Annual Report

2016

Leading to the Future with our Technology of Protection

HEADQUARTERS
4F, 5F and 6F, Heiwa Higashi-Nihonbashi Bldg., 3-10-6,
Higashi-Nihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL +81-3-5645-5050
FAX +81-3-5645-5051
The Corporate Strategy Division
TEL +81-3-5645-5080
FAX +81-3-5645-5083

JAKARTA Representative Office
Epicentrum Walk Lantai 5 Unit B515 Jl. HR Rasuna Said, Kuningan,Jakarta
12940, Indonesia
TEL +62 (21) 2994-1582
FAX +62 (21) 2994-1991

NITTOC CONSTRUCTION CO., LTD.

Leading to the Future with ourTechnology of Protection

MISSION
With efficient management and comprehensive technical capabilities in foundation work,
we are the company that provides safe and secure society and contributes to countries.

VISIONWe are leading disaster prevention and environmental conservation as the expert offoundation work by accumulated our reliable technological ability.

CONTENTP02 Advantage of NITTOC
P04 A Message from the President

P26 Contribution to Society
P27 Fairs Where We Plan to Exhibit and Our Award-Winning History

P10 Maintenance and Renovation

P28 Financial Highlights
P71 Corporate Overview and Major Construction Methods

P14 Disaster Prevention andEnvironmental Conservation

P72 Management Members
P74 Corporate History

P06 Urban Regeneration

P18 Corporate Governance
P19 Overseas Deployment
P24 Environmental Responsibility
P25 Landscape Conservation
Technology of Cultural Propertyc

ANNUAL REPORT 2016

ANNUAL REPORT 201601

Advantage
of Nittoc

Advantage ofFor
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

NITTOC

Since the establishment of Nittoc,
we have cultivated our unique expertise through our construction experience for more than half century.
NITTOC is a leading company in the field of foundation work in Japan.
Nowadays, we have different field of technique to respond to the needs of society,“Disaster Prevention and Environmental Conservation”, “Urban Regeneration”,
and “Maintenance and Renovation”.
Our technology contributes safety andsecure environment to the society.

3 Types of Business Field respond to Social Needs
We are holding 200 types of technology

Urban
Regenerationand construction method

We must restructure in order to reborn a city
under the strong disaster.
It is not an easy project in the city which has
so many compressed buildings.
Even under the compress buildings situation,
NITTOC have developed earthquake resistant,liquefaction prevention and existing pile

Maintenanceand Renovation
NITTOC specializes in slope related technique whichremoval method to contribute the society.

Today in this aging of social infrastructure century,

Disaster Prevention andEnvironmental Conservation

we developed our own diagnostic techniques as well as

Since Japan has geographical conditions that make itrepair method for the existing slopes,

prone to being affected by natural disasters,

we also established a control system that canlarge scale disasters have become more frequent in recent years.

be coordinates in maintenance work totally.

For this reason, in order to build a friendly, trusty and safely society in Japan,

In addition, we have developed special materials for long distance pumping,

we have developed our slope protection method does not use concrete,high strength and introduced in heavy environment, mountain area orusing a method for spraying vegetative material base,long distance tunnel for headrace channel.

or greening method by using surplus soil left in the site,

accumulates a brilliant achievement.

based on the consideration of the disaster prevention environment.
In addition, NITTOC accumulates a brilliant achievement about Anchor Method,that is necessary to slope disaster prevention.

02

ANNUAL REPORT 2016

ANNUAL REPORT 201603

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

For Stakeholders

A Message fromthe President
Established in 1947 as a firm involved in the

The construction is now under a very harshfoundation work for dam,we at Nittoc Construction

climate in the business we’ve never been

have since been producing many outstanding

experiencing before, while the social needs forrecords in a wide range of civil engineering works

national land conservation, preservation of naturalfor dam,river,road,sewage,water supply and land

environment and furthermore, reinforcement anddevelopment.

maintenance of infrastructure have also been

In our Nittoc,large numbers of professionals are

increasing more and more in recent years.

enrolled respectively as civil engineer, geologist

We at Nittoc look on such harsh circumstancesand other specialist, who are also richly

as a good opportunity for further development inexperienced in the actual on-site construction

our business and thus,exert ourselves to solidify

works.To meet the requirements of the days, they

a company’s business foundation and at thehave been working hard to develop a variety ofsame time,make our best efforts to aim at a highly

innovative technologies and to create related

reliable company in the society by offering theengineering methods or applications in the sphereoriginal technologies we possess to be appliedof “Environment,Disaster Prevention,Renovation

faithfully to the works.

and Maintenance”,the very area of expertise theYour cordial support and cooperation to us,Nittoc

company has been offering to date,in particular.

Construction,will be very much appreciated in

Displaying all the collective strength upon theadvance.

united teamwork between the technical or
technological staffs and those involved in theactual on-site works of engineering for thefoundation,slope stabilization,soil improvement,
geological survey,etc.,we at Nittoc have also
been working hard to offer the services of highquality under the authentication of ISO9001 as
the “General Contractor excelling at a Certain
Specialized Civil Engineering Work”.

04

ANNUAL REPORT 2016

Tamotsu Nakamori
President & Representative Director

ANNUAL REPORT 201605

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Disaster Prevention andEnvironmental Conservation
Construction Performance, Method, and Technology

Example of Construction:

Kiyomizu-dera Temple (Kyoto)
The slope of the Kiyomizu-dera, a World Heritage site, collapsed due to the heavy rain caused by Typhoon Man-yi
in September 2013.
In 2014 through 2015, the collapsed slope was reinforced by ground reinforcement work and ground anchor work,and covered with reinforced soil using the Geofiber Method. Since then, plants have grown at the site and the beautiful
landscape full of greenery has returned.

Since Japan has geographical conditions that make it prone
to being affected by natural disasters,
large scale disasters have become more frequent in recent years.
For this reason, in order to build a friendly, trusty and safely society in Japan,
we have developed our slope protection method does not use concrete,using a method for spraying vegetative material baseor greening method by using surplus soil left in the site,
based on the consideration of the disaster prevention environment.
In addition, NITTOC accumulates a brilliant achievement about Anchor method,that is necessary to slope disaster prevention.

Non-Concrete Technology:

During the work

Geofiber Method
NETIS No. KT-980183-VE Practical-use facilitation technology

Environment-Friendly Slope
Protection Method

Continuous fiber reinforced soil work
(slope protection type)• Serves to decrease CO2 emissions as a substitutemethod for the shotcrete method.
• Forms forest on slopes by enablingfull-space greening.
• Has an abundant record of slope greening(approximately 3,000 projects in Japan and 150
overseas).

One year after the work completion

Vegetation work(vegetation basematerial spraying work)

Ground reinforcement orplate-reinforced anchor work

Work completed

Area Having
Difficulty in Greening
Sander Green Method

Slope Protection without Destructionof the Original LandscapeFiber Soil
Greening Step Method

Geofiber Method

Greening Work Using the
Existing Seeds of Indigenous Plants,
Giving Primary Consideration
to the Original Ecosystem
Native Recovery Greening Method

Continuous fiber-reinforced
soil work(retaining wall shape type)

Sand from the right-side nozzle and polyester
continuous fiber from the left-side nozzle are injectedby jet water to form continuous fiber-reinforced soil.

Continuous fiber-reinforced soil

Acidic Soil

06

ANNUAL REPORT 2016

Steep Slope, Rock Slope

Shrines, Temples,
Historical Properties

Natural Parks

ANNUAL REPORT 201607

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Native Recovery Greening Method

Recycle Greening Method

NETS No. CG-080004-V

We have various recycle greening methods to use surplus soil and chips in response to onsite needs.

Efficiently Using Surface Soil Taken from Forests• Recovers the vegetation of indigenous plants using buried seeds in the surface soil of forests.
• Adopted for works that take into account the ecosystem, especially around national and quasi-national parks.

TSURU-KAME
Soil Method

Kaerudo-Green
MethodNekko Chip
MethodChip material

Surplus soil

Fiber Soil Greening Step Method

100%

Greening of Mortar Shotcrete
Surfaces and Bedrock

Sprayedfoundation• Full-space greening by spraying the foundation materials forgreening work on a slope without soil in the form ofwave-shaped steps.

Hole forroot system

Creatinghorizontal parts

Dispersion of
surface water

Concave portion:
5-7 cm100%

NEKKO Chip Method

KAERUDO-Green Method

NETIS No. CB-980067-VE

NETIS No. TH-020037-V

Recycling of Surplus Soil and Chip Material

Using Excavated Soil including Surface Soil as aFoundation Material of Greening Work• Recycles raw chip material.
• Uses buried seeds in the surface soil of forests economically.
• Ensures efficient and effective* work via a dedicatedmachinery system.

Approximately 20 cm
in depth for thedevelopment of aroot system

Convex portion:
13-15 cm

50%

50%

Chip Material

Surplus Soil

Seeding

GroundNETIS No. SK-110005-A• Employs a simple method that mixes “Sander Powder,”which has a neutralizing effect, and “Sander Bio,” anacid-resistant VA mycorrhizal fungus material,with the foundation material for greening work.

Spore of VA
mycorrhizal fungi

Sander Bio:80%
Surplus Soil

Non-seeding Use of buried
seeds

TSURU-KAME Soil Method

NETIS No. SK-100014-A• Recycles a wide variety of soils such as excavated soil, dredged soil
and dehydrated cake.
• Uses buried seeds in the surface soil of forests economically.

*The work can be executed cheaper than that for the vegetation base material s
praying method, depending on conditions.

Averagespraying
thickness:
10 cm

SANDER Green Method
Recovery of Greenery on Strongly
Acidic Soil Slopes

Plant-Leading
Spraying Method

Seeding

Non-seeding Use of buried
seeds

Plant-Leading Spraying
MethodUsing the deforestation material to be afoundation material of greening work

*Comparison with the greening foundation mainly consisting of bark compost

100%• Uses the chip material, which derives from the secondarily processedfragments of felled trees, as a foundation material for greening workwithout being converted into compost.
• Makes possible greening via the natural intrusion of plants

Surplus Soil

90%
Chip Material

Seeding

Vegetation Base Material

NETIS No. QS-980200-V

Vegetation Base Material Spraying
Method Using 100% Surplus Soil
• Utilizes surplus soil effectively onsite• Excels in long-term durability*

Fungal hyphae entering
the root of a plant

20%

10%

Soil Improvement Material

Non-seeding Use of buried
seeds
Seeding

Non-seeding Use of buried
seeds

Fungal hyphae of VA mycorrhizal fungi08

ANNUAL REPORT 2016

ANNUAL REPORT 201609

Advantage
of Nittoc

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Our Business
field

For
Stakeholders

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Urban Regeneration

High-Permeation, High-Strength, Grouting Material

Construction Performance, Method, and Technology• Involves a turbid ground-grouting
material of which a major
ingredient is blast-furnace slag.
• Achieves excellent permeability
and durability.
• Features a lineup of “instantly
coherent type” and “long-lasting
coherent type” materials.

in the city which has so many compressed buildings.
Even under the compress buildings situation, NITTOC have developed earthquake resistant,

180

Ordinary Portland cement(impermeable)

120

Ultrafine particle
cement B

High-pressure
injection unit

New Sleeve Grouting
Method• Realizes long permeation/grouting intervals using a hexagonal“polygon pipe.”• Makes high-speed, high-quality improvement possible.
• Achieves low cost and a reduction in the construction period.

Secondary grouting

New Sleeve Grouting Method

Expacker-N Method

Underground Diameter Expanding Type
Soil-Mixing Improvement Method

High Capacity and Speedy
Grouting Method• Avoids underground objects.
• Enables vertical, horizontal and slanting operations.
• Achieves homogeneous soil improvement using a monitoring
control system• Ensures a reliable permeation point.
• Offers speedy permeation and grouting for an
extensive ground area.
• Applicable to a narrow operating area

Target Design Comparison Technology

Large-Diameter Ground
Improvement Method

60
50
40
Type: SALD2000J
Dispersion medium: Ethanol
Dispersion: Ultrasonic (50 W)
for three minutes

30

0
0.1

1
10
Particle diameter (μm)

100

Three-P Oct• Forms columnar, improved soil
to a maximum diameter of Ø5 m.
• Reduces the slime volume
substantially.*• Achieves ground improvement
at high speed and high quality.

*Comparison withprevious methods

New Management System for Grouting Method

Hard Ground and Large-Diameter Improvement:

DCS Method

Grouting at a max.
8 points

Opposite Direction Mixing-Type
Deep-Layer Mixing Method

Adjustment ofdischarge volume[Wireless terminal]
5) Completionof work[Branch system]
Monitoring of flowrate and pressure

Grout

Grout

• Attains a large columnar diameter of
2,000 mm (the Company’s track record).
• Achieves excellent
mixing power.
Rotational
direction ofinternal• Offers applicability
bladesRotational
directionoffor hard ground.
external
blades[Grout mixer]

Adjustment ofdischarge volume

Injection of
permanentgrout

L-Spin Column Method

NETIS No. KK-980026-V

70• Makes pressure-controlled grouting possible.
• Provides the pumping operation via a tablet terminal.
• Achieves concentrated management via a terminal PC.

2) Positioning of an
3) Filling of
4) Injection of1) Boringexternal pipe for grouting
geobags
permanent grout
External pipe
for grouting
Formationof a soil
Geobags
packerInjectionvalve
Geo filter-NØ 1,200 mm• Involves a trencher-type
mixing machine.
• Makes improvement
up to 13 m in depth
available.
• Makes homogeneous,improved soil via verticalmixing.

SUPERJET Method

UltrafineParticle B

Grouting Management System:
Sleeve Grouting Method

Slurry Shooting Type Mixing Method for
Shallow- and Middle-Depth Layers

80

Valve interval: 33 cm

WinBLADE Method

Diameter-expanding bit

UltrafineParticle A

90

Approx.
1m
Polygon pipe

Control unit

Extremely
Ultrafine Particle

Year 2011 Recommendation Technology

Ultrahigh Pressure Injection Mixing:

100

20

Improved diameter: 1,800–2,000 mm

Pattern diagram of an
improved body

• Achieves extremely highpermeability like a liquid.
• Applies grouting forminor cracks.
• Uses in diverse grouting
methods available

10

Mechanicalmixing unit

High-pressure
injection unit

Particle size image

0“Extremely Ultrafine
Cement”

Primary grouting

1,200 mm 300 mm400 mm

Mechanicalmixing unit

Ultrafine particle
cement A
Runningwater

60

High-Permeation, High-Strength, Grouting Material

Improving the Properties of the Ground at High Speed
to Achieve High Quality for Long Permeation/
Grouting Intervals

Discharge image

MX grout

Naturally falling permeability
time against No. 6 silica sand(15 cm in height)

Accumulation (%)• Injects a hardening agent from the nozzle at the leading edge of anenlarged-diameter type mixing blade.
• Enables a diagonal construction method, which has been problematicfor existing methods.
• Improves the properties of soft ground below hard ground by penetrating
the hard ground.
• Makes wrapping possible

NETIS No. CB-980012-V(Seconds)liquefaction prevention and existing pile removal method to contribute the society.

