-forwards which resulted in deferred tax assets andliabilities at March 31, 2011 and 2010 are as follows:

22

Deferred tax assets:
Tax loss carry-forwards
Impairment losses on securities
Allowance for doubtful accounts
Write-down of inventories
Liability for retirement benefits
Allowance for losses on construction contracts
Allowance for bonuses
Accrued expenses
Write-off of bad debt
Other
Less valuation allowances
Total
Deferred tax liabilities:
Net unrealized gains on available-for-sale securities
Retained earnings appropriated for special allowance
Total
Net deferred tax liabilities

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥11,414
3,033
2,908
2,415
1,901
1,734
743
536
228
314
(25,226)—¥11,211
3,072
2,349
3,274
2,348
2,335
314
576
767
328
(26,574)—$137,271
36,47034,97829,03822,86820,857
8,934
6,448
2,743
3,775
(303,382)—(3,985)(2,257)(6,242)¥ (6,242)(5,526)(2,280)(7,806)¥ (7,806)(47,931)(27,140)(75,071)$ (75,071)

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying consolidated statements of income for the years ended March 31, 2011 and 2010 was as follows:
Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable income
Inhabitant tax per capita
Valuation allowance
Other—net
Actual effective tax rate

2011

2010

40.6%
2.4
(4.1)
3.7
(36.2)
(3.3)
3.1%

40.6%
11.2
(20.1)
18.3(33.4)(3.7)
12.9%

Okumura Corporation Annual Report 2011

10. Research and Development Costs
Research and development costs charged to income were ¥579 million ($6,962 thousand) and ¥644 million for the years ended
March 31, 2011 and 2010, respectively.
11. Leases(1) Finance leases
The Group leases certain machinery and equipment, office space and other assets.
Total rental expenses including lease payments under finance leases for the years ended March 31, 2011 and 2010 were
¥21 million ($249 thousand) and ¥37 million, respectively.
Obligations under finance leases were as follows:
Millions of yen

Due within one year
Due after one year
Total

Thousands of
U.S. dollars

2011

2010

2011

¥ 9
22
¥31

¥ 6
18
¥24

$104
264
$368

Pro forma information of leased property whose lease inception was before March 31, 2008
ASBJ Statement No.13, ”Accounting Standard for Lease Transactions” requires that all finance lease transactions be capitalized
to recognize lease assets and lease obligations in the balance sheet. However, the ASBJ Statement No. 13 permits leases without ownership transfer of the leased property to the lessee and whose lease inception was before March 31, 2008 to continue
to be accounted for as operating lease transactions if certain ”as if capitalized” information is disclosed in the note to the financial statements. The Group applied ASBJ Statement No.13 effective April 1, 2008 and accounted for such leases as operatinglease transactions. Pro forma information of leased property whose lease inception was before March 31, 2008 that do nottransfer ownership of the leased property to the lessee on an ”as if capitalized” basis was as follows:
Millions of yen

Acquisition cost
Accumulated depreciation
Net leased property

Thousands of
U.S. dollars

2011

2010

2011

Machineryandequipment

Machineryandequipment

Machineryandequipment

¥63
54
¥ 9

¥82
60
¥22

$756
645
$111

Obligations under finance leases which existed at the transition date and do not transfer ownership of the leased property to
the lessee:
Millions of yen

Due within one year
Due after one year
Total

Thousands of
U.S. dollars

2011

2010

2011

¥9
0
¥9

¥13
9
¥22

$102
9
$111

The amount of acquisition cost and obligations under finance leases includes the imputed interest expense portion.
Depreciation expenses, which are not reflected in the accompanying statements of income, computed by the straight-line
method were ¥13 million ($159 thousand) and ¥33 million for the years ended March 31, 2011 and 2010, respectively

23

(2) Operating leases
Future minimum lease receivables or payments under non-cancellable operating leases at March 31, 2011 and 2010 were as
follows:

24

As a lessor:
Due within one year
Due after one year
Total
As a lessee:
Due within one year
Due after one year
Total

