ANNUAL REPORT
2010

CONTENTS
PROFILE

1

THE MESSAGE FROM THE PRESIDENT

2

CONSOLIDATED BALANCE SHEETS

4CONSOLIDATED STATEMENTS OF OPERATIONS

6CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

7

CONSOLIDATED STATEMENTS OF CASH FLOWS

9NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

10REPORT OF INDEPENDENT AUDITORS

38

NON-CONSOLIDATED BALANCE SHEETS

40

NON-CONSOLIDATED STATEMENTS OF OPERATIONS

42

NON-CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

43

NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS45

REPORT OF INDEPENDENT AUDITORS59

CORPORATE OUTLINE

60

CORPORATE DATA

61

PROFILE

1

THE MESSAGE FROM THE PRESIDENT

2

Consolidated Financial Statements
Sumitomo Mitsui Construction Co., Ltd.
and Consolidated Subsidiaries
Years ended March 31, 2010 and 2009
with Report of Independent Auditors3

Sumitomo Mitsui Construction Co., Ltd.
Consolidated Balance Sheets
March 31, 2010
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 3)

AssetsCurrent assets:
Cash and deposits (Notes 5-3 and 8)
Trade notes and accounts receivable (Note 5-3)
Inventories (Notes 5-1 and 5-6)
Deferred tax assets (Note 13)
Other current assets (Note 11)Less allowance for doubtful receivables
Total current assets¥ 29,768
102,129
24,103
3,173
13,679(1,839)171,016¥ 25,296
124,968
26,7552,309
16,327(4,522)
191,135$ 319,948
1,097,689
259,060
34,103147,022(19,765)
1,838,091

Non-current assets:
Property and equipment, at cost:
Land (Notes 5-3 and 5-4)
Buildings and structures (Note 5-3)
Machinery, equipment and vehicles (Note 5-3)
Construction in progress
Accumulated depreciation
Property and equipment, net

16,368
14,52517,011
9(24,598)
23,315

16,395
14,117
17,075
12(24,266)
23,334

175,924
156,115
182,835
96(264,380)
250,591

2,409

2,221

25,892

4,722
7,611
7,969

4,350
7,769
8,841

50,75281,80385,651Intangible fixed assets
Investments and other assets:
Investments in securities (Notes 5-3 and 11)Long-term loans receivable
Claims provable in bankruptcy and other
Investments in unconsolidated subsidiaries and affiliates(Notes 5-3 and 11)
Investments in real estate (Notes 5-2 and 5-3)
Long-term non-operating accounts receivable(Note 16)
Deferred tax assets (Note 13)
OtherLess allowance for doubtful receivables
Total investments and other assets
Total non-current assets

1,437
3,601

1,317
3,630

15,44438,70345,104
1,768
8,162(54,530)
25,846
51,57140,6442,651
8,040(53,149)
24,09749,652484,780
19,00287,725(586,092)
277,794554,288

Total assets¥222,588¥240,788$2,392,390

24

Sumitomo Mitsui Construction Co., Ltd.
Consolidated Balance Sheets
March 31, 2010

Liabilities and net assets
Current liabilities:
Short-term bank loans and current portion of
long-term debt (Notes 5-3 and 18)
Trade notes and accounts payable
Accrued expenses
Advances received on contracts in progress
Deposits received (Note 5-3)
Reserve for defects on completed construction projects
Allowance for losses on construction contracts (Note 5-6)
Allowance for loss on litigation
Other current liabilities (Note 5-3)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 5-3 and 18)
Accrued retirement benefits (Note 12)
Deferred tax liability on land revaluation (Note 5-4)
Other long-term liabilities (Note 5-3)
Total long-term liabilities

As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 3)¥

6,642
122,336
2,108
23,417
12,726
1,255
327
1,325
10,410180,549¥

4,679
140,219
2,117
28,687
–
1,491
572
–
22,409200,177$

71,3881,314,875
22,656
251,687
136,779
13,4883,514
14,241
111,887
1,940,552

1,197
14,996446
5,087
21,727

2,123
15,690447
5,413
23,674

12,865
161,177
4,793
54,675
233,523

12,003

16,859129,009

682
5,651

80
(1,145)

7,330
60,737(241)
18,096(240)
15,553(2,590)
194,496

37
57
(604)
(508)
2,723
20,310¥222,588

(375)
58
(656)
(973)
2,356
16,936¥240,788

397
612(6,491)(5,460)29,266218,293$2,392,390

Contingent liabilities (Notes 5-5 and 16)
Net assets:
Shareholders’ equity:
Capital stock:
Common stock:
Authorized:
2,669,464,970 shares in 2010 and 2009
Issued and outstanding:
275,313,598 shares in 2010 and
275,097,086 shares in 2009
Preferred stock:
Authorized:
26,894,644 shares in 2010 and 2009
Issued and outstanding:
16,323,100 shares in 2010 and
16,330,600 shares in 2009
Additional paid-in capital
Retained earnings (deficit)
Less treasury stock, at cost:
425,236 shares in 2010 and 411,183 shares in 2009
Total shareholders’ equity
Valuation, translation adjustments and other:
Unrealized holding gain (loss) on securities
Land revaluation (Note 5-4)
Translation adjustments
Total valuation, translation adjustments and other
Minority interests
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of these statements.

53

Sumitomo Mitsui Construction Co., Ltd.
Consolidated Statements of Operations
March 31, 2010
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 3)
Net sales (Note 6-1)
Cost of sales (Note 6-2)
Gross profit¥336,476
313,337
23,138¥396,065
372,956
23,108$3,616,466
3,367,766
248,688

16,537
6,601

18,634
4,474

177,740
70,947

394
184
109
(989)
(4)
(106)
36
60
(51)
–
153
0
–
(1,280)(384)(868)(2,746)436
176–(1,479)(240)(2,613)
(855)
13
(367)
394
479
74
(557)
–
–
(2,164)(6,701)

4,234
1,977
1,171
(10,629)(42)(1,139)
386
644
(548)
–
1,644
0
–
(13,757)(4,127)(9,329)(29,514)3,854(2,227)41,423

947
(16)
931

828
1,860
2,689

10,178(171)
10,006

(378)
2,543

(230)
¥ (5,147)(4,062)
27,332

Selling, general and administrative expenses(Notes 6-3 and 12)
Operating income
Other income (expenses):
Interest and dividend income
Payments received from insurance claims
Employment adjustment subsidies
Interest expense
Exchange loss, net
Provision for doubtful receivables
Equity in earnings (losses) of affiliates
Gain on sales of property and equipment
Loss on sales and disposal of property and equipment
Gain on sales of investments in securities
Gain on prior-period adjustment
Amortization of negative goodwill upon consolidation
Special retirement benefits (Note 6-4)
Allowance for loss on litigation
Relocation expenses (Note 6-5)
Other, net
Income (loss) before income taxes and minority interests
Income taxes (Note 13):
Current
Deferred
Minority interests in net income of consolidated
subsidiaries
Net income (loss)¥(U.S. dollars)(Note 3)(Yen)
Net income (loss) per share – basic (Note 17)
Net income per share – diluted (Note 17)

¥6.22
4.32

$

¥(18.86)–$0.066
0.046

The accompanying notes are an integral part of these statements.

64

Sumitomo Mitsui Construction Co., Ltd.
Consolidated Statements of Changes In Net Assets
March 31, 2010
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 3)

Shareholders’ equity
Capital stock:
Balance at the end of previous period
Changes in items during the period
Transfer to other additional paid-in capital
Total changes in items during the period
Balance at the end of the period
Additional paid-in capital:
Balance at the end of previous period
Changes in items during the period:
Transfer from capital stock
Deficit disposition
Disposition of treasury stock
Total changes in items during the period
Balance at the end of the period
Retained earnings (deficit):
Balance at the end of previous period
Changes in items during the period
Deficit disposition
Net income (loss)
Reversal of revaluation reserve for land, net of taxes
Total changes in items during the period
Balance at the end of the period
Treasury stock, at cost:
Balance at the end of previous period
Changes in items during the period
Purchases of treasury stock
Disposition of treasury stock
Total changes in items during the period
Balance at the end of the period
Total shareholders’ equity:
Balance at the end of previous period
Changes in items during the period
Transfer to other additional paid-in capital
Transfer from capital stock
Deficit disposition
Net income (loss)
Purchases of treasury stock
Disposition of treasury stockReversal of revaluation reserve for land, net of taxes
Total changes in items during the period
Balance at the end of the period

7¥16,859¥16,859$181,201(4,855)(4,855)12,003––
16,859(52,181)(52,181)
129,009

80

83

859

4,855
(4,253)
(0)
601
682

–
–
(2)
(2)
80

52,181(45,711)
(0)
6,459
7,330

(1,145)

3,979(12,306)

4,253
2,543
0
6,797
5,651

–
(5,147)22(5,124)(1,145)45,711
27,332073,05460,737

(240)

(240)

(2,579)

(1)
0
(0)
(241)

(2)
3
0
(240)

(10)
0
(0)
(2,590)15,553

20,680167,164(4,855)
4,855
–
2,543
(1)
0
0
2,543
18,096–––(5,147)(2)
0
22(5,127)
15,553(52,181)
52,181–
27,332(10)
0
027,332
194,4965

Sumitomo Mitsui Construction Co., Ltd.
Consolidated Statements of Changes In Net Assets
March 31, 2010

Valuation, translation adjustments and other
Unrealized holding (loss) gain on securities:
Balance at the end of previous period
Changes in items during the period
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period
Land revaluation:
Balance at the end of previous period
Changes in items during the period
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period
Translation adjustments:
Balance at the end of previous period
Changes in items during the period
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period
Total valuation, translation adjustments and other:
Balance at the end of previous period
Changes in items during the period
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period
Minority interests
Balance at the end of previous period
Changes in items during the period
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period
Total net assets
Balance at the end of previous period
Changes in items during the period
Transfer to other additional paid-in capital
Transfer from capital stock
Deficit disposition
Net income (loss)
Purchases of treasury stock
Disposition of treasury stockReversal of revaluation reserve for land, net of taxes
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period

8Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 3)
(375)

585

(4,030)

413
413
37

(961)
(961)
(375)

4,438
4,438
397

58

81

623

(0)
(0)
57

(22)
(22)
58

(0)
(0)
612

(656)

(331)

(7,050)

52
52
(604)

(324)
(324)
(656)

558
558
(6,491)

(973)

335

(10,457)

464
464
(508)

(1,309)(1,309)
(973)

4,987
4,987
(5,460)

2,356

2,254

25,322

366
366
2,723

102
102
2,356

3,933
3,933
29,266

16,93623,270

182,029(4,855)
4,855
–
2,543
(1)
0
0
831
3,374
¥20,310–––(5,147)(2)
0
22(1,207)(6,334)¥16,936(52,181)
52,181–
27,332
(10)
0
0
8,931
36,263$218,2936

Sumitomo Mitsui Construction Co., Ltd.
Consolidated Statements of Cash Flows
March 31, 2010

Operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization(Decrease) increase in allowance for doubtful receivables
Decrease in accrued retirement benefits
Decrease in reserve for defects on completed construction projects
Decrease in allowance for losses on construction contracts
Increase in allowance for loss on litigation(Gain) loss on sales and disposal of property and equipment
Gain on sales of investment securities
Amortization of negative goodwill upon consolidation
Interest and dividend income
Interest expense
Exchange loss, net
Equity in (earnings) losses of affiliates
Special retirement benefits
Relocation expenses
Decrease in trade notes and accounts receivable
Decrease in inventories
Decrease in other assets
Decrease in trade notes and accounts payable(Decrease) increase in advances received on contracts in progress
Increase (decrease) in other liabilities
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Special retirement benefits
Relocation expenses
Net cash provided by operating activities
Investing activities
Increase in short-term investments
Purchases of property and equipment
Proceeds from sales of property and equipment
Purchases of intangible fixed assets
Purchases of investments in real estate
Proceeds from sales of investments in real estate
Purchases of investments in securities
Proceeds from sales of investments in securities
Increase in investments in unconsolidated subsidiaries and affiliates
Disbursements for loans
Proceeds from collection of loans
Other
Net cash (used in) provided by investing activities
Financing activities
Increase (decrease) in short-term bank loans
Increase in long-term debt
Decrease in long-term debt
Decrease in long-term loans of employees
Increase in treasury stock
Cash dividends paid for minority shareholders
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents resulting from merger of
unconsolidated subsidiaries
Cash and cash equivalents at end of the year

Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 3)
¥ 3,854
1,213
(24)
(695)
(236)
(245)
1,325
(5)
–
(0)
(394)
989
130
(36)
–
384
17,5482,638
1,957(17,979)(5,337)
149
33
5,269
882
(983)
(815)
(417)
(91)
3,845

¥ (2,227)
1,257
2,605
(2,283)
(357)
(718)
–
352
(394)
(74)
(436)
1,479
298
855
536
–
76,56721
7,565(70,323)
3,854
(223)
285
18,641480(1,382)(503)––
17,236$ 41,423
13,037(257)(7,469)(2,536)(2,633)
14,241(53)–(0)(4,234)
10,629
1,397
(386)
–
4,127
188,607
28,353
21,033(193,239)(57,362)
1,601
354
56,631
9,479(10,565)(8,759)(4,481)(978)41,326(1,026)
(865)
68
(344)
(23)
59
(4)
88
(0)
(151)
299
212
(1,689)

(218)
(668)
199
(577)
–
582
(36)
1,566
(40)
(1,682)
2,739
853
2,719

(11,027)(9,297)730(3,697)
(247)
634
(42)
945
(0)
(1,622)
3,213
2,278(18,153)2,525–(1,489)
(65)
(1)
(17)
(60)
891
(75)
2,971
23,995(20,212)2,500(3,930)
(198)
(2)
(8)
(28)
(21,880)(679)(2,604)26,50827,138–(16,003)
(698)
(10)
(182)
(644)
9,576
(806)
31,932257,899–¥ 26,96791¥ 23,995–$ 289,843

The accompanying notes are an integral part of these statements.

97

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

1.

Basis of Preparation

The accompanying consolidated financial statements of Sumitomo Mitsui Construction Co.,
Ltd. (the “Company”) and consolidated subsidiaries (collectively the “Group”) are preparedon the basis of accounting principles generally accepted in Japan, which are different incertain respects as to the application and disclosure requirements of International Financial
Reporting Standards, and have been compiled from the consolidated financial statements
prepared by the Company as required by the Financial Instruments and Exchange Law ofJapan.
Certain reclassifications have been made to present the accompanying consolidated
financial statements in a format which is familiar to readers outside Japan. In addition,certain amounts in the prior year’s financial statements have been reclassified to conform tothe current year’s presentation.
As permitted, amounts of less than one million yen have been omitted. As a result, thetotals shown in the accompanying consolidated financial statements do not necessarily
agree with the sums of the individual amounts.
2.

Summary of Significant Accounting Policies(a) Basis of Consolidation and Accounting for Investments in Unconsolidated
Subsidiaries and Affiliates
The accompanying consolidated financial statements include the accounts of theCompany and the significant companies which it controls directly or indirectly.
Companies over which the Company exercises significant influence in terms of theiroperating and financial policies have been included in the consolidated financial
statements on an equity basis. In the elimination of investments in subsidiaries, theassets and liabilities of the subsidiaries, including the portion attributable to minority
shareholders, are recorded based on the fair value at the time the Company acquired
control of the respective subsidiaries. All significant intercompany balances andtransactions have been eliminated in consolidation.
The excess of the cost over the underlying net assets at fair value at the respective
dates of acquisition of the consolidated subsidiaries (goodwill) or the excess of fairvalue of the net assets acquired over cost (negative goodwill) is charged or credited toincome in the year in which they are acquired.
Investments in affiliates which are not accounted for by the equity method are
principally stated at cost.
The Company had 14 consolidated subsidiaries, 2 unconsolidated subsidiaries and 2
affiliates accounted for by the equity method as of March 31, 2010, and 14
consolidated subsidiaries, 2 unconsolidated subsidiaries and 3 affiliates accounted forby the equity method as of March 31, 2009, respectively.

108

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(b) Securities
The accounting standard for financial instruments requires that securities be classified
into three categories: trading, held-to-maturity or other securities. Trading securities
are carried at fair value and held-to-maturity securities are carried at amortized cost.
Marketable securities classified as other securities for which market prices are
determinable are carried at fair value with any changes in unrealized holding gain or
loss, net of the applicable income taxes, included directly in net assets.
Non-marketable securities classified as other securities are carried at cost. Cost of
securities sold is determined by the moving average method.
(c) Inventories
Inventories other than materials and supplies are stated at cost determined by the
specific identification method. Materials and supplies are valued at cost determinedby the average method. Book values are written down based on any decline inprofitability.
(Change in accounting policy)
Previously, inventories were stated primarily at cost. Effective the year ended March
31, 2009, the Company has adopted “Accounting Standard for Measurement of
Inventories” (Accounting Standards Board of Japan (ASBJ) Statement No. 9 issued on
July 5, 2006). As a result of this change, operating income decreased by ¥12 million
and loss before income taxes and minority interests increased by ¥42 million for theyear ended March 31, 2009 compared with the corresponding amounts which would
have been recorded under the previous method.
(d) Depreciation and Amortization(1) Property and equipment (except leased assets) and investments in real estate
Depreciation of property and equipment (except leased assets) and investments inreal estate is determined primarily by the declining-balance method based on theestimated useful lives of the respective assets as prescribed in the Corporation
Tax Low of Japan except that the straight-line method is applied to officebuildings acquired on or after April 1, 1998.
Depreciation at all overseas subsidiaries is determined by the straight-line method
or by the declining-balance method at rates based on the estimated useful lives of
the respective assets.
(Additional information)
With an amendment to the Corporation Tax Law, effective the year ended March
31, 2009, the Company and its domestic consolidated subsidiaries have applied
useful lives in light of the amended Corporation Tax Law. The effect of thisadoption was immaterial to the consolidated statement of operations for the year
ended March 31, 2009.

119

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(2) Intangible fixed assets (except leased assets)
Amortization of intangible fixed assets (except leased assets) is calculated by thestraight-line method based on the estimated useful lives of the respective assets asprescribed in the Corporation Tax Law of Japan. Amortization of computer
software for internal use is calculated by the straight-line method over theestimated useful lives of 5 years.
(3) Leased assets
Depreciation of leased assets under finance leases other than those that transfer
the ownership of the leased assets to the lessees is calculated by the straight-line
method over the lease term with a residual value of zero.
Finance leases other than those that transfer the ownership of the leased assets tothe lessees, whose commencement dates are on or before March 31, 2008,
continue to be accounted for in a similar manner as operating leases. See Note 4.
(e) Allowance for Doubtful Receivables
The allowance for doubtful receivables is provided for future losses on general
receivables at an amount calculated by applying the percentage of actual losses oncollection experienced in the past, and an uncollectible amount for doubtfulreceivables estimated based on an individual assessment of each receivable andprobability of collection.
(f)Advances Received on Contracts in Progress
As is customary in Japan, the Company and its domestic consolidated subsidiaries
receive payments from customers on an installment basis in accordance with the termsof the respective construction contracts.

(g) Reserve for Defects on Completed Construction Projects
A reserve has been provided at an estimated amount for the fiscal year’s sales
proceeds in order to cover the liability for future costs of defects of the completed
construction projects.
(h) Allowance for Losses on Construction Contracts
An allowance has been provided based on the estimated amount for the future losses
on construction projects in progress at the fiscal year end which are anticipated to be
substantial losses in the future.
(i)

Allowance for Loss on Litigation
An allowance has been provided for future losses on pending litigation at an estimatedamount calculated based on specific circumstances.

1210

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(j)

Employees’ Retirement Benefits
Accrued retirement benefits for employees are provided principally at an amountcalculated based on the retirement benefit obligation and the fair value of the pension
plan assets, as adjusted for the unrecognized net retirement benefit obligation attransition, unrecognized actuarial gain or loss and unrecognized prior service cost.
The net retirement benefit obligation at transition is being amortized principally over a
period of 15 years. Actuarial gain or loss is amortized in the year following the year
in which the gain or loss is recognized, primarily by the straight-line method over a
period of 11 years.

(k) Recognition of Revenues and Costs on Construction Contracts
Revenues and costs of construction contracts that commenced on or after April 1, 2009,of which the percentage of completion can be reliably estimated, are recognized by thepercentage-of-completion method. The percentage of completion is calculated at thecost incurred as a percentage of the estimated total cost. The completed-contract
method is applied for contracts for which the percentage of completion cannot be
reliably estimated.
Revenues and costs of construction contracts of the Company and certain subsidiaries
that commenced on or before March 31, 2009, which cover a construction period
longer than 12 months are, in principle, also recognized by thepercentage-of-completion method, except for revenue on long-term contracts which
total less than ¥500 million.
(Change in accounting policy)
Effective the year ended March 31, 2010, the Company has adopted “AccountingStandard for Construction Contracts” (ASBJ Statement No. 15 issued on December 27,2007), and “Guidance on Accounting Standard for Construction Contracts” (ASBJ
Guidance No. 18 issued on December 27, 2007).
Under the new accounting standard and guidance, revenues and costs of construction
contracts that commenced on or after April 1, 2009, of which the percentage ofcompletion can be reliably estimated, are recognized by the percentage-of-completion
method. The percentage of completion is calculated at the cost incurred as apercentage of the estimated total cost. The completed-contract method continues tobe applied for contracts for which the percentage of completion cannot be reliably
estimated.
As a result of this change, net sales increased by ¥21,702 million ($233,254 thousand),
operating income increased by ¥2,175 million ($23,377 thousand), and income before
income taxes increased by ¥2,195 million ($23,592 thousand) for the year ended
March 31, 2010 compared with the corresponding amounts which would have beenrecorded under the previous method.

13

11

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(k) Recognition of Revenues and Costs on Construction Contracts (continued)
Until the year ended March 31, 2009, revenues and costs of construction contracts,
which cover a construction period longer than 12 months, were in principle,
recognized by the percentage-of-completion method, except for revenue on long-term
contracts which totaled less than ¥500 million. Net sales on such contracts amounted
to ¥243,671 million for the year ended March 31, 2009.
(l)

Recognition of Income from Finance Leases
Income from finance leases is recorded as sales and cost of sales at the time a lease
payment is received.

(m) Consumption Taxes
Consumption taxes are accounted for by the tax exclusion method.
(n) Income Taxes
Deferred tax assets and liabilities are determined based on the differences between theamounts calculated for financial reporting purposes and the tax bases of the assets andliabilities and are measured using the enacted tax rates and laws which will be in effectwhen the differences are expected to reverse.
The Company files a tax return under the consolidated corporate-tax system.
(o) Cash Equivalents
All highly liquid investments with a maturity of three months or less when purchased,
which can easily be converted to cash and are subject to little risk of change in value,
are considered cash equivalents.
3.

U.S. Dollar Amounts

The translation of yen amounts into U.S. dollar amounts is included solely for theconvenience of readers outside Japan and has been made, as a matter of arithmetic
computation only, at ¥93.04 = U.S.$1.00, the approximate rate of exchange in effect on
March 31, 2010. This translation should not be construed as a representation that yen
have been, could have been, or could in the future be, converted into U.S. dollars at that or
any other rate.

