2019
Annual Report

NITTOC CONSTRUCTION CO., LTD.

Leading to the Future with our Technology of Protection

HEADQUARTERS
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
The Corporate Strategy Division
TEL +81-3-5645-5080 FAX +81-3-5645-5083

JAKARTA Representative Office
GENERALI TOWER G, 16/F
GRAND RUBINA BUSINESS PARKat Rasuna Epicentrum
Jl. HR Rasuna Said, Jakarta 12940, Indonesia

MISSION

Leading to the
Future with
our Technologyof Protection

CONTENTWith efficientmanagement andcomprehensive
technical capabilities
in foundation work,
we are the company
that provides safe
and secure society
and contributes
to countries.

02

Corporate History

26

04

Advantage of NITTOC

06

Message from the President

08

Formulation of the Medium-Term
Management Plan 201710
Disaster Prevention
and Environmental
Conservation

33

Environmental Responsibility

34
Landscape Conservation
Technology for Cultural
Properties

14
Urban Regeneration
35
18

Contribution to Society

Maintenance andRenovation

22

Special Features

24

Fairs Where We Plan
to Exhibit

Our Award-Winning
History

ANNUAL REPORT 201628
Overseas Deployment

25c

Domestic Construction
Projects

37

Corporate Governance

38

Management Members

40

Financial Highlights

42

Consolidated Financial
Statements

77

Corporate Overview and
Major Construction Methods

ANNUAL REPORT 201601

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

2019 January

Corporate History

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

2018
JR Kure Line, Saizaki Area Eternal Disaster Restoration Work (Mihara-shi–Higashihiroshima-shi, Hiroshima Prefecture)

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 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,
was highly appraised from various quarters. Consequently, theCompany undertook most of the foundation works of domestic
large-scale dams including Kansai Electric Power’ s Kurobe 4thDam (the so-called Kuro-yon dam).
Moreover, the Company proactively addressed various projects
regarding the Shinkansen, expressways, building foundations andso on with the aim of becoming a comprehensive foundationcompany that appropriately adapts itself to eras of technologicalinnovation.

2017
Kumamoto Earthquakes Disaster Restoration Work

JR Kure Line, Saizaki Area External Disaster
Restoration Work
(Mihara-shi–Higashihiroshima-shi,
Hiroshima Prefecture)2015 December

National Route No. 30
Mukaiyama-minami Work of the
Honshu-Shikoku Bridge Authority(Kagawa Prefecture)

Kumamoto Earthquakes Disaster Restoration Work

2016 March
Established PT NITTOC CONSTRUCTION INDONESIA(consolidated subsidiary).

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

2015 September

Bannnosu Elevated Bridge
Substructure Work of the
Honshu-Shikoku Bridge Authority(Kagawa Prefecture)

Sold the Akashi-cho Suboffice Building
Mt. Fuji Osawa Collapse Countermeasure
Works of the Ministry of Construction(Shizuoka Prefecture)

2008 March2010 September
Liquidated Dome Construction Industry Co., Ltd.
(unconsolidated subsidiary)

Closed Tsukuba Laboratory.

Construction of
Kawamata Dam (2017)2003 November

2017

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

Construction of Kawamata Dam (2017)2001 March2013 December

Liquidated NITTOC Real Estate Co., Ltd.

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

1990 May
Established Dome Construction Industry Co., Ltd. (unconsolidated subsidiary)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.

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.

1985 October
Established High-Tech Lease Co., Ltd. (consolidated subsidiary).

Registered for examination of ISO9000 approval for
the whole corporation.

1985 June

1990 June

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

Completed Akashicho Suboffice Building.

1985 April

1986 March

Established NITTOC Real Estate Co., Ltd.

Completed Tsukuba Laboratory.

1983 December

1985 September

Listed on the Second Section of the Tokyo Stock Exchange.

Listed on the First Section of the Tokyo Stock Exchange.

1983 October

1979 December
1972 May

1972 October
1965 March

1963 February

Headquarters relocated to
Chuo-ku, Tokyo.

Established Japan Public K.K.

1957 January
Headquarters relocated to Minato-ku, Tokyo.

1961 December
Headquarters relocated to
Chiyoda-ku, Tokyo.

1959 December
Trade name changed to Nippon Tokushu Doboku Kogyo K.K.

ANNUAL REPORT 20192004 October
Established Shimane Earth Engineering Co., Ltd.
(currently a consolidated subsidiary).

Ishiki Chuo-Danchi Land Reclamation Work of the
Ise Land Rezoning Association (Kagoshima-shi)

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

1962 December

National Route No. 28 Yasuhira Work of the Honshu-Shikoku
Bridge Authority (Awaji Island, Hyogo Prefecture)

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.

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.

02

2009 March
Liquidated High-Tech Lease Co., Ltd. (consolidated subsidiary).

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

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

Trade name changed to NITTOC CONSTRUCTION CO., LTD.

Ogitsu Work of Joban Expressway,
Japan Highway Public Corp. (Ibaraki Prefecture)

2003 March

Arakawa River Hirakata Embankment Disaster Restoration Workof the Ministry of Construction (Saitama Prefecture)

The Company celebrated the 70th
anniversary since its establishment in
December 2017.
In addition, the Company established in2016 PT NITTOC CONSTRUCTION
INDONESIA, a consolidated subsidiary, inIndonesia. NITTOC intends to further
contribute to society as a comprehensive
construction company that features original
expertise and strength in basic technology
not only in Japan but also overseas.

ANNUAL REPORT 201903

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Advantage ofSince 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 and secure environment to the society.

3 Types of Business Field respondto Social Needs

200

We are holding
types of technology
and construction method

Urban
Regeneration
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.

Maintenanceand Renovation

Even under the compress buildings situation,
NITTOC have developed earthquake resistant,liquefaction prevention and existing pile
removal method to contribute the society.

Today, in this aging 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 safe 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 harsh 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,

NITTOC specializes in slope related technique whichaccumulates 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.

04

ANNUAL REPORT 2019

ANNUAL REPORT 201905

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

For Stakeholders

Message from the President“Transformation into a specialized construction
work company which excels in disaster prevention,
disaster restoration and repair/reinforcement.”

NITTOC CONSTRUCTION CO., LTD. (“NITTOC” orrobust construction market is expected to continue

A major business of the Company is to engage inthe “Company”), was established in 1947 as a firm

for the three years of the plan, the Company,

works relating to safety of national land. The

which started out in construction work for dam

at the same time, considers this period as a great

Company therefore must pursue a comprehensive

foundations during its startup and has been highly

opportunity to be a significant turning point for theapproach in a wide range of sectors, including notacclaimed by customers as an enterprise withJapanese construction market from a long-term

only in providing customers with high-quality

strengths in sites appropriated for specialized

perspective.

works but also in ensuring safety management,

construction works such as “Maintenance and

The Company therefore positions these three years

environmental conservation and compliance.

Renovation,” “Disaster Prevention and Environmental

as a transitional period during which infrastructure

Furthermore, its business targets include different

Conservation” and “Urban Regeneration.” Thein Japan will shift from the phase of new construction

types of stakeholders including the users ofCompany started the “Medium-Term Management

to that of maintenance and renewal, a period in

infrastructure, local residents living in areas adjacent

Plan 2017” (covering fiscal 2017 through fiscal

which growth foundations toward a new era are toto its construction works, collaborating companies,

2019) effective from fiscal 2017. While the current

be established. The Company will strive forinvestors and employees. It is important for theCompany to meet various requests from society
and the expectations of its many stakeholders.
The Company endeavors to fulfill its social
responsibility as a company engaged in theconstruction business, in an aim to uphold its
management philosophy of “a company thatprovides a safe and secure society and contributes
to countries,” “efficient management andcomprehensive technical capabilities in foundation
work,” and “to lead disaster prevention andenvironmental conservation as the expert offoundation work accumulated by our reliable
technological ability.”Your cordial support of and cooperation withNITTOC is much appreciated.

06

ANNUAL REPORT 2019

Norihisa Nagai
President & Representative Director

ANNUAL REPORT 201907

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Summary of the Medium-Term Management Plan

Formulation of the Medium-Term Management Plan 2017

4. Basic Policy of the Medium-Term Management Plan 2017 (fiscal 2017)(fiscal 2017 through fiscal 2019)

NITTOC announces that it resolved, at the Board of Directors meeting held on May 9, 2017, the Medium-Term Management
Plan 2017 (fiscal 2017 through fiscal 2019), with fiscal 2017 (ending March 31, 2018) as the first fiscal year.
In the past nine years, the Company formulated three medium-term management plans and positioned them as follows:“Step I: Creation of a Newborn NITTOC” (fiscal 2008 through fiscal 2010), “Step II: Establishment of Stable Management
Foundations” (fiscal 2011 through fiscal 2013) and “Step III: Challenge for Growth” (fiscal 2014 through fiscal 2016). Specificmeasures were launched at each stage and results exceeded the planned figures for major indicators such as equity ratio
and ratio of operating income to net sales.
While the Company expects the currently steady construction market environment to continue during the plan period, thisthree-year period will be a significant turning point for the Japanese construction market from a long-term perspective.
Positioning these three years as a “transitional period during which infrastructure in Japan will shift from the phase of
new construction to that of maintenance and renewal, a period in which growth foundations toward a new era are to beestablished,” we at NITTOC will strive to achieve the following goals with the unified efforts of both executives and regular
employees.

PurposeUnified Efforts-Mission:
A company that provides a safe
and secure society andcontributes to countries-Vision:To lead disaster prevention andenvironmental conservation as theexpert of foundation work
accumulated by our reliable
technological ability-Value:Efficient management andcomprehensive technicalcapabilities in foundation work

Management
Philosophy
Business Strategy

Efficiently secure profits by raising customers’ confidence with our “outstanding technology” and“high quality construction,” which are well-adapted to the changing construction market.

Important Measures
Expand the foundation
improvementbusiness

Expand the slope
repair business

Increase thenumber/volume ofprivate-sector works

Improve theworkplaceenvironment

Reinforce educationand training

Promote ICT

Corporate Culture Reforms

Transformation into a specialized construction work company which excels in disaster prevention, disaster restoration andrepair/reinforcement

Positioning of the three-year Medium-Term Management Plan

“Next Challenge”
Transitional period during which infrastructure in Japan will shift from the phase of new construction to that of maintenanceand renewal, a period in which growth foundations toward a new era are to be established

5. Important Measures
Important measures

1. Management Philosophy-Mission:

A company that provides a safe and secure society and contributes to countries-Value:Efficient management and comprehensive technical capabilities in foundation work

-Vision:To lead disaster prevention and environmental conservation as the expert of foundation work accumulated
by our reliable technological ability

2. Management Policies
1. Reinforce internal control (compliance and risk management)
2. Management emphasis on safety and a good workplace environment
3. Secure volume of foundation works
4. Maintain profitability and improve productivity
5. Cash flow-focused management
6. Secure and develop human resources

3. Business Strategy
Efficiently secure profits by raising customers’ confidence with our “outstanding technology” and “high quality construction,”
which are well-adapted to the changing construction market.

08

ANNUAL REPORT 2019

Objective

OutlineExpand the foundation
improvement business

Achieve productivity improvement and conduct efficient management by expanding
Improve productivity and profitability
business in a field where rivals outclass NITTOC.

Expand the slope repair business

Adapt to the construction market

Establish slope repair technology, as well as develop and expand its market

Reinforce education and training
for engineers

Develop human resources

Nurture skilled engineers systematically as a work-dedicated company

Improve the workplaceenvironment

Review a work-life balance

Improve the workplace environment to establish sound mental and physical conditions
and prevent excessive work of employees

Increase the number/volume ofprivate-sector works

Increase orders received fromprivate-sector works

Prevent a reduction in overall work volume and expand businesses by increasing thenumber of orders received from private-sector works

Promote ICT

Promote ICT and mechanization

Leverage ICT technology and mechanization to address the improvement in productivity andquality as well as labor-saving

6. Managerial Goals

1) Marketinggoals• Become the top company in the slope protection work
field (NITTOC ranked second in the industry in fiscal
2016 performance.)• Achieve a 60% increase in orders received for foundation
improvement works (compared with fiscal 2016 results)• Expand slope repair works• Reinforce overseas construction projects (achieve ¥1.0 billion
in net sales of completed construction contracts by the endof fiscal 2019)2) Business• Operating income: ¥3.0 billion or more
performance • Ratio of ordinary income to net sales: 5.0% or more
3) Financial
goals• Equity ratio: 50.0% or more (49.0% in fiscal 2016)• ROE: 9.0% or more
• Cash flows: Positive figures• Dividend payout ratio of 30% or more and total return4) Target of
ratio of 50% or more
return to• Total return ratio (total cash dividends + treasury sharesshareholders
purchased)

7. Performance Plans for
Fiscal 2017 through Fiscal 2019
(Billions of yen)
Base item

Fiscal 2017

Fiscal 2018

Fiscal 2019

Mid-Term Announcement

ResultMid-Term Announcement

ResultMid-Term Announcement

Orders received

60.2

61.2

64.8

60.7

62.0

62.2

61.1

61.5

Net sales

60.2

60.2

62.9

60.7

62.0

63.3

61.1

61.5

Operating income

3.2

3.2

4.1

3.2

3.4

4.0

3.2

3.6

Ordinary income

3.2

3.2

4.1

3.1

3.3

4.0

3.2

3.6

Net income

2.2

2.2

2.7

2.1

2.2

2.7

2.2

2.4

9.9%

-

11.6%

9.1%

-

11.1%

9.2%

-

22.5

-

23.1

23.0

-

24.5

23.8

-

51.3%

-

48.1%

50.9%

-

50.0%

52.4%

-

1.8

-

3

1.7

-

3.1

2.0

-

ROE
[Reference]
Shareholders’ equity
Equity ratio
Operating cash flow

ANNUAL REPORT 201909

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field

Disaster Prevention andEnvironmental Conservation

Recycling of Surplus Soil and Natural Environment-Friendly
Restoration of Vegetation

Effectively Using Surplus Soil
TSURU-KAME Soil Method

Construction Performance, Method, and Technology• Utilizes onsite surplus soil effectively.
• Excels in long-term durability (comparison with the greening
foundation mainly consisting of bark compost).

