2017

Year ended March 31, 2017

Profile

HAZAMA ANDO CORPORATION was launched on April 1, 2013, through the merger of
HAZAMA CORPORATION and ANDO Corporation, with the aim of an expanded businessscale, a streamlined and more effective management structure, and greater earning
capacity.
ANDO Corporation was founded in 1873, and HAZAMA CORPORATION in 1889. As
general contractors, each with well over a century of history and possessing industry-leading
technological capabilities built on experience with numerous projects, these two companies
have contributed to Japan’s development and the creation of today’s modern lifestyle. The
firm’s business scope extends beyond Japan to 30 countries and territories around theworld.
In addition to an expanded business scale and greater management efficiency, themerger has brought together HAZAMA CORPORATION’s established reputation in civilengineering with ANDO Corporation’s expertise in building construction, allowing the
integrated company to utilize the complementarity effect of each firm’s previous
accomplishments, and generate synergies in terms of technology, marketing, and costcompetitiveness. In the four years since the merger, HAZAMA ANDO CORPORATION has
strengthened its management foundation, and achieved a high level of profitability.
HAZAMA ANDO CORPORATION aspires to be a “good company” for all of its
stakeholders. With solid technology and passion we will meet expectations, and contributeto the development of society through building and manufacture. Further, by looking
beyond the present, continually seeking to create new value, and enhancing sustainablecorporate development, we will seek to realize a prosperous future, and to establish a new
history and tradition as HAZAMA ANDO CORPORATION.

CONTENTS

Financial Highlights.................................................................................. 1
Message from the Chairman & the President............................................ 2
Business Conditions and Outlook............................................................. 3
Topics 2017............................................................................................. 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, 2017, 2016 and 2015

Millions of yen		2017¥407,994
37,01826,277318,387
100,744

Consolidated
Revenues
Operating income
Profit attributable to owners of parent
Total assets
Net assets
		Basic profit attributable to owners of parent per share
Net assets per share

Thousands of
U.S. dollars

2016¥379,258
25,457
14,984300,368
76,9782015¥369,703
18,5187,240
269,720
64,621

2017$3,636,310
329,929
234,198
2,837,674
897,897

Yen¥ 142.30
541.43¥

U.S. dollars

81.03
411.76¥39.17
345.56

$

1.27
4.83

Note: U.S. dollar amounts in this annual report are translated from yen at the rate of ¥112.20 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

407,994
400,000

369,703

40,000379,258

37,018362,214300,000

30,000300,000

400,000

399,308

25,457200,000

20,000100,000

10,000

0

‘15

‘16

‘17

0

200,000

18,518100,000

‘15

‘16

‘17

0

‘15

‘16

‘17

1

Message from the Chairman & the President

Toshio Ono,
Representative Director andChairman of the Board of Directors

The HAZAMA ANDO CORPORATION Group, withthe aim of being a group able to achieve sustainablegrowth, formulated a medium-term management
plan (FY3/16 – FY3/18) with the strategic theme of“Transformation to an Engaging Corporate Group,”and is making a concerted effort to implement thisplan.
In the fiscal year ended March 2017, the second
year of the management plan, we continued
measures from the previous fiscal year to secure anddevelop human assets. We also moved forward asplanned with labor-saving measures, including
technology development utilizing ITC and artificial
intelligence (AI), and construction of a precast
concrete factory.
In terms of business results, supported by themoderate recovery in the Japanese economy, we
exceeded our plan target figures for both revenue
and earnings, with earnings reaching a record highfor second consecutive year. This is the result of theunderstanding and support we have received fromstakeholders, and we would like to express our
sincere appreciation.

2

Toshiaki Nomura,
Representative Director and President

Looking ahead to the fiscal year ending March
2018, we expect the economy to continue recovering
at a moderate pace, with improvement in corporate
earnings, employment, and income. However, thepotential for political developments overseas to result
in restraints on capital investment remains a concern.
In the construction industry, with several major
projects getting fully underway, caution continues tobe necessary regarding supply-demand trends forskilled construction workers and building materials.
We also need to address productivity improvements
through working-style reforms.
Under such circumstances, the HAZAMA ANDOCORPORATION Group will steadily implement themeasures of the management plan, maintain stability
in its management and financial base, and follow to apath for sustainable growth.
We will adhere to our basic management policyof “Safe, Reliable, High-Quality Manufacturing,” withthe aim of establishing a relationship of mutual
growth with all stakeholders, including society,customers, shareholders, business partners, andemployees. We ask for your continued understanding
and support.

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 2017, withimprovement in corporate earnings, along with signs of an upturn in consumer spending.
Looking ahead, while the impact from the increasing opaqueness in overseas economies remains a concern, we
expect the economy to continue recovering at a moderate pace amid improvement in employment and income, and theeffects of government policy measures.
In the construction industry, the principal business of the HAZAMA ANDO CORPORATION Group, businessconditions remain favorable as a result of firm public and private sector construction investment, along with stabilizationin labor supply-demand trends and construction material prices.
Under such conditions, HAZAMA ANDO CORPORATION Group recorded consolidated revenues of ¥407.9 billion(+7.6% year on year) for the fiscal year ended March 2017, with operating income of ¥37.0 billion (+45.4%), ordinary
income of ¥36.2 billion (+55.5%), and profit attributable to owners of parent of ¥26.2 billion (+75.4%).

Results by business segment are as follows.
•Civil Engineering
Revenues amounted to ¥134.0 billion (+9.4% year on year), with operating income of ¥26.9 billion (+78.7%).
•Building Construction
Revenues amounted to ¥238.9 billion (+2.3% year on year), with operating income of ¥13.0 billion (+3.7%).
•Group Business
Revenues amounted to ¥25.5 billion (+36.4% year on year), with operating income of ¥1.6 billion (-0.1%).
•OtherRevenues amounted to ¥9.4 billion (+108.1% year on year), with operating income of ¥0.7 billion (+133.2%).

2

Future Outlook

The business environment is expected to continue recovering at a moderate pace, with improvement in corporate
earnings, employment, and incomes. However, concerns remain that overseas political trends will result in greater
wariness in the private sector toward capital expenditures, and delays in investment.
In the construction industry, with the full-fledged launch of several major projects, caution continues to benecessary regarding supply-demand trends for skilled construction workers and building materials. We also need toaddress productivity improvements through working-style reforms.
Under such circumstances, HAZAMA ANDO CORPORATION moved steadily forward with implementing its
medium-term management plan (FY3/16-FY3/18) formulated in May 2015, adapting to changes in the businessenvironment and achieving sustained growth.

2nd Medium-Term Management Plan
Summary of the Medium-Term Management
Plan
1.Period
The fiscal year ending March 2016 through thefiscal year ending March 2018
2.Strategic Theme“Transformation to an Engaging Corporate Group”
3.Priority Measures
1) Measures for sustainable growtha. Enhance construction capabilities
b. Expand business scopec. Procurement measuresd. Secure management resources2) Measures for work satisfaction and personal
growtha. Improve the work environmentb. Promote career formation with a sense ofsatisfaction3) Measures for coexistence with society
a. Measures for safety and quality
b. Measures to address issues in the constructionindustryc. Measures to respond to changes in the social
environment4) Measures to stabilize and strengthen management
and financial foundations
a. Stabilize and strengthen management andfinancial foundation
b. Returns to shareholders
4.Target Figures
The fiscal year ending March 2018 (the fiscal year end of final plan year)
Construction orders received
Revenues
Operating income
Operating profit margin
ROE
Payout ratio

Non-consolidated
Consolidated
Around ¥400bn—
Around ¥380bn Around ¥400bn
Around ¥19bn
Around ¥20bn
Stably above 5%—Over 10%—Around 20%

3Topics 2017

Accurate and Real-time Management of NonVisible Soil Project Data
“3D Pile Viewer” system allows visualization of datafrom piling and soil stabilization projects
HAZAMA ANDO CORPORATION has developed and begun using“3D Pile Viewer,” a system that enables the three-dimensional
visualization, accumulation, and utilization of a wide range ofdata gained during soil stabilization or piling projects. Thissystem allows project managers to easily confirm in real time theground makeup during soil stabilization or changes in theb e a r i n g l a y e r, a n d t o c o n d u c t e v a l u a t i o n a n d m a k edeterminations during construction accurately and quickly. This
improves the certainty and reliability of the makeup and quality
control, and further enhances the efficiency of construction
management.

Visualization of data

Utilizing ICT to Control Embankment Compaction
Real-time monitoring system to assess the status of soil
compaction
HAZAMA ANDO CORPORATION has developed a quality control
system for embankment construction that uses a GPS andaccelerometer attached to vibratory rollers to monitor the status
of soil compaction (density and saturation) in real time. Because
the evaluation of soil compaction can be done in real time,rather than after construction under the previous method, thesystem prevents insufficient compaction, and allows for higher
quality embankments. Going forward, HAZAMA ANDOCORPORATION will utilize this technology for embankment
work, helping to establish strong social infrastructure resistant tonatural disasters.

