2019Year ended March 31, 2019

Profile

HAZAMA ANDO CORPORATION was established on April 1, 2013, through the merger of
HAZAMA CORPORATION (founded in 1889) and ANDO Corporation (founded in 1873).
HAZAMA ANDO CORPORATION utilizes its industry-leading technological capabilities
built on more than a century of experience to support national development and today’s
modern lifestyle in Japan, and in more than 30 countries and territories around the world.
Taking advantage of Japan’s booming construction market, HAZAMA ANDOCORPORATION has boosted its profitability through productivity improvements and othermeasures, and expanded its capital base, stabilizing and strengthening its management andfinancial foundations.
HAZAMA ANDO CORPORATION aspires to be a company that meets the expectationsof society, with mutual growth and development. To achieve this, we will generateinnovation throughout the corporate group with reliable technology and passion, new ideas
and flexible thinking, as well as bold activity. Further, we seek to realize a prosperous society
in which people can live with peace of mind and comfort, and to establish our history andtradition as HAZAMA ANDO CORPORATION.

CONTENTSII

Financial Highlights.................................................................................. 1
Message from the President..................................................................... 2
Business Conditions and Outlook............................................................. 3
Topics 2019............................................................................................. 4
Review of Operations .............................................................................. 6
Corporate Governance............................................................................ 8
Consolidated Financial Review................................................................. 9
Consolidated Balance Sheets.................................................................. 12
Consolidated Statements of Income....................................................... 14
Consolidated Statements of Comprehensive Income............................... 15
Consolidated Statements of Changes in Net Assets................................. 16
Consolidated Statements of Cash Flows................................................. 18
Notes to Consolidated Financial Statements............................................ 19
Independent Auditor‘s Report................................................................ 43
Global Network..................................................................................... 44
Corporate Data / Directors, Officers / Major Subsidiaries and Affiliates....... 45

Financial Highlights
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2019, 2018 and 2017

Millions of yen
		Consolidated
Revenues
Operating income
Profit attributable to owners of parent
Total assets
Net assets

2019¥359,972
23,692
8,863
349,657
133,6832018¥377,021
35,71523,862
329,778
122,400		
Basic profit attributable to owners of parent per share
Net assets per share¥¥ 128.97
651.77

Thousands of
U.S. dollars

2017¥407,994
37,01826,277318,387
100,7442019$3,242,699
213,423
79,8403,149,779
1,204,243¥ 142.30
541.43

$

Yen

45.21
664.78

U.S. dollars

0.41
5.99

Note: U.S. dollar amounts in this annual report are translated from yen at the rate of ¥111.01 to US$1.00 for convenience.

Non-Consolidated

Consolidated

Consolidated

Revenues

Millions of yen

Operating Income

Millions of yen

Orders Received

Millions of yen

429,286

427,652

407,994
400,000

377,02140,000359,972

37,018400,000
35,715349,192
300,000

30,000300,000

23,692200,000

20,000200,000

100,000

10,000100,000

0

‘17

‘18

‘19

0

‘17

‘18

‘19

0

‘17

‘18

‘19

1

Message from the President

In July 2018, HAZAMA ANDO CORPORATION caused amajor fire at a construction site, resulting in the deaths offive workers and many injuries. I would like to offer prayers
for those who lost their lives, as well as my deepest
condolences to their families. I would also like to express
my heartfelt sympathies to the injured. Further, I once
more apologize to our shareholders, business partners,
and everyone affected by this accident for all the trouble
and concern we have caused. We will support the victimsof this accident with wholehearted sincerity. Further, I am
personally taking the lead with efforts to prevent areoccurrence. We are carefully observing everyday healthand safety controls, and making a dedicated effort torecover trust as quickly as possible.
The HAZAMA ANDO CORPORATION Group, withthe aim of steady grow th together with societ y,formulated a medium-term management plan (FY3/19 –FY3/21) centered on the basic policy of “Achieving
Growth through Innovation.” We are making a concerted
effort to implement the measures in this plan.
The fiscal year ended March 2019 was the initial
year for our management plan. We moved forward withmeasures for the plan objectives of “expand andstrengthen the construction business,” such as launching
the HAZAMA ANDO CORPORATION Next-generation
Energy Project, and developing technologies to enhance
work productivity using ICT. We also pursued measures to“diversify the earnings base,” including initiatives tosupport the renewable energy business, and launching
HAZAMA ANDO CORPORATION Accelerator 2019, a
program that aims to work with startups to create new
businesses and services.
Looking ahead to the business environment in thefiscal year ending March 2020, we expect further recovery
in the economy, with improvement in corporate earnings,
employment, and income. However, the uncertainties in
the world economy due to foreign political trends could
have an impact on Japan’s domestic industry.
In our main sector of construction, the entire
industry is facing long-term decreases in investment in
new construction from both the public and private
sectors, as well as the need to implement working stylereforms, productivity increases, and human resource
development to counter the continued decline in thenumber of skilled construc tion workers. Fur ther,advancements in information technology are accelerating

2

change in the external business environment more thanever before, with needs from society becoming morediverse and sophisticated.
Under such circumstances, the HAZAMA ANDOCORPOR ATION Group will steadily implement themeasures in its medium-term management plan in order to
respond with innovation to the changes in the businessenvironment and societal needs, and achieve reliable
growth that will endure into the future.
Finally, we will adhere to our basic management
policy of “Safe, Reliable, High-Quality Construction” while
making a concerted effort to achieve the Medium-termManagement Plan, with the aim of being a company thatmeets the expectations of all stakeholders, including
society, customers, shareholders, business partners, andemployees, and continues to achieve steady growtogether. We ask for your continued understanding andsupport.

Masato Fukutomi
Representative Director and President

Business Conditions and Outlook

1

Summary of Business Activities

The Japanese economy continued to recover at a moderate pace during the fiscal year ended March 2019, amid steady improvement in employment
conditions, ongoing recovery in consumer spending, and an increase in private sector capital investment.
Looking ahead, while caution remains warranted due to uncertainty in domestic and international politics, as well as the global economy, the mild
recovery in the economy is expected to continue amid improvement in employment and income, and the positive effects of government policy measures.
In the construction industry, the principal business of the HAZAMA ANDO CORPORATION Group, the business environment remains stable as a resultof firm construction investment in the public sector, along with capital investment.
In July 2018, a fire at a construction site in Tama city, Tokyo, resulted in the death of five workers, with dozens more injured. We offer prayers for
those who lost their lives, together with condolences and apologies to everyone affected by this accident. HAZAMA ANDO CORPORATION is decisively
implementing measures to prevent a reoccurrence of such an accident, and making a concerted effort as a company to regain trust as quickly as possible.
Under such conditions, HAZAMA ANDO CORPORATION Group recorded consolidated revenues of ¥359.9 billion (-4.5% year on year) for the fiscal
year ended March 2019, with operating income of ¥23.6 billion (-33.7%), ordinary income of ¥22.4 billion (-35.3%), and profit attributable to owners ofparent of ¥8.8 billion (-62.9%).
Results by business segment are as follows.
•Civil Engineering
Revenues amounted to ¥118.7 billion (-6.9% year on year), with operating income of ¥18.0 billion (-19.2%).
•Building Construction
Revenues amounted to ¥208.8 billion (-3.3% year on year), with operating income of ¥9.1 billion (-44.8%)•Group Business
Revenues amounted to ¥27.3 billion (+1.1% year on year), with operating income of ¥1.1 billion (-20.1%).
•OtherRevenues amounted to ¥5.0 billion (-22.1% year on year), with operating income of ¥0.7 billion (+6.7%).

2

Future Outlook

The recovery in the economy is expected to continue at a moderate pace, with steady improvement in employment conditions, and further expansion in consumer
spending. At the same time, however, caution is warranted due to the potential impact from political and economic uncertainties both in Japan and abroad.
In the construction industry, stable business conditions are expected to continue in the near term, reflecting the strength of the domestic economy. Over the
longer term, however, the industry will face shrinking investment, as well as issues of working style reforms, productivity increases, and human resource development
to address the continued decline in number of skilled construction workers.
Under such circumstances, HAZAMA ANDO CORPORATION steadily implemented the measures in its Medium-term Management Plan (FY3/19 – FY3/21),
formulated in March 2018 with a basic policy of achieving growth through innovation. One such measure is the HAZAMA ANDO CORPORATION Next-generation
Energy Project, which aims to establish and operate a next-generation energy management system. In August 2018, this project was selected for inclusion in the“2018 Guidance Project for Sustainable Structures (CO2 Reduction Type)” from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Through thisproject, HAZAMA ANDO CORPORATION is contributing to the realization of a low-carbon, sustainable society.
HAZAMA ANDO CORPORATION is also continuing its efforts to further improve productivity, implementing working style reforms to support five-day
workweeks, and pursuing environmental measures.
The HAZAMA ANDO CORPORATION Group, by focusing on the basic policy for its business activities of “Secure, Safe, and High-quality Construction,” andmaking a concerted effort to achieve its medium-term management plan, aims to meet the expectations of all stakeholders, including society, customers,
shareholders, business partners, and employees, and achieve growth together with society.

Medium-term Management Plan (FY3/19 – FY3/21)
Priority Measures
1. Enhance and strengthen the construction business
Create a foundation to broadly support social infrastructure, from new
construction to maintenance.
1) Technological development•Accelerate development of technologies that lead to increases inconstruction productivity, and expand utilization of information
technologies.
•Pursue collaboration with different industries, industry-universitygovernment associations, and partner firms.
•Develop and apply environmental technologies.
2) Human asset development / Support for partner firms•Pass on skills and expertise by cultivating young workers early, andsupporting senior employees.
•Support recruiting, human asset development, and strengthening
management for partner firms.
3) System and operational reform•Improve and reform construction production systems.
•Civil Engineering: Expand business in growing segments (energy sector,
expressway renovation, etc.).
•Building Construction: Shift business focus to value-added projects (lifecycle cost, facility management, etc.).
•Enhance efficiency through greater utilization of BIM and CIM.
•Strengthen the purchasing function and diversify procurement methods.
•Enhance efficiency in administrative operations utilizing ICT and AI
technologies.

4) Overseas business•Improve productivity and profitability by furthering globalization,
including development of national staff.
•Build a long-term business growth model, including M&A.
2. Diversify the earnings base
•Strengthen measures to build next-generation social infrastructure.
•Pursue measures for energy management, including the use of nextgeneration energy.
•Utilize expertise in energy management.
3. Utilize the collective power of the corporate group•Enhance the specialization functions of group companies.
•Strengthen cross-organizational measures aimed at expanding thebuilding construction business.
4. Strengthen ESG measures•Strengthen environmental activities and promote commercialization.
•Expand business activities that respond to societal expectations(compliance, promotion of diversity, working-style reforms).
•Enhance social contributions.
5. Other•Make proactive investments for growth.
Target Figures for FY3/21 (the final year of the plan)
Revenues
Operating income
Operating profit margin
ROE
Payout ratio

Non-consolidated
Consolidated
Around ¥440bn
Around ¥480bn
Around ¥33bn
Around ¥36bn
Over 7.5%
15%—Over 30%3

Topics 2019

The Carbon Footprints of Buildings and Carbon
Offsets
Reducing greenhouse gases in the construction industry torealize a decarbonized society requires significantly reducing CO2
emissions in the operational phase of buildings, along withfurther reductions at the construction or renovation phase.
A clear picture of the amount to CO2 emissions in eachphase of a building is needed to create an effective reduction
plan. An efficient means to accomplish this is through“visualization” (quantification) of CO2 emissions through thecarbon footprint (CFP¹) analysis that HAZAMA ANDOCORPORATION conducts at the outset of its construction
projects in Japan, and countering those emissions with carbon
offsets². Visualization provides options for conditions or ways ofoffsetting, such as with materials or construction methods, fromthe perspective of the effectiveness of the reduction. HAZAMAANDO CORPORATION will continue to utilize this information totake proactive steps to reduce CO2 emissions in construction.