Mechanical Mixing Method Combinedwith High-Pressure Injection

Power Blender Method“MX Grout”

We must restructure in order to reborn a city under the strong disaster. It is not an easy project

L-Spin Column Method

Improvement for Shallow- and Middle-Depth Layers:[Grout pump]
Discharge of cement milk

CasingMixing blade

Expacker-N Method

SUPERJET Method

Power Blender Method

DCS Method

WinBLADE Method

NITTOCNew Sleeve Grouting Method

Embankment

Shaft

Buried tube
Maximum
depth of13 m

Ø 1,200 mm

Maximum diameter of
improvement: 5.0 m

Improved soil
Ø 1,200 mm

10

ANNUAL REPORT 2016

ANNUAL REPORT 201611

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Japan’s Biggest-Class Drill Machine:

Lightweight Type Is Also Lined Up:

EinBand Drill

NETIS No. CB-9900007-V• Features 3 times the torque and 2.5 times the feeding strengthcompared to conventional trenchers.
• Offers high drilling capacity to cope with large-diameter, deep anchoringworks.
• Achieves high-precision drilling on hard rocks and boulders.

Casting of Piles in Narrow Spaces:

Large Diameter, High-Strength Expand Diameter
Type Anchor

Casting Piles with High Bearing Capacity
under Diversified Conditions• Achieves high pull-out resistance using a large-diameter anchor.
• Offers an adjustable anchor length via high fixation even on soft ground.

• Offers a casting method for piles of lessthan Ø350 mm.
• Makes casting possible at narrow sites(e.g., mountainous places, slopes andindoor places).
• Features a lineup of the anchor combination
type in addition to the pile type.

Splits Anchor Method

Soldier Pile
Panel Wall Method

Rotary Percussion Drill that Enables
Large-Diameter and Deep Drilling

Firmly Fixable on Soft Ground:

Target Design Comparison Technology

Earth Retaining Wall Method that Combines
Soldier Piles with Concrete Panels• Makes widening road width or recovery from a roadside collapse
possible with small soil cutting volume.
• Provides optional self-supporting type (wall height up to 4 m) and the
combined use with shoring (wall height up to 10 m).
• Includes availability for a wall height of more than 12 m when using
lightweight materials at the back embankment.
Conventional Type

Small Diameter Pile Method

Bit opens.

Enlarge-diameter drillingwith the opened bit.

Lightweight TypeØ80

Staple Building Foundation:

4,86

Ordinary trencher

0 mm

Applications of the Splits Anchor

New ACE Method

2,380 mm

Re-Born Pile Method• Cuts and removes existingunderground piles and/or
structures with two cutting blades.
• Uses a circumferential
all-casing drill.
• Makes secure backfilling possible.

0mm

EinBand Drill

Removal of Existing Piles:

Splits Anchor

Earth Drilling Bell Pile Method• Maximum design strength of concrete: 60 N/mm
• Maximum diameter of the bell pile unit (shaft diameter of 2.2 m).
2

In case of a close siteboundary
Site boundary

Anchorbody

Conventional Anchor

Cutting blade

Site boundary

Building Anchor Technology

Bell pile bucket

Bearing
stratum

Bearing
stratum

Bearing
stratum

Bearing
stratum• Prevents lifting and/or fallingof buildings• Acquired the certification of
The Building Center of Japan

In case of a deep
bearing stratum

Diameter expansion bit

Re-Born Pile Method

Soldier Pile Panel Wall Method

Soldier Pile Panel
Wall Method(combined use withground anchor)

Ø2.2 m

Cutting blade

Splits Anchor Method
Splits Anchor Method

Riprap Layer
New ACE Method
Drilling by the
EinBand Drill

12

ANNUAL REPORT 2016

Ø4.8 mSmall Diameter Pile
Ground Anchor

Building Anchor Method

Ø1,000‒1,500 mm

Ø65‒350 mm
ANNUAL REPORT 201613

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Maintenance and Renovation
Method and Technology
NITTOC specializes in slope related technique which accumulates a brilliant achievement.
Today in this aging of social infrastructure century,
we developed our own diagnostic techniques as well as repair method for the existing slopes,
we also established a control system that can be coordinates in maintenance work totally.

New ReSP Method
NETIS No. QS-110014-V

Life Elongation of Concrete Structures:

Target Design Comparison Technology

Repair/Reinforcement Method on Aged
Shotcrete Slopes

Repair of Concrete Structures Using 100% Inorganic
High-Performance Materials• Keeps existing mortar shotcrete without shaving off existing shotcrete.
• Sprays organic-fiber-reinforced mortar shotcrete.
• Ensures stable spraying using a general-purpose,
wet-type spray machine.
• Adheres the former and new shotcrete surfaces with shear bolts.

• Uses surface-coating materials that have excellent strength, durability
and tracking ability.
• Achieves excellent cost performance without using anylarge machinery
Standard coating thickness: 2 mm or more
Compression strength: 57 N/mm2

Pumping distance (hose is extendable vertically)
Shotcrete spraying machine: 100 m ± 45 m
Pump: 200 m ± 60 m

In addition, we have developed special materials for long distance pumping,

Advantage Method

high strength and introduced in heavy environment,
mountain area or long distance tunnel for headrace channel.

Before the worktion)Soundnessevaluation divisionB(minor decline
in soundness)

Pressure
receiving
plate

Slope
frame

Spraying

Example of Countermeasure Work

Reinforcement of grounds with slope
Spraying

Pressure
receivingSoundnessplate
evaluation division

Slope
frame

B
(minor decline
in soundness)

Crack sealing, Grout filling work,
filling work

Countermeasures depending on actual changes
Removal ofloose portions

Life elongation of structuresD(remarkable Cross-section
declinerepairin soundness)
Preventive
maintenance:

Thickening work andcross-section repair

Ground reinforcement work,
void filling work
(Parfait Grout Method)
Ground anchor work +Pressure receiving plate work

Existing shotcrete

Diagnosis of the Soundness of Aged Shotcrete Slope:

Slope Doctor• The diagnosis is mainly based on non-destructive investigations
combined with several relevant surveys.
• We propose an optimum design for each project by reflecting social
needs on the results of obsolescence diagnosis.
Analysis method: thermal infrared radiation imaging
method, flexural oscillation method, coring method(combined use depending on conditions)

Cross-section repair

E(dangerous)

Boulder

In addition,

Surface coating work andimpregnation work

m
0c
.5
rox
p
Ap

Aged Shotcrete Slope Diagnosis System

Grouting in cracks

Repair and reinforcement work of shotcrete slopes(New ReSP Method)

Surface coating worka)

• Dividing slope structures into “Ground surface structures” and “Grounds with slope,” we propose appropriate countermeasures for both categories,
depending on their respective soundness.

Life Elongation Method for Slope Structures

are

por

Life Elongation Method for Slope Structures

Repair of ground surface structures

ed

und
(So

her

eat

(W

Preventive Maintenance and Management of Social Infrastructure:

Surface coating(to restrict salt or
freezing damage)
HiSP Method for Mortar
Shotcrete at elevated places

Kiro Fukeru Method
for consolidation

Kiro Fukeru Method forthe repair of a long headracetunnel by shotcrete spraying

New ReSP Method for the repair/
reinforcement of shotcrete slopes

Slope Doctor as a shotcrete
slope diagnosis system

Void

Parfait Grout Method forfilling the void behindthe structure

Waterway

14

ANNUAL REPORT 2016

Parfait Grout Method for fillingthe void behind the structure

Advantage Method for theprotection of a concrete surface

ANNUAL REPORT 201615

Advantage
of Nittoc

Our Business
field

For
Stakeholders

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Overseas
Deployment

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Long-Distance Mortar Shotcrete:

Void/Cavity Filling Method:

NETIS No. HR-140019-A

NETIS No. KT-090052-V

Mortar Shotcrete is Possible at a Rate of
18 N/mm2 or more to a Destination of 1 km DistantHigh-Quality Plastic Grout Filling Method

Kiro Fukeru Method

Parfait Grout Method• Attains high applicability in a water environment (of standing water).
• Features automatic control of the flow rate and pressure by the
COGMA System.
• Offers four basic mixture variations and special mixtures depending on
the pumping distance, desired strength and specific gravity• Makes mortar shotcrete possible for a long distance using
special materials.
• Stabilizes mortar quality via the electronic control of the flow rate ofmortar and hardening accelerator by the COGMA system.
Pumping distance: 1,000 m (with a hose extension)
Design strength: 18 N/mm2 or more

Pumping distance: Approximately up to 2,000 m(differs depending on the mixture variation)
Design strength: 1.5–24 N/mm2

Mortar Shotcrete at Elevated Places:

HiSP Method

Pumping Shotcrete System
Combined with Air Pumping• Makes shotcrete possible for a long distanceand at elevated places.
• Ensures stable quality and high strength due toa low level of separation of materials.
• Compact plant equipment for the shotcrete
operation.
Pumping distance: 700 m (horizontal feed only)
300 m (in case the difference inelevation between the hoseand the pump is 160 m)
Design strength: 18 N/mm2 or more

Example of Construction
Antifriction Hose
Thick Paste
Condition at the
Air Pumping Part

Hose for the Hardening Accelerator

Hardening
Accelerator+
Air Hose

COGMA System
NITTOC’s original control
system to systematicallycalculate and control theflow rates of mixed mortarmaterials and hardening
accelerator.

Grout Pump
Air Hose for theHardening Accelerator

Air Hose for the Mortar Pumping

Airing Tube

Taper Tube
Concrete
Pump
High-Pressure
Resistant Hose

Compressor
Generator

Receiver
Tank

Concrete Tube
Boulder

HiSP Method for Mortar
Shotcrete at elevated places

Kiro Fukeru Method
for consolidation

Kiro Fukeru Method forthe repair of a long headracetunnel by shotcrete spraying

New ReSP Method for the repair/
reinforcement of shotcrete slopes

Slope Doctor as a shotcrete
slope diagnosis system

Void

Parfait Grout Method forfilling the void behindthe structure

Waterway

16

ANNUAL REPORT 2016

Parfait Grout Method for fillingthe void behind the structure

Advantage Method for theprotection of a concrete surface

ANNUAL REPORT 201617

Advantage
of Nittoc

Fairs Where We Plan to Exhibit
and Our Award-Winning History

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Overseas Deployment

Overseas Deployment

Fiscal 2015: Schedule of Fairs Where We Plan to Exhibit
NITTOC considers various technology fairs and exhibitions as ideal venues to showcase NITTOC’s original technology.
At such events, NITTOC can directly pitch to potential orderers, consultants and other interested parties and provide an
opportunity for its engineering sales team to promote the adoption of its new construction methods and/or technologies.
We proactively exhibit our technologies at the technology fairs held in various regions in Japan. We will continuously present
our technologies at the fairs to be held throughout Japan in the current fiscal year.
No.

Name of Construction Technology Fair

Organizer

Venue

PeriodTechnology Presented

1

E Tohoku ’15

EE Tohoku Executive Committee

Yume Messe Miyagi

June 3 (Wed.) and June 4 (Thurs.)

New ReSP Method, Soldier Pile Panel Wall
Method, and WinBLADE Method

2

Infrastructure Inspection and Maintenance
Exhibition

Japan Management Association

Tokyo Big Sight

July 22 (Wed.) through July 24 (Fri.)New ReSP Method, Slope Doctor, etc.

3

FUKUI CONSTRUCTION TECHNOLOGY FAIRCONSTRUCTION TECHNOLOGY FAIR
Executive Committee

FUKUIKEN SANGYO KAIKAN

Sept. 2 (Wed.) and Sept. 3 (Thurs.)—

450th Japan National Conference on
Geotechnical Engineering

The Japanese Geotechnical Society

Hokkaido University of Science

Sept. 1 (Tues.) through Sept. 3 (Thurs.)—

5

Kyushu Construction Technology Forum2015 in Fukuoka

Kyushu Construction Technology
Forum Executive Committee

Fukuoka International Congress
CenterOct. 5 (Mon.) and Oct. 6 (Tues.)

New ReSP Method, Geofiber Method, etc.

6Construction Fair Hokuriku in Kanazawa

Construction Fair Hokuriku in
Kanazawa Executive Committee

Ishikawa Industrial Exhibition
Hall

Oct. 16 (Fri.) and Oct. 17 (Sat.)New ReSP Method, WinBLADE Method, etc.

7Construction Technology Fair in Chubu

Ministry of Land, Infrastructure,
Transport and Tourism, Chubu
Regional Development Bureau, etc.

Fukiage Hall

Oct. 21 (Wed.) and Oct. 22 (Thurs.)

New ReSP Method, Licos, Aki-Mos, etc.

8Construction Technology Expo 2015 Kinki

Kinki Construction Association, etc.

MyDome Osaka

Oct. 28 (Wed.) and Oct. 29 (Thurs.)

Geofiber Method, WinBLADE Method, etc.

9

Presentation Conference of the International
Society for Soil Mechanics and GeotechnicalEngineering in Fukuoka

International Society for Soil
Mechanics and GeotechnicalEngineering (ISSMGE)

Fukuoka International Congress
Center

Nov. 9 (Mon.) through Nov. 12 (Thurs.)—

10

Highway Techno Fair

EXPRESS HIGHWAY RESEARCHFOUNDATIONTokyo Big Sight

Nov. 25 (Wed.) and Nov. 26 (Thurs.)

11

Construction Technology Forum 2015 inHiroshima

Construction Technology Forum
Executive Committee

Hiroshima Prefectural Industrial
Exhibition Hall

Nov. 27 (Fri.) and Nov. 28 (Sat.)

Licos, Aki-Mos, New ReSP Method, etc.
—

Our Award-Winning History
The Japan Society of Civil Engineers publicly recognizes engineers who have excellent achievements in the field of bridge andsteel structural engineering with the Tanaka Award. The Company’s works have been awarded twice in the past. We would
like to introduce the works for which the Tanaka Award was honored.