AI-based Optimal Management of Renewable andStored Energy

Monitoring system

Fig.1 AHSES Structure• Generate energy (Create)

Smart energy system utilizing artificial intelligence
HAZAMA ANDO CORPORATION has developed the Adjusting to
Human Smart Energy System (AHSES), an energy management
system for a single building or an entire region. This system uses
artificial intelligence (AI) to forecast electric power demand, andoptimally control the energy flow with a mix if renewable andstored energy. It can also function as an emergency powersource during major natural disasters or other emergencies.

Powercompanies

Buy

Visualization
Control• Energy demand forecast• Optimal operation plan
• Accumulate energy (Store, Use)
• Power conversion

Weather data

Building usage datainternet

4

CreateUse
Buy

HAZAMA ANDO Technical Research Institute
Structure: Reinforced concrete (RC)
Floors: One below ground, five above ground2
Total floor space: Approx. 11,000 m

Guided Tours for Students and Children, and
IR-Related On-Site Tours
As part of its social contribution program, HAZAMA ANDOCORPORATION provides guided tours for students and young
children to introduce them to the construction industry at an
early age. These tours are conducted at construction sites andR&D centers throughout Japan, and include carefully designed
lear ning experiences and other activities to enhance
understanding and awareness of construction.
HAZAMA ANDO CORPORATION also conducted an
on-site tour for institutional investors and analysts of the
Yokohama Ring Expressway North-West Line Shield Tunnel
Construction Project. A total of 18 people joined the tour,
experiencing a close-up look at HAZAMA ANDOCORPORATION’s business and technologies.

Guided tour for children (Activity corner)

New Manufacturing Plant for Concrete Products
Established in Chiba
Use of precast concrete products is expected to increase to meetneeds for labor savings and greater efficiency in construction. To
ensure a stable supply of these products, HAZAMA ANDOCORPORATION established a new manufacturing facility in
Chiba, Chiba Prefecture, the second such plant for the HAZAMAANDO CORPORATION Group. The new factory began operations
in June 2017.
Structure and scale: Steel construction single-story building
Total floor space: 6,794.74 m2
Manufacturing capacity: Concrete placement Max 200 m3/day(Three production lines)
Product output: Shield segments, construction PCa components, etc.

HAZAMA ANDO Chiba Plant

Efforts to Normalize Site Closures
HAZAMA ANDO CORPORATION has made efforts for workingstyle reform in construction from an early stage, including
measures for construction site closures in order to improve theworkplace environment. Closing construction sites allows partnercompanies and HAZAMA ANDO CORPORATION employees totake days off together. We set a target of six closures per fourweek period for civil engineering projects, and five closures per
four-week period for construction projects, with an achievement
rate of more than 80% overall in FY3/17. Going forward, we willfurther accelerate efforts to implement a five-day week forconstruction, and provide a better working environment.
Managing the calendar for site closures and other short-term plans

5Review of Operations

Major Orders Received● Tokyo Contour Belt Highway Tomei Junction Ramp Shield
Tunnel and Underground Widening (South Bound)
Construction Work/East Nippon Expressway Company
Limited (Japan)● Nam Ngum 1 Hydropower Station Expansion Project Lot:1
Civil and Hydro Mechanical Works/Electricité du Laos
(Laos)● Marine Drive Hotel Project/Marine Drive Hotels (Private)
Limited (Sri Lanka) ❷● Tama Technology Building Construction Work/MinamiTama Specific Purpose Company (Japan) ❶● Countermeasure for Sediment in Wonogiri Multipurpose
Dam Reservoir (II)/ The Directorate General of Water
Resources, Ministr y of Public Work s and Housing(Indonesia)● Bandaranaike International Airport Development Project
Phase II Stage 2/Airport and Aviation Services (Sri Lanka)
Limited (Sri Lanka)❶❷

Major Projects in Progress● Nagoya Castle Hommaru Palace Restoration Work/City of
Nagoya, Aichi Prefecture (Japan)● Vientiane International Airport Terminal Expansion Project/
Ministry of Public Works and Transport, Lao P.D.R.
(Laos) ❸● Yokohama Ring Expressway North-West Line Shield Tunnel
Construction Work / Cit y of Yokohama, Kanagawa
Prefecture (Japan)

6● Tokyo Contour Belt Highway Main Tunnel (North Bound)
Oizumi Minami Construction Work / Central Nippon
Expressway Company Limited (Japan)● Apporo Dam Main Construc tion Work / Hokkaido
Government Iburi General Subprefectural Bureu (Japan)● The Project for Improvement Water supply system ofCoronel Oviedo City / Ministry of Public Works andCommunications, Republic of Paraguay (Paraguay) ❹❸❹● Tsugaru Dam Main Construction Work/Tohoku Regional
Bureau, Ministry of Land, Infrastructure, Transport andTourism (Japan) ❺● YKK Vietnam Co., Ltd. Nhon Trach Factory Phase 2 Project/YKK VIETNAM Co., LTD. (Vietnam) ❽Major Projects Completed● Sukagawa Cit y Government Of fice Building Main
Construc tion Work / Cit y of Sukagawa, Fukushima
Prefecture (Japan) ❻● The Project for Rehabilitation and Improvement of Buluto
Irrigation Scheme/Ministry of Agriculture and Fisheries,
The Democratic Republic of Timor-Leste (East Timor) ❼● FETL AYUTTHAYA A, B FACTORY INTERIOR RENOVATIONWORK / Fujikura Electronics (Thailand) Ltd. (Thailand)● Hamaoka Nuclear Power Plant Superstructure Work of
Water Prevention Wall Construction Work (East Section)/
Chubu Electric Power Co.,Inc. (Japan)

❺

❼

❻

❽

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 businessexecution 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 theCompany that limit liability for damages to an amount prescribed by law.
2. Board of Directors
The Board of Directors had 12 members as of June 30, 2017 (including two external directors, of which one is female), comprising executive
and non-executive directors. External directors, who are non-executive directors, serve in roles based on their experience and insights,
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 30, 2017, totaled 33 (including 10 executive officers who concurrently serve as directors).
HAZAMA ANDO CORPORATION has established the six officer categories of “chairman,” “president,” “vice president,” “senior managing
executive officer,” “managing executive officer” and “executive officer.” We have clarified the responsibilities for the operations executive
officers manage, and limited the term to one year to enhance the mobility and flexibility of the executive officer system. In addition, weclarified through a resolution of the Board of Directors the rights and responsibilities regarding operations managed, and implemented acompensation 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 30, 2017 (including 2 non-regular external directors). Auditors (including external
auditors), in accordance with auditing standards established by the Board of Auditors, and in line with the 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 and explanations from directors andemployees regarding the status of the execution of their duties, review important documents and other papers, and conduct audits at thehead 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.
●

Corporate Governance and Internal Control Structure
Shareholders’ Meeting

Management
Appoint /Dismiss
Directors
Board of Directors

Audit

Board of Auditors
Secretariat
Business
Execution

ReportReport/Recommend

Audit

Coordinate

Consult

ReportManagement Meeting

Executive Officer
Meeting of Executive Officers

Compliance Promotion Committee

ReportDirectAudit Department
Audit
Business Divisions

8

Audit

ReportReportDirectCoordinate

Coordinate

ChairmanPresident

ReportAccounting Auditor

Committees
Supervise

DirectAppoint/Dismiss

Appoint/Dismiss
Audit
ReportAuditors
Board of Auditors

DirectSafety and Health Committee

DirectCoordinate
CSR Promotion Department
ReportImplement

ReportAudit

ImplementGroup Companies(Subsidiaries)

Consolidated Financial Review
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2017, 2016, 2015, 2014 and 2013

Summary
Thousands of
U.S. dollars

Millions of yen
2017

2016

2015

2014

2013

2017

$3,377,745

Operating results:
Revenues¥378,983¥360,869¥355,069¥357,474¥182,740

Other activities

29,011

18,38914,634

13,74315,159258,565

Total

407,994379,258

369,703371,217

197,899

3,636,310

348,836

334,524

333,691

342,810

182,271

3,109,055

59,15844,73436,012

28,407

15,628527,255

22,14019,277

17,494

16,32910,015

197,326

37,01825,457

18,51812,0785,613

329,929

26,277

14,984

7,240

16,414

2,293

234,198

Total assets¥318,387¥300,368¥269,720¥260,646¥141,880$2,837,674

Total liabilities

217,643

223,390

205,099

206,265

109,036

1,939,777

Total net assets

100,744

76,97864,621

54,381

32,844

897,897¥(1,802)¥34,722¥15,716¥7,464¥7,934$(16,061)

6,317(12,016)

(134)

3,593

(723)

56,301(3,376)

5,941(7,490)(54)(4,347)(30,089)

Construction contracts

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

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

Yen

U.S. dollars

Per share amounts:
Profit attributable toowners of parent
Basic¥142.30¥81.03¥39.17¥96.47¥20.69$1.27

Diluted131.60

80.96

39.12

88.59

14.74

1.17
0.18

Dividends
20.00

12.00

8.00

5.00

3.00

Class I preferred stock

－

－

－

－

78.40

－

Class II preferred stock

－

－

－

－

88.40

－

Class III preferred stock

－

－

－

－

98.40

－

Class IV preferred stock

－

－

－

－

－

－

541.43411.76345.56290.96212.75

4.83

Common stock

Net assets

Note: 1. U.S. dollar amounts in this annual report are translated from yen at the rate of ¥112.20 to US$1.00 for convenience.
2. The dividend per share for 2014 includes a ¥2 commemorative dividend.
3. The main reason for significant changes in the management indicators of 2014 due to the merger with ANDO
Corporation.

