2018Year ended March 31, 2018

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 industryleading technological capabilities built on experience with numerous projects, these twocompanies have contributed to Japan’s development and the creation of today’s modern
lifestyle. The firm’s business scope extends beyond Japan to more than 30 countries andterritories around the world.
In the five years since the merger, taking advantage of Japan’s brisk construction
market, HAZAMA ANDO CORPORATION has significantly boosted its profitability throughproductivity improvements and other measures, and expanded its capital base, stabilizing
and strengthening its management and financial foundations.
HAZAMA ANDO CORPORATION aspires to be a company trusted by society into the
future. To achieve this, we will generate innovation throughout the corporate group withreliable technology and passion, new ideas and flexible thinking, as well as bold activity.
Further, we seek to realize a prosperous society in which people can live with peace of mind
and comfort, and to establish a new history and tradition as HAZAMA ANDOCORPORATION.

CONTENTS

Financial Highlights.................................................................................. 1
Message from the President..................................................................... 2
Business Conditions and Outlook............................................................. 3
Topics 2018............................................................................................. 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, 2018, 2017 and 2016

Millions of yen

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

2018¥377,021
35,71523,862
329,781
122,4002017¥407,994
37,01826,277318,387
100,744¥ 128.97
651.77¥ 142.30
541.43Thousands of
U.S. dollars

2016¥379,258
25,457
14,984300,368
76,9782018$3,547,765
336,078
224,541
3,103,237
1,151,785

¥

$

Yen

Basic profit attributable to owners of parent per share
Net assets per share

U.S. dollars

81.03
411.761.21
6.13

Note: U.S. dollar amounts in this annual report are translated from yen at the rate of ¥106.27 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

379,258

377,02140,00037,018400,000
349,192

300,000

30,000300,000

362,21435,71525,457200,000

20,000200,000

100,000

10,000100,000

0

‘16

‘17

‘18

0

‘16

‘17

‘18

0

‘16

‘17

‘18

1

Message from the President

The HAZAMA ANDO CORPORATION Group, with the aimof being a group able to achieve sustainable growth,formulated a medium-term management plan (FY3/16 –FY3/18) with the strategic theme of “Transformation to an
Engaging Corporate Group,” and has made a concerted
effort to implement this plan.
The fiscal year ended March 2018 was the final
year for this management plan. Under the plan, we
continued with measures to secure and develop humanassets, and improve the working environment. We also
took steps for labor-saving measures, including technology
development utilizing ICT and artificial intelligence (AI),and began operations at a precast concrete factory.
In terms of business results, although revenue fell
short of plan, earnings exceeded our target figures,supported by the moderate recovery in the Japanese
economy. As a result, we achieved an equity ratio of
36.9%, and were able to increase dividends for a fourthconsecutive year since the merger. This is the result of theunderstanding and support we have received fromstakeholders, and we would like to express our sincere
appreciation.
At the same time, HAZAMA ANDO CORPORATION
faced a difficult situation in September 2017, when theTokyo District Public Prosecutors Office charged two of
our employees with fraud related to the decontamination
project for Tamura-shi in Fukushima Prefecture, for which
we received a contract in August 2013. In March 2018,
these two individuals received criminal sentences. I would
like to sincerely apologize to our shareholders, business
partners, and everyone involved for the trouble andconcern this has caused. Although the court found that
our company was not involved, we take this incident
seriously, and have made a concerted effort as a corporategroup to prevent a reoccurrence and regain trust as
quickly as possible, including holding explanatory meetings
for all group employees and executives, and revising ourstructures for business execution.
Looking ahead to the fiscal year ending March
2019, we expect further recovery in the economy, withimprovement in corporate earnings, employment, andincome. However, the uncertainties in the world economy
due to foreign political trends could have an impact on
Japan’s domestic industry.
In our main sector of construction, the entire
industry is facing long-term decreases in investment in
new construction from both the public and private
sectors, as well as the need to implement working stylereforms, productivity increases, and human resource
development to counter the continued decline in thenumber of skilled construc tion workers. Fur ther,advancements in information technology are accelerating
2

change in the external business environment more thanever before, with needs from society becoming morediverse and sophisticated.
Under such circumstances, the HAZAMA ANDOCORPORATION Group formulated a new Medium-termManagement Plan (FY3/19 – FY3/21) with a basic policy of“achieving growth through innovation.” We will respondwith innovation to the changes in the business environmentand societal needs, and by strengthening the construction
business and broadening our business domain, achieve
reliable growth that will endure into the future.
Finally, we will adhere to our basic management
policy of “Safe, Reliable, High-Quality Construction” while
making a concerted effort to achieve the Medium-termManagement Plan, with the aim of being a company thatmeets the expectations of all stakeholders, including
society, customers, shareholders, business partners, andemployees, and continues to achieve steady growtogether. We ask for your continued understanding andsupport.

Masato Fukutomi
Representative Director and President

Business Conditions and Outlook

1

Summary of Business Activities

The Japanese economy recovered at a moderate pace during the fiscal year ended March 2018, amid improvement in corporate earnings, an upturn inconsumer spending, and an increase in private-sector capital investment.
Looking ahead, while caution remains warranted due to turbid conditions in overseas markets, we expect further recovery in the economy amid continued
improvement in employment and income, and the positive effects of government policy measures.
In the construction industry, the principal business of the HAZAMA ANDO CORPORATION Group, the business environment continues to be stable as a result offirm construction investment from both the public and private sectors.
Under such conditions, HAZAMA ANDO CORPORATION Group recorded consolidated revenues of ¥377.0 billion (-7.6% year on year) for the fiscal year ended March
2018, with operating income of ¥35.7 billion (-3.5%), ordinary income of ¥34.7 billion (-4.1%), and profit attributable to owners of parent of ¥23.8 billion (-9.2%).
Results by business segment are as follows.
•Civil Engineering
Revenues amounted to ¥127.5 billion (-4.8% year on year), with operating income of ¥22.3 billion (-17.1%).
•Building Construction
Revenues amounted to ¥215.9 billion (-9.6% year on year), with operating income of ¥16.5 billion (+26.6%).
•Group Business
Revenues amounted to ¥27.0 billion (+5.6% year on year), with operating income of ¥1.4 billion (-11.9%).
•OtherRevenues amounted to ¥6.4 billion (-31.6% year on year), with operating income of ¥0.6 billion (-9.7%).

2

Future Outlook

In the construction industry, business conditions are expected to remain steady in the near term on public and private sector construction investment. Over the longer
term, however, the entire construction industry will face shrinking investment in new construction, as well as issues of working style reforms, productivity increases,
and human resource development to address the continued decline in number of skilled construction workers.
The subject fiscal year was the final year for the Medium-term Management Plan (FY3/16 – FY3/18). The HAZAMA ANDO CORPORATION Group steadily
implemented this plan amid a favorable environment for the Japanese construction industry. We were successful with various measures including increased
productivity, achieved a considerable improvement in profitability, and expanded our capital base, stabilizing and strengthening our management and financial
foundations. Over the medium term, however, ongoing issues to address include further productivity gains, implementing working-style reforms to achieve the targetof “eight closures every four weeks,” and strengthening environmental measures.
Under such circumstances, HAZAMA ANDO CORPORATION formulated a new Medium-term Management Plan (FY3/19 – FY3/21) with a basic policy ofachieving growth through innovation. We will respond with innovation to changes in the business environment and societal needs, and by enhancing andstrengthening the construction business, diversifying our earnings base, and bolstering ESG (environment, social, governance) measures, we will achieve reliable
growth into the future.

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

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

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

Topics 2018

Smart Shield® – Advanced Shield Tunneling
Method Utilizing ICT
Smart Shield® is a system to centrally process and visually
represent shield tunneling excavation data and machinery
operating status, as well as information on the tunneling shieldlocation, soil, and nearby structures. This accelerates evaluationof the current status, and reduces the work of project
management. Further, the system allows for use of newtechnologies in large section, long distance shield tunneling,such as semi-simultaneous excavation and assembly, and MSV(multi-service vehicles). It also optimizes the cycle time for shield
excavation and segment assembly, doubling the pace of previous
shield tunneling, and enhancing productivity.