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥ 1,845
20,364¥22,209¥ 1,860
22,099¥23,959$ 22,186
244,909$267,095

¥

¥

$

¥

33
95
128

¥

33
128
161

$

394
1,145
1,539

12. Financial Instruments and Related Disclosures
In March, 2008, the ASBJ revised ASBJ Statement No.10 ”Accounting Standard for Financial Instruments” and issued ASBJ
Guidance No.19 ”Guidance on Accounting Standard for Financial Instruments and Related Disclosures”. This accounting standard and the guidance was applicable to financial instruments and related disclosures at the end of the fiscal years ending on orafter March 31, 2010. The Group applied the revised accounting standard and the guidance effective March 31, 2010.
(1) Group policy for financial instruments
At the Group level cash surpluses, if any, are invested in low risk and capital-safe financial assets. Short-term bank loans areused to fund ongoing operations.
(2) Nature and extent of risks arising from financial instruments
Receivables such as trade notes and trade accounts are exposed to customer credit risk. Marketable and investment securities, mainly held-to-maturity securities and equity instruments of customers and suppliers of the Group, are exposed to therisk of market price fluctuations.
Payment terms of payables, such as trade notes and trade accounts, are mostly less than one year.
(3) Risk management for financial instruments
Credit Risk Management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay or service debt according to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include continuously
grasping the customers circumstances from the phase of accepting orders to that of collection of the receivables, along with
monitoring of payment term and balances each transaction.
Market risk management (foreign exchange risk and interest rate risk)
Marketable and investment securities are managed by monitoring market values and financial position of issuers on a regularbasis. Also, the Group continuously reviews its possession of those securities except for held-to-maturity securities.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity dates. The Groupmanages its liquidity risk by making the appropriate cash schedule on a monthly basis.
(4) Fair values of financial instruments
Fair values of financial instruments are based on quoted prices in active markets. If quoted price is not available, other rational valuation techniques are used instead.

Okumura Corporation Annual Report 2011(a) Fair values of financial instruments
Millions of yen

March 31, 2011

Carrying
amountFair value

Unrealized
gain/loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables
Net
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable
Net
Total

¥ 34,953
84,613(3,340)81,27335,960
877
(643)
234
¥152,420¥ 34,953¥ —81,19935,960(74)—

233¥152,345(1)¥ (75)

Short-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total¥ 11,272
46,80331¥ 58,106¥ 11,272
46,80330¥ 58,105

¥ —
—
(1)
¥ (1)

25

Millions of yen

March 31, 2010

Carrying
amountFair value

Unrealized
gain/loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables
Net
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable
Net
Total

¥ 28,299
63,092(3,640)59,45240,961
1,072
(453)
619
¥129,331¥ 28,299¥ —59,43840,961(14)—623¥129,321

4¥ (10)

Short-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total¥ 10,292
40,14524¥ 50,461¥ 10,292
40,14523¥ 50,460

¥ —
—
(1)
¥ (1)

Thousands of U.S. dollars

March 31, 2011

Carrying
amountFair value

Unrealized
gain/loss

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Allowance for doubtful receivables
Net
Investment securities
Long-term loans receivable
Allowance for doubtful long-term loans receivable
Net
Total

$  420,361
1,017,593(40,166)
977,427
432,472
10,540(7,733)
2,807$1,833,067$  420,361$   —976,536
432,472

(891)
—

2,797
$1,832,166(10)$ (901)

Short-term bank loans
Payables—trade notes and accounts
Long-term debt—lease obligation including current portion
Total$  135,565
562,882368$  698,815$  135,565
562,882355$  698,802

$   —
—
(13)
$ (13)

Amounts due from unconsolidated subsidiaries and associated companies are included in receivables-trade notes and accounts,
and long term loans receivable.