9

Financial Review
Revenues
Revenues in fiscal 2017 totaled ¥407,994 million (US$3,636,310 thousand), of which ¥378,983 million (US$3,377,745
thousand) came from construction projects and ¥29,011 million (US$258,565 thousand) from other activities. These two businesssegments accounted for 92.9% and 7.1%, respectively, of total revenues.
Costs and Expenses
Cost of sales amounted to ¥348,836 million (US$3,109,055 thousand), which is equivalent to 85.5% of revenues. Selling, generaland administrative expenses amounted to ¥22,140 million (US$197,326 thousand), which is equivalent to 5.4% of revenues.
Operating income reached ¥37,018 million (US$329,929 thousand), and the operating margin was 9.1%. Profit attributable toowners of parent amounted to ¥26,277 million (US$234,198 thousand). Basic profit attributable to owners of parent per sharewas ¥142.30 (US$1.27). We paid dividend of ¥7 per share for the fiscal year ended March 31, 2016 on June 30, 2016, and paidinterim dividend of ¥9 per share for the fiscal year ended March 31, 2017 on December 2, 2016.
Financial Position and Analysis
Total assets amounted to ¥318,387 million (US$2,837,674 thousand), total liabilities amounted to ¥217,643 million(US$1,939,777 thousand), and total net assets amounted to ¥100,744 million (US$897,897 thousand) at the end of fiscal 2017.
Net worth to total assets ratio was 31.4%. Net assets per share amounted to ¥541.43 (US$4.83).
Cash Flows
Cash and cash equivalents at the end of the year increased by ¥732 million (US$6,524 thousand) to ¥107,668 million(US$959,608 thousand).
Net cash provided by operating activities amounted to ¥(1,802) million (US$(16,061) thousand) mainly as the result of
income before income taxes amounting to ¥35,253 million (US$314,198 thousand), increase in notes and accounts receivableamounting to ¥20,186 million (US$179,911 thousand) , income taxes paid amounting to ¥9,804 million (US$87,380 thousand)and decrease in advances received amounting to ¥6,406 million (US$57,095 thousand).
Net cash provided by investing activities amounted to ¥6,317 million (US$56,301 thousand) mainly as a result of proceedsfrom withdrawal of time deposits amounting to ¥9,681 million (US$86,283 thousand).
Net cash used in financing activities amounted to ¥(3,376) million (US$(30,089) thousand) mainly as a result of repayment oflong-term loans payable amounting to ¥5,670 million (US$50,535 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

2017

2016

2015

2014

2013

2017

Government sector¥99,198¥85,772¥77,095¥80,092¥59,343$884,118

Private sector

31,43432,72136,75723,32325,442

280,160

3,543

4,002

7,721

6,695

6,275

31,577

134,175

122,495

121,573

110,110

91,0601,195,855

Civil engineering
Domestic

Overseas
Subtotal
Building construction
Domestic
Government sector

45,292

29,40425,713

21,5903,613

403,672

Private sector

169,470

171,296

169,524

183,281

62,8281,510,428

24,161

32,76230,74631,14921,881

215,339

Subtotal

238,923

233,462

225,983

236,020

88,322

2,129,439

Total construction projects¥373,098¥355,957¥347,556¥346,130¥179,382$3,325,294

Overseas10Revenue from the civil engineering category accounted for ¥134,175 million (US$1,195,855 thousand), or 36.0% of total revenue
from construction projects, with domestic projects contributing ¥130,632 million (US$1,164,278 thousand), or 97.4%.
The government sector contributed ¥99,198 million (US$884,118 thousand), or 75.9%, of total domestic civil engineering
revenue, while private-sector civil engineering revenue amounted to ¥31,434 million (US$280,160 thousand), or 24.1% of total
domestic civil engineering revenue. Overseas civil engineering revenue reached ¥3,543 million (US$31,577 thousand),equivalent to 2.6% of total revenue in the civil engineering category.
Revenue from the building construction category totaled ¥238,923 million (US$2,129,439 thousand), or 64.0% of total
construction revenue. Domestic projects accounted for ¥214,762 million (US$1,914,100 thousand), or 89.9%.
The government sector contributed ¥45,292 million (US$403,672 thousand), or 21.1%, of total domestic building
construction revenue, while private-sector building construction revenue amounted to ¥169,470 million (US$1,510,428 thousand),or 78.9%, of total domestic building construction revenue. Overseas building construction revenue reached ¥24,161 million(US$215,339 thousand), equivalent to 10.1% of total revenue in the building construction category.
Total overseas construction revenue reached ¥27,704 million (US$246,916 thousand) and accounted for 7.4% of total
construction revenue. Civil engineering projects accounted for 12.8% of this total, and building construction for 87.2%.
Thousands of
U.S. dollars

Millions of yen
Orders Received
Civil engineering

2017

2016

2015

2014

2013

¥193,008¥123,292¥167,060¥107,666¥92,395

2017$1,720,214

Building construction

236,278

238,922232,248

226,094

94,5562,105,864

Total construction projects¥429,286¥362,214¥399,308¥333,760¥186,951$3,826,078

Orders received for construction projects during fiscal 2017 amounted to ¥429,286 million (US$3,826,078 thousand). Overseas
work contributed 8.1% of orders in the construction category. Civil engineering orders amounted to ¥193,008 million(US$1,720,214 thousand), or 45.0% of total construction orders. Building construction orders amounted to ¥236,278 million(US$2,105,864 thousand), which is equivalent to 55.0% of total construction orders.
Thousands of
U.S. dollars

Millions of yen
Year-end Backlog
Civil engineering

2017

2016

2015

2014

2013

2017

¥226,120¥167,343¥166,623¥121,099¥114,655$2,015,330

Building construction

186,748

189,780

184,297

177,794

69,652

1,664,420

Total construction projects¥412,868¥357,123¥350,920¥298,893¥184,307$3,679,750

Order backlog for construction projects at the end of fiscal 2017 amounted to ¥412,868 million (US$3,679,750 thousand), withcivil engineering work accounting for ¥226,120 million (US$2,015,330 thousand), or 54.8%, and building construction for¥186,748 million (US$1,664,420 thousand), or 45.2%.

11

Consolidated Balance Sheets
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
March 31, 2017 and 2016

Thousands of
U.S. dollars(Note 1)
2017

Millions of yen
2017

2016

AssetsCurrent assets:
Cash and time deposits (Notes 4 and 24)¥88,700¥100,618$790,553

Marketable securities (Notes 3 and 24)

20,00016,000178,253

2,630

10,10523,440Receivables (Note 24):
Notes

120,303

92,5881,072,219

Inventories (Notes 5 and 8)

10,205

11,84590,954

Deferred tax assets (Note 18)

3,592

2,105

32,014

Other (Note 7)

17,44812,252

155,508

Accounts

(13)

(10)

(116)

262,865

245,5032,342,825

Land

16,30917,933

145,357

Buildings and structures

19,147

17,815

170,651

Machinery and equipment

9,123

8,850

81,310

Other

1,152

830

10,267Less allowance for doubtful accounts
Total current assets

Property, plant and equipment (Notes 7, 13 and 14):

Less accumulated depreciation
Net property, plant and equipment

45,73145,428407,585(19,223)(18,526)(171,328)

26,50826,902

236,257

20,23820,394

180,375

Investments and other assets:
Investment securities (Notes 3, 7 and 24)
Investments in unconsolidated subsidiaries and affiliates

300

340

2,674

Long-term loans receivable (Note 7)

500

558

4,456

Deferred tax assets (Note 18)

2,195

2,041

19,563

Other (Note 7)

5,804

6,876

51,729Less allowance for doubtful accounts(23)(2,246)(205)

Total investments and other assets

29,01427,963

258,592¥318,387¥300,368$2,837,674

Total assets
See accompanying notes.