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.
we have developed our slope protection method does not use concrete,using a method for spraying vegetative material base or greening method by using surplus soil left in the site,• Uses the chip material, which derives from the secondarily processedfragments of felled trees, as a foundation material for greening workwithout being converted into compost.
• Enables greening via the natural intrusion of plants on the foundationthat excels in erosion resistance.

In addition, NITTOC accumulates a brilliant achievement about Anchor method,that is necessary for slope disaster prevention.

Chosen as a “Fiscal 2016 Runner-up Recommended Technology”(by the New Technology Utilization System Review Meeting,
Ministry of Land, Infrastructure, Transport and Tourism)

Comparison of the Volume Utilized

Construction Technology Review and Certification

OnsiteSurplus Soil

NETIS PLUS

Environment-Friendly
Slope Protection Method

100m3

Raw Wood
Chip

40m3

Geofiber Method

NEKKO Chip Method

50m3• Serves to decrease CO2 emissions as a substitute method for sprayed slope frames.
• Forms forest on slopes by enabling full-space greening.
• Has an abundant record of slope greening (More than 3,400 projects inJapan and 150 overseas)

KAERUDO-Green Method

Sand

Fiber

Sand from the left-side nozzle andpolyester continuous fiber from theright-side nozzle are injected by jet water
to form continuous fiber-reinforced soil.

ANNUAL REPORT 2019• Utilizes surface soil of forests
economically.
• Recycles a wide variety ofsoils such as excavated soil,
dredged soil and dehydrated
cake.

25m3

Using Surface Soil and Raw
Chip Material
NEKKO Chip Method• Uses primarily fragmented
raw chip material.
• Constructs at high speeds
using a specialized machine.
• Enables greening via thenatural intrusion of plants on
the foundation that excels in
erosion resistance.

Continuous
fiber-reinforced soil work
(slope protection type)

Ground reinforcement orplate-reinforced anchor work

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

Example of Construction:

Status of greenery when using the NEKKO Chip Method

Vegetation Mat that Prevents Soil Erosion
N-Mat NEW

(Kyoto)10

Surface Soil-Based GrowthFoundation for Plants

40m3*In case of a sprayed depth of 5 cm for an area of 1,000 m2*Inclusive of loss

Kiyomizu-dera Temple
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 wasreinforced by ground reinforcement work andground 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.

NNTD No. 0369

100m3

Planting work(vegetation basematerial spraying work)

Continuous
fiber-reinforced soil

• Mixes the surface soil of forests containing buried seeds withthe vegetation foundation material.
• Greening construction is possible using a general-purpose
mortar spraying machine.

KAERUDO-Green Method

TSURU-KAME Soil Method
Plant-Leading Spraying Method

Using Surface Soil Insteadof Seeds
Native Recovery Greening Method

Plant-Leading Spraying Method

based on the consideration of the disaster prevention environment.

NNTD No. 0370

NNTD No. 0374

Growth Foundation for Plants Mainly
Consisting of Raw Chip Material

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

Nature Restoration Using Surface Soil of Forests
with Consideration to the Ecosystem (forgreening especially around natural parks suchas national parks and quasi-national parks)• This mat containing seeds and fertilizer can be applied
to ordinary embankments, as well as to cut slopes,
which have appropriate grain size distribution and good
physical and chemical characteristics.
• Natural landscape is early restored because its use
allows seed design primarily with indigenous plants.
• The mat also can be applied without seeds toaccelerate the natural intrusion of plants.
During the work

Work completed

One year after the work completion

Just after the placement of N-Mats

Appearance of the product

ANNUAL REPORT 201911

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field

Ground Anchor and Slope Frame

NETIS No. SK-100011-VE Technology Promoted for Utilization

Ground Anchor Testing andTension Control System
Licos• Displays and automatically stores data on load and displacement
magnitude in real-time.
• Tightens and firmly fixes several anchors simultaneously.
• Performs labor-saving via automatic control of jack operation.
Valve
unit
Hydraulic pumpPC
PC

Data monitoring anddata storage
Jack operation

Displacement
gauge
Simultaneous tightening of multiple anchors

Main body of thecontrol unit

Slope frames

Ground anchors + Pressure receiving plates

Nature Restoration at Places Where Greening is Difficult
Tensile Strength Monitoring System
for Installed Anchors

NETIS No. TH-140015-A

Plastic Pressure Receiving
Plate for Rock Bolts

Aki-Mos

NINJA Panel• A load cell is attachable to an installed anchor.
• The attached load cell is exchangeable.

• Uses completely recycled plastic asmaterial.
• Improves operating safety andconstruction efficiency on slopes due tolight weight.
• Available for full-surface greening.
• Ø634 and Ø911 mm models are added to
the lineup.

Dedicated jigs

NNTD No. 0373

NETIS No. SK-100014-VE

Greening of Mortar Shotcrete
Surfaces and Bedrock

Recovering Greenery on
Strongly Acidic Soil Slopes

Fiber Soil Greening Step Method

SANDER Green Method• Full-space greening by spraying the foundation materials for greening
work on a slope without soil in the form of wave-shaped steps.

• Employs a simple method that mixes “Sander Powder,” which has aneutralizing effect, and “Sander Bio,” an acid-resistant VA
mycorrhizal fungus material, with the foundation material forgreening work.

Wirelesstransmission

Load cell

Installed anchor

Sprayedfoundation

Measurement data-acquisition system

The technology was jointly developed by the Public Works Research Instituteand eight private-sector companies.
Dispersion of surface water

Splitz Anchor
MethodØ2,200 mm
Ripraplayer
Anchor Method by
the EinBand Drill

12

ANNUAL REPORT 2019

New ACE Method
Ø4,800 mm

Soldier Pile Panel
Wall Method(combined use with ground anchor)

Splitz Anchor
MethodSmall Diameter
Pile Method+
Ground Anchor

Cutting
blade→
Ø1,000‒1,500 mm
Small Diameter Ø65‒350
Building Anchor
Pile Method mm
Technology

Concave
portion: 5-7 cm
Convexportion: 13-15 cm
GroundFungal hyphae entering
the root of a plant

Average spraying
thickness: 10 cm

Fungal hyphae of VA mycorrhizal fungus

DCS Method

Re-Born Pile Method
Soldier Pile Panel
Wall Method

Sander Bio

Approximately 20 cm in depth
for the development of aroot system

Creating horizontal parts

Rock Bolt Workby SSB

Spore of VA
mycorrhizal fungus

Hole for root system

WinBLADE Method

N-Jet Method

Power Blender Method
盛土

Expacker-N Method

GI Column
MethodRipraplayer
Improved soil
Maximum depth of 13 m

Maximum diameter of
improvement: 2,000 mm

L-Spin Column
MethodShaft

Buried tube

Ø1,200 mm

New Sleeve
Grouting Method

Ø800‒
1,600 mm

Ø1,800‒2,000 mm

Maximum diameter of
improvement: 4,000 mm

ANNUAL REPORT 201913

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field
Bit opens.

Urban Regeneration

Enlarged-Diameter-Type Anchor
Firmly Fixable on Soft GroundConstruction Performance, Method, and Technology

worked on densely packed areas, and contributes to society.

Japan’s Largest-Class
Double-Tube Drill Machine

SSB

EinBand Drill• The ultra-compact double tube drill machine enables drillingat narrow spaces.
• Width for construction work (1.5 m) less than half of a conventional
lightweight drill machine• Drilling bores of Ø165 mm in diameter, which was impossible withlightweight drill machines• Rotary percussion drill that enables drilling of a large diameter of Ø216
mm and a depth of 100 m.
• Features 3 times the torque and 2.5 times the feeding strength compared
to conventional trenchers.
• Achieves high-precision drilling on hard rocks and boulders.

In case of a close siteboundary
Site boundary

Bearing
stratum

Ordinary trencher

4,86

0 mm

2,380 mm

Removal of Existing Piles

Bearing
stratum

In case of a deep
bearing stratum

Re-Born Pile Method

Bearing
stratum
NNTD No. 0375

2,000 mm

Site boundary
NNTD No. 0365

EinBand Drill

2,000 mm

Anchorbody

Conventional Anchor

Splitz Anchor

Ordinary drill machine0m• Achieves high pull-out resistance using a large-diameter anchor.
• Offers an adjustable anchor length via high fixation even on soft ground.
Applications of the Splits Anchor• Lines up enlarged-diameter-bit-recovery-type
anchors.

NITTOC has developed earthquake resistant, liquefaction prevention and existing pile removal method that can be

SSB

Ø 80

Splitz Anchor Methodin the city densely packed with buildings.

1,000 mm

Small Diameter Pile Method• Offers a casting method forpiles of less than Ø350 mm.
• Makes casting possible atnarrow sites (e.g., mountainous
places, slopes and indoor
places).
• Features a lineup of the anchor
combination type in addition to
the pile type.

m

We must promote restructuring in order to revive a city after a severe disaster. It is not an easy projectJapan’s Smallest-Class
Double-Tube Drill Machine

Forming Piles with High Bearing
Power at Narrow Spaces

Received a Fiscal 2015 Confirmation Review and Evaluation as a
Fishery & Public Related Private Technology
Enlarge-diameter drillingwith the opened bit.
NNTD No. 0371

Bearing
stratum• Cuts and removes existing piles and/or
underground structures using two
cutting blades.
• Uses a circumferential all-casing drill.
• Makes secure backfilling possible.
Enlarged-diameter bit

Construction Technology Review and Certification

Earth Retaining Wall Methodthat Combines Soldier Piles with
Concrete Panels

Cutting blade
Architectural Evaluation

Earth Drill with Expanded Base Pile

Soldier Pile Panel Wall Method

Drill machine is operable even with aclearance gap of only 1.5 m.

State of drilling operation

Well Logging System Using a
Drilling BoreDSS Ground Survey Technology• Collects and records various data while bores are drilled and sectionalizes
the ground on a real-time basis.
• Compatible with Wassara AB’s water-powered down-the-hole hammers.

New ACE Method• Makes widening road width orrecovery from a roadside collapse
possible with small cutting volume.
• Provides optional self-supporting
type (wall height up to 4 m) andthe combined use with shoring(wall height up to 10 m).

Conventional-type• Maximum design strength of concrete: 60 N/mm2• Maximum diameter of the expanded base portion: 4,800 mm (shankdiameter of 2,200 mm)

Lightweight-type

Building Anchor Technology
SHS Permanent Ground Anchor Method
STK Permanent Anchor Method
PTC Permanent Ground Anchor Method

Expanded base bucket• Prevents buildings lifting and/or
falling of buildings

DCS Method

WinBLADE Method

N-Jet Method

Expacker-N Method

Power Blender Method
盛土

GI Column
MethodNew Sleeve
Grouting Method

Shaft

Ripraplayer

Buried tube

Ø1,200 mm

14

ANNUAL REPORT 2019

Maximum diameterof improvement:
2,000 mm

Improved soil
Maximum depth of 13 m
Maximum diameter of
improvement: 4,000 mm

L-Spin Column Method

Ø800‒
1,600 mm

Ø1,800‒2,000 mm

ANNUAL REPORT 201915

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field

High-Pressure Injection Mixing
Method to Form Columnar or
Fan-Like Improved Soil

Ultrahigh Pressure Injection
Mixing Method for Large-Diameter
Foundation Improvement

N-Jet Method

SUPERJET Method

NEW• Enables the formation of columnar soil of Ø2,000–4,000 mm (dependingon the ground conditions)• Forms fan-like improved soil through oscillation.
• Cutting width is increased by injecting jets from the 4-stepped nozzle(3-stepped for fan-like soil).
↑

Jet ofhardening
agent

Rotation↑Jet ofhardeningagent

In case of columnar
improved soil

NETIS No. KT-170026-A
Oscillatingrotation

Mechanical Mixing Method Combinedwith High-Pressure Injection Using
an Enlarged Mixing BladeJet ofhardeningagent

L-Spin Column Method• Injects a hardening agent from the nozzle atthe leading edge of an enlarged-diameter
type mixing blade.
• Enables the wrapping construction methodor the diagonal construction method, which
has been problematic for the existing
method.
• Improves the properties of soft groundbelow hard ground by penetrating the hardground.

In case of fan-like
improved soil

Grouting Control andMonitoring Device
Grout Conductor• Forms columnar, improved soil of a maximum diameter of Ø5,000 mm(depending on the ground conditions).
• Reduces the slime volume substantially (compared with previous methods).
• Achieves foundation improvement at high speed and high quality.

Building Technology Certification• Controls up to eight sets of flowmeters and grout pumps.
• 3D display of grouting results by color and size.
• Automatic control of grouting flow rate so as not to overrun designatedpressure limit.