1412

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

4. Changes in Accounting Methods(a) Effective the year ended March 31, 2010, the Company has adopted “Partial
Amendments to Accounting Standard for Retirement Benefits (Part 3)” (ASBJ
Statement No. 19 issued on July 31, 2008).
The effect of this adoption has no impact on the consolidated statement of operations
for the year ended March 31, 2010, nor has the amount of the retirement benefit
obligation changed.
(b) Effective the year ended March 31, 2009, the Company has adopted “Practical
Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (ASBJ Practical Issues Task Force (PITF) No. 18
issued on May 17, 2006).
The effect of this adoption has no impact on the consolidated statement of operations
for the year ended March 31, 2009.
(c) Previously, finance leases other than those that transfer the ownership of the leased
assets to the lessees had previously been accounted for in a similar manner as
operating leases. However, effective the year ended March 31, 2009, the Company
has adopted “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13
issued on June 17, 1993 with the final revision issued on March 30, 2007) and“Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16
issued on January 18, 1994 with the final revision issued on March 30, 2007). Under
the new accounting standard and guidance, finance leases other than those that transfer
the ownership of the leased assets to the lessees are accounted for as sale and purchasetransactions.
The effect of this adoption has no impact on the consolidated statement of operations
for the year ended March 31, 2009.
Finance leases other than those that transfer the ownership of leased assets to thelessees, of which commencement dates are on or before March 31, 2008, areaccounted for in a similar manner as operating leases.

15

13

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

5.

Notes to Consolidated Balance Sheets(a) Inventories
The components of inventories as of March 31, 2010 and 2009 were as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Merchandise and finished goods
Materials and supplies
Costs on uncompleted construction
contracts
Real estate for sale

¥

501
1,503

21,962
135¥24,103

¥

576
1,093

24,946
139¥26,755$

5,384
16,154

236,049
1,450$259,060(b) Investments in Real Estate“Investments in real estate” includes accumulated depreciation in the amount of ¥587
million ($6,309 thousand) and ¥555 million at March 31, 2010 and 2009, respectively.
(c) Pledged Assets
The following assets were pledged at March 31, 2010 principally as collateral for
short-term bank loans, long-term debt, and guarantees (such as guarantees for thecompletion of construction contracts):
As of March 31,
2009
2010
2010
(Millions of yen)(Thousands of
U.S. dollars)
Cash and deposits
Trade notes and accounts receivable
Land
Buildings and structures, net ofaccumulated depreciation
Machinery, equipment and vehicles,
net of accumulated depreciation
Investments in securities
Investments in real estate¥ 2,493
3,401
12,961¥67
2,151
12,807$ 26,794
36,554
139,305

1,498

1,536

16,100

119
2,001
3,365
¥25,841

166
1,624
3,397
¥21,752

1,279
21,50636,167$277,740

16

14

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(c) Pledged Assets (continued)
Of the above property and equipment, assets that were held in mortgage for factory
foundations at March 31, 2010 and 2009 are summarized as follows:
As of March 31,
2009
2010
2010
(Millions of yen)(Thousands of
U.S. dollars)
Land
Buildings and structures, net ofaccumulated depreciation
Machinery, equipment and vehicles,
net of accumulated depreciation¥1,236¥1,236$13,284

285

310

3,063

119
¥1,642166¥1,713

1,279$17,648

The secured liabilities as of March 31, 2010 and 2009 are summarized as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Short-term bank loans[Including current portion of
long-term debt]
Long-term debt
Deposits received
Other current liabilities
Other long-term liabilities¥5,757¥3,218$61,876

[876]
1,197
100
–
525

[2,239]
2,073
–
100
625

[9,415]
12,865
1,074
–
5,642

(d) Land Revaluation
Land for operations was revalued by a consolidated subsidiary under the Law for Land
Revaluation during the year ended March 31, 2001. The revaluation amount isshown as a separate component of net assets.
The market value of the land was ¥662 million ($7,115 thousand) and ¥603 million
more than the revalued book amount at March 31, 2010 and 2009, respectively.

17

15

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(e) Contingent Liabilities
At March 31, 2010 and 2009, the Company and consolidated subsidiaries were
contingently liable for the followings:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
As guarantors of bank loans tocustomers, unconsolidated subsidiaries,
an affiliate and employees
As endorsers of notes receivableendorsed to vendors(f)¥3,576¥3,920$38,435

10

40

107

Estimated Loss on Uncompleted Construction Contracts
An estimated loss on uncompleted construction contracts was recognized and included
as part of inventories but was not offset against the amount on the balance sheet. It
has been recorded as an allowance for losses on construction contracts in the amountof ¥159 million ($1,708 thousand) as of March 31, 2010.

6.

Notes to Consolidated Statements of Operations(a) Net sales based on percentage-of-completion method
Net sales on such construction contracts amounted to ¥213,404 million ($2,293,680
thousand) for the year ended March 31, 2010.
(b) Allowance for losses on construction contracts included in cost of sales
The allowance for losses on construction contracts was included in cost of sales in theamount of ¥327 million ($3,514 thousand) for the year ended March 31, 2010.
(c) Selling, General and Administrative Expenses
The significant components of selling, general and administrative expenses at March
31, 2010 and 2009 were as follows:
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Salaries and wages
Retirement benefit expenses
Rent
Provision for doubtful receivables
Other
Total

¥ 6,849
1,197
2,080
81
6,327
¥16,537¥ 8,009
1,349
2,154
–
7,120
¥18,634$ 73,613
12,86522,355870
68,003$177,740

18

16

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(d) Research and Development Expenses
Research and development costs included in selling, general and administrative
expenses and manufacturing costs amounted to ¥1,015 million ($10,909 thousand) and¥1,144 million for the years ended March 31, 2010 and 2009, respectively.
(e) Special Retirement Benefits
Special retirement benefits and outplacement expenses were due to the implementationof the voluntary retirement scheme in the year ended March 31, 2009.
(f)

Relocation Expenses
Relocation and integration expenses for head office and branches located around theTokyo metropolitan area have been recognized for the year ended March 31, 2010.

7.

Notes to Consolidated Statements of Charges in Net Assets(a) Type and number of shares issued and treasury stocks(1) For the year ended March 31, 2010
Balance at
March 31,2009
Shares issued:
Common stock
2nd Series Class A preferred stock
3rd Series Class C preferred stock
3rd Series Class D preferred stock
Total

275,097,086
4,500,000
5,868,700
5,961,900
291,427,686

Increase
Decrease(Number of shares)
216,512–––
216,512

–
–
7,500
–
7,500

Balance at
March 31,2010
275,313,598
4,500,000
5,861,200
5,961,900
291,636,698

Note 1:

Increase of common stock is due to acquisition of common stock by exercising a call optionof the 3rd Series Class C preferred stock.

Note 2:

Decrease of preferred stock is due to redemption of 3rd Series Class C preferred stock toacquire common stock by exercising a call option.
Balance at
March 31,
2009

Treasury shares:
Common stock
3rd Series Class C preferred stock
Total

411,183–
411,183

Increase
Decrease(Number of shares)
14,7227,500
22,222

669
7,500
8,169

Balance at
March 31,2010
425,236–425,236

Note 1:

Increase of common stock is due to the purchase of fractional shares.

Note 2:

Decrease of common stock is due to the sale of fractional shares in response to requests topurchase fractional shares.

Note 3:

Increase of preferred stock is due to the acquisition of common stock by exercising a call
option of the 3rd Series Class C preferred stock.

Note 4:

Decrease of preferred stock is due to redemption of 3rd Series Class C preferred treasury
stock to acquire common stock by exercising a call option.

19

17

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(a) Type and number of shares issued and treasury stocks (continued)(2) For the year ended March 31, 2009
Balance at
March 31,2008
Shares issued:
Common stock
1st Series preferred stock
2nd Series Class A preferred stock
3rd Series Class C preferred stock
3rd Series Class D preferred stockTotal

271,242,956
870,000
4,500,000
5,868,700
6,000,000
288,481,656

Increase
Decrease(Number of shares)
3,854,130––––
3,854,130–
870,000––
38,100908,100

Balance at
March 31,2009
275,097,086–
4,500,000
5,868,700
5,961,900
291,427,686

Note 1:

Increase of common stock is due to acquisition of common stock by exercising a call optionof the 1st Series preferred stock and the 3rd Series Class D preferred stock.

Note 2:

Decrease of preferred stock is due to redemption of 1st Series preferred stock and 3rd Series
Class D preferred stock to acquire common stock by exercising a call option.
Balance at
March 31,
2008

Treasury shares:
Common stock
1st Series preferred stock
3rd Series Class D preferred stock
Total

377,598––
377,598

Increase
Decrease(Number of shares)
38,827870,000
38,100946,927

Balance at
March 31,
2009

5,242
870,000
38,100913,342

411,183––
411,183

Note 1:

Increase of common stock is due to the purchase of fractional shares.

Note 2:

Decrease of common stock is due to the sale of fractional shares in response to requests topurchase fractional shares.

Note 3:

Increase of preferred stock is due to the acquisition of common stock by exercising a call
option of the 1st Series preferred stock and the 3rd Series Class D preferred stock.

Note 4:

Decrease of preferred stock is due to redemption of 1st Series preferred treasury stock and3rd Series Class D preferred treasury stock to acquire common stock by exercising a call
option.

(b) Dividends:
For the year ended March 31, 2010 and 2009, there were no dividends paid toshareholders.
Dividends with the cut-off date in the year ended March 31, 2010 and theeffective date in the year ending March 31, 2011, were as follows:

Resolution

Total dividends Dividends(millions ofper share
yen)
(yen)

Type of shares

Annual general 2nd Series Class A preferred stock
meeting of the 3rd Series Class C preferred stock
shareholders on 3rd Series Class D preferred stock
June 29, 2010

¥ 38
394
400
¥833

¥ 8.4567.25
67.25

Cut-off
date

Effectiv
e dateMarch 31, June 30,
2010
2010

20

18

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 20108.

Notes to Consolidated Statements of Cash Flows(a) Cash and Cash Equivalents
Cash and cash equivalents at March 31, 2010 and 2009 were as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Cash and deposits
Time deposits with maturities of overthree months
Cash and cash equivalents
9.