New Precision Management Technology for 3D
Measurement of Distant Structures–Mobile
Mapping System
HAZAMA ANDO CORPORATION and Aero Asahi Corporation
have jointly developed precision management technologies for3D measuring techniques with Aero Asahi’s mobile mapping
system (MMS) and similar laser scanner systems. This technology
comprises innovations in correction and verification methods forpoint-group and other data to ensure precision in measurement
data, while enhancing the effectiveness of surveying distant
structures with MMS.
In addition to MMS, the technology can also be applied
for terrestrial, mobile-mounted laser scanners, allowing it to be
used in a wide range of measurement areas to support the
government’s i-Construction initiative. Further, with landslides

Aqua Curtain® is a concrete curing method that allows for wet
curing of vertical surfaces and arches after the formworks havebeen removed. Since first made available in August 2010, thismethod has been utilized for 153 projects, become highly
regarded for its exceptional effectiveness, workability, andeconomic efficiency. The amount of surface area cured using thismethod surpassed one million square meters in 2017, andreached two million square meters in January 2019. This isequivalent to around 100km of tunnels on ordinary roads.

4

Notes
1. Carbon Footprint of Products (CFP) is a quantitative figure expressed as CO2 ofthe total greenhouse gas emissions in the lifecycle of a product or service, fromprocurement of the raw material to disposal or recycle.
2. Carbon offset is a means of reducing CO2 or other greenhouse gas emissions thatcannot be eliminated through individual efforts with reductions or absorption inother areas.

becoming more frequent in recent years, utilizing this technology
to provide quick and precise 3D mapping of damaged areas thatare difficult for people to reach will contribute to faster recovery.

Measuring the cut slope of a construction site with MMS

Curing water
Water supply hose
Water supply curing sheet ( ①+② )Concrete structure

Aqua Curtain® Water Supply Curing Method Usedfor More than Two Million Square Meters ofSurface Area

The Tokyo Cargo Terminal Station Office (Japan Freight Railway Company)
designed and built by HAZAMA ANDO CORPORATION, utilized CFP andcarbon offsets.

① Air bubble cushioning sheet② Nonwoven fabricAtmospheric pressure
Suction opening

Flow ofwater and air
Structure of Aqua Curtain®

Suction pipe

Aqua Curtain ® can be used in the same wet curing
environments as water curing, making it particularly applicablefor the concrete lining of tunnels. Recognition of the method is
growing steadily among project owners and others in theconstruction industry. HAZAMA ANDO CORPORATION is"The Second Women's Forum" for Female
Employees and Male Managers
The second “Women’s Forum” for female employees and malemanagers at HAZAMA ANDO CORPORATION was held in
February 2019. The aim of this forum is to further enhance
motivation among female employees, as well as to deepen
understanding among male managers of diversity management,
and change their awareness. The forum was simulcast live tobranch offices, with a total of 234 participants from the headand branch offices.
The first session was a lecture from an outside
professional, who strongly encouraged female employees to be“leaders in their own way.” The second session was a panel
discussion by President Fukutomi and HAZAMA ANDOCORPORATION’s three outside directors, two of whom are
women. The highly experienced outside directors presented
measures and examples at other companies for the promotion of
women and changing working styles, urging a new awareness.

continuing to develop Aqua Curtain® for use withelectrochemical repair methods such as desalination andre-alkalinization, as a new technology to support themaintenance and renovation of infrastructure.

HAZAMA ANDO CORPORATION will continue to conduct
activities such as this to create a workplace open to a diverse
range of people, aiming to be a company where all employees
are able to design motivating and comfortable life plans.

Second Session – Panel discussion

On-site Tour Held for Analysts
HAZAMA ANDO CORPORATION held an on-site observational
tour for institutional investors and analysts at a construction sitein Kanagawa Prefecture. The tour gave analysts a first-hand viewof the front lines of the construction industry, aiming to further
deepen their interest and understanding of HAZAMA ANDOCORPORATION’s business.
The observational tour of a construction project inprogress included explanations on a wide range of themes,
including on-site environmental measures, safety management,
and quality controls, as well as measures for greater productivity
and working style reforms.
HAZAMA ANDO CORPORATION will continue to offer
tours for analysts as an opportunity to enhance communicationand mutual understanding.

On-site observational tour

5

Review of Operations

Major Orders Received● Komagome Dam Main Construction Work/Tosei Area
Branch Office in Aomori Prefecture (Japan) ❶● Sagamihara kyodo Hospital Construction Work/National
Federation of Agricultural Cooperative Associations(Japan) ❷● Yuki City new government building construction work/
Yuki City (Japan)● PACKAGE-1, CONSTRUCTION OF GYAING KAWKAREIK
BRIDGE/Department of Bridge, Ministry of Construction(Myanmar) ❸● Urgent Replacement of Bridges in Flood-Prone Areas/
Ministry of Public Works and Transport, Kingdom of
Cambodia (Cambodia) ❹

❶

❷

❸

❹

Major Projects in Progress● Hokkaido Shinkansen, Oshima Tunnel (Kaminoyu section)
Construction Work/Japan Railway Construction, Transport
and Technology Agency (Japan)● CROIX-DES-MISSIONS Bridge and New Road Bridge
Construction Project/Ministry of Public Works, Transportand Communications, Republic of Haiti (Haiti) ❺● Tokyo Contour Belt Highway Main Tunnel (North Bound)
Oizumi Minami Construction Work / Central Nippon
Expressway Company Limited (Japan)● Nam Ngum 1 Hydropower Station Expansion Project Lot:1
Civil and Hydro Mechanical Works/Electricité du Laos
(Laos) ❻● Kyoto Min-iren Chuo Hospital Construction Work/Public
Interest Incorporated Associations KYOTO HOKENKAI(Japan)6❺❻Major Projects Completed● Toyoma Usuiso Area Reconstruc tion Work / Urban
Renaissance Agency· Miyagi Fukushima Earthquake
Reconstruction Support Division (Japan) ❼● A pporo Dam Main Cons truc tion Work / H okkaido
Government Iburi General Subprefectural Bureu (Japan)● DPL Kunitachi Fuchu Logistics Facility Construction Work/
Kunitachi Fuchu Specific Purpose Company (Japan)● UMC Electronics Mexico New Factory Construction
Project/UMC Electronics Mexico, S.A. de C.V. (Mexico) ❾● THE PROGURAM FOR REHABILITATION AND RECOVERYFROM NEPAL EARTHQUAKE ( THE SUBPROJECT OF
BRIDGE CONSTRUCTION ALONG BARHAKILO–BARPAK
ROAD)/DEPARTMENT OF ROADS MINISTRY OF PHYSICALINFR A STRUCTURE AND TR ANSPORT FEDER AL
DEMOCRATIC REPUBLIC OF NEPAL (Nepal) ❿● Major Bridges Construction Project of the National Road
Network–Package 02/ROAD DEVELOPMENT AUTHORITY(Sri Lanka) ❽

❼

❽

❾

❿

7

Corporate Governance● Basic Policy

HAZAMA ANDO CORPORATION seeks to contribute to the advancement of society and its customers’ business development through businessactivities founded on “Safe, Reliable, High-Quality Manufacturing.” We recognize that maintaining and improving a management system able torespond flexibly to changes in the business environment, along with transparency and fairness in management oversight, are essential to achieve
this goal. Accordingly, we continually pursue measures to enhance corporate governance.
● Matters Regarding Corporate Functions including Business Execution, Auditing/Supervision, Nominating and Determination of Compensation
To strengthen its corporate governance, HAZAMA ANDO CORPORATION maintains a clear distinction between the decision-making andoperational oversight functions of the directors and Board of Directors, and the business execution function of the Management Meeting,executive officers and the Meeting of Executive Officers. The specific functions are as follows.
1. Revisions related to the directors
The term for directors is fixed at one year to further clarify the management responsibility of directors, and to provide an optimal
management structure responsive to changes in the business environment. Further, directors are classified into those with business execution
responsibility and those without. HAZAMA ANDO CORPORATION does not have the position of “executive director,” and only makes a
distinction between “representative director” and “director.” Non-business execution directors conclude contracts with the Company that
limit liability for damages to an amount prescribed by law.
2. Board of Directors
The Board of Directors had nine members as of June 27, 2019 (including three external directors, two of whom are female), comprising
executive and non-executive directors. External directors, who are non-executive directors, serve in roles based on their experience andinsights, including supervision and providing advice on management. The Board of Directors meets monthly to render decisions on importantmatters regarding management, and to supervise the status of business execution.
3. Management Meeting
The Management Meeting meets monthly to discuss policies for management strategies and other matters, to confirm the progress ofbusiness plans, and to diversify and strengthen policy-proposing capabilities.
4. Executive officer system
The number of executive officers as of June 27, 2019, totaled 24 (including six executive officers who concurrently serve as directors).
HAZAMA ANDO CORPORATION has established the seven officer categories of “president,” “vice president,” “chairman,” “vice chairman,”“senior managing executive officer,” “managing executive officer” and “executive officer.” We have clarified the responsibilities for theoperations executive officers manage, and limited the term to one year to enhance the mobility and flexibility of the executive officer
system. In addition, we clarified through a resolution of the Board of Directors the rights and responsibilities regarding operations managed,
and implemented a compensation system that reflects the performance of operations managed.
5. Meeting of Executive Officers
The Meeting of Executive Officers meets monthly in accordance with the executive officer system, to enhance the efficiency of consensual
decision-making and strengthen operational execution, as well as to ensure that management information is conveyed promptly andaccurately along the management line, and to provide for the sharing of information among departments.
6. Board of Auditors System
The Board of Auditors comprised 4 members as of June 27, 2019 (including two full-time company auditors, and two non-regular external
auditors). Auditors (including external auditors), in accordance with auditing standards established by the Board of Auditors, and in line withthe auditing policies for each fiscal period, division of duties and other rules, maintains communication with directors, the Internal Auditing
Department and other employees. Auditors attend meetings of the Board of Directors and other important meetings, receive reports andexplanations from directors and employees regarding the status of the execution of their duties, review important documents and otherpapers, and conduct audits at the head office and other major business locations. External auditors conclude contracts with the Company
that limit liability for damages to an amount prescribed by law.
7. Various Committees
HAZAMA ANDO CORPORATION has established various committees that contribute to the streamlining of management operations. These
include the Compliance Promotion Committee, which deliberates and provides advice regarding compliance matters, and the Central Safety
and Health Committee, which deliberates and provides advice regarding health and safety matters.
Also, as stated previously, HAZAMA ANDO CORPORATION has established the Governance Advisory Committee to advise the Board of
Directors on matters regarding the nomination and compensation for directors and other executives.
●

Corporate Governance and Internal Control Structure
Shareholders’ Meeting

Management
Appoint /Dismiss
Directors
Board of Directors

ReportBusiness
Execution

Audit

Board of Directors
Secretariat

Audit
Appoint/Dismiss
ReportAuditors
Board of Auditors
Coordinate
Board of Auditors
Secretariat

Appoint/Dismiss
Accounting Auditor

Consult

ReportReport/Recommend

Coordinate

Audit

Audit

Coordinate

Supervise

Consult

President(RepresentativeDirector)

ReportReportReportDirectManagement Meeting

Executive Officer
Meeting of Executive Officers
ReportDirectDirectDirectAudit Department
Internal Audits
Audit
Business Divisions

8

Governance Advisory Committee
Committees

Compliance Promotion Committee
Safety and Health Committee

CSR Promotion Department
Compliance
ReportImplement

ReportAudit

ImplementGroup Companies(Subsidiaries)

Consolidated Financial Review
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2019, 2018, 2017, 2016 and 2015

Summary
Thousands of
U.S. dollars

Millions of yen
2019

2018

2017

2016

2015

2019

$3,010,945

Operating results:
Revenues¥334,245¥348,879¥378,983¥360,869¥355,069

Other activities

25,72728,14229,011

18,38914,634

231,754

Total

359,972

377,021407,994379,258

369,7033,242,699

314,180

319,666

348,836

334,524

333,691

2,830,195

45,79257,35559,15844,73436,012

412,504

22,10021,64022,14019,277

17,494

199,081Construction contracts

Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating income
Profit attributable toowners of parent
Financial position:

23,69235,71537,01825,457

18,518

213,423

8,863

23,862

26,277

14,984

7,240

79,840Total assets¥349,657¥329,778¥318,387¥300,368¥269,720$3,149,779

Total liabilities

215,974

207,378

217,643

223,390

205,099

1,945,536

Total net assets

133,683

122,400

100,744

76,97864,621

1,204,243¥5,900¥38,127¥(1,802)¥34,722¥15,716$53,148(2,357)(2,261)

6,317(12,016)(134)(21,232)(7,780)(3,962)(3,376)

5,941(7,490)(70,084)

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

Yen
Per share amounts:
Profit attributable toowners of parent
Basic
DilutedU.S. dollars¥45.21¥128.97¥142.30¥81.03¥39.17

$0.41

44.20

119.41131.60

80.96

39.12

0.40

Dividends
Common stock
Net assets

30.0

25.00

20.00

12.00

8.00

0.27

664.78651.77541.43411.76345.56

5.99

Note: 1. U.S. dollar amounts in this annual report are translated from yen at the rate of ¥111.01 to US$1.00 for convenience.
2. The dividend per share for 2018 includes a ¥5 special dividend.