Mechanical Mixing Method
Suitable at Narrow Spaces
GI Column Method NEW• Trencher-type mixing machine• Makes improvement up to 13 m indepth available.
• Makes homogeneous, improved soil
via vertical mixing.

Underground Diameter
Expanding Type Soil-Mixing
Improvement Method

Soldier Pile Panel
Wall Method

Ø 1,200 mm

Foundation Improvement for Long
Permeation/Grouting Intervals
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.

MX grout(5 μm)

Discharge Image
Ordinary Portland
cement(20 μm)Approx.
1m

Valve interval:
33 cm

Polygonpipe

Rock Bolt
Works by SSB

New Sleeve Grouting Method

Splitz Anchor
MethodØ2,200 mm

Ø4,800 mm

Primary
grouting
Secondarygrouting

Extremely ultrafine
particle cement(1.5 μm)

Re-Born Pile Method

New ACE Method

DCS Method

Mixing blade• Attains a large columnar
diameter of 2,000 mm (theCompany’s track record).
• Achieves excellent mixing
power.
• Offers applicability for hardground.

Rotational
direction ofinternal
bladesRotational
direction of
external
blades

CDM-EXCEED Method

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

• Applies to grouting for minor cracks.
• Uses in diverse grouting methods areavailable.

Opposite Direction Mixing-Type
Deep-Layer Mixing Method
Compatible with Hard GroundØ1,600 mm × 2 Axes Large-Diameter
Deep-Layer Mixing Method
Control unit

Extremely Ultrafine
Cement

ANNUAL REPORT 2019(slurry shooting method)

Discharge of cement milk

MX Grout

16Power Blender Method• Single-axis (max. 20 m) slurry mixing method with
Ø800–1,600 mm is available.
• Compact machine size that excels inmaneuverability enables mixing of slurry at
narrow places. (The weight is approximately 30%
compared to large machines for foundation
improvement.)• Control unit that enables a real-time display,
ensuring high-quality slurry mixing.

• Achieves homogeneous soil improvement using a monitoring control system• Avoids underground objects.
• Enables vertical, horizontal and slanting operations.

Three-P Oct• Involves a turbid ground-grouting
material of which a major ingredientis blast-furnace slag.
• Features excellent permeability anddurability.

Fiscal 2011 Recommended Technology (by the New Technology Utilization System
Review Meeting, Ministry of Land, Infrastructure, Transport and Tourism)

Shallow- and Middle-Depth
Layer Mixing Method

WinBLADE Method

High-Permeation, HighStrength, Grouting Material

Anchor Method by
the EinBand Drill

NNTD No. 1275

Operational Management
System for Grouting Method

NEW

Ripraplayer

Construction Technology Review and Certification

NETIS No. QS-100022-VE Technology Promoted for Utilization• Large-diameter formation
ensures considerable costcutting and a reduction in theconstruction period.
• Underground internalpressure from the dischargeof slurry is smoothly
discharged aboveground via
the combined use of air andinternal-pressure-relief blades.

NEW

Internal-pressure-relief blades

NNTD No. 0368

High Capacity and Speedy
Grouting Method as a
Liquefaction Countermeasure
Expacker-N Method• Ensures a reliable permeation point.
• Offers speedy permeation and grouting for an extensive ground area.
• Applicable to a narrow operating area.

Conventional Method(sleeve grouting method)

Soldier Pile Panel Wall Method(combined use with ground anchor)

1) Boring2) Positioning of an
3) Filling of
4) Injection of
external pipe for grouting
geobags
permanent grout
External pipe
for grouting
Formationof a soil
Geobags
packer5) Completionof work

GEO Filter-N

Cutting blade→
Small Diameter
Pile Method＋
Ground Anchor

Ø1,000‒1,500 mm

Splitz Anchor
MethodBuilding Anchor Technology

Injection of
permanent
grout
CasingSmall Diameter Ø65‒
350 mmPile Method
ANNUAL REPORT 201917

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field

Maintenance and Renovation

Received the Inventive Idea & Development Technology Award at the 18th National Land Technology Development Award
NETIS No. QS-110014-VE Technology Promoted for Utilization

NNTD No. 1084

Repair/Reinforcement of Aged Shotcrete Slopes

Method and Technology

New ReSP Method• Keeps existing mortar shotcrete without shaving off existing shotcrete, contributing to
reducing the volume of industrial waste, the construction period and the size of thesafety equipment.
• Sprays organic-fiber-reinforced mortar shotcrete that excels in tenacity.
• Adheres the former and new shotcrete surfaces with shear bolts.

NITTOC specializes in slope related technique which accumulates a brilliant achievement.
Today, in this aging social infrastructure century,
we developed our own diagnostic techniques as well as repair method for the existing slopes.

5. Slope cleaning work

1. Reinforcing bar work
Standard: Reinforcing bar
L = 1,000 mm
Piece/2 m2

6. Organic-fiber-reinforced
mortar spraying workt =7 cm

Shear bolt

We also established a control system that can be coordinates in maintenance work totally.
In addition, we have developed special materials for long distance pumping,

Organic-fiber-reinforced mortar

d
ere
ath )
(We area

2. Rear-void
grouting workhigh strength and introduced in heavy environment,(So

mountain area or long distance tunnel for headrace channel.

undRemoval of loose
portions
Large crack with aconsiderable opening

Reinforcing Slopes with Shotcrete Pressure
Receiving Plates and Rock Bolts

Shotcrete pressurereceiving plate(FSC panel)

Shotcrete Pressure Receiving Plate Method (FSC Panel)
Grouting in
crack

Step

• Pressure receiving plates are formed by combining the fiber-reinforced mortar shotcrete and thereinforcing material.
• As the pressure receiving plates are formed by shotcrete spraying, unevenness adjustment is no longer necessary.
• The layout space in between rock bolts is extendable up to 2 m.

Rock bolt

Drain pipe

roundMax. 2,000

Shear bolt

red gSwelling

Weathe

In addition,
Outflow of earth andsand sediments

Existing sprayedmaterial

Shotcrete portion
with increased
thickness

Cross-section
repairDeformation of frame

Reinforcing
material

DamageFor the Life Elongation of Structures
Ma

und

Void

Tilting

Joint opening

Example ofCountermeasure Work

Existing mortar /shotcrete

4. New installation work of drain pipes

Soun
d gro

Flaking

Displacement of joint)

Groundtion

3. Shear bolt work
Standard: Shear bolt
S12-100
2 pieces/m2

Evaluation of Soundness and Countermeasures for Slope Structures
Faced by the aging of many slope structures constructed in the high economic growth era, the life elongation of such structures is called for.
We propose appropriate countermeasure works depending on the degree of deterioration of the respective slope structures.

por

Existing mortar /concrete

m

0c

x. 5

pro

Ap

x. 2

,000

Ma

x. 2

Installation of reinforcing material

Spraying of fiber-reinforced mortar,000

Unit: mmCompletion of work

*The technology was jointly developed with the Railway Technical Research Institute.

Refer to the Draft of the Overall
Inspection Manual[Part: Load slope work, earth work structures](Reference Material)
Issued in February 2013 by the Road Bureau,
Ministry of Land, Infrastructure,
Transport and Tourism.

Surface coating(to restrict salt or
freezing damage)

Boulder
Kiro Fukeru Method

HiSP Method
Kiro Fukeru Method

New ReSP Method
FSC Panel
Parfait Grout Method

Slope Doctor

Parfait Grout Method

18

ANNUAL REPORT 2019

ANNUAL REPORT 201919

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field

Preventive Maintenance ofConcrete Structures
Frame Doctor Method

NEW• Takes countermeasures for concrete structures such as sprayed slope
frames and pressure receiving plates depending on the degree ofdeterioration.
• Takes preventive maintenance countermeasures via surface coating to
restrict salt or freezing damage.

NNTD No. 0372

NETIS No. HR-140019-A

NNTD No. 0364

Filling Voids with High-Quality
Plastic GroutMortar Shotcrete Possible to
1 km Destination

Mortar Shotcrete at ElevatedPlacesParfait Grout Method

Kiro Fukeru Method

HiSP Method• Underwater-inseparable and plastic grout excels in pressure feeding.
• Features automatic control of the flow rate and pressure of the discharge
volume of the base and plastic materials by the COGMA system.
• Offers four basic mixture variations and special mixtures depending on thepumping distance, desired strength and specific gravity.

• Mortar shotcrete is possible at a rate of 18 N/mm2 or more to a destination
1 km distant, using special materials.
• Stabilizes mortar quality via the automatic control of the flow rate ofmortar and hardening accelerator by the COGMA system.

• Makes shotcrete possible for a long distance and at elevated places using
the pumping shotcrete system (combined with air pumping).
• Ensures stable quality and high strength due to a low level of separation ofmaterials.

Underwater inseparability

Plasticity andself-sustainability

Pumping distance: 700 m in case of
the horizontal
feed only, and
300 m in case thedifference inelevation
between the hoseand the pump is
160 m.
Design strength: 18 N/mm2 or
more

Non-contractility

Before hardening

Pumping distance: 1,000 m(with a hoseextension)
Design strength: 18 N/mm2
or moreAfter hardening

Work Flow
Shaving off
deteriorated portions

COGMA System
NITTOC’s original system
to control the flow rate ofmortar material andhardening accelerator
based on the planned
mixture.

Washing

Grinding andrustproofing of
reinforcing bars

Renovation of thecross-section

Surface coating

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

Japan’s First Steel Wire Cutting &Removal Method for Installed Anchors
Bite Off Method NEW• Japan’s first dedicated system for cutting
ground anchors• Cuts off steel wires of anchors using exclusive
cutting tools and a general-purpose drill
machine.
• Enables removing installed anchors andinstalling new anchors (possible to use
existing pressure receiving structures as well)
Installed anchor

Removal

Newly installed anchor

NNTD No. 0366Aged Shotcrete Slope
Diagnosis System
Slope Doctor

Boulder
Kiro Fukeru Method• Precisely diagnoses the soundness of aged shotcrete slopes through the combination ofseveral relevant surveys.
• Proposes optimum slope designs by reflecting social needs in the results of the diagnosis ofaged shotcrete slopes.

HiSP Method
Kiro Fukeru Method

Analysis method: thermal infrared radiation imaging method, flexural oscillation method
and coring method (combined use depending on the site conditions)

New ReSP Method
FSC Panel
Parfait Grout Method

Slope Doctor

Parfait Grout Method

20

ANNUAL REPORT 2019

ANNUAL REPORT 201921

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Special Features
Improvement of Business Efficiency by Utilizing ICT

Contribution to a Future Project

Utilization of Its Moon-Surface Exploration Technique for Ground Works

Pickup of Futuristic New Technologies: Part 1 -Technology Leveraging 3D Slope Models3D slope data are acquired from among hundreds of photos taken by a drone. By creating models from the 3D data, we
can confirm onsite conditions and finished shapes on a PC screen and prepare cross-sections and extended elevations
without actually climbing the target slope.
Photo on the left:
Before the work
Can be used to confirm thesafety of bedrock slopes andtheir construction planning

Photo on the right:
After completion
Structures can be confirmed
from various directions and indiverse scales• Confirming finished shapes:T he dimensions of structures can be measured on a
PC screen.

• Preparing drawings:

Courtesy of JAXA

Cross-sections and extended elevations can be preparedfrom the 3D model.

Video

Cross-sections

Extendedelevation(10 MB)To utilize this technology in slope works, onsite demos are currently underway at several locations including
Kawamata Dam undertaken by Tokyo Branch.

Visualization of Foundation Improvement via the Utilization of 3D Models
NITTOC utilizes construction history data for foundation improvement works to build a system for further efficiency
improvement of construction, as-built management, etc., and applies the 3D-based system to field operations.
The Grout Conductor (see page 4), a grouting control and monitoring device, enables automatic control of up to eightsets of flowmeters and grout pumps. The 3D display of flow rates and pressures becomes available by scanning the flowrate and injection pressure data from the Grout Conductor using the Grouting Data Control System. In addition, daily
reports and charts can be output, saving the labor of routine data control.
Automatic Control by the Grout Conductor

In-situ application test

NITTOC focuses its research on applying the technology to estimate ground strength using the digging resistance onscrew augers not only for exploration on the moon but also for ground works. NITTOC conducts various tests to apply its
proprietary technology for pile foundation work to ground works.

As-built management: Center distance of beams

Values: Image measurement values(field measurement values)

Indoor model test

*A joint research between NITTOC CONSTRUCTION CO., LTD., Ritsumeikan University and the Japan Aerospace Exploration Agency (JAXA) under the JAXA Space Exploration
Innovation Hub Center joint research “Investigation on Systematization of Estimation Method for Ground Properties Based on Mechanical Data During Earth-auger Drilling”
based on the Support Program for Starting Up Innovation Hub sponsored by the Japan Science and Technology Agency (JST).

Opening of the NITTOC Hasuda Comprehensive Center
NITTOC Hasuda Comprehensive Center has been planned to commemorate the 70th anniversary since the Company’s
establishment, and it was completed in October 2019. The facility will be the new base for reinforcing human resource
development and technological development. The center consists of R&D rooms for technological development, as wellas training facilities for human resource development, accommodation facilities for trainees and an employee dormitory.
The center also has backup office functions of the Headquarters to prepare for possible disasters and as a venue forexchange among employees.
Going forward, NITTOC will leverage the new facility to reinforce concentrated and efficient human resource
development, as well as technological development.