¥29,768¥25,296$319,948(2,801)¥26,967(1,301)¥23,995(30,105)$289,843

Leases

The following pro forma amounts represent the acquisition costs, accumulated depreciation/ amortization and net book value of the leased property as of March 31, 2010 and 2009,
which would have been reflected in the consolidated balance sheets if finance leaseaccounting had been applied to the finance leases currently accounted for as operatingleases:(a) As lessee:(1) Finance leases (of which commencement dates were prior to the initial year of
application of change in accounting method)
2010
Machinery,equipment Intangible
and
fixed
vehiclesassetsAcquisition costs
Accumulated depreciation/ amortization
Net book value

2009
Machinery,equipment Intangible
fixed
and
Total
assetsvehicles(Millions of yen)

Total

¥774

¥173

¥947

¥1,032¥268¥1,300

358
¥415

113
¥ 59

472
¥475

459
¥ 572

157
¥111

617
¥ 683

2010
Machinery,equipment Intangible
and
fixed
Total
vehiclesassets(Thousands of U.S. dollars)
Acquisition costs
Accumulated depreciation/ amortization
Net book value$8,319$1,859$10,178

3,847$4,460

1,214
$ 634

5,073
$ 5,10521

19

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(a) As lessee (continued):
2010
2009
(Millions of yen)
Future minimum payments:
Within one year
Over one year
Lease payments
Depreciation / amortizationequivalents
Interest expense equivalents

2010(Thousands of
U.S. dollars)

¥157
340
¥498

¥201
506
¥708

$1,687
3,654$5,352¥220¥326$2,364

192
26

288
36

2,063
279

Depreciation / amortization equivalents are computed by the straight-line method
over the respective lease terms with a residual value of zero.
The difference between total lease expenses and acquisition costs of the leased
assets comprise interest equivalents. Interest equivalents are computed by theinterest method over the respective lease terms.
(2) Operating leases
2010
2009
(Millions of yen)
Future minimum payments:
Within one year
Over one year

¥11
10
¥21

¥14
21
¥35

2010
(Thousands of
U.S. dollars)
$118
107
$225

(b) As lessor:(1) Finance leases (of which the commencement dates prior to the initial year of
application of change in accounting method)
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Machinery and equipment
Acquisition costs
Accumulated depreciation/ amortization
Net book value

¥27

¥51

$290

19
¥ 7

32
¥19

204
$ 75

22

20

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(b) As lessor (continued):
2009
2010
(Millions of yen)
Future minimum receivable:
Within one year
Over one year

¥ 7
6
¥13

¥10
13
¥24

2010
(Thousands of
U.S. dollars)
$ 75
64
$139

Future minimum receivable are computed by the interest-inclusive method, since
the balance of future minimum payments accounts for a minimal portion of tradeaccounts at the end of fiscal year.
2009
2010
(Millions of yen)
Lease receivable
Depreciation / amortization

¥9
8

¥15
12

2010
(Thousands of
U.S. dollars)
$96
85

23

21

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

10. Financial Instruments
Financial instruments at March 31, 2010 are summarized as follows:(a) Overview(1) Policy for financial instruments
The Group limits investments of surplus funds to the short-term bank deposits,
and raises necessary funds through bank loans.
(2) Types of financial instruments and related risk and risk management system
Trade notes and accounts receivable are exposed to credit risk in relation tocustomers and trading partners. Also, the Group’s main investments insecurities are shares of companies, and they are exposed to market pricefluctuation risk.
The management of credit risks (Risks in relation to default of customers and trading
partners)
The Company has systems enabling the management of due dates and balances oftrade notes and accounts receivable for individual customers and trading partners andmonitors their credit status. These systems enable the Group to identify any concerns
for doubtful receivables at an early stage and reduce risks of uncollectible amounts.
Consolidated subsidiaries also manage credit risks in the same manner as theCompany. The Company minimizes credit risks by mainly holding held-to-maturity
securities with high credit ratings.
Management of market risks (Risks in relation to fluctuation of currency exchange andinterest rates)
The Company and certain consolidated subsidiaries hold trade receivables in foreign
currencies. However, risk of fluctuations in the currency exchange rate is not
significant because a similar amount of trade payables are also held.
Loan payables are mainly for short-term operating funds. The Group manages loan
payables to flexibly plan or revise its fund management plans.
(3) Supplementary explanation of the fair value of financial instruments
The fair values of financial instruments include prices based on market prices, or,if no market prices are available, they include estimated amounts. Because
estimations of the fair value incorporate various factors, applying different
assumptions can in some cases result in different fair values.

24

22

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(b) Fair value of financial instruments
Amounts recognized in the consolidated balance sheet, market value, and thedifference on March 31, 2010, are as shown below. Moreover, items for which it isextremely difficult to determine fair values are not included in the following table (seeNote 2).
Carrying
value
Cash and deposits
Trade notes and accounts
receivable
Allowance for
doubtful receivables
Investments in securities
Held-to-maturity
securities
Other securities
Long-term loans
receivable
Allowance for
doubtful receivables
Claims provable inbankruptcy and other
Allowance for
doubtful receivables
Long-term non-operating
accounts receivable
Allowance for
doubtful receivables
Total assets
Trade notes and accounts
payableShort-term bank loans
and current portion of
long-term debt
Long-term debt
Total liabilities
Note 1:¥ 29,768

2010
Fair
Carrying
Fair
value
value
value
Difference
Difference(Millions of yen)(Thousands of U.S. dollars)¥ 29,768¥–$ 319,948$ 319,948$–

102,129

1,097,689(1,104)
101,025
2,045

100,980
2,045

(44)
0

(11,865)
1,085,823
21,9791,085,339
21,979

(472)
0

9
2,035

9
2,035

0
–

96
21,872

96
21,8720–

17,680(1,859)

5,449

(0)

7,611
(5,792)
1,819

81,803

1,645

(173)

7,969
(7,461)
507(62,252)
19,55085,651507(0)(80,191)
5,449

45,104

484,780(40,421)
4,683
139,848

4,635
139,582

(48)
(266)

(434,447)
50,333
1,503,095

49,8171,500,236(515)(2,858)122,336

122,336–

1,314,875

1,314,875

–

6,642
1,197
¥130,175

6,653
1,163
¥130,153

11(33)¥ (22)

71,38812,865$1,399,129

71,506
12,500$1,398,892

118
(354)
$ (236)

Calculation of the fair value of financial instruments and other matters related to investment securities.

25

23

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(b) Fair value of financial instruments (continued)
Assets(1) Cash and deposits
Because settlement periods of deposits are short and their market values are almost
the same as their book values, the book values are used.
(2) Trade notes and accounts receivable
The fair values are determined using the present value of discounted collectible
principal and interest amounts estimated reflecting their collectability based on an
appropriate rate in which a credit spread is added to a risk-free benchmark rate
(such as a government bond yield) corresponding to the remaining term.
(3) Investments in securities
Concerning the market value of investment securities, the market value for stock is
the price quoted on the stock exchange, and the market value for bonds is the priceprovided by financial institutions.
In addition, for matters concerning to securities, see “Notes on investment
securities.”(4) Long-term loans receivable, (5) Claims provable in bankruptcy and other and(6) Long-term non-operating accounts receivable
These fair values are determined using the present value of discounted collectible
principal and interest amounts estimated reflecting their collectability, based on an
appropriate rate in which a credit spread is added to a risk-free benchmark rate
(such as a government bond yield) corresponding to the remaining term. Further,
the fair value of doubtful debts are determined by discounting the value of
expected cash flows using the same discount rate, or estimated collectible amountsecured by collateral or guaranteed.
Liabilities(1) Trade notes and accounts payable
Because settlement periods are short and their market values are almost the sameas their book values, the book values are used.
(2) Short-term bank loans
The carrying amount of the current portion of long-term debt approximates fairvalue since the carrying amount is equivalent to the present value of future cash
flows discounted using the current borrowing rate for similar debt with acompatible maturity. For borrowings other than the current portion of long-term
debt, the carrying amount approximates fair value due to the short maturities ofthese instruments.

26

24

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(b) Fair value of financial instruments (continued)(3) Long-term debt
Fair value of long-term debt is based on the price provided by financial institutionsor the present value of future cash flows discounted using the current borrowing
rate for similar debt with a comparable maturity.
Note 2:Unlisted stock (The carrying value ¥4,114 million ($44,217 thousand)) is not included in “(3)Investments in securities” because these have no market value and it is extremely difficult to measure thefair value.

Note 3:

The redemption schedule for monetary claims and held-to-maturity debt securities with maturity dates
subsequent to the consolidated balance sheet date.
2010

Within 1
year
Deposits
Trade notes andaccounts
receivable
Investments insecurities
Held-to-maturi
ty securities(Bonds)Long-term loans
receivable
Claims provablein bankruptcy
and other (*)
Long-term
non-operating
accounts
receivable (*)¥ 29,624

Over 1
Over 5year and years andwithin 5 within 10
years
years
(Millions of yen)¥–¥Over 10
years

–

¥

Over 1
Over 5year and years andWithin 1
within 5 within 10 Over 10
year
years
years
years
(Thousands of U.S. dollars)–$ 318,400

$

–

$

–

$

–

96,575

4,449

–

–

1,037,994

47,818

–

–

–

9

–

–

–

96

–

–

29

18

784

987

311

193

8,426

10,608

21

6

–

–

225

64

–

–

979
¥127,231

1,543¥6,027

0
¥784

–
¥987

10,522$1,367,487

16,584$64,778

0$8,426–$10,608(*) The fair values of these items are extremely difficult to determine. This table does not include the amount of¥479 million ($5,148 thousand) out of claims provable in bankruptcy and other and the amount of ¥2,160
million ($23,215 thousand) out of long-term non-operating accounts receivable.
Note 4:

The redemption schedule for corporate bonds, long-term debt, and other interest bearing debt withmaturity dates subsequent to the consolidated balance sheet date. See note 18.

(Additional information)
Effective the year ended March 31, 2010, the Company has adopted “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10 issued on March 10,2008), and “Guidance on Disclosures about Fair Value of Financial Instruments”(ASBJ Guidance No. 19 issued on March 10, 2010).

27

25

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

11. Securities
Securities at March 31, 2010 and 2009 are summarized as follows:(a) Held-to-maturity securities
Carrying
value
Securities whose fairvalue exceeds theircarrying value:
Bonds

¥9

Carrying
value
Securities whose fairvalue does notexceed their carrying
value:
Bonds

¥9

2010
Fair
Unrealized Carrying
Fair
Unrealized
value
gain
value
value
gain
(Millions of yen)(Thousands of U.S. dollars)

¥9

¥0

$96

$96

$0

2009
Fair
Unrealized
value
gain
(Millions of yen)

¥9¥0(b) Other securities

Cost
Unrealized gain:
Stock
Unrealized loss:
Stock
Total

¥1,064

¥ 835

¥ 229

$11,435$ 8,974$ 2,461970¥2,035

1,117¥1,953(147)¥ 82

10,425$21,872

12,005$20,990(1,579)$ 881

Cost
Unrealized gain:
Stock
Unrealized loss:
Stock
Total

2010
Balance
Balance
Unrealized
Unrealized
sheet
sheet
Cost
gain (loss)
gain (loss)
amountamount(Millions of yen)(Thousands of U.S. dollars)

2009
Balance
Unrealized
sheet
gain (loss)
amount(Millions of yen)

¥ 292

¥ 303

¥ 11

1,726
¥2,0181,353¥1,657(372)¥(361)(c) Sales of securities classified as other securities
2009
2010
(Millions of yen)
Sales amount-stock
Aggregate gain-stock¥78
9¥1,291
335

2010(Thousands of
U.S. dollars)
$838
96

28

26

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010(d) Major components and book value of securities without market value
2009(Millions of yen)
Other securities:
Unlisted stock
Investments in unconsolidated subsidiaries and affiliates¥2,6831,317(e) Redemption schedule for held-to maturity securities
2009
Over 1 year Over 5 years
and within 5 and within
years
10 years(Millions of yen)

Within 1
year
Bonds

¥–

¥9

¥–

Over 10years¥–

12. Retirement Benefit Plans
The Company and its consolidated subsidiaries have lump-sum retirement benefit planscovering substantially all employees who are entitled to lump-sum or annuity payments, theamounts of which are determined by reference to their basic rates of pay, length of service
and the conditions under which termination occurs.
The following table sets forth the funded and accrued status of the plans, and the amounts
recognized in the consolidated balance sheets at March 31, 2010 and 2009 for theCompany’s and the consolidated subsidiaries’ defined benefit plans:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Unrecognized net retirement benefit
obligation at transition
Unrecognized actuarial loss
Unrecognized prior service cost
Net retirement benefit obligation
Prepaid pension costAccrued retirement benefits¥(27,351)
370(26,980)¥(30,457)
364(30,092)$(293,970)
3,976(289,982)

9,917
1,909
158
(14,994)2¥(14,996)

11,901
2,301
221(15,669)
21¥(15,690)

106,588
20,518
1,698(161,156)
21$(161,177)

29

27

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

The components of retirement benefit expenses for the years ended March 31, 2010 and2009 are outlined as follows:
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)Service cost
Interest cost
Expected return on plan assets
Amortization of net retirement benefit
obligation at transition
Amortization of actuarial loss
Amortization of prior service cost
Total retirement benefit expenses¥1,230721(1)¥1,421821(2)$13,220
7,749
(10)

1,983
429
62
¥4,426

1,989
381
62
¥4,67521,313
4,610
666$47,570

Additions to the above retirement benefit expenses, special retirement benefits andoutplacement expenses related to a voluntary retirement scheme amounted to ¥557 million($5,670 thousand) for the year ended March 31, 2009.
The principal assumptions used for the above plans were as follows:
2010
Discount rate
Expected rate of return on plan assets
Amortization period for prior service
cost
Amortization period for actuarial
differences
Period for recognition of net retirement
benefit obligation at transition

30

2009

Principally 2.5%
1.0%

Principally 2.5%
2.0%

Principally 11 years

Principally 11 years

Principally 11 years

Principally 11 years

Principally 15 years

Principally 15 years

28Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 201013.

