NITTOC CONSTRUCTION CO., LTD.
4F, 5F and 6F, Daiwa Higashi-Nihonbashi Bldg.,
3-10-6, Higashi-Nihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL : +81-3-5645-5050 FAX : +81-3-5645-5051
Corporate Strategy Division
TEL : +81-3-5645-5080 FAX : +81-3-5645-5083
E-mail: info@nittoc.co.jp

JAKARTA Representative Office,
PT. NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER
GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia
TEL : +6221 2994 1582 / 1583
FAX : +6221 2994 1991
E-mail: info@nittoc-id.co.id

NITTOC CONSTRUCTION CO., LTD.

MISSION

Connect to
the Futurewith Protection
Technology

With efficient management andcomprehensive technical capabilities infoundation work,
we are the company that provides safe andsecure society and contributes to countries.
CONTENT
03 Consolidated Financial Statements
44 Corporate Overview and Major Construction Methods

Editorial Policy
Since the fiscal year ended March 31, 2014, NITTOC CONSTRUCTION CO., LTD. has published an
Annual Report in order to share information on its management policy, business strategy, and value
creation over the medium- to long-term with its shareholders, investors, and other stakeholders.
• Period Covered by This Report
This report covers the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022).
However, times before or after this period are mentioned as necessary.
• Scope of This Report
This report covers NITTOC CONSTRUCTION CO., LTD. and its consolidated subsidiaries (as ofMarch 31, 2022).
• Notes on Future Outlook
Statements in this report that are not historical facts are future forecasts based on the Company’s
future outlook and plans. As the future forecasts include elements of risk and uncertainty, actual
results and performances may differ from the forecasts provided in this report.

01

ANNUAL REPORT 2023

ANNUAL REPORT 202302Consolidated Financial Statements

Consolidated Financial Statements, etc.
1. Consolidated Financial Statements
1) Consolidated Balance Sheets
March 31, 2022 and 2023

Thousands of
U.S.Dollars(*)

Millions of yen
2022

2023

2023

2022

2023

2023

11,921

11,53986,417

593

423

3,174

Lease obligations

0

–

–

Income taxes payable

555

1,149

8,611

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits

20,723

19,457

145,714

Notes receivable, accounts receivable from completed construction contracts and other

17,934

18,395

137,765

Electronically recorded monetary claims — operating

2,563

3,462

25,930

Merchandise and finished goods

25

31

234

Real estate for sale

0

0

0

Costs on construction contracts in progress301*4 284

Raw materials and supplies

285

Other
Allowance for doubtful accounts
Total current assets

Notes payable, accounts payable for construction contracts and other
Advances received on construction contracts in progress

Provision for warranties for completed construction

25

170

1,273

Provision for loss on construction contracts

168

*4 28

210

2,131

Provision for bonuses

1,150

1,138

8,523

355

2,664

Provision for bonuses for directors (and other officers)

33

39

297

693

446

3,340

(2)

(2)

(15)

42,52642,431

317,766

Other

2,341

2,070

15,502

Total current liabilities

16,79016,559124,011

4

–

–

4,209

4,023

30,132

97

98

740

4,311

4,122

30,873

21,101

20,681

154,884

Non-current liabilities
Lease obligations

Non-current assets

Retirement benefit liability

Property, plant and equipment

Other

Buildings and structures, net*1 1,639*1 1,674

12,537

Machinery, vehicles, tools, furniture and fixtures, net*1 1,314*1 1,542

11,550

Land

2,578

2,578

19,307

Leased assets, net

*1 0

–

–

Construction in progress

253

633

4,747

Share capital

6,052

6,052

45,326

Other, net

*3 2

*3 2

15

Capital surplus

1,753

1,753

13,129Total property, plant and equipment

5,787

6,430

48,159Retained earnings

22,56023,918179,126

4,336

Treasury shares

(0)

(2)

(17)

30,36531,722

237,565

Intangible assets

607

578

Investment securities

417

1,040

7,790

Deferred tax assets

2,003

1,978

14,818

Other

403

370

2,777

Allowance for doubtful accounts

(32)

(21)

(164)

Total investments and other assets

2,791

3,368

25,223

9,185

10,377

77,71851,71252,809395,484

Total non-current assets
Total assets*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 2023

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity

Investments and other assets

03

Thousands of
U.S.Dollars(*)

Millions of yen

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

112

138

1,037

Foreign currency translation adjustment

3

17

134

Remeasurements of defined benefit plans

(58)

(29)

(221)

Total accumulated other comprehensive income

56

126

950

Non-controlling interests
Total net assets
Total liabilities and net assets

188

278

2,083

30,61032,127

240,599

51,71252,809395,484*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 202304Consolidated Financial Statements

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal Years Ended March 31, 2022 and 2023

Consolidated Statements of Comprehensive Income
Fiscal Years Ended March 31, 2022 and 2023

Thousands of
U.S.Dollars(*)

Millions of yen
2022

2023

2023

2022

65,882

72,697544,425

194

221

1,656

66,076

72,918546,082

Net sales
Net sales of completed construction contracts
Sales in other businesses
Total net sales

ProfitCost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses
Total cost of sales*1 53,849*1 59,117

442,731

92

115

863

53,941

59,233

443,594

Gross profit on completed construction contracts
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses
Operating profit

12,032

13,579101,694

102

105

792

12,134

13,685

102,487*2,*3 7,611*2,*3 8,233

61,658

4,523

5,451

40,829

2023

2023

3,318

3,608

27,021

Valuation difference on available-for-sale securities

(200)

26

197

Foreign currency translation adjustment

57

22

169

Remeasurements of defined benefit plans, net of tax

35

29

221

*1 (106)

*1 78

587

3,211

3,686

27,609

3,203

3,597

26,9398

89

670

Other comprehensive income

Total other comprehensive income
Comprehensive income

Gross profit

Thousands of
U.S.Dollars(*)

Millions of yen

Comprehensive income attributable to
Owners of parent
Non-controlling interests*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

Non-operating income
Interest income

7

6

47

Dividend income

36

12

96

Patent income

16

14

109

Foreign exchange gains

49

40

302

Other

29

23

172

Total non-operating income

139

97

728

Interest expenses

5

7

57

Non-operating expenses
Guarantee commission

22

17

127

Commission for syndicated loans

5

55

414

Other

2

6

48

Total non-operating expenses
Ordinary profit

35

86

648

4,626

5,462

40,908Extraordinary income
Gain on sale of non-current assets

*4 0

–

–

Gain on sale of investment securities

372

–

–

Total extraordinary income

372

–

–

*5 11

*5 22

168

–

*6 4

36

Extraordinary losses
Loss on Sale and retirement of non-current assets
Impairment losses
Total extraordinary losses

11

27

205

Profit before income taxes

4,986

5,435

40,703

Income taxes - current

1,513

1,827

13,684

Income taxes - deferred

155

(0)

(2)

Total income taxes

1,668

1,826

13,682

Profit

3,318

3,608

27,021

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

(11)

81

610

3,329

3,526

26,410*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

05

ANNUAL REPORT 2023

ANNUAL REPORT 2023

06

Consolidated Financial Statements

3. Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Millions of yen)

(Millions of yen)

Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

2,022

21,419(1,057)28,436

Cumulative effects of changes in accounting policies
Restated balance

Shareholders’ equity

102
6,052

2,022

102

21,521(1,057)

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

1,753

22,560(0)30,365

Changes during period

28,538Dividends of surplus(2,168)(2,168)

Profit attributable to owners of parent

3,526

3,526

Changes during period
Dividends of surplus(1,501)(1,501)

Profit attributable to owners of parent

3,329

3,329

Purchase of treasury shares
Cancellation of treasury shares

(269)

(788)

(0)

(0)

1,057

–

Net changes in items other thanshareholders’ equity
Total changes during period

–

(269)