9Financial Review
Revenues
Revenues in fiscal 2019 totaled ¥359,972 million (US$3,242,699 thousand), of which ¥334,245 million (US$3,010,945 thousand)came from construction projects and ¥25,727 million (US$231,754 thousand) from other activities. These two business segments
accounted for 92.9% and 7.1%, respectively, of total revenues.
Costs and Expenses
Cost of sales amounted to ¥314,180 million (US$2,830,195 thousand), which is equivalent to 87.3% of revenues. Selling, generaland administrative expenses amounted to ¥22,100 million (US$199,081 thousand), which is equivalent to 6.1% of revenues.
Operating income reached ¥23,692 million (US$213,423 thousand), and the operating margin was 6.6%. Profit attributable toowners of parent amounted to ¥8,863 million (US$79,840 thousand). Basic profit attributable to owners of parent per share was¥45.21 (US$0.41). HAZAMA ANDO CORPORATION paid dividend of ¥15 (US$0.135) per share for the fiscal year ended March
31, 2018 on June 29, 2018, and paid interim dividend of ¥15 (US$0.135) per share for the fiscal year ended March 31, 2019 on
December 5, 2018.
Financial Position and Analysis
Total assets amounted to ¥349,657 million (US$3,149,779 thousand), total liabilities amounted to ¥215,974 million (US$1,945,536
thousand), and total net assets amounted to ¥133,683 million (US$1,204,243 thousand) at the end of fiscal 2019.
Net worth to total assets ratio was 38.0%. Net assets per share amounted to ¥664.78 (US$5.99).
Cash Flows
Cash and cash equivalents at the end of the year decreased by ¥4,096 million (US$36,898 thousand) to ¥135,094 million(US$1,216,953 thousand).
Net cash provided by operating activities amounted to ¥5,900 million (US$53,148 thousand) mainly as the result of income
before income taxes amounted to ¥13,016 million (US$117,251 thousand), increase in advances received on uncompleted
construction contracts amounted to ¥20,611 million (US$185,668 thousand), decrease in notes and accounts payable amounted to¥15,850 million (US$142,780 thousand) and income taxes paid amounted to ¥ 9,375million (US$84,452 thousand).
Net cash used in investing activities amounted to ¥(2,357) million (US$(21,232) thousand) mainly as a result of payments into
time deposits amounted to ¥11,124 million (US$100,207 thousand).
Net cash used in financing activities amounted to ¥(7,780) million (US$(70,084) thousand) mainly as a result of repayment oflong-term loans payable amounted to ¥6,299 million (US$56,743 thousand), cash dividends paid amounted to ¥5,796 million(US$52,211 thousand) and proceeds from long-term loans payable amounted to ¥8,637 million (US$77,804 thousand).
Construction Business (Non-Consolidated Construction Projects)
As HAZAMA ANDO CORPORATION’s construction business accounts for a large percentage of consolidated group business,
the financial performance of the business is presented below for reference.
Thousands of
U.S. dollars

Millions of yen
Revenues

2019

2018

2017

2016

2015

2019

Government sector¥70,268¥88,070¥99,198¥85,772¥77,095$632,988

Private sector

40,531

34,072

31,43432,72136,757365,111

7,991

5,331

3,543

4,002

7,721

71,985

118,790

127,473

134,175

122,495

121,573

1,070,084

Civil engineering
Domestic

Overseas
Subtotal
Building construction
Domestic
Government sector

26,932

27,71645,292

29,40425,713242,609

Private sector

161,430

168,806

169,470

171,296

169,524

1,454,193

20,497

19,47324,161

32,76230,746

184,641

Subtotal

208,859

215,995

238,923

233,462

225,983

1,881,443

Total construction projects¥327,649¥343,468¥373,098¥355,957¥347,556$2,951,527

Overseas10Revenue from the civil engineering category accounted for ¥118,790 million (US$1,070,084 thousand), or 36.3% of total revenue
from construction projects, with domestic projects contributing ¥110,799 million (US$998,099 thousand), or 93.3%.
The government sector contributed ¥70,268 million (US$632,988 thousand), or 63.4%, of total domestic civil engineering
revenue, while private-sector civil engineering revenue amounted to ¥40,531 million (US$365,111 thousand), or 36.6% of total
domestic civil engineering revenue. Overseas civil engineering revenue reached ¥7,991 million (US$71,985 thousand), equivalent
to 6.7% of total revenue in the civil engineering category.
Revenue from the building construction category accounted for ¥208,859 million (US$1,881,443 thousand), or 63.7% of total
construction revenue. Domestic projects accounted for ¥188,362 million (US$1,696,802 thousand), or 90.2%.
The government sector contributed ¥26,932 million (US$242,609 thousand), or 14.3%, of total domestic building construction
revenue, while private-sector building construction revenue amounted to ¥161,430 million (US$1,454,193 thousand), or 85.7%, of
total domestic building construction revenue. Overseas building construction revenue reached ¥20,497 million (US$184,641
thousand), equivalent to 9.8% of total revenue in the building construction category.
Total overseas construction revenue reached ¥28,488 million (US$256,626 thousand) and accounted for 8.7% of total
construction revenue. Civil engineering projects accounted for 28.1% of this total, and building construction for 71.9%.
Thousands of
U.S. dollars

Millions of yen
Orders Received
Civil engineering

2019

2018

2017

2016

2015

2019

¥192,179¥123,469¥193,008¥123,292¥167,060$1,731,187

Building construction

235,473

225,723

236,278

238,922232,248

2,121,187

Total construction projects¥427,652¥349,192¥429,286¥362,214¥399,308$3,852,374

Orders received for construction projects during fiscal 2019 amounted to ¥ 427,652 million (US$3,852,374 thousand). Overseas
work contributed 7.3% of orders in the construction category. Civil engineering orders amounted to ¥192,179 million(US$1,731,187 thousand), or 44.9% of total construction orders. Building construction orders amounted to ¥235,473 million(US$2,121,187 thousand), which is equivalent to 55.1% of total construction orders.
Thousands of
U.S. dollars

Millions of yen
Year-end Backlog

2019

2018

2017

2016

2015

2019
$2,656,643

Civil engineering¥294,914¥221,679¥226,120¥167,343¥166,623

Building construction

223,318

196,300

186,748

189,780

184,297

2,011,693

Total construction projects¥518,232¥417,979¥412,868¥357,123¥350,920$4,668,336

Order backlog for construction projects at the end of fiscal 2019 amounted to ¥518,232 million (US$4,668,336 thousand), withcivil engineering work accounting for ¥294,914 million (US$2,656,643 thousand), or 56.9%, and building construction for¥223,318 million (US$2,011,693 thousand), or 43.1%.

11

Consolidated Balance Sheets
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
March 31, 2019 and 2018

Thousands of
U.S. dollars(Note 1)
2019

Millions of yen
2019

2018

Cash and time deposits (Notes 4 and 25)¥120,303¥110,768$1,083,713

Marketable securities (Notes 3 and 25)

16,00030,000144,131

AssetsCurrent assets:

Receivables (Note 25):
Notes
Accounts

8,236

7,244

74,192

110,518

98,191

995,568

Inventories (Notes 6 and 9)

12,786

9,253

115,179

Other (Note 8)

18,298

14,695

164,832

(12)

(13)

(108)

286,129

270,138

2,577,507

Land

15,057

15,212

135,636

Buildings and structures

20,602

20,424

185,587

Machinery and equipment

10,780

10,227

97,108

Other

1,072

269

9,657

Less allowance for doubtful accounts
Total current assets

Property, plant and equipment (Notes 8, 14, 15 and 16):

47,511

46,132427,988(20,583)(19,512)(185,416)

26,92826,620242,572

22,26921,364200,604

Investments in unconsolidated subsidiaries and affiliates

173

443

1,558

Long-term loans receivable (Note 8)

439

458

3,955

Deferred tax assets (Note 19)

8,428

5,228

75,921Other (Note 8)

5,291

5,548

47,662Less accumulated depreciation
Net property, plant and equipment

Investments and other assets:
Investment securities (Notes 3, 8 and 25)

Less allowance for doubtful accounts

(0)

(21)

(0)

Total investments and other assets

36,60033,020329,700¥349,657¥329,778$3,149,779

Total assets
See accompanying notes.

12Thousands of
U.S. dollars(Note 1)
2019

Millions of yen
2019

2018

Liabilities and Net Assets
Current liabilities:¥12,264¥16,674$110,477

6,875

5,206

61,931

358

362

3,225

－

8,714

－

Notes

17,87336,526

161,004

Accounts

58,01954,194

522,647

Short-term loans payable (Notes 7 and 25)
Current maturities of long-term loans payable (Notes 7 and 25)
Current portion of bonds (Notes 7 and 25)
Current portion of convertible bond-type bonds with subscription rights toshares (Notes 7 and 25)
Payables (Note 25):

Income taxes payable

2,437

4,716

21,953

Advances received (Note 17)

49,157

27,386442,816

61

159

550

1,734

351

15,620Accrued expenses
Provision for losses on construction contracts (Note 9)
Provision for losses on fire disaster (Note 2)

7,743

－

69,750Other

35,38330,254

318,737

191,904

184,542

1,728,710

Total current liabilities
Long-term liabilities:

712

570

6,414

Long-term loans payable, less current maturities (Notes 7 and 25)

9,065

8,397

81,659Net defined benefit liability (Note 18)

12,95912,498116,737

Bonds (Notes 7 and 25)

Provision for environmental spending

152

153

1,369

Provision for management board incentive plan trust

108

139

973

Deferred tax liabilities (Note 19)

46

50

414

1,028

1,029

9,260

Total long-term liabilities

24,07022,836

216,826

Total liabilities

215,974

207,378

1,945,536

Other

Net assets (Notes 21 and 22):
Shareholders’ equity:
Capital stock
Common stock

Authorized - 400,000,000 shares
17,006

12,651

153,193

Capital surplus

19,927

15,643

179,506

Retained earnings

92,94589,829837,267

Issued – 200,343,397 shares

Less treasury stock, at cost
Total shareholders’ equity

(256)

(295)

(2,306)

129,622

117,828

1,167,660
40,384

Accumulated other comprehensive income:
4,483

4,608

Deferred gains or losses on hedges

(3)

(20)

(27)

Foreign currency translation adjustment

63

135

568

Accumulated remeasurements of defined benefit plans(1,357)(996)(12,224)