26

Cash and cash equivalents and time deposits
The carrying values of cash and cash equivalents and time deposits approximate fair value because of their shortmaturities.
Investment securities
The fair values of investment securities are measured at the quoted market price of the stock exchange for the equity instruments, and at the quoted price obtained from the financial institution for certain debt instruments. The
information of the fair value for the investment securities by classification is included in Note 3.
Receivables—trade notes and accounts, and long-term loans receivable
The fair values of receivables—trade notes and accounts, and a long-term loans receivable are measured at theamount to be received at maturity discounted at the Group’s assumed corporate discount rate, such as the rate ofnational bonds to the maturity. Also, the amounts of the allowance for doubtful receivables are deducted from thefair values.
Payables—trade notes and accounts, and short-term bank loans
The carrying values of payables—trade notes and accounts, and short-term bank loans approximate fair value
because of their short maturities.
Long-term debt—lease obligation
The fair values of long-term debt—lease obligation are determined by discounting the cash flows related to the debt
at the Group’s assumed corporate borrowing rate.
(b) Financial instruments whose fair value cannot be reliably determined
Carrying amount

Investments in equity instruments that do not have a quoted market price in an
active market
Other

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥1,742¥1,789$20,950

¥

¥

$

1

56

16

(5) Maturity analysis for financial assets and securities with contractual maturities
Millions of yen

March 31, 2011

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Investment securities
Available-for-sale securities with contractual maturities
Long-term loans receivable
Total

Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years¥ 34,953
76,291

¥ —
8,322

¥ —
—

¥

—
—
¥111,244—432¥8,754

—
144
¥144

1,200
301
¥1,501

Due in one year
or less

Due after one
year throughfive years

Due after five
years throughten years$ 420,361
917,510$—
100,083$

——$1,337,871—
5,190$105,273—
1,734$1,734Due after
ten years——

Thousands of U.S. dollars

March 31, 2011

Cash and cash equivalents and time deposits
Receivables—trade notes and accounts
Investment securities
Available-for-sale securities with contractual maturities
Long-term loans receivable
Total

—
—

Please see Note 6 for annual maturities of long-term debt and Note 11 for obligations under finance leases.

Due after
ten years$——

14,432
3,616$18,048

Okumura Corporation Annual Report 2011

13. Commitments and Contingent Liabilities
Investments in securities in the amount of ¥74 million ($892 thousand) and ¥1 million ($12 thousand) are pledged as collateral
for the loans of an affiliate and contract performance obligation of PFI business, respectively, at March 31, 2011 and time
deposit in the amount of ¥100 million ($1,207 thousand) is pledged for sale of shield excavators at March 31, 2011. Land in
the amount of ¥21 million ($250 thousand) is pledged for the keeping deposit related the fixed term land leasehold at March
31, 2011.
14. Comprehensive Income
Other comprehensive income for the year ended March 31, 2010 consisted of the following:
Millions of yen
2010

Other comprehensive income:Unrealized gain on available-for-sale securities
Total other comprehensive income¥1,476¥1,476

Total comprehensive income for the year ended March 31, 2010 comprises the following:
2010

Total comprehensive income attributable to:
Owners of the parent
Minority interests
Total comprehensive income¥2,128—¥2,128

15. Subsequent Events
Appropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2011 was approved at the Company’s shareholders meeting heldon June 29, 2011.
Year-end cash dividends, ¥9 ($0.11) per share