1,039

1,056

1,826

Balance at end of period

6,052

1,753

22,560(0)30,365Purchase of treasury shares

(1)

(1)

Cancellation of treasury shares–

Net changes in items other thanshareholders’ equity–

Total changes during period

–

–

1,357

(1)

1,356

Balance at end of period

6,052

1,753

23,918(2)

31,722(Millions of yen)

(Millions of yen)

Accumulated other comprehensive income
Valuation difference
on available-forsale securities
Balance at beginning of period

312

Foreign currencytranslation
adjustment(34)

Remeasurementsof defined
benefit plans(95)

Accumulated other comprehensive income
Total accumulated
othercomprehensive
income183

Non-controllinginterests

180

Cumulative effects of changes in accounting policies
Restated balance

28,800
102

312

(34)

(95)

183

180

Valuation difference
on available-forsale securities

Total net assets

Balance at beginning of period

112

Foreign currencytranslation
adjustment
3

Remeasurementsof defined
benefit plans(58)

Total accumulated
othercomprehensive
income56

Non-controllinginterests

188

Total net assets

30,610Changes during period

28,902
Dividends of surplus(2,168)

Profit attributable to owners of parent

3,526

Changes during period
Dividends of surplus(1,501)

Profit attributable to owners of parent

3,329

Purchase of treasury shares(0)Cancellation of treasury shares–

Net changes in items other thanshareholders’ equity

07

(200)

37

36

(126)

8

(118)

Total changes during period

(200)

37

36

(126)

8

1,708

Balance at end of period

112

3

(58)

56

188

30,610ANNUAL REPORT 2023

Purchase of treasury shares(1)

Cancellation of treasury shares–

Net changes in items other thanshareholders' equity

26

14

29

70

89

159

Total changes during period

26

14

29

70

89

1,516

Balance at end of period

138

17

(29)

126

278

32,127

ANNUAL REPORT 202308Consolidated Financial Statements

4. Consolidated Statements of Cash Flows
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

Fiscal Years Ended March 31, 2022 and 2023
(Thousands of U.S.Dollars*)Share capital
Balance at beginning of period

Capital surplus

45,326

Retained earnings

13,129Total shareholders’equityTreasury shares

168,957(7)

227,406

Changes during period
Dividends of surplus(16,241)(16,241)

Profit attributable to owners of parent

26,41026,410Purchase of treasury shares

(9)

(9)

Cancellation of treasury shares–

Net changes in items other thanshareholders' equity–

Total changes during period––

10,168(9)

10,1592022

45,326

13,129179,126(17)

237,565(Thousands of U.S.Dollars*)

Accumulated other comprehensive income
Valuation difference
on available-forsale securities
Balance at beginning of period

839

Foreign currencytranslation
adjustment
24

Remeasurementsof defined
benefit plans(441)

Total accumulated
othercomprehensive
income422

1,413

Total net assets

229,242

Changes during period
Dividends of surplus(16,241)

Profit attributable to owners of parent

26,410

4,986

5,435

40,703

Depreciation

507

583

4,372

Increase (decrease) in allowance for doubtful accounts

(28)

(11)

(85)

Increase (decrease) in provision for warranties for completed construction

1

144

1,080

Increase (decrease) in provision for loss on construction contracts

(71)

(140)

(1,052)

Increase (decrease) in provision for bonuses

(351)

(11)

(89)

Increase (decrease) in provision for bonuses for directors (and other officers)

(3)

6

48

Increase (decrease) in retirement benefit liability

97

(143)

(1,074)

Loss (gain) on sale of property, plant and equipment

2

–

–

Loss on retirement of non-current assets

9

22

168

Interest and dividend income

(43)

(19)

(143)

Interest expenses

5

7

57

Foreign exchange losses (gains)

(20)

(11)

(87)

Loss (gain) on sale of investment securities

(372)

–

–

–

4

36

Decrease (increase) in trade receivables

2,686(1,314)(9,847)

Decrease (increase) in costs on construction contracts in progress

227

17

129

Decrease (increase) in other assets

(279)

156

1,171

Increase (decrease) in trade payables

534

(379)

(2,838)

Total changes during period
Balance at end of period

09

ANNUAL REPORT 2023

197
1,037

110
134

220
(221)

527
527
950

670
670
2,083

(337)

Increase (decrease) in other liabilities

263

(48)

(364)

Subtotal

7,162

4,079

30,553

Interest and dividends received

43

19

143

Interest paid

(5)

(7)

(57)

Income taxes paid

(2,450)(1,432)(10,725)

Net cash provided by (used in) operating activities

4,750

2,659

19,914Purchase of investment securities

(5)

(585)

(4,383)

Proceeds from sale of investment securities

645

–

–

Cash flows from investing activities(1,130)(8,465)75––

Purchase of intangible assets

(273)

(62)

(469)

Payments for retirement of non-current assets

–

(15)

(112)

Payments of guarantee deposits

(15)

(6)

(51)

Proceeds from refund of guarantee deposits

12

12

91

11,357

Other payments

(10)

(0)

(6)

Other proceeds

173

0

0

240,599

Net cash provided by (used in) investing activities(23)(1,788)(13,392)–
220(1,293)

(45)

(627)

Cancellation of treasury shares
110

(172)

94

Purchase of property, plant and equipment

(9)

197

(1,085)

Increase (decrease) in accrued consumption taxes

Proceeds from sale of property, plant and equipment

Purchase of treasury shares

Net changes in items other thanshareholders’ equity

2023

Profit before income taxes

Increase (decrease) in advances received on construction contracts in progress
Non-controllinginterests

2023

Cash flows from operating activities

Impairment losses
Balance at end of period

Thousands of
U.S.Dollars(*)

Millions of yen

Shareholders’ equity

1,198

ANNUAL REPORT 2023

10

Consolidated Financial Statements

Thousands of
U.S.Dollars(*)

Millions of yen
2022

2023

2023

(Basis of Presenting Consolidated Financial Statements)

Cash flows from financing activities
Repayments of long-term borrowings

(278)

–

–

Repayments of Lease obligations

(5)

(5)

(38)

Purchase of treasury shares

(0)

(1)

(9)

Dividends paid

(1,501)(2,165)(16,217)

Net cash provided by (used in) financing activities(1,785)(2,171)(16,265)

Effect of exchange rate change on cash and cash equivalents

60

34

262

Net increase (decrease) in cash and cash equivalents

3,001(1,266)(9,481)

Cash and cash equivalents at beginning of period

17,722

20,723

155,195*1 20,723*1 19,457

145,714

Cash and cash equivalents at end of period

Notes
The accompanying consolidated financial statements have been prepared from the accounts maintained by NITTOC CONSTRUCTION CO., LTD.
(the “Company”) and its consolidated subsidiaries (collectively, the “Group”) in accordance with the 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 in certain 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 the Company 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 ¥133.53 to US$1.00, the approximate rate of exchange on March 31, 2023. Such translation should not be construed as arepresentation that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

(Significant Items on Basis for Preparation of Consolidated Financial Statements)
1. Scope of Consolidation
Number of consolidated subsidiaries: 6
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Shimane Earth Engineering Co., Ltd.
Ehime Earth Engineering Co., Ltd.
Fukui Earth Engineering Co., Ltd.
PT NITTOC CONSTRUCTION INDONESIA

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 the consolidated balance sheet date.