3D Display Using the Grouting Data Control System

Outline of the Building:
Video

ダミー

Name

NITTOC CONSTRUCTION CO.,LTD. Hasuda Comprehensive
CenterLocation

1772-1 Komasaki, Hasuda-shi,
Saitama Prefecture 349-0134

Structureand Scale

RC-structure, three-story
building above groundTotal floor
area

2,999.35 m2

Application

Training room, R&D room,accommodation rooms fortrainees, employee dormitory

1F large conference room

(6.9 MB)
Flow rates and pressures can be checked on an office monitor.

22

ANNUAL REPORT 2019

3D display of diverse information including topographic and geological data visualizes
construction-related information.
You can view GIF videos by scanning the QR code.

Appearance of the NITTOC Hasuda Comprehensive Center

1F large testing room

ANNUAL REPORT 201923

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We Plan to Exhibit

We exhibit our technologies at various technology fairs sponsored by the Ministry of Land, Infrastructure, Transport and Tourism(MLIT), relevant academic societies, and other organizations. At present, we intend to present our technologies at such fairs listed
below in the current fiscal year.
NITTOC considers various technology fairs and exhibitions as ideal venues to showcase its original technology. At such events,
the Company can pitch directly 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 invite you to visit these technology fairs to learn about the latest technological trends and other companies’ technologies fromthe diverse exhibits presented in line with the respective fair themes.
PeriodFairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
GovernanceConsolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Name of Construction
Technology Fair

Organizer

Geofiber Method was chosen as a
“Fiscal 2016 Runner-up Recommended Technology”
by the New Technology Utilization System Review Meeting,
Ministry of Land, Infrastructure, Transport and Tourism.
No. 1 Recommended Technology(27 subjects)
No. 2 Runner-up Recommended
Technology(60 subjects)
No. 3 Technology Promoted for
Evaluation(10 subjects)

Venue

In 2019

1

Financial
Highlights

Our Award-Winning History

Fiscal 2019: Schedule of Fairs Where We Plan to Exhibit

No.

Special Features

Jun. 5 (Wed.) and Jun. 6 (Thurs.)

EE Tohoku ’19

EE Tohoku Executive Committee

2Jul. 16 (Tue.) to Jul. 18 (Thurs.)

Geotechnical Engineering ResearchPresentation Meeting

Japanese Geotechnical Society

Omiya Sonic City

3

Sept. 11 (Wed.) to Sept. 13 (Fri.)GEOTECHNICAL FORUM 2019

Fuji Sankei GroupTokyo Big Sight

4Oct. 2 (Wed.) and Oct. 3 (Thurs.)

Construction Fair Hokuriku 2019 inToyamaHokuriku Regional Development
Bureau, MLIT

Toyama Industrial Exhibition Hall
(Technohall)

Evaluation,
recommendationand selection

Yume Messe Miyagi Hall

Technology Promoted for Utilization(469 subjects)(NETIS-registered technologies:
approximately 3,600 subjects)

A Runner-up Recommended
Technology is highly rated, next toRecommended Technologies andabove Technology Promoted for
Utilization.
Kiyomizu-dera Temple (Kyoto)

5

Oct. 8 (Tue.) and Oct. 9 (Wed.)

Highway Techno Fair 2019

Express Highway Research Foundationof Japan

Fukiage Hall

Aomi Exhibition Hall, Tokyo Big Sight

6Oct. 16 (Wed.) and Oct. 17 (Thurs.)

Construction Technology Fair 2019 in
Chubu

Chubu Regional Development Bureau,
MLIT and Nagoya International Trade
Fair Commission

7

Oct. 23 (Wed.) and Oct. 24 (Thurs.)

Construction Technology Expo 2019
Kinki

The Nikkan Kensetsu Kogyo Shimbun
and Kinki Construction Association

MyDome Osaka

8

Oct. 30 (Wed.) and Oct. 31 (Thurs.)

Nagasaki Construction Technology
Fair

Nagasaki Civil Engineering ResearchCenterMain Arena, Nagasaki Prefectural
General Gymnasium

What is a Runner-up Recommended Technology?

Advantages of the Runner-up Recommended Technology:

Runner-up Recommended Technology refers to new
innovative technologies that have been qualified for
raising the technological level of public and other works
and for which further development is expected in order
to be rated as a Recommended Technology.

- Being qualified for a Runner-up Recommended
Technology allows the technology to be positively
evaluated in the examination process if said technology
is proposed in the “comprehensive evaluation andbidding system.”- In “constructor-proposal-type” bids, additional
points will be granted if the orderer judges
it appropriate to do so.

Reduced CO2 emissions

Utilization of eco-friendly resources
This eco-friendly method takes into account the useof recycled plastic.

Adaptable for diversified building andconstruction configurations
The shotcrete construction method is compatible
for a variety of building and construction
configurations, especially at places where partial
collapse has occurred.

Excellent resistance to freezing
and frozen soil
Surface freezing and soil freezing can be minimized
by use of a continuous fiber-reinforced soil layer incold regions.

24

ANNUAL REPORT 20196
5

1

Features of
the Geofiber
Method4

Since cement is not used for continuous-fiber
reinforced soil, CO2 emissions which are unavoidable
for cement production are controlled. In addition,
the reinforced soil does not deteriorate into
strong alkaline.

3

2

Excellent deformation resistanceAs the material is flexible, slopes are lesssusceptible to earthquakes,
without producing cracks.

Excellent greening andforest-forming power
The root system of plants can grow and extend in
thick continuous fiber-reinforced soil, allowing for anenvironment that can grow into a forest.

ANNUAL REPORT 201925

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Introduction of Domestic Construction Projects (earthquake-proof works and others)

Domestic Construction Projects

Initiatives for Restoration and Reconstruction(earthquake- and disaster-proof works)

No. 497 Fumaneki Area Emergency Restoration Work (Imari-shi, Saga Prefecture)

NITTOC endeavors to contribute to establishing a safe, secure and affluent society by creating new technologies that meetsocial needs in the fields of “Maintenance and Renovation,” “Disaster Prevention and Environmental Conservation” and “Urban
Regeneration.” We are confident that steady achievement of what we can do will contribute to reconstruction from earthquake
disasters, as well as to disaster-proof and disaster-reducing activities.

Initiatives for the Restoration and Reconstruction from the Great
East Japan Earthquake
Forest Maintenance and Improvement for Restoration: Works No. 2702 and No. 2801; Yunokami Area
(Futaba-gun, Fukushima Prefecture)

Before the work

After completion

In October 2018, the slopes along the Nishi-Kyushu Karatsu-Imari Expressway collapsed due to Typhoon Trami. Forest debris
from a slope 80 m long and 20 m high covered the road along the outbound traffic lane. NITTOC undertook restoration andcountermeasure works (mortar shotcrete, slope frame work and bar insertion work). As a result, the road reopened in March 2019.
[Orderer: Saga National Highway Office, Kyushu Regional Development Bureau, MLIT,
Project Overview: Mortar shotcrete work, slope frame work, bar insertion work]
Before the work

Aftercompletion

Following the vehement tremors of the Great East Japan Earthquake, several large-scale slopes collapsed and NITTOC undertook
restoration work. The Company employed the HiSP method, enabling high-quality and high-strength mortar shotcrete in a long
distance and at elevated places, for this work site measuring as high as 150 m.
[Orderer: Fukushima Prefecture Soso District Agriculture and Forestry Office,Project Overview: Sprayed slope frame work, rock bolt work, rockfall prevention network method]

Site Close-up
Hashima Coal Mine Remains No. 70 Building Backfill Work (Nagasaki-shi, Nagasaki Prefecture)

Initiatives for Restoration and Reconstruction
JR Kure Line, Saizaki Area External Disaster Restoration Work (Mihara-shi–Higashihiroshima-shi,
Hiroshima Prefecture)

Under construction

Under
construction

Aftercompletion

The Heavy Rain Event of July 2018 in West Japan caused many landslides. Many slopes collapsed along the JR Kure Line railway,
blocking the means of transport for local residents. After the disaster, restoration work began to reopen rail services, and theCompany participated. The JR Kure Line was fully restored in December 2018.
[Orderer: West Japan Railway Company,
Project Overview: Slope frame work, mortar shotcrete work, anchor work, bar insertion work]

26

ANNUAL REPORT 2019

After completion

NITTOC undertook the backfill work of the lower portion of the former Hashima elementary/junior high school on Hashima Island,
known as Gunkanjima (“warship land”), which was registered as a World Heritage site in 2015. Constructed 60 years ago, thebuilding had aged considerably, and being a World Heritage site, careful execution was required to maintain the status quo without
damage. Attention was paid not only to the school building but to the entire premises including the former playground where workmachinery such as cranes were parked and the revetment. In addition, as the ground was weak, we took care not to use heavy soil
to backfill the underground void and prevent the building from collapsing as part of due safety management for the construction.
[Orderer: Nagasaki-shi,
Project Overview: Air mortar filling work, plastic air mortar filling work]

ANNUAL REPORT 201927

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Overseas Deployment

Overseas Deployment

Feedback from Local Employees
NITTOC strives to keep up with the international society through measures such as vocational training overseas, language training,
temporary transfer of employees to overseas construction sites and education of foreign engineers, mainly persons from Indonesia.
We would like to introduce some of the employees working globally at NITTOC.

Development of Overseas Business
The Republic of Indonesia has a population of
approximately 250 million and continues to record higheconomic growth. However, the social infrastructure
is not yet sufficiently maintained or improved aspresented by the everyday traffic congestion.
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.

Darpito Wibowo

Established a Subsidiary in Indonesia

Affiliation

Since the Jakarta Representative Office was established in September 2012, we conducted surveys and made preparations
to establish a locally incorporated company. Finally, the Company resolved to establish a joint venture with PT PANCA DUTAPRAKARSA, which will undertake the construction business in Indonesia, and both companies entered into a joint ventureagreement in October 2015. PT NITTOC CONSTRUCTION INDONESIA started operation in April 2016.
The Company will conduct order-receiving activity through PT NITTOC CONSTRUCTION INDONESIA, the 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
Trade namePT NITTOC CONSTRUCTION INDONESIA

Representative

Nao Matsumoto

Location

Jakarta Selatan (South Jakarta), 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 398 million)
Note: Calculated at an exchange rate of 1 rupiah = 0.0078 yen

Composition ofshareholders

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

PT NITTOC CONSTRUCTION INDONESIA’s Web site

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

Staff members of the NITTOC
Jakarta Representative Officeand PT NITTOC CONSTRUCTION
INDONESIA28

ANNUAL REPORT 2019

GENERALI TOWER:
Office is on the 16/F of the building

Once a year, the Company holds a safety conferenceby gathering all the employees and relevant workers
to improve their safety awareness.
The photo shows a scene from the conference held on
August 25, 2018, at a hotel conference hall in Jakarta.

Nationality

PT NITTOC CONSTRUCTION
INDONESIA
Indonesia

I joined PT NITTOC CONSTRUCTION
INDONESIA in November 2018as an employee in charge of thetax practices of the Accounting
Department. Before joining thiscompany, I worked at a Japaneseaffiliated general contractor focusedon marine-related business. I am
glad that I can now work at thiscompany with its strength in groundand soil. I expect my knowledge andexperience to further increase overtime.
Shortly after I joined the company,
PT NITTOC CONSTRUCTION
INDONESIA celebrated the third
anniversary of its founding in Ancol,
Jakarta. I attended the celebration
party with my family members.
On that occasion, I was delighted
to enjoy conversation with fellow
staff including the President andsupervisors everybody was so
friendly. I felt truly glad to havejoined the company.
In the future, I’d like to contributeto the further development of thecompany by taking advantage of myknowledge and experience.

Nanang Pujianto
Affiliation
Nationality

Jakarta Representative Office
Indonesia

I graduated from university in 2004
and engaged in the constructionindustry for about 12 years. I joined
NITTOC CONSTRUCTION in June
2015. After joining the company,
my first field experience was theconstruction of ground anchors at
Cilegon.
My present work involves sitebudgeting, the arrangement ofnecessary materials and equipment,
the recruitment of workers andthe monthly reporting of value ofwork done. Although these duties
are difficult, I am enjoying my job
because I can try out new challenges
and it leads to upgrading my skill
set. No other company in Indonesia
possesses the technology that NITTOC
has. It is so interesting to learn newtechnologies with the support of thecompany.
NITTOC’s technologies are ahead of
the peers in Indonesia. I therefore
believe that my mission is to contributeto the development of Indonesia byapplying the company’s technologies.
To this end, I would like to be a
specialist in construction management
by learning a lot at the company.

Angga Daya Satriyo
Affiliation
Nationality

Jakarta Representative Office
Indonesia

I learned of NITTOC CONSTRUCTION
when I encountered a Japaneseemployee loaned from this company
at the construction site of a Japaneseaffiliated general contractor in Bali,
where I was working at that time.
Learning about NITTOC’s technologies
and business from him, gradually, I got
interested in NITTOC and joined thecompany in May 2014. My first field
experience upon joining was Mass
Rapid Transit (MRT)-related works, andsince then I have mainly been engaged
in construction management work.
My dream after joining the company
has been to make this company more
successful and bigger with the allout efforts of all NITTOC employees
including myself. To achieve this, I
would like to aggressively contribute torestoration from the frequent natural
disasters in Indonesia.
I hereby send a wholehearted message
to all NITTOC employees, who may
be called my family members, tocontribute to the development of
the company. “Let our thoughts andactions be wholehearted. Then, we
can overcome any difficulties.”
Let’s work together and achieve
success.