Millions of yen

Thousands of
U.S. dollars¥1,798$21,623

16. Segment Information
For the year ended March 31, 2011 and 2010
In March 2008, the ASBJ revised ASBJ Statement No.17 ”Accounting Standard for Segment Information Disclosures” and issued
ASBJ Guidance No.20 ”Guidance on Accounting Standard for Segment Information Disclosures”. Under the standard andguidance, an entity is required to report financial and descriptive information about its reportable segments. Reportablesegments are operating segments or aggregations of operating segments that meet specified criteria. Operating segments arecomponents of an entity about which separate financial information is available and such information is evaluated regularly by
the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, segment
information is required to be reported on the same basis as is used internally for evaluating operating segment performanceand deciding how to allocate resources to operating segments. This accounting standard and the guidance are applicable tosegment information disclosures for the fiscal years beginning on or after April 1, 2010.
The segment information for the year ended March 31, 2010 under the revised accounting standard is also disclosed
hereunder as required.
1. Description of reportable segments
The Group’s reportable segments are those for which separately financial information is available and regular evaluation by
the Company’s management is being performed in order to decide how resources are allocated among the Group.
Therefore, the Group categorizes its operating activities into ”Civil engineering”, ”Architectural construction” and ”Realestate” businesses as reportable segments.
2. Methods of measurement for the amounts of sales, profit (loss), assets, liabilities and other items for each reportable segment
The accounting policies of each reportable segment are consistent to those disclosed in Note 2, ”Summary of Significant
Accounting Policies”.

27

3. Information about sales, profit (loss), assets, liabilities and other items is as follows:
Millions of yen
2011

Reportable segment

28

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit (loss)
Other:
Depreciation

Civil
engineering

Architectural
construction

Real estate

Total

Other
(Note 1)

¥81,359¥101,282¥6,213¥188,854¥3,763¥192,617—
81,359168—
101,282
1,334

44
6,257
2,263

44
188,898
3,765

1,110
4,873
(442)

1,154
193,771
3,323

353

¥ 278

¥

303

¥

¥

934

¥

Total Reconciliations(Note 2)

48

¥

982

¥

Consolidated(Note 3)—

¥192,617(1,154)(1,154)
57—
192,617
3,380

¥

(7)

¥

975

Millions of yen
2010

Reportable segment

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit (loss)
Other:
Depreciation

Civil
engineering

Architectural
construction

Real estate

Total

Other
(Note 1)

¥82,574¥105,375¥4,119¥192,068¥6,426¥198,494—
82,574(1,412)

6,633
112,008
1,134

54
4,173
1,586

6,687
198,755
1,308

655
7,081
104

7,342
205,836
1,412

¥

312

¥

383

¥

219

¥

914

¥

Total Reconciliations(Note 2)

47

¥

961

¥

Consolidated(Note 3)—

¥198,494(7,342)(7,342)(548)—
198,494
864

¥

(5)

¥

956

Thousands of U.S. dollars
2011

Reportable segment

Sales
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit (loss)
Other:
Depreciation

Civil
engineering

Architectural
construction

Real estate

Total

Other
(Note 1)

$978,462$1,218,058$74,725$2,271,245$45,256$2,316,501$—$2,316,501—
978,462
2,018—
1,218,058
16,046528
75,253
27,217528
2,271,773
45,281

13,35558,611(5,317)

13,8832,330,384
39,964(13,883)(13,883)689—
2,316,501
40,6534,243$ 3,345$ 3,647$$

11,235$580

Total Reconciliations(Note 2)$

11,815$(84)

Consolidated(Note 3)$

11,731

Notes:(1) ”Other” is a business segment which is not included in any reportable segment, and includes business related to
manufacturing and sales of construction machineries and materials.
(2) Reconciliations to segment profit (loss) in an amount of ¥57 million ($689 thousand) and ¥(548) million for the years ended
March 31, 2011 and 2010, include to eliminations of intersegment transactions.
(3) Consolidated amounts of segment profit (loss) above correspond to the amounts of operating income in the consolidated
statements of income.
Information concerning amortization of goodwill and unamortized balance of goodwill by reportable segment

Okumura Corporation Annual Report 2011

For the year ended March 31, 2011
The Group records negative goodwill not allocated to any reportable segment. Amortization of negative goodwill was ¥284
million ($3,410 thousand) for the year and unamortized balance at the year-end was ¥567 million ($6,821 thousand). The
negative goodwill was incurred when the Company acquired additional shares in Okumura Machinery Corporation.
For the year ended March 31, 2010
Information about industry segments of the Group for the year ended March 31, 2010 is as follows:
Industry Segments
Major components of each business segment are as follows:
Construction: Civil engineering, buildings and other construction projects
Real estate: Sale and lease of real estate
Other: Manufacturing and distribution of construction materials and equipment, etc.