12Thousands of
U.S. dollars(Note 1)
2017

Millions of yen
2017

2016

Liabilities and Net Assets
Current liabilities:¥16,674¥11,678$148,610

5,152

5,645

45,918

391

451

3,485

Notes

48,88331,147435,677

Accounts

55,404

71,387493,797

Income taxes payable

7,465

5,996

66,533

Advances received (Note 16)

230,241

Short-term loans payable (Notes 6 and 24)
Current maturities of long-term loans payable (Notes 6 and 24)
Current portion of bonds (Notes 6 and 24)
Payables (Note 24):

25,83331,498

Accrued expenses

20

487

178

Provision for losses on construction contracts (Note 8)

606

3,622

5,401

25,482

24,992

227,112

185,910

186,903

1,656,952

441

832

3,930

10,033

10,05089,421

Other
Total current liabilities
Long-term liabilities:
Bonds (Notes 6 and 24)
Convertible bond-type bonds with subscription rights to shares(Notes 6 and 24)
Long-term loans payable, less current maturities (Notes 6 and 24)

8,544

12,72076,150Net defined benefit liability (Note 17)

11,91812,181

106,221

Provision for environmental spending

153

156

1,364

Provision for management board incentive plan trust

78

－

695

Deferred tax liabilities (Note 18)

56

56

499

510

492

4,545

Total long-term liabilities

31,73336,487

282,825

Total liabilities

217,643

223,390

1,939,777

Other

Net assets (Notes 20 and 21):
Shareholders’ equity:
Capital stock
Common stock

Authorized - 400,000,000 shares
12,00012,000106,952

Capital surplus

14,994

14,994

133,636

Retained earnings

69,83846,501

622,442

(303)

(56)

(2,700)96,52973,439860,330
34,332

Issued – 185,209,189 shares

Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:

3,852

3,750

Deferred gains or losses on hedges

(11)

(18)

(98)

Foreign currency translation adjustment

145

170

1,292

Accumulated remeasurements of defined benefit plans(609)(1,187)(5,428)

Total accumulated other comprehensive income

3,377

2,715

30,09810

1089Valuation difference on available-for-sale securities

Share subscription rights

828

814

7,380

Total net assets

100,744

76,978897,897

Total liabilities and net assets¥318,387¥300,368$2,837,674

Non-controlling interests

13Consolidated Statements of Income
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2017 and 2016

Thousands of
U.S. dollars(Note 1)
2017

Millions of yen
2017

2016

¥378,983¥360,869

29,011

18,389258,565

407,994379,258

3,636,310

Construction contracts

322,618

318,368

2,875,383

Other activities

26,21816,156

233,672

348,836

334,524

3,109,055

59,15844,734527,255

22,14019,277

197,326

37,01825,457

329,929

Interest and dividends income

444

348

3,957

Reversal of allowance for doubtful accounts

208

－

1,854

Interest expense

(344)

(755)

(3,066)

Revenues (Notes 10 and 22):
Construction contracts
Other activities$3,377,745

Cost of sales (Notes 11 and 22):

Gross profit
Selling, general and administrative expenses (Notes 12 and 22):
Operating income
Other income (expenses):

Provision of allowance for doubtful accounts

－

(279)

－

Foreign exchange loss

(796)

(1,241)(7,094)Gain on sales of noncurrent assets (Note 14)

144

287

1,283

Gain on sales of investment securities

81

117

722

(1,098)(431)(9,786)

Impairment loss (Note 13)
Loss on liquidation of overseas subsidiaries (Note 15)

－

(226)

－

(404)

(639)

(3,601)(1,765)(2,819)(15,731)

35,253

22,638314,198

Current

10,916

8,214

97,290

Deferred(1,974)(569)(17,593)

Other, net
Income before income taxes
Income taxes (Note 18):

Profit

8,942

7,645

79,69726,311

14,993

234,501

34

9

303

¥26,277¥14,984$234,198

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

U.S. dollars

Yen
2017

(Note 1)
2016

2017

Per share amounts (Note 23):
Profit attributable to owners of parent
Basic¥142.30¥81.03$1.27

Diluted131.60

80.96

1.17

20.00

12.00

0.18

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, 2017 and 2016

Thousands of
U.S. dollars(Note 1)
2017

Millions of yen
2017Profit2016¥26,311¥14,993$234,501

103

(266)

918

6

(11)

53

Foreign currency translation adjustment

(45)

(161)

(401)

Remeasurements of defined benefit plans
Total other comprehensive income (Note 19)

579

(496)

5,160

643

(934)

5,730

26,954

14,059240,231

26,940

14,110240,107

14

(51)

124

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Comprehensive income
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, 2017 and 2016

Millions of yen
Shareholders’ equity

Balance at April 1, 2015

Capital stock

CapitalsurplusRetainedearnings¥12,000¥15,001¥33,366

Treasury
Stock
¥(68)

(1,849)Cash dividends paid
Profit attributable to14,984owners of parent(7)

Disposal of treasury stock

15(3)

Acquisition of treasury stock
Net changes in items otherthan shareholders’ equity
Balance at April 1, 2016

¥12,000¥14,994¥46,501¥(56)(2,959)Cash dividends paid
Profit attributable to26,277owners of parent(0)

Disposal of treasury stock

2
(249)

Acquisition of treasury stock
Change of scope of

19

consolidation
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2017¥12,000¥14,994¥69,838¥(303)

Millions of yen
Accumulated other comprehensive income
Valuation
Foreign
Accumulated
Deferred gains
difference on
currency
remeasurements ofor losses onavailable-for-saletranslation
defined benefit
hedgessecurities
adjustment
plans
Balance at April 1, 2015

¥4,016¥(7)¥270¥(691)

Share
subscription
rights

Noncontrollinginterests

¥15

¥719

¥64,621(1,849)Cash dividends paid
Profit attributable to14,984owners of parent
Disposal of treasury stock8

Acquisition of treasury stock(3)

Net changes in items otherthan shareholders’ equity
Balance at April 1, 2016

(266)

(11)

(100)

(496)

(5)

95

(783)

¥3,750

¥(18)

¥170

¥(1,187)

¥10

¥814

¥76,978(2,959)Cash dividends paid
Profit attributable to26,277owners of parent
Disposal of treasury stock2

Acquisition of treasury stock(249)

Change of scope of

19

consolidation
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2017

16

Total

102

7

(25)

578

(0)

14

676

¥3,852

¥(11)

¥145

¥(609)¥10¥828¥100,744

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

Balance at April 1, 2016

Capital stock

CapitalsurplusRetainedearnings$106,952$133,636$414,447

Treasurystock$(499)(26,373)

Cash dividends paid
Profit attributable to234,198

owners of parent(0)

Disposal of treasury stock18(2,219)Acquisition of treasury stock
Change of scope of

170

consolidation
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2017

$106,952$133,636$622,442$(2,700)

Thousands of U.S. dollars (Note 1)
Accumulated other comprehensive income
Valuation
Foreign
Accumulated
Deferred gains
difference on
currency
remeasurements
or losses onavailable-for-saletranslationof defined
hedgessecurities
adjustment
benefit plans
Balance at April 1, 2016

$33,423$(160)$1,515$(10,579)

Share
subscription
rights

Noncontrollinginterests$89$7,255

Total$686,079(26,373)

Cash dividends paid
Profit attributable to234,198

owners of parent
Disposal of treasury stock

18

Acquisition of treasury stock(2,219)Change of scope of

170

consolidation
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2017

909

62

(223)

5,151

(0)

125

6,024

$34,332$(98)$1,292$(5,428)$89$7,380$897,897

See accompanying notes.

17

Consolidated Statements of Cash Flows
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2017 and 2016

Thousands of
U.S. dollars(Note 1)
2017

Millions of yen
2017

2016

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
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in net benefit defined liability
Interest and dividends income
Interest expense
Foreign exchange loss (gain)
Loss (gain) on valuation of investment securities
Loss (gain) on sale 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
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
Payments of loans receivableCollection of loans receivable
Proceeds from withdrawal of investments in silent partnership
Other, net
Net cash provided by (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
Proceeds from issuance of convertible bond-type bonds with subscription
rights to shares
Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year (Note 4)
See accompanying notes.