Income Taxes

The significant components of deferred tax assets and liabilities at March 31, 2010 and2009 were as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Deferred tax assets:
Tax loss carryforwards
Accrued retirement benefits
Allowance for bad debts
Allowance for loss on litigation
Reserve for defects on completed
construction projects
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on securities
Other
Total deferred tax liabilities
Net deferred tax assets¥ 82,652
6,097
3,935
539

¥ 89,446
6,382
4,140
–

$ 888,349
65,53042,293
5,793

506
3,033
96,764(91,768)
4,996

601
3,202
103,773(98,788)
4,984

5,438
32,5981,040,025(986,328)
53,697

(35)
(18)
(53)
4,942

(1)
(23)
(24)
4,960

(376)
(193)
(569)
53,116¥¥$

The following table summarizes the significant differences between the statutory tax rate
and the effective tax rate at March 31, 2010:
March 31, 2010
Statutory tax rate
Non-deductible expenses
Non-taxable income
Per capita inhabitants’ taxes
Valuation allowance
Adjustments related to consolidation
Other
Effective tax rate

40.7%
4.6
(1.0)
(1.5)
(17.2)
(0.4)
(1.0)
24.2%

A reconciliation of the statutory and effective tax rate for the year ended March 31, 2009has been omitted because a net loss for the year then ended was recorded.

31

29

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

14. Investment and Rental Property(a) Types of investment and rental property
A consolidated subsidiary maintains warehouses available for rent including land in
Saitama prefecture. Gains on investment and rental property for the year ended
March 31, 2010 was ¥134 million ($1,440 thousand).
(b) Fair value of investment and rental property
The book value, net increase (decrease) and fair value of investment and rental
property for the year ended March 31, 2010 were as follows:
2010
Book value

Book value
Balance asofprevious
fiscalyear-end¥3,397

Balance as Fair valueNetof current as of current
increase
fiscalfiscal(decrease)year-end
year-end(Millions of yen)¥(31)

¥3,365¥2,857

Balance asofprevious
fiscalyear-end$36,511

Balance as Fair valueNetof current as of current
increase
fiscalfiscal(decrease)year-end
year-end(Thousands of U.S. dollars)$(333)$36,167$30,707Note 1:

The consolidated amount is acquisition cost less accumulated depreciation and accumulated
impairment loss.

Note 2:

Net decrease mainly consists of depreciation in the amount of ¥31 million ($333 thousand)Note 3:

Fair values are calculated based on the appraisal value for major property.

(Additional information)
Effective the year ended March 31, 2010, the Company has adopted “AccountingStandard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ
Statement No. 20 issued on November 28, 2008), and “Guidance on AccountingStandard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ
Guidance No. 23 issued on November 28, 2008).

32

30

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

15.

Segment Information

The Company and consolidated subsidiaries are primarily engaged in construction business,both in Japan and overseas.
Business segments
Business segment information has been omitted for the year ended March 31, 2009 and2010 as sales, operating income and total assets of the construction segment constituted
over 90% of the consolidated totals for the years then ended.
Geographic segments
Geographic segment information has been omitted for the year ended March 31, 2009 and2010 as sales, operating income and total assets in Japan constituted over 90% of theconsolidated totals for the years then ended.
Overseas sales
Overseas sales information for the Company and consolidated subsidiaries for the year
ended March 31, 2010 is summarized below:
2010
Asia
Overseas sales
Consolidated sales
Overseas sales asa percentage ofconsolidated sales (%)

Other
Total
(Millions of yen)

¥31,839¥2,778¥ 34,617
336,476

9.5

0.8

10.3

Asia
Other
Total
(Thousands of U.S. dollars)$342,207

Note 1:Countries and areas are segmented based on their geographic proximity.

Note 2:Major countries and areas that belong to segments are as follows:(1) Asia ............... Singapore, India, Vietnam, Thailand, Philippines(2) Other ............. U.S.A., Guam, Kenya

Note 3:

Overseas sales represent sales to countries and regions outside of Japan.

$29,858$ 372,065
3,616,466

Overseas sales information has been omitted for the year ended March 31, 2009 as overseas
sales was less than 10% of the consolidated totals for the year then ended.

33

31

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 201016.

Related Party Transactions

Transactions with affiliates for the year ended March 31, 2010 are summarized as follows:Year ended March 31, 2010

Affiliated company:
Yoshiikikaku Co., Ltd.
(Real estate business)

Capitalcontributionof the related
party

Number of
voting shares
held as apercentage ofvoting sharesissued¥1030.0%Capitalcontributionof the related
party

Number of
voting shares
held as apercentage ofvoting sharesissued

$107

30.0%

Nature ofTotal amounttransactionof transaction(Millions of yen)
Guarantee ofbank loan¥2,847

Balance sheet Balance at theaccount
year end

Long-term
non-operationaccounts
receivable¥609

Year ended March 31, 2010

Affiliated company:
Yoshiikikaku Co., Ltd.
(Real estate business)

Nature ofTotal amounttransactionof transaction(Thousands of U.S. dollars)

Balance sheet Balance at theaccount
year end

Guarantee ofbank loan

Long-term
non-operationaccounts
receivable$30,599$6,545

Transactions with affiliates for the year ended March 31, 2009 are summarized as follows:Year ended March 31, 2009

Affiliated company:
Yoshiikikaku Co., Ltd.
(Real estate business)

Capitalcontributionof the related
party

Number of
voting shares
held as apercentage ofvoting sharesissued¥1030.0%Nature ofTotal amounttransactionof transaction(Millions of yen)
Guarantee ofbank loan¥2,903

Balance sheet Balance at theaccount
year end

Long-term
non-operationaccounts
receivable¥630(Additional information)
Effective the year ended March 31, 2009, the Company has adopted “Accounting Standard
for Related Party Disclosures” (ASBJ Statement No. 11 issued on October 17, 2006), and“Guidance on Accounting Standard for Related Party Disclosures” (ASBJ Guidance No. 13
issued on October 17, 2006). There were no changes to the scope of disclosure for related
party transactions as a result of the adoption of this standard.

34

32

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 201017.

Per Share Information

Net assets and basic net income (loss) per share as of and for the years ended March 31,
2010 and 2009 were as follows:2010
Net assets per share
Net income (loss) per share – basic
Net income per share – diluted(Yen)¥(54.76)
6.22
4.32

2009

2010
(U.S. dollars)¥(62.79)(18.86)–$(0.588)
0.066
0.046

Diluted net income per share is not presented for the years ended March 31, 2009 due to thefact that a net loss was recorded.
The basis of calculation for net assets per share at March 31, 2010 and 2009 was as follows:
2009
2010
(Millions of yen)
Total net assets
Amounts deducted from total net assets[Including paid-in amounts for sharesof preferred stock][Including amount of preferred
dividends][Including minority interests]
Total net assets for common stock2010(Thousands of
U.S. dollars)¥ 20,310
35,364¥ 16,936
34,183$ 218,293
380,094[31,807][31,826][341,863][833][2,723]¥(15,053)[–][2,356]¥(17,246)[8,953][29,266]$(161,790)(Thousands of shares)

Number of shares of common stock
used to determine net assets per share

274,888274,685

The basis for calculating basic net income (loss) per share for the years ended March 31,
2010 and 2009 was as follows:
2009
2010
(Millions of yen)
Net income per share – basic:
Net income (loss)
Amount not available to commonshareholders[Including amount of preferred
dividends]
Net income (loss) per share – basic

2010(Thousands of
U.S. dollars)¥2,543¥(5,147)$27,332

833

–

8,953

[833]
¥1,710[–]¥(5,147)[8,953]$18,379(Thousands of shares)

Average number of shares of common
stock outstanding

274,857

272,908

35

33

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

2009
2010
(Millions of yen)
Net income per share – diluted:
Adjustment for net income[Including amount of preferred
dividends]
Increase in number of share of common
stock[Including preferred stock]
18.

2010
(Thousands of
U.S. dollars)

¥833

¥–

$8,953[833][–][8,953](Thousands of shares)
313,538[313,538]–[–]

Short-Term Bank Loans and Long-Term Debt

Short-term bank loans generally represent notes, principally at average annual interest rates
of 1.9% and 1.7% at March 31, 2010 and 2009, respectively.
Long-term debt at March 31, 2010 and 2009 is summarized as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Debt with collateral (at average interest
rates of 2.8% at 2010 and 2.8% at 2009)
Debt without collateral (at average interest
rates of 2.4% at 2010 and 2.4% at 2009
Lease obligations
Current portion (excluding leaseobligations)
Current portion of lease obligations
Deposits from employees¥2,073¥ 3,513$22,280

50
228

100
190

537
2,450

(926)
(63)
1,608
¥2,976(1,489)(44)
1,674¥ 3,944(9,952)(677)
17,282$31,986

The aggregate annual maturities of long-term debt subsequent to March 31, 2010 are
summarized as follows:Year ending March 31,
2011
2012
2013
2014 and thereafter

36(Millions ofyen)(Thousands of
U.S. dollars)

¥ 926
856
37
303
¥2,123$ 9,952
9,200
397
3,256
$22,818

34

Sumitomo Mitsui Construction Co., Ltd.
Notes to Consolidated Financial Statements
March 31, 2010

The aggregate annual maturities of lease obligations subsequent to March 31, 2010 are
summarized as follows:Year ending March 31,
2011
2012
2013
2014 and thereafter

37(Millions ofyen)(Thousands of
U.S. dollars)

¥ 63
52
41
71
¥228

$ 677
558
440
763
$2,45035

38

Non-Consolidated Financial Statements
Sumitomo Mitsui Construction Co., Ltd.
Years ended March 31, 2010 and 2009
with Report of Independent Auditors

39

Sumitomo Mitsui Construction Co., Ltd.
Non-Consolidated Balance Sheets
March 31, 2010
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 2)

AssetsCurrent assets:
Cash and deposits (Note 4-3)
Notes receivable (Note 4-3)
Accounts receivable on completed contracts (Note 4-3)
Short-term loans receivable (Note 4-2)
Inventories (Notes 4-1 and 4-5)
Deferred tax assets (Note 9)
Accounts receivable, other
Advance payments
Other current assets (Note 4-3)
Less allowance for doubtful receivables
Total current assets¥ 19,648
1,426
84,8898,211
20,548
2,900
2,326
9,786
2,905
(2,399)150,242¥ 16,964
3,428
105,863
7,989
24,654
2,000
3,247
9,259
4,863
(5,110)173,160$ 211,177
15,326912,392
88,252
220,851
31,16925,000105,180
31,223(25,784)
1,614,810

Non-current assets:
Property and equipment, at cost:
Land (Note 4-3)
Buildings (Note 4-3)
Structures (Note 4-3)
Machinery and equipment
VehiclesTools, furniture and fixtures
Construction in progress
Accumulated depreciation
Property and equipment, net