29

a. Sales and Operating Income
Millions of yen
2010

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income

Construction

Real estate

Other

Eliminations/
Corporate¥187,949
6,633
194,582
194,855¥(273)¥4,119
54
4,173
2,570
¥1,603¥6,426
655
7,081
6,999
¥ 82

¥
—
(7,342)(7,342)(6,794)¥ (548)

Consolidated¥198,494—
198,494
197,630¥864

b. Total assets, Depreciation and Capital Expenditures
Millions of yen
2010

Total assets
Depreciation
Capital expenditures

Construction

Real estate

Other

Eliminations/
Corporate¥210,404
698
232¥31,111219
805¥6,17544
34¥(5,931)(5)(200)

Consolidated¥241,759
956
871

Independent Auditors‘ Report

Deloitte Touche Tohmatsu LLC
Yodoyabashi Mitsui Building
4-1-1, Imabashi, Chuo-ku
Osaka 541-0042
Japan
Tel: +81 (6) 4560 6000
Fax: +81 (6) 4560 6001
www.deloitte.com/jp30
INDEPENDENT AUDITORS' REPORTTo the Board of Directors of Okumura Corporation:

We have audited the accompanying consolidated balance sheets of Okumura Corporation (the “Company”) and consolidated
subsidiaries (together, the “Group”) as of March 31, 2011 and 2010, and the related consolidated statements of income for theyears then ended, the consolidated statement of comprehensive income for the year ended March 31, 2011, and the related
consolidated statements of changes in equity, and cash flows for the years then ended, all expressed in Japanese yen. These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Okumura Corporation and consolidated subsidiaries as of March 31, 2011 and 2010, and the consolidated
results of their operations and their cash flows for the years then ended in conformity with accounting principles generally
accepted in Japan.
Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for theconvenience of readers outside Japan.

June 29, 2011

Member of
Deloitte Touche Tohmatsu Limited

Non-Consolidated Balance Sheets
Okumura Corporation
As of March 31, 2011 and 2010ASSETS

Okumura Corporation Annual Report 2011

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥ 34,674¥ 27,766$ 417,002

232

468

2,792

1

56

16

Current assets:
Cash and cash equivalents
Time deposits
Marketable securities
Receivables:
Trade notes

2,038

5,747

24,509Trade accounts

79,88658,989960,750

Other

15,47615,092

186,120

Allowance for doubtful receivables(3,605)(3,938)(43,360)

32,93464,820396,075

449

634

5,398

162,085

169,634

1,949,302

Inventories
Prepaid expenses and otherTotal current assets

Property, plant and equipment:
Land

13,501

12,215

162,368

Buildings and structures

15,496

14,335

186,365

Machinery and equipment

2,623

2,658

31,545

Furniture and fixtures

2,005

2,056

24,110

Lease assets

23

12

281

Construction in progress

19

39

234

33,66731,315404,903(13,520)(13,099)(162,603)

20,147

18,216242,300

37,15942,250446,885

Total
Accumulated depreciation
Net property, plant and equipment

Investments and other assets:
Investment securities
Investments in and advances to subsidiaries and associated companies

4,959

5,528

59,640Long-term accounts receivable-other

3,654

2,994

43,950Long-term loans receivable

339

382

4,080

Other assets

855

1,032

10,288

Allowance for doubtful receivables
Total investments and other assets
Total(4,295)(3,503)(51,660)

42,671

48,683513,183¥224,903¥236,533$2,704,785

31

LIABILITIES AND EQUITY

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥ 11,296¥ 10,316$ 135,845

Current liabilities:
Short-term bank loans including current portion of long-term debt
Payables:32