ANNUAL REPORT 201929

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

International Business

Public Relations Activity
In Indonesia, as NITTOC’s presence is still relatively new after having established a representative office, we need to make theCompany well-known locally through various activities. We are therefore committed to active PR activities including presentationsat academic societies, technology presentation meetings targeting domestic general contractors in Indonesia and so on.

Presentation of exhibits at
the Indonesian Society for
Geotechnical Engineering

NITTOC’s booth at the ISGE

NITTOC presented at the technical exhibition booth of the IndonesianSociety for Geotechnical Engineering (ISGE) in November 2018. As
NITTOC’s construction methods are still uncommon in Indonesia, many
guests visited our booth.
Several staff from the Technology Division of the Headquarters in Japanattended to explain the details of NITTOC’s technologies.

Employee Training

Introduction of Overseas
Construction Projects
Since the Jakarta Representative Office was established in Indonesia, we have accumulated a steady record of undertaking
construction projects through the establishment of a subsidiary. We would like to introduce some of the projects we haveundertaken in Indonesia.

Countermeasure Sediment in Wonogiri Multipurpose
DAM Reservoir (II)The Cement Deep Mixing Method (CDM) wasapplied for the first time in Indonesia.
The work site of this project is Wonogiri inCentral Java.
This project targeted foundation improvement of
the embankment, which was newly constructedto counter sand accumulation at the existing dam
reservoir.

An employee training was carried out by dispatching Indonesian staff to the Headquarters in Japan. The staff in charge of safetyattended the health and safety patrol activity onsite to learn how to conduct patrol activities. Engineering staff were trained in
the basics of sales (estimation) through the preparation of initial design stage estimates for order receiving and site visits. The
employees for administrative divisions learned the history of NITTOC and the business flow of the Headquarters.
Orderer
Owner party
Description of the work
Construction period

Ministry of Public Works
HAZAMA ANDO CORPORATIONWIKA JO
CDM
November 2017–November 2018

Lumut Balai Geothermal FCRS and Power Plant

Attending the health and safety patrol

Visiting a materials and equipment center (for the employees of administrative divisions)

Communication Activities
We at NITTOC are active in holding recreational activities to foster a sense of unity among employees.

Geofiber was applied for the first time inIndonesia.
The work site of this project is eight hours by carfrom Palembang on Sumatra Island.
Geofiber was adopted for surface protectionof the reinforced soil wall of the power plantcompartment.

Orderer
Owner party
Description of the work
Construction period
Recreation event for employee family members (November 17, 2018)30

ANNUAL REPORT 2019

PT Pertamina Geothermal Energy
Marubeni Corporation
GeofiberJune 2018-August 2018

Jakarta Kizuna (bonding) Ekiden (relay road race) (September 23, 2018)

ANNUAL REPORT 201931

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

International BusinessSpecial Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Environmental

Environmental Responsibility

Hasang Hydroelectric Power Plant
Labiles Wasserglas (LW) was grouted with the aimof solidifying ground to facilitate the drilling of atunnel for a water channel.
The work site of this project is in the suburbs ofLake Toba in North Sumatra.

Environmental
Policyenvironment to be a resource recycling society. We promote
the research, development, design and study to construct anenvironmental symbiosis society for earth biological including

NITTOC has general power with that specializes in <Disasterhumans.

Prevention and Environmental Conservation>, <Urban• Promote all activities about waste reduction,

Regeneration> and <Maintenance and Renovation>,increase recycling rate, resources saving, energy saving,

listed in one of the management philosophy of contributing

ecosystem conservation, landscape conservation andto the society. Technology Division establishes the followings

environmental friendly products utilization.

issue as our environmental policy based on our management• Comply with environment related laws and regulations,philosophy.

agreements, customer and industry requirements, actively fulfill
social responsibility for environmental protection.

Orderer
Owner party
Description of the work
Construction period

Posco Engineering
Hae Chang Development Co., Ltd.
LW grouting
May 2018-October 2018

Peusangan Hydroelectric Power Plant• Technology Division recognizes global environment• Education for personnel of Technology Division to improveconservation as one of the business activities. We are aim

environmental conservation awareness.

to reduce the load of global environment by improving the• Expose the implementation of environmental policy andenvironmental management system.

environmental conservation activities as needed in order to• Effective utilization of limited resources and reduce the load ofcooperate with customers and the community.

Technology Division Environmental Management System Network
It is a recovery work for a landslide that occurredbeside a hydraulic iron pipe conduit.
The work site of this project is in the Acehprovince located at the northern end ofIndonesia.

General Manager of Technology Division

Environmental
Management Officer
Environmental Committee

Technology Development GroupOperation and Management related to Research,
Business Development and Quality Control
Greening Work
Laboratory
Saitama Laboratory

Environment Committee Bureau
Technology Business GroupOperation and Management related to
Design and Investigation Business
Orderer
Owner party
Description of the work
Construction period

32

ANNUAL REPORT 2019

PT PLN (Persero)
Hyundai–PP JO
Mortar shotcrete, sprayed slope
frames, rock bolts, anchors,
drainage boring
July 2018-Under construction

Resources Management GroupOperation and Management related toAdministration Business

ANNUAL REPORT 201933

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Landscape Conservation Technology of Cultural Property

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Contribution to Society

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.

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.

Aiming to be a company trusted by society, NITTOC is promoting various social contribution activities, of which the major activities
are outlined below.

Tohoku Branch: Guided Tour of the Tohoku Expressway Bridge Beam Repair Work
(Akita, July 2018)
The Tohoku Branch of NITTOC held a guided tour of the locationof bridge beam repair work for the Tohoku Expressway by inviting
30 students from local elementary schools.
The students got on a high elevation work vehicle to directly touchthe bridge beam. Initially, they were nervous and didn’t talk a lot
as they were taken upward to such a high place. However, they
were happy after touching the bridge beams and returning to theground. We hope they had a meaningful extracurricular lesson onthat occasion.

Tohoku Branch: Regeneration and Maintenance Activities for a Seaside Forest
Reserve to Prevent Disasters (Miyagi, April 2018)

Slope seen from the stage of Kiyomizu-dera Temple

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

Utsunomiya Castle Site Park (Tochigi)

Kashima Jingu Shrine (Ibaraki)

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.

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

After the work

34

ANNUAL REPORT 2019

We participate in a reforestation activity for seaside disasterprevention forests, which were washed away by a tsunami causedby the Great East Japan Earthquake. Four years have passed
since the planting program started. The trees have grown to aheight ranging from 1.5 m to 2 m, depending on the location.
Ten employees of the Tohoku Branch worked on maintenanceactivities such as spreading fertilizer and cutting bottom weeds.
Branch members will continue the activity so that the forest willgrow to function as a disaster-prevention forest.

Tokyo Branch: Assistance to a Local Festival (Yoshino Shrine Festival)(Kanagawa, August 2018)
In August 2018, NITTOC’s Tokyo Branch helped out at a festivalorganized by the Yoshino Shrine located near a work site. We
served some beverages including omiki (sake offered to the gods)
and provided the premises of the site office for the assembly of
the parade floats.
The festival was a success, with many participants gathered aroundthe sanctuary amid the festivities. We hope that our activities wereof any help to local residents whom we may have inconvenienced
at times.

After the work

ANNUAL REPORT 201935

Corporate
History

Contribution to Society

Kyushu Branch: Wajiro Tidal Flat Cleanup Activities(Fukuoka, October 2018)
In Fukuoka-shi, the Kyushu Branch of NITTOC is engaged in
activities to clean up ulva seaweed deposits to help conserve
the affluent natural environment of the Wajiro Tidal Flat. Four
employees of the branch including the General Manager
participated in the cleanup activity together with members of the
Civil Engineering & Building Work and Cement sections of the
Kyushu Electric Partners’ Association, totaling 343 participants.
As it was sunny and hot although in October, everybody worked
hard by carrying the heavy ulva while sweating as if doing physicalexercise. We have participated in the cleanup activities for three
years in a row.

Head Office, Tokyo Branch and Others: Cooperated with a Blood Donation Drive(Tokyo, July 2018)
Upon request by the Japanese Red Cross Tokyo Metropolitan
Blood Center, NITTOC held a blood donation drive on July 2, 2018at the conference room of its Head Office, participated not only by
Head Office employees, but also those of the Directly-Controlled
Grout Division, Overseas Business Division and Midori Industry
Co., Ltd. who are located in the same building. From 10:00 in themorning, many volunteers came to measure their blood pressure
and those who passed the checkup with a doctor donated blood.
A total of 43 persons participated in the activity. We will continue
to hold this blood donation drive in the future.

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Overseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

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
Parent company

Customers
Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

Consolidated
subsidiary:
Midori Industries Co., Ltd.

Sales ofmerchandiseand materials,
Non-life
insurance agency

Hiroshima Branch: Cleanup Activities at Roadside Station Akagi Kogen for theSecond Yamanami Kaido Cycling Route Climb Ride (Shimane, August 2018)

Introduction of Domestic
Construction Project

Undertaking
construction

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

Undertaking
construction

ASO CORPORATION
Undertaking
construction

Consolidated
subsidiary:
PT NITTOC
CONSTRUCTION
INDONESIA

Undertaking
construction

Undertaking
construction

Undertaking
construction

NITTOC CONSTRUCTION CO., LTD.
Construction business

The Second Yamanami Kaido Cycling Route Climb Ride, a cycling
convention, was held in August at Akagi Kogen, Iinan-cho in
Shimane Prefecture, a plateau located along the Yamanami
Kaido Cycling Route. Before the event, together with 13 otherparticipants from member companies of the Tonbara MaintenanceCouncil, including NITTOC, we engaged in cleanup activities at
the Roadside Station Akagi Kogen, which was the start/finish line
for the cycling event. We gathered around midday to do somemowing and collect plastic bottles scattered near the road station.

36

ANNUAL REPORT 2019

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 201937

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Corporate Governance

MANAGEMENT MEMBERS
Directors and Vice President

1 Yasunobu Okumiya
President and Representative Director

2 Norihisa Nagai

Directors and Vice President

3 Akira Sakoda
Directors

4 Hiroshi Yamada
Directors

5 Toshikazu Kawaguchi
Directors

6 Masashi Ootsuka
Directors

7 Yasuo Wada
Directors

8 Iwao Aso
Directors

9 Masayuki Watanabe
Directors

10 Katsuo Nakamura
Standing Corporate Auditors

11 Nobuo MatsumotoStanding Corporate Auditors

12 Masayuki Isono
Corporate Auditors

13 Atsushi Ono

13

11

9

3

38

ANNUAL REPORT 2019

7

5

4

2

6

8

10

12

1

ANNUAL REPORT 201939

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management Plan

Financial Highlights

Our Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Special Civil Engineering
OthersOperating income

General Civil Engineering(Millions of yen)

(Millions of yen)

80,000

5,000

6.3%

4,198

Thousands of
U.S. dollars

Net sales
Ordinary income

2015

2016

2017

2018

2019

2019

¥60,703¥57,638¥57,174¥62,943¥63,264$570,001

3,905

3,431

3,555

4,119

4,004

36,075

Profit attributable to owners of parent

1,664

2,110

2,342

2,688

2,721

24,518Comprehensive income

1,694

1,894

2,458

2,668

2,755

24,828

Net assets

18,116

19,781

21,81323,256

24,676

222,333

Total assets

42,30640,38544,225

48,142

49,048441,919

Net cash provided by (used in)operating activities

2,435

(630)

2,501

(301)

3,108

28,004

Net cash provided by (used in)investing activities(277)(1,209)

(393)

(867)

(1,252)(11,280)

Net cash provided by (used in)financing activities(775)(1,592)

(321)

(144)

(1,624)(14,636)

60,00062,943 63,264

60,703

6.5%

4,100

4,000

57,638 57,174

3,465

14,462

13,114

13,346120,250

Ordinary income

Ratio to Net Sales(Millions of yen)

(%)

5,000

7.0
6.5%

6.4%
6.0%

6.0

4,119
4,000

3,905

5.0

4.0

6.2%

3,431

6.3%
6.0
4,004

3,555

5.0

3,000

4.0

40,000
3.0

2,000

3.0

2,000

2.0

2.0

20,000
1,000
1.0

0
2015

2016

2017

2018

0

2019

2015

Net income∙Ratio to Net Sales
Net income

12,681

Corporate
Overview and
Major Construction
Methods

(%)

3,970

3,583

Consolidated Financial
Statements

Ordinary income∙Ratio to Net Sales

6.3%

3,000

0

13,698Financial
Highlights

7.0

1,000

Cash and cash equivalents
at end of period

Corporate
GovernanceRatio to Net Sales

6.9%
6.0%

Millions of yen

Contribution to Society
Corporate
GovernanceOperating income∙Ratio to Net Sales

Net sales

Financial Highlights

International
Business
Environmental

2016

2017

2018

1.0

0

Interest-bearing debt

0
2015

2019

2016

2017

2018

2019

Total net assets∙Equity Ratio

Ratio to Net Sales

Total net assets(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

4,000

7.0

4,000

25,00048.6% 49.0% 48.1%

42.8%

21,813Equity Ratio

50.0%

(%)