Total accumulated other comprehensive income

28,701

Valuation difference on available-for-sale securities

3,186

3,727

Share subscription rights

5

9

45

Non-controlling interests

870

836

7,837

Total net assets

133,683

122,400

1,204,243

Total liabilities and net assets¥349,657¥329,778$3,149,779

13

Consolidated Statements of Income
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018

Thousands of
U.S. dollars(Note 1)
2019

Millions of yen
2019

2018

¥334,245¥348,879

25,72728,142

231,754359,972

377,021

3,242,699

Construction contracts

290,868

294,148

2,620,196

Other activities

23,31225,518

209,999

314,180

319,666

2,830,195

45,79257,355412,504

22,10021,640199,081

23,69235,715

213,423

Revenues (Notes 11 and 23):
Construction contracts
Other activities$3,010,945

Cost of sales (Notes 12 and 23):

Gross profit
Selling, general and administrative expenses (Notes 13 and 23):
Operating income
Other income (expenses):
Interest and dividends income

513

430

4,621

Interest expense

(481)

(501)

(4,333)Foreign exchange loss

(416)

(289)

(3,747)Compensation for damage

(455)

(91)

(4,099)441

Gain on sales of noncurrent assets (Note 15)

49

83

Gain on sales of investment securities

－

156

－

Loss on sales of noncurrent assets (Note 16)

－

(47)

－

Impairment loss (Note 14)

(46)

(752)

(414)

Loss on litigation

(149)

(54)

(1,342)(9,333)－(84,074)

(358)

(497)

(3,225)(10,676)(1,562)(96,172)

13,01634,153

117,251

Current

7,153

9,769

64,436

Deferred(3,003)510(27,052)

4,150

10,27937,384

8,866

23,874

79,8673

12

27¥8,863¥23,862$79,840

Losses on fire disaster
Other, net
Income before income taxes
Income taxes (Note 19):

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

U.S. dollars

Yen
2019

(Note 1)
2018

2019

Per share amounts (Note 24):
Profit attributable to owners of parent
Basic¥45.21¥128.97$0.41

Diluted

44.20

119.41

0.40

30.00

25.00

0.27

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

14

Consolidated Statements of Comprehensive Income
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018

Thousands of
U.S. dollars(Note 1)
2019

Millions of yen
2019Profit2018¥8,866¥23,874$79,867

Valuation difference on available-for-sale securities

(125)

755

(1,126)

Deferred gains or losses on hedges

17

(9)

153

Foreign currency translation adjustment

(100)

76

(901)

Remeasurements of defined benefit plans
Total other comprehensive income (Note 20)

(361)

(387)

(3,252)Other comprehensive income

Comprehensive income

(569)

435

(5,126)

8,297

24,31074,741

8,320

24,261

74,948

(23)

49

(207)

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

15

Consolidated Statements of Changes in Net Assets
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018

Millions of yen
Shareholders’ equity
CapitalsurplusRetainedearnings¥12,000¥14,994¥69,839651

651

Capital stock
Balance at April 1, 2017
Conversion of Convertible bond-typebonds with Subscription rights tosharesCash dividends paid

23,862

Disposal of treasury stock

(2)

11

Acquisition of treasury stock(3)
12¥12,651¥15,643

4,355

4,355

¥89,829

8,863(5)

Disposal of treasury stock

41(2)

Acquisition of treasury stock

Balance at April 1, 2017
Conversion of Convertible bond-typebonds with Subscription rights tosharesCash dividends paid
Profit attributable to owners of parent¥(295)(5,796)

Profit attributable to owners of parent

Change of scope of consolidation
Capital reduction of consolidated
subsidiaries
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2019¥(303)(3,884)

Profit attributable to owners of parent

Change of scope of consolidation
Net changes in items otherthan shareholders’ equity
Balance at April 1, 2018
Conversion of Convertible bond-typebonds with Subscription rights tosharesCash dividends paid

Treasury
Stock

(5)

49

(61)

¥17,006¥19,927¥92,945¥ (256)

Millions of yen
Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
remeasurements
difference on
currency
or losses onof defined
available-for-saletranslation
hedgesbenefit planssecurities
adjustment¥3,852¥(11)¥145¥(609)

Share
subscription
rights

Noncontrollin
g interests

¥10

¥828

¥100,744
1,302(3,884)23,862

Disposal of treasury stock

9

Acquisition of treasury stock
Change of scope of consolidation
Net changes in items otherthan shareholders’ equity
Balance at April 1, 2018
Conversion of Convertible bond-typebonds with Subscription rights tosharesCash dividends paid
Profit attributable to owners of parent

(3)
12
756

(9)

(10)

(387)

(1)

9

357

¥4,608

¥(20)

¥135

¥(996)¥9¥837¥122,401
8,710(5,796)8,863
36

Disposal of treasury stock
Acquisition of treasury stock
Change of scope of consolidation
Capital reduction of consolidated
subsidiaries
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2019

16

Total

(2)
44
(61)
(125)

17

(72)

(361)

(4)

33

(512)

¥4,483¥ (3)¥63¥ (1,357)

¥5

¥870

¥133,683

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

Balance at April 1, 2018
Conversion of Convertible bond-typebonds with Subscription rights tosharesCapital stock

CapitalsurplusRetainedearnings

Treasurystock$113,962$140,915$809,197$(2,657)

39,231

39,231(52,211)

Cash dividends paid
Profit attributable to owners of parent

79,840(45)

Disposal of treasury stock

369
(18)

Acquisition of treasury stock
Change of scope of consolidation
Capital reduction of consolidated
subsidiaries
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2019

(45)

441

(550)
39,231

38,591

28,070351$153,193$179,506$837,267$(2,306)

Thousands of U.S. dollars (Note 1)
Accumulated other comprehensive income
Share
Accumulated
Valuation
Foreign
Deferred gains
remeasurements subscription
difference on
currency
or losses onrightsof defined
available-for-saletranslation
hedgesbenefit planssecurities
adjustment
Balance at April 1, 2018
Conversion of Convertible bond-typebonds with Subscription rights toshares$41,510$(180)$1,217$(8,972)$81

Noncontrollinginterests

Total$7,540$1,102,613
78,462

Cash dividends paid

(52,211)

Profit attributable to owners of parent

79,840

Disposal of treasury stock324

Acquisition of treasury stock(18)

Change of scope of consolidation
Capital reduction of
consolidated subsidiaries
Net changes in items otherthan shareholders’ equity

396(1,126)

153

(649)

(3,252)(36)

297(4,613)

Balance at March 31, 2019$40,384

$(27)

$568

$(12,224)$45$7,837$1,204,243(550)

See accompanying notes.

17

Consolidated Statements of Cash Flows
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018

2019

2018

Thousands of
U.S. dollars(Note 1)
2019

¥13,016¥34,153$117,251

1,794
46
9,333
(21)
1,382
(57)
(375)
(513)
481
(129)
－
(52)

1,800
752
－
(2)
(255)
577
(1,362)
(430)
501
65
(156)
(36)

16,161
414
84,074(189)
12,449(514)(3,378)(4,621)
4,333(1,162)－(469)(13,309)(2,450)(1,097)(390)(15,850)
20,611
13,899(8,575)(2,005)
15,739
473
(442)
(495)
(9,375)5,900

17,498
(520)
1,472
4,085
(14,055)
1,454(2,631)
8,449(832)
50,527
414
(491)
(97)
(12,226)
38,127(119,890)(22,070)(9,882)(3,513)(142,780)
185,668
125,205(77,245)(18,062)
141,780
4,261(3,982)(4,459)(84,452)
53,148(11,124)
11,458(1,203)109(1,754)200(43)(2,357)(1,788)
1,294
(42)
187
(2,137)589(364)(2,261)(100,207)
103,216(10,837)982(15,800)
1,801
(387)
(21,232)(4,410)8,637(6,299)555(418)(5,796)(5)(44)(7,780)105(4,132)
139,190
36－
5,562(5,655)546(446)(3,884)(40)(45)(3,962)(53)
31,851
107,667－(39,726)
77,804(56,743)
5,000(3,766)(52,211)(45)(397)(70,084)946(37,222)
1,253,851
324

－

(328)

－

¥135,094¥139,190$1,216,953

Millions of yen
Cash flows from operating activities:
Income before income taxes
Adjustment to reconcile income before income taxes to net
cash provided by operating activities:
Depreciation and amortization
Impairment loss
Losses on fire disaster
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in net benefit defined liability
Increase (decrease) in provision for warranties for completed construction
Interest and dividends income
Interest expense
Foreign exchange loss (gain)
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Changes in assets and liabilities:
Decrease (increase) in notes and accounts receivable
Decrease (increase) in costs on uncompleted construction contracts
Decrease (increase) in other inventories
Decrease (increase) in advances paid
Increase (decrease) in notes and accounts payable
Increase (decrease) in advances received
Increase (decrease) in deposit received
Increase (decrease) in consumption tax payable
Other, net
SubtotalInterest and dividends received
Interest paid
Compensation for damage paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of marketable securities and investment securities
Proceeds from sales and redemption of short-term and long-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash 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 year
Increase in cash and cash equivalents from newly consolidated subsidiary
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of year (Note 4)
See accompanying notes.

18

Notes to Consolidated Financial Statements
HAZAMA ANDO CORPORATION- and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of HAZAMA ANDO CORPORATION (“the Company”) and its consolidated
subsidiaries have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange
Law and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (“Japanese
GAAP”), which are different in certain respects as to application and disclosure requirements of International Financial ReportingStandards.
The accompanying consolidated financial statements have been restructured and translated into English with some expanded
descriptions from the consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filedwith the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law.
Some supplementary information included in the statutory Japanese language consolidated financial statements, but not required
for fair presentation, is not presented in the accompanying consolidated financial statements.
The translations of the Japanese yen amounts into U.S. dollars are included solely for the convenience of readers outside Japan,
using the prevailing exchange rate at March 31, 2019, which was ¥111.01 to U.S. $1.00. The convenience translations should not
be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into
U.S. dollars at this or any other rate of exchange.
2. Summary of Significant Accounting Policies(1) Consolidation
The consolidated financial statements include the accounts of the Company and its significant subsidiaries (“the Companies”). All
significant intercompany transactions and unrealized profits and losses among the Companies have been eliminated in consolidation.
All companies are required to consolidate all significant investees, which are controlled through substantial ownership ofmajority voting rights or existence of certain conditions. Investments in affiliates over which the Company has the ability to exercise
significant influence over operating and financial policies of the investees, are accounted for by the equity method.
Investments in remaining unconsolidated subsidiaries and affiliates, which have immaterial effect on the consolidated financial
statements, are accounted for at cost. Such investments are adjusted for any non-recoverable diminution in value, and income fromthese unconsolidated subsidiaries and affiliates is recognized only when the Companies receive dividends therefrom.
(2) Revenue and cost recognition
When the outcome of construction contracts can be estimated reliably, the percentage-of-completion method (cost-to-cost method
for the estimated progress) is mainly applied. Otherwise the completed-contract method is applied.
(3) Foreign currency translation
Revenues and expenses denominated in foreign currencies are translated at the rates of exchange prevailing when transactions are
made. Assets and liabilities denominated in foreign currencies are generally translated at the rates of foreign exchange prevailingat the balance sheet date and the resulting translation gains or losses are included in earnings.
(4) Cash and cash equivalents
Cash and cash equivalents include cash on hand, highly liquid investments with maturity of three month or less from the purchasedate. See Note 4 as to a reconciliation of cash and cash equivalents reported in the consolidated statements of cash flows with cash
and time deposits reported in the consolidated balance sheets.
(5) Allowance for doubtful accounts
To prepare for credit loss on receivables, collectability of normal receivables is estimated by applying the historical overall credit
loss rates, and collectability of doubtful receivables is analyzed individually and the estimated uncollectible amount is recorded.
(6) Inventories
Inventories are stated at cost as determined on a specific project basis.