Faster jack speed (60㎜ /min)Semi-simultaneous
excavation andassembly

Jack pressure control

MSV(segment transport)
Segment stock position
PCa invert
Increased cutter torque

Yokohama Circular Northwest Route Shield Tunnel ProjectTransport System Developed to Capably Convey
Large Volumes of Dam Body Materials over Steep
GradesDuring construction of dams, materials need to be transported
over steep grades from the manufacturing facility to theplacement point, and it’s important to ensure these materials are
kept from listing to avoid deterioration. Further, during
construction of trapezoidal CSG dams*, because of the rapid
placement speed, transport systems are needed that can convey
large volumes at a high pace.
The “Hakobu-no-saurus” steep slope belt conveyer has
buckets with crosspieces and wavy side rails on the belt that
increase transport capacity, and prevent materials from falling or
losing quality during conveyance. By transporting the boxedmaterials smoothly at a fixed speed, the system is able to movematerials of high liquidity without causing material separation.
Also, because the power is one-directional, the system provides
large transport capacity with energy savings.
*Trapezoid-shaped dams built with cemented sand and gravel(CSG), made by mixing cement and water with gravel or otherrock-based material. The dam surface is then covered withprotective concrete to provide durability.

Transport direction
Assemblybase
Conveyor

Steep slope belt conveyer“Hakobu-no-saurus”
Material input
ion
rt direct

Transpo

Crosspiece

BucketWavy side rails
BucketDevelopment of Radioactivation-resistantMaterials for Leading-edge Medical Facilities
The radioactivation of concrete and other materials is a problem
at leading-edge medical facilities that generate neutrons.
“Radioactivation” is a physical phenomenon by which materials
that were not originally radioactive become so after exposure toneutrons. As concrete becomes radioactive, medical workers andpatients are unnecessarily exposed to the gamma rays it emits.
H A Z A M A A N D O C O R P O R AT I O N h a s d e v e l o p e d aradioactivation-resistant epoxy resin board that absorbs neutrons,
helping to lower the amount of radiation in the building
framework. We have acquired a patent for the installation
method using this interior material.

4

Installation of radioactivation-resistantepoxy resin boards at a leading-edge
medical facility

HAZAMA ANDO CORPORATION Technology Fair
2017
The HAZAMA ANDO CORPORATION Technology Fair 2017 washeld in November 2017 at the Technical Research Institute, withthe theme of “Venturing to the Future with People andTechnology.” Around 900 visitors attended the two-day eventthat presented 44 technologies, including cutting-edge
technologies, many with interactive displays, on the three subthemes of “Achieving a society where people can live with peaceof mind,” “Achieving an eco-friendly, affluent society,” and“Creating new value and challenges for the future.” We will
focus on further improving technology in future.
Vibration testing of a buckling-restrained brace

FY3/18 Business Training for Japanese School
Teachers Program
In August 2017, HAZAMA ANDO CORPORATION participated asa host corporation for the Business Training for Japanese School
Teachers program sponsored by the Keizai Koho Center (Japan
Institute for Social and Economic Affairs). We held three-day
training programs for elementary and junior high school teachersat our Technical Research Institute and Chiba Factory. The aim ofthese trainings was to deepen understanding among teachers of
the way corporations think about business activities, theirbusiness content and efforts for human resource development,
as well as how corporations approach social responsibility andenvironmental issues, and to encourage the teachers to utilize
these experiences in educating children. We created training
programs to introduce the various activities of HAZAMA ANDOCORPORATION and convey the role and appeal of theconstruction industry, and provided a forum for fruitful exchangewith the teachers on the program.

Observing the training for new employees (outdoor construction workshop)

Credit Rating Upgrade from R&I
On April 27, 2018, Rating and Investment Information, Inc. (R&I)
upgraded HAZAMA ANDO CORPORATION’s Issuer Rating to Afrom BBB+. The main reason given for the upgrade was a“certain degree of strength in both civil engineering and building
construction,” and that “the company's basic earning capacity
has risen thanks to the continued adherence to a profit-oriented
order acceptance policy.”Previous

Current

Issuer Rating

Issuer Rating

RatingBBB+

A-

Rating Outlook

Positive

StableRating Target

5

Review of Operations

Major Orders Received● Hokkaido Shinkansen, Oshima Tunnel (Kaminoyu section)
Construction Work/Japan Railway Construction, Transport
and Technology Agency (Japan)● CROIX-DES-MISSIONS Bridge and New Road Bridge
Consruction Project/Ministry of Public Works, Transportand Communications, Republic of Haiti (Haiti) ❸● DPL Kunitachi Fuchu Logistics Facility Construction Work/
Kunitachi Fuchu Specific Purpose Company (Japan) ❶● The Program for Rehabilitation and Recovery from Nepal
Ear thquake ( The Subprojec t of Reconstruc tion of
Paropakar Maternit y and Women’s Hospital, andReconstruction of Bir Hospital) /Ministry of Health, Federal
Democratic Republic of Nepal (Nepal) ❹● Kyoto Min-iren Chuo Hospital Construction Work/Public
Interest Incorporated Associations KYOTO HOKENKAI(Japan) ❷❸❶Copyright JICA❹❷
Copyright JICA

Major Projects in Progress● Tokyo Contour Belt Highway Tomei Junction Ramp Shield
Tunnel and Underground Widening (South Bound)
Construction Work/East Nippon Expressway Company
Limited (Japan)● Yokohama Ring Expressway North-West Line Shield Tunnel
Construction Work / Cit y of Yokohama, Kanagawa
Prefecture (Japan)● Vientiane International Airport Terminal Expansion Project/
Ministry of Public Works and Transport, Lao P.D.R.
(Laos) ❺6● Marine Drive Hotel Project/Marine Drive Hotels (Private)
Limited (Sri Lanka) ❻● Bandaranaike International Airport Development Project
Phase II Stage 2 (Package B) /Airport and Aviation Services(Sri Lanka) Limited (Sri Lanka)❺❻

Major Projects Completed● Nagoya Castle Hommaru Palace Restoration Work/City of
Nagoya, Aichi Prefecture (Japan) ❼● N i p p o n s e i n e n k a n & J A PA N S P O R T CO U N C I L
Administrative Building Construction Work / Nippon
seinenkan & JAPAN SPORT COUNCIL (Japan) ❽● Sakuma Road Tunnel No. 2 Construction Work for Year2013 / Chubu Regional Bureau, Minis tr y of L and,Infrastructure and Transport (Japan)● The Project for Improvement Water supply system ofCoronel Oviedo City / Ministry of Public Works andCommunications, Republic of Paraguay (Paraguay) ❾● Yorozu Automotive Alabama New Factory Project/Yorozu
Automotive Alabama,Inc. (U.S.A) ❿● The Project for Improvement of the National Road No.1
and the Project for Improvement of the National Road
No.1 Urban Section / Ministr y of Public Works andTransport, Kingdom of Cambodia (Cambodia)

❾

❼

❿

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 11 members as of June 28, 2018 (including three external directors, two of whom are female), comprising
executive and non-executive directors. External directors, who are non-executive directors, serve in roles based on their experience andinsights, including supervision and providing advice on management. The Board of Directors meets monthly to render decisions onimportant matters 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 28, 2018, totaled 28 (including eight executive officers who concurrently serve as directors).
HAZAMA ANDO CORPORATION has established the seven officer categories of “president,” “vice president,” “chairman,” “vice chairman,”“senior managing executive officer,” “managing executive officer” and “executive officer.” We have clarified the responsibilities for theoperations executive officers manage, and limited the term to one year to enhance the mobility and flexibility of the executive officer
system. In addition, we clarified through a resolution of the Board of Directors the rights and responsibilities regarding operations
managed, and implemented a compensation system that reflects the performance of operations managed.
5. Meeting of Executive Officers
The Meeting of Executive Officers meets monthly in accordance with the executive officer system, to enhance the efficiency of consensual
decision-making and strengthen operational execution, as well as to ensure that management information is conveyed promptly andaccurately along the management line, and to provide for the sharing of information among departments.
6. Board of Auditors System
The Board of Auditors comprised 4 members as of June 28, 2018 (including two full-time company auditors, and two non-regular external
auditors). Auditors (including external auditors), in accordance with auditing standards established by the Board of Auditors, and in linewith 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 and employees regarding the status of the execution of their duties, review important documents
and other papers, and conduct audits at the head office and other major business locations. External auditors conclude contracts with theCompany 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