4. Accounting Policies(1) Valuation standard and valuation method for significant assets
1) Securities• Available-for-sale securities
Securities other than stocks, etc. without market quotations:
Valued at fair market value as of the consolidated fiscal year-end date (All changes in valuation difference are included directly in net assets.
Cost of securities sold is determined by the moving-average method).
Stocks, etc. without market quotations:(Va lued) alued 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 sheets have been calculated bywriting down the book value based on the decline in profitability.)• Costs on construction contracts in progressStated 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 acquired on or after April 1, 1998, as well as facilities attached to buildings,
structures and machinery equipment acquired on or after April 1, 2016 The major useful lives are as follows.
Buildings and structures: 5-60 years
Machinery, vehicles, tools, furniture and fixtures: 2-17 years
2) Intangible assets (excluding leased assets): The straight-line method is applied.
Computer software for internal use is amortized by the straight-line method over the estimated internal useful life (five years).
3) Leased assets
The straight-line method, in which the lease period is utilized as the useful life assuming the residual value is zero, is applied for leased assets offinance lease transactions that do not transfer ownership.

11

ANNUAL REPORT 2023

ANNUAL REPORT 2023

12

Consolidated Financial Statements(3) 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 experiencefor general receivables, and by individually considering the collectability for certain doubtful receivables including loans with potential default
to prepare for possible loan losses including trade receivables 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 estimated compensation amount regarding
the completed construction contracts for the consolidated fiscal year under review as well as the estimated compensation amount for certain
construction contracts to prepare for expenses for 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 endof the consolidated fiscal year under review for which loss is expected, and for which the amount can be reasonably estimated, to prepare forpossible losses from construction contracts that the Group has received orders thereof.
4) Provision for bonuses
The provision for bonuses is recorded based on the estimated amount of bonuses to be paid to provide for the payment of bonuses to
employees.
5) Provision for bonuses for directors (and other officers)
The provision for bonuses for directors (and other officers) is recorded based on the estimated amount of bonuses to be paid to provide forthe payment of bonuses to the directors (and other officers)(4) 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 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 therecognition.
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.
3) Adoption of the simplified method for small and medium-sized entities
For the calculation of retirement benefit liability and retirement benefit expenses, the consolidated subsidiaries of the Company have adopted
the simplified method, according to which the amount of payables for voluntary retirement of all employees at the end of the period istreated as projected benefit obligation.
(5) Translation of significant assets and liabilities denominated in foreign currencies into Japanese yen
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot exchange rates on the
consolidated fiscal year-end date, and differences arising from such translation are charged to income.
The asset and liability accounts of the overseas subsidiaries are translated into Japanese yen at the spot exchange rates as of the consolidated
fiscal year-end date. The revenue and expense accounts of the overseas subsidiaries are translated into Japanese yen based on the averageexchange rate during the consolidated fiscal year under review, and differences arising from such translation are included in “Foreign currencytranslation adjustment” and “Non-controlling interests” as separate components of “Net assets.”(6) Recognition standards for significant revenues and expenses
In the construction business, the principal performance obligation of the Company and its consolidated subsidiaries is to perform and deliver
construction work related to construction contracts with customers. For construction contracts, the Company and its consolidated subsidiaries
deem that performance obligations are satisfied as the construction progresses, and adopt the method of recognizing revenue over a certain
period of time depending on the satisfaction of performance obligations, as the control is transferred over a certain period of time.
For measuring the progress of completion toward satisfaction of performance obligations, it is calculated based on the proportion of the actual
cost incurred against the estimated total cost of construction work at the end of each consolidated fiscal year (input method).
If a reasonable estimate of the progress of completion toward satisfaction of performance obligations cannot be made but the expenses
incurred are expected to be recovered when satisfying the performance obligations, the cost recovery method is applied.
For construction projects whose terms are very short, alternative treatments are applied, and revenue is not recognized over a certain period oftime but recognized when performance obligations are fully satisfied.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows comprise cash on hand, bank deposits available for withdrawal on
demand and readily convertible short-term investments with maturities of three months or less, which are exposed to minor risk of fluctuationin value.

(Significant Accounting Estimates)
Estimates of total construction revenue and total cost of construction work for a construction contract to be satisfied over a certain period of time
1. Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
As of March 31
Net sales from construction contracts to besatisfied over a certain period of time

Millions of yen

Thousands of U.S.Dollars

2022

2023

2023

57,72065,904

493,557

2. Calculation method of the amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
For construction contracts, except for construction contracts whose terms are very short, revenues are recognized over a certain period of time
according to the satisfaction of performance obligations. For measuring the progress of completion toward satisfaction of performance obligations,
it is calculated based on the proportion of the actual cost incurred against the estimated total cost of construction work (input method). Net sales ofcompleted construction contract are calculated based on such progress by multiplying total construction revenue.
Estimates of total construction revenue and total cost of construction work for a construction contract are based on the statement of working
budget prepared for each construction.
3. Major assumptions used for the calculation of amounts recorded in the consolidated financial statements for the consolidated fiscal year underreview
Major assumptions used for estimates of total construction revenue and total cost of construction work are possibilities of obtaining additional
orders, construction material prices, quantities, and outsourcing expenses for proceeding with the construction project. For each assumption,
estimates involve certain assumptions and determination by the construction site supervisors with construction expertise as well as experience in
executing construction works.
4. The impact on the consolidated financial statements for the following consolidated fiscal year
Since construction works generally tend to span long periods of time, their major assumptions may be affected by situations such as change of
construction conditions, design changes or reworks during the works, extension of the work period due to adverse weather, soaring material or laborcosts, and involve uncertainties of estimates. Therefore, if such events necessitate the revision of estimates, they may have impact on the
consolidated financial statements for the following consolidated fiscal year.
In the Group, construction work managers identify changes in situation after commencement of the construction on an appropriate and timely basis
through interviews as well as inspections of construction-related documents including the statement of working budget, which are reflected in thecalculation of revenues related to performance obligations that are satisfied over a certain period of time. Constructions believed to have potentiallysignificant impact on the business performance are under intensive management involving executives both at branches and headquarters forprecautionary purposes. Through these management initiatives, the Group makes an effort to reduce events with potential significant impact on the
consolidated financial statements for the following consolidated fiscal year.
(Changes in Accounting Policies)(Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan(“ASBJ”) Guidance No. 31, June 17, 2021; “Fair Value Measurement Guidance”) from the beginning of the consolidated fiscal year under review, and willprospectively apply the new accounting policies stipulated by the Fair Value Measurement Guidance, in accordance with the transitional treatment
provided in Paragraph 27-2 of the Fair Value Measurement Guidance. There is no impact from this change on the consolidated financial statements.
(Accounting Standards Issued but Not Yet Applied)• “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)• “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022)• “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022)(1) Outline
The ASBJ Statement No. 28 “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc. (the “ASBJ No. 28, etc.”) were issued in
February 2018, and the transfer of practical guidance for tax effect accounting from the Japanese Institute of Certified Public Accountants to the
ASBJ was completed. In the course of consideration on the transfer, the following two points were decided to be further discussed after theissuance of ASBJ Statement No. 28, etc., and considerations were conducted and the results released.
• Classification of tax expenses (taxation on other comprehensive income)• Tax effect related to sales of shares in subsidiaries, etc. (shares in subsidiaries or affiliated companies) in the case in which group tax sharing system
is applied(2) Planned date of application
The Company will apply the ASBJ No. 28, etc. from the beginning of the fiscal year ending March 31, 2025.
(3) Impact of application of the accounting standards, etc.
Assessment of the impact of application of the “Accounting Standard for Current Income Taxes,” etc. on the consolidated financial statements iscurrently underway.