Trade notes

5,484

3,375

65,948Trade accounts

40,75734,933490,162

Other
Advances received on construction projects in progress

168

216

2,023

25,32740,733

304,599

Income taxes payable

202

245

2,426

Allowance for warranty work on construction projects

310

370

3,734

Allowance for losses on construction contracts

4,172

5,702

50,171

Other

13,786

13,408

165,796

101,502109,298

1,220,704

194

237

2,331

Total current liabilities

Long-term liabilities:
Long-term debt
Liability for retirement benefits

4,683

5,785

56,325

Deferred tax liabilities

6,205

7,773

74,627

132

121

1,583

Total long-term liabilities

11,214

13,916

134,866

Total liabilities

112,716

123,214

1,355,570

Other

Commitments and contingent liabilities

Equity:Common stock
19,83919,839238,592

Capital surplus

25,32725,327

304,592

Retained earnings

71,79870,003

863,480

Unrealized gain on available-for-sale securities

7,571

10,482

91,058(12,348)(12,332)(148,507)

authorized, 480,376,000 shares; issued, 228,326,133shares

Treasury stock—at cost
28,549,412 shares in 2011 and 28,496,086 shares in 2010
Total equity

112,187

113,319

1,349,215

Total¥224,903¥236,533$2,704,785

Non-Consolidated Statements of Income
Okumura Corporation
For the years ended March 31, 2011 and 2010

Okumura Corporation Annual Report 2011

Thousands of
U.S. dollars

Millions of yen
2011

2010

2011

¥187,969
169,301
18,668¥199,562
183,382
16,180$2,260,607
2,036,092
224,515

Selling, general and administrative expenses
Operating income

15,485
3,183

14,7191,461

186,231
38,284

Other income (expenses):
Interest and dividend income
Interest expenses
Impairment losses on investment securities
Reversal of allowance for doubtful accounts
Loss on valuation of stocks of subsidiaries and affiliates
Loss on fire accident
Other—net
Other income (expenses)—net

1,165
(193)
(701)
—
—
—
251
522

1,119
(202)
(168)
426
(1,947)(1,353)
1,407
(718)

14,006(2,320)(8,436)
—
—
—
3,023
6,273

Income (loss) before income taxes

3,705

743

44,557

135
(24)
111

134
(40)
94

1,624
(285)
1,339

3,594

¥ 649

Yen

U.S. dollars¥ 17.98
9.00¥ 3.249.00$ 0.220.11

Net sales
Cost of sales
Gross profit

Income taxes:
Current
Deferred
Total income taxes
Net income

Per share of common stock:
Basic net income
Cash dividends applicable to the year¥$

43,21833

Breakdown of Orders (Non-Consolidated)
Okumura Corporation
For the years ended March 31, 2011 and 2010

Construction Orders Awarded

2011

Millions ofyen

34

Civil engineering:
Domestic:
Public sector
Private sector
Overseas
SubtotalArchitectural construction:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Total:
Domestic:
Public sector
Private sector
Overseas
Total

68.8

27,494
81,2007
108,701

100 %

60,862
108,114460¥169,436

Composition
ratio

Millions of
yen

43.4%

¥ 53,010
24,517
5,047
82,57453.9

17,261
94,740
7
112,008

97.2
2.8
100 %

70,271
119,258
5,053
194,582
4,980¥199,562

Composition
ratio

Millions of
yen

39.6%

¥ 83,585
32,34011,329127,25460.4

38,758104,252
143,010100 %

122,344
136,591
11,329¥270,264

37,31595,304
223¥132,842
2011

Millions ofyen¥ 49,211
25,191
6,957
81,35923,365
77,9152
101,282
72,576103,106
6,959
182,641
5,328¥187,969

Year-end Backlog¥ 59,874
22,933
4,593
87,40027,209105,856
133,065
87,083
128,789
4,593¥220,465