50

24,67623,256

6.0

Pipe jacking

4.8%

Private sector

20.5%

1.4%

3,000

3,000
2,668

Groundimprovement

4.1%

21.0%

3.7%

(in net sales)
Government
andpublic sector

79.5%

Maintenanceandrenovation

45.1%

14.7%

Pile foundation

8.4%

4.3%
4.0

15,00030

10,000

20

5,000

10

2,342

2,110

3.0

1,200

1,100

2.0
1,000

1,000

826

1.0

Dam Grouting

4.6%

0

0
2015

ANNUAL REPORT 201918,116

5.0

1,664

Slope
protection

40

2,000
2.7%

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

40

4.2%

2,721

2,000

Public-Private
proportion

19,781

20,000

Others

2016

2017

2018

2019

0
2015

0

0

2016

2017

0
2018

2019

0
2014

2015

2016

2017

2018

ANNUAL REPORT 201941

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

Consolidated Financial Statements, etc.
1. Consolidated Financial Statements
1) Consolidated Balance Sheets
March 31, 2018 and 2019

Thousands of
U.S.Dollars(*)

Millions of yen
2018

2019

2019

2018

2019

2019

*6 12,691*6 12,810

115,417

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits

Notes payable, accounts payable for construction contracts and other

13,114

13,346120,250

Notes receivable, accounts receivable from completed construction contracts and other*6 21,220*6 20,218

182,163

Electronically recorded monetary claims — operating*6 3,462*6 3,688

33,232Merchandise and finished goods

26

13

124

Real estate for sale

0

0

0

1,473

2,002

18,041

Provision for loss on construction contracts

Raw materials and supplies

129

151

1,366

Other

513

516

4,649

Allowance for doubtful accounts

(7)

–

–

39,93339,937359,830

Costs on uncompleted construction contracts

Total current assets
Non-current assets

Short-term loans payable

274

274

2,468

1,169

1,672

15,064

Lease obligations

20

15

141

Income taxes payable

788

884

7,964

Advances received on uncompleted construction contracts

Provision for warranties for completed construction

8

37

336

*4 32

*4 112

1,009

Provision for bonuses

870

974

8,779

Provision for bonuses for directors (and other officers)

26

23

213

Other

4,079

2,829

25,495

Total current liabilities

19,962

19,633

176,892

826

552

4,973

Non-current liabilities
Long-term loans payable

Property, plant and equipment

Lease obligations

37

21

194

4,017

4,125

37,171

42

39

352

4,923

4,738

42,692

24,88524,371

219,585

Capital stock

6,052

6,052

54,531

Buildings and structures, net*1 820*1 1,837

16,559Retirement benefit liability

Machinery, vehicles, tools, furniture and fixtures, net*1 640*1 795

7,164

Other

2,663

2,651

23,886

Total non-current liabilities

*1 58

*1 38

349

Land
Leased assets, net
Construction in progress

Net assets
Shareholders’ equity

386

60

541

Other, net

*3 2

*3 2

18

Capital surplus

2,022

2,022

18,220Total property, plant and equipment

4,570

5,385

48,520Retained earnings

16,10917,496

157,637

438

446

4,020

Treasury shares(1,054)(1,055)(9,507)

Total shareholders’ equity

23,13024,515

220,882

Valuation difference on available-for-sale securities

305

277

2,498

Foreign currency translation adjustment

(29)

(26)

(237)

Remeasurements of defined benefit plans

(265)

(226)

(2,043)

10

24

216

Intangible assets
Investments and other assets
Investment securities

950

914

8,241

Deferred tax assets

1,655

1,772

15,968

Other

674

666

6,001

Allowance for doubtful accounts

(81)

(73)

(663)

Total investments and other assets

3,199

3,279

29,547

8,208

9,111

82,08948,142

49,048441,919

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

42

Thousands of
U.S.Dollars(*)

Millions of yen

ANNUAL REPORT 2019

Accumulated other comprehensive income

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

116

137

1,235

23,256

24,676

222,333

48,142

49,048441,919*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 201943

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal Years Ended March 31, 2018 and 2019

Consolidated Statements of Comprehensive Income
Fiscal Years Ended March 31, 2018 and 2019

Thousands of
U.S.Dollars(*)

Millions of yen
2018

2019

2019

2018

Net sales
Net sales of completed construction contracts
Sales on other businessTotal net sales

Profit62,845

63,119568,697

97

144

1,303

62,94363,264570,001

Cost of sales
Cost of sales of completed construction contracts
Cost of sales on other businessTotal cost of sales*1 52,321*1 52,382

471,959

29

62

563

52,351

52,445472,522

10,523

10,736

96,738

68

82

740

10,591

10,81997,478*2,3 6,491*2,3 6,848

61,704

4,100

3,970

35,7737

988Gross profit
Gross profit on completed construction contracts
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses
Operating profit

Thousands of
U.S.Dollars(*)

Millions of yen
2019

2019

2,669

2,740

24,687

Valuation difference on available-for-sale securities

40

(27)

(251)

Foreign currency translation adjustment

(30)

5

47

Remeasurements of defined benefit plans, net of tax

(10)

38

345

*1 (1)

*1 15

140

2,668

2,755

24,828

2,698

2,735

24,642

(29)

20

185

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

Non-operating income
Interest income
Dividend income

25

31

282

Patent income

33

32

295

Other

12

13

121

Total non-operating income

79

87

787

Non-operating expenses
Interest expenses

16

12

110

Guarantee commission

18

30

276

Foreign exchange losses

20

5

46

Commission for syndicate loan

5

5

48

Other

0

0

3

Total non-operating expenses

60

53

486

4,119

4,004

36,075

*4 1

*4 5

51

1

5

51

Loss on retirement of non-current assets

*5 89

*5 1

16

Impairment loss

*6 131

*6 7

66

221

9

83

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses

Total extraordinary losses
Profit before income taxes

3,899

4,000

36,042

Income taxes - current

1,259

1,388

12,505

Income taxes - deferred

(29)

(127)

(1,150)Total income taxes

1,230

1,260

11,355

Profit

2,669

2,740

24,687

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

(18)

18

168

2,688

2,721

24,518*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

44

ANNUAL REPORT 2019

ANNUAL REPORT 201945

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

3. Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)

Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Millions of yen)

(Millions of yen)

Shareholders’ equity

Balance at beginning of current period

Capital stock

Capital surplus

6,052

2,022

Shareholders’ equity

Retained earnings

Treasury shares

14,144

Total shareholders’equity(552)

21,666

Changes of items during period

Balance at beginning of current period

Capital stock

Capital surplus

6,052

2,022

Retained earnings

Treasury shares

16,109Total shareholders’equity(1,054)

23,130Changes of items during period

Dividends of surplus

(723)

(723)

Dividends of surplus(1,334)(1,334)

Profit attributable to owners of parent

2,688

2,688

Profit attributable to owners of parent

2,721

2,721

(501)

(501)

Purchase of treasury shares

00

Disposal of treasury shares

Purchase of treasury shares
Disposal of treasury shares0

Net changes of items other thanshareholders’ equity

(0)

0

0

Net changes of items other thanshareholders’ equity

Total changes of items during period
Balance at end of current period

0

(0)

–

0

1,964

(501)

1,463

Total changes of items during period

6,052

2,022

16,109(1,054)

23,130

Balance at end of current period

–

0

1,386

(0)

1,385

6,052

2,022

17,496(1,055)24,515(Millions of yen)

(Millions of yen)

Accumulated other comprehensive income

Accumulated other comprehensive income

Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of current period

264

(9)

(254)

0

Non-controllinginterests

146

21,813

Changes of items during period

46

Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeTotal net assets

Balance at beginning of current period

305

(29)

(265)

10

Non-controllinginterests

116

Total net assets

23,256

Changes of items during period

Dividends of surplus(723)

Dividends of surplus(1,334)

Profit attributable to owners of parent

2,688

Profit attributable to owners of parent

2,721

Purchase of treasury shares(501)

Purchase of treasury shares(0)

Disposal of treasury shares

0

Disposal of treasury shares0

Net changes of items other thanshareholders’ equity

40

(20)

(10)

9

(29)

(19)

Net changes of items other thanshareholders’ equity

(27)

3

38

13

20

34

Total changes of items during period

40

(20)

(10)

9

(29)

1,443

Total changes of items during period

(27)

3

38

13

20

1,420

Balance at end of current period

305

(29)

(265)

10

116

23,256

Balance at end of current period

277

(26)

(226)

24

137

24,676

ANNUAL REPORT 2019

ANNUAL REPORT 201947

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

4. Consolidated Statements of Cash Flows
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)

Fiscal Years Ended March 31, 2018 and 2019
(Thousands of U.S.Dollars(*))

Balance at beginning of current period

Capital stock

Capital surplus

54,531

18,220Retained earnings

Total shareholders’equityTreasury shares

145,145(9,499)208,397

Changes of items during period
Dividends of surplus(12,026)

Profit attributable to owners of parent(12,026)

24,51824,518Purchase of treasury shares
Disposal of treasury shares

0

(8)

(8)

0

0

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period–

012,492(8)

12,48454,531

18,220157,637(9,507)

220,882(Thousands of U.S.Dollars(*))

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements
accumulateddifference ontranslationof defined benefit
otheravailable-for-saleadjustment
planscomprehensive
securities
incomeBalance at beginning of current period

2,749

(268)

(2,388)92

Non-controllinginterests

1,049

Total net assets

209,539

2018

Dividends of surplus(12,026)

Profit attributable to owners of parent

24,518Purchase of treasury shares(8)

Disposal of treasury shares0

Net changes of items other thanshareholders’ equity

(251)

30

344

123

185

309

Total changes of items during period

(251)

30

344

123

185

12,794

Balance at end of current period

2,498

(237)

(2,043)

216

1,235

222,333

Profit before income taxes

2019

3,899

4,000

36,042

Depreciation

269

324

2,924

Increase (decrease) in allowance for doubtful accounts

55

(15)

(140)

Increase (decrease) in provision for warranties for completed construction

(16)

29

263

Increase (decrease) in provision for loss on construction contracts

(7)

79

715

Increase (decrease) in provision for bonuses

155

77

700

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

26

23

213

Increase (decrease) in retirement benefit liability

(19)

169

1,528

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

(1)

(5)

(51)

Loss on retirement of non-current assets

89

1

16

Interest and dividend income

(32)

(41)

(370)

Interest expenses

16

12

110

Foreign exchange losses (gains)

16

2

23

Impairment loss

131

7

66

Decrease (increase) in notes and accounts receivable - trade(5,550)

772

6,955

Decrease (increase) in costs on uncompleted construction contracts

750

(529)

(4,768)Decrease (increase) in other assets

34

(9)

(85)

Increase (decrease) in notes and accounts payable - trade

1,532

30

277

Increase (decrease) in advances received on uncompleted construction contracts(2,107)

502

4,523

Increase (decrease) in accrued consumption taxes

1,862(1,626)(14,656)

Increase (decrease) in other liabilities

1

741

6,687

1,105

4,548

40,979Interest and dividend income received

32

41

370

Interest expenses paid

(16)

(12)

(112)

(1,423)(1,468)(13,233)

(301)

3,108

28,004Purchase of investment securities

(54)

(4)

(38)

Purchase of property, plant and equipment(542)(1,260)(11,359)

1

59

533

Payments for retirement of property, plant and equipment

(52)

–

–

Purchase of intangible assets

(231)

(53)

(482)

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from sales of property, plant and equipment

Collection of loans receivable

13

8

77

Payments for guarantee deposits

(13)

(14)

(133)

Proceeds from collection of guarantee deposits

9

5

47

Other, net

1

8

74

(867)

(1,252)(11,280)

Net cash provided by (used in) investing activities

ANNUAL REPORT 20192019

Cash flows from operating activities

Subtotal

Changes of items during period

48

Thousands of
U.S.Dollars(*)

Millions of yen

Shareholders’ equity

ANNUAL REPORT 201949

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

Thousands of
U.S.Dollars(*)

Millions of yen
2018

2019

2019

(Basis of Presenting Consolidated Financial Statements)

Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable

1,100

–

–

–

(274)

(2,468)

(21)

(20)

(184)

0

0

0

Purchase of treasury shares

(501)

(0)

(8)

Cash dividends paid

(722)

(1,329)(11,974)

Net cash provided by (used in) financing activities(144)(1,624)(14,636)

(33)

0

1

Net increase (decrease) in cash and cash equivalents(1,347)

231

2,088

Cash and cash equivalents at beginning of period

14,462

13,114

118,161*1 13,114*1 13,346

120,250

Repayments of lease obligations
Proceeds from disposal of treasury shares

Effect of exchange rate change on cash and cash equivalents

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 forthin 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 ofInternational 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 ¥110.99 to US$1.00, the approximate rate of exchange on March 31, 2019. Suchtranslation 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: 5
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Shimane Earth Engineering Co., Ltd.
Ehime Earth Engineering Co., Ltd.
PT NITTOC CONSTRUCTION INDONESIA(Change in the scope of consolidation)
The Company established Ehime Earth Engineering Co., Ltd. in January 2019, and included this company 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 the consolidated balance sheetdate.

4. Accounting Policies(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 valuation difference are included directly in
net assets. Cost of securities sold is determined by the moving-average method).
Securities without market quotations:
Valued at cost based on the moving-average method.
2) Inventories• MerchandiseStated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated bywriting down the book value based on the decline in profitability.)• Real estate for sale
Stated at cost using the specific identification method (The figures shown in the consolidated balance 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 bywriting down the book value based on the decline in profitability.)