Our works for which the Tanaka Award was honored by the Japan Society of Civil Engineers:

Fudo Ohashi Bridge(former Yamba Dam
Lake No. 2 Bridge)
in fiscal 2010

Shin-Toyo Bridgein fiscal 2007
Clients:18

Local governments of Adachi-ku and Kita-ku, Tokyo, andCentral Tokyo Branch Office, Urban Renaissance Agency
Designer:
NIPPON ENGINEERING CONSULTANTS CO., LTD.
Constructors:
Joint Venture of KAWADA INDUSTRIES, INC., IHI
Corporation and JFE Engineering Corporation; SHIMAMURA
CO., LTD.; and NITTOC CONSTRUCTION CO., LTD.
Location:
Connecting 34, Shinden 3-chome, Adachi-ku, Tokyo,
and 15, Toshima 6-chome, Kita-ku, Tokyo
Structure format: (Superstructure) Steel-structured, simple box girder +Composite arch bridge (steel floor slab)(Substructure) (skeleton) Reverse T-type bridge abutment,(foundation) Steel pipe pile by the inner
excavation method
Bridge length:105.0 mSpan length:102.7 mClient:Photo credit : Japan Society of civil Engineers

Photo credit : Japan Society of civil Engineers

ANNUAL REPORT 2016

Ministry of Land, Infrastructure, Transport and Tourism, Kanto
Regional Development Bureau
Ministry of Land, Infrastructure, Transport and Tourism, Kanto
Designers:
Regional Development Bureau; CTI Engineering Co., Ltd.
KAWADA CONSTRUCTION CO., LTD., Construction Joint Venture ofConstructors:
GST, KOYAMA KENSETSU KOGYO Co., Ltd., NISSAN RINKAI
Construction Co., Ltd., and NITTOC CONSTRUCTION CO., LTD.
Connecting Oaza Hayashi and Kawarayu, Naganohara-machi,
Location:
Agatsuma-gun, Gunma
Structure format: PC Five-span continuous steel-concrete compound truss extradosed
bridgeSuperstructure: A1: Reverse T-type bridge abutment—caisson pile
A2: Reverse T-type bridge abutment—spread foundation
P1: Normal strength (24N) RC pier—caisson pile
P2–P4: High strength (40N) RC pier—caisson pile
Substructure:
Bridge length/Span length: 590.0 m

Overseas Deployment
The Republic of Indonesia has a population of over 240 million and continues to record high economic growth. However,the social infrastructure is not sufficiently maintained or improved as presented by the everyday traffic congestion and thefrequent shortages of electricity.
As part of its growth strategy, the Company intends to acquire orders for infrastructure works in Indonesia because of its
high economic growth. Our overseas deployment will not be limited to Indonesia but will be extended to infrastructure
works in the growing Southeast Asia region.

About Overseas Construction Projects
Since the Jakarta Indonesia Representative Office was establishedin 2012, we have made preparations to establish a subsidiary while
concurrently undertaking construction projects. Through a trial-anderror process, we have achieved solid construction performance
jointly with local staff and workers despite differences in customs
and business practices between Japan and Indonesia. Aggressively
engaged in the development of infrastructure in Indonesia, we willfurther contribute to the improvement of infrastructure not only inhigh-growth Indonesia but also throughout Southeast Asia
Construction of Jakarta Mass Rapid Transit Project

ANNUAL REPORT 201619

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Overseas Deployment

Introduction of Overseas Construction 1
Construction of Jakarta
Mass Rapid Transit Project
Tremendous traffic congestion occurs routinely on major roads
in Jakarta as a chronic phenomenon. To address this serious traffic issue,
Indonesia’s first high-speed railway is now under construction.
NITTOC is committed to participating in the construction works of thisrailway project.
Regarding the Jakarta MRT Project including Indonesia’s first shield

construction work, SOWJ Joint Venture (SHIMIZU CORPORATION,OBAYASHI CORPORATION, WIJAYA KARYA and Jaya Konstruksi) and
SMCC-HK Joint Venture (Sumitomo Mitsui Construction Company and
HUTAMA KARYA) received orders for the underground sections of theconstruction project. NITTOC has executed the ground improvement forprotection of the pit mouths of the shield starting shaft and the shieldarrival shaft (chemical solution grouting method), as well as the anchoring
work of makeshift earth retaining wall following open-cut works and theground improvement of the defective parts of continuous walls (chemicalsolution grouting method), in association with the construction of thestation house.

Orderer:
PT. Mass Rapid Transit Jakarta
Description of the work: Protection of the pit mouth of the shield arrival
shaft, protection of the defective parts ofcontinuous walls of the station house(chemical solution grouting work)
Grouting volume:1,521,478 L
Description of work:
Protection of the pit mouths of the shieldstarting/arrival shaft, protection of the defective
parts of continuous walls of the station house(chemical solution grouting work)
Grouting volume:544,852 L

20

ANNUAL REPORT 2016

Introduction of Overseas Construction 2
Indonesia

Construction of Floodway
Ciliwung River ProjectIndonesia

In Indonesia, floods occur almost every year. The Ciliwung river that flows into Jakarta, the capital, often floods during
heavy rainfall. Flood control is indispensable to ensure the safety of the city. NITTOC is engaged in the construction
works to control such floods.

The order for this construction project was received by an Indonesian national constructor (WIJAYA KARYA), which
undertook the jacking work to connect underground floodways of an inside diameter of 3,500 mm. As the sagging
of several water supply pipes was detected after the jacking pipe passed under existing water supply pipes during
construction, the Company was assigned to conduct the countermeasure work and implemented the ground
improvement work (chemical solution grouting method).

Orderer:

DKI JAKARTA(Special Capital City District of Jakarta)
Description of the work: Chemical solution grouting to protect watersupply pipes (a countermeasure against
sagging), standby operation for possible
grouting of chemical agents when the jacking
pipe reaches the arrival shaft and back-filling
grouting after the jacking is completed, inassociation with the jacking work of an inside
diameter of 3,500 mm as part of flooding
countermeasures.

ANNUAL REPORT 201621

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Overseas Deployment

Overseas Deployment (subsidiary in Indonesia)

Feedback from Local Employees

The Company resolved to establish a joint venture with PT PANCA DUTA PRAKARSA, which will undertake the construction
business in Indonesia, and both companies entered into a joint venture agreement in October 2015, according to which
PT NITTOC CONSTRUCTION INDONESIA was established in March 2016.
The Company will conduct aggressive order-receiving activity through PT NITTOC CONSTRUCTION INDONESIA,
the newly established consolidated subsidiary, to obtain orders for specialized works such as slope and ground
improvement related to infrastructure in Indonesia.

Outline of the Joint Venture

Anto Togatorop

Trade namePT NITTOC CONSTRUCTION INDONESIA

Representative

Yasunobu Okumiya

Location

South Jakarta City, Republic of Indonesia

Date of operational start

April 2016

Description of business

Construction business in Indonesia

Fiscal year-end

March 31

CapitalIndonesian Rupiah (IDR) 51,000 million(Approximately JPY 413 million)
Note: Calculated at an exchange rate of
1 rupiah = 0.0081 yen

Composition of shareholders

NITTOC CONSTRUCTION CO., LTD.: 65%
PT PANCA DUTA PRAKARSA: 35%

Affiliation:

Jakarta Indonesia
Representative Office
Nationality: Indonesian

Maudy Maori
Affiliation:

Jakarta Indonesia
Representative Office
Nationality: Indonesian

Web site of PT NITTOC CONSTRUCTION INDONESIA

http://www.nittoc-id.co.id/

Maftuha Paisol
Affiliation:

Jakarta Indonesia
Representative Office
Nationality: Indonesian22

ANNUAL REPORT 2016

I joined NITTOC CONSTRUCTION
in November 2014. NITTOCCONSTRUCTION is my first job with aconstruction company.
In January 2015, I was dispatched to the
Headquarters in Japan for training.
At the training, I learned about theaccounting of construction companies,
which I had not understood well sincejoining NITTOC. The training lecture waseasy to understand, and I was able tolearn from the ground up. I thought thelecturer at that training was the best I
have ever experienced. Through thetraining experience, I found that theaccounting of construction companies isreally interesting.
We can learn two things at NITTOC.
First, I can upgrade my Japaneselanguage skills while working. Second,
I will improve my professional skills in thefields of accounting, financial affairs andtax affairs, which are my primary areas of
responsibility.
In the future, I would like to study hard to
upgrade my business skills and contributeto the corporate growth of NITTOC in
Indonesia.

I joined NITTOC CONSTRUCTION in
June 2014.
When I joined, there were only two
Japanese staff and myself in the local
office. At present, the office has about
20 employees including Japanese andIndonesian staff.
My job duties are secretariat and generalaffairs. I am always taking on new tasks.
In addition, I feel the way of executing
duties is different between Japanand Indonesia and that is sometimes
troublesome. Fortunately, however, I

received training about my duties inJapan and currently receive guidancefrom superiors and senior staff.
A local subsidiary was established in
March 2016, and the number of ourconstruction works has been increasing.
I would like to do my best to help thecompany expand.

I joined in August 2015 and went toJapan to learn about Japanese personnel
administration practices. Thanks toconsiderable support from the General
Affairs Department of the Headquarters,
I wish to continue to receive guidanceand encouragement in the fields of
personnel administration and international
business.
I became friends with many colleagues
at the Headquarters during the training
session. They warmly welcomed me
despite my different cultural background.

I learned about the labor environment at
the Headquarters through the training. As
the Headquarters staff were all favorable
to me, I experienced many splendid daysin Japan.
Based on knowledge and experience I
gained through the training in Japan, I
would like to work harder so that I cancontribute to the expansion of NITTOC’s
business in Indonesia.

ANNUAL REPORT 201623

Advantage
of Nittoc

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Landscape Conservation Technology ofCultural Property

Environmental Responsibility

Environmental
Responsibility
Environmental
PolicyFor
Stakeholders

Landscape Conservation Technology for
Cultural Properties
Our landscape conservation technology helps to restore the landscape while protecting the security of valuable cultural properties
and historical sites.
environmental symbiosis society for earth biological including
humans.
• Promote all activities about waste reduction,
increase recycling rate, resources saving, energy saving,

NITTOC has general power with that specializes in <Disasterecosystem conservation, landscape conservation andPrevention and Environmental Conservation>, <Urban

environmental friendly products utilization.

Regeneration> and <Maintenance and Renovation>,• Comply with environment related laws and regulations,listed in one of the management philosophy of contributing

agreements, customer and industry requirements, actively fulfill

to the society. Technology Division establishes the followings

social responsibility for environmental protection.

issue as our environmental policy based on our management• Education for personnel of Technology Division to improve

philosophy.

environmental conservation awareness.

Kiyomizu-dera Temple (Kyoto)
The slope of the Kiyomizu-dera, a World Heritage site, collapsed due to the heavy rain caused by Typhoon Man-yi in
September 2013.
In 2014 through 2015, the collapsed slope was reinforced by ground reinforcement work and ground anchor work,and covered with reinforced soil using the Geofiber Method. Plants will grow at the site and the beautiful landscape full ofgreenery will return soon.

• Expose the implementation of environmental policy and• Technology Division recognizes global environment

environmental conservation activities as needed in order toconservation as one of the business activities. We are aim

cooperate with customers and the community.

to reduce the load of global environment by improving theenvironmental management system.
• Effective utilization of limited resources and reduce the load ofenvironment to be a resource recycling society. We promote
the research, development, design and study to construct an

Slope seen from the stage of Kiyomizu-dera Temple

Utsunomiya Castle Site Park (Tochigi)
Technology Division Environmental Management System Network

General Manager of Technology Division

Technology Development GroupOperation and Management related to Research,
Business Development and Quality Control

Environmental
Management Officer

Greening Work
Laboratory

Environmental Committee

Saitama Laboratory

Utsunomiya Castle Site Park is maintained as an importantbasis for the revitalization of central downtown areas of thecity and urban disaster prevention, with partial restoration of
the former Utsunomiya Castle, which is faithful to historicalfacts, as a main feature.
The Geofiber Method was adopted for the restoration of theearthworks, and the beautiful green earthworks now havebeen maintained for 10 years since the restoration work wascompleted.

Slope under the Koyasu-no-tou, a National Important Cultural Property

Kashima Jingu Shrine (Ibaraki)
The slope of Kashima Jingu Shrine located in Kashima-shi,
Ibaraki, collapsed due to the mudslides caused by Typhoon
Wipha in October 2013. The Geofiber Method was adopted
for the restoration work of the collapsed slope.
The restoration work was completed without fouling theMitarashi Pond, located at the side of the slope, because no
cement was used.
Before the work

Before the work

Environment Committee Bureau
Technology Business GroupOperation and Management related to
Design and Investigation BusinessResources Management GroupOperation and Management related toAdministration Business

24

ANNUAL REPORT 2016

After the work

After the work

ANNUAL REPORT 201625

Advantage
of Nittoc

Contribution to Society

Tohoku Branch: Katsurahama Swimming Beach Cleanup Activity (Akita, June 2015)
Together with several member corporations of the Akita Prefecture Geofiber Association,
we participated in a cleanup activity of the Katsurahama Swimming Beach in Akita-shi.
A total of 30 persons including four employees of the branch participated. We cleaned up
peripheral roads and the parking lots, and mowed weeds by bringing in a grass cutter. The activity
was completed by loading the waste on a truck. As in the previous year, we cleaned up various
places prior to the opening of the swimming beach so that swimmers could comfortably enjoy
pleasant time during the estival swimming season. We intend to continue participating in thisactivity in the coming years.

Tohoku Branch: Seaside Disaster-Preventive Forest Afforestation and Maintenance Activity (by volunteers) (Miyagi, April 2015)
Several employees of the Tohoku Branch cooperated in a maintenance activity for the Sennen
Kibo-no-Oka forest, where we planted seedlings in 2014. The participants in this activity wererecruited by the Tohoku Regional Forest Office. The activity was conducted at the site of seaside
disaster-preventive forest in Natori-shi, Miyagi. Nine employee participants conducted themaintenance activity, which involved the replanting of new seedlings instead of dead ones within anafforestation area of 0.1 hectare (1,000 m2). We will continue to be committed to the afforestationof the disaster-preventive forest and carefully monitor the subsequent growth of the forest.

Tokyo Branch: Repair of a Bus Stop (Tochigi, December 2015)
Several employees repaired the Kamikuriyama Bus Stop located near the construction site.
1) Rust removal of the signs and application of rust-resistant paint
Activity
2) Cleanup of the bus shelter
content:
3) Picking up trash and mowing the weeds in the neighboring area
Our repair activity seems to have pleased the bus company and nearby inhabitants. We believethat such activities contributed to the local community.

Hokuriku Branch: ECHIGO Tanada Supporter (Niigata, June through November, 2015)
The ECHIGO Tanada Supporter (“Tanada” means terrace paddy field.) is a group established by
prefectural government employees of the Department of Agricultural Land, Niigata, to protect
the landscape and topographical functions of terrace paddy fields jointly with local residents.
Sympathizing with the group’s purpose, volunteer employees of the branch cooperated in mowing
and cleanup activities at several terrace paddy fields in Niigata Prefecture. They participated six
times in such activities from June to November 2015.
1) Mowing near small reservoirs: 5 times
Activity2) Dredging of waterways and mowing: twice
content:3) Mowing from farm roads and paths between rice fields: 5 times

Hiroshima Branch: Sand Erosion Control Facility Inspection Activity by the Yamaguchi Prefecture
Disaster Prevention and Sand Control Volunteers Association (Yamaguchi, November 2015)
To prevent a landslide disaster, several employees participated in inspecting landslide black spots(steep slopes and landslide prevention areas) and sand erosion control facilities in Yamaguchi
Prefecture in cooperation with the Sand Control Section, Department of Civil Engineering andArchitecture, Yamaguchi.
Approximately 20 participants including persons affiliated with the Association were divided into
several groups of 3-5 persons each to inspect the current conditions of the targeted sand control
dams located in Yamaguchi Prefecture. Our inspection activity included finding cracks and waterleakage points and the exposure of reinforcing bars. As a result, several deteriorated parts withpotential danger were discovered from our inspection.