President

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, 2018, 2017, 2016, 2015 and 2014

Summary
Thousands of
U.S. dollars

Millions of yen
2018

2017

2016

2015

2014

2018

$3,282,949

Operating results:
Revenues¥348,879¥378,983¥360,869¥355,069¥357,474

Other activities

28,14229,011

18,38914,634

13,743

264,816

Total

377,021407,994379,258

369,703371,2173,547,765

319,666

348,836

334,524

333,691

342,810

3,008,055

57,35559,15844,73436,012

28,407539,710

21,64022,14019,277

17,494

16,329203,632

35,71537,01825,457

18,51812,078336,078

23,862

26,277

14,984

7,240

16,414

224,541

Total assets¥329,781¥318,387¥300,368¥269,720¥260,646$3,103,237

Total liabilities

207,381217,643

223,390

205,099

206,265

1,951,454

Total net assets

122,400

100,744

76,97864,621

54,381

1,151,785¥38,127¥(1,802)¥34,722¥15,716¥7,464$358,775(2,261)

6,317(12,016)

(134)

3,593

(21,276)(3,962)(3,376)

5,941(7,490)(54)(37,282)

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
Per share amounts:
Profit attributable toowners of parent
Basic
DilutedU.S. dollars¥128.97¥142.30¥81.03¥39.17¥96.47$1.21

119.41131.60

80.96

39.12

88.59

1.12

Dividends
Common stock
Net assets

25.00

20.00

12.00

8.00

5.00

0.24

651.77541.43411.76345.56290.96

6.13

Note: 1. U.S. dollar amounts in this annual report are translated from yen at the rate of ¥106.27 to US$1.00 for convenience.
2. The dividend per share for 2014 includes a ¥2 commemorative dividend.
3. The dividend per share for 2018 includes a ¥5 special dividend.

9Financial Review
Revenues
Revenues in fiscal 2018 totaled ¥377,021 million (US$3,547,765 thousand), of which ¥348,879 million (US$3,282,949
thousand) came from construction projects and ¥28,142 million (US$264,816 thousand) from other activities. These two businesssegments accounted for 92.5% and 7.5%, respectively, of total revenues.
Costs and Expenses
Cost of sales amounted to ¥319,666 million (US$3,008,055 thousand), which is equivalent to 84.8% of revenues. Selling, generaland administrative expenses amounted to ¥21,640 million (US$203,632 thousand), which is equivalent to 5.7% of revenues.
Operating income reached ¥35,715 million (US$336,078 thousand), and the operating margin was 9.5%. Profit attributable toowners of parent amounted to ¥23,862 million (US$224,541 thousand). Basic profit attributable to owners of parent per sharewas ¥128.97 (US$1.21). We paid dividend of ¥11 (US$0.10) per share for the fiscal year ended March 31, 2017 on June 30, 2017,and paid interim dividend of ¥10 (US$0.09) per share for the fiscal year ended March 31, 2018 on December 6, 2017.
Financial Position and Analysis
Total assets amounted to ¥329,781 million (US$3,103,237 thousand), total liabilities amounted to ¥207,381 million(US$1,951,454 thousand), and total net assets amounted to ¥122,400 million (US$1,151,785 thousand) at the end of fiscal 2018.
Net worth to total assets ratio was 36.9% Net assets per share amounted to ¥651.77 (US$6.13).
Cash Flows
Cash and cash equivalents at the end of the year increased by ¥31,524 million (US$296,641 thousand) to ¥139,190 million(US$1,309,777 thousand).
Net cash provided by operating activities amounted to ¥38,127 million (US$358,775 thousand) mainly as the result of income
before income taxes amounting to ¥34,153 million (US$321,380 thousand), decrease in notes and accounts receivable amounting
to ¥17,498 million (US$164,656 thousand), notes and accounts payable amounting to ¥14,055 million (US$132,257 thousand)and income taxes paid amounting to ¥12,226 million (US$115,047 thousand).
Net cash provided by investing activities amounted to ¥(2,261) million (US$(21,276) thousand) mainly as a result of purchaseof property, plant and equipment amounting to ¥2,137 million (US$20,109 thousand).
Net cash used in financing activities amounted to ¥(3,962) million (US$(37,282) thousand) mainly as a result of repayment oflong-term loans payable amounting to ¥5,655 million (US$53,214 thousand), income cash dividends paid amounting to ¥3,884
million (US$36,548 thousand)and proceeds from long-term loans payable amounting to ¥5,562 million (US$52,338 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

2018

2017

2016

2015

2014

2018

Government sector¥88,070¥99,198¥85,772¥77,095¥80,092$828,738

Private sector

34,072

31,43432,72136,75723,323

320,617

5,331

3,543

4,002

7,721

6,695

50,165

127,473

134,175

122,495

121,573

110,110

1,199,520

Civil engineering
Domestic

Overseas
Subtotal
Building construction
Domestic
Government sector

27,71645,292

29,40425,713

21,590260,808

Private sector

168,806

169,470

171,296

169,524

183,281

1,588,463

19,47324,161

32,76230,74631,149183,241

Subtotal

215,995

238,923

233,462

225,983

236,020

2,032,512

Total construction projects¥343,468¥373,098¥355,957¥347,556¥346,130$3,232,032

Overseas10Revenue from the civil engineering category accounted for ¥127,473 million (US$1,199,520 thousand), or 37.1% of total revenue
from construction projects, with domestic projects contributing ¥122,142 million (US$1,149,355 thousand), or 95.8%.
The government sector contributed ¥88,070 million (US$828,738 thousand), or 72.1%, of total domestic civil engineering
revenue, while private-sector civil engineering revenue amounted to ¥34,072 million (US$320,617 thousand), or 27.9% of total
domestic civil engineering revenue. Overseas civil engineering revenue reached ¥5,331 million (US$50,165 thousand),equivalent to 4.2% of total revenue in the civil engineering category.
Revenue from the building construction category totaled ¥215,995 million (US$2,032,512 thousand), or 62.9% of total
construction revenue. Domestic projects accounted for ¥196,522 million (US$1,849,271 thousand), or 91.0%.
The government sector contributed ¥27,716 million (US$260,808 thousand), or 14.1%, of total domestic building
construction revenue, while private-sector building construction revenue amounted to ¥168,806 million (US$1,588,463 thousand),or 85.9%, of total domestic building construction revenue. Overseas building construction revenue reached ¥19,473 million(US$183,241 thousand), equivalent to 9.0% of total revenue in the building construction category.
Total overseas construction revenue reached ¥24,804 million (US$233,406 thousand) and accounted for 7.2% of total
construction revenue. Civil engineering projects accounted for 21.5% of this total, and building construction for 78.5%.
Thousands of
U.S. dollars

Millions of yen
Orders Received
Civil engineering

2018

2017

2016

2015

2014

2018

¥123,469¥193,008¥123,292¥167,060¥107,666$1,161,842

Building construction

225,723

236,278

238,922232,248

226,094

2,124,052

Total construction projects¥349,192¥429,286¥362,214¥399,308¥333,760$3,285,894

Orders received for construction projects during fiscal 2018 amounted to ¥349,192 million (US$3,285,894 thousand). Overseas
work contributed 5.7% of orders in the construction category. Civil engineering orders amounted to ¥123,469 million(US$1,161,842 thousand), or 35.4% of total construction orders. Building construction orders amounted to ¥225,723 million(US$2,124,052 thousand), which is equivalent to 64.6% of total construction orders.
Thousands of
U.S. dollars

Millions of yen
Year-end Backlog

2018

2017

2016

2015

2014

2018
$2,085,998

Civil engineering¥221,679¥226,120¥167,343¥166,623¥121,099

Building construction

196,300

186,748

189,780

184,297

177,794

1,847,182

Total construction projects¥417,979¥412,868¥357,123¥350,920¥298,893$3,933,180

Order backlog for construction projects at the end of fiscal 2018 amounted to ¥417,979 million (US$3,933,180 thousand), withcivil engineering work accounting for ¥221,679 million (US$2,085,998 thousand), or 53.0%, and building construction for¥196,300 million (US$1,847,182 thousand), or 47.0%.