13

ANNUAL REPORT 2023

ANNUAL REPORT 2023

14

Consolidated Financial Statements(Consolidated Statements of Income)*1 Provision for loss on construction contracts included in the cost of sales of completed construction contracts(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment
As of March 31

Fiscal year ended March 31
2022

2023

2023

2022

2023

2023

¥6,690 million¥6,788 million$50,837 thousand¥32 million¥28 million$210 thousand*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:

2 Contingent liabilities
The Company guarantees the contractual obligations of the subsidiaries’ construction contracts.

Millions of yen

Fiscal year ended March 31

As of March 31
2022
Contractual obligations(PT NITTOCCONSTRUCTION INDONESIA)¥172 million(IDR 20,352
million)

2023

2023

¥110 million(IDR 12,421 million)$827 thousand

2022

2023

2023

33

39

297

Employees’ salaries and allowances

3,049

3,301

24,721

Provision for bonuses

448

457

3,423

Retirement benefit expenses

253

245

1,840

Provision of allowance for doubtful accounts

(21)

(11)

(85)

Provision for bonuses for directors (and other officers)*3 Tax purpose reduction entry
The amount of tax purpose reduction entry, which is subtracted from the acquisition prices of property, plant and equipment due to acceptance ofa state subsidy, and the breakdown thereof were as follows:

Thousands of U.S.Dollars*3 Research and development expenses included in general and administrative expenses

As of March 31
2022
Other

¥2 million

Fiscal year ended March 31

2023

2023

¥2 million$15 thousand

2022

2023

2023

¥391 million¥387 million$2,904 thousand*4 Presentation of inventories and provision for loss on construction contracts*4 The breakdown of gain on sale of non-current assets was as follows:
Fiscal year ended March 31, 2022 (As of March 31, 2022)
Not applicable.

Fiscal year ended March 31

Fiscal year ended March 31, 2023 (As of March 31, 2023)
Both the costs on construction contracts in progress 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 construction contracts in progress relating to construction contracts that are expected to generate losses, the amountcorresponding to the provision for loss on construction contracts is ¥1 million.

Millions of yen

Thousands of U.S.Dollars

2022

2023

2023

Machinery, vehicles, tools, furniture and fixtures

0

–

–

Total

0

–

–

*5 The breakdown of loss on sale and retirement of non-current assets was as follows:
Fiscal year ended March 31
5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fund procurement of working capital.
The unused balance of the borrowings relative to the commitment line agreements as of March 31 was as follows:
As of March 31

Millions of yen

Thousands of U.S.Dollars

Millions of yen

Thousands of U.S.Dollars

2022

2023

2023

Buildings and structures

8

22

168

Machinery, vehicles, tools, furniture and fixtures

0

0

0

Land

2

–

–

2022

2023

2023

Intangible assets (software)

0

–

–

Total amount of the commitment line

2,200

2,200

16,475

Total

11

22

168

Maximum overdraft amount

765

445

3,332

Balance of executed loans
Unused balance

–

–

–

2,965

2,645

19,808*6 Impairment losses
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable.
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
This information is omitted due to its immateriality.

15

ANNUAL REPORT 2023

ANNUAL REPORT 2023

16

Consolidated Financial Statements(Consolidated Statements of Comprehensive Income)*1 Amounts of reclassification and the tax-effect equivalent in relation to “Other comprehensive income”

2. Dividends(1) Amount of dividends paid

Millions of yen

Fiscal year ended March 31

2022

Thousands of U.S.Dollars
2023

2023

Valuation difference on available-for-sale securities
Accrued in the fiscal year

83

37

284

Amount of reclassification

(372)

–

–

Before tax-effect adjustment

(288)

37

284

88

(11)

(87)

(200)

26

197

Amount of tax-effect equivalent
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Accrued in the fiscal year

57

22

169

Foreign currency translation adjustment

57

22

169

Accrued in the fiscal year

(0)

0

0

Amount of reclassification

54

42

318

Remeasurements of defined benefit plans

Before tax-effect adjustment

53

42

318

Amount of tax-effect equivalent

(17)

(13)

(97)

Remeasurements of defined benefit plans, net of
tax

35

29

221

Total other comprehensive income

(106)

78

587

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 25, 2021

Commonshares¥1,167 million

Retainedearnings¥28.00March 31,2021

June 28,
2021

Board of Directors meeting on
November 5, 2021

Commonshares¥333 million

Retainedearnings¥8.00

September 30,
2021

November 30,
2021(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 theconsolidated fiscal year under review
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 24, 2022

Commonshares¥1,334 million

Retainedearnings¥32.00March 31,2022

June 27,2022

3. The Company cancelled 2,210,924 shares of treasury shares on May 31, 2021, by resolution of the Board of Directors meeting held on May 7, 2021.
As a result, capital surplus, retained earnings, and treasury shares decreased by ¥269 million, ¥788 million, and ¥1,057 million, respectively, for the
consolidated fiscal year under review, and capital surplus, retained earnings, and treasury shares were at ¥1,753 million, ¥22,560 million, and¥0 million, respectively, as of the end of the consolidated fiscal year under review.

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Class and total number of issued shares and of treasury sharesFiscal year ended March 31, 2023

Number of sharesat the beginning

Increase in numberof shares

Decrease in numberof shares

Number of sharesat the end

Issued shares(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Class and total number of issued shares and of treasury shares

41,708,367––

41,708,367

Total

41,708,367––

41,708,367

Common shares

1,321

1,496

–

2,817

Total

1,321

1,496

–

2,817

Treasury shares

Number of sharesat the beginning

Increase in
number of shares

Decrease in
number of shares

Number of sharesat the end

Common shares

43,919,291–

2,210,924

41,708,367

Total

43,919,291–

2,210,924

41,708,367

Common shares

2,210,924

1,321

2,210,924

1,321

Total

2,210,924

1,321

2,210,924

1,321

Fiscal year ended March 31, 2022

Common shares

Issued shares

Treasury shares

Notes:
1. The decrease in number of issued shares represents the decrease due to cancellation of treasury shares.
2. The increase in number of treasury shares represents the increase from the purchase of less-than-one-unit shares.
3. The decrease in number of treasury shares represents the decrease due to cancellation of treasury shares.

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

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 24, 2022

Commonshares¥1,334 million($9,994 thousand)

Retainedearnings¥32.00March 31,2022

June 27,
2022

Board of Directors meeting on
November 4, 2022

Commonshares¥834 million($6,246 thousand)

Retainedearnings¥20.00

September 30,
2022

November 30,
2022(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 theconsolidated fiscal year under review

17

ANNUAL REPORT 2023

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 23, 2023

Commonshares¥1,042 million($7,808 thousand)

Retainedearnings¥25.00March 31,2023

June 26,2023

ANNUAL REPORT 2023

18

Consolidated Financial Statements(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

Millions of yen

Thousands of U.S.Dollars

2022

2023

2023

Cash and deposits

20,723

19,457

145,714

Cash and cash equivalents

20,723

19,457

145,714(Lease Transactions)(Lessee)Finance lease transactions that do not transfer ownershipThis information is omitted due to its immateriality.
(Financial Instruments)
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings 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, and electronically recorded monetaryclaims - operating, which are trade receivables, 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 price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally entail the concentrated due date forpayments and are exposed to liquidity risk. Borrowings as funds for capital investments are exposed to market price fluctuation risk (interest raterisk) and 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 and other, and electronicallyrecorded monetary claims - operating regarding main counterparties at the relevant departments/sections in accordance with the Credit
Exposure Management Rules and the Credit 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. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March 31, 2022, were as follows. Shares,
etc. without market value are not included in the table below (Refer to Note 2). Notes on cash are omitted. Notes for deposits, notes receivable,accounts receivable from completed construction contracts and other, electronically recorded monetary claims - operating, and notes payable,accounts payable for construction contracts and other are also omitted, as they are settled within a short term and their market values
approximate the book values.
(Millions of yen)

Carrying value
in the consolidatedbalance sheets
Investment securities
Available-for-sale securities
Total assets
Derivative transactions

Market value

Difference

271

271

–

271

271

–

–

–

–

Notes:
1. Securities and derivative transactions(1) Securities and investment securities
Notes on securities by holding purpose are as follows:
1) Held-to-maturity debt securities are not held.
2) The amount of available-for-sale securities sold during the consolidated fiscal year under review was ¥645 million, and the gain on sales
was ¥372 million. Acquisition cost or amortized cost, amounts in the consolidated balance sheets and their differences by type ofavailable-for-sale securities are as follows.
(Millions of yen)Type
Shares with amounts in the consolidatedbalance sheets exceeding acquisition costor amortized cost
Shares with amounts in the consolidatedbalance sheets lower than acquisition costor amortized cost
Total

Acquisition cost or
amortized cost

Amounts in the
consolidatedbalance sheets

Differences

Shares

74

243

168

Shares

35

28

(6)

110

271

161

3) There were no shares for which the holding purpose changed during the consolidated fiscal year under review.
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 tocomprehend the financial positions of the issuers (counterparties) and continuously reviews the holding status of such investment securities
by taking into account market conditions and the relationship with the respective counterparties.
For borrowings (interest rate risk), the Group manages the balance of borrowings in a timely and appropriate manner and procuresborrowings mainly at fixed interest rates in order to limit the interest payment fluctuation risks on borrowings. The Group did not use
derivative transactions (interest rate swap transactions) in the consolidated fiscal year under review.
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 our banks.