26

ANNUAL REPORT 2016

Our Business
field

For
Stakeholders

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Corporate GovernanceCorporate GovernanceI. Basic Policy on Corporate Governance
The Company attaches great importance to the interests of all stakeholders supporting its corporate activities and recognizes
the importance of corporate ethics that comply not only with various legal norms but also with decency and common sense.
At the same time, the Company’s basic policy on corporate governance is determined to be the establishment of a corporate
organization that can contribute to the development of social infrastructure by raising transparency and the soundness ofmanagement through efforts such as sustainable, corporate development; the acquisition of social credibility; and the eliminationof illegal payoffs to antisocial groups.

Reason for Adopting the Corporate Governance System
Based on the aforementioned basic policy on corporate governance, we have adopted the corporate governance systemdescribed below with the aim of thorough risk management and compliance and improved internal control with regard to swift
responses to changes in the business environment, as well as to the decision making, execution and supervision of business
operations.

Summary of Our Corporate Governance System
NITTOC’s corporate governance system
Other affiliated company:
ASO CORPORATION

Customers
Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

Consolidated
subsidiary:
Midori Industries Co., Ltd.

Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

Consolidated subsidiary:
Yamaguchi EarthEngineering Co., Ltd.
Consolidated subsidiary:
Shimane EarthEngineering Co., Ltd.

Undertaking
construction

Undertaking
construction

Consolidated
subsidiary:
PT NITTOC
CONSTRUCTION
INDONESIA

Undertaking
construction

Undertaking
construction

Undertaking
construction

NITTOC CONSTRUCTION CO., LTD.
Construction business

II. Status of Development of the Internal Control System
To raise the confidence of society and its corporate value, the Company addresses the “reinforcement of internal control(compliance and risk management)” as the most important management task. The Company considers the management are
responsible for establishment of the system for ensuring appropriate business operations, and has stipulated the “Basic Policy onan Internal Control System.”
The “Basic Policy for Establishing an Internal Control System” refers to the overall commitment regarding such establishment of
an internal control system by the Management Strategy Division, whereas the Audit Department is in charge of monitoring thestatus of the development and operational status of internal controls.
To establish the system for ensuring appropriate financial reporting and monitor such financial reporting, the Internal Control
Department is formed under the Management Strategy Division.
The “Basic Policy on an Internal Control System” is regularly reviewed by the Corporate Planning Department,
Management Strategy Division, and revised by resolution of the Board of Directors, as required.

ANNUAL REPORT 201627

Advantage
of Nittoc

Financial Highlights

Our Business
field

For
Stakeholders

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Contribution toSociety
Corporate
GovernanceOperating income∙Ratio to Net Sales

Net sales

Operating income

Special Civil Engineering
General Civil Engineering
General Building
OthersFinancial Highlights

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Overseas
Deployment(Millions of yen)

(Millions of yen)

80,0004,000

Corporate
Overview and
Major Construction
Methods

Financial
Highlights

4,198

Corporate
History

Ordinary income∙Ratio to Net Sales

Ratio to Net Sales

6.9%

Management
Members

Ordinary income

Ratio to Net Sales(%)(Millions of yen)

(%)

7.0

4,000

7.0
3,905
6.4%

6.0%

6.0%

6.0

Thousands of
U.S. dollars

Millions of yen

2012

2013

2014

2015

2016

2016

¥52,079¥53,247¥57,264¥60,703¥57,638$511,522

5.3%

60,70360,00052,0793,000

57,63857,264

5.1%

3,000

53,247

4.6%

5.0

3,035

6.0

3.431
3,431

3,465

5.0
2,904
4.2%

Net sales

3.9%

2,438

4.0

4.0
3.6%

Ordinary income

1,877

2,249

2,904

3,905

3,431

30,45740,000

2,000

2,000

2,026

1,877

3.0

Profit attributable to owners of parent

1,823

3,532

1,663

1,664

2,110

18,729Comprehensive income

1,838

3,632

1,715

1,694

1,894

16,813

Net assets

12,04415,02916,37018,116

19,781

175,556

Total assets

36,576

39,111

41,04742,30640,385

358,408

Net cash provided by (used in)operating activities

723

4,933

1,011

2,435

△630

5,592

Net cash provided by (used in)investing activities

(202)

(206)

(189)

(277)

(1,209)(10,734)

Net cash provided by (used in)financing activities(936)(1,756)

(678)

(775)

(△1,592)(△14,133)

1,000

0
2012

2013

2014

2015

12,277

13,698

12,681

112,545

2012

Net income∙Ratio to Net Sales

4,000

0

2016

2013

2014

2015

1.0

0

2016

Interest-bearing debt

0
2012

2013

6.7%

2014

2015

Total net assets(%)(Millions of yen)

(Millions of yen)

7.0

6,000

20,000Civil engineering

7.4%

Private sector

20.6%

38.4%

1.2%

3,000

5.0

24.0%

3.7%
2,000

3.5%

74.9%

Slope
protection

43.1%

12.1%
7.4%

40

15,02910,000

3.0

20
2,000

2,000

1,600

2.0
1,000

5,000

1,200
1.0

10

1,000

Dam foundation

4.8%

0

0
2012

ANNUAL REPORT 2016

18,116

3,086

1,664

Maintenanceandrenovation

Pile foundation

2,110

19,781

12,044

1,663(in net sales)
Government
andpublic sector

28

2.9%
2.7%

50

30

4.0
3,000

1,823

Share by work type(ratios in net salesof completed
construction contracts)

32.9%

4,000

(%)

16,37015,0003,552

Groundimprovement

Public-Private
proportion

39.9%

5,000

OthersEquity Ratio

48.6%
42.8%

6.0

2016

Total net assets∙Equity Ratio

Ratio to Net Sales(Millions of yen)

12,132

2.0
1,000

1.0

0

9,163

3.0

2.0
20,000Net income

Cash and cash equivalents
at end of period

2,249

2013

2014

2015

2016

0

0
2012

2013

2014

2015

2016

0

0
2012

2013

2014

2015

2016

ANNUAL REPORT 201629

5. Consolidated Financial Statements(1) Consolidated Balance Sheets
March 31, 2015 and 2016

Millions of yen
2015
2016

Millions of yen
2015
2016
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Electronically recorded monetary claims－
operatingMerchandise and finished goods
Real estate for sale
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other

Thousands of
U.S.Dollars(*)
2016

13,698

12,681

112,545

16,702

15,578138,250－

1,917

17,018

20
0
1,618
148
591
681

30
0
1,664
152
411
997

274
0
14,775
1,355
3,653
8,850

*4

*4

Allowance for doubtful accounts

(192)

(14)

(129)

Total current assets

33,27033,420296,594

Non-current assets
Property, plant and equipment829*1

Machinery, vehicles, tools, furniture andfixtures, net
Land
Leased assets, net
Construction in progress

963

*1

446

*1

4,560
40
1

*1

2

*3

*1

*1

8,552

471

4,180

2,788
50
24

24,743
450
221

2

18

Other, net*3

Total property, plant and equipment

5,879

4,300

38,167

223

205

1,827

831
1,593
539

664
1,284
531

5,899
11,4004,716

Allowance for doubtful accounts

(31)

(22)

(196)

Total investments and other assets

2,933

2,458

21,819

9,036

6,965

61,81442,30640,385

358,408

Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other

Total non-current assets
Total assets*Refer to the note “Basis of Presenting Consolidated Financial Statements.”

ANNUAL REPORT 2016

－

1

－

12,175

10,547

93,608

400

－

－

2,487

2,509

22,272

20
1,491

23
133

210
1,187

77

105

935

139
555

1,242
4,926

*4

89
543

*4

Other

2,086

2,413

21,420Total current liabilities

19,372

16,429145,804

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability

800
34
134
3,831

－
34
75
4,013

－
306
671
35,621

16

50

449

4,817

4,174

37,048Other

Buildings and structures, net

30

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts and other
Short-term loans payable
Advances received on uncompleted construction
contracts
Lease obligations
Income taxes payable
Provision for warranties for completed
construction
Provision for loss on construction contracts
Provision for bonuses

Thousands of
U.S.Dollars(*)
2016

Total non-current liabilities
Total liabilities

24,18920,603

182,852

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings

6,052
2,022
10,5006,052
2,022
12,22853,713
17,946
108,520

Treasury shares

(551)

(552)

(4,901)

Total shareholders’ equity

18,02419,750175,279

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

282

171

1,520

－

(6)

(55)

Remeasurements of defined benefit plans

(190)

(284)

(2,523)91(119)（1,058）

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

－

150

1,335

18,116

19,781

175,556

42,30640,385

358,408*Refer to the note “Basis of Presenting Consolidated Financial Statements.”－

2－
ANNUAL REPORT 201631

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income[Consolidated Statements of Income]Fiscal Years Ended March 31, 2015 and 2016
Millions of yen
2015
2016
Net sales
Net sales of completed construction contracts

Thousands of
U.S.Dollars(*)
2016

60,57857,479510,109

125

159

1,413
511,522

Remeasurements of defined benefit plans, net of tax

60,703

57,638Millions of yen
2015
2016
1,664
2,109

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Sales on other businessTotal net sales[Consolidated Statements of Comprehensive Income]Fiscal Years Ended March 31, 2015 and 2016

Total other comprehensive income

Cost of sales
Cost of sales of completed construction contracts

48,018426,149

40

63

565

50,84848,082426,714

9,770

9,460

83,960

84

95

847

9,854

9,556

84,807

6,090

54,049

4,198

3,465

30,758

0
16
22

0
19
26

2
173
235

Other

19

12

106

Total non-operating income

60

58

519

38
51
30
173

19
37
17

169
334
158

－

－

Other

59

17

157

Total non-operating expenses

353

92

819

Ordinary income

3,905

3,431

30,457Extraordinary income
Gain on sales of non-current assets*4*1

50,808

Cost of sales on other businessTotal cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses

5,656

*2,3

Operating income
Non-operating income
Interest income
Dividend income
Patent income

Non-operating expenses
Interest expenses
Guarantee commission
Factoring fee for receivables
Provision of allowance for doubtful accounts

*1

*2,3

5

46

Gain on sales of investment securities

9

－

－

Total extraordinary income

41

5

46

9

86

Extraordinary losses
Loss on retirement of non-current assets

32

2

*5

Impairment loss

*5

24

218

981

34

305

Profit before income taxes

2,965

3,402

30,199

Income taxes - current

1,699

770

6,840

Income taxes - deferred

(397)

522

4,640

Total income taxes

1,301

1,293

11,480

Profit

1,664

2,109

18,718

－

(1)

(10)

1,664

2,110

18,729*6

Total extraordinary losses

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

978

*4

*6

*1

104

Thousands of
U.S.Dollars(*)
2016
18,718

－

(111)
(9)

(989)
(85)

(73)

(93)

(829)

(214)

(1,905)30*1Comprehensive income

1,694

1,894

16,813Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

1,694

1,899

16,854

－

(4)

(40)

*Refer to the note “Basis of Presenting Consolidated Financial Statements.”*Refer to the note “Basis of Presenting Consolidated Financial Statements.”

32

ANNUAL REPORT 2016

－

3

－

－

4

－

ANNUAL REPORT 201633

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2015

Fiscal year ended March 31, 2016
(Millions of yen)
(Millions of yen)

Shareholders’ equity

Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

6,052

Retained earnings

2,022

Cumulative effects of changes
in accounting policies

Total shareholders’equityTreasury shares

8,774

Capital stock

(540)

358

16,308358

Balance at beginning of current
period

6,052

6,052

2,022

9,133

(540)

16,667

Changes of items during period
Dividends of surplus

(340)

(340)

Profit attributable to owners ofparent

1,664

1,664

Purchase of treasury shares
Disposal of treasury shares

(10)

(10)

0

0

0

Change of scope of
consolidation

43

43

Net changes of items otherthan shareholders’ equity
Total changes of items during
period

－

0

1,367

(10)

1,356

Balance at end of current period

6,052

2,022

10,500(551)

18,024Retained earnings

2,022

Total shareholders’equityTreasury shares

10,500(551)

Cumulative effects of changes
in accounting policies

18,024－

Restated balance

Restated balance

Capital surplus

6,052

2,022

10,500(551)

18,024

Changes of items during period
Dividends of surplus

(383)

(383)

Profit attributable to owners ofparent

2,110

2,110

Purchase of treasury shares

(1)

(1)

Disposal of treasury shares
Change of scope of
consolidation
Net changes of items otherthan shareholders’ equity
Total changes of items during
period

－

－

1,727

(1)

1,726

Balance at end of current period

6,052

2,022

12,228(552)

19,750

Accumulated other comprehensive income
Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period178

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans
(116)

－

Total
accumulated
othercomprehensive
income61

Non-controllinginterests

Total net assets－

Cumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifference on
available-forsale securities

16,370
358

178

(116)

－

61

－

16,729Changes of items during period
Dividends of surplus(340)

Profit attributable to ownersof parent

1,664

Purchase of treasury shares(10)

Disposal of treasury shares

0Change of scope of
consolidation
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

43
104

－

(73)

30

－

30

104

－

(73)

30

－

1,387

282

－

(190)

91

－

18,116－34

ANNUAL REPORT 2016

5－

Balance at beginning of current
period282

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

(190)

91

－

Non-controllinginterests

Total net assets－

Cumulative effects of changes
in accounting policies
Restated balance

18,116
－

282

(190)

－

91

－

18,116

Changes of items during period
Dividends of surplus(383)

Profit attributable to owners ofparent2,110

Purchase of treasury shares(1)

Disposal of treasury shares－

Change of scope of
consolidation
Net changes of items otherthan shareholders’ equity
Total changes of items during
period

(111)

(6)

(93)

(211)

150

(60)

(111)

(6)

(93)

(211)

150

1,665

Balance at end of current period

171

(6)

(284)

(119)

150

19,781－－

6－
ANNUAL REPORT 201635

Fiscal year ended March 31, 2016
(Thousands of U.S.Dollars(*))(4) Consolidated Statements of Cash Flows
Fiscal Years Ended March 31, 2015 and 2016

Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

53,713Retained earnings

17,946

93,191

Total shareholders’equityTreasury shares(4,889)Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities

159,961

Cumulative effects of changes
in accounting policies
Restated balance

Millions of yen
2015
2016

53,713

17,946

93,191(4,889)159,961

Changes of items during period
Dividends of surplus(3,400)(3,400)

Profit attributable to owners ofparent18,72918,729Purchase of treasury shares

(11)