19

(7) Securities
Securities of the Companies are classified into one of the following categories based on the intent of holding, and are accounted
for as follows:(a) Debt securities that are intended to be held to maturity (“held-to-maturity debt securities”) are stated at amortized cost.
(b) Securities other than trading securities, held-to-maturity debt securities and shares issued by unconsolidated subsidiaries andaffiliated companies which are not accounted for under the equity method (“available-for-sale securities”) are stated at fair market
values, if their fair market values are readily determinable. Unrealized gains and losses on these securities are reported, net of
applicable income taxes, as a separate component of net assets. Realized gains and losses on sale of these securities are computed
using moving-average cost. Available-for-sale securities without readily determinable fair market values are stated at movingaverage cost.
(8) Derivatives and hedging transactions
Derivative financial instruments are stated at fair value and changes in the fair value are recognized as gains or losses unlessderivative financial instruments are used for hedging purposes.
If derivative financial instruments are used as hedges and meet certain hedging criteria, the Companies defer recognition ofgains or losses resulting from changes in fair value of derivative financial instruments until the related losses or gains on the hedged
items are recognized.
If a forward foreign exchange contract is executed to hedge an existing foreign currency receivable or payable,(a) the difference, if any, between the Japanese yen amount of the hedged foreign currency receivable or payable translated using
the spot rate at the inception date of the contract and the book value of the receivable or payables is recognized in the consolidated
statements of income in the period which includes the inception date, and(b) the discount or premium on the contract (that is the difference between the Japanese yen amount of the contract translated using
the contracted forward rate and that translated using the spot rate at the inception date of the contract) is recognized over the termof the contract.
Also, if interest rate swap contracts are used as hedge and meet certain hedging criteria, the net amount to be paid or received
under the interest rate swap contract is added to or deducted from the interest on the assets or liabilities for which the swap contract
was executed.
The Companies use forward foreign currency contracts and interest rate swap contracts as derivative financial instruments only
for the purpose of mitigating future risks of fluctuation of foreign currency exchange rates and interest rate increases.
The Companies evaluate hedge effectiveness by comparing the cumulative changes in cash flows from or the changes in fairvalue of hedged items and the corresponding changes in the hedging derivative instruments during the period from the inception
date of hedging to the evaluation of hedge effectiveness. However, the evaluation of hedge effectiveness is omitted for interest rate
swap contracts as they meet certain hedging criteria.
(9) Property, plant and equipment, depreciation
Property, plant and equipment are carried at cost. Depreciation of buildings (excluding facilities attached to buildings) and facilities
attached to buildings and structures, which were acquired since April 1, 2016 is mainly recorded on the straight-line method, anddepreciation of other property, plant and equipment is recorded on the declining-balance method over estimated useful lives, exceptthat the declining-balance method is applied to buildings of one consolidated subsidiary.
Expenditures for significant renewals and betterments are capitalized, while expenditures for normal repairs and maintenanceare charged to expense when incurred.
(10) Provision for losses on construction contracts
To prepare for future losses related to construction contracts, the amount of estimated losses is recorded for the construction
contracts when losses are probable to occur and such losses can be reasonably estimated.
(11) Provision for losses on fire disasterTo prepare for future losses due to the fire, the amount of estimated losses other than construction costs at the end of the current
fiscal year is recorded in the provision for losses on fire disaster.
(12) Provision for environmental spending
To prepare for the treatment of Polychlorinated Biphenyl waste, which is obligated by the “Act on Special Measures Concerning
Promotion of Proper Treatment of PCB Waste,” the estimated cost for treatment is recorded.

20

(13) Provision for management board incentive plan trust
To prepare for future awards of the Company’s stock to the Directors, the estimated cost for stock award debt based on
predetermined regulations for awarding stock is recorded.
(14) Retirement and severance benefits
The retirement benefit obligation is calculated by allocating the estimated retirement benefit amount to periods until the end of thecurrent fiscal year on a benefit formula basis. Actuarial differences are recognized in expenses using the straight-line method overperiod less than the average of the estimated remaining service lives (9 years) commencing with the succeeding period. Prior
service costs are recognized in expenses using the straight-line method over period less than the average of the estimated remaining
service lives (3 years) commencing with present period.
The Company has calculated retirement and severance benefits and retirement benefit costs under certain lump-sum payment
plans using simplified method.
(15) Lease transactions(a) Finance leases which transfer ownership of leased assets
Leased assets arising from finance lease transactions which transfer ownership to the lessee are depreciated by the same method as
the depreciation of fixed assets.
(b) Finance leases which do not transfer ownership of leased assets
Leased assets arising from finance lease transactions which do not transfer ownership to the lessee are depreciated to a residual
value of zero by the straight-line method using the contract term as useful life.
(16) Income taxes
The Companies recognize tax effects of temporary differences between the carrying amounts of assets and liabilities for tax andfinancial reporting purposes. The provision for income taxes is computed based on the pretax income included in the consolidated
statements of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future
tax consequences of temporary differences.
(17) Appropriations of retained earnings
Appropriations of retained earnings are reflected in the accompanying consolidated financial statements for the following year
upon the shareholders’ meeting approval.
(18) Amounts per share
Basic profit attributable to owners of parent per share is based on the weighted average number of common stock outstanding
during the period, and diluted profit per share reflects the potential dilution that could occur if preferred stock were converted into
common stock or share subscription rights were exercised.
Cash dividends per share represent amounts applicable for the respective years on accrual basis.
A net asset per share is reported at the amounts of ¥664.78 (US$5.99) and ¥ 651.77at March 31, 2019 and 2018, respectively.
(19) Changes in presentation(Consolidated Balance Sheet)
From the beginning of the current fiscal year, the Company has applied “Partial Amendments to Accounting Standard for Tax
Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) which requires deferred tax assets to be classified as part of“Investments and other assets,” and deferred tax liabilities to be classified as part of “Long-term liabilities.”
As a result, in the balance sheet for the fiscal year ended March 31, 2018, deferred tax assets of ¥3,135 million presented under“Current assets” and ¥2 million of “Deferred tax liabilities” under “Long-term liabilities” have been reclassified to “Investments
and other assets” and included in the balance of deferred tax assets of ¥5,228 million and“Deferred tax liabilities” under “Longterm liabilities” are presented at ¥50 million.

21

(20) New accounting standards not yet applied• “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 30, 2018)• “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, March 30, 2018)(a) Summary
The accounting standard is comprehensive accounting standard for revenue recognition. An entity recognizes revenue based on thefollowing five-steps.
Step 1: Identify the contracts with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation(b) Scheduled date of application
Scheduled date of application is from April 1, 2021.
(c) Effect of application of the accounting standard
The effect on the consolidated financial statements is currently under evaluation.
(21) Additional information
Performance-linked stock compensation plan for directors and executive officers(a) Transaction summary
The Company was resolved to introduce a performance-linked stock compensation plan as an incentive plan for its directors
and executive officers (the “Directors”). The plan is highly transparent and objective and closely linked with the Company’s
performance for the Directors, with the goal of increasing awareness of the importance of contributing to further enhancing
the corporate value and performance over the medium-to-long-term.
The Company’s stock is acquired through the Board Incentive Plan Trust (“BIP Trust”) and awarded to the Directors inaccordance with performance targets achieved.
(b) The Company’s own stock in the Trust
The Company’s own stock in the Trust is recorded in treasury stock under net assets based on the book value in the Trust(excluding ancillary expenses). The book value and the number of these treasury stock in the Trust as of the current fiscal
year were ¥208 million ($1,874 thousand) and 364,751 shares, respectively.
Occurrence of losses on fire disaster
A fire occurred at the building under construction by the Company in Tama city, Tokyo on July 26, 2018, a number of people
were injured by this fire and a part of the building was damaged.
At the end of the current fiscal year, based on the current discussions with the parties concerned, the Company made thereasonable estimation of the cost at which the Company restored and repaired the construction and recorded as the provision
for losses on construction contracts amounted to ¥1,344 million ($12,107 thousand) in the cost of completed construction.
Other than the construction costs, the Company also recognized expected compensation for damages under the construction
contracts and fire-damaged equipment outside of the construction range amounted to ¥9,333 million ($84,074 thousand) ,in losses on fire disaster under a special loss caption.
Refer to “10 Contingent Liabilities” for items regarding contingencies.

223. Securities(1) The following tables summarize book values and acquisition costs of available-for-sale securities at March 31, 2019 and 2018:
Millions of yen
Book values
Type
Securities with book values exceeding acquisition costs

2019
Acquisition
costs

DifferenceBook values

2018
Acquisition
costs

Difference

Equity securities¥17,737¥11,261¥6,476¥14,966¥8,403¥6,563Sub total

17,737

11,261

6,476

14,966

8,403

6,563

Securities with book values not exceeding acquisition costs
Equity securities¥1,454¥1,654¥(200)¥3,205¥3,316¥(111)

Corporate bonds

2,000

2,000

－

2,000

2,000

－

12,00012,000－28,00028,000

－

2,000

2,000

－

－

－

－

Negotiable certificatesof deposit
Other
Sub total

17,454

17,654(200)

33,20533,316

(111)

Total

¥35,191¥28,915¥6,276¥48,171¥41,719¥6,452Thousands of U.S. dollars
Book values

Type
Securities with book values exceeding acquisition costs

2019
Acquisition
costs

Difference

Equity securities$159,778$101,441$58,337

Sub total

159,778

101,441

58,337

Securities with book values not exceeding acquisition costs
Equity securities$13,098$14,900$(1,802)

Corporate bonds

18,01618,016－108,098

108,098－

Negotiable certificatesof deposit
Other

18,01718,017－

Sub total

157,229

159,031(1,802)

Total$317,007$260,472$56,535(2) Total sales, related gains and losses of available-for-sale securities for the year ended March 31, 2019 and 2018 are as follows:
Thousands of
U.S. dollars
2019

Millions of yen
Type

2019

2018

Equity securities
Sales

¥8

¥185

$72

Related gains

0

156

0

23

4. Cash and Cash Equivalents
Cash and cash equivalents reported in the consolidated statements of cash flows at March 31, 2019 and 2018 were reconciled withcash and time deposits reported in the consolidated balance sheets as follows:
Thousands of
U.S. dollars
2019

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

2019

2018

¥120,303¥110,768$1,083,713(1,209)(1,578)(10,891)

16,00030,000144,131¥135,094¥139,190$1,216,953

5. The contents of significant non-cash transactions
The contents of significant non-cash transactions for the year ended March 31, 2019 and 2018 are as follows:(1) Exercise of share subscription rights in convertible bond-type bonds with subscription rights

Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

Increase in capital stock by exercise of share subscription rights¥4,355¥651$39,231

Increase in capital surplus by exercise of share subscription rights

4,355

651

39,231¥8,710¥1,302$78,462

Decrease in convertible bond-type bonds with subscription rights
by exercise of share subscription rights(2) The amount of significan asset retirement obligations

Thousands of
U.S. dollars
2019

Millions of yen
2019

2018
¥－

Significan asset retirement obligations

¥434

$－

6. Inventories
Inventories at March 31, 2019 and 2018 consisted of the following:
Millions of yen
2019

24

2018

Thousands of
U.S. dollars
2019

Accumulated Costs on uncompleted construction contracts¥7,755¥5,320

Others

5,031

3,933

$69,859
45,320Total¥12,786¥9,253$115,179

7. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans are represented mainly by loan on deed. The average interest rates of short-term loans were 1.5% and 1.2%
at March 31, 2019 and 2018.
Bonds at March 31, 2019 and 2018 are summarized below:
Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

Long-term debt from bonds, insurance companies and others due serially through 2024:¥1,070¥932$9,639Less current maturities

(358)

(362)

(3,225)Sub total

712

570

6,414

Convertible bond-type bonds with subscription rights to shares－¥8,714－¥712¥9,284$6,414

Unsecured 0.4%

Total

Long-term loans payable at March 31, 2019 and 2018 are summarized below:
Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