18¥35,253¥22,638$314,198

1,199
1,098
(2,220)(3,016)
(178)
(444)
344
354
1
(127)

1,073
431
235
(786)
236
(348)
755
1,149
335
(268)

10,686
9,786(19,786)(26,881)(1,586)(3,957)
3,066
3,155
9
(1,132)(20,186)
1,480
168(2,892)
1,753(6,406)808(1,417)
2,815
8,387
412
(797)
(9,804)(1,802)

6,335
248(1,175)(2,216)
4,076
(313)
1,249
1,234
6,267
41,155329(671)(6,091)
34,722(179,911)
13,191
1,497(25,775)
15,624(57,095)
7,201(12,629)
25,08974,750
3,672(7,103)(87,380)(16,061)

(982)
9,681
(5,142)(9,681)102(1,296)(8,752)86,283(45,829)

5,560

195

49,554(2,392)
816
(2)
59
－
(1,281)
6,317(1,965)
1,139
(7)
87
125
(715)
(12,016)(21,319)
7,273
(18)
526
－
(11,417)56,3014,996
1,001(5,670)
－
(451)

(976)
6,191
(7,676)500(401)

44,528
8,922(50,535)－(4,020)－10,050－(2,959)(293)(3,376)(456)
683
106,936
49¥107,668(1,849)102
5,941(1,269)27,37879,558－(26,373)(2,611)(30,089)(4,064)
6,087
953,084437$959,608¥106,936

Notes to Consolidated Financial Statements
HAZAMA ANDO CORPORATION- and Consolidated Subsidiaries
For the years ended March 31, 2017 and 2016

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 inJapan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements of International
Financial Reporting Standards.
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 notrequired 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, 2017, which was ¥112.20 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 inconsolidation.
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, andincome from these 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 withcash 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 fairmarket 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 arecomputed using moving-average cost. Available-for-sale securities without readily determinable fair market values are stated atmoving-average 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 thehedged 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 translatedusing the contracted forward rate and that translated using the spot rate at the inception date of the contract) is recognized over
the term of 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) andfacilities attached to buildings and structures, which were acquired since April 1, 2016 is mainly recorded on the straight-line
method, and depreciation of other property, plant and equipment is recorded on the declining-balance method over estimateduseful lives, except that 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 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.
(12) 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.

20

(13) Retirement and severance benefits
The retirement benefit obligation is calculated by allocating the estimated retirement benefit amount to periods until the end of
the current fiscal year on a benefit formula basis. Actuarial differences are recognized in expenses using the straight-line method
over period 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 estimatedremaining 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.
(14) 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.
(15) 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.
(16) 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.
(17) 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 ¥541.43 (US$4.83) and ¥411.76 at March 31, 2017 and 2016, respectively.
(18) Change in accounting policies with amendment of respective law or regulation that are not distinguishable from change inaccounting estimates(a) Due to amendments to the Japanese Corporation Tax Act, the Company and its domestic subsidiaries adopted “Practical
Solution on a change in depreciation method due to Tax Reform 2016” (ASBJ Practice Issue Task Force No.32, June 17, 2016)
from the current fiscal year and changed the depreciation method for facilities attached to buildings and structures, which wereacquired since April 1, 2016, from the declining-balance method to the straight-line method.
As a result, operating income and income before income taxes for the current fiscal year increased by ¥20 million(US$178
thousand), respectively.
(b) The Company and its domestic subsidiaries adopted “Revised Accounting Standard for Business Combinations” (ASBJ
Statement No.21, September 13, 2013 (hereinafter, “Statement No.21”)), “Revised Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No.22, September 13, 2013 (hereinafter, “Statement No.22”)) and “Revised AccountingStandard for Business Divestitures” (ASBJ Statement No.7, September 13, 2013 (hereinafter, “Statement No.7”)) (together, the“Business Combination Accounting Standards”), from the prior fiscal year. As a result, the Company changed its accounting
policies to recognize in capital surplus the differences arising from the changes in the Company’s ownership interest of
subsidiaries over which the Company continues to maintain control and to record acquisition related costs as expenses in theprior fiscal year in which the costs are incurred. In addition, the Company changed its accounting policy for the reallocation of
acquisition costs due to the completion following provisional accounting to reflect such reallocation in the consolidated financial
statements for the prior fiscal year in which the business combination took place. The Company also changed the presentation of
profit and the term “non-controlling interests” is used instead of “minority interests”. Certain amounts in the prior fiscal year
comparative information were reclassified to conform to such changes in the prior fiscal year presentation.
With regard to the application of the Business Combination Accounting Standards, the Company followed the provisional
treatments in article 58-2 (4) of Statement No.21, article 44-5 (4) of Statement No.22 and article 57-4 (4) of Statement No.7 withapplication from the beginning of the prior fiscal year prospectively.
21

In the consolidated statements of cash flows, cash flows from acquisition or disposal of shares of subsidiaries with nochanges in the scope of consolidation are included in “Cash flows from financing activities” and cash flows from acquisition
related costs for shares of subsidiaries with changes in the scope of consolidation or costs related to acquisition or disposal ofshares of subsidiaries with no changes in the scope of consolidation are included in “Cash flows from operating activities”.
There is no effect on the consolidated financial statements of the prior fiscal year.
(19) Additional information(a) “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016)
The Company adopted “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance
No. 26, March 28, 2016) from the current fiscal year.
(b) Performance-linked stock compensation plan for directors and executive officers(i) Transaction summary
At the ordinary general shareholders’ meeting held on June 29, 2016, 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 in accordance with performance targets achieved.
(ii) Accounting treatment
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 to provision for management board incentive plan trust. And
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 ¥247 million (US$2,201 thousand) and 432,600 shares, respectively.

22

3. Securities(1) No held-to-maturity debt securities recognized for the year ended March 31, 2017.
The following tables summarize book values and fair values of held-to-maturity debt securities at March 31, 2016:
Millions of yen
MBook values

2016
Fair values

Difference

Government bonds

¥385

¥454

¥69

Sub total

385

454

69

Corporate bonds¥1,000¥1,000¥ －Sub total

1,000

1,000

－

Total

¥1,385¥1,454¥69

Type
Securities with fair values exceeding book values

Securities with fair values not exceeding book values(2) The following tables summarize book values and acquisition costs of available-for-sale securities at March 31, 2017 and2016:
Millions of yen
Book values

Type
Securities with book values exceeding acquisition costs

2017
Acquisition
costs

DifferenceBook values

2016
Acquisition
costs

Difference

Equity securities¥14,198¥8,365¥5,833¥12,816¥7,184¥5,632Sub total

14,198

8,365

5,833

12,816

7,184

5,632

¥2,967¥3,340¥(373)¥4,108¥4,458¥(350)

－

－

－

6

15

(9)

2,000

2,000

－

－

－

－

16,00016,000－15,00015,000－

Securities with book values not exceeding acquisition costs
Equity securities
Bonds
Corporate bonds
Negotiable certificatesof deposit
Other

2,000

2,000

－

－

－

－

Sub total

22,967

23,340(373)

19,114

19,473

(359)

Total

¥37,165¥31,705¥5,460¥31,930¥26,657¥5,273Thousands of U.S. dollars
Book values
Type
Securities with book values exceeding acquisition costs

2017
Acquisition
costs

Difference

Equity securities$126,541$74,554$51,987

Sub total

126,541

74,554

51,987$26,444$29,768$(3,324)－－－

17,825

17,825－

142,603

142,603－

17,825

17,825－

Securities with book values not exceeding acquisition costs
Equity securities
Bonds
Corporate bonds
Negotiable certificatesof deposit
Other
Sub total

204,697

208,021(3,324)

Total$331,238$282,575$48,66323

(3) Total sales, related gains and losses of held-to-maturity debt securities for the year ended March 31, 2017 is as follows:
Thousands of
U.S. dollars
2017

Millions of yen
Type

2017

2016

Government bonds
Cost of sales

¥386

¥ －

$3,440

Sales

441

－

3,930

Related gains

55

－

490

The reason for sale
In order to effectively utilize assets, we sold the government bonds for held-to-maturity debt securities in the current fiscal year.
(4) Total sales, related gains and losses of available-for-sale securities are as follows:
Thousands of
U.S. dollars

Millions of yen
Type

2017

2017

2016

Equity securities
¥117

¥195

$1,043

Related gains

26

117

232

Related losses

－

0

－

Sales

(5) Impairment losses on securities recognized for the years ended March 31, 2017 and 2016 are as follows:
Thousands of
U.S. dollars
2017

Millions of yen
Type

2017

2016

Available-for-sale securities

¥1

¥335

$9

Total

¥1

¥335

$9

4. Cash and Cash Equivalents(1) Cash and cash equivalents reported in the consolidated statements of cash flows at March 31, 2017 and 2016 were reconciledwith cash and time deposits reported in the consolidated balance sheets as follows:
Thousands of
U.S. dollars

Millions of yen
2017
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

2016

2017

¥88,700¥100,618$790,553(1,032)(9,682)(9,198)20,00016,000178,253¥107,668¥106,936$959,608

5. Inventories
Inventories at March 31, 2017 and 2016 consisted of the following:
Millions of yen
2017

24

2016

Thousands of
U.S. dollars
2017

Accumulated Costs on uncompleted construction contracts¥4,801¥6,280

Others

5,404

5,565

$42,790
48,164

Total¥10,205¥11,845$90,954

6. 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 1.2% and1.5% at March 31, 2017 and 2016.
Bonds at March 31, 2017 and 2016 are summarized below:
Thousands of
U.S. dollars
2017

Millions of yen
2017

2016

Long-term debt from bonds, insurance companies and others due serially through 2021:
Unsecured 0.4%

¥832

¥1,283$7,415Less current maturities

(391)

(451)

(3,485)Sub total

441

832

3,930

Convertible bond-type bonds with subscription rights to shares¥10,033¥10,050$89,421