5,325
4,719
698
3,453
133
3,576
9
(10,090)
7,825

5,349
4,341
703
3,451
149
3,612
12
(10,021)
7,599

57,23350,7207,502
37,113
1,429
38,43596(108,447)
84,103

1,865

1,674

20,045Intangible fixed assets
Investments and other assets:
Investments in securities (Note 4-3)
Investments in subsidiaries and affiliates(Notes 4-3 and 8)
Long-term loans receivable
Long-term loans to employees
Claims provable in bankruptcy and other
Long-term prepaid expenses
Deferred tax assets (Note 9)Long-term guarantee deposits
Long-term non-operating accounts receivable
Other
Less allowance for doubtful receivables
Total investments and other assets
Total non-current assets

4,494

4,121

48,301

6,844
6,581
976
7,810
48
1,566
2,347
44,874
5,342(56,398)
24,48834,178

6,909
6,631
1,038
8,692
54
2,500
–
40,375
7,149(55,022)
22,452
31,72573,55970,733
10,49083,942515
16,831
25,225482,308
57,416(606,169)
263,198367,347

Total assets¥184,421¥204,886$1,982,168

40

3

Sumitomo Mitsui Construction Co., Ltd.
Non-Consolidated Balance Sheets
March 31, 2010

Liabilities and net assets
Current liabilities:
Short-term bank loans and current portion of long-term
debt (Notes 4-3 and 11)
Trade notes payable (Note 4-2)
Accounts payable on completed contracts (Note 4-2)
Accounts payable, otherAccrued expenses
Income taxes payable
Consumption taxes payable
Advances received on contracts in progress
Deposits received
Reserve for defects on completed construction projects
Allowance for losses on construction contracts (Note 4-5)
Allowance for loss on litigation
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 4-3 and 11)
Accrued retirement benefits
Other long-term liabilities
Total long-term liabilities

As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 2)¥

5,528
42,38062,461
2,729
1,455
268
4,389
20,872
11,999
1,223
222
1,325
1,617
156,476¥

4,180
49,774
72,154
4,953
1,447
198
5,891
27,140
7,888
1,442
448
–
1,706
177,227$

59,415455,503671,334
29,331
15,6382,880
47,173
224,333
128,966
13,144
2,386
14,241
17,3791,681,814

820
13,060124
14,005

1,660
13,890104
15,655

8,813
140,369
1,332
150,526

12,003

16,859129,009

601
601

–
–

6,459
6,459

–
1,523
1,523

109
(4,362)(4,253)–
16,36916,369(241)
13,887(240)
12,365(2,590)149,258

51
51
13,939¥184,421

(361)
(361)
12,003¥204,886

548
548
149,817$1,982,168

Contingent liabilities (Note 4-4)
Net assets:
Shareholders’ equity:
Capital stock:
Common stock:
Authorized:
2,669,464,970 shares in 2010 and 2009
Issued and outstanding:
275,313,598 shares in 2010 and
275,097,086 shares in 2009
Preferred stock:
Authorized:
26,894,644 shares in 2010 and 2009
Issued and outstanding:
16,323,100 shares in 2010 and
16,330,600 shares in 2009
Capital surplus
Other capital surplus
Total capital surpluses
Retained earnings (deficit):
Earned reserve
Earned (deficit) surplus carried forward
Total retained earnings (deficit)
Less treasury stock, at cost:
425,236 shares in 2010 and 411,183 shares in 2009
Total shareholders' equity
Valuation, translation adjustments and other:
Unrealized holding gain (loss) on securities
Total valuation, translation adjustments and otherTotal net assets
Total liabilities and net assets

See accompanying notes to non-consolidated financial statements.

41

4

Sumitomo Mitsui Construction Co., Ltd.
Non-Consolidated Statements of Operations
March 31, 2010
Years ended March 31,
2009
2010
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 2)
Net sales:
Completed construction (Note 5-1)

¥275,321¥327,258$2,959,168

Cost of sales:
Completed construction (Note 5-2)
Gross profit

258,868
16,453

310,849
16,4092,782,330
176,837

Selling, general and administrative expenses (Note 5-4)
Operating income

12,4783,974

14,4981,910

134,11442,712463
176
109(1,034)
–
(105)
48
–

829
170
–
(1,476)(188)(3,246)
74
394

4,976
1,891
1,171
(11,113)–(1,128)
515
–

–
112
–
(1,280)(384)(665)(2,560)

(502)
447
(557)
–
–
(1,710)(5,764)–
1,203–(13,757)(4,127)(7,147)(27,515)

1,413(3,853)

15,187

(109)
–
(109)
¥ 1,523

(14)
2,000
1,985
¥ (5,839)(1,171)–(1,171)
16,369Other income (expenses):
Interest and dividend income
Payments received from insurance claims
Employment adjustment subsidies
Interest expense
Exchange loss, net
Provision for doubtful receivables
Gain on sales of property and equipment
Gain on sales of investments in securities
Loss on devaluation of investments in subsidiaries
and affiliates
Gain on prior-period adjustment
Special retirement benefits (Note 5-5)
Allowance for loss on litigation
Relocation expenses (Note 5-6)
Other, net
Income (loss) before income taxes
Income taxes (Note 9):
Current
Deferred
Net income (loss)(U.S. dollars)(Note 2)(Yen)
Net income (loss) per share – basic (Note 10)
Net income per share – diluted (Note 10)

¥2.51
2.44

$

¥(21.40)–$0.0260.026

See accompanying notes to non-consolidated financial statements.

42

5

Sumitomo Mitsui Construction Co., Ltd.
Non-Consolidated Statements of Changes In Net Assets
March 31, 2010
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 2)

Shareholders’ equity
Capital stock:
Balance at the end of previous period
Changes in items during the period
Transfer to other additional paid-in capital
Total changes in items during the period
Balance at the end of the period
Additional paid-in capital:
Other capital surplus:
Balance at the end of previous period
Changes in items during the period
Transfer from capital stock
Deficit disposition
Disposal of treasury stock
Total changes of items during the period
Balance at the end of the period
Retained earnings (deficit):
Earned reserve:
Balance at the end of previous period
Changes in items during the period
Deficit disposition
Total changes in items during the period
Balance at the end of the period
Earned (deficit) surplus carried forward:
Balance at the end of previous period
Changes in items during the period
Deficit disposition
Net income (loss)
Disposition of treasury stock
Total changes in items during the period
Balance at the end of the period
Total retained earnings (deficit):
Balance at the end of previous period
Changes in items during the period
Deficit disposition
Net income (loss)
Disposition of treasury stock
Total changes in items during the period
Balance at the end of the period

43¥16,859¥16,859$181,201(4,855)(4,855)12,003––
16,859(52,181)(52,181)
129,009

–

–

–

4,855
(4,253)
(0)
601
601

–
–
–
–
–

52,181(45,711)
(0)
6,459
6,459

109

109

1,171

(109)
(109)
–

–
–
109

(1,171)(1,171)–(4,362)

1,480(46,883)

4,362
1,523
–
5,885
1,523

–
(5,839)(2)(5,842)(4,362)

46,883
16,369–63,252
16,369(4,253)

1,589(45,711)

4,253
1,523
–
5,776
1,523

–
(5,839)(2)(5,842)(4,253)45,711
16,369–62,08016,3966

Sumitomo Mitsui Construction Co., Ltd.
Non-Consolidated Statements of Changes In Net Assets
March 31, 2010
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)(Note 2)
Treasury stock, at cost:
Balance at the end of previous period
Changes in items during the period
Purchases of treasury stock
Disposition of treasury stock
Total changes in items during the period
Balance at the end of the period
Total shareholders’ equity:
Balance at the end of previous period
Changes in items during the period
Transfer to other additional paid-in capital
Transfer from capital stock
Deficit disposition
Net income (loss)
Purchases of treasury stock
Disposition of treasury stock
Total changes in items during the period
Balance at the end of the period
Valuation, translation adjustments and other
Unrealized holding gain on securities:
Balance at the end of previous period
Changes in items during the period
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period
Total net assets
Balance at the end of previous period
Changes in items during the period
Cash dividends paid
Transfer to other additional paid-in capital
Transfer from capital stock
Net income (loss)
Purchases of treasury stock
Disposition of treasury stock
Net changes in items other than shareholders’ equity
Total changes in items during the period
Balance at the end of the period

44

(240)

(240)

(2,579)

(1)
0
(0)
(241)

(2)
3
0
(240)

(10)
0
(0)
(2,590)12,365

18,207

132,899(4,855)
4,855
–
1,523
(1)
0
1,522
13,887–––(5,839)(2)
0(5,842)
12,365(52,181)
52,181–
16,369(10)
0
16,358149,258

(361)

575

(3,880)

413
413
51

(937)
(937)
(361)

4,438
4,438
548

12,003

18,783129,009–(4,855)
4,855
1,523
(1)
0
413
1,935
¥13,939–––(5,839)(2)
0(937)(6,779)¥12,003–(52,181)
52,181
16,369(10)
0
4,438
20,797$149,817

7

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010
1.

Summary of Significant Accounting Policies(a) Basis of Presentation
The accompanying non-consolidated financial statements of Sumitomo Mitsui
Construction Co., Ltd. (the “Company”) are prepared on the basis of accounting
principles generally accepted in Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards,
and have been compiled from the non-consolidated financial statements prepared by
the Company as required by the Financial Instruments and Exchange Law of Japan.
Certain reclassifications have been made to present the accompanying financial
statements in a format which is familiar to readers outside Japan. In addition, certain
amounts in the prior year’s financial statements have been reclassified to conform tothe current year’s presentation.
As permitted, amounts of less than one million yen have been omitted. As a result,
the totals shown in the accompanying financial statements do not necessarily agreewith the sums of the individual amounts.
(b) Securities and Investments in Subsidiaries and Affiliates
The accounting standard for financial instruments requires that securities be classified
into three categories: trading, held-to-maturity or other securities. Under thisstandard, trading securities are carried at fair value and held-to-maturity securities arecarried at amortized cost. Marketable securities classified as other securities forwhich market prices are determinable are carried at fair value with any changes in
unrealized holding gain or loss, net of the applicable income taxes, included directly in
net assets. Non-marketable securities classified as other securities are carried at cost.
Cost of securities sold is determined by the moving average method. Investments in
subsidiaries and affiliates are stated at cost determined by the moving average method.
(c) Inventories
Inventories other than materials and supplies are stated at cost determined by the
specific identification method. Materials and supplies are valued at cost determinedby the average method. Book values are written down based on any decline inprofitability.
(Change in accounting policy)
Previously, inventories were stated primarily at cost. Effective the year ended March
31, 2009, the Company has adopted “Accounting Standard for Measurement of
Inventories” (Accounting Standard Board of Japan (ASBJ) Statement No. 9 issued on
July 5, 2006). The effect of this adoption has only minor impact on non-consolidated
statements of operations.

45

8

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(d) Depreciation and Amortization(1) Property and equipment (except leased assets)
Depreciation of property and equipment (except leased assets) is determined by
the declining-balance method based on the estimated useful lives of therespective assets as prescrived in the Corporation Tax Low of Japan except thatthe straight-line method is applied to office buildings acquired on or after April 1,
1998.
(Additional information)
With an amendment to the Corporation Tax Law, effective the year ended March
31, 2009, the Company has applied useful lives in light of the amended
Corporation Tax Law. The effect of this adoption was immaterial to thenon-consolidated statements of operations for the year ended March 31, 2009.
(2) Intangible fixed assets (except lease assets) and long-term prepaid expenses
Amortization of intangible fixed assets (except lease assets) and long-term
prepaid expenses is calculated by the straight-line method based on the estimateduseful lives of the respective assets as prescribed in the Corporation Tax Law ofJapan. Amortization of computer software for internal use is calculated by thestraight-line method over the estimated useful lives of 5 years.
(3) Leases assets
Depreciation of leased assets under finance leases other than those that transfer
the ownership of the leased assets to the lessees is calculated by the straight-line
method over the lease term with a residual value of zero.
Finance leases other than those that transfer the ownership of the leased assets tothe lessees, whose commencement dates are on or before March 31, 2008,
continue to be accounted for in a similar manner as operating leases. See Note 3.
(e) Allowance for Doubtful Receivables
The allowance for doubtful receivables is provided for future losses on general
receivables at an amount calculated by applying the percentage of actual losses oncollection experienced in the past, and an uncollectible amount for doubtfulreceivables estimated based on an individual assessment of each receivable andprobability of collection.
(f)Advances Received on Contracts in Progress
As is customary in Japan, the Company receives payments from customers on an
installment basis in accordance with the terms of the respective construction contracts.