Long-term debt from banks, insurance companies and others due serially through 2029:
0.8% to 1.6%

¥728

¥814

$6,558

Unsecured 0.2% to 2.8%

15,212

12,789137,032

SecuredLess current maturities(6,875)(5,206)(61,931)

Total¥9,065¥8,397$81,659

Repayment schedules for bonds are summarized below:

2020

¥358

Thousands of
U.S. dollars$3,225

2021

270

2,432

2022

220

1,982

2023

166

1,495

2024

56

505

Total

¥1,070$9,639Years ending March 31,

Millions of yen

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

2020¥6,875

Thousands of
U.S. dollars$61,931

2021

4,072

36,681

2022

2,265

20,404

2023

1,758

15,836

2024

670

6,036

2025~

300

2,702

Total

¥15,940$143,590

Years ending March 31,

Millions of yen

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

8. Pledged Assets
The following assets were pledged to secure short-term bank loans, long-term debt and certain other obligation at March 31, 2019and 2018:
Thousands of
U.S. dollars

Millions of yen
2019

2019

2018

Property, plant and equipment¥1,614¥1,669$14,539

Investment securities

4,456

5,091

40,141

132

130

1,189

¥6,202¥6,890$55,869

Other assets
Total

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

Millions of yen
2019

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

2019

2018

¥1,497¥119$13,485

10. Contingent Liabilities(1) At March 31, 2019 and 2018, the Companies had the following contingent liabilities for loan guaranteed:
Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

Guarantees for loan
Loans of employees

¥1

¥2

$9

Total

¥1

¥2

$9

(2) other
Regarding the fire occurred at the building under construction by the Company in Tama city, Tokyo on July 26, 2018, the Company
recognized expected compensation for damages under the construction contracts and fire-damaged equipment outside of theconstruction range other than the construction costs ,in the provision for losses on fire disaster.
However, the Company does not record expected compensation for damages that cannot be reasonably estimated and amount of
insurance to cover losses caused by the fire, in the provision for losses on fire disaster.
If the events different from those for which the provision for losses on fire disaster are based occur, the Company reconsiders theprovision for losses which may have effect on the Company’s consolidated financial statements.
11. Revenues from construction contracts recognized by the percentage-of-completion method
Revenues from construction contracts recognized by the percentage-of-completion method for the fiscal year ended March 31,
2019 and 2018 were ¥313,618 million (US$2,825,133 thousand) and ¥327,195 million, respectively.
12. Provision for losses on construction contracts included in cost of sales of construction contracts
Provision for losses on construction contracts included in cost of sales of construction contracts for the fiscal year ended March 31,
2019 and 2018 were ¥1,504 million (US$13,548 thousand) and ¥151 million, respectively.

26

13. Research and Development Expenses
Research and development expenses included in manufacturing costs, and selling, general and administrative expenses amounted
to ¥2,519 million (US$22,692 thousand) and ¥3,612 million for the years ended March 31, 2019 and 2018, respectively.
14. Impairment Loss
Impairment loss for the year ended March, 31, 2019 is as follows:
Location

Use

Type of assets

Fukushima prefecture

Idle asset

Land

¥46

Thousands of
U.S. dollars
$414

¥46

$414

Millions of yen

Total

Impairment loss for the year ended March, 31, 2018 is as follows:
Millions of yen

Location

Use

Type of assets

Kanagawa prefecture

Asset for lease

Land

¥24

Idle asset

Land,leasehold right728

Chiba prefecture andSaitama prefecture
Total

¥752

The Companies generally conduct grouping of its business assets by location and asset for lease or idle assets by each property andland unit to measure impairment loss. As the market price or profitability of the above asset for lease were decreased and the otherasset become idle assets in the current fiscal year, the book value was reduced to recoverable amount, and such reduction wasrecorded as an impairment loss in the special loss caption. The recoverable amounts of these assets were measured based on net
selling price, and were evaluated based on appraisal for assets with significant book value, and based on market standard for otherassets.
15. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets for the year ended March 31, 2019 and 2018 are as follows:
Thousands of
U.S. dollars

Millions of yen
Type of assets

2019

2019

2018

Land and Buildings

¥49

¥67

Other

－

16

$441
－

Total

¥49

¥83

$441

16. Loss on Sales of Noncurrent Assets
Loss on sales of noncurrent assets for the year ended March 31, 2019 and 2018 are as follows:
Thousands of
U.S. dollars

Millions of yen
Type of assets

2019

2019

2018

Land and Buildings

－

¥47

other

－

－

－

Total

－

¥47

－

－

17. Advances Received
As is customary in Japan, the Companies normally receive payments from customers on a progress basis in accordance with theterms of the respective construction contracts.

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

Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

(1) Movement in retirement benefit obligations¥31,218¥30,634$281,218

Service cost

1,408

1,376

12,683

Interest cost

312

306

2,811

Actuarial loss (gain)

270

567

2,432

Benefits paid

(1,596)(1,665)(14,377)

Balance at March 31, 2019 and 2018¥31,612¥31,218$284,767$182,154

Balance at April 1, 2018 and 2017(2) Movement in plan assets¥20,221¥20,256

Expected return on plan assets

228

219

2,054

Actuarial loss (gain)

(453)

(385)

(4,081)
10,819Balance at April 1, 2018 and 2017

Contributions paid by the employer

1,201

1,214

Benefits paid

(1,010)(1,083)(9,098)

Balance at March 31, 2019 and 2018

¥20,187¥20,221$181,848$13,522(3) Movement in simplified method¥1,501¥1,540Retirement benefit costs

268

262

2,414

Benefits paid

(228)

(303)

(2,054)

Balance at April 1, 2018 and 2017

Other
Balance at March 31, 2019 and 2018

(6)

2

(54)

¥1,535¥1,501$13,828(4) Reconciliation from retirement benefit obligations and plan assets to liability (asset) for retirement benefits
Funded retirement benefit obligation¥31,612¥31,218$284,767

Plan assets(20,187)(20,221)(181,848)

11,425

10,997

102,919

Unfunded retirement benefit obligation

1,534

1,501

13,818

Total net liability (asset) for retirement benefits at March 31, 2019 and 2018

12,95912,498116,737

Net defined benefit liability

12,95912,498116,737

Total net liability (asset) for retirement benefits at March 31, 2019 and 2018¥12,959¥12,498$116,737(Note) Retirement benefit obligation under the lump-sum payment plan is included in funded retirement benefit obligation because a retirement
benefit trust has been established for lump-sum payment plans. In addition, the retirement benefit trust that has been established for the lump-sum
payment plan is included in plan assets.

28

Millions of yen

Thousands of
U.S. dollars
2019

2019

2018

Service cost

¥1,408¥1,376

Interest cost

312

306

2,811

Expected return on plan assets

(228)

(220)

(2,054)

Net actuarial loss amortization

204

394

1,838

Retirement benefit expenses by simplified method

267

262

2,405

¥1,963¥2,118$17,683

Net actuarial loss¥(520)¥(558)$(4,684)

Total adjustments for retirement benefit¥(520)¥(558)$(4,684)

Actuarial gains and losses that are yet to be recognized¥1,956¥1,436$17,620

Total accumulated adjustments for retirement benefit¥1,956¥1,436$17,620

2019

2018

(5) Retirement benefit costs

Total retirement benefit costs for the fiscal year ended March 31, 2019 and 2018$12,683(6) Remeasurements of defined benefit plans(7) Accumulated remeasurements of defined benefit plans(8) Plan assets
1. Plan assets comprise:
Bonds

43%

41%

Equity securities

20

21

General account assets

16

16

Cash and deposits

3

3

Other

18

19

Total

100%

100%

(Note) The retirement benefit trust that has been established for the corporate pension plan accounts for 12% and 12% of the total plan assets forthe year ended March 31, 2019 and 2018.
2. Long-term expected rate of return:Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in determining
the long-term expected rate of return.
(9) Actuarial assumptions
The principal actuarial assumptions at March 31, 2019 and 2018 (expressed as weighted averages) follow:
2019

2018

Discount rate

1.0%

1.0%

Long-term expected rate of return

1.2%

1.1%

29

19. Income Taxes
Differences between the statutory tax rate and the effective tax rate for the year ended March 31, 2019 and 2018 were notdisclosed,since the difference between the statutory tax rate and the effective tax rate is less than 5% of the statutory effective tax
rate.
Significant components of deferred tax assets and liabilities at March 31, 2019 and 2018 are as follows:

Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

Deferred tax assets:
Net defined benefit liability¥5,150¥5,452Others

9,381

6,076

$46,392
84,506Gross deferred tax assets

14,531

11,528130,898

Less: Valuation allowance(2,475)(2,575)(22,295)

Total deferred tax assets

12,056

8,953

108,603

Valuation difference on available-for-sale securities

1,789

1,839

16,116

Others

1,885

1,936

16,980Total deferred tax liabilities

3,674

3,775

33,096

Net deferred tax assets¥8,382¥5,178$75,507

Deferred tax liabilities:

20. Comprehensive Income
Amounts reclassified to profit for the fiscal year ended March 31, 2019 and 2018 that were recognized in other comprehensive
income in the current or previous periods and tax effects for each component of other comprehensive income are as follows:
Thousands of
U.S. dollars
2019

Millions of yen
2019

2018

Valuation difference on available-for-sale securities:
Increase (decrease) during the year
Reclassification adjustment
Sub-total, before tax¥(176)¥1,050－(58)$(1,585)
－

(176)

992

(1,585)

51

(237)

459

(125)

755

(1,126)

Increase (decrease) during the year

¥1

¥(19)

$9

Reclassification adjustment

6

－

54

Tax (expense) or benefit
Sub-total, net of tax
Deferred gains or losses on hedges:

Acquisition cost of assets adjustments

19

6

171

Sub-total, before tax

26

(13)

234

Tax (expense) or benefit

(9)

4

(81)

Sub-total, net of tax

17

(9)

153

¥(100)¥76$(901)

－

－

－

(100)

76

(901)

Foreign currency translation adjustment:
Increase (decrease) during the year
Reclassification adjustment
Sub-total, before tax
Tax (expense) or benefit
Sub-total, net of tax

－

－

－

(100)

76

(901)
$(6,522)

Remeasurements of defined benefit plans¥(724)¥(953)

Reclassification adjustment

204

395

1,838

Sub-total, before tax

(520)

(558)

(4,684)

Increase (decrease) during the year30

Tax (expense) or benefit

159

171

1,432

Sub-total, net of tax

(361)

(387)

(3,252)

Total other comprehensive income¥(569)¥435$(5,126)

21. Net Assets
Under the Japanese Corporate Law (“the Law”), the entire amount paid for new shares is required to be designated as common
stock (or preferred stock). However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding
one-half of the price of the new shares as additional paid-in capital, which is included in capital surplus in the accompanying
consolidated balance sheets.
Under the Law, in cases where dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividendor the excess, if any, of 25% of common stock and preferred stock over the total of additional paid-in capital and legal earnings
reserve must be set aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained
earnings in the accompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit or could becapitalized generally by a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all additional paid-in
capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which arepotentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial
statements of the Company in accordance with the Law.
22. Consolidated Statements of Changes in Net Assets(1) Common stock issued

Balance at April 1, 2017

Number ofsharesCommonstock
185,209,189

Increase during the year

1,951,072

Decrease during the year－

Balance at April 1, 2018

187,160,261

Increase during the year

13,183,136

Decrease during the year
Balance at March 31, 2019(2) Treasury stock outstanding

Balance at April 1, 2017－
200,343,397

Number ofsharesCommonstock
686,755

Increase during the year

3,525

Decrease during the year

28,659Balance at April 1, 2018

661,621

Increase during the year

2,277

Decrease during the year

97,068

Balance at March 31, 2019566,830(Note) Stock owned by BIP Trust is included in Treasury stock at March 31, 2019 (Included amount: 364,751 shares).