19

ANNUAL REPORT 2023

(2) Derivative transactions
The Group conducts no derivative transactions.
2. Shares, etc. without market value
Classification
Unlisted stocks

Carrying value in the consolidated balance sheets¥145 million

The above securities are not included in “Available-for-sale securities.”

ANNUAL REPORT 2023

20

Consolidated Financial Statements

3. Breakdown, etc. of fair values of financial instruments
The Company has classified fair values of financial instruments into the following three levels according to the observability and materiality of
inputs used for fair value measurement.
Level 1 Fair Values: Fair values measured by (unadjusted) quoted prices of the identical assets or liabilities in active markets
Level 2 Fair Values: Fair values measured by directly or indirectly observable inputs other than those classified in Level 1
Level 3 Fair Values: Fair values measured by material but unobservable inputs

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, 2023, were as follows.
Shares, etc. without market value are not included in the table below (Refer to Note). Notes on cash are omitted. Notes for deposits, notes
receivable, accounts receivable from completed construction contracts and other and contract assets, electronically recorded monetaryclaims - operating, and notes payable, accounts payable for construction contracts and other are also omitted, as they are settled within ashort term and their market values approximate the book values.
(Millions of yen))

In cases where multiple inputs with a material impact on fair value measurement are used, fair value is classified into the level to which the
input with the lowest priority in fair value measurement belongs.
(1) Financial instruments carried at fair value in the consolidated balance sheet(Millions of yen)Classification
Investment securities

Fair Value

Carrying value
in the consolidatedbalance sheets
Investment securities
Available-for-sale securities
Total assets

Level 1

Level 2

Leve 3

Total

271

–

–

271

271

–

–

271

Market value

Difference

894

894

–

894

894

–

Available-for-sale securities
StocksTotal assets(Thousands of U.S.Dollars)(2) Financial assets and financial liabilities not carried at fair value in the consolidated balance sheet
Not applicable.

Note: Description of valuation techniques and inputs used in fair value measurement
Investment securities
Listed stocks are valued using quoted market prices. As listed stocks are traded in active markets, their fair value is classified as Level 1.
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings from banks.
The Group’s fund management is limited to short-term deposits and highly safe financial assets pursuant to the Fund Management Rules.
The Group utilizes derivatives within the limit of actual demand and not for speculative purposes. In the consolidated fiscal year underreview, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronically recorded monetaryclaims - operating, which are trade receivables, are exposed to the credit risk of the respective counterparties. Investment securities aremainly stocks of listed companies, 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. Borrowings for working capital are exposed to market interest rate fluctuation risk andliquidity risk.

Carrying value
in the consolidatedbalance sheets
Investment securities
Available-for-sale securities
Total assets

Market value

Difference

6,699

6,699

–

6,699

6,699

–

Note: Shares, etc. without market value
Classification

Carrying value in the consolidated balance sheets

Unlisted stocks¥145 million$1,091 thousand

The above securities are not included in “Available-for-sale securities.”
3. Breakdown, etc. of fair values of financial instruments
The Company has classified fair values of financial instruments into the following three levels according to the observability and materiality of
inputs used for fair value measurement.
Level 1 Fair Values: Fair values measured by (unadjusted) quoted prices of the identical assets or liabilities in active markLevel 2 Fair Values: Fair values measured by directly or indirectly observable inputs other than those classified in Level 1
Level 3 Fair Values: Fair values measured by material but unobservable inputs
In cases where multiple inputs with a material impact on fair value measurement are used, fair value is classified into the level to which the
input with the lowest priority in fair value measurement belongs.
(1) Financial instruments carried at fair value in the consolidated balance sheet(Millions of yen)

(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, and electronicallyrecorded monetary claims - operating regarding main counterparties at the relevant departments/sections in accordance with the Credit
Exposure Management Rules and the Credit 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)
For investment securities, the Group basically manages the risk in accordance with the Fund Management Rules, and specifically sets
investment limits and maximum holding limits, mainly for listed stocks and other securities. For invested financial instruments, the Grouphas clarified the management system and management standards, and regularly analyzes the market price fluctuation risk, the current
market value of shares, and the financial positions of the issuers, and works to reduce risks.
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 andentering into commitment line agreements with our banks.

21

ANNUAL REPORT 2023

Classification

Fair Value
Level 1

Level 2

Leve 3

Total

894

–

–

894

894

–

–

894

Investment securities Available-for-sale securities
StocksTotal assets(2) Financial assets and financial liabilities not carried at fair value in the consolidated balance sheet
Not applicable.
Note: Description of valuation techniques and inputs used in fair value measurement
Investment securities
Listed stocks are valued using quoted market prices. As listed stocks are traded in active markets, their fair value is classified as Level 1.

ANNUAL REPORT 2023

22

Consolidated Financial Statements

Fiscal year ended March 31, 2023 (As of March 31, 2023)
1. Available-for-sale securities (As of March 31, 2023)(Securities)
Fiscal year ended March 31, 2022 (As of March 31, 2022)
1. Held-to-maturity debt securities (As of March 31, 2022)
Not applicable(Millions of yen)

Carrying value inthe consolidatedbalance sheets

2. Available-for-sale securities (As of March 31, 2022)(Millions of yen)

Carrying value inthe consolidatedbalance sheets

Acquisition cost

Difference

SharesSubtotal
74

168

–

–

–

Bonds
National government bonds, local
government bonds, etc.

Shares
Other

Corporate bonds

–

–

–

Other

–

–

–

Total

Other

–

–

–

243

74

168

28

35

Classification

(6)

Bonds

Available-for-sale securities (unlisted stocks)

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

Subtotal

28

35

(6)

Total

271

110

161

Carrying value in the consolidated balance sheets(Millions of yen)

Available-for-sale securities (unlisted stocks)

145(Millions of yen)Type

Sales amount

Total gain on sales
372–

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Bonds

Other
Total

23

ANNUAL REPORT 2023

128

(9)

–

–

–

119

128

(9)

894

694

199

Carrying value in the consolidated balance sheets
millions of yen

Thousands of U.S Dollers

145

1,091

Acquisition cost

Difference

4,238

1,566

(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost
Shares

5,805
–

–

–

5,805

4,238

1,566

Shares

894

965

(71)

Other

–

–

–

Subtotal

894

965

(71)

Total

6,699

5,204

1,495

Total loss on sales

645

Other

119

(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2021 to March 31, 2022)

Shares–209

Carrying value inthe consolidatedbalance sheets

SubtotalClassification–
565(Thousands of U.S.Dollars)

Other

Note: Shares, etc. without market value–775

Note: Shares, etc. without market value(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
Shares209(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost

Subtotal

Subtotal

565

775

Other

243

Difference(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost
Shares(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost

Acquisition cost

–

–

–

–

–

–

645

372

–

2. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2022 to March 31, 2023)
Not applicable.