Total¥10,474¥10,882$93,351

Long-term loans payable at March 31, 2017 and 2016 are summarized below:
Thousands of
U.S. dollars
2017

Millions of yen
2017

2016

Long-term debt from banks, insurance companies and others due serially through 2023:
Secured 0.9% to 1.6%

¥900

¥985

$8,022

Unsecured 1.0% to 2.8%

12,796

17,380114,046

Less current maturities(5,152)(5,645)(45,918)

Total¥8,544¥12,720$76,150

Millions of yen

Thousands of
U.S. dollars

2018

¥391

$3,4852019

10,286

91,675

2020

138

1,230

2021

50

446

Total

¥10,865$96,836

Millions of yen

Thousands of
U.S. dollars

2018¥5,152$45,918

2019

3,549

31,631

2020

3,521

31,381

2021

807

7,193

2022

159

1,417

2023~

508

4,528

Total

¥13,696$122,068

Repayment schedules for bonds are summarized below:
Years ending March 31,

Repayment schedules for the long-term loans payable are summarized below:
Years ending March 31,

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

7. Pledged Assets
The following assets were pledged to secure short-term bank loans, long-term debt and certain other obligation at March 31, 2017and 2016:
Thousands of
U.S. dollars

Millions of yen
2017

2017

2016

Property, plant and equipment¥1,710¥1,765$15,241

Investment securities

4,886

4,719

43,547

137

144

1,221

¥6,733¥6,628$60,009

Other assets
Total

8. 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
2017

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

2017

2016
¥156

¥1,239$1,3909. Contingent Liabilities
At March 31, 2017 and 2016, the Companies had the following contingent liabilities for loan guaranteed:
Thousands of
U.S. dollars

Millions of yen
2017

2017

2016

Guarantees for loan
Loans of employees

¥2

¥2

$18

Total

¥2

¥2

$18

10. 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 31,2017 and 2016 were ¥354,901 million (US$3,163,111 thousand) and ¥342,624 million, respectively.
11. 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, 2017 and 2016 were ¥590 million (US$5,258 thousand) and ¥115 million, respectively.
12. Research and Development Expenses
Research and development expenses included in manufacturing costs, and selling, general and administrative expenses amounted
to ¥2,733 million (US$24,358 thousand) and ¥2,178 million for the years ended March 31, 2017 and 2016, respectively.

26

13. Impairment Loss
Impairment loss for the year ended March, 31, 2017 is as follows:
Location

Use

Millions of yen

Type of assets

Shiga prefecture

Idle asset

Land, buildings and structures

Kagoshima prefecture

Idle asset

Land and buildings

¥701

Total

Thousands of
U.S. dollars$6,248397

3,538¥1,098$9,786

Impairment loss for the year ended March, 31, 2016 is as follows:
Location

Use

Type of assets

Saitama prefecture

Idle asset

Land

Millions of yen
¥431
¥431

Total

The Companies generally determine grouping of its business assets by location and idle assets by each property unit to measure
impairment loss. As the above assets become idle assets in the current fiscal year, the book value was reduced to recoverable
amount, and such reduction was recorded as an impairment loss. The recoverable amounts of these assets were measured basedon net selling price, and were evaluated based on appraisal for assets of significant book value, and based on market standard forother assets.
14. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets for the year ended March 31, 2017 and 2016 are as follows:
Thousands of
U.S. dollars

Millions of yen
Type of assets

2017

2017

2016
¥137

¥259

Other

7

28

62

Total

¥144

¥287

$1,283

Land and Buildings$1,221

15. Loss on Liquidation of Overseas Subsidiaries
No loss on liquidation of overseas subsidiaries is recognized for the year ended March 31, 2017.
Loss on liquidation of overseas subsidiaries is recorded for the amount of estimated losses related to HAZAMA ANDOSINGAPORE PTE. LTD., HAZAMA ANDO MALAYSIA SDN. BHD. and ANDO (MALAYSIA) SDN. BHD. of liquidation,
the consolidated subsidiaries for the year ended March 31, 2016.
16. 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17. 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
2017

Millions of yen
2017

2016

(1) Movement in retirement benefit obligations¥29,851¥30,312$266,052

Service cost

1,329

1,335

11,845Interest cost

299

303

2,665

Actuarial loss (gain)

645

176

5,748

Balance at April 1, 2016 and 2015

Benefits paid

(1,490)(2,275)(13,280)

Balance at March 31, 2017 and 2016

¥30,634¥29,851$273,030$170,196(2) Movement in plan assets¥19,096¥19,783

Expected return on plan assets

215

220

1,916

Actuarial loss (gain)

729

(680)

6,497
10,802

Balance at April 1, 2016 and 2015

Contributions paid by the employer

1,212

1,244

Benefits paid

(996)

(1,471)(8,877)¥20.256¥19,096$180,534$12,709

Balance at March 31, 2017 and 2016(3) Movement in simplified method¥1,426¥1,421Retirement benefit costs

288

294

2,567

Benefits paid

(168)

(272)

(1,497)

Balance at April 1, 2016 and 2015

Other
Balance at March 31, 2017 and 2016

(6)

(17)

(54)

¥1,540¥1,426$13,725(4) Reconciliation from retirement benefit obligations and plan assets to liability (asset) for retirement benefits
Funded retirement benefit obligation¥30,634¥29,851$273,030

Plan assets(20,256)(19,096)(180,535)

10,37810,75592,495

Unfunded retirement benefit obligation

1,540

1,426

13,726

Total net liability (asset) for retirement benefits at March 31, 2017 and 2016

11,91812,181

106,221

Net defined benefit liability

11,91812,181

106,221

Total net liability (asset) for retirement benefits at March 31, 2017 and 2016

¥11,918¥12,181$106,221(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

Thousands of
U.S. dollars
2017

Millions of yen
2017

2016

(5) Retirement benefit costs
Service cost

¥1,329¥1,335Interest cost

298

303

$11,8452,656

Expected return on plan assets

(215)

(220)

(1,916)
5,989

Net actuarial loss amortization

672

568

Past service costs amortization

78

(402)

695

Retirement benefit expenses by simplified method

289

294

2,576

¥2,451¥1,878$21,845

Total retirement benefit costs for the fiscal year ended March 31, 2017 and 2016
(6) Remeasurements of defined benefit plans
Past service costs¥78¥(402)$695

Net actuarial loss

756

(288)

6,738

Total adjustments for retirement benefit¥834¥(690)$7,433(7) Accumulated remeasurements of defined benefit plans
Past service costs that are yet to be recognized

¥ －

¥78

$ －

Actuarial gains and losses that are yet to be recognized

878

1,634

7,825

Total accumulated adjustments for retirement benefit¥878¥1,712$7,825(8) Plan assets
1. Plan assets comprise:
2017

2016

Bonds

41%

41%

Equity securities

22

22
16

General account assets

16

Cash and deposits

3

2

Other

18

19

Total

100%

100%

(Note) The retirement benefit trust that has been established for the corporate pension plan accounts for 14% and 13% of the total plan assets forthe year ended March 31, 2017 and 2016.
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, 2017 and 2016 (expressed as weighted averages) follow:
2017

2016

Discount rate

1.0%

1.0%

Long-term expected rate of return

1.1%

1.1%

29

18. Income Taxes
The Companies were subject to a number of taxes based on income, which, in the aggregate, indicate statutory rate in Japan ofapproximately 30.9% and 33.1% for the years ended March 31, 2017 and 2016.
The following table summarizes the significant differences between the statutory tax rate and the effective tax rate forfinancial statement purposes for the year ended March 31, 2017 and 2016.