11

Consolidated Balance Sheets
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
March 31, 2018 and 2017

Thousands of
U.S. dollars(Note 1)
2018

Millions of yen
2018

2017

AssetsCurrent assets:
Cash and time deposits (Notes 4 and 24)¥110,768¥88,700$1,042,326

Marketable securities (Notes 3 and 24)

30,00020,000282,299

Receivables (Note 24):
Notes

7,244

2,630

68,166

Accounts

98,191

120,303

923,977

Inventories (Notes 5 and 8)

9,253

10,20587,071

Deferred tax assets (Note 18)

3,135

3,592

29,500

Other (Note 7)

14,695

17,448138,280

(13)

(13)

(122)

273,273

262,865

2,571,497

Land

15,212

16,309143,145

Buildings and structures

20,424

19,147

192,190

Machinery and equipment

10,227

9,123

96,236

269

1,152

2,531

Less allowance for doubtful accounts
Total current assets

Property, plant and equipment (Notes 7, 13, 14 and 15):

Other
Less accumulated depreciation
Net property, plant and equipment

46,13245,731

434,102(19,512)(19,223)(183,608)

26,62026,508250,494

Investments and other assets:
21,364

20,238201,035

Investments in unconsolidated subsidiaries and affiliates

443

300

4,169

Long-term loans receivable (Note 7)

458

500

4,310

Deferred tax assets (Note 18)

2,096

2,195

19,723

Other (Note 7)

52,207

Investment securities (Notes 3, 7 and 24)

5,548

5,804

Less allowance for doubtful accounts

(21)

(23)

(198)

Total investments and other assets

29,88829,014

281,246¥329,781¥318,387$3,103,237

Total assets
See accompanying notes.

12Thousands of
U.S. dollars(Note 1)
2018

Millions of yen
2018

2017

Liabilities and Net Assets
Current liabilities:¥16,674¥16,674$156,902

5,206

5,152

48,988

362

391

3,406

8,714

－

81,999Notes

36,526

48,883

343,709

Accounts

509,965

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)
Current portion of convertible bond-type bonds with subscription rights toshares (Notes 6 and 24)
Payables (Note 24):

54,19455,404

Income taxes payable

4,716

7,465

44,378Advances received (Note 16)

27,38625,833

257,702

159

20

1,496

Accrued expenses
Provision for losses on construction contracts (Note 8)
Other
Total current liabilities

351

606

3,303

30,25425,482

284,689

184,542

185,910

1,736,537

570

441

5,364

－

10,033－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)

8,397

8,544

79,016

Net defined benefit liability (Note 17)

12,498

11,918

117,606

Provision for environmental spending

153

153

1,440

Provision for management board incentive plan trust

139

78

1,308

Deferred tax liabilities (Note 18)

53

56

499

1,029

510

9,683

Total long-term liabilities

22,83931,733214,916

Total liabilities

207,381217,643

1,951,453

Other

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

Authorized - 400,000,000 shares
12,651

12,000119,046

Capital surplus

15,643

14,994

147,201

Retained earnings

89,82969,838845,290

Issued – 187,160,261 shares

Less treasury stock, at cost
Total shareholders’ equity

(295)

(303)

(2,776)

117,828

96,5291,108,761
43,361

Accumulated other comprehensive income:
4,608

3,852

Deferred gains or losses on hedges

(20)

(11)

(188)

Foreign currency translation adjustment

135

145

1,270

Accumulated remeasurements of defined benefit plans

(996)

(609)

(9,372)

Total accumulated other comprehensive income

35,071

Valuation difference on available-for-sale securities

3,727

3,377

Share subscription rights

9

10

85

Non-controlling interests

836

828

7,867

Total net assets

122,400

100,744

1,151,784

Total liabilities and net assets¥329,781¥318,387$3,103,237

13

Consolidated Statements of Income
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2018 and 2017

Thousands of
U.S. dollars(Note 1)
2018

Millions of yen
2018

2017

¥348,879¥378,983

28,14229,011

264,816

377,021407,994

3,547,765

Construction contracts

294,148

322,618

2,767,931

Other activities

25,51826,218240,124

319,666

348,836

3,008,055

57,35559,158539,710

21,64022,140203,632

35,71537,018336,078

Interest and dividends income

430

444

4,046

Reversal of allowance for doubtful accounts

(3)

208

(28)

(501)

(344)

(4,714)

Revenues (Notes 10 and 22):
Construction contracts
Other activities$3,282,949

Cost of sales (Notes 11 and 22):

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

Interest expense
Foreign exchange loss

(289)

(796)

(2,720)Commission fee(174)(1,637)Compensation for damage

(91)

(142)
－

Gain on sales of noncurrent assets (Note 14)

83

144

781

Gain on sales of investment securities

156

81

1,468

(856)

Loss on sales of noncurrent assets (Note 15)

(47)

(17)

(442)

Impairment loss (Note 13)(752)(1,098)(7,076)

Loss on litigation

(54)

(74)

(508)

Other, net

(320)

(171)

(3,011)(1,562)(1,765)(14,697)

34,15335,253321,381

Current

9,769

10,91691,927

Deferred510(1,974)

4,800

10,2798,942

96,72723,874

26,311

224,654

12

34

113

¥23,862¥26,277$224,541

Income before income taxes
Income taxes (Note 18):

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

U.S. dollars

Yen
2018

(Note 1)
2017

2018

Per share amounts (Note 23):
Profit attributable to owners of parent
Basic¥128.97¥142.30$1.21

Diluted119.41131.60

1.12

25.00

20.00

0.24

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, 2018 and 2017

Thousands of
U.S. dollars(Note 1)
2018

Millions of yen
2018Profit2017¥23,874¥26,311$224,654

Valuation difference on available-for-sale securities

755

103

7,105

Deferred gains or losses on hedges

(9)

6

(85)

Foreign currency translation adjustment

76

(45)

715

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

(387)

579

(3,642)Other comprehensive income

Comprehensive income

435

643

4,093

24,31026,954

228,747

24,261

26,940228,296

49

14

461

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, 2018 and 2017

Millions of yen
Shareholders’ equity

Balance at April 1, 2016

Capital stock

CapitalsurplusRetainedearnings¥12,000¥14,994¥46,501
26,277(0)

Disposal of treasury stock

2
(249)

Acquisition of treasury stock
Change of scope of
consolidation
Net changes in items otherthan shareholders’ equity

19¥12,000¥14,994651

651¥69,838¥(303)(3,884)

Cash dividends paid
Profit attributable toowners of parent

23,862(2)

Disposal of treasury stock

11(3)

Acquisition of treasury stock
Change of scope of
consolidation
Net changes in items otherthan shareholders’ equity
Balance at March 31, 2018¥(56)

(2,959)Cash dividends paid
Profit attributable toowners of parent

Balance at April 1, 2017
Conversion of Convertiblebond-type bonds with
Subscription rights
to shares

TreasuryStock

12¥12,651¥15,643¥89,829¥(295)

Millions of yen
Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
remeasurements ofdifference on
currencyorlossesonavailable-for-saledefined benefit
translation
hedgesplans
securities
adjustment
Balance at April 1, 2016

¥3,750

¥(18)

¥170

¥(1,187)

Share
subscription
rights

Noncontrollinginterests

¥10

¥814

¥76,978(2,959)Cash dividends paid
Profit attributable toowners of parent

26,277

Disposal of treasury stock2

Acquisition of treasury stock
Change of scope of
consolidation
Net changes in items otherthan shareholders’ equity(249)

Balance at April 1, 2017
Conversion of Convertiblebond-type bonds with
Subscription rights
to shares

19
102

7

(25)

578

(0)

14

676

¥3,852

¥(11)

¥145

¥(609)¥10¥828¥100,744
1,302(3,884)

Cash dividends paid
Profit attributable toowners of parent

23,862

Disposal of treasury stock

9

Acquisition of treasury stock
Change of scope of
consolidation
Net changes in items otherthan shareholders’ equity(3)

Balance at March 31, 2018

16

Total

12
756

(9)

(10)

(387)

(1)

8

357

¥4,608

¥(20)

¥135

¥(996)¥9¥836¥122,400

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

Balance at April 1, 2017
Conversion of Convertiblebond-type bonds with
Subscription rights
to shares

Capital stock

CapitalsurplusRetainedearnings

Treasurystock$112,920$141,094$657,184$(2,852)

6,126

6,126
(36,548)

Cash dividends paid
Profit attributable toowners of parent

224,541(19)

Disposal of treasury stock

Balance at March 31, 2018

104
(27)

Acquisition of treasury stock
Change of scope of
consolidation
Net changes in items otherthan shareholders’ equity

113$119,046$147,201$845,290$(2,775)

Thousands of U.S. dollars (Note 1)
Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
remeasurements
difference on
currency
or losses onof defined
available-for-saletranslation
hedgesbenefit planssecurities
adjustment
Balance at April 1, 2017
Conversion of Convertiblebond-type bonds with
Subscription rights
to shares$36,247$(103)$1,364$(5,730)

Share
subscription
rights

Noncontrollinginterests$94$7,792

Total$948,010
12,252(36,548)

Cash dividends paid
Profit attributable toowners of parent

224,541

Disposal of treasury stock85

Acquisition of treasury stock
Change of scope of
consolidation
Net changes in items otherthan shareholders’ equity(27)

Balance at March 31, 2018

113
7,114

(85)

(94)

(3,642)

(9)

75

3,359

$43,361$(188)$1,270$(9,372)$85$7,867$1,151,785

See accompanying notes.