Composition
ratio

Thousands of
U.S. dollars

35.8%$ 306,681
189,833
2,649
499,16364.2

142,089
956,340
29
1,098,458

100 %

448,770
1,146,173
2,678$1,597,621

Composition
ratio

Thousands of
U.S. dollars

41.4%$ 591,838
302,959
83,665
978,46256.1

280,990937,039
29
1,218,058

97.5
2.5
100 %

872,829
1,239,998
83,693
2,196,520
64,087$2,260,607

Composition
ratio

Thousands of
U.S. dollars

47.1%$ 720,075
275,809
55,234
1,051,118

52.9

327,223
1,273,076
1,600,299

100 %1,047,298
1,548,884
55,234$2,651,416

2011

2010

2011

Millions ofyen

Civil engineering:
Domestic:
Public sector
Private sector
Overseas
SubtotalArchitectural construction:
Domestic:
Public sector
Private sector
Subtotal
Total:
Domestic:
Public sector
Private sector
Overseas
Total

31.2%

¥ 33,368
26,914453
60,735

11,81579,5202
91,337

Net Sales

Projects completed:
Civil engineering:
Domestic:
Public sector
Private sector
Overseas
SubtotalArchitectural construction:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Subtotal:
Domestic:
Public sector
Private sector
Overseas
Subtotal
Real estate and other
Total

Millions ofyen¥ 25,500
15,785220
41,505

2011

2010

Composition
ratio

2011

2010

NetworkOkumura Corporation Annual Report 2011

Head and Branch Offices

Consolidated Subsidiaries

Head Office
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295

Nagoya Branch
29-8, Takebashi-cho, Nakamura-ku,
Nagoya 453-8555, Japan
TEL: +81-52-451-1101 FAX: +81-52-452-4331

Tokyo Head Office
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8103

Kansai Branch
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6621-1921

Technical Research Institute387, Ohsuna, Tsukuba 300-2612, Japan
TEL: +81-29-865-1521 FAX: +81-29-865-1522
East Japan Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8111
West Japan Branch
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6623-7692
Sapporo Branch
2-1-18, Kita Shijo Nishi,
Chuo-ku, Sapporo 060-0004, Japan
TEL: +81-11-261-9261 FAX: +81-11-251-5345
Tohoku Branch
2-25, Tsutsumi dori, Amamiya-machi,
Aoba-ku, Sendai 981-8525, Japan
TEL: +81-22-274-1231 FAX: +81-22-273-9805
Tokyo Branch
5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-3454-8111 FAX: +81-3-5427-8116
Kitakanto Office
4-26-15, Kishi-cho, Urawa-ku,
Saitama 330-0064, Japan
TEL: +81-48-827-0188 FAX: +81-48-827-0268
Higashikanto Office18-14, Shinmachi, Chuo-ku,
Chiba 260-0028, Japan
TEL: +81-43-241-2255 FAX: +81-43-244-5911
Yokohama Office
60, Nihon Ohdori, Naka-ku,
Yokohama 231-0021, Japan
TEL: +81-45-662-1361 FAX: +81-45-641-3502
Hokuriku Office2-3-26, Higashi Ohdori, Chuo-ku,
Niigata 950-0087, Japan
TEL: +81-25-241-6160 FAX: +81-25-241-6364

Kobe Office2-2-16, Isobe dori, Chuo-ku,
Kobe 651-0084, Japan
TEL: +81-78-221-9355 FAX: +81-78-251-3374
Hiroshima Branch
1-7-22, Kokutaiji-machi, Naka-ku,
Hiroshima 730-0042, Japan
TEL: +81-82-241-2246 FAX: +81-82-243-1416
Shikoku Branch
1-8-41, Nishiki-machi,
Takamatsu 760-0020, Japan
TEL: +81-87-851-9008 FAX: +81-87-822-9286
Kyushu Branch
2-19-1, Sanno, Yahata Higashi-ku,
Kitakyushu 805-8531, Japan
TEL: +81-93-671-3131 FAX: +81-93-661-1543
Fukuoka Office
1-13-8, Yakuin, Chuo-ku,
Fukuoka 810-0022, Japan
TEL: +81-92-741-4431 FAX: +81-92-741-4740
Taiwan Branch
Rm.702, 7F., No.65, Sec.3, Nanjing E.Rd.,
Zhongshan Dist., Taipei City 104, Taiwan(R.O.C.)TEL: +886-2-2506-1402
FAX: +886-2-2506-1429
Singapore Rep. Office
175A Bencoolen Street, #07-08 Burlington
Square, Singapore 189650
TEL: +65-6884-6830
FAX: +65-6884-6831