(11)

Disposal of treasury shares
Change of scope of
consolidation
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period--

15,329(11)

15,31753,713

17,946

108,520(4,901)

175,279

Impairment loss
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in costs on uncompleted
construction contracts
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received on
uncompleted construction contracts
Increase (decrease) in accrued consumption taxes

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period2,509

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income(1,693)816-

Non-controllinginterests

Total net assets-

Cumulative effects of changes
in accounting policies
Restated balance

160,777
-

2,509

-

(1,693)816-

160,777

Changes of items during period
Dividends of surplus(3,400)

Profit attributable to owners ofparent18,729Purchase of treasury shares(11)

Disposal of treasury shares-

Change of scope of
consolidation
Net changes of items otherthan shareholders’ equity
Total changes of items during
period

(989)

(55)

(829)

(1,874)

1,335

(528)

(989)

(55)

(829)

(1,874)

1,335

14,778

Balance at end of current period

1,520

(55)

(2,523)(1,058)

1,335

175,556-

Thousands of
U.S.Dollars(*)
2016

2,965
257
204

3,402
276
(186)

30,1992,457(1,655)

59

27

247

20

50

443

64
38
(32)
2
(17)
38
3
(9)

11
54
(5)
9
(19)
19
3

103
479
(46)
85
(176)
169
34

978

－
24

－
218

(45)

(793)

(7,041)

(102)

(45)

(407)

(466)

(191)

(1,695)(2,471)(1,627)(14,447)

657

21

193

5

507

4,505

Increase (decrease) in other liabilities

1,131

(311)

（2,767）

Subtotal

3,282

1,228

10,900Interest and dividend income received
Interest expenses paid

17
(38)

19
(19)

176
(169)

Income taxes paid

(826)

(1,859)(16,499)

Net cash provided by (used in) operating activities

2,435

(630)

(5,592)

(3)
(353)
35

(3)
(349)
1,576

（3,097）
13,995

185

－

－

(54)
19
1
(114)
6

(11)

(98)

－
0
(45)
45

－
5
(406)
403

(1)

(3)

（32）

(277)

1,209

10,734

Cash flows from investing activities
Purchase of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Advances received on sale of property, plant andequipment
Purchase of intangible assets
Proceeds from sales of investment securities
Collection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other, net
Net cash provided by (used in) investing activities(34)*Refer to the note “Basis of Presenting Consolidated Financial Statements.”－

36

ANNUAL REPORT 2016

7

－

－

8

－
ANNUAL REPORT 201637

Millions of yen
2015
2016
Cash flows from financing activities
Repayments of long-term loans payable
Proceeds from share issuance to non-controllingshareholders
Repayments of lease obligations
Proceeds from disposal of treasury shares
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period*1*Refer to the note “Basis of Presenting Consolidated Financial Statements.”

Thousands of
U.S.Dollars(*)
2016

(400)

(1,200)(10,649)

－

12

113

(25)
0
(10)

(20)

(183)

－
(1)

－
(11)

(340)

(383)

(3,401)(775)(1,592)(14,133)

(3)

(3)

(34)

1,379

(1,017)(9,025)

12,277

13,698

121,571

41－－

12,681

112,545

13,698*1【Notes】(Basis of Presenting Consolidated Financial Statements)
The accompanying consolidated financial statements have been prepared from the accounts maintained by
NITTOC CONSTRUCTION CO., LTD. (the “Company”) and its consolidated subsidiaries in accordance withthe provisions set forth in the Financial Instruments and Exchange Law and its related accounting regulations,and in conformity with accounting principles and practices generally accepted in Japan, which are different incertain respects as to the application and disclosure requirements of International Financial Reporting Standards.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which theCompany is incorporated and mainly operates. The translation of Japanese yen amounts into U.S. dollar
amounts is included solely for the convenience of readers outside Japan and has been made at the rate of¥112.68 to US$1.00, the approximate rate of exchange on March 31, 2016. Such translation should not be
construed as a representation that the Japanese yen amounts could be converted into U.S. dollars at that or any
other rate.
(Going-Concern Assumption)
Not applicable(Significant Items on Basis for Preparation of Consolidated Financial Statements)
1. Scope of Consolidation
Number of consolidated subsidiaries: 4
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Shimane Earth Engineering Co., Ltd.
PT NITTOC CONSTRUCTION INDONESIA(Change in the scope of consolidation)
The Company established PT NITTOC CONSTRUCTION INDONESIA in Indonesia in March 2016 and has
included it in the scope of consolidation.
2. Application of the Equity Method
Not applicable
3. Fiscal Years, etc. of Consolidated Subsidiaries
The year-end date of the fiscal year of the consolidated subsidiaries is March 31, which is the same as theconsolidated balance sheet date.
4. Standards on Accounting Procedures(1) Valuation standard and valuation method for significant assets
1) Securities
・ Held-to-maturity debt securities
Amortized cost method (by the straight-line method)・ Available-for-sale securities
Securities with market quotations:
Valued at fair market value as of the consolidated fiscal year-end date (All changes in valuationdifference are included directly in net assets. Cost of securities sold is determined by the moving-averagemethod).
Securities without market quotations:
Valued at cost based on the moving-average method.
2) Inventories
・ MerchandiseStated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets
have been calculated by writing down the book value based on the decline in profitability.)
・ Real estate for saleStated at cost using the specific identification method (The figures shown in the consolidated balance－

38

ANNUAL REPORT 2016

－

9

－

10

－
ANNUAL REPORT 201639

sheets have been calculated by writing down the book value based on the decline in profitability.)
・ Costs on uncompleted construction contracts
Stated at cost using the specific identification method
・ Raw materials and supplies
Stated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets
have been calculated by writing down the book value based on the decline in profitability.)(2) Depreciation methods of major depreciable assets
1) Property, plant and equipment (excluding leased assets): The declining-balance method is applied.
However, the straight-line method is adopted for buildings (excluding facilities attached to buildings) acquiredon or after April 1, 1998, and for machinery equipment. The useful lives and the residual value are based onstandards in accordance with methods stipulated in the Corporation Tax Act.
2) Intangible assets (excluding leased assets): The straight-line method is applied.
The useful lives are based on standards in accordance with methods stipulated in the Corporation Tax Act.
Computer software for internal use is amortized by the straight-line method over the estimated internal usefullife (five years).
3) Leased assets
The same depreciation method as that applied to non-current assets owned by the Company is adopted forleased assets of finance lease transactions where ownership of leased assets is transferred to the lessee.
The straight-line method, in which the lease period is utilized as the useful life assuming the residual value iszero, is adopted for the leased assets of finance lease transactions without transfer of ownership.

5. Consolidated Financial Statements(1) Consolidated Balance Sheets
March 31, 2015 and 2016
Millions of yen
2015
2016
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Electronically recorded monetary claims－
operatingMerchandise and finished goods
Real estate for sale
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other

13,698

12,681

112,545

16,702

15,578138,250－

1,917

17,018

20
0
1,618
148
591
681

30
0
1,664
152
411
997

274
0
14,775
1,355
3,653
8,850

*4

*4

Allowance for doubtful accounts

(192)

(14)

(129)

Total current assets

33,27033,420296,594(3) Accounting procedure for deferred assets
Deferred organization expenses and business commencement expenses are fully charged to income as incurred.

Non-current assets
Property, plant and equipment(4) Recognition standards for significant reserves
1) Allowance for doubtful accounts
The allowance for doubtful accounts is recorded at an amount of estimated uncollectible receivables based on
past bad debt experience for general receivables, and by individually considering the collectibility for certain
doubtful receivables including loans with potential default to prepare for possible loan losses including notes
and accounts receivable - trade and loans receivable.
2) Provision for warranties for completed construction
The provision for warranties for completed construction is recorded at an amount based on the estimatedcompensation amount regarding the net sales of completed construction contracts for the consolidated fiscal
year under review to prepare for expenses such as warranty against defects relative to completed construction
works.
3) Provision for loss on construction contracts
The provision for loss on construction contracts is recorded at an estimated loss amount regarding
construction works on hand at the end of the consolidated fiscal year under review for which loss is expected,
and for which the amount can be reasonably estimated, to prepare for possible losses from construction
contracts that the Group has received orders thereof.
4) Provision for bonuses
The provision for bonuses is recorded at an amount of possible disbursement corresponding to theconsolidated fiscal year under review based on the estimated amount to provide for bonuses to employees.

Buildings and structures, net(5) Accounting procedure for retirement benefits
1) Method of allocating the projected retirement benefits to periods
In calculating the projected benefit obligation, the benefit formula basis is used to allocate the projected
retirement benefits to periods up to the end of the consolidated fiscal year under review.
2) Amortization method for actuarial gains/losses and prior service cost
Actuarial gains or losses are amortized for the pro-rata amount computed by the straight-line method over acertain period (10 years) within the average remaining service period of employees at the time of recognition,commencing from the consolidated fiscal year following the recognition.
The prior service cost is amortized by the straight-line method over a certain period (10 years) within the
average remaining service period of employees at the time of recognition, commencing from the consolidated
fiscal year following the recognition.

Thousands of
U.S.Dollars(*)
2016

Machinery, vehicles, tools, furniture andfixtures, net
Land
Leased assets, net
Construction in progress

*1

829

*1

963

8,552

*1

446

*1

471

4,180

4,560
40
1

*1

2,788
50
24

24,743
450
221

2

*3

2

18

*1

Other, net*3

Total property, plant and equipment

5,879

4,300

38,167

223

205

1,827

831
1,593
539

664
1,284
531

5,899
11,4004,716

Allowance for doubtful accounts

(31)

(22)

(196)

Total investments and other assets

2,933

2,458

21,819

9,036

6,965

61,81442,30640,385

358,408

Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other

Total non-current assets
Total assets*Refer to the note “Basis of Presenting Consolidated Financial Statements.”

3) Adoption of the simplified method for small and medium-sized entities
For the calculation of net defined benefit liability and retirement benefit expenses, the consolidated
40

ANNUAL REPORT 2016

－

11

－

－

1

－

ANNUAL REPORT 201641

(2) The Company guarantees housing funds, the loans payable of its employees borrowed from banks, inaccordance with the Housing Loan Financing Rules.
As of March 31
2015
2016
2016
¥33 million
Standards for Tax-Effect Accounting” (Business Accounting Council) regarding the recoverability of deferred
tax assets.
(Review on the treatment of the requirements for the classification and amounts of deferred tax assets)(i) Treatment for the entities that do not meet the requirements of any of the five categories(ii) Requirements for Categories 2 and 3(iii) Treatment of unscheduled deductible temporary differences for the entities in Category 2(iv) Treatment for the period in which a reasonable estimate is possible for the taxable income before temporary
differences for the entities in Category 3(v) Treatment for the entities that satisfy Category 4 requirements but are applicable to Category 2 or 3
(2) Scheduled date of adoption
To be applied from the beginning of the consolidated fiscal year starting on April 1, 2016, or later(3) Impact of adopting this accounting standard
The impact of applying the “Implementation Guidance on Recoverability of Deferred Tax Assets” on the
consolidated financial statements is currently being evaluated.
(Change in Presentation Method)(Consolidated Statements of Cash Flows)“Proceeds from collection of guarantee deposits,” which was included in “Other, net” under “Cash flows frominvesting activities” for the previous consolidated fiscal year, have been separately presented effective from thisconsolidated fiscal year due to increased importance in terms of amount. To reflect this change in presentation
method, the consolidated financial statements for the previous consolidated fiscal year have been reclassified.
As a result, ¥5 million ($51 thousand), which was presented as a component of “Other, net” under “Cash flows
from investing activities,” is reclassified as ¥6 million ($62 thousand) in “Proceeds from collection of guarantee
deposits” and negative ¥1 million ($10 thousand) as a component of “Other, net.”(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment
As of March 31
2015

2016

¥7,343 million

2016¥6,494 million

2 Contingent liabilities(1) The Company guarantees loans payable for the purchase of its properties for sale.
As of March 31
2015
2016
9 properties¥21 million

8 properties¥17 million$57,640 thousand

2016$151 thousand(2) The Company guarantees housing funds, the loans payable of its employees borrowed from banks, inaccordance with the Housing Loan Financing Rules.
As of March 31
2015
2016
2016
¥33 million¥23 million$210 thousand¥23 million$210 thousand(3) Litigation-related
Fiscal year ended March 31, 2015 (As of March 31, 2015)
The Company received a filing of damage suit (claimed amount of ¥277 million) regarding directors’ retirement
benefits as of September 5, 2013, from several former company officers. The case is pending in court at present.
The Company considers that said claim for damages by the former company officers has no foundation, andlegal advisors to the Company concur with the Company. Accordingly, the Company intends to challenge theplaintiffs on this case.
Fiscal year ended March 31, 2016 (As of March 31, 2016)
Not applicable*3 Reduction entry
The amount of reduction entry, which is subtracted from the acquisition prices of property, plant and equipment
due to acceptance of a state subsidy, and the breakdown thereof were as follows:
As of March 31
2015
Other

2016
¥2 million

2016¥2 million$18 thousand*4 Presentation of inventories and provision for loss on construction contracts
Fiscal year ended March 31, 2015 (As of March 31, 2015)
Both the costs on uncompleted construction contracts and the provision for loss on construction contracts,
which are related to construction contracts that are expected to generate losses, are presented without offsetting
each other.
Of the costs on uncompleted construction contracts relating to construction contracts that are expected togenerate losses, the amount corresponding to the provision for loss on construction contracts is ¥89 million.
Fiscal year ended March 31, 2016 (As of March 31, 2016)
Both the costs on uncompleted construction contracts and the provision for loss on construction contracts,
which are related to construction contracts that are expected to generate losses, are presented without offsetting
each other.
Of the costs on uncompleted construction contracts relating to construction contracts that are expected togenerate losses, the amount corresponding to the provision for loss on construction contracts is ¥60 million($537 thousand).
5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fundprocurement of working capital.
－ 14 －The unused balance of the borrowings relative to the commitment line agreements as of March 31 was asfollows:
Thousands ofMillions of yen
U.S.Dollars
As of March 31
2015
2016
2016
Total amount of the
2,200
2,200
19,524
commitment line
Balance of executed
－
－
－
loans
Unused balance
2,200
2,200
19,524(3) Litigation-related
Fiscal year ended March 31, 2015 (As of March 31, 2015)
The Company received a filing of damage suit (claimed amount of ¥277 million) regarding directors’ retirement
benefits as of September 5, 2013, from several former company officers. The case is pending in court at present.
The Company considers that said claim for damages by the former company officers has no foundation, andlegal advisors to the Company concur with the Company. Accordingly, the Company intends to challenge theplaintiffs on this case.