17

Consolidated Statements of Cash Flows
HAZAMA ANDO CORPORATION and Consolidated Subsidiaries
For the years ended March 31, 2018 and 2017

2018

2017

Thousands of
U.S. dollars(Note 1)
2018

¥34,153¥35,253$321,380

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

1,199
1,098
(2,220)(3,016)
(178)
1,152
(444)
344
354
(81)
1
(127)

16,9387,076(19)(2,400)5,430(12,816)(4,046)
4,714
612(1,468)－(339)

17,498
(520)
1,472
4,085
(14,055)
1,454(2,631)
8,449(929)
50,430414(491)(12,226)
38,127(20,186)
1,480
168(2,892)
1,753(6,406)808(1,417)
1,744
8,387
412
(797)
(9,804)(1,802)

164,656(4,893)
13,85238,440(132,257)
13,682(24,758)
79,505(8,743)474,546
3,896(4,620)(115,047)
358,775(1,788)
1,294
(42)
187
(2,137)
589
(8)
51
(407)
(2,261)

(982)
9,681
(5,142)5,560(2,392)816(2)59(1,281)
6,317(16,825)
12,177(395)
1,760(20,109)
5,542
(75)
480
(3,831)(21,276)－
5,562(5,655)546(446)(3,884)(40)(45)(3,962)(53)
31,851
107,667
－

4,996
1,001
(5,670)－(451)(2,959)－(293)(3,376)(456)
683
106,936
49－
52,338(53,214)
5,138(4,197)(36,548)
(376)
(423)
(37,282)(499)
299,727
1,013,146
－

(328)

－

(3,086)¥139,190¥107,668$1,309,777

Millions of yen
Cash flows from operating activities:
Income before income taxes
Adjustment to reconcile income before income taxes to net
cash provided by operating activities:
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in net benefit defined liability
Increase (decrease) in provision for warranties for completed construction
Interest and dividends income
Interest expense
Foreign exchange loss (gain)
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of property, plant and equipment
Changes in assets and liabilities:
Decrease (increase) in notes and accounts receivable
Decrease (increase) in costs on uncompleted construction contracts
Decrease (increase) in other inventories
Decrease (increase) in advances paid
Increase (decrease) in notes and accounts payable
Increase (decrease) in advances received
Increase (decrease) in deposit received
Increase (decrease) in consumption tax payable
Other, net
SubtotalInterest and dividends received
Interest paid
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
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
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of year (Note 4)
See accompanying notes.

18

Notes to Consolidated Financial Statements
HAZAMA ANDO CORPORATION- and Consolidated Subsidiaries
For the years ended March 31, 2018 and 2017

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, 2018, which was ¥106.27 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 ¥651.77 (US$6.13) and ¥541.43 at March 31, 2018 and 2017, respectively.
(18) Additional information
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 thegoal of increasing awareness of the importance of contributing to further enhancing the corporate value and performanceover the medium-to-long-term.
The Company’s stock is acquired through the Board Incentive Plan Trust (“BIP Trust”) and awarded to the Directors inaccordance with performance targets achieved.
(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 theCompany’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 were ¥240 million(US$2,258 thousand) and 419,850 shares, ¥247 million and 432,600 shares at March 31, 2018 and 2017, respectively.

21

3. Securities(1) The following tables summarize book values and acquisition costs of available-for-sale securities at March 31, 2018 and2017:
Millions of yen
Book values
Type
Securities with book values exceeding acquisition costs

2018
Acquisition
costs

DifferenceBook values

2017
Acquisition
costs

Difference

Equity securities¥14,966¥8,403¥6,563¥14,198¥8,365¥5,833Sub total

14,966

8,403

6,563

14,198

8,365

5,833

Securities with book values not exceeding acquisition costs
Equity securities¥3,205¥3,316¥(111)¥2,967¥3,340¥(373)

Corporate bonds

2,000

2,000

－

2,000

2,000

－

28,00028,000－16,00016,000－

Negotiable certificatesof deposit
Other

－

－

－

2,000

2,000

－

Sub total

33,20533,316(111)

22,967

23,340

(373)

Total

¥48,171¥41,719¥6,452¥37,165¥31,705¥5,460Thousands of U.S. dollars
Book values

Type
Securities with book values exceeding acquisition costs

2018
Acquisition
costs

Difference

Equity securities$140,830$79,072$61,758

Sub total

140,830

79,072

61,758

Securities with book values not exceeding acquisition costs
Equity securities$30,159$31,204$(1,045)

Corporate bonds

18,82018,820－263,480

263,480－

Sub total

312,459

313,504(1,045)

Total$453,289$392,576$60,713

Negotiable certificatesof deposit(2) 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
2018

Millions of yen
Type

2018

2017

Government bonds
Cost of sales

－

¥386

－

Sales

－

441

－

Related gains

－

55

－

The reason for sale
In order to effectively utilize assets, we sold the government bonds for held-to-maturity debt securities in the previous fiscal
year.

22

(3) Total sales, related gains and losses of available-for-sale securities for the year ended March 31, 2018 and 2017 are as
follows:
Thousands of
U.S. dollars
2018

Millions of yen
Type

2018

2017

Equity securities
Sales

¥185

¥117

$1,741

Related gains

156

26

1,468

(4) Impairment losses on securities recognized for the years ended March 31, 2017 is as follows:
Thousands of
U.S. dollars
2018

Millions of yen
Type

2018

2017

Available-for-sale securities

－

¥1

－

Total

－

¥1

－

4. Cash and Cash Equivalents
Cash and cash equivalents reported in the consolidated statements of cash flows at March 31, 2018 and 2017 were reconciledwith cash and time deposits reported in the consolidated balance sheets as follows:
Millions of yen
2018
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

2017

Thousands of
U.S. dollars
2018¥110,768¥88,700$1,042,326(1,578)(1,032)(14,849)

30,00020,000282,300¥139,190¥107,668$1,309,777

5. Inventories
Inventories at March 31, 2018 and 2017 consisted of the following:
Millions of yen
2018

2017

Thousands of
U.S. dollars
2018

Accumulated Costs on uncompleted construction contracts¥5,320¥4,801Others

3,933

5,404

$50,061
37,010Total¥9,253¥10,205$87,07123

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, 2018 and 2017.
Bonds at March 31, 2018 and 2017 are summarized below:
Thousands of
U.S. dollars
2018

Millions of yen
2018

2017

Long-term debt from bonds, insurance companies and others due serially through 2027:
Unsecured 0.4%

¥932

¥832

$8,770Less current maturities

(362)

(391)

(3,406)

Sub total

570

441

5,364

Convertible bond-type bonds with subscription rights to shares¥8,714¥10,033$81,999

Total¥9,284¥10,474$87,362

Long-term loans payable at March 31, 2018 and 2017 are summarized below:
Thousands of
U.S. dollars
2018

Millions of yen
2018

2017

Long-term debt from banks, insurance companies and others due serially through 2027:
Secured 0.9% to 1.6%

¥814

¥900

$7,661

Unsecured 1.0% to 2.8%

12,78912,796

120,344

Less current maturities(5,206)(5,152)(48,988)

Total¥8,397¥8,544$79,016

Repayment schedules for bonds are summarized below:

2019

¥362

Thousands of
U.S. dollars$3,406

2020

247

2,324

2021

159

1,496

2022

109

1,026

2023

55

518

Total

¥932

$8,770Years ending March 31,

Millions of yen

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

2019¥5,206

Thousands of
U.S. dollars$48,988

2020

4,517

42,505

2021

1,766

16,618

2022

1,118

10,520

2023

611

5,750

2024~

386

3,632

Total

¥13,604$128,013

Years ending March 31,

Millions of yen

As is customary in Japan, long-term and short-term bank loans are made under general agreements which provide that additional
security and guarantees for present and future indebtedness will be given under certain circumstances at the request of the banks,
and that any collateral furnished will be applicable to all indebtedness due to that bank.
In addition, the agreements provide that the bank has the right to offset cash deposited against any long-term and short-term
debt that become due and in case of default and certain other specified events, against all other debts payable to the bank. Suchrights have never been exercised by the bank.
24

7. Pledged Assets
The following assets were pledged to secure short-term bank loans, long-term debt and certain other obligation at March 31, 2018and 2017:
Thousands of
U.S. dollars

Millions of yen
2018

2018

2017

Property, plant and equipment¥1,669¥1,710$15,705

Investment securities

5,091

4,886

47,906

130

137

1,224

¥6,890¥6,733$64,835

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
2018

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

2018

2017
¥119

¥156

$1,1209. Contingent Liabilities
At March 31, 2018 and 2017, the Companies had the following contingent liabilities for loan guaranteed:
Thousands of
U.S. dollars
2018

Millions of yen
2018

2017

Guarantees for loan
Loans of employees

¥2

¥2

$19

Total

¥2

¥2

$19

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 31,2018 and 2017 were ¥327,195 million (US$3,078,903 thousand) and ¥354,901 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, 2018 and 2017 were ¥151 million (US$1,421 thousand) and ¥590 million, respectively.
12. Research and Development Expenses
Research and development expenses included in manufacturing costs, and selling, general and administrative expenses amounted
to ¥3,612 million (US$33,989 thousand) and ¥2,733 million for the years ended March 31, 2018 and 2017, respectively.

2513. Impairment Loss
Impairment loss for the year ended March, 31, 2018 is as follows:
Location

Use

Type of assets

Kanagawa prefecture

Asset for lease

Land

¥24

Thousands of
U.S. dollars$226

Idle asset

Land, leasehold right

728

6,850

¥752

$7,076

Chiba prefecture andSaitama prefecture

Millions of yen

Total

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
397

Total

¥1,098The Companies generally conduct grouping of its business assets by location and asset for lease or idle assets by each property
and land unit to measure impairment loss. As the market price or profitability of the above asset for lease were decreased and theother asset 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 in the special loss caption. The recoverable amounts of these assets were measured based on
net selling price, and were evaluated based on appraisal for assets with significant book value, and based on market standard forother assets.
14. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets for the year ended March 31, 2018 and 2017 are as follows:
Thousands of
U.S. dollars

Millions of yen
Type of assets

2018

2018

2017

Land and Buildings

¥67

¥137

Other

16

7

$630
151

Total

¥83

¥144

$781

15. Loss on Sales of Noncurrent Assets
Loss on sales of noncurrent assets for the year ended March 31, 2018 and 2017 are as follows:
Thousands of
U.S. dollars

Millions of yen
Type of assets

2018

2018

2017

Land and Buildings

¥47

¥16

other

－

¥0

$442
－

Total

¥47

¥16

$442

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.

26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
2018

Millions of yen
2018

2017

(1) Movement in retirement benefit obligations¥30,634¥29,851$288,266

Service cost

1,376

1,329

12,948Interest cost

306

299

2,879

Actuarial loss (gain)

567

645

5,336

Benefits paid

(1,665)(1,490)(15,668)

Balance at March 31, 2018 and 2017¥31,218¥30,634$293,761$190,609

Balance at April 1, 2017 and 2016(2) Movement in plan assets¥20,256¥19,096

Expected return on plan assets

219

215

2,061

Actuarial loss (gain)

(385)

729

(3,622)Contributions paid by the employer

1,214

1,212

11,424

Benefits paid

(1,083)(996)(10,191)

Balance at March 31, 2018 and 2017¥20,221¥20,256$190,281$14,491

Balance at April 1, 2017 and 2016(3) Movement in simplified method¥1,540¥1,426Retirement benefit costs

262

288

2,465

Benefits paid

(303)

(168)

(2,851)

2

(6)

19

¥1,501¥1,540$14,124

Balance at April 1, 2017 and 2016

Other
Balance at March 31, 2018 and 2017(4) Reconciliation from retirement benefit obligations and plan assets to liability (asset) for retirement benefits
Funded retirement benefit obligation¥31,218¥30,634$293,761

Plan assets(20,221)(20,256)(190,279)

10,997

10,378103,482

Unfunded retirement benefit obligation

1,501

1,540

14,124

Total net liability (asset) for retirement benefits at March 31, 2018 and 201712,498

11,918

117,606

Net defined benefit liability

12,498

11,918

117,606

Total net liability (asset) for retirement benefits at March 31, 2018 and 2017¥12,498¥11,918$117,606(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.

27

Thousands of
U.S. dollars
2018

Millions of yen
2018

2017

(5) Retirement benefit costs
Service cost

¥1,376¥1,329Interest cost

306

298

2,879

Expected return on plan assets

(220)

(215)

(2,070)Net actuarial loss amortization

394

672

3,708

Past service costs amortization

－

78

－

Retirement benefit expenses by simplified method

262

289

2,465

¥2,118¥2,451$19,930

Total retirement benefit costs for the fiscal year ended March 31, 2018 and 2017$12,948(6) Remeasurements of defined benefit plans
Past service costs

¥ －

¥(78)

$ －

Net actuarial loss

(588)

(756)

(5,533)

Total adjustments for retirement benefit¥(588)¥(834)$(5,533)(7) Accumulated remeasurements of defined benefit plans
Actuarial gains and losses that are yet to be recognized

1,436

878

13,513

Total accumulated adjustments for retirement benefit¥1,436¥878$13,513(8) Plan assets
1. Plan assets comprise:
2018

2017

Bonds

41%

41%

Equity securities

21

22

General account assets

16

16

Cash and deposits

3

3

Other

19

18

Total

100%

100%

(Note) The retirement benefit trust that has been established for the corporate pension plan accounts for 12% and 14% of the total plan assets forthe year ended March 31, 2018 and 2017.
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, 2018 and 2017 (expressed as weighted averages) follow:
2018

28

2017

Discount rate

1.0%

1.0%

Long-term expected rate of return

1.1%

1.1%

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% for the years ended March 31, 2017.
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.
Differences between the statutory tax rate and the effective tax rate for the year ended March 31, 2018 were not disclosed,
since the difference between the statutory tax rate and the effective tax rate is less than 5% of the statutory effective tax rate.
2017
Statutory tax rate

30.9%

Permanent non-deductible expenses

0.4

Permanent non-taxable income(0.4)

Per capita inhabitant taxes

0.5

Change in valuation allowance(3.9)

Others(2.1)

Effective tax rate

25.4%

Significant components of deferred tax assets and liabilities at March 31, 2018 and 2017 are as follows:
Millions of yen
2018

2017

Thousands of
U.S. dollars
2018

Deferred tax assets:
Net defined benefit liability¥5,452¥5,008Others

6,076

7,254

$51,30357,175Gross deferred tax assets

11,52812,262

108,478

Less: Valuation allowance(2,575)(3,067)(24,230)

Total deferred tax assets

8,953

9,195

84,248Valuation difference on available-for-sale securities

1,839

1,603

17,305

Others

1,937

1,861

18,227

Total deferred tax liabilities

3,776

3,464

35,532

Net deferred tax assets¥5,177¥5,731$48,716

Deferred tax liabilities:

2919. Comprehensive Income
Amounts reclassified to profit for the fiscal year ended March 31, 2018 and 2017 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
2018

Millions of yen
2018

2017

Valuation difference on available-for-sale securities:¥1,050¥205

Reclassification adjustment

(58)

(26)

(546)

Sub-total, before tax

992

179

9,335

Tax (expense) or benefit

(237)

(76)

(2,230)Sub-total, net of tax

755

103

7,105

¥(19)

¥2

$(178)

6

7

56

(13)

9

(122)

Tax (expense) or benefit

4

(3)

37

Sub-total, net of tax

(9)

6

(85)

Increase (decrease) during the year

¥76

¥(46)

$715

Reclassification adjustment

－

－

－

Sub-total, before tax

76

(46)

715

Tax (expense) or benefit

－

1

－

Sub-total, net of tax

76

(45)

715

Increase (decrease) during the year

$9,881

Deferred gains or losses on hedges:
Increase (decrease) during the year
Reclassification adjustment
Sub-total, before tax

Foreign currency translation adjustment:

Remeasurements of defined benefit plans¥(953)¥84$(8,968)

Reclassification adjustment

395

750

3,717

Sub-total, before tax

(558)

834

(5,251)Tax (expense) or benefit

171

(255)

1,609

Sub-total, net of tax

(387)

579

(3,642)

Total other comprehensive income

¥435

¥643

$4,093

Increase (decrease) during the year

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.