ANNUAL REPORT 2023

24

Consolidated Financial Statements(Retirement Benefits)
1. Outline of adopted employee retirement benefit plans
The Company and its consolidated subsidiaries have adopted unfunded retirement benefit plans to provide for retirement benefits for theiremployees. Half of the retirement benefit plans are defined benefit plans and the remaining portion are defined contribution plans.
The defined benefit plans are lump-sum severance payment plans to provide retirement benefits by means of a point 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 Japan SOGO Employees’
Pension Fund. As the rational computation of plan assets cannot be ensured for the multiemployer pension plans, accounting is processed in asimilar manner as that for the defined contribution plans.
At the consolidated subsidiaries in Japan, retirement 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.

Millions of yen

Thousands of U.S.Dollars
2023

2023

4,162

4,209

31,523Service cost

232

228

1,708

Interest cost

20

24

183

Accrued amount of actuarial differences

0

–

–

Accrued amount of prior service cost

–

–

–

(207)

(437)

(3,273)

4,209

4,023

30,132Retirement benefits paid
Ending balance of projected benefit obligations(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable(3) Reconciliation of the ending balance of projected benefit obligations and plan assets, and the retirement benefit liability and the net defined
benefit asset in the consolidated balance sheets

25

Millions of yen

Thousands of U.S.Dollars

2022

2023

2023

Projected benefit obligations under unfunded plans

4,209

4,023

30,132

Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets

4,209

4,023

30,132Retirement benefit liability

4,209

4,023

30,132

Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets

4,209

4,023

30,132

ANNUAL REPORT 2023

Thousands of U.S.Dollars

2022

2023

232

228

2023
1,708

Interest cost

20

24

183

Amortization of actuarial differences

60

48

366

Amortization of prior service cost

(6)

(6)

(49)

307

294

2,208

Retirement benefit expenses relative to the defined
benefit plans

Millions of yen

Thousands of U.S.Dollars

2022

2023

(6)

(6)

(49)

59

48

366

53

42

317

Prior service cost
Actuarial differences
Total

2023

(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 asfollows:
As of March 31

Millions of yen

Thousands of U.S.Dollars

2022

2023

Unrecognized prior service cost

37

30

230

Unrecognized actuarial differences

(120)

(71)

(533)

(82)

(40)

(303)

Total

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable

As of March 31

Millions of yen

Service cost

Fiscal year ended March 31

2022

Beginning balance of projected benefit obligations

Fiscal year ended March 31(5) Remeasurements of defined benefit plans
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined benefit plans is as follows:

2. Defined benefit plans(1) Reconciliation of the beginning/ending balance of projected benefit obligations
Fiscal year ended March 31(4) Retirement benefit expenses and the breakdown of the amounts thereof

2023(7) Matters regarding plan assets
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)
As of March 31
Discount rate

2022

2023

0.59%

0.92%

ANNUAL REPORT 2023

26

Consolidated Financial Statements

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contribution plans was ¥142 million for the
fiscal year ended March 31, 2022, and ¥142 million ($1,064 thousand) for the fiscal year ended March 31, 2023.

4. Multiemployer plans
The amount to be contributed under the multiemployer plans of the Japan SOGO Employees’ Pension Fund, of which the accounting is processedin the same manner as that for the defined contribution plans, was ¥156 million for the fiscal year ended March 31, 2022, and ¥156 million ($1,168
thousand) for the fiscal year ended March 31, 2023.
(1) Most recent plan assets reserved under the multiemployer plans
As of March 31

Millions of yen

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

As of March 31

Millions of yen

Thousands of U.S.Dollars

2022

2023

2023

Deferred tax assets
Real estate for sale

4

4

34

Accrued retirement payments

60

103

773

Accrued enterprise tax

43

63

474

Provision for bonuses

354

349

2,621

2022

2023

2023

Allowance for doubtful accounts

7

7

54

Plan assets

21,60522,048165,122

Provision for warranties for completed construction

7

52

390

Total of the actuarial liability based on the pension
financing calculation and the minimum liability reserves

17,547

17,838

133,589

Provision for loss on construction contracts

51

8

64

Non-current assets (Impairment losses)

61

63

472

Net amount

4,057

4,210

31,533

Defined contribution pension benefits payable
Retirement benefit liability(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, 2022: 16.16% (From April 1, 2021 to March 31, 2022)
Fiscal year ended March 31, 2023: 15.94% (From April 1, 2022 to March 31, 2023)(3) Supplementary explanation
The major factor of the net amount in Item (1) above was the general reserve (¥3,382 million for the fiscal year ended March 31, 2022, and ¥3,383
million ($25,335 thousand) for the fiscal year ended March 31, 2023).
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.

3

3

26

1,290

1,233

9,238

Unrealized gains

32

28

209

Asset retirement obligation

20

22

167

Other
Subtotal of deferred tax assets
Valuation allowance
Total of deferred tax assets

177

163

1,224

2,115

2,103

15,751

(63)

(63)

(474)

2,052

2,039

15,276

49

61

457

49

61

457

2,003

1,978

14,818Deferred tax liabilities
Valuation difference on available-for-sale securities
Total of deferred tax liabilities
Net deferred tax assets

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

2022

2023
(%)

Effective statutory tax rate

(%)

30.6

30.6

0.6

0.6

(Reconciliation)
Non-deductible expenses such as entertainment
expenses

27

ANNUAL REPORT 2023

Per capita inhabitant tax

2.7

2.5

Exclusion from revenues such as dividend income

(0.2)

(0.0)

Valuation reserve

(0.1)

0.0

Effective tax rate differential from overseas subsidiary

0.2

(1.3)

Other
Effective income tax rate after the adoption of taxeffect accounting

(0.4)

1.3

33.5

33.6

ANNUAL REPORT 2023

28

Consolidated Financial Statements

3. Accounting Treatments of Corporate and Local Income Taxes or Their Tax Effect Accounting
The Company and its domestic consolidated subsidiaries have applied the group tax sharing system from the consolidated fiscal year under review.
In addition, the Company and its domestic consolidated subsidiaries have accounted for and disclosed corporate and local income taxes and theirtax effect accounting in accordance with the “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (PITF No. 42,
August 12, 2021).
(Asset Retirement Obligation)
End of fiscal year ended March 31, 2022 (As of March 31, 2022)
This information is omitted due to its immateriality.

2. Basic information for understanding revenue from contracts with customers
Basic information for understanding revenue is as stated in “Significant Items on Basis for Preparation of Consolidated Financial Statements, 4.
Accounting Policies, (6) Recognition standards for significant revenues and expenses.”
3. Reconciliation of satisfaction of performance obligations within contracts with customers and cash flows arising from such contracts, and theamount and timing of revenue arising from existing contracts with customers at the end of the consolidated fiscal year under review expected to berecognized in and after the following consolidated fiscal year
(1) Contract asset and contract liability balances
Fiscal year ended March 31,2022(From April 1,2021 to March 31,2022)

End of fiscal year ended March 31, 2023 (As of March 31, 2023)
This information is omitted due to its immateriality.
(Revenue Recognition)
1. Disaggregation of revenue from contracts with customers
The Group classifies sources of its revenues based on the type of services provided to customers into “foundation work,”“civil engineering,”“geologicalconsulting” and “Other.”Foundation work: Ground work for constructing dam, etc., ground improvement, slope protection and repair
Civil engineering: General civil engineering, various shield constructions, etc.
Geological consulting: Geological research, survey, etc.
Other: Other than the above2023(From April 1,2022
to March 31,2023)

Receivables arising fromcontracts with customers(beginning balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recorded monetaryclaims - operating