42

Fiscal year ended March 31, 2016 (As of March 31, 2016)
Not applicable
ANNUAL REPORT 2016

*3 Reduction entry

－

13

－

ANNUAL REPORT 2016

43

(Consolidated Statements of Income)*1 Provision for loss on construction contracts included in the cost of sales of completed construction contracts
Fiscal year ended March 31
2015

2016
¥84 million

2016¥50 million$443 thousand*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:
Thousands of
U.S.Dollars
Fiscal year ended March 31
Millions of yen
2015
2016
2016
Employees’ salaries and
2,636
2,685
23,832
allowances
Provision for bonuses
220
231
2,050
Retirement benefit expenses
324
293
2,606
Provision of allowance for30
875
doubtful accounts*3 Research and development expenses included in general and administrative expenses
Fiscal year ended March 31
2015

2016
¥162 million

2016¥188 million$1,669 thousand

Fiscal year ended March 31
2015

2016
¥32 million

2016¥5 million$46 thousand*5 The breakdown of loss on retirement of non-current assets was as follows:
Fiscal year ended March 31
Buildings and structures
Machinery, vehicles, tools,
furniture and fixtures
Total

2015

9

Thousands of
U.S.Dollars
2016
82

0

0

3

2

9

86

Millions of yen
2

2016

Impairment loss
Use
Idle assets
Assets planned
to be sold

Type

Location

Building, structuresand fixtures

Chuo-ku, Tokyo

198

Land

Chuo-ku, Tokyo

780

Millionsof yen(Grouping method)
The Company has, in principle, grouped business-use assets by department/branch which are the minimum
profit-reporting unit and grouped shared assets such as the head office by the entire business as a profitreporting unit. Meanwhile, the Company has separately grouped individual assets such as assets planned tobe sold and idle assets.
(Breakdown of impairment loss recognized)*4 The breakdown of gain on sales of non-current assets was as follows:

Machinery, vehicles, tools,
furniture and fixtures*6 Impairment loss
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
For the fiscal year ended March 31, 2015, the Company reported impairment loss for the following asset groups.

Millions of yen
197
0

Building and structures
Machinery, vehicles, tools,
furniture and fixtures
Land
Total

780
978

(Background)
As the Akashi-cho Suboffice Building became unused and idle, the Company examined the possibility ofutilizing said non-current assets, and then a resolution for disposing of and selling said assets was adopted by
the Board of Directors. The Company reported impairment loss for said non-current assets, because therecoverable amount and substantial disposal value of said assets became lower than its book value.
(Calculation method of recoverable amounts)
Recoverable amounts for assets planned to be sold are measured by using the net selling value. The net
selling value is determined based on the successful bidding price, etc., via competitive bidding. Recoverable
amounts for idle assets are evaluated by using the memorandum value by taking into account their substantial
disposal value.
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
For the fiscal year ended March 31, 2016, the Company reported impairment loss for the following asset groups.
Impairment loss
Use
Idle assets

Type

Location

Land, buildings andstructures

Nikko-shi,
Tochigi

Millions of yen
24

Thousands of
U.S.Dollars
218(Grouping method)
The Company has, in principle, grouped business-use assets by department/branch which are the minimum
profit-reporting unit and grouped shared assets such as the head office by the entire business as a profitreporting unit. Meanwhile, the Company has separately grouped individual assets such as assets planned tobe sold and idle assets.

44

ANNUAL REPORT 2016

－

16

－

－

17

－

ANNUAL REPORT 201645

(Breakdown of impairment loss recognized)
Building and structures
Land
Total

(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
1. Class and total number of issued shares and of treasury shares

Thousands of
U.S.Dollars
21
197
218

Millions of yen
2
22
24

Fiscal year ended March 31,
2015(Calculation method of recoverable amounts)
Recoverable amounts for buildings and structures are evaluated by using the memorandum value, whereas
the recoverable amount for land is based on the appraised value of the real estate.

(Consolidated Statements of Comprehensive Income)*1 Amounts of reclassification and the tax-effect equivalent in relation to “Other comprehensive income”
Thousands ofMillions of yen
U.S.Dollars
Fiscal year ended March 31
2015
2016
2016
Valuation difference on available-forsale securities
Accrued in the fiscal year
149
(170)
(1,515)
Amount of reclassification
(8)
－
－
140
(170)
(1,515)
Before tax-effect adjustment
(36)
59
526
Amount of tax-effect equivalent
Valuation difference on available104
(111)
(989)
for-sale securities

Remeasurements of defined benefit
plans, net of tax
Accrued in the fiscal year
Amount of reclassification
Before tax-effect adjustment
Amount of tax-effect equivalentRemeasurements of defined
benefit plans, net of tax
Total other comprehensive
income46

ANNUAL REPORT 2016

－

－

(9)

(85)

－

(9)

(85)

(95)
(4)
(100)
26

(128)
0
(127)
34

(1,138)
5(1,133)
303

(73)

(93)

(829)

30

(214)

(1,905)18－

Increase in numberof shares

Decrease in numberof shares

Number of shares atthe endCommon shares

43,919,291－－

43,919,291

Total

43,919,291－－

43,919,291

Common shares

1,329,104

19,881137

1,348,848

Total

1,329,104

19,881137

1,348,848

Issued shares(Background)
As the Imaichi Materials Center became unused and idle, the Company examined the possibility of utilizing
said non-current assets, and reported impairment loss due to the low possibility of its reutilization.

Foreign currency translation
adjustment
Accrued in the fiscal year
Foreign currency translation
adjustment

Number of shares atthe beginning

Treasury shares

Notes:
1. The increase in number of treasury shares represents the increase from the purchase of less-than-oneunit shares and the purchase from shareholders whose address could not be determined.
2. The decrease in number of treasury shares represents the decrease due to sales of the Company’s own
shares in response to the request for additional purchase of less-than-one-unit shares by shareholders.
2. Dividends(1) Amount of dividends paid
Class of
Total
Source of
Resolution
sharesdividends dividends
AnnualShareholders’Common¥340 Retained
Meeting onsharesmillion earnings
June 27, 2014

Dividend
per share

Record date

¥8.00 March 31, 2014

Effective dateJune 30, 2014

(2) Dividends for which the record date is during the consolidated fiscal year under review but for which
the effective date is after the end of the consolidated fiscal year under review
Class of
Total
Source ofDividend
Resolution
Record date
Effective datesharesdividends dividends
per share
AnnualShareholders’Common¥383 Retained¥9.00 March 31, 2015 June 26, 2015
Meeting onsharesmillion earnings
June 25, 2015

－

20

－

ANNUAL REPORT 201647

Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
1. Class and total number of issued shares and of treasury sharesFiscal year ended March 31,
2016

Number of shares atthe beginning

Increase in numberof shares

Decrease in numberof shares

Number of shares atthe endCommon shares

43,919,291－－

43,919,291

Total

43,919,291－－

43,919,291

Issued shares

Treasury shares
Common shares

1,348,848

2,556

－

1,351,404

Total

1,348,848

2,556

－

1,351,404

Note: The increase in number of treasury shares represents the increase from the purchase of less-than-oneunit shares.
2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesTotal dividends

AnnualShareholders’Meeting on
June 25, 2015

Commonshares¥383 million Retained($3,401 thousand) earnings

Source ofdividends

Dividend
per share

Record date

(Lease Transactions)(Lessee)Finance lease transactions that transfer ownership
1. Details of leased assets(1) Property, plant and equipment
Consist of machinery and equipment.
2. Depreciation method of leased assets
As described in the “(Significant Items on Basis for Preparation of Consolidated Financial Statements)
4. Standards on Accounting Procedures (2) Depreciation methods of major depreciable assets.”
Finance lease transactions that do not transfer ownership
1. Details of leased assets(1) Property, plant and equipment
Mainly consist of machinery and equipment.
(2) Intangible assets
Software
2. Depreciation method of leased assets
As described in the “(Significant Items on Basis for Preparation of Consolidated Financial Statements)
4. Standards on Accounting Procedures (2) Depreciation methods of major depreciable assets.”

Effective date

¥9.00 March 31, 2015 June 26, 2015

(2) Dividends for which the record date is during the consolidated fiscal year under review but for which
the effective date is after the end of the consolidated fiscal year under review
Class of
Source of Dividend
Resolution
Total dividends
Record date Effective datesharesdividends per share
AnnualShareholders’Meeting on
June 24, 2016

Commonshares¥425 million Retained($3,777 thousand) earnings¥10.00 March 31, 2016 June 27, 2016

(Consolidated Statements of Cash Flows)*1 A reconciliation of the balance of cash and cash equivalents in the consolidated statements of cash flows to cash
and deposits included in the consolidated balance sheets

Fiscal year ended March 31
Cash and deposits
Cash and cash equivalents

2015

2016

13,698
13,698

12,681
12,681－48

ANNUAL REPORT 2016

Thousands of
U.S.Dollars

Millions of yen

21

2016
112,545
112,545

－
－

22

－

ANNUAL REPORT 2016

49

(Financial Instruments)
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group procures working capital, which is necessary to pursue business purposes, in the form ofborrowings from banks and invests temporary surplus funds in short-term deposits, etc. The Group utilizes
derivatives within the limit of actual demand and not for speculative purposes. In the consolidated fiscal
year under review, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, which are tradereceivables, are exposed to the credit risk of the respective counterparties. Investment securities are mainly
stocks of companies with which the Company holds business relationships, and are exposed to market pricefluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally
entail the concentrated due date for payments and are exposed to liquidity risk.
The loans payable as working capital are exposed to market price fluctuation risk (interest rate risk).
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction
contracts and other regarding main counterparties at the relevant departments/sections in accordancewith the Credit Exposure Management Rules and the Credit Management Manual. In addition to the
management of credit balances by counterparty, the Group works to early grasp and reduce recovery
concerns due to the aggravation of financial positions at the counterparties.
2) Management of market risk (market price fluctuation risk)
The Group regularly checks the current market value of shares included in the category of investment
securities and makes efforts to comprehend the financial positions of the issuers (counterparties) andcontinuously reviews the holding status of such investment securities by taking into account market
conditions and the relationship with the respective counterparties.
The Group strives to restrict the interest rate risk for the borrowings by appropriately and timely
managing the balance of borrowings. In the consolidated fiscal year under review, no derivativetransactions (interest-rate swaps) were utilized.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports
from the respective departments/sections. The department also manages liquidity risk with measures
such as the maintenance of liquidity on hand and entering into commitment line agreements with ourbanks.

2. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March
31, 2015, were as follows.
Financial instruments for which it is deemed extremely difficult to measure the market value are not includedin the table below. (Refer to Note 2.)(Millions of yen)
Carrying value
in the consolidated
Market value
Difference
balance sheets(1) Cash and deposits(2) Notes receivable, accounts
receivable from completed
construction contracts andother

13,698

13,698－16,702

16,702－(3) Investment securities
Available-for-sale securities

720

720

－

Total assets

31,121

31,121－

12,175

12,175

－

400

400

－

800

800

－

Total liabilities

13,375

13,375－Derivative transactions

－

－

－

(1) Notes payable, accounts
payable for construction
contracts and other(2) Short-term loans payable(3) Long-term loans payable

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivativetransactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction
contracts and otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
(3) Investment securities
The market value of investment securities is based on the prices listed at stock exchanges.
For details of securities by holding purpose, please refer to the notes titled “Securities.”
Liabilities(1) Notes payable, accounts payable for construction contracts and otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
(2) Short-term loans payable and (3) Long-term loans payable
The book values of these instruments are assumed as their market values because these loans
payable with variable interest rates sufficiently reflect the market interest rate within a short period
and the credit standing of the Company does not greatly differ after the execution of such loan
agreements.
Derivative transactions
The Group conducts no derivative transactions.

－50

ANNUAL REPORT 2016

－

23

－

24

－
ANNUAL REPORT 201651

2. Financial instruments for which it is deemed extremely difficult to measure the market value
Classification

Carrying value in the consolidated balance sheets

Available-for-sale securities¥110 million(unlisted stocks)
The above securities are not included in “(3) Investment securities” because they have no market
prices and it is deemed extremely difficult to measure their market values.
3. Redemption schedules for monetary receivables and securities with maturity dates after the
consolidated balance sheet date (March 31, 2015)(Millions of yen)Over one year Over five years
Withinand within five and within 10
Over 10 years
one year
years
years
Cash and deposits
Notes receivable,accounts receivable fromcompleted construction
contracts and other

13,698－－－16,702

－

－

－

－

－

－

－

30,400－－－Investment securities
Available-for-salesecurities withmaturity dates
Total

4. The repayment schedules for short-term and long-term loans payable and lease obligations are shownin the “Schedule of Loans Payable,” a consolidated supplementary statement.

52

ANNUAL REPORT 2016

－

25

－

Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group procures working capital, which is necessary to pursue business purposes, in the form ofborrowings from banks and invests temporary surplus funds in short-term deposits, etc. The Group utilizes
derivatives within the limit of actual demand and not for speculative purposes. In the consolidated fiscal
year under review, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts, electronically recordedmonetary claims－operating and other, which are trade receivables, are exposed to the credit risk of therespective counterparties. Investment securities are mainly stocks of companies with which the Company
holds business relationships, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally
entail the concentrated due date for payments and are exposed to liquidity risk.
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction
contracts, electronically recorded monetary claims－operating and other regarding main counterparties
at the relevant departments/sections in accordance with the Credit Exposure Management Rules and theCredit Management Manual. In addition to the management of credit balances by counterparty, theGroup works to early grasp and reduce recovery concerns due to the aggravation of financial positions at
the counterparties.
2) Management of market risk (market price fluctuation risk)
The Group regularly checks the current market value of shares included in the category of investment
securities and makes efforts to comprehend the financial positions of the issuers (counterparties) andcontinuously reviews the holding status of such investment securities by taking into account market
conditions and the relationship with the respective counterparties.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports
from the respective departments/sections. The department also manages liquidity risk with measures
such as the maintenance of liquidity on hand and entering into commitment line agreements with ourbanks.

－

26－

ANNUAL REPORT 201653

2. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March
31, 2016, were as follows.
Financial instruments for which it is deemed extremely difficult to measure the market value are not includedin the table below. (Refer to Note 2.)(Millions of yen)
Carrying value
in the consolidated
Market value
Difference
balance sheets(1) Cash and deposits(2) Notes receivable, accounts
receivable from completed
construction contracts,
electronically recordedmonetary claims–operating
and other

12,681

12,681－

17,495

17,495

－

553

553

－

Total assets

30,73130,731－(1) Notes payable, accounts
payable for construction
contracts and other

10,547

10,547－

Total liabilities

10,547

10,547－

Derivative transactions

－

－

－

(1) Cash and deposits(2) Notes receivable, accounts
receivable from completed
construction contracts,
electronically recordedmonetary claims–operating
and other(Thousands of U.S.Dollars)Market value

Liabilities(1) Notes payable, accounts payable for construction contracts and otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
Derivative transactions
The Group conducts no derivative transactions.
2. Financial instruments for which it is deemed extremely difficult to measure the market value(3) Investment securities
Available-for-sale securities

Carrying value
in the consolidatedbalance sheets(3) Investment securities
The market value of investment securities is based on the prices listed at stock exchanges.
For details of securities by holding purpose, please refer to the notes titled “Securities.”