30

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

Balance at April 1, 2016

Number ofsharesCommonstock
185,209,189

Increase during the year

0

Decrease during the year

0

Balance at April 1, 2017

185,209,189

Increase during the year

1,951,072

Decrease during the year
Balance at March 31, 2018

(2) Treasury stock outstanding

0
187,160,261

Balance at April 1, 2016

Number ofsharesCommonstock
260,800

Increase during the year

435,869

Decrease during the year

9,914

Balance at April 1, 2017

686,755

Increase during the year

3,525

Decrease during the year

28,659Balance at March 31, 2018

661,621(Note) Stock owned by BIP Trust is included in Treasury stock at March 31, 2018 (Included amount: 419,850 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.
31(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, 2018 is as follows:
Millions of yen
CivilengineeringYear ended March 31, 2018:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:¥127,589¥215,944¥27,026¥370,559¥6,461¥377,020

¥ －

－

51

41,282

41,333

16

41,349(41,349)－

Total

127,589

215,995

68,308411,892

6,477

418,369(41,349)

377,020

Segment profit

22,365

16,562

1,441

40,368660

41,028(5,313)35,715

Assets

Note 4Note 4

36,162

179,358

8,590

187,948

141,833

329,781

485

822

265

1,572

94

1,666

116

1,782

Note 4Note 4

334

2,572

2

2,574

(7)

2,567

Outside customers
Intersegment

Other material items:
Depreciation
and amortization
Capital expenditures¥377,020

Thousands of U.S. dollars
Civil
engineeringYear ended March 31, 2018:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:$1,200,612$2,032,032$254,314$3,486,958$60,798$3,547,756

$ －

－

480

388,463

388,943151

389,094(389,094)－

1,200,612

2,032,512

642,777

3,875,901

60,9493,936,850(389,094)

3,547,756

Segment profit

210,455

155,848

13,560379,863

6,210

386,073(49,995)

336,078

Assets

Note 4Note 4340,284

1,687,758

80,831

1,768,589

1,334,648

3,103,237

Other material items:
Depreciation
and amortization
Capital expenditures

4,563

7,735

2,494

14,792884

15,676

1,093

16,769Note 4Note 4

3,143

24,20318

24,221(66)

24,155

Outside customers
Intersegment
Total$3,547,756

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 ¥(5,314) million (US$(50,005) thousand), which included ¥(13) million (US$(122)thousand) of intersegment eliminations and others, and ¥(5,301) million (US$(49,883) 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 ¥141,834 million (US$1,334,657 thousand), which included ¥(21,434) million(US$(201,694) thousand) of intersegment eliminations and others, and ¥163,268 million (US$1,536,351 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 ¥143,196 million (US$1,347,473 thousand), and capital
expenditures of these segments are amounted to ¥2,238 million (US$21,060 thousand).

32

(b) Segment information as of and for the fiscal year ended March 31, 2017 is as follows:
Millions of yen
CivilengineeringYear ended March 31, 2017:

Reportable segments
Building
Consolidated
construction subsidiaries

Sub total

Other

Total

Reconciliations Consolidated

Revenues:
Outside customers¥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

Intersegment

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

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).

(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, 2018 and 2017 are as follows:
Millions of yen

Geographic Areas
Japan
Other
Total

Thousands of
U.S. dollars
2018

2018

2017

¥350,798¥379,403

26,22328,592

246,758¥377,021¥407,995$3,547,765$3,301,007(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%.

33

(c) Information about major customers
Disclosure of information about major customers is omitted, since net sales to no single customer represented 10% or moreof total net sales of the Companies’ consolidated statements of income for the year ended March 31, 2018.
Disclosure of information about major customers for the year ended March 31, 2017 is as follows:
Sales

Customers

Segments

Millions of yen

Ministry of the Environment¥47,898

Civil engineering(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, 2018 and 2017 are as follows:
Millions of yen
2018

Impairment loss

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

Eliminations
and others

Other
¥24

Total

¥728

¥752

Thousands of U.S. dollars
2018

Impairment loss

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

Other

Eliminations
and others$226$6,850Total$7,076

Millions of yen
2017

Impairment loss

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

Other

Eliminations
and others¥ －¥1,098

Total¥1,09823. 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 31,2018 is as follows:
Profitattributable toowners of parent
Year ended March 31, 2018:

Millions of yen

Profit attributable to owners of parent¥23,862

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

Weightedaverage
sharesThousands ofshares185,027

EPS
Yen

U.S. dollars¥128.97$1.21¥119.41$1.12

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation(11)

14,713¥23,873

199,740(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, 2018 were 669
thousand including 424 thousand of shares in BIP Trust at the year ended March 31, 2018.

34

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

Profit attributable to owners of parent¥26,277

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

Weightedaverage
sharesThousands ofshares184,666

EPS
Yen¥142.30

Effect of dilution
Shares adjusted by share subscription rights
Diluted EPS-Profit for computation(11)

14,920¥26,266

199,586¥131.60

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 24 “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 12.3% 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.

35

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

Thousands of U.S. dollars

Book values

Fair values

DifferenceBook values

Fair values

Difference¥110,768¥110,768¥ －$1,042,326$1,042,326$ －(b) Receivables:
Notes

7,244

7,244

－

68,166

68,166－

Accounts

98,191

98,185(6)

923,977

923,920(57)(c) Marketable securities andInvestment securities:
48,171

48,171－

453,289453,289－¥264,374¥264,368¥(6)$2,487,758$2,487,701

$(57)

Notes

¥36,526¥36,526¥ －$343,709$343,709$ －Accounts

51,936

51,936－

488,718

488,718－

16,674

16,674－

156,902

156,902

－

5,206

5,206

－

48,98848,988

－

362

362

－

3,406

3,406

－

570

571

1

5,364

5,373

9

8,397

8,431

34

79,016

79,336

320¥119,671¥119,706¥35$1,126,103$1,126,432

$329

¥(30)

¥(30)

¥ －

$(282)$(282)$ －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, 2017:
Millions of yen
TypeAssets(a) Cash and time deposits

Book values

Fair values

Difference¥88,700¥88,700

¥ －

2,630

2,630

－

120,303120,296(7)(b) Receivables:
Notes
Accounts(c) Marketable securities andInvestment securities:
Available-for-sale securities

37,16537,165－¥248,798¥248,791

¥(7)

Notes

¥48,883¥48,883¥ －Accounts

53,621

53,621－

16,674

16,674

－

5,152

5,152

－

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

36

391

391

－

440

442

2

8,544

8,613

69

¥133,705¥133,776

¥71

¥(17)

¥(17)

¥ －

Notes:1. Method of measurement of financial instruments and matters concerning securities and derivatives(Assets)(a) Cash and time deposits
The fair values of this account is equivalent to the book value, since this account is settled in a short period of time.
(b) Notes and accounts receivables
The fair values of these accounts are based on the present value of discounted cash flows using the interest rate determined by the factors of
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 24 “Derivative Financial Instruments”.
2. Financial instruments which are difficult to estimate the fair value
Non-marketable securities (book values of ¥3,636 million (US$34,215 thousand) and ¥3,373 million at March 31, 2018 and 2017,
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 Current portion of convertible bond-type bonds with subscription rights to shares (book value of ¥8,714 million(US$81,999 thousand) at March 31, 2018) and Convertible bond-type bonds with subscription rights to shares (book value of ¥10,033 million
at March 31, 2017) are 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, 2018 and 2017 are as
follows:
Millions of yen
2018
Within1 yearCash and time deposits¥110,768