50

ANNUAL REPORT 2019

ANNUAL REPORT 201951

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(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 tobuildings and structures acquired on or after April 1, 2016, and for machinery equipment. The useful lives and the residual value arebased on standards 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 forinternal use is amortized by the straight-line method over the estimated internal useful life (five years).
3) Leased assets
The same depreciation method as that applied to non-current assets owned by the Company is adopted for leased assets of financelease 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 is zero, is adopted for theleased assets of finance lease transactions without transfer of ownership.
(3) Accounting procedure for deferred assets
Deferred organization expenses and business commencement expenses are fully charged to income as incurred.
(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 estimated compensation amountregarding 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 handat 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 the consolidated fiscal year underreview based on the estimated amount to provide for bonuses to employees.
5) Provision for bonuses for directors (and other officers)
The provision for bonuses for directors (and other officers) 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 eligible directors (and other officers).
(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 toperiods 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 (10years) 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.
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 haveadopted the simplified method, according to which the amount of payables for voluntary retirement of all employees at the end of
the period is treated as projected benefit obligation.
(6) 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 theconsolidated fiscal year-end date. The revenue and expense accounts of the overseas subsidiaries are translated into Japanese yen
based on the average exchange rate during the consolidated fiscal year under review, and differences arising from such translation are
included in “Foreign currency translation adjustment” and “Non-controlling interests” as separate components of “Net assets.”

52

ANNUAL REPORT 2019(7) Recognition standards for significant revenues and expenses
Recognition standards for net sales of completed construction contracts and cost of sales of completed construction contracts1) Works for which the outcome of the construction activity is deemed certain with regard to the portion of construction in progress by
the end of the consolidated fiscal year under review
The percentage-of-completion method has been applied to such works (the degree of completion of construction is estimated by
the cost-to-cost method).
2) Other works
The completed-contract method has been applied.
 et sales of completed construction contracts, to which the percentage-of-completion method was applied, were ¥44,269 millionN($398,860 thousand) for the consolidated fiscal year under review.
(8) 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 offluctuation in value.
(9) Other items of significance concerning the preparation of consolidated financial statements
1) Accounting procedure for consumption taxes and others
Transactions subject to consumption tax and local consumption tax are recorded at amounts exclusive of the consumption taxes.
2) Application of consolidated tax return system
The consolidated tax return system is applied.
(Unapplied Accounting Standards, etc.)• Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 issued on March 30, 2018)• Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 issued on March 30, 2018)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed
comprehensive accounting standards for revenue recognition and publicly released “Revenue from Contracts with Customers” (IFRS
No. 15 for IASB; Topic 606 for FASB) in May 2014. Taking into account the circumstances in which IFRS No. 15 became applicablefrom the fiscal year beginning on January 1, 2018, or later, and Topic 606 became applicable from the fiscal year beginning after
December 15, 2017, the Accounting Standards Board of Japan (ASBJ) has developed comprehensive accounting standards for revenue
recognition and announced them together with the implementation guidance.
As a basic guideline for developing accounting standards for revenue recognition, the ASBJ’s starting point in prescribing accounting
standards was to adopt the basic principles under IFRS No. 15, from the perspective of comparability among financial statements,
which is one of the benefits in ensuring consistency with IFRS No. 15. In addition, it was determined that an alternative treatment
shall be added within the scope of not impairing such comparability in case there are any items to which attention should be paid topractices, etc., previously implemented in Japan.
(2) Scheduled date of application
To be applied from the beginning of the consolidated fiscal year ending March 31, 2022.
(3) Impact of applying the said accounting standards, etc.
The impact of applying the “Accounting Standard for Revenue Recognition,” etc., on the consolidated financial statements is currently
being evaluated.
(Change in Presentation Method)(Change due to the application of the Partial Amendments to Accounting Standard for Tax Effect Accounting)The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28 issued on February 16, 2018)
have been applied since the beginning of the fiscal year ended March 31, 2019. Consequently, the presentation method was changed topresent deferred tax assets under the category of “Investments and other assets.”As a result, in the consolidated balance sheet for the fiscal year ended March 31, 2018, ¥523 million in deferred tax assets under current
assets is included in ¥1,655 million in deferred tax assets under Investments and other assets.
Meanwhile, as regards the tax-effect accounting–related notes, the comments of the “Accounting Standards for Tax Effect Accounting,”
which are set forth in Items 3 through 5 of the Partial Amendments to Accounting Standard for Tax Effect Accounting (Note 8) (excluding
the total of valuation reserve amounts) and the details stated in the said comments (Note 9) are added. Provided, however, that the
portion of the said details relative to the previous consolidated fiscal year is not stated in accordance with the transitional treatment,
which is set forth in Item 7 of the Partial Amendments to Accounting Standard for Tax Effect Accounting.

ANNUAL REPORT 201953

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment*6 Notes, etc., matured at the end of the fiscal year under review were settled as of the clearance date or settlement date. The following notes,
etc., matured at the end of the fiscal year are included in the balance as the last day of the fiscal year under review fell on a bank holiday.
As of March 31

As of March 31
2018

2019

2019

¥6,605 million¥6,741 million$60,736 thousand

2 Contingent liabilities(1) The Company guarantees loans payable for the purchase of its properties for sale.

4 properties

2019¥5 million

4 properties

2019¥3 million

2019

2019

Notes receivable¥182 million

270 million$2,434 thousand

Electronically recorded monetary claims — operating¥34 million

22 million$205 thousand

Notes payable¥475 million

420 million$3,785 thousand(Consolidated Statements of Income)*1 Provision for loss on construction contracts included in the cost of sales of completed construction contracts

As of March 31
2018

2018

$30 thousand

Fiscal year ended March 31
2018

2019

2019

¥17 million¥81 million$736 thousand(2) The Company guarantees housing funds, the loans payable of its employees borrowed from banks, in accordance with the Housing Loan
Financing Rules.
*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:

As of March 31
2018

2019

2019

¥7 million¥3 million$34 thousand

Fiscal year ended March 31
Provision for bonuses for directors (and other officers)*3 Reduction entry
The amount of reduction entry, which is subtracted from the acquisition prices of property, plant and equipment due to acceptance of astate subsidy, and the breakdown thereof were as follows:
As of March 31
2018
Other

¥2 million

2019

2019

¥2 million$18 thousand

Millions of yen
2018

Thousands of U.S.Dollars
2019

2019

26

23

213

2,666

2,746

24,749Provision for bonuses

348

396

3,574

Retirement benefit expenses

253

247

2,233

Provision of allowance for doubtful accounts

55

(15)

(140)

Employees’ salaries and allowances*3 Research and development expenses included in general and administrative expenses
Fiscal year ended March 31*4 Presentation of inventories and provision for loss on construction contracts
Fiscal year ended March 31, 2018 (As of March 31, 2018)
Both the costs on uncompleted construction contracts and the provision for loss on construction contracts, which are related toconstruction 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 to generate losses, the amountcorresponding to the provision for loss on construction contracts is ¥23 million.
Fiscal year ended March 31, 2019 (As of March 31, 2019)Both the costs on uncompleted construction contracts and the provision for loss on construction contracts, which are related toconstruction 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 to generate losses, the amountcorresponding to the provision for loss on construction contracts is ¥21 million ($191 thousand).
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
Total amount of the commitment line
Balance of executed loans
Unused balance

54

ANNUAL REPORT 2019

Millions of yen

2018

2019

2019

¥169 million¥241 million$2,173 thousand*4 The breakdown of gain on sales of non-current assets was as follows:
Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

Buildings and structures

–

0

2

Machinery, vehicles, tools, furniture and fixtures

1

1

9

Land

–

4

38

Total

1

5

51

*5 The breakdown of loss on retirement of non-current assets was as follows:
Fiscal year ended March 31

Thousands of U.S.Dollars

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

2018

2019

2019

Buildings and structures

89

1

16

2,200

2,200

19,821

Machinery, vehicles, tools, furniture and fixtures

0

0

0

–

–

Total

89

1

16

2,200

2,200

19,821

ANNUAL REPORT 201955

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements*6 Impairment loss
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
For the fiscal year ended March 31, 2018, the Company reported impairment loss for the following asset group.

(Calculation method of recoverable amounts)
Recoverable amounts for assets planned to be sold are measured by using the net selling price, and the net selling prices are determinedbased on their selling prices, etc., under the relevant respective contracts.

Impairment loss

Use

Type

Location

Assets planned to be sold

Buildings and structures,land, and intangible assets

Takamatsu-shi, Kagawa

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

Fiscal year ended March 31(Grouping method)
The Company has, in principle, grouped business-use assets by department/branch which are the minimum profit-reporting unit andgrouped shared assets such as the head office by the entire business as a profit-reporting unit. Meanwhile, the Company has separately
grouped individual assets such as assets planned to be sold and idle assets.
(Breakdown of impairment loss recognized)
Millions of yen
Building and structures

7

Land

124

Intangible assets

2019

2019

57

(40)

(362)

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

–

–

–

Before tax-effect adjustment

57

(40)

(362)

Amount of tax-effect equivalent

(17)

12

111

Valuation difference on available-for-salesecurities

40

(27)

(251)

Accrued in the fiscal year

(30)

5

47

Foreign currency translation adjustment

(30)

5

47

Foreign currency translation adjustment

0

Total

Thousands of U.S.Dollars

2018

131

Remeasurements of defined benefit plans(Background)The Company, at its Board of Directors meeting, resolved to sell said non-current assets. Consequently, the Company reported an
impairment loss because the value of said assets became lower than their recoverable amounts.
(Calculation method of recoverable amounts)
Recoverable amounts for assets planned to be sold are measured by using the net selling price, and the net selling prices are determinedbased on their selling prices, etc., under the relevant respective contracts.
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)For the fiscal year ended March 31, 2019, the Company reported impairment loss for the following asset group.
Impairment loss
Use

Type

Location

Assets planned tobe sold

Buildings and structures,land, and land

Takamatsu-shi,
KagawaMillions of yen

Thousands of
U.S.Dollars

766

Accrued in the fiscal year

(54)

7

68

Amount of reclassification

39

47

428

Before tax-effect adjustment

(14)

55

496

4

(16)

(152)

Remeasurements of defined benefit plans, netof tax

(10)

38

345

Total other comprehensive income

(1)

15

140

Amount of tax-effect equivalent(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
1. Class and total number of issued shares and of treasury sharesFiscal year ended March 31, 2018

Number of sharesat the beginning

Increase in numberof shares

Decrease in numberof shares

Number of sharesat the end

Issued shares(Grouping method)
The Company has, in principle, grouped business-use assets by department/branch which are the minimum profit-reporting unit andgrouped shared assets such as the head office by the entire business as a profit-reporting unit. Meanwhile, the Company has separately
grouped individual assets such as assets planned to be sold and idle assets.
(Breakdown of impairment loss recognized)
Millions of yen

Thousands of U.S.Dollars

Building and structures

0

3

Land

6

62

Total

7

66

Common shares

43,919,291––

43,919,291

Total

43,919,291––

43,919,291

Common shares

1,352,762

854,22892,206,981

Total

1,352,762

854,22892,206,981

Treasury shares

Notes:
1. The increase in number of treasury shares represents the acquisition of the Company’s own shares pursuant to resolution at theBoard of Directors meeting held on May 19, 2017, and the increase from the purchase of less-than-one-unit shares.
2. The decrease in number of treasury shares represents the decrease due to sales of the Company’s own shares in response to therequest for additional purchase of less-than-one-unit shares by shareholders.

(Background)The Company, at its Board of Directors meeting, resolved to sell said non-current assets. Consequently, the Company reported an
impairment loss because the value of said assets became lower than their recoverable amounts.

56

ANNUAL REPORT 2019

ANNUAL REPORT 201957

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesAnnual Shareholders’ Meetingon June 23, 2017

CommonsharesTotal dividends

Source ofdividends¥723 million

Retainedearnings

Dividend per
share

Record date

Effective
date¥17.00March 31,2017

June 26,2017(2) Dividends for which the record date is during the consolidated fiscal year under review but for which the effective date is after theend of the consolidated fiscal year under review
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meetingon June 22, 2018

Commonshares¥1,001 million

Retainedearnings¥24.00March 31,2018

June 25,2018

Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Class and total number of issued shares and of treasury sharesFiscal year ended March 31, 2019

Number of sharesat the beginning

Increase in numberof shares

Decrease in numberof shares

Number of sharesat the end

Issued shares
Common shares

43,919,291––

43,919,291

Total

43,919,291––

43,919,291

Common shares

2,206,981

1,400

125

2,208,256

Total

2,206,981

1,400

125

2,208,256

Treasury shares

Notes:
1. The increase in number of treasury shares represents the increase from the purchase of less-than-one-unit shares.
2. The decrease in number of treasury shares represents the decrease due to sales of the Company’s own shares in response to therequest for additional purchase of less-than-one-unit shares by shareholders.
2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meetingon June 22, 2018

Commonshares¥1,001 million($9,019 thousand)

Retainedearnings¥24.00March 31,2018

June 25,
2018

Board of Directors meeting held
on November 8, 2018

Commonshares¥333 million($3,006 thousand)

Retainedearnings¥8.00

September 30, November 30,
2018
2018

(2) Dividends for which the record date is during the consolidated fiscal year under review but for which the effective date is after theend of the consolidated fiscal year under review

58

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meetingon June 21, 2019

Commonshares¥917 million($8,267 thousand)

Retainedearnings¥22.00March 312019

June 24,
2019

ANNUAL REPORT 2019

(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

2018

2019

2019

Cash and deposits

13,114

13,346120,250

Cash and cash equivalents

13,114

13,346120,250(Lease Transactions)(Lessee)Finance lease transactions that transfer ownership
1. Details of leased assets
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. Accounting Policies (2) Depreciation methods of major depreciable assets.”
Finance lease transactions that do not transfer ownership
1. Details of leased assets
Property, plant and equipment
Consist mainly 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. Accounting Policies (2) Depreciation methods of major depreciable assets.”(Financial Instruments)
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
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 monetary claims—
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 for payments and are exposed to liquidity risk. Borrowings as funds for capital investments are exposed to market pricefluctuation risk (interest rate risk) 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, andelectronically recorded monetary claims—operating regarding main counterparties at the relevant departments/sections inaccordance with the Credit Exposure Management Rules and the Credit Management Manual. In addition to the management ofcredit 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) and continuously reviews the holding status of suchinvestment 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 handand entering into commitment line agreements with our banks.