1,971

1,917

12,933

11,249

12

16

2,921

2,563

Foundation work

62,829–62,829Civil engineering

1,899

–

1,899

Geological consulting

329

–

329

Receivables arising from contracts withcustomers (ending balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recorded monetaryclaims - operating

Other

823

194

1,017

Contract assets (beginning balance)

5,142

4,750

65,882

194

66,076

Contract assets (ending balance)

4,750

4,530

Contract liabilities (beginning balance)

432

593

Contract liabilities (ending balance)

593

423

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Construction business(Millions of yen)

Revenue from contracts with customers

Other businesses(Millions of yen)

Total
(Millions of yen)

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Construction business(Millions of yen)Foundation work

69,608Civil engineering
Geological consulting
Other
Revenue from contracts with customers
Other revenue
Net sales to outside customers

Other businesses(Millions of yen)

69,608

2,100

–

2,100

496

–

496

491

175

667

72,697

175

72,872–45

45

72,697

221

72,918Other businesses(Thousands of
U.S. Dollars)Foundation work521,291–

Total(Thousands of
U.S. Dollars)
521,291

Civil engineering

15,729–15,729Geological consulting

3,719

–

3,719

Other

3,684

1,314

4,999

544,4251,314

545,740

Revenue from contracts with customers
Other revenue
Net sales to outside customers

ANNUAL REPORT 2023

1,917

1,808

11,24912,033

16

23

2,563

3,462

Total
(Millions of yen)–

Construction business(Thousands of
U.S. Dollars)

29(Millions of yen)

–

341

341

544,425

1,656

546,082

ANNUAL REPORT 2023

30

Consolidated Financial Statements

Notes:
1. Contract assets are primarily rights to customers for revenues recognized based on the measurement of progress of completion in
uncompleted construction contracts and are included in “notes receivable, accounts receivable from completed construction contracts andother” under current assets in the consolidated balance sheets. The rights are reclassified to receivables when they are invoiced to customers
and the rights of the Company and its consolidated subsidiaries become unconditional.
2. Contract liabilities are mainly advances received from customers on construction contracts and are included in “advances received on
construction contracts in progress” under current liabilities in the consolidated balance sheets. The performance obligations are satisfied inaccordance with the progress of construction and the contract liabilities are reclassified to revenue. Almost all of the contract liability balance
as of the beginning of the consolidated fiscal year under review was recognized as revenue in the consolidated fiscal year under review.

(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation ofmanagement resources and in assessing business performance.
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.

(Thousands of U.S. Dollars)

Fiscal year ended March 31, 2023
(From April 1, 2022 to March 31, 2023)
Receivables arising fromcontracts with customers(beginning balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recorded monetaryclaims - operating
Receivables arising from contracts withcustomers (ending balance)
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable
Electronically recorded monetaryclaims - operating

14,359Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation ofmanagement resources and in assessing business performance.
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.

84,248126
19,201

13,541
90,120176
25,930Contract assets (beginning balance)

35,576

Contract assets (ending balance)

33,926

Contract liabilities (beginning balance)

4,447

Contract liabilities (ending balance)

3,174(2) Transaction price allocated to the remaining performance obligations
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
The total amount of transaction allocated to the remaining performance obligations as of the end of the consolidated fiscal year under review
was ¥42,746 million, and the Company expects to recognize revenue for these remaining performance obligations between one or two years
upon satisfaction of such obligations.
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
The total amount of transaction allocated to the remaining performance obligations as of the end of the consolidated fiscal year under review
was ¥46,602 million ($349,001 thousand), and the Company expects to recognize revenue for these remaining performance obligations
between one or two years upon satisfaction of such obligations.

[Related Information]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
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, plantand 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% or more of the net sales on the
consolidated statements of income.
Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
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, plantand 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% or more of the net sales on the
consolidated statements of income.

31

ANNUAL REPORT 2023

ANNUAL REPORT 2023

32

Consolidated Financial Statements

Note: The basis for calculation of “Basic earnings per share” is as follows:[Information on Impairment Losses of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
The information is omitted as the reportable segment is solely the construction business.

Fiscal year ended March 31

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
The information is omitted as the reportable segment is solely the construction business.

Profit attributable to owners of parent
Profit attributable to owners of parent regarding
common shares
Average number of common shares (Thousands ofduring the fiscal year
shares)[Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable[Related Party Information]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(1) Parent company information
AN Holdings Corp.
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION.
(2) Condensed financial information of significant affiliated companies
Not applicable(Per-Share Information)
2022

2023

Net assets per share¥729.42¥763.67$5.719Basic earnings per share¥79.83¥84.56$0.633

ANNUAL REPORT 2023

3,329

3,526

26,410

–

–

–

3,329

3,526

26,41041,70741,706

2. Outline of the Program
The Company shall pay the compensation to the Eligible Directors for granting restricted shares in the form of monetary claims, and the total
amount thereof shall be 50 million yen or less per annum (excluding the employee salaries payable to Directors concurrently serving as
employees). The Board of Directors shall determine the specific payment timing and allocation to each Eligible Director.
The paid in amount per share shall be determined by the Board of Directors based on the closing price of the common shares of the Company
on the Tokyo Stock Exchange on the business day before the date of each resolution of the Board of Directors (if no trade is executed on that day,the closing price of the last trading day prior to that day) within a range of amount that will not be particularly advantageous to the Eligible
Directors who will receive the common shares. In addition, the issuance or disposal of common shares of the Company and the payment ofmonetary claims as properties contributed in kind in the Program are subject to the conclusion of a restricted share allotment agreement (the“Allotment Agreement”) between the Company and the Eligible Directors which shall include the following content.

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Parent company information
AN Holdings Corp. (unlisted)
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION (unlisted).
(2) Condensed financial information of significant affiliated companies
Not applicable

33

2023

1. Purpose of the introduction of the Program
The Program will be introduced to newly provide the Company’s Directors (excluding Outside Directors; “Eligible Directors”) with a compensation
system to grant restricted shares separately from the existing compensation system for the purpose of giving them the incentive to strive forcontinuous enhancement of the corporate value of the Company and facilitating further sharing of value with its shareholders.

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable

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

2023(Significant Subsequent Events)(Introduction of Restricted Share Compensation Program)
The Company resolved to introduce a restricted share compensation program (the “Program”) upon review of its officer compensation programs at
the Board of Directors meeting held on May 24, 2023. The relevant proposal was submitted to the 76th Annual Shareholders’ Meeting held on June 23,
2023 (the “Shareholders’ Meeting”) and resolved at the Shareholders’ Meeting.

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable

Diluted earnings per share2022

Thousands of U.S.Dollars

Basic earnings per share
Amounts not attributable to common shareholders

Fiscal year ended March 31

Millions of yen(1) Total number of restricted shares
The Eligible Directors shall, pursuant to a resolution of the Board of Directors of the Company, pay in all of the monetary claims paid to themas properties contributed in kind and receive common shares of the Company which shall be issued or disposed of. The total number ofthe common shares of the Company to be issued or disposed of in the Program shall be 100,000 shares or less per annum (However, if a share
split (including a gratis allotment) or a reverse share split of common shares of the Company is carried out, or another circumstance arises inwhich the total number of common shares of the Company to be issued or disposed of as restricted shares is required to be adjusted on orafter the date of approval of this proposal, the total number shall be adjusted within a reasonable range.).

Diluted earnings per share is not disclosed as nopotential shares exist.