46

9

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(g) Reserve for Defects on Completed Construction Projects
A reserve has been provided at an estimated amount for the fiscal year’s sales
proceeds in order to cover the liability for future costs of defects of the completed
construction projects.
(h) Allowance for Losses on Construction Contracts
An allowance has been provided based on the estimated amount for the future losses
on construction projects in progress at the fiscal year end which are anticipated to be
substantial losses in the future.
(i)

Allowance for Loss on Litigation

An allowance has been provided for future losses on pending litigation at on estimatedamount calculated based on specific circumstances.
(j)

Employees’ Retirement Benefits
Accrued retirement benefits for employees are provided principally at an amountcalculated based on the retirement benefit obligation and the fair value of the pension
plan assets, as adjusted for the unrecognized net retirement benefit obligation attransition, unrecognized actuarial gain or loss and unrecognized prior service cost.

(k) Recognition of Revenues and Costs on Construction Contracts
Revenues and costs of construction contracts that commenced on or after April 1, 2009,of which the percentage of completion can be reliably estimated, are recognized by thepercentage-of-completion method. The percentage-of-completion is calculated at thecost incurred as a percentage of the estimated total cost. The completed-contract
method is applied for contracts for which the percentage of completion cannot be
reliably estimated.
Revenues and costs of construction contracts that commenced on or before March 31,
2009, which cover a construction period longer than 12 months are, in principle, also
recognized by the percentage-of-completion method, except for revenue on long-term
contracts which total less than ¥500 million.
(Change in accounting policy)
Effective the year ended March 31, 2010, the Company has adopted “AccountingStandard for Construction Contracts” (ASBJ Statement No. 15 issued on December 27,2007), and “Guidance on Accounting Standard for Construction Contracts” (ASBJ
Guidance No. 18 issued on December 27, 2007).

47

10

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(k) Recognition of Revenues and Costs on Construction Contracts (continued)
Under the new accounting standard and guidance, revenues and costs of construction
contracts that commenced on or after April 1, 2009, of which the percentage ofcompletion can be reliably estimated, are recognized by the percentage-of-completion
method. The percentage of completion is calculated at the cost incurred as apercentage of the estimated total cost. The completed-contract method continues tobe applied for contracts for which the percentage of completion cannot be reliably
estimated.
As a result of this change, net sales increased by ¥20,452 million ($219,819 thousand),
operating income and income before income taxes increased by ¥2,147 million($23,076 thousand) for the year ended March 31, 2010 compared with thecorresponding amounts which would have been recorded under the previous method.
Until the year ended March 31, 2009, revenues and costs of construction contracts,
which cover a construction period longer than 12 months, were in principle,
recognized by the percentage-of-completion method, except for revenue on long-term
contracts which totaled less than ¥500 million. Net sales on such contracts amounted
to ¥225,903 million for the year ended March 31, 2009.
(l)Consumption Taxes
Consumption taxes are accounted for by the tax exclusion method.

(m) Income Taxes
Deferred tax assets and liabilities are determined based on the differences between theamounts calculated for financial reporting purposes and the tax bases of the assets andliabilities and are measured using the enacted tax rates and laws which will be in effectwhen the differences are expected to reverse.
The Company files a tax return under the consolidated corporate-tax system.
2.

U.S. Dollar Amounts

The translation of yen amounts into U.S. dollar amounts is included solely for the convenienceof readers outside Japan and has been made at ¥93.04 = U.S.$1.00, the approximate rate ofexchange prevailing on March 31, 2010. This translation should not be construed as arepresentation that yen have been, could have been, or could in the future be, converted into
U.S. dollars at that or any other rate.

48

11

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010
3.

Changes in Accounting Methods(a) Effective the year ended March 31, 2010, the Company has adopted “Partial
Amendments to Accounting Standard for Retirement Benefits (Part 3)” (ASBJ
Statement No. 19 issued on July 31, 2008).
The effect of this adoption has no impact on the consolidated statement of operations
for the year ended March 31, 2010, nor has the amount of the retirement benefit
obligation changed.
(b) Previously, finance leases other than those that transfer the ownership of the leased
assets to the lessees had previously been accounted for in a similar manner as
operating leases. However, effective the year ended March 31, 2009, the Company
has adopted “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13
issued on June 17, 1993 with and the final revision issued on March 30, 2007) and“Guidance on Accounting Standard for Lease Transaction” (ASBJ Guidance No. 16
issued on January 18, 1994 with and the final revision issued on March 30, 2007).
Under the new accounting standard and guidance, finance leases other than those thattransfer the ownership of the leased assets to the lessees are accounted for as sale andpurchase transactions.
The effect of this adoption has no impact on the non-consolidated statements ofoperations for the year ended March 31, 2009.
Finance leases other than those that transfer the ownership of leased assets to thelessees, of which commencement dates are on or before March 31, 2008, areaccounted for in a similar manner as operating leases.
4.

Notes to Non-Consolidated Balance Sheets(a) Inventories
The components of inventories as of March 31, 2010 and 2009 were as follows:
As of March 31,
2009
2010
2010
(Millions of yen)(Thousands of
U.S. dollars)
Costs on uncompleted construction
contracts
Real estate for sale

¥20,414133¥20,548¥24,517137¥24,654$219,411
1,429$220,851

49

12

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(b) Transactions and Outstanding Balances with Subsidiaries and Affiliates
Significant outstanding balances for subsidiaries and affiliates other than individuallypresented on the accompanying non-consolidated balance sheets at March 31, 2010
and 2009 were as follows:
2009
2010
(Millions of yen)
Short-term loans receivable
Trade notes payable
Accounts payable on completed
contracts

2010(Thousands of
U.S. dollars)¥ 8,201637¥ 7,979947$ 88,144
6,846

12,87918,695

138,424(c) Pledged Assets
The following assets were pledged at March 31, 2010 and 2009 principally as
collateral for short-term bank loans, long-term debt and guarantees (such as guarantees
for the completion of construction contracts):
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Cash and deposits
Notes receivable
Accounts receivable on completed contracts
Other current assets
Land
Buildings, net of accumulated depreciation
Structures, net of accumulated depreciation
Investments in securities
Investments in subsidiaries and affiliates¥ 2,426
289
2,193
130
5,209
436
40
1,978
358
¥13,063

¥

5
1,269
–
117
5,209
416
46
1,601
358
¥9,024$ 26,074
3,106
23,5701,397
55,986
4,686
429
21,2593,847$140,401

The secured liabilities as of March 31, 2010 and 2009 are summarized as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Short-term bank loans[Including current portion of long-termdebt]Long-term debt

¥5,528¥2,855$59,415[840]
820[1,402]
1,660[9,028]
8,813

50

13

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(d) Contingent Liabilities
At March 31, 2010 and 2009, the Company was contingently liable for the followings:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
As guarantor of bank loans to customers,
subsidiaries, an affiliate and employees
As endorser of non-operating notes
receivable endorsed to vendors¥4,819¥6,050$51,794–15–(e) Estimated Loss on Uncompleted Construction Contracts
An estimated loss on uncompleted construction contracts was recognized and included
as part of inventories but was not offset against the amount on the balance sheet. It
has been recorded as an allowance for losses on construction contracts in the amountof ¥82 million ($881 thousand) as of March 31, 2010.
5.

Notes to Non-Consolidated Statements of Operations(a) Net sales based on percentage-of-completion method
Net sales on such construction contracts amounted to ¥199,112 million ($2,140,068
thousand) for the year ended March 31, 2010.
(b) Allowance for losses on construction contracts included in cost of sales
The allowance for losses on construction contracts was included in cost of sales in theamount of ¥222 million ($2,386 thousand) for the year ended March 31, 2010.
(c) Transactions and Outstanding Balances with Subsidiaries and Affiliates
Significant transactions with subsidiaries and affiliates other than individuallypresented on the accompanying non-consolidated statements of operations for theyears ended 2010 and 2009 were as follows:
2010
2009
(Millions of yen)Interest and dividend income

¥361

¥635

2010
(Thousands of
U.S. dollars)$3,88051

14Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(d) Selling, General and Administrative Expenses
The significant components of selling, general and administrative expenses at March
31, 2010 and 2009 were as follows:
Years ended March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Salaries and wages
Retirement benefit expenses
Rent
Other
Total

¥ 5,096
1,075
1,800
4,507
¥12,478¥ 6,230
1,193
1,878
5,197
¥14,498$ 54,772
11,554
19,34648,441$134,114(e) Research and Development Expenses
Research and development costs included in selling, general and administrative
expenses and manufacturing costs amounted to ¥927 million ($9,963 thousand) and¥1,052 million for the years ended March 31, 2010 and 2009, respectively.
(f)Special Retirement Benefits
Special retirement benefits and outplacement expenses were due to the implementationof the voluntary retirement scheme in the year ended March 31, 2009.

(g) Relocation Expenses
Relocation and integration expenses for head office and branches located around theTokyo metropolitan area have been recognized for the year ended March 31, 2010.

52

15

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010
6.

Notes to Non-Consolidated Statements of Changes in Net Assets

Type and number of treasury stocks at March 31, 2010 are as follows:
Balance at
March 31,
2009
Treasury shares:
Common stock
3rd Series Class C preferred stock
Total

411,183–
411,183

Increase
Decrease(Number of shares)
14,7227,500
22,222

669
7,500
8,169

Balance at
March 31,2010

425,236–425,236

Note 1:

Increase of common stock is due to the purchase of fractional shares.

Note 2:

Decrease of common stock is due to the sale of fractional shares in response to requests topurchase fractional shares.

Note 3:

Increase of preferred stock is due to the acquisition of common stock by exercising a call
option of the 3rd Series Class C preferred stock.

Note 4:

Decrease of preferred stock is due to redemption of 3rd Series Class C preferred treasury
stock to acquire common stock by exercising a call option.

Type and number of treasury stocks at March 31, 2009 were as follows:
Balance at
March 31,
2008
Treasury shares:
Common stock
1st Series preferred stock
3rd Series Class D preferred stock
Total

377,598––
377,598

Increase
Decrease(Number of shares)
38,827870,000
38,100946,9275,242
870,000
38,100913,342

Balance at
March 31,2009

411,183––
411,183

Note 1:

Increase of common stock is due to the purchase of fractional shares.

Note 2:

Decrease of common stock is due to the sale of fractional shares in response to requests topurchase fractional shares.

Note 3:

Increase of preferred stock is due to the acquisition of common stock by exercising a call
option of the 1st Series preferred stock and the 3rd Series Class D preferred stock.

Note 4:

Decrease of preferred stock is due to redemption of 1st Series preferred treasury stock and3rd Series Class D preferred treasury stock to acquire common stock by exercising a call
option.

53

16

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010
7.