Statutory tax rate

2017

2016

30.9%

33.1%

Permanent non-deductible expenses

0.4

0.7

Permanent non-taxable income

(0.4)

(0.6)

Per capita inhabitant taxes

0.5

0.7

Change in valuation allowance

(3.9)

0.8

Decrease in deferred tax assets due to tax rate changes－

1.6

Others

(2.1)

(2.5)

Effective tax rate

25.4%

33.8%

Significant components of deferred tax assets and liabilities at March 31, 2017 and 2016 are as follows:
Millions of yen
2017

2016

Thousands of
U.S. dollars
2017

Deferred tax assets:
Net defined benefit liability¥5,008¥4,853

Others

7,254

7,344

$44,635
64,652Gross deferred tax assets

12,262

12,197109,287

Less: Valuation allowance(3,067)(4,469)(27,335)

Total deferred tax assets

9,195

7,728

81,952

Valuation difference on available-for-sale securities

1,603

1,527

14,287

Others

1,861

2,111

16,587

Total deferred tax liabilities

3,464

3,638

30,874

Net deferred tax assets¥5,731¥4,090$51,078

Deferred tax liabilities:30

19. Comprehensive Income
Amounts reclassified to profit for the fiscal year ended March 31, 2017 and 2016 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
2017

Millions of yen
2017

2016

Valuation difference on available-for-sale securities:
Increase (decrease) during the year

¥205¥(817)

Reclassification adjustment

(26)

329

$1,827(232)

Sub-total, before tax

179

(488)

1,595

Tax (expense) or benefit

(76)

222

(677)

Sub-total, net of tax

103

(266)

918

Increase (decrease) during the year

¥2

¥(21)

$18

Reclassification adjustment

7

7

62

Sub-total, before tax

9

(14)

80

Tax (expense) or benefit

(3)

3

(27)

Sub-total, net of tax

6

(11)

53
$(410)

Deferred gains or losses on hedges:

Foreign currency translation adjustment:¥(46)¥(139)

Reclassification adjustment

－

－

－

Sub-total, before tax

(46)

(139)

(410)

Increase (decrease) during the year

1

(22)

9

(45)

(161)

$(401)

Increase (decrease) during the year

¥84¥(856)$749

Reclassification adjustment

750

166

6,684

Sub-total, before tax

834

(690)

7,433

Tax (expense) or benefit

(255)

194

(2,273)Sub-total, net of tax

579

(496)

5,160

Total other comprehensive income¥643¥(934)$5,730Tax (expense) or benefit
Sub-total, net of tax
Remeasurements of defined benefit plans

20. 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 notexceeding one-half of the price of the new shares as additional paid-in capital, which is included in capital surplus in theaccompanying consolidated balance sheets.
Under the Law, in cases where dividend distribution of surplus is made, the smaller of an amount equal to 10% of thedividend or 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 inretained 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
are potentially 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.

31

21. Consolidated Statements of Changes in Net Assets(1) Common stock issued

Number ofsharesCommonstock

Balance at April 1, 2015

185,209,189

Increase during the year

0

Decrease during the year

0

Balance at April 1, 2016

185,209,189

Increase during the year

0

Decrease during the year
Balance at March 31, 2017

(2) Treasury stock outstanding

Balance at April 1, 2015

0
185,209,189

Number ofsharesCommonstock
325,676

Increase during the year

4,363

Decrease during the year

69,239Balance at April 1, 2016

260,800

Increase during the year

435,869

Decrease during the year

9,914

Balance at March 31, 2017

686,755(Note) Stock owned by BIP Trust is included in Treasury stock at March 31, 2017 (Included amount: 432,600 shares).
22. 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 threereportable segments 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, 2017 is as follows:
Millions of yen
Civilengineering

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Year ended March 31, 2017:
Revenues:¥134,038¥238,922¥25,595¥398,555¥9,439¥407,994

¥ －

－

2

35,90835,91015

35,925(35,925)－

Total

134,038

238,924

61,503434,4659,454

443,919(35,925)

407,994

Segment profit

26,97913,083

1,635

41,697731

42,428(5,410)37,018Assets

Note 4Note 4

36,632

199,019

10,208209,227

109,160

318,387

230

410

247

887

91

978

210

1,188

Note 4Note 4

217

2,706

44

2,750

417

3,167

Outside customers
Intersegment

Other material items:
Depreciation
and amortization
Capital expenditures¥407,994

Thousands of U.S. dollars
Civil
engineeringYear ended March 31, 2017:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:$1,194,635$2,129,429$228,120$3,552,184$84,126$3,636,310

$ －

－

18

320,035

320,053

134

320,187(320,187)－

1,194,635

2,129,447

548,155

3,872,237

84,2603,956,497(320,187)

3,636,310

Segment profit

240,455

116,604

14,572

371,631

6,515

378,146(48,217)

329,929

Assets

Note 4Note 4326,488

1,773,788

90,9801,864,768

972,906

2,837,674

Other material items:
Depreciation
and amortization
Capital expenditures

2,050

3,654

2,201

7,905

811

8,716

1,872

10,588Note 4Note 4

1,934

24,118392

24,5103,716

28,226

Outside customers
Intersegment
Total$3,636,310

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 ¥(5,410) million (US$(48,217) thousand), which included ¥(22) million (US$(196)thousand) of intersegment eliminations and others, and ¥(5,388) million (US$(48,021) 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 ¥109,160 million (US$972,906 thousand), which included ¥(22,560) million(US$(201,069) thousand) of intersegment eliminations and others, and ¥131,720 million (US$1,173,975 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 22. (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 ¥162,387 million (US$1,447,300 thousand), and capital
expenditures of these segments are amounted to ¥2,489 million (US$22,184 thousand).

33

(b) Segment information as of and for the fiscal year ended March 31, 2016 is as follows:
Millions of yen
Civilengineering

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Year ended March 31, 2016:
Revenues:
Outside customers¥122,502¥233,462¥18,758¥374,722¥4,536¥379,258

¥ －

－

0

42,461

42,461

18

42,479(42,479)－

Total

122,502

233,462

61,219417,1834,554

421,737(42,479)

379,258

Segment profit

15,097

12,6191,637

29,353313

29,666(4,209)25,457

Assets

Note 4Note 4

31,372

168,382

10,558

178,940

121,428

300,368

199

379

216

794

102

896

153

1,049

Note 4Note 4

524

1,786

96

1,882

819

2,701

Intersegment

Other material items:
Depreciation
and amortization
Capital expenditures¥379,258

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 ¥(4,209) million, which included ¥6 million of intersegment eliminations and others,and ¥(4,215) 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 ¥121,428 million, which included ¥(18,148) million of intersegment eliminations andothers, and ¥139,576 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 22. (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 ¥137,010 million, and capital expenditures of these segments areamounted to ¥1,262 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 areclassified by their products and services.
(b) Information about geographic areas(Revenues)
Revenues information about geographic areas for the year ended March 31, 2017 and 2016 are as follows:
Thousands of
U.S. dollars

Millions of yen

Geographic Areas
Japan
Other
Total

2017

2016

2017

¥379,403¥341,665$3,381,488

28,59237,593

254,831¥407,995¥379,258$3,636,319(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%.

34

(c) Information about major customers
Disclosure of information about major customers for the year ended March 31, 2017 is as follows:
Sales

Customers
Ministry of the Environment

Segments

Millions of yen

Thousands of
U.S. dollars¥47,898$426,895

Civil engineering

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, 2016.
(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, 2017 and 2016 are as follows:
Millions of yen
2017
Reportable segments
Consolidated
Building
Civil engineering
construction
subsidiaries
Impairment loss

¥ －

¥ －

Other

¥ －

Eliminations
and others¥ －¥1,098

Total¥1,098

Thousands of U.S. dollars
2017

Impairment loss

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

Other

Eliminations
and others$ －$9,786

Total$9,786

Millions of yen
2016

Impairment loss

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

Other

Eliminations
and others

¥ －

Total

¥431

¥431

23. 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 31,2017 is as follows:
Profitattributable toowners of parent
Year ended March 31, 2017:

Millions of yen

Weightedaverage
sharesThousands ofsharesProfit attributable to owners of parent¥26,277

Basic EPS-Profit available to common shareholders¥26,277

184,666(11)

14,920¥26,266

199,586

EPS
Yen

U.S. dollars¥142.30$1.27¥131.60$1.17

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation(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, 2017 were 542
thousand including 288 thousand of shares in BIP Trust at the year ended March 31, 2017.

35

Basis of calculation of basic and diluted profit attributable to owners of parent per share (the “EPS”) for the year ended March 31,
2016 is as follows:
Profitattributable toowners of parent
Year ended March 31, 2016:

Millions of yen

Profit attributable to owners of parent¥14,984

Basic EPS-Profit available to common shareholders¥14,984

Weightedaverage
sharesThousands ofshares184,911EPS
Yen¥81.03

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation－¥14,984155
185,066¥80.96

24. 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, thederivative contract amounts described in Note 25 “Derivative Financial Instruments” are not indicative of actual market risk
involved in derivative transactions.
(e) Concentration of credit risk
The trade receivables for specific and large-scale customers accounted for 23.1% 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, 2017:
Millions of yen
TypeThousands of U.S. dollars

Book values

Fair values

DifferenceBook values

Fair values

Difference¥88,700¥88,700¥ －$790,553$790,553

$ －

2,630

2,630

－

23,44023,440－120,303120,296(7)

1,072,219

1,072,157(62)

Assets(a) Cash and time deposits(b) Receivables:
Notes
Accounts(c) Marketable securities andInvestment securities:
37,16537,165－331,239331,239－¥248,798¥248,791¥(7)$2,217,451$2,217,389

$(62)

Notes

¥48,883¥48,883¥ －$435,677$435,677$ －Accounts

53,621

53,621－

477,906

477,906－

16,674

16,674－

148,610

148,610

－

5,152

5,152

－

45,91845,918

－

391

391

－

3,485

3,485

－

440

442

2

3,921

3,939

18

8,544

8,613

69

76,15076,765615¥133,705¥133,776¥71$1,191,667$1,192,300

$633

¥(17)

¥(17)

¥ －

$(152)$(152)$ －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, 2016:
Millions of yen
Book values