31

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

Major products and services

Civil engineering
Building construction
Consolidated subsidiaries

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

32

(3) Information about reported segment profit or loss, segment assets, segment liabilities and other material items(a) Segment information as of and for the fiscal year ended March 31, 2019 is as follows:
Millions of yen
CivilengineeringYear ended March 31, 2019:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:¥ 118,760¥ 208,851¥ 27,326¥ 354,937¥ 5,035¥ 359,972

¥ －

－

8

42,30642,31415

42,329(42,329)－

Total

118,760

208,859

69,632397,251

5,050

402,301(42,329)359,972

Segment profit

18,078

9,142

1,152

28,372705

29,077(5,385)23,692

Assets

Note 4Note 433,301

198,212

7,956

206,168

143,489

349,657

481

846

278

1,605

91

1,696

98

1,794

Note 4Note 4

954

2,071

－

2,071

21

2,092

Outside customers
Intersegment

Other material items:
Depreciation
and amortization
Capital expenditures¥ 359,972

Thousands of U.S. dollars
Civil
engineeringYear ended March 31, 2019:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:$1,069,814$1,881,371$246,158$3,197,343$45,356$3,242,699

$ －

－

72

381,101

381,173135

381,308(381,308)－

1,069,814

1,881,443

627,259

3,578,516

45,491

3,624,007(381,308)

3,242,699

Segment profit

162,850

82,353

10,378

255,581

6,351

261,932(48,509)

213,423

Assets

Note 4Note 4299,982

1,785,533

71,6691,857,202

1,292,577

3,149,779

Other material items:
Depreciation
and amortization
Capital expenditures

4,332

7,621

2,505

14,458819

15,277884

16,161

Note 4Note 4

8,594

18,656－

18,656

189

18,845

Outside customers
Intersegment
Total$3,242,699

Notes:
1. “Other” consisted of mainly research and other activities, which are not included in reportable segment.
2. Reconciliations amounts were as follows:(i) Reconciliations amount of segment profit was to ¥(5,385) million (US$(48,509) thousand), which included ¥(7) million (US$(63)thousand) of intersegment eliminations and others, and ¥(5,378) million (US$(48,446) thousand) of corporate expenses. Corporate
expenses were mainly general and administrative expenses, which are not attributed to reportable segments.
(ii) Reconciliations amount of segment assets was to ¥143,489 million (US$1,292,577 thousand), which included ¥(17,786) million(US$(160,220) thousand) of intersegment eliminations and others, and ¥161,275 million (US$1,452,797 thousand) of corporate assets.
Corporate assets were mainly cash and time deposits, investment securities and others, which are not attributed to reportable segments.
3. Segment profit was adjusted to operating income of consolidated statements of income.
4. As discussed in Note 23. (2), assets are not allocated to Civil engineering segment and Building construction segment, since the chief
operating decision maker has no financial information on assets in these segments. However, for your information, segment assets of Civil
engineering segment and Building construction segment are amounted to ¥164,911 million (US$1,485,551 thousand), and capital
expenditures of these segments are amounted to ¥1,117 million (US$10,062 thousand).

33

(b) Segment information as of and for the fiscal year ended March 31, 2018 is as follows:
Millions of yen
CivilengineeringYear ended March 31, 2018:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:
Outside customers¥127,590¥215,944¥27,026¥370,560¥6,461¥377,021¥ －¥377,021－

51

41,282

41,333

16

41,349(41,349)－
377,021

Intersegment
Total

127,590

215,995

68,308411,893

6,477

418,370(41,349)

Segment profit

22,365

16,562

1,441

40,368660

41,028(5,313)35,715

Assets

Note 4Note 4

36,162

179,355

8,590

187,945

141,833

329,778

485

822

265

1,572

94

1,666

116

1,782

Note 4Note 4

334

2,572

2

2,574

(7)

2,567

Other material items:
Depreciation
and amortization
Capital expenditures
Notes:

1. “Other” consisted of mainly research and other activities, which are not included in reportable segment.
2. Reconciliations amounts were as follows:(i) Reconciliations amount of segment profit was to ¥(5,313) million, which included ¥(12) million of intersegment eliminations and others,and ¥(5,301) million of corporate expenses. Corporate expenses were mainly general and administrative expenses, which are not attributed
to reportable segments.
(ii) Reconciliations amount of segment assets was to ¥141,833 million, which included ¥(21,435) million of intersegment eliminations andothers, and ¥163,268 million of corporate assets. Corporate assets were mainly cash and time deposits, investment securities and others,
which are not attributed to reportable segments.
3. Segment profit was adjusted to operating income of consolidated statements of income.
4. As discussed in Note 23. (2), assets are not allocated to Civil engineering segment and Building construction segment, since the chief
operating decision maker has no financial information on assets in these segments. However, for your information, segment assets of Civil
engineering segment and Building construction segment are amounted to ¥143,193 million, and capital expenditures of these segments areamounted to ¥2,238 million.

(4) Related information(a) Information about products and services
Disclosure of information about products and services is omitted, since reportable segments of the Companies are classified
by their products and services.
(b) Information about geographic areas(Revenues)
Revenues information about geographic areas for the year ended March 31, 2019 and 2018 are as follows:
Millions of yen

Geographic Areas
Japan
Other
Total

Thousands of
U.S. dollars
2019

2019

2018

¥329,729¥350,798

30,243

26,223

272,435¥359,972¥377,021$3,242,699$2,970,264(Tangible fixed assets)
Disclosure of tangible fixed assets information about geographic areas is omitted, since the proportion of tangible fixed assets
in Japan to total tangible fixed assets is over 90%.
(c) Information about major customers
Disclosure of information about major customers is omitted, since net sales to no single customer represented 10% or moreof total net sales of the Companies’ consolidated statements of income for the year ended March 31, 2019.

34

(d) Information about impairment loss of fixed assets by reported segment
Impairment loss of fixed assets by reported segment of the year ended March 31, 2019 and 2018 are as follows:
Millions of yen
2019

Impairment loss

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

Eliminations
and others

Other
¥ －

Total

¥46

¥46

Thousands of U.S. dollars
2019

Impairment loss

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

Eliminations
and others

Other
$ －

Total

$414

$414

Millions of yen
2018

Impairment loss

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

Eliminations
and others

Other
¥24

Total

¥728

¥752

24. Amounts per Share of Common Stock
Basis of calculation of basic and diluted profit attributable to owners of parent per share (the “EPS”) for the year ended March 31,
2019 is as follows:
Profitattributable toowners of parent
Year ended March 31, 2019:

Millions of yen

Profit attributable to owners of parent¥8,863

Basic EPS-Profit available to common shareholders¥8,863Weightedaverage
sharesThousands ofshares196,038

EPS
Yen

U.S. dollars¥45.21$0.41¥44.20$0.40

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation

(3)

4,401

¥8,866200,439(Note) Shares in BIP Trust are included in treasury stock from which are deducted in calculating profit attributable to owners ofparent per share. The weighted-average number of shares issued and outstanding during the year ended March 31, 2019 were 612
thousand including 383 thousand of shares in BIP Trust at the year ended March 31, 2019.
Basis of calculation of basic and diluted profit attributable to owners of parent per share (the “EPS”) for the year ended March 31,2018 is as follows:
Profitattributable toowners of parent
Year ended March 31, 2018:

Millions of yen

Weightedaverage
sharesThousands ofsharesProfit attributable to owners of parent¥23,862

Basic EPS-Profit available to common shareholders¥23,862

185,027(11)

14,713¥23,873

199,740

EPS
Yen¥128.97

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation¥119.4135

25. Financial Instruments(1) Status of financial instruments(a) Policies for using financial instruments
The Companies raise funds mainly by borrowings from bank and bond issues, and restrict temporary surplus funds to the lower
risk assets such as deposits. Derivative transactions are employed for hedging of the risk described below, and never use for
speculation.
(b) Detail of financial instruments and the related risks
Notes and accounts receivable are exposed to the credits risks in relation to customers. Foreign currency-dominated notes andaccounts receivable are also exposed to foreign exchange risk.
Investment securities which are mainly share held for keep the relationship with business partners are exposed to market pricefluctuation risk.
Notes and accounts payable are mostly settled within one year.
Borrowings are primarily for working funds. With variable interest rates, it is exposed to interest-rates risk.
Borrowings, notes and accounts payable are also exposed to liquidity risk.
Derivative transactions entered into by the Companies are forward currency exchange contracts to hedge foreign exchange risk
involving oversea business and interest rate swap contracts to hedge interest-rates risk involving borrowing.
Refer to Note 2(8) “Derivatives and hedging transactions” for information about the hedging instruments and hedging items,
hedging policy and method of evaluating hedging effectiveness concerning the hedge accounting methods adopted by theCompanies.
(c) Policies and processes for risk management
In order to control customer’s credit risk, each business and sales management division within the Companies conduct periodic
monitoring of key transaction partners and attempt to find out deterioration of the financial situation at the initial stage under theinternal credit policies.
For the purpose of hedging foreign exchange risk, the Companies conduct forward exchange contracts. The Companies also
conduct interest rate swap contracts to avert interest-rate risk by each long-term borrowing.
Fair value of investment securities are periodically reported to the Directors and Executive Officers. The possession situationof securities is also continually reviewed, taking into consideration of the Companies’ relationship with respective business
partners.
Derivative transactions are treated by the Finance Department in accordance with the established policies. The Companies deal
with credible banks to reduce the credit risk.
In order to manage the liquidity risk, the Companies update financial plan monthly.
(d) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on market value or reasonable estimate if there is no market value. Since certain
assumptions are used for estimating values, values could be different if different assumptions are applied. In addition, the derivative
contract amounts described in Note 26 “Derivative Financial Instruments” are not indicative of actual market risk involved inderivative transactions.
(e) Concentration of credit risk
The trade receivables for specific and large-scale customers accounted for 10.6% of the total trade receivables in the consolidated
financial statements of the current fiscal year. Since these large-scale customers are government agencies, the credit risk isextremely low.

36

(2) Fair value of financial instruments
The following tables summarize book values and fair values of financial instruments at March 31, 2019:
Millions of yen
TypeAssets(a) Cash and time deposits

Thousands of U.S. dollars

Book values

Fair values

DifferenceBook values

Fair values

Difference¥120,303¥120,303¥ －$1,083,713$1,083,713$ －(b) Receivables:
Notes
Accounts

8,236

8,236

－

74,192

74,192－

110,518

110,507(11)

995,568

995,469(99)(c) Marketable securities andInvestment securities:
35,19135,191－

317,007

317,007－¥274,248¥274,237¥(11)$2,470,480$2,470,381

$(99)

Notes

¥17,873¥17,873¥ －$161,004$161,004$ －Accounts

58,01958,019－522,647

522,647－

12,264

12,264－110,477

110,477

－

6,875

6,875

－

61,931

61,931

－

358

358

－

3,225

3,225

－

712

714

2

6,414

6,431

17

9,065

9,099

34

81,65981,965306¥105,166¥105,202¥36$947,357$947,680

$323

¥(5)

¥(5)

¥ －

$(45)

$(45)

$ －

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

The following tables summarize book values and fair values of financial instruments at March 31, 2018:
Millions of yen
TypeAssets(a) Cash and time deposits

Book values

Fair values

Difference¥110,768¥110,768¥ －(b) Receivables:
Notes

7,244

7,244

－

Accounts

98,191

98,185(6)(c) Marketable securities andInvestment securities:
Available-for-sale securities

48,171

48,171－¥264,374¥264,368

¥(6)

Notes

¥36,526¥36,526¥ －Accounts

51,936

51,936－

16,674

16,674

－

5,206

5,206

－

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

362

362

－

570

571

1

8,397

8,431

34

¥119,671¥119,706

¥35

¥(30)

¥(30)