Okumura Machinery Corporation
3-5-26, Himejima, Nishiyodogawa-ku,
Osaka 555-0033, Japan
TEL: +81-6-6472-3461
FAX: +81-6-6477-6801
Business line:Design, manufacture, sales, andrepair of construction/industrial machines anddevices
Taihei Real Estate Corporation[Head Office]5-6-1, Shiba, Minato-ku,
Tokyo 108-8381, Japan
TEL: +81-3-5439-5401
FAX: +81-3-5439-5402[Osaka Branch]
2-2-2, Matsuzaki-cho, Abeno-ku,
Osaka 545-8555, Japan
TEL: +81-6-6625-3959
FAX: +81-6-6629-3938
Business line: Real estate, land and building
management

35

Board of Directors

Investor Information(As of June 29, 2011)(As of March 31, 2011)

Directors and Auditors

Corporate Data

President & Representative Director
Takanori Okumura

Head Office	OKUMURA CORPORATION
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295

Representative Director
Takaiku Hirako

36

Directors
Toshio Yamaguchi
Kazuo Takami
Kozo Aoki
Makoto Tsuchiya
Toshio Kobayashi
Seiichi Fujioka
Yuichi Mizuno
Standing Statutory Auditors
Yusaku Nishigami
Yuji Takemura
Auditors
Shinji Ito
Nobuhiko Dejima
Yoshio Takahashi
Note: Shinji Ito, Nobuhiko Dejima, and Yoshio Takahashi are outside auditors.

Executive Officers
Senior Managing Officers
Takaiku Hirako*
Toshio Yamaguchi*
Managing Officers
Tadashi Hashimoto
Yoshikuni Ogi
Masamichi Shirahase
Kazuo Takami*
Kozo Aoki*
Makoto Tsuchiya*
Executive Officers
Akiyoshi Hida
Kenichiro Minami
Toshiharu Shimizu
Koji Esumi
Toshio Kobayashi*
Hirokazu Oishi
Seiichi Fujioka*
Hiroomi Iida
Takeshi Kurita
Keiji Yamaguchi
Yuichi Mizuno*
Note: Those officers marked with an asterisk (*) work as directors.

EstablishedFebruary 22, 1907
Capital¥19.8 billion
Group Employees
1,966

Stock Information
Stock Exchange Listings
Tokyo and Osaka
Transfer Agent
The Sumitomo Trust and Banking Co., Ltd.
Major Shareholders
Shareholder

Shares held
(thousands)

Percentage oftotal

Okumura Corporation(Treasury stock)

28,54912.50%

Northern Trust Co. (AVFC) Sub
A/C American Clients

17,019

7.45

Okumura Employees’
Shareholding Association

7,152

3.13

BBH/Blackrock Global
Allocation Fund, Inc.

6,948

3.04

Northern Trust Co. AVFC Re
U.S. Tax Exempted Pension
Funds

6,530

2.86

Resona Bank, Limited.

6,074

2.66

Sumitomo Realty &Development Co., Ltd.

6,050

2.65

State Street Bank and Trust
Company

5,934

2.60

Japan Trustee Services Bank,
Ltd. (Trust Account)

5,802

2.54

Sumitomo Mitsui Banking
Corporation

5,568

2.44

The Master Trust Bank ofJapan, Ltd. (Trust Account)

4,625

2.03

Okumura Corporation
2-2-2, Matsuzaki-cho, Abeno-ku, Osaka 545-8555, Japan
TEL: +81-6-6621-1101 FAX: +81-6-6627-5295

Okumura Corporation

http://www.okumuragumi.co.jp

Annual Report 2011

Printed in Japan