Difference

112,545

112,545－

155,269

155,269－Classification

Carrying value in the consolidated balance sheets

Available-for-sale securities¥110 million$982 thousand(unlisted stocks)
The above securities are not included in “(3) Investment securities” because they have no market
prices and it is deemed extremely difficult to measure their market values.
3. Redemption schedules for monetary receivables and securities with maturity dates after the
consolidated balance sheet date (March 31, 2016)(Millions of yen)Over one year Over five years
Withinand within five and within 10
Over 10 years
one year
years
years
Cash and deposits

12,681－－－

Notes receivable,accounts receivable fromcompleted construction
contracts, electronicallyrecorded monetaryclaims–operating andother17,495

－

－

－

－

－

－

－

30,177－－－

Investment securities
Available-for-salesecurities withmaturity dates(3) Investment securities
Available-for-sale securities

4,916

4,916

－

Total assets

272,731

272,731－(1) Notes payable, accounts
payable for construction
contracts and other

93,60893,608－

Total liabilities

93,60893,608－Derivative transactions

－

－

－

Total

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivativetransactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction
contracts, electronically recorded monetary claims－operating and otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
54

ANNUAL REPORT 2016

－

27

－

－

28

－

ANNUAL REPORT 201655

Over one year
and within fiveyears

Withinone year
Cash and deposits
Notes receivable,accounts receivable fromcompleted construction
contracts, electronicallyrecorded monetaryclaims–operating andother112,545－

155,269－(Thousands of U.S.Dollars)Over five years
and within 10
Over 10 years
years
－

－

－

2. Available-for-sale securities (As of March 31, 2015)－(1) Securities with carrying
value in the consolidatedbalance sheets exceedingacquisition cost

Investment securities
－

－

－

－

267,814－－－

4. The repayment schedules for lease obligations are shown in the “Schedule of Loans Payable,” aconsolidated supplementary statement.

(Millions of yen)

Carrying value in the
consolidated balance
sheetsSharesAvailable-for-salesecurities withmaturity dates
Total(Securities)
Fiscal year ended March 31, 2015 (As of March 31, 2015)
1. Held-to-maturity debt securities (As of March 31, 2015)
Not applicable

Acquisition cost

Difference

720

302

417

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

720

302

417

0

0

0

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

Subtotal

0

0

0

Total

720

303

417

Bonds

Other
Subtotal(2) Securities with carrying
value in the consolidatedbalance sheets notexceeding acquisition
cost
Shares
Bonds

Other

Note: Shares for which it is deemed extremely difficult to measure the market value
Carrying value in the consolidated balance sheets

Classification

Millions of yen
Available-for-sale securities(unlisted stocks)

56

ANNUAL REPORT 2016

－

29

－

110

－

30

－

ANNUAL REPORT 201657

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2014 toMarch 31, 2015)(Millions of yen)Class

Sales amount

SharesTotal gains on sale
19

Total losses on sale
9

Fiscal year ended March 31, 2016 (As of March 31, 2016)
1. Held-to-maturity debt securities (As of March 31, 2016)
Not applicable
2. Available-for-sale securities (As of March 31, 2016)

－

Bonds
National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

Shares

－

－

－

Bonds

19

9

－

Other
Total

(1) Securities with carrying
value in the consolidatedbalance sheets exceedingacquisition cost

(Millions of yen)

Carrying value in the
consolidated balance
sheetsAcquisition cost

Difference

550

303

247

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

550

303

247

3

3

(0)

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

Subtotal

3

3

(0)

Total

553

307

246

Other
Subtotal(2) Securities with carrying
value in the consolidatedbalance sheets notexceeding acquisition
cost
Shares
Bonds

Other

Note: Shares for which it is deemed extremely difficult to measure the market value
Carrying value in the consolidated balance sheets

Classification

Millions of yen
Available-for-sale securities(unlisted stocks)

58

ANNUAL REPORT 2016

－

31

－

Thousands of U.S.Dollars
110

－

32

－

982

ANNUAL REPORT 201659

(1) Securities with carrying
value in the consolidatedbalance sheets exceedingacquisition cost(Thousands of U.S.Dollars)

Carrying value in the
consolidated balance
sheetsSharesAcquisition cost

Difference

4,887

2,690

2,197

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

4,887

2,690

2,197

Bonds

Other
Subtotal(2) Securities with carrying
value in the consolidatedbalance sheets notexceeding acquisition
cost
Shares(Retirement Benefits)
1. Outline of adopted employee retirement benefit plans
The Company and its consolidated subsidiaries have adopted unfunded retirement benefit plans to provide forretirement benefits for their employees. Half of the retirement benefit plans are defined benefit plans and theremaining portion are defined contribution plans.
The defined benefit plans are lump-sum severance payment plans to provide retirement benefits by means of apoint scheme based on service period.
In the defined contribution plans, the contribution is clearly sectionalized by individual and the pension benefit
amount is determined based on the total of the contributions and the return on plan assets thereof.
In addition to the above, the Company and its consolidated subsidiaries are affiliated with the multiemployer
plans of the Employees’ Pension Fund. As the rational computation of plan assets cannot be ensured for themultiemployer pension plans, accounting is processed in a similar manner as that for the defined contributionplans.
At the consolidated subsidiaries, net defined benefit liability and retirement benefit expenses are calculated by
the simplified method. They are included in the following relevant items because of their immateriality in the
consolidated financial statements.
2. Defined benefit plans(1) Reconciliation of the beginning/ending balance of projected benefit obligations
Fiscal year ended March 31
Beginning balance of projected
benefit obligations
Cumulative effects ofchanges in accounting
policies
Restated balance
Service cost
Interest costAccrued amount of actuarial
differences
Accrued amount of priorservice cost
Retirement benefits paid
Ending balance of projected
benefit obligations

Millions of yen
2015

2016

4,241

3,831

33,998

(557)

—

—

3,684
230
36

3,831
233
26

33,998
2,072
234

123

139

1,239

(28)

—

—

(215)

(216)

(1,923)

3,831

4,013

35,621

28

34

(5)

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

Subtotal

28

34

(5)

Total

4,916

2,724

2,191

(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicable

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2015 toMarch 31, 2016)
Not applicable

Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Not applicable

Bonds

Other

Thousands of
U.S.Dollars
2016(Derivative Transactions)Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
1. Derivatives for which hedge accounting is not applied
Not applicable as no derivative transactions are utilized.
2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
1. Derivatives for which hedge accounting is not applied
Not applicable as no derivative transactions are utilized.
2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.
60

ANNUAL REPORT 2016

－

33

－

－

35

－

ANNUAL REPORT 2016

61

(3) Reconciliation of the ending balance of projected benefit obligations and plan assets, and the net defined
benefit liability and the net defined benefit asset in the consolidated balance sheets
As of March 31
Projected benefit obligations
under unfunded plans
Net carrying value in the
consolidated balance sheets ofrelevant liabilities and assets
Net defined benefit liability
Net carrying value in the
consolidated balance sheets ofrelevant liabilities and assets

2015

Millions of yen

Thousands of
U.S.Dollars
2016

2016

3,831

4,013

35,621

3,831

4,013

35,621Service cost
Interest cost
Amortization of actuarial
differences
Amortization of prior service
cost
Retirement benefit expenses
relative to the defined benefit
plans

Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Not applicable(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)
As of March 31
2015
Discount rate

3,831

4,013

35,621

3,831

4,013

35,621(4) Retirement benefit expenses and the breakdown of the amounts thereof
Fiscal year ended March 31(7) Matters regarding plan assets
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicableThousands of
U.S.Dollars

Millions of yen
2015

2016

2016

228
36

233
26

2,072
234

2

9

82

(7)

(8)

(76)

260

260

2,312

(5) Remeasurements of defined benefit plans, net of tax
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined
benefit plans is as follows:
Thousands ofMillions of yen
U.S.Dollars
Fiscal year ended March 31
2015
2016
2016
Prior service cost
(7)
(8)
(76)
Actuarial differences
2(119)(1,056)
Total
(4)
(127)
(1,133)(6) Remeasurements of defined benefit plans (accumulated)
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined
benefit plans (accumulated) is as follows:
Thousands ofMillions of yen
U.S.Dollars
As of March 31
2015
2016
2016
Unrecognized prior service cost
58
49
442
Unrecognized actuarial
(340)
(459)
(4,078)differences
Total
(282)
(409)
(3,635)

0.69%

2016
0.35%

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contributionplans was ¥158 million for the fiscal year ended March 31, 2015, and ¥159 million ($1,414 thousand) for the
fiscal year ended March 31, 2016.
4. Multiemployer plans
The amount to be contributed under the multiemployer plans of the Japan Geotechnical Consultants Employees’
Pension Fund, of which the accounting is processed in the same manner as that for the defined contributionplans, was ¥349 million for the fiscal year ended March 31, 2015, and ¥283 million ($2,514 thousand) for the
fiscal year ended March 31, 2016.
(1) Most recent plan assets reserved under the multiemployer plans
As of March 31
Plan assets
Total of the actuarial liability
based on the pension financing
calculation and the minimum
liability reserves
Net amount2015
69,4692016
74,069Thousands of
U.S.Dollars
2016
657,339

73,202

76,919682,632(3,733)(2,850)(25,292)

Millions of yen(2) Ratio of the Group’s contribution to the multiemployer plans relative to the contributions to the overall
retirement benefit plans
Fiscal year ended March 31, 2015: 12.78%(As of March 31, 2014)
Fiscal year ended March 31, 2016: 13.06%(As of March 31, 2015)(3) Supplementary explanation
The major factors of the net amount in Item (1) above were the balance of the prior service liability(¥5,156 million for the fiscal year ended March 31, 2015, and ¥4,663 million ($41,382 thousand) for the
fiscal year ended March 31, 2016) and the general reserve (¥1,813 million ($16,089thousand) for the
fiscal year ended March 31, 2016), based on the pension financing calculation.
The amortization method for the prior service liability under the multiemployer plans is the principal andinterest equal amortization with a 20-year amortization period. The Group amortized the special
contribution (¥107 million for the fiscal year ended March 31, 2015, and ¥108 million ($960 thousand)for the fiscal year ended March 31, 2016), which may be appropriated for said amortization, in the
consolidated financial statements.
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.
(Stock Options)Not applicable－

62

ANNUAL REPORT 2016

36

－

－

37

－
ANNUAL REPORT 2016

63

(Tax-Effect Accounting)
1. Breakdown of significant components that caused deferred tax assets and liabilities

2. The breakdown of items causing the difference between the effective statutory tax rate and the effective income
tax rate after the adoption of tax-effect accounting
Fiscal year ended March 31

As of March 31
Deferred tax assets
Loss carried forward
Real estate for saleAccrued enterprise tax
Provision for bonuses
Allowance for doubtful accounts
Provision for warranties forcompleted construction
Provision for loss on construction
contracts
Non-current assets (Impairment
loss)
Defined contribution pension
benefits payable
Net defined benefit liability
Unrealized gains
Asset retirement obligation
Other
Subtotal of deferred tax assets
Valuation reserve
Total of deferred tax assets
Deferred tax liabilities
Valuation difference on availablefor-sale securities
Total of deferred tax liabilities
Net deferred tax assets

Millions of yen
2015
2016

Thousands of
U.S.Dollars
2016

—
4
131
207
75

13
4
14
197
11

116
40
124
1,755
100

25

32

288

29

43

383

338

21

190

41

4

35

1,238
45
—
131
2,270
(85)
2,184

1,229
40
10
154
1,777
(80)
1,696

10,912356
92
1,372
15,770(716)
15,053

(134)

(75)

(671)

(134)
2,049

(75)
1,620

(671)
14,382

Note: Net deferred tax assets for the fiscal year ended March 31, 2015 and for the fiscal year ended
March 31, 2016, are included in the following account items in the consolidated balance sheets.

Millions of yen
2015
2016
591
411
1,593
1,284
(134)
(75)

As of March 31
Current assets—Deferred tax assets
Non-current assets—Deferred tax assets
Non-current liabilities—Deferred tax liabilities

64

ANNUAL REPORT 2016

－

38

－

Thousands of
U.S.Dollars
2016
3,653
11,400(671)

2015

Effective statutory tax rate
(Reconciliation)
Non-deductible expenses such as entertainment
expenses
Per capita inhabitant tax
Exclusion from revenues such as dividend
incomeValuation reserve
Special deduction of income tax
Reduction of deferred tax assets at the balance
sheet date caused by change in income tax rate
Other
Effective income tax rate after the adoption oftax-effect accounting

35.6

2016
(%)

33.1

0.6

0.5

3.8

3.0

(0.1)

(0.0)

0.2
(2.1)
6.4

0.2
—
2.4

(0.5)

(1.2)

43.9

38.0

(%)

3. Revision to the amounts of deferred tax assets/liabilities due to the revision of the income tax rate
Following the enactment by the Diet on March 29, 2016, of the “Act on Partial Revision of the Income Tax Act,etc.” (Act No. 15, 2016), and the “Act on Partial Revision of the Local Tax Act, etc.” (Act No. 13, 2016), thecorporate income tax rate has been reduced effective from the fiscal year that begins on or after April 1, 2016.
In accordance with this change, the effective statutory tax rate, which is used to measure deferred tax assets anddeferred tax liabilities, will be reduced to 30.86% from the previous 32.30% for temporary differences that are
expected to be eliminated during the fiscal years commencing on April 1, 2016 and 2017, and to 30.62% for
temporary differences that are expected to be eliminated during the fiscal year commencing on April 1, 2018,
and subsequent fiscal years.
The impact of this change in the effective statutory tax rate was a decrease of ¥83 million ($741 thousand) in
deferred tax assets (after deducting the amount of deferred tax liabilities), increases of ¥80 million ($717
thousand) in income taxes－deferred, ¥4 million ($36 thousand) in valuation difference on available-for-salesecurities and negative ¥6 million ($61 thousand) in remeasurements of defined benefit plans.
(Asset Retirement Obligation)
End of fiscal year ended March 31, 2015 (As of March 31, 2015)
This information is omitted due to its immateriality.
End of fiscal year ended March 31, 2016 (As of March 31, 2016)
This information is omitted due to its immateriality.