Leases

The following pro forma amounts represent the acquisition costs, accumulated depreciation/ amortization and net book value of the leased property as of March 31, 2010 and 2009,
which would have been reflected in the non-consolidated balance sheets if finance leaseaccounting had been applied to the finance leases currently accounted for as operatingleases:(a) As lessee:(1) Finance leases (of which commencement dates were prior to the initial year of
application of change in accounting method)

VehiclesAcquisition costs
Accumulated
depreciation/ amortization
Net book value

2010
Tools,
furniture Intangible
fixed
and
assetsfixtures

Total
Vehicles(Millions of yen)

2009
Tools,
furniture Intangible
fixed
and
assetsfixtures

Total

¥10

¥130

¥155

¥296

¥10

¥217

¥247

¥475

7
¥ 3

77
¥ 53

99
¥ 56

183
¥113

5
¥ 5

119
¥ 98

143
¥103

267
¥207

2010
Tools,
furniture Intangible
fixed
and
VehiclesTotal
assetsfixtures(Thousands of U.S. dollars)
Acquisition costs
Accumulated
depreciation/ amortization
Net book value$107$1,397$1,665$3,181

75
$ 32

827
$ 569

1,064
$ 601

1,966
$1,2142010
2009(Millions of yen)
Future minimum payments:
Within one year
Over one year
Lease payments
Depreciation / amortizationequivalents
Interest expense equivalents

2010(Thousands of
U.S. dollars)

¥ 55
63
¥119

¥ 90
126
¥217

$ 591
677
$1,279

¥ 91

¥138

$ 978

81
6

126
11

870
64

Depreciation / amortization equivalents are computed by the straight-line method
over the respective lease terms with a residual value of zero.
The difference between total lease expenses and acquisition costs of the leased
assets comprise interest equivalents. Interest equivalents are computed by theinterest method over the respective lease terms.
54

17

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010(a) As lessee: (continued)(2) Operating leases
2009
2010
(Millions of yen)
Future minimum payments:
Within one year
Over one year

8.

¥0
1
¥2

2010
(Thousands of
U.S. dollars)

¥2
2
¥4

$ 0
10
$21

Securities

Stocks of subsidiaries and affiliates at March 31, 2010 were as follows:
Carrying
value
Stocks ofa subsidiary

Note:

2010
Fair
Unrealized Carrying
Fair
Unrealized
value
gain
value
value
gain
(Millions of yen)(Thousands of U.S. dollars)

¥717

¥926

¥209

$7,706$9,952$2,246

Stocks of subsidiaries and affiliates for which it is extremely difficulty todetermine market values and therefore excluded from the above as follows:

Stocks ofa subsidiaries
Stocks ofa affiliates

2010
Carrying value(Millions of yen)(Thousands of
U.S. dollars)¥2,775$29,825

745

8,007

Stocks of a subsidiary for which market prices were available at March 31, 2009 aresummarized as follows:
Carrying
value
Stocks ofa subsidiary

¥717

2009
Fair
Unrealized
value
loss
(Millions of yen)
¥637

¥(79)

55

18

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010
9.

Income Taxes

The significant components of the Company’s deferred tax assets and liabilities at March
31, 2010 and 2009 were as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Deferred tax assets:
Tax loss carryforwards
Accrued retirement benefits
Allowance for bad debts
Loss on devaluation of investments in
subsidiaries and affiliates
Allowance for loss on litigation
Reserve for defects on completed
construction projects
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on securities
Total deferred tax liabilities
Net deferred tax assets¥ 80,300
5,315
5,032

¥ 86,979
5,653
5,241

$ 863,069
57,12554,084

1,028
539

1,110
–

11,049
5,793

497
1,963
94,678(90,178)
4,500

586
2,121
101,693(97,193)
4,500

5,341
21,0981,017,605(969,239)
48,366

(34)
(34)
4,466

–
–
4,500

(365)
(365)
48,000¥¥$The following table summarizes the significant differences between the statutory tax rate
and the effective tax rate at March 31, 2010:
March 31, 2010
Statutory tax rate
Non-deductible expenses
Non-taxable income
Per capita inhabitants’ taxes
Valuation allowance
Effective tax rate

40.7 %
9.7
(2.7)
(7.7)
(47.7)(7.7)%The significant differences between the statutory tax rate and the effective tax rate:
A reconciliation of the statutory and effective tax rate for the year ended March 31, 2009has been omitted because a net loss for the year then ended was recorded.

56

19

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 201010.

Per Share Information

Net assets and basic net income (loss) per share as of and for the years ended March 31,
2010 and 2009 were as follows:2010
Net assets per share
Net income (loss) per share – basic
Net income per share – diluted(Yen)¥(68.03)
2.51
2.44

2009

2010
(U.S. dollars)¥(72.16)(21.40)–$(0.731)
0.026
0.026

The basis of calculation for net assets per share at March 31, 2009 was as follows:
2010
2009
(Millions of yen)
Total net assets
Amounts deducted from total net
assets[Including paid-in amounts forshares of preferred stock][Including amount of preferred
dividends]
Total net assets for common stock
Number of shares of common stock
used to determine net assets per share

2010(Thousands of
U.S. dollars)¥ 13,939¥ 12,003$ 149,817

32,64031,826

350,816[31,807][31,826][341,863][833]¥(18,701)[–]¥ (19,822)[8,953]$ (200,999)(Thousands of shares)
274,888274,685

The basis for calculating basic net income (loss) per share – basic and net income per share– diluted for the years ended March 31, 2010 and 2009 was as follows:
2009
2010
(Millions of yen)
Net income per share – basic:
Net income (loss)
Amount not available to commonshareholders[Including amount of preferred
dividends]
Net income (loss) per share – basic

2010(Thousands of
U.S. dollars)¥1,523¥(5,839)$16,369

833

–

8,953

[833]
¥ 690

[–]
¥(5,839)[8,953]$ 7,416(Thousands of shares)

Average number of share ofcommon stock outstanding

274,857

272,908

57

20

Sumitomo Mitsui Construction Co.,Ltd.

Notes to Non-Consolidated Financial Statements
March 31, 2010
2009
2010
(Millions of yen)
Net income per share – diluted:
Adjustment for net income[Including amount of preferred
dividends]

¥394

¥–

$4,234[394][–][4,234](Thousands of shares)

Increase in number of share ofcommon stock[Including preferred stock]
11.

2010
(Thousands of
U.S. dollars)

169,241[169,241]–[–]

Short-Term Bank Loans and Long-Term Debt

Short-term bank loans generally represent notes, principally at average interest rates of
2.8% and 2.1% at March 31, 2010 and 2009, respectively.
Long-term debt at March 31, 2010 and 2009 is summarized as follows:
As of March 31,
2010
2009
2010
(Millions of yen)(Thousands of
U.S. dollars)
Debt with collateral (at average interest
rates of 2.8% at 2010 and 2.7% at 2009)
Less current portion

58¥1,660(840)¥ 820¥ 3,062(1,402)¥ 1,660$17,841(9,028)$ 8,81321

59

CORPORATE OUTLINE
Corporate Name:

Main Scope of Business:

Main Banks

Sumitomo Mitsui Construction Co.,Ltd.

1) To plan, design, supervise, contrant
and / or undertake civil engineering,architectural, prestressed concrete,electrical, piping and other construction
works

Sumitomo Mitsui Banking Corporation
Sumitomo Trust & Banking Co.,Ltd.

Established:
October 14,1941

Permission:(Special-18)No.200, Specified Constructor,
granted by the Minister of Land,
Infrastructure and Transport

License:(14)No.1, Housing, Land and Building Dealer,
granted by the Minister of Land, Infrastructure
and Transport

2) To plan, design and supervise marine
development, regional development,
urban development, natural resource
development and environment
maintenance3) To manufacture, sell and lease materials
for civil and building works, prestressed
concrete products, seismic isolating
device, seismic damping device, andother machinery and instruments

Corporate History

60

Main Shareholders
Daiwa Securities SMBC Principal Investments Co. Ltd.
Mitsui Fudosan Co.,Ltd.
Isao Nasu
Mitsui Sumitomo Insurance Co.,Ltd.
Sumitomo Mitsui Banking Corporation
ORIX Corporation

CORPORATE DATAHEAD OFFICE

Jakarta:(Indonesia)

SMCC Shanghai

2-1-6 Tsukuda, Chuo-ku,
Tokyo, 104-0051, Japan

Summitmas 2, 12th Floor JL.Jend. Sudirman Kav.
61-62, Jakarta Selatan 12190, Indonesia
TEL 62-21-520-1757
FAX 62-21-525-0905

Room No.202, No.2 Building, 641 Tian Shan Road,
Chang Ning Zone, Shanghai 200336, China
TEL:86-21-6228-6780
FAX:86-21-6228-6781

Bangkok:(Thailand)

SMCC Guam, Inc.

26/49, 14th Floor, Orakarn Building, Soi Chidlom,
Ploenchit Road, Lumpini, Pathumwan, Bangkok
10330, Thailand
TEL:66-2-250-0560
FAX:66-2-254-7405

Suite 105-107, IBC Building, J.L. Baker Street,
Harmon Industrial Park, Harmon, Guam 96913(P.O.Box 9670, Tamuning, Guam 96931)
TEL:1-671-649-7521
FAX:1-671-649-7550

INTERNATIONAL DIVISION
2-1-6 Tsukuda, Chuo-ku,
Tokyo, 104-0051, Japan
TEL:81-3-4582-3171
FAX:81-3-4582-3247

OVERSEAS OFFICE
Shanghai:(China)
Room No.202, No.2 Building, 641 Tian Shan Road,
Chang Ning Zone, Shanghai 200336, China
TEL:86-21-6228-6780
FAX:86-21-6228-6781

Nairobi:(Kenya)
P.O.Box 60487-00200 Arwings Kodhek Road,
Chemusian Apartments, Apartment No.2 Next to
Olive Garden Hotel, Hurlingham, Nairobi, Kenya
TEL:254-20-2722560
FAX:254-20-2722619

Taipei:(Taiwan)
8F., No.96, Guangfu N. Rd., Songshan Dist., Taipei
City 105, Taiwan R.O.C.

SUBSIDIARY COMPANIES INOVERSEAS

Manila:(Philippines)

SMCC(Thailand)Co.,Ltd.

2nd Floor, Pioneer House Building, 108 Paseo deRoxas, Makati City, Metro Manila, Philippines
TEL:63-2-840-4913
FAX:63-2-840-4912

26/49, 14th Floor, Orakarn Building, Soi Chidlom,
Ploenchit Road, Lumpini, Pathumwan, Bangkok
10330, Thailand
TEL:66-2-250-0560
FAX:66-2-254-7405

Guam:(USA)Suite 105-107, IBC Building, J.L. Baker Street,
Harmon Industrial Park, Harmon, Guam 96913(P.O.Box 9670, Tamuning, Guam 96931)
TEL:1-671-649-7521
FAX:1-671-649-7550

Pt.SMCC Utama Indonesia

Hanoi:(Vietnam)

SMCC Construction India Ltd.

2nd Floor, Skyline Tower, 4 Dang Dung Street, Ba
Dinh District, Hanoi, Vietnam
TEL:84-4-3942-8888
FAX:84-4-3942-8808

23,Local Shopping Centre, Madangir,Near Pushp
Bhawan, New Delhi 110062,India
TEL:91-11-41392800
FAX:91-11-41652592,41652593

Singapore:

SMCC Philippines, Inc.

No.4 Leng Kee Road, #06-05 SIS Building,Singapore 159088
TEL:65-64750079
FAX:65-64756996

2nd Floor, Pioneer House Building, 108 Paseo deRoxas, Makati City, Metro Manila, Philippines
TEL:63-2-840-4913
FAX:63-2-840-4912

Summitmas 2, 12th Floor JL.Jend. Sudirman Kav.
61-62, Jakarta Selatan 12190, Indonesia
TEL:62-21-520-1757
FAX:62-21-525-0905

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