Fair values

Difference¥100,618¥100,618

¥ －

Notes

10,105

10,105－

Accounts

92,58892,575

(13)

69

Type
Assets(a) Cash and time deposits(b) Receivables:(c) Marketable securities andInvestment securities:
Held-to-maturity debt securities

1,385

1,454

Available-for-sale securities

31,93031,930－¥236,626¥236,682

¥56

Notes

¥31,147¥31,147¥ －Accounts

71,387

71,387－

11,678

11,678

－

5,645

5,645

－

451

451

－

832

838

6

12,72012,81999¥133,860¥133,965

¥105

¥(27)

¥(27)

¥ －

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

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 are 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
the remaining 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
the same kinds of borrowings are made.
(Derivative transactions)
See Note 25 “Derivative Financial Instruments”.
2. Financial instruments which are difficult to estimate the fair value
Non-marketable securities (book values of ¥3,373 million (US$30,062 thousand) and ¥3,419 million at March 31, 2017 and 2016,
respectively) are not included in the above “Assets (c) Marketable securities and investment securities”; since it is difficult to estimate the fairvalues thereof because neither market quoted value is available nor future cash flows can be estimated.
The fair value of Convertible bond-type bonds with subscription rights to shares (book value of ¥10,033 million (US$89,421 thousand)and ¥10,050 million at March 31, 2017 and 2016) is not disclosed, 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, 2017 and 2016 are as
follows:
Millions of yen
2017
Within1 yearCash and time deposits¥88,700Over
1 yearless than
5 years
¥ －

2016
Over
5 yearsless than
10 years¥ －Over
10 yearsWithin1 year¥ －¥100,618Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 years¥ －Receivables:
2,630

－

－

－

10,105－－

114,759

5,544

－

－

83,077

9,510

－

－

－

－

－

－

1,000

76

64

246

Corporate bonds

2,000

－

－

－

－

－

－

－

Negotiable certificates of deposit

16,000－－－15,000

－

－

－

Other

2,000

－

－

－

－

－

－

－

Total

¥226,089¥5,544¥ －¥ －¥209,800¥9,586

¥64

¥246

Notes
Accounts
Held-to-maturity debt securities

38－

Thousands of U.S. dollars
2017
Within1 year$790,553

Cash and time depositsOver
1 yearless than
5 years$ －Over
5 yearsless than
10 years$ －Over
10 years$ －Receivables:
23,440－－－1,022,807

49,412

－

－

－

－

－

－

Corporate bonds

17,825－－－

Negotiable certificates of deposit

142,603

－

－

－

Notes
Accounts
Held-to-maturity debt securities

Other

17,825

－

－

－

Total

$2,015,053$49,412$ －$ －25. Derivative Financial Instruments
Derivative transactions accounted for by the hedge accounting at March 31, 2017 and 2016 are as follows:(Currency-related transactions)
Millions of yen
2017Type ofderivative transactions

Main items
hedgedForeign exchange
forward contract (Sell US$)deposits

Translated at the contracted
rate:

Cash and time

2016

Contract amount
Settled overTotal
1 year

Fair
value

¥ －

－

¥ －

Contract amount
Settled overTotal
1 year¥9,580

¥ －

Fair
value

Note 1Thousands of U.S. dollars
2017Type ofderivative transactions

Main items
hedgedForeign exchange
forward contract (Sell US$)deposits

Translated at the contracted
rate:

Cash and time

Contract amount
Settled overTotal
1 year

$ －

$ －

Fair
value

－

Note:
1. The fair values of derivative financial instruments translated at the contracted rate treatment are included in the fair value of cash and time
deposits since such foreign exchange forward contract is treated together with cash and time deposits being hedged.

(Interest-related transactions)
Millions of yen
2017Type ofderivative transactions

Main items
hedged2016

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

¥793

¥720

Note 2¥865¥793

Note 2¥6,015¥4,034Note 2¥8,943¥6,015Note 2

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

Long-termloans payable39

39

Thousands of U.S. dollars
2017Type 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$7,068$6,417Note 2$53,610$35,954

Note 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

26. Stock Option Plans(1) No cost for stock options is recognized for the years ended March 31, 2017 and 2016.
(2) The stock options outstanding at March 31, 2017 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
110,400 sharesof common stock
July 15, 2008
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
to July 14, 2009
From July 15, 2009

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

Executive employees: 986,400 sharesof common stock
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.
From July 14, 2009
to July 13, 2010
From July 14, 2010

The person who exercises
stock purchase rights shall bean employee of the Company
who has continued to workat the Company from July
14, 2009 until July 14, 2011.
However, this condition isinvalid in case of death,retirement age or loss of
position due to the Company
circumstances.

to July 13, 2020

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

June 29, 2011

From July 14, 2009
to July 14, 2011
From July 15, 2011
to July 14, 2016

Directors of the Company: 9
Executive officers: 13

90,000 sharesof common stock
July 16, 2010

85,800 sharesof common stock
July 15, 2011

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.
From July 16, 2010
to July 15, 2011
From July 16, 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 15, 2011
to July 14, 2012
From July 15, 2012

to July 15, 2021

June 26, 2009

115,000 sharesof common stock
July 14, 2009

to July 14, 2019

Directors of the Company: 8
Executive officers: 8

The second seriesof sharesubscription rights (B)to July 14, 2022

41

(b) Number and price

The first
series of sharesubscription
rights (A)The second
series of sharesubscription
rights (A)The second
series of sharesubscription
rights (B)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

－

－

－

－

－
39,600Non-vested shares

Forfeited and expired during theyear

Vested shares
At the beginning of the year

8,800

23,0009,600

36,000

Vested during the year

－

－

－

－

－

Exercised during the year

－

－

9,600

－

－

－

－

－

－

－

8,800

23,000036,00039,600Exercise price

¥1

¥1

¥120

¥1

¥1

Average stock price at exercise

－

－

¥580

－

－

Fair value price at the grant date

¥107

¥101

¥28

¥72

¥111

Forfeited or expired during theyear
Unexercised at the end of the year

(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 rational 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.
27. Subsequent Event
On June 29, 2017, the shareholders of the Company approved the appropriations of retained earnings to pay cash dividends in theamount of ¥2,035 million (US$18,137 thousand) that included dividends for shares in BIP Trust (included amount: ¥5 million(US$44 thousand)).

42

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

Branches

Sapporo, Tohoku, Hokuriku, Metropolitan Area Building,Kanto Civil, 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.
Vietnam
Nepal
Srilanka
MyanmarThailand
Malaysia
Indonesia

OfficesThailand

Laos
Cambodia

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, Vietnam

84-8-38299533

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

Laos

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

856-21-250-872

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

95-1-216002 (Ext.513)

Cambodia

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

855-23-992-914

Srilanka

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

94-11-233-4784

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 Panama

507-830-6671

Honduras

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

504-2271-1283

44

Corporate DataName

(As of March 31, 2017)

Authorized Shares

HAZAMA ANDO CORPORATION

Issued Shares

Common stock
397,250,000
Preferred stock
2,750,000

Established
October 1, 2003

Common stock
185,209,189

Number of Shareholders
33,974
Number of Employees
3,414

Capital¥12,000 million

Directors, Officers
Board Directors
Representative Director andChairman of the Board of
Directors
Toshio Ono
Representative Director andPresident
Toshiaki Nomura
Representative Director andVice President
Haruyuki Kaneko
Board Directors andVice Presidents
Hidekazu Kojima
Masato Fukutomi(As of July 1, 2017)

Board Directors /Managing Executive Officers

Corporate Auditors(External Auditors)

Toru Ikegami
Hideo Hosobuchi

Shigeo Kamimura
Masamitsu Takahara

Board Director / Executive Officer
Shinya Miyamori
Board Directors(External Board Directors)
Yuzuru Fujita
Masami Fujita
Mariko Kitagawa

Auditors

Executive Officers
Vice President
Fumio Sugimoto
Senior Managing Executive
Officers
Toshioki Nishida
Hikari Yamazaki
Managing Executive Officers

Auditors
Yoshihiko Baba
Kimihiro Hirata

Hideo Matsumoto
Yasushi Kikuchi
Toshihiko Kitano
Kazuya Ozawa

Major Subsidiaries and Affiliates
Name
Stated Capital			

Muneo Gomi
Katsuhiko Tabuchi
Hajime Tsukizu
Masanobu Shiga
Executive Officers
Toshimitsu Ueno
Shinkichi Komatsubara
Katsuhiko Kosaka
Tatsumi Asao
Toshiaki Iimura
Masaaki Tomita
Ken Moriyasu
Kazutaka Miyazaki
Hiroshi Ono
Takeshi Komatsu
Fuminori Hirosue
Shin Terauchi
Tomoki Kitagawa(As of April 1, 2017)

Principal Business

Address / Phone

Hazama Ando Kogyo
152.5 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)
16 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
62-21-314-1780

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