ANNUAL REPORT 2023

34

Consolidated Financial Statements(2) Content of the Allotment Agreement
1) Transfer restriction period
An Eligible Director shall not transfer, put up as collateral, or otherwise dispose of the common shares of the Company (the “Transfer
Restriction”) allotted under the Allotment Agreement (the “Allotted Shares”) during the period between the date of the allotment under the
Allotment Agreement and the point in time immediately after he or she retired from an officer or employee position in the Company or its
subsidiary predetermined by the Board of Directors of the Company or resigned from the Company (the “Transfer Restriction Period”).
However, if the point in time immediately after the retirement or resignation is earlier than the day three months pass after the end of the
fiscal year to which the date of the allotment of the Allotted Shares belongs, the Company may adjust the timing of the end of the Transfer
Restriction Period within a reasonable range.
2) Treatment upon retirement or resignation
If an Eligible Director retires from an officer or employee position in the Company or its subsidiary predetermined by the Board of Directorsof the Company or resigns from the Company before the period of time predetermined by the Board of Directors (the “Period of Service”)
expires, the Company shall acquire the Allotted Shares rightfully and without consideration, unless there is a legitimate reason for theretirement or resignation, such as the expiration of his or her term of office and his or her death.
3) Cancellation of the Transfer Restriction
The Company shall cancel the Transfer Restriction on all of the Allotted Shares at the expiration of the Transfer Restriction Period, provided
that the Eligible Director continuously served at an officer or employee position in the Company or its subsidiary predetermined by the
Board of Directors of the Company during the Period of Service. However, if the Eligible Director retires from an officer or employee positionin the Company or its subsidiary predetermined by the Board of Directors of the Company or resigns from the Company for a legitimate
reason before the Period of Service expires, or if the Eligible Director retires from an officer or employee position in the Company or its
subsidiary predetermined by the Board of Directors of the Company or resigns from the Company for a reason other than a legitimate one
after the Period of Service expires but before the Transfer Restriction Period expires, the Company shall adjust the number of Allotted Shareson which the Transfer Restriction is to be cancelled and the timing for the Transfer Restriction to be cancelled as necessary and in areasonable manner. The Company shall acquire the Allotted Shares rightfully and without consideration on which Transfer Restriction has
not yet been cancelled at the point in time immediately after the Transfer Restriction was cancelled pursuant to the provisions presented
above.
4) Treatment of organizational restructuring, etc.
Notwithstanding the provisions of 1) above, if an agreement of merger in which the Company will become a disappearing company, anagreement of share exchange or a plan for share transfer through which the Company will become a wholly-owned subsidiary or a matter
concerning other organizational restructuring, etc. is approved at a Shareholders’ Meeting of the Company (or a Board of Directors meetingof the Company if an approval at a Shareholders’ Meeting of the Company is not required for the organizational restructuring, etc.) during
the Transfer Restriction Period, the Transfer Restriction shall be cancelled by a resolution of the Board of Directors of the Company prior to
the effective date of the organizational restructuring, etc. on the number of Allotted Shares reasonably determined in light of the period fromthe start date of the Transfer Restriction Period to the approval date of the organizational restructuring, etc. In the case presented above, theCompany shall acquire the Allotted Shares rightfully and without consideration on which Transfer Restriction has not yet been cancelled at
the point in time immediately after the Transfer Restriction was cancelled.
5) Others
Any other matters concerning the Allotment Agreement shall be determined by the Board of Directors of the Company.

(2)[other]
Quarterly data for the fiscal year ended March 31, 2023

Cumulative periods
Net sales (Millions of yen)
Profit before income taxes (Millions of yen)
Profit attributable to owners of parent(Millions of yen)
Basic earnings per share (Yen)

Cumulative periods
Net sales (Thousands of U.S. Dollars)Profit before income taxes(Thousands of U.S. Dollars)Profit attributable to owners of parent(Thousands of U.S. Dollars)
Basic earnings per share (Dollars)

Accounting periods

Three months(From April 1, 2022 toJune 30, 2022)

Six months(From April 1, 2022 toSeptember 30, 2022)

Nine months(From April 1, 2022 to
December 31, 2022)

Fiscal year ended
March 31, 2023
(From April 1, 2022 toMarch 31, 2023)
72,91814,43132,75253,904

434

2,134

4,309

5,435

248

1,349

2,810

3,526

5.96

32.35

67.38

84.56

Three months(From April 1, 2022 toJune 30, 2022)

Six months(From April 1, 2022 toSeptember 30, 2022)

Nine months(From April 1, 2022 to
December 31, 2022)

Fiscal year ended
March 31, 2023
(From April 1, 2022 toMarch 31, 2023)
546,082

108,075

245,278

403,691

3,252

15,98432,27440,703

1,862

10,10321,044

26,410

0.044

0.242

0.504

0.633

First quarter(From April 1, 2022 toJune 30, 2022)

Second quarter(From July 1, 2022 toSeptember 30, 2022)

Third quarter
Fourth quarter(From October 1, 2022 (From January 1, 2023
to December 31, 2022) to March 31, 2023)

Quarterly basic earnings per share (Yen)

5.96

26.38

35.03

17.18

Quarterly basic earnings per share (Dollars)

0.044

0.197

0.262

0.128

5) [Consolidated Supplementary Statements]][Schedule of Bonds Payable]
Not applicable[Schedule of Borrowings]

Classification
Short-term borrowings

Beginning balance of theEnding balance of the
fiscal year ended March 31, 2023 fiscal year ended March 31, 2023 Average Repayment
interest rate
deadline
Millions
Thousands ofMillions
Thousands of(%)
of yenU.S.Dollarsof yenU.S.Dollars
–
–
–
–
–
–

Current portion of long-term borrowings

–

–

–

–

–

–

Current portion of lease obligations
Long-term borrowings (excluding thecurrent portion of long-term borrowings)
Lease obligations (excluding thecurrent portion of lease obligations)
Other interest-bearing debt

0

1

–

–

–

–

–

–

–

–

–

–

4

34

–

–

–

–

Total

–

–

–

–

–

–

4

34

–

–

–

–

[Schedule of Asset Retirement Obligation]
This information is omitted due to its immateriality.

35

ANNUAL REPORT 2023

ANNUAL REPORT 2023

36

37

ANNUAL REPORT 2023

ANNUAL REPORT 2023

38

39

ANNUAL REPORT 2023

ANNUAL REPORT 2023

40

41

ANNUAL REPORT 2023

ANNUAL REPORT 2023

42

Corporate Overview and Major Construction Methods (as of March 31, 2023)
Trade Name

NITTOC CONSTRUCTION CO., LTD.

Headquarters

4F, 5F and 6F, Daiwa 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: 41,731,951 (as of July 21, 2023)
Paid-in capital: ¥6,052 million
Tokyo Stock Exchange: Tokyo Stock Exchange Prime

Number of
Employees(Consolidated)

43

ANNUAL REPORT 2023

Construction business:1,068 persons
Other business: 6 persons
Total: 1,074 persons
Note: The annual average number of temporary employees is 279.

Description ofBusiness

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

LicenseSpecified Construction Business—License No. 211, issued by the Minister of Land, Infrastructure, Transport and Tourism(Date of approval: October 25, 2021)

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 / Nawa / 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.,Ltd
310-1, Tsuda-cho, Matsue-Shi, Shimane 690-0055 Japan
Yamaguchi Earth Engineering Co.,Ltd
2-3-13, Hirano,Yamaguchi-Shi,Yamaguchi 753-0015 Japan
Ehime Earth Engineering Co., Ltd.
2-6-12 Amayama ,Matsuyama-shi, Ehime 790-0951 Japan
Fukui Earth Engineering Co., Ltd.
24-21-2 Ebata-cho, Fukui-shi, Fukui 918-8016 Japan
PT. NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia

Staffing(Qualification
Holders)(Persons)

Number of employees
Professional Engineer
Registered 1st Class Civil Engineer
Registered 2nd Class Civil Engineer
Registered 1st and 2nd Class Architect
Registered Surveyor and Assistant-Surveyor

Total 1,074
53
650
737
8
328

ANNUAL REPORT 2023

44