2017

Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 yearsWithin1 year¥ －¥88,700Over
1 yearless than
5 years¥ －Over
5 yearsless than
10 years¥ －Over
10 years¥ －Receivables:
Notes

7,244

－

－

－

2,630

－

－

－

Accounts

93,913

4,278

－

－

114,759

5,544

－

－

Corporate bonds

2,000

－

－

－

2,000

－

－

－

Negotiable certificates of deposit

28,000－－－16,000

－

－

－

Other

－

－

－

－

2,000

－

－

－

Total

¥241,925¥4,278¥ －¥ －¥226,089¥5,544

¥ －

¥ －

37

Thousands of U.S. dollars
2018
Within1 year
$1,042,326

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

68,166－－－

Accounts

883,721

40,256－－

Corporate bonds

18,820－－－

Negotiable certificates of deposit

263,480

－

－

－

Other

－

－

－

－

Total

$2,276,513$40,256$ －$ －25. Derivative Financial Instruments
Derivative transactions accounted for by the hedge accounting at March 31, 2018 and 2017 are as follows:(Currency-related transactions)
Millions of yen
2018Type ofderivative transactions

Benchmark method:
Foreign exchange
forward contract (Buy EUR)

Main items
hedgedForecasted
transactions
denominated
Buy in foreign
currencies

2017

Contract amount
Settled overTotal
1 year

¥661

¥ －

Fair
value

Contract amount
Settled overTotal
1 year

¥(20)

¥ －

Fair
value

¥ －

－

Contract amount
Settled overTotal
1 yearFair
value

Thousands of U.S. dollars
2018Type ofderivative transactions

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

Main items
hedgedForecasted
transactions
denominated
Buy in foreign
currencies

Contract amount
Settled overTotal
1 year$6,220

$ －

Fair
value

$(188)Note:
1. Fair value is based on the prices obtained from counterparty financial institutions.

(Interest-related transactions)
Millions of yen
2018Type ofderivative transactions

Benchmark method:

Interest swap contract:
To pay fixed, to receive variable

Short-cut method:

Interest swap contract:
To pay fixed, to receive variable38

Main items
hedged2017

Contract amount
Settled overTotal
1 yearFair
value

Long-termloans payable

¥720

¥648

¥(10)

¥793

¥720

¥(17)

Long-termloans payable¥4,072¥2,544Note 2¥6,015¥4,034Note 2

Thousands of U.S. dollars
2018Type ofderivative transactions

Main items
hedgedContract amount
Settled over
1 year

Total

Fair
value

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

Long-termloans payable$6,775$6,098¥(94)$38,317$23,939

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.

3926. Stock Option Plans(1) No cost for stock options is recognized for the years ended March 31, 2018 and 2017.
(2) The stock options outstanding at March 31, 2018 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

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, 2009Class and numberof shares
Date of grantCondition of
settlement rights

Length of service
Exercisable period

40

Directors of the Company: 9
Executive officers: 12
115,000 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

to July 14, 2019

to July 13, 2020

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

June 26, 2009

Directors of the Company: 8
Executive officers: 8

June 29, 2011
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

to July 14, 2022

(b) Number and price

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

－

－

－

－

Granted during the year

－

－

－

－

－

－

－

－

Vested during the year

－

－

－

－

At the end of the year

－

－

－

－
39,600Non-vested shares

Forfeited and expired during theyear

Vested shares
At the beginning of the year

8,800

23,00036,000

Vested during the year

－

－

－

－

Exercised during the year

－

4,600

4,500

6,600

－

－

－

－
33,000Forfeited or expired during the
year

8,800

18,40031,500Exercise priceUnexercised at the end of the year

¥1

¥1

¥1

¥1

Average stock price at exercise

－

¥767

¥767

¥757

Fair value price at the grant date

¥107

¥101

¥72

¥111

(3) Method to estimate fair value of stock options
The Company does not grant any stock options to its employees for the current fiscal year.
(4) Method to estimate number of vested stock options
As a reasonable estimate of the forfeited number of stock options in the future is generally difficult, the Company adopts amethod whereby only actual forfeited numbers are reflected.
27. Subsequent Event(1) Significant disaster
A fire occurred at the building under construction by the Company on July 26, 2018, and a part of the building was damaged. The
Company is currently reviewing the effect of the fire, which is yet to be determined. The project’s general information is asfollows:(a) Project’s name(b) Owner(c) Construction Period(d) Location(e) Project’s function(f) Scope of Works

Tama Technology Building Construction Work
Minami Tama Specific Purpose Company
October 2016 - October 2018
1-22-1, karakida, Tama-shi, Tokyo
Office3-storeys high building (steel structure)
With 3 basement floors and penthouse(g) Construction Area

5,358.62 m2(h) Total Floor Area

17,666.89 m2

41

(2) Exercise of rights of Convertible bond-type bonds with subscription to shares
Japanese yen 10,000,000,000 zero coupon convertible bond-type bonds with subscription to shares due 2019 issued by theCompany in March 2016 were converted to new shares through exercise of rights after the end of fiscal year ended March 31,2018 until August 20, 2018. The outline of the conversion is as follows:(a) The number of exercising Subscription rights to shares

1,222 shares(b) Increase in the number of issued shares and their class

9,221,688 common shares(Account for 4.9% of the total issued shares as of March 31, 2018)(c) Decrease in Convertible bond-type bonds with
subscription rights to shares

42¥6,118 million (US$57,570 thousand)(d) Increase in Capital stock¥3,059 million (US$28,785 thousand)(e) Increase in Legal capital surplus¥3,059 million (US$28,785 thousand)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.
Laos
Cambodia
Nepal

South Africa

OfficesThailand

Vietnam

Sri Lanka
MyanmarThailand
Malaysia
Indonesia

MexicoHonduras
PanamaAddressPhone

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

66-2-665-7041

Vietnam

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

Malaysia

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

60-3-2031-4902

Indonesia

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

62-21-3140392

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

95-1-2316002 (Ext.513)

Sri Lanka

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

94-11-233-4784

Laos

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

856-21-250-872

Cambodia

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

855-23-992-914

Nepal

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

977-1-4787289

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

90-216-456-5047

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

52-55-5525-9311

U.S.A.

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

1-614-985-4906

PanamaEdificio Office One. Oficina No. 1104 Avenida Nicanor de Obarrio o Calle 50 con 58 Este Obarrio, Ciudad de 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

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

27-11-881-5959

44

Corporate DataName

(As of March 31, 2018)

Authorized Shares

HAZAMA ANDO CORPORATION

Issued Shares

Common stock
400,000,000

Established

Common stock
187,160,261

October 1, 2003

Number of Shareholders
32,025
Number of Employees
3,407

Capital¥12,651,272,530

Directors, Officers
Board Directors
Representative Director andPresident
Masato Fukutomi
Representative Directors andVice Presidents
Hidekazu Kojima
Haruyuki Kaneko(As of June 28, 2018)

Board Directors/
Managing Executive Officers
Hideo Matsumoto
Shinya Miyamori
Board Directors(External Board Directors)
Masami Fujita
Mariko Kitagawa
Mieko Kuwayama

Board Director and Chairman

Executive Officers
Senior Managing Executive
Officers
Muneo Gomi
Hikari Yamazaki

Toshio Ono

Auditors

Board Director andVice Chairman

Auditors
Kimihiro Hirata
Norio Chonan

Toshiaki Nomura

Corporate Auditors(External Auditors)
Shigeo Kamimura
Masamitsu Takahara

Board Director/Senior Managing
Executive Officer

Managing Executive Officers
Kazuya Ozawa
Katsuhiko Tabuchi
Hajime Tsukizu
Toshiaki Iimura
Shin Terauchi

Executive Officers
Tomoki Kitagawa
Shinkichi Komatsubara
Katsuhiko Kosaka
Tatsumi Asao
Masaaki Tomita
Ken Moriyasu
Kazutaka Miyazaki
Hiroshi Ono
Takeshi Komatsu
Fuminori Hirosue
Ryo Onishi
Ichiro Kato
Tetsuo Tomoike

Toru Ikegami

Major Subsidiaries and Affiliates
Name
Stated Capital			(As of March 31,2018)

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
62-21-3141780

45

U09I Printed in Japan