¥ －

37

Notes:1. Method of measurement of financial instruments and matters concerning securities and derivatives(Assets)(a) Cash and time deposits
The fair values of this account is equivalent to the book value, since this account is settled in a short period of time.
(b) Notes and accounts receivables
The fair values of these accounts are based on the present value of discounted cash flows using the interest rate determined by the factors of theremaining terms and credit risks, with respect to each receivable categorized by collection terms.
(c) Marketable securities and Investment securities
The fair values of this account are based on the quoted market value. However, the fair value of negotiable certificates of deposit is equivalent
to the book value, since this account is settled in a short period of time.
(Liabilities)(a) Notes and accounts payables and (b) Short-term loans payable, Current maturities of long-term loans payable and Current portion of bonds
The fair values of these accounts are equivalent to the book value, since these accounts are settled in a short period of time.
(c) Bonds
The fair value of bonds issued by the Company is based on the price on bond markets or present value of the total principal and interest discounted
by an interest rate determined taking into account the remaining period of bond and current credit risk.
(d) Long-term loans payable, less current maturities
The fair values of this account are based on the present value of discounted cash flows using the interest rate which may be applicable when thesame kinds of borrowings are made.
(Derivative transactions)
See Note 26 “Derivative Financial Instruments”.
2. Financial instruments which are difficult to estimate the fair value
Non-marketable securities (book values of ¥3,250 million (US$29,277 thousand) and ¥3,636 million at March 31, 2019 and 2018, respectively)
are not included in the above “Assets (c) Marketable securities and investment securities”; since it is difficult to estimate the fair values thereof
because neither market quoted value is available nor future cash flows can be estimated.
3. Redemption schedules for cash and time deposits, receivables, held-to-maturity debt securities and other at March 31, 2019 and 2018 are as
follows:
Millions of yen
2019Within1 yearCash and time deposits¥120,303

2018

Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 yearsWithin1 year¥ －¥110,768Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 years¥ －Receivables:
8,236

－

－

－

7,244

－

－

100,092

10,426－－

93,913

4,278

－

－

Corporate bonds

2,000

－

－

－

2,000

－

－

－
－

Notes
Accounts

38－

Negotiable certificates of deposit

12,000－－－28,000

－

－

Other

2,000

－

－

－

－

－

－

－

Total

¥244,631¥10,426¥ －¥ －¥241,925¥4,278¥ －¥ －Thousands of U.S. dollars
2019
Within1 year
$1,083,713

Cash and time depositsOver
1 yearless than
5 years$ －Over
5 yearsless than
10 years$ －Over
10 years$ －Receivables:
Notes

74,192－－－

Accounts

901,648

93,920－－

Corporate bonds

18,017－－－

Negotiable certificates of deposit

108,098

－

－

－

Other

18,016

－

－

－

Total

$2,203,684$93,920$ －$ －26. Derivative Financial Instruments
Derivative transactions accounted for by the hedge accounting at March 31, 2019 and 2018 are as follows:(Currency-related transactions)
Millions of yen
2019Type ofderivative transactions

Main items
hedged2018

Contract amount
Settled overTotal
1 year

Fair
value

¥ －

¥ －

Contract amount
Settled overTotal
1 yearFair
value

Benchmark method:
Forecasted
Foreign exchange
forward contract (Buy EUR)

transactions
denominated

¥ －

¥661

¥ －

¥(20)

Buy in foreign
currencies
Thousands of U.S. dollars
2019Type ofderivative transactions

Main items
hedgedContract amount
Settled overTotal
1 yearFair
value

Benchmark method:
Forecasted
Foreign exchange
forward contract ((Buy EUR)

transactions
denominated

$ －

$ －

$ －

Buy in foreign
currencies

Note:
1. Fair value is based on the prices obtained from counterparty financial institutions.

39

(Interest-related transactions)
Millions of yen
2019Type ofderivative transactions

Main items
hedged2018

Contract amount
Settled overTotal
1 yearFair
value

Contract amount
Settled overTotal
1 yearFair
value

Benchmark method:
Interest swap contract:
To pay fixed, to receive variable

Long-termloans payable

¥648

¥576

¥(5)

¥720

¥648

¥(10)

¥2,544¥378

Note 2¥4,072¥2,544Note 2

Short-cut method:
Interest swap contract:
To pay fixed, to receive variable

Long-termloans payable

Thousands of U.S. dollars
2019Type ofderivative transactions

Main items
hedgedContract amount
Settled overTotal
1 yearFair
value

Benchmark method:
Interest swap contract:
To pay fixed, to receive variable

Long-termloans payable$5,837$5,189¥(45)$22,917$3,405Note 2

Short-cut method:
Interest swap contract:
To pay fixed, to receive variable

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

40

27. Stock Option Plans(1) No cost for stock options is recognized for the years ended March 31, 2019 and 2018.
(2) The stock options outstanding at March 31, 2019 are mainly as follows:(a) Content
The first series
The second seriesof shareof sharesubscription rights (A)subscription rights (A)June 27, 2008
Persons granted
Class and number ofsharesDate of grantCondition of
settlement rights

Length of service
Exercisable period

Persons granted
Class and numberof shares
Date of grantCondition of
settlement rights

Length of service
Exercisable period

Directors of the Company: 8
Executive officers: 13

June 26, 2009
Directors of the Company: 9
Executive officers: 12

110,400 sharesof common stock

115,000 sharesof common stock

July 15, 2008

July 14, 2009
The person who exercises
stock purchase rights shall bea director, or executive
officer of the Company, who
has continued to work at theCompany from the sixth
stockholders’ meeting to theseventh stockholders’meeting.
However, this condition isinvalid in case of death orloss of position due to theCompany circumstances.

The person who exercises
stock purchase rights shall bea director, or executive officerof the Company, who has
continued to work at theCompany from the fifth
stockholders’ meeting to thesixth stockholders’ meeting.
However, this condition isinvalid in case of death or lossof position due to theCompany circumstances.
From July 15, 2008

From July 14, 2009

to July 14, 2009

to July 13, 2010

From July 15, 2009

From July 14, 2010

to July 14, 2019

to July 13, 2020

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

June 29, 2011

Directors of the Company: 8
Executive officers: 8

Directors of the Company: 9
Executive officers: 13

90,000 sharesof common stock

85,800 sharesof common stock

July 16, 2010
The person who exercises
stock purchase rights shall bea director, or executive officerof the Company, who has
continued to work at theCompany from the seventh
stockholders’ meeting to theeighth stockholders’ meeting.
However, this condition isinvalid in case of death or lossof position due to theCompany circumstances.

July 15, 2011
The person who exercises
stock purchase rights shall bea director, or executive
officer of the Company, who
has continued to work at theCompany from the eighth
stockholders’ meeting to theninth stockholders’ meeting.
However, this condition isinvalid in case of death orloss of position due to theCompany circumstances.

From July 16, 2010

From July 15, 2011

to July 15, 2011

to July 14, 2012

From July 16, 2011

From July 15, 2012

to July 15, 2021

to July 14, 2022

41

(b) Number and price

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

－

－

－

－

Granted during the year

－

－

－

－

－

－

－

－

Vested during the year

－

－

－

－

At the end of the year

－

－

－

－
33,000Non-vested shares

Forfeited and expired during theyear

Vested shares
At the beginning of the year

8,800

18,40031,500

Vested during the year

－

－

－

－

Exercised during the year

8,800

18,400

4,500

9,900

－

－

－

－

Unexercised at the end of the year－－

27,00023,100Exercise price

¥1

¥1

¥1

¥1

Average stock price at exercise

¥761

¥736

¥758

¥929

Fair value price at the grant date

¥107

¥101

¥72

¥111

Forfeited or expired during theyear(3) Method to estimate fair value of stock options
The Company does not grant any stock options to its employees for the current fiscal year.
(4) Method to estimate number of vested stock options
As a reasonable estimate of the forfeited number of stock options in the future is generally difficult, the Company adopts a method
whereby only actual forfeited numbers are reflected.

42

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

Branches

Sapporo, Tohoku, Hokuriku, Tokyo, Kanto, Shizuoka,
Nagoya, Osaka, Shikoku, Hiroshima, Kyushu

International Division

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

Branches

81-3-6234-3600

81-3-6234-3640

Asia, North America

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

81-29-858-8800

Overseas

TurkeyU.S.A.
Laos
Cambodia
Nepal

South Africa

OfficesThailand

Vietnam

Sri Lanka
MyanmarThailand
Malaysia
Indonesia

MexicoHonduras
PanamaAddressPhone

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

66-2-665-7041

Vietnam

18th Floor, Harbour View Tower, 35 Nguyen Hue Street, District 1, Ho Chi Minh City, Vietnam84-28-38299533

Malaysia

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

60-3-2031-4902

Indonesia

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

62-21-3140392

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

95-1-2316002 (Ext.513)

Sri Lanka

4th Floor, No. 65C, Dharmapala Mawatha, Colombo 07, Colombo 00700, Sri Lanka

94-11-233-4784

Laos

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

856-21-250-872

Cambodia

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

855-23-992-914

Nepal

Jagannath Bhawan, Arniko Rajmarga, New Baneshwor, Ward No.10, Kathmandu, Nepal

977-1-4787289

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

90-216-456-5047

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

52-55-5525-9311

U.S.A.

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

1-614-985-4906

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

Honduras

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

504-2271-1283

South Africa 2nd Floor, West Tower, Maude Street, Nelson Mandela Square, Sandton 2196, Johannesburg, Republic ofSouth Africa PO Box 785553 Sandton

27-11-881-5959

44

Corporate DataName

(As of March 31, 2019)

Authorized Shares

HAZAMA ANDO CORPORATION

Issued Shares

Common stock
400,000,000

Established

Common stock
200,343,397

October 1, 2003

Number of Shareholders
29,202
Number of Employees
3,493

Capital¥17,006,123,275

Directors, Officers
Board Directors
Representative Director andPresident
Masato Fukutomi
Board Directors and Vice
Presidents
Toru Ikegami
Muneo Gomi
Haruyuki Kaneko
Board Directors/ Managing
Executive Officers
Shinya Miyamori
Katsuhiko Tabuchi(As of June 27, 2019)

Board Directors(External Board Directors)
Masami Fujita
Mariko Kitagawa
Mieko Kuwayama

Auditors
Auditors
Norio Chonan
Tomoki Kitagawa
Corporate Auditors(External Auditors)
Shigeo Kamimura
Masamitsu Takahara

Executive Officers
Senior Managing Executive
Officer
Hikari Yamazaki
Managing Executive Officers
Kazuya Ozawa
Hajime Tsukizu
Shin Terauchi
Executive Officers
Shinkichi Komatsubara
Tatsumi Asao
Masaaki Tomita
Ken Moriyasu
Kazutaka Miyazaki

Major Subsidiaries and Affiliates
Name
Stated Capital			

Hiroshi Ono
Takeshi Komatsu
Fuminori Hirosue
Ryo Onishi
Ichiro Kato
Tetsuo Tomoike
Akio Fujimoto
Naoto Aida
Michio Yoshida(As of March 31, 2019)

Principal Business

Address / Phone

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

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

Aoyama Kiko Co., Ltd.
80 million JPY
Construction, Procurement			

2-18-4, Kitaueno, Taito-ku, Tokyo 110-0014, Japan
81-3-5830-9500

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

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

URBAN PLANNING INC.
90 million JPY
Architectural Design			

1-4-8, Shiba Daimon, Minato-ku, Tokyo 105-0012, Japan
81-3-3578-0655

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

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

PT. Hazama Ando Murinda
50,000 Million IDR Construction						Menara Thamrin, 14th Floor, Suite 1405, JL. M.H. Thamrin Kav. 3,
Jakarta, 10250, Indonesia
62-21-3141780

VIETNAM DEVELOPMENT
1 Million USD
Construction
CONSTRUCTION CO.,LTD.			
			

18th Floor, Harbour View Tower, 35 Nguyen Hue Street, District 1,
Ho Chi Minh City, Vietnam84-28-38299533
45

V09I Printed in Japan