－

39

－

ANNUAL REPORT 2016

65

(Segment Information, etc.)【Segment Information】
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, forwhich separate financial information is available, and which are subject to regular reviews and evaluation by
the Board of Directors in deciding the allocation of management resources and in assessing businessperformance.
The Group’s operations consist of the construction business as well as several other business activities such as
sales of merchandise and materials, and insurance agency. As these businesses are insignificant in terms of
information for disclosure and the sole reportable segment of the Group is the “Construction business,”segment information for these businesses is omitted.
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, forwhich separate financial information is available, and which are subject to regular reviews and evaluation by
the Board of Directors in deciding the allocation of management resources and in assessing businessperformance.
The Group’s operations consist of the construction business as well as several other business activities such as
sales of merchandise and materials, and insurance agency. As these businesses are insignificant in terms of
information for disclosure and the sole reportable segment of the Group is the “Construction business,”segment information for these businesses is omitted.
【Related Information】
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed
90% of the net sales on the consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the
consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90%of the amount of property, plant and equipment on the consolidated balance sheets.
3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% ormore of the net sales on the consolidated statements of income.
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed
90% of the net sales on the consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the
consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90%of the amount of property, plant and equipment on the consolidated balance sheets.
3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% ormore of the net sales on the consolidated statements of income.
－66

ANNUAL REPORT 201640－

【Information on Impairment Loss of Non-Current Assets by Reportable Segment】
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
The information is omitted as the reportable segment is solely the construction business.
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
The information is omitted as the reportable segment is solely the construction business.
【Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment】
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicable
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Not applicable【Information on Gain on Bargain Purchase by Reportable Segment】
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicable
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Not applicable【Related Party Information】
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Not applicable
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Not applicable(Per-Share Information)
Fiscal year ended March 31

2015

2016

Net assets per share¥425.56¥461.17($4.09)Basic earnings per share¥39.08¥49.58($0.44)

Diluted earnings per share

Diluted earnings per share is
not disclosed as no potential
shares exist.

Diluted earnings per share is not disclosed
as no potential shares exist.

Note: The basis for calculation of “Basic earnings per share” is as follows:
Fiscal year ended March 31
Basic earnings per share
Profit attributable to owners ofparentAmounts not attributable tocommon shareholders
Profit attributable to owners ofparent regarding commonsharesAverage numberof common(Thousands
shares during theof shares)
fiscal year
(Significant Subsequent Events)
Not applicable

2015

Millions of yen

Thousands of
U.S.Dollars
2016

2016

1,664

2,110

18,729

－

－

－

1,664

2,110

18,72942,582－

42,56941－
ANNUAL REPORT 2016675)【Consolidated Supplementary Statements】【Schedule of Bonds Payable】
Not applicable(2)【Other】
Quarterly data for the fiscal year ended March 31, 2016
Six months
Nine months
Fiscal year ended
Three months(From April 1, 2015 (From April 1, 2015 March 31, 2016
Cumulative periods(From April 1, 2015
to September 30,
to December 31, (From April 1, 2015
to June 30, 2015)
2015)
2015)
to March 31, 2016)【Schedule of Loans Payable】

Net sales (Millions of yen)

Beginning balance of the
fiscal year ended
March 31, 2016

Ending balance of the
fiscal year ended
March 31, 2016

Millionsof yenThousands of
U.S.Dollars

Millions Thousands of
U.S.Dollarsof yen

－

－

－

－

－

－

400

3,549

－

－

－

－

20

180

23

210

－

－

Accounting periods

800

7,099

－

－

－

－

Quarterly basic earnings
per share (Yen)

34

308

34

306

－

2017–2020

Other interest-bearing debt

－

－

－

－

－

－

Total

1,255

11,138

58

516

－

－

Classification

Short-term loans payable
Current portion of longterm loans payable
Current portion of leaseobligations
Long-term loans payable(excluding the current
portion of long-term loans
payable)Lease obligations(excluding the current
portion of leaseobligations)Averageinterest rate(%)

Repayment
deadline

Profit before income taxes(Millions of yen)
Profit attributable to ownersof parent(Millions of yen)
Basic earnings per share(Yen)

11,85925,55041,096

57,638

594

1,449

2,580

3,402

363

928

1,628

2,110

8.53

21.82

38.25

49.58

Second quarter
First quarter(From July 1, 2015
(From April 1, 2015
to September 30,
to June 30, 2015)
2015)

Third quarter(From October 1,
2015 to December
31, 2015)

Fourth quarter(From January 1,
2016 to March 31,
2016)

16.42

11.33

8.53

13.29

Notes:
1. The “Average interest rate” for lease obligations is not stated because the amount of lease obligations
before subtracting the amount equivalent to interest, which is included in the total lease payment, isreported on the consolidated balance sheets.
2. The repayment schedules within five years after the consolidated balance sheet date for leaseobligations (excluding the current portion of lease obligations) are as follows:
Over one year and Over two years Over three years Over four years
Classification
within two years and within three and within fourand within five
years
years
years
Lease obligations
12
9
7
4(Millions of yen)Classification
Lease obligations(Thousands of
U.S.Dollars)Over one year and Over two years
within two years and within three
years
111

87

Over three years
and within four
years
68

Over four years
and within five
years
42

【Schedule of Asset Retirement Obligation】
This information is omitted due to its immateriality.

68

ANNUAL REPORT 2016

－

43

－

－

44

－

ANNUAL REPORT 201669

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Corporate Overview and
Major Construction Methods

Trade Name

NITTOC CORPORATION CO., LTD.

Headquarters

4F, 5F and 6F, Heiwa Higashi-Nihonbashi Bldg., 3-10-6, Higashi-Nihonbashi, Chuo-ku, Tokyo 103-0004, Japan

Established on

December 17, 1947

Capital

Total number of issued shares:43,919,000
Paid-in capital: ¥6,000 million
Tokyo Stock Exchange: Listed on the First Section

Number of
Employees(Consolidated)

Technical staff: 901 persons
Administrative staff: 280 persons
Total: 1,181 persons
Note: The number of employees includes 333 regular workers who are subject to fixed-term employment contracts.

Description ofBusiness

Comprehensive construction business· Civil engineering and foundation· Environmental and geological consulting

LicenseSpecified Construction Business—License No. (Specified-23) 211, issued by the Minister of Land, Infrastructure, Transport andTourism

Business Lines

Civil engineering works, Slope protection works, Landslide protection works, Revegetation works, Ground improvement works,
Grouting, Piling, Sewage maintenance and renovation, Construction consulting and other

Sales Offices

Asahikawa / Hakodate / Doto / Aomori / Morioka / Sanriku / Akita / Yamagata / Fukushima / Gunma / Utsunomiya / Mito /Chiba / Saitama / Yokohama / Nagano / Sado / Joetsu / Kanazawa / Fukui / Toyama / Gifu / Mie / Shizuoka / Keiji / Kobe /Nara / Takamatsu / Matsuyama / Kochi / Tottori / Matsue / Okayama / Yamaguchi / Nagasaki / Saga / Oita / Kumamoto /Miyazaki / Kagoshima / Okinawa

Subsidiaries

Midori Industries Co.,Ltd
3-10-6, Higashi-Nihonbashi,Chuo-ku, Tokyo 103-0004 Japan
Shimane Earth Engineering Co.,Ltd124-1, Higashi-Asahi-Cho, Matsue-Shi, Shimane 690-0001 Japan
Yamaguchi Earth Engineering Co.,Ltd
2-3-13, Hirano,Yamaguchi-Shi,Yamaguchi,753-0015 Japan

Staffing(Qualification
Holders)(Persons)

Technical Staff
Administrative Staff
Professional Engineer
Registered 1st Class Civil Engineer
Registered 2nd Class Civil Engineer
Registered 1st and 2nd Class Architect
Registered Surveyor and Assistant-Surveyor

Total 1181
53
650
686
13
276

Major Construction Methods
Urban Regeneration Field
WinBLADE Method

Underground diameter expanding type soil-mixing improvement method that enables horizontal andslanting operations

Expacker-N Method

Liquefaction countermeasure method that enables high capacity and speedy grouting

Power Blender Method

Mixing method for shallow- and middle-depth layers using a trencher-type mixing machine

EinBand Drill

Japan’s biggest-class rotary percussion drill that enables deep drilling up to 100 m in depth

Re-Born Pile Method

A construction method to cut horizontally and remove existing piles and/or underground structures

Maintenance and Renovation Field
New ReSP Method

Repair and/or reinforce aged, shotcrete slopes without shaving off existing shotcrete

Slope Doctor

Technology to diagnose the soundness of aged shotcrete slopes

Kiro Fukeru Method

Mortar shotcrete at a rate of 18 N/mm2 for long-distance (1 km) pressure feeding

Parfait Grout Method

Filling of underwater inseparable and plastic grout by electronic control

HiSP Method

Pumping shotcrete system combined with air to ensure mortar shotcrete at elevated places via feeding fora long distanceDisaster Prevention and Environmental Conservation Field

70

ANNUAL REPORT 2016

Geofiber Method

Protection of slopes and the environment by forming the reinforced soil using sand and fibers

Nekko Chip Method

Surplus soil and raw chip material from felled trees are processed as foundation materials for greening work

Kaerudo-Green Method

Recycled use of a wide variety of soils such as the surface soil of forests and dehydrated cake for thegreening of slopes

Plant-Leading Spraying Method

The undecomposed chip material, which derives from the secondarily processed fragments of felled trees,is used as a foundation material for greening work

Fiber Soil Greening Step Method

Fiber soil is sprayed on the slope without soil in the form of steps

ANNUAL REPORT 201671

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Financial
Highlights

Management
Members

Corporate
History

Management Members

MANAGEMENT MEMBERS

7

11

72

ANNUAL REPORT 2016

Tamotsu Nakamori

2

Norihisa Nagai

3

Yasunobu Okumiya

4

Akira Sakoda

5

Sumiteru Anda

6

Hiroshi Yamada

7

Iwao Aso

8

Masayuki Watanabe

9Manabu Yodoya

10

Yukiharu Sakumoto

11

Katsuaki Takiguchi

10

3

President and Representative Director

1

Directors

Directors

Directors

Directors

Directors

Outside Directors

Outside Directors

Standing Corporate Auditors

Standing Corporate Auditors

Corporate Auditors

9

4

1

5

6

8

2

ANNUAL REPORT 201673

Advantage
of Nittoc

For
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
and Our AwardWinning History

Overseas
Deployment

Environmental
Responsibility
Landscape Conservation
Technology ofCultural Property

Contribution toSociety
Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Corporate History

2016 March
In 1938, the construction of Uryu Dai-ichi Dam, a huge water
reservoir with pondage of 240 million cubic meters, commenced at
the foot of Mt. Taisetsu in Hokkaido. The dam was a gravity-type
concrete structure of 45.5 m in height. To lead the project to a
successful completion, extraordinary efforts were exercised for the
disposal of the breccia-conglomerate at the site of the foundation.
NITTOC’ s original technologies accumulated to date originatedfrom this dam construction project.

Established PT NITTOC CONSTRUCTION INDONESIA (consolidated subsidiary).

In 1983, the Company listed its stock on the Second Section of theTokyo Stock Exchange, followed by the subsequent listing on theFirst Section in 1985.

2015 December
Headquarters relocated from Ginza, Chuo-ku, Tokyo, to Higashi-Nihonbashi, Chuo-ku, Tokyo.

2015 September
Sold the Akashi-cho Suboffice Building

2010 September
Sabo-Dam(Sand Retention Dam)of Nagae-river,
Nigata Prefecture (Nigata-Pref.)Established in 1947, the Company took the initiative in leading thedam foundation works as the initial work type for its inaugural era
during Japan’ s heyday of constructing dam power stations
associated with the development of power sources. In particular,
NITTOC’ s technology, which boasted the collective strength
deriving from the united efforts of civil engineers and geologists, washighly appraised from various quarters. Consequently, the Company
undertook most of the foundation works of domestic large-scale
dams including Kansai Electric Power’ s Kurobe 4th Dam (theso-called Kuro-yon dam).
Moreover, the Company proactively addressed various projects
regarding the Shinkansen, expressways, building foundations and so
on with the aim of becoming a comprehensive foundation company
that appropriately adapts itself to eras of technological innovation.

Matsukurayama Tunnel,
Tokai-Hokuriku Expressway,
Japan Highway Public Corp. (Gifu-Pref.)2003 November

1990 May

Established Shimane Earth Engineering Co., Ltd. (currently a consolidated subsidiary).

2003 March

Established Dome Construction Industry Co., Ltd. (unconsolidated subsidiary)

Registered for examination of ISO9000 approval for the whole corporation.

1985 October

1990 June

Established High-Tech Lease Co., Ltd. (consolidated subsidiary).

Completed Akashicho Suboffice Building.

1986 March
Completed Tsukuba Laboratory.

1985 April

1985 September

Established NITTOC Real Estate Co., Ltd.

Listed on the First Section of the Tokyo Stock Exchange.

1983 December

1983 October
Acquired the License No. (1) 3193 for the building lots
and buildings transaction business, issued by the
Minister of Construction.

Landslide Protection

1972 October

Established Midori Industries Co., Ltd.
(currently a consolidated subsidiary)1972 May

Acquired the License No. (Specified-47) 211,
issued by the Minister of Construction.

Trade name changed to NITTOC CONSTRUCTION CO., LTD.

1965 March

1963 February

Headquarters relocated to
Chuo-ku, Tokyo.

RiversEstablished Japan Public K.K.

1962 December

1961 December

For the purpose of changing the par value of
Nippon Tokushu Doboku Kogyo’s shares,
Nippon Tokushu Doboku Kogyo K.K.
merged Hikari Shokai K.K., which was establishedin December 1947, by changing the latter’s tradename and business.

1959 December

1957 January

Trade name changed to Nippon Tokushu Doboku Kogyo K.K.

Headquarters relocated to Minato-ku, Tokyo.

1953 April
The Company was established in Sapporo, Hokkaido,
as Yachiyo Chika Kogyo K.K.,
of which the major purposes were geological survey
and foundation work.

ANNUAL REPORT 20162004 October

Liquidated NITTOC Real Estate Co., Ltd.

1979 December

74

Liquidated High-Tech Lease Co., Ltd. (consolidated subsidiary).

2001 March

Listed on the Second Section of the Tokyo Stock Exchange.

Headquarters relocated to
Chiyoda-ku, Tokyo.

2009 March

Closed Tsukuba Laboratory.

Liquidated Japan Public K.K. (consolidated subsidiary).

Construction of the common-use building (Ginza Showa-dori Building) of the Headquarters was completed.

Sakai Section of Joban Expressway,
Japan Highway Public Corp. (Fukushima-Pref.)Established Yamaguchi Earth Engineering
Co., Ltd. (currently a consolidated subsidiary)

2008 March

1985 June
With the change of the company name (to the current name) in1972 fueling momentum, the Company endeavored to expand its
operations over a variety of civil engineering fields such as dam,river, road, water supply, sewage and land development and has
achieved outstanding results in these fields.

2013 December

Liquidated Dome Construction Industry Co., Ltd.
(unconsolidated subsidiary)

In 2007, the Company celebrated its 60th
anniversary. In addition, the Company
established in 2016 PT NITTOCCONSTRUCTION INDONESIA, a consolidated
subsidiary, in Indonesia. NITTOC intends tofurther contribute to society as acomprehensive construction company thatfeatures original expertise and strength inbasic technology not only in Japan but also
overseas.

Residential Land Development

ANNUAL REPORT 201675