ANNUAL REPORT 201959

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

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, 2018, were as follows.
Financial instruments for which it is deemed extremely difficult to measure the market value are not included in the table below. (Refer
to Note 2.)

3. Redemption schedules for monetary receivables and securities with maturity dates after the consolidated balance sheet date (March
31, 2018)(Millions of yen)

Withinone year(Millions of yen)

Carrying value
in the consolidatedbalance sheets(1) Cash and deposits(2) Notes receivable, accounts receivable fromcompleted construction contracts, electronicallyrecorded monetary claims—operating and other(3) Investment securities
Available-for-sale securities
Total assets(1) Notes payable, accounts payable for construction
contracts and otherMarket value

Difference

13,114

13,114–

24,683

24,683

–

804

804

–

38,60238,602–

12,691

12,691–(2) Short-term loans payable

274

274

–

826

826

–

13,791

13,791––––

Total liabilities

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivative transactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims—operatingAs 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 otherAs 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As 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) Long-term loans payableAs these instruments were determined with reference to fixed interest rates and the credit standing of the Company has notchanged much following similar new borrowings. Accordingly, as their market values and book values are considered to be 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
Classification

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

Available-for-sale securities (unlisted stocks)

145T he 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.

60

ANNUAL REPORT 2019

Total

Over five years
and within 10
years

Over 10 years

13,114–––

24,683–––Available-for-sale securities with maturity dates(3) Long-term loans payable
Derivative transactions

Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts, electronicallyrecorded monetary claims—operating and other
Investment securities

Over one year
and within five
years

–

–

–

–

37,797–––

4. The repayment schedules for loans payable and lease obligations after the consolidated balance sheet date (March 31, 2018)
1) Long-term loans payable (excluding the current portion of long-term loans payable)
Classification
Long-term loans payable (Millions of yen)Over one year
and within two
years
274

Over two years
and within three
years
274

Over three years
and within four
years
278

Over four years
and within fiveyears–2) Lease obligations (excluding the current portion of lease obligations)Classification
Lease obligations (Millions of yen)Over one year
and within two
years
15

Over two years
and within three
years
12

Over three years
and within fouryears
9Over four years
and within fiveyears
0Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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 monetary claims—
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 for payments and are exposed to liquidity risk. Borrowings as funds for capital investments are exposed to market pricefluctuation risk (interest rate risk) 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, andelectronically recorded monetary claims—operating regarding main counterparties at the relevant departments/sections inaccordance with the Credit Exposure Management Rules and the Credit Management Manual. In addition to the management ofcredit 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) and continuously reviews the holding status of suchinvestment 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 handand entering into commitment line agreements with our banks.

ANNUAL REPORT 201961

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

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, 2019, were as follows.
Financial instruments for which it is deemed extremely difficult to measure the market value are not included in the table below. (Refer
to Note 2.)(Millions of yen)

Carrying value
in the consolidatedbalance sheets

Market value

Difference

13,346

13,346–23,90623,906

–

768

768

–

38,02238,022–

12,81012,810–(2) Short-term loans payable

274

274

–

(3) Long-term loans payable

552

552

–

13,636

13,636––––(1) Cash and deposits(2) Notes receivable, accounts receivable fromcompleted construction contracts, electronicallyrecorded monetary claims—operating and other(3) Investment securities
Available-for-sale securities
Total assets(1) Notes payable, accounts payable for construction
contracts and otherTotal liabilities
Derivative transactions

Liabilities(1) Notes payable, accounts payable for construction contracts and otherAs 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As 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) Long-term loans payableAs these instruments were determined with reference to fixed interest rates and the credit standing of the Company has notchanged much following similar new borrowings. Accordingly, as their market values and book values are considered to be 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
Classification

Carrying value in the consolidated balance sheets

Available-for-sale securities (unlisted stocks)¥145 million$1,313 thousandT he 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, 2019)(Millions of yen)(Thousands of U.S.Dollars)

Carrying value
in the consolidatedbalance sheets

Market value

Difference

120,250

120,250–

215,395

215,395

–

6,928

6,928

–

342,574

342,574–

115,417

115,417–(2) Short-term loans payable

2,468

2,468

–

(3) Long-term loans payable

4,973

4,973

–

122,859

122,859

–

–

–

–

(1) Cash and deposits(2) Notes receivable, accounts receivable fromcompleted construction contracts, electronicallyrecorded monetary claims—operating and other(3) Investment securities
Available-for-sale securities
Total assets(1) Notes payable, accounts payable for construction
contracts and otherTotal liabilities
Derivative transactions

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivative transactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims—operatingAs 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.”62

ANNUAL REPORT 2019

Withinone yearOver one year
and within five
years

Over five years
and within 10
years

Over 10 years

Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts, electronicallyrecorded monetary claims—operating and other
Investment securities

13,346–––23,906–––

Available-for-sale securities with maturity dates

–

–

–

–

37,253

–

–

–

Total

(Thousands of U.S.Dollars)Withinone year
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts, electronicallyrecorded monetary claims—operating and other
Investment securities
Available-for-sale securities with maturity dates
Total

Over one year
and within five
years

Over five years
and within 10
years

Over 10 years

120,250–––

215,395

–

–

–

–

–

–

–

335,646–––

4. The repayment schedules for loans payable and lease obligations are shown in the “Schedule of Loans Payable,” a consolidated
supplementary statement.

ANNUAL REPORT 201963

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(Securities)
Fiscal year ended March 31, 2018 (As of March 31, 2018)
1. Held-to-maturity debt securities (As of March 31, 2018)
Not applicable

Fiscal year ended March 31, 2019 (As of March 31, 2019)
1. Held-to-maturity debt securities (As of March 31, 2019)
Not applicable
2. Available-for-sale securities (As of March 31, 2019)

2. Available-for-sale securities (As of March 31, 2018)(Millions of yen)
(Millions of yen)

Carrying value inthe consolidatedbalance sheets

Acquisition cost

Difference

361

440

Bonds
National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

801

361

440

3

3

(0)

Other
Subtotal(2) S ecurities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
Shares364

400

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

765

364

400

3

5

(1)

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

Subtotal

3

5

(1)

Total

768

369

399

Bonds

Other
Subtotal(2) S ecurities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
Shares

Bonds
National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

Subtotal

3

3

(0)

Total

804

365

439

Other

Difference

765

Shares801

Acquisition cost(1) S ecurities with carrying value in the consolidatedbalance sheets exceeding acquisition cost(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost
SharesCarrying value inthe consolidatedbalance sheets

Bonds

Other

Note: Shares for which it is deemed extremely difficult to measure the market value
Note: Shares for which it is deemed extremely difficult to measure the market value
Classification

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

Available-for-sale securities (unlisted stocks)

145

Available-for-sale securities (unlisted stocks)

Carrying value in the consolidated balance sheets
Millions of yen

Thousands of U.S.Dollars

145

1,313

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2017 to March 31, 2018)
Not applicable

64

ANNUAL REPORT 2019

ANNUAL REPORT 201965

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(Thousands of U.S.Dollars)
Carrying value inthe consolidatedbalance sheets

Acquisition cost

Difference(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost
6,893

3,280

3,612

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

6,893

3,280

3,612

Shares
Bonds

Other
Subtotal(2) S ecurities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
Shares

46

(12)

Bonds
–

–

–

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

Subtotal

34

46

(12)

Total

6,928

3,327

3,600

Other

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2018 to March 31, 2019)
Not applicable(Derivative Transactions)Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
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.

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

34

National government bonds, local
government bonds, etc.

(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 fortheir employees. 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 onservice period.
In the defined contribution plans, the contribution is clearly sectionalized by individual and the pension benefit amount is determinedbased 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 the multiemployer pension plans, accounting is
processed in a similar manner as that for the defined contribution plans.
At the consolidated subsidiaries, 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.

Service cost

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

4,022

4,017

36,200

245

244

2,201

Interest cost

18

15

142

Accrued amount of actuarial differences

54

(14)

(128)

Retirement benefits paid
Ending balance of projected benefit obligations

(323)

(138)

(1,244)

4,017

4,125

37,171(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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
As of March 31
Projected benefit obligations under unfunded plans
Net carrying value in the consolidated balance sheetsof relevant liabilities and assets
Retirement benefit liability
Net carrying value in the consolidated balance sheetsof relevant liabilities and assets

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

4,017

4,125

37,171

4,017

4,125

37,171

4,017

4,125

37,171

4,017

4,125

37,171

Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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.

66

ANNUAL REPORT 2019

ANNUAL REPORT 201967

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(4) Retirement benefit expenses and the breakdown of the amounts thereof
Fiscal year ended March 31
Service cost

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

245

244

2,201

Interest cost

18

15

142

Amortization of actuarial differences

48

56

506

Amortization of prior service cost

(8)

(8)

(77)

303

307

2,772

Retirement benefit expenses relative to the defined
benefit plans

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contribution plans was ¥157 million
for the fiscal year ended March 31, 2018, and ¥149 million ($1,343 thousand) for the fiscal year ended March 31, 2019.
4. Multiemployer plans
The amount to be contributed under the multiemployer plans of the Japan SOGO Employees’ Pension Fund (former Japan GeotechnicalConsultants Employees’ Pension Fund), of which the accounting is processed in the same manner as that for the defined contributionplans, was ¥151 million for the fiscal year ended March 31, 2018, and ¥142 million ($1,280 thousand) for the fiscal year ended
March 31, 2019. The Japan Geotechnical Consultants Employees’ Pension Fund, with which the Company was affiliated, returned thesubstitutional part of the Employees’ Pension Fund, and the Fund was transferred to the Japan SOGO Employees’ Pension Fund, an
employees’ pension fund with a defined benefit pension plan.
(1) Most recent plan assets reserved under the multiemployer plans(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:
Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2018

2019

(8)

(8)

Prior service cost
Actuarial differences
Total

2019
(77)

(6)

63

574

(14)

55

496

(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:
As of March 31

Millions of yen
2018

Unrecognized prior service cost
Unrecognized actuarial differences
Total

Thousands of U.S.Dollars
2019

2019

32

23

216

(420)

(351)

(3,162)

(388)

(327)

(2,946)(7) Matters regarding plan assets
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable

As of March 31

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

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

18,67819,451

175,250

15,237

15,421

138,940

Net amount

3,440

4,030

36,309(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, 2018: 14.67% (As of March 31, 2017)
Fiscal year ended March 31, 2019: 17.25% (As of March 31, 2018)(3) Supplementary explanation
The major factors of the net amount in Item (1) above were the balance of the prior service liability (¥1,857 million for the fiscal year
ended March 31, 2018, and ¥—million ($—thousand) for the fiscal year ended March 31, 2019) and the general reserve (¥5,297
million for the fiscal year ended March 31, 2018, and ¥4,030 million ($36,309 thousand) for the fiscal year ended March 31, 2019),
based on the pension financing calculation.
The amortization method for the prior service liability under the multiemployer plans is the principal and interest equal amortization
with a 20-year amortization period. The Group amortized the special contribution (¥52 million for the fiscal year ended March 31,
2018, and ¥—million ($—thousand) for the fiscal year ended March 31, 2019), which may be appropriated for said amortization, inthe consolidated financial statements.
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.
(Stock Options)Not applicable

Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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

68

ANNUAL REPORT 2019

2018

2019

0.40%

0.35%

ANNUAL REPORT 201969

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(Tax-Effect Accounting)
1. Breakdown of significant components that caused deferred tax assets and liabilities
As of March 31

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

Millions of yen
2018

Thousands of U.S.Dollars
2019

Fiscal year ended March 31
Effective statutory tax rate

Loss carried forward

5

0

6

(Reconciliation)

Real estate for sale

4

4

41

Accrued enterprise tax

53

58

531

Non-deductible expenses such as entertainment
expenses

Provision for bonuses

308

297

2,684

Allowance for doubtful accounts
Provision for warranties for completed
construction
Provision for loss on construction contracts

8

6

57

2

11

103

9

34

308

Non-current assets (Impairment loss)

61

20

186

Defined contribution pension benefits payable

3

3

33

1,234

1,262

11,371

Unrealized gains

37

35

320

Asset retirement obligation

13

15

136

Other

115

208

1,880

1,858

1,960

17,661

(67)

(65)

(590)

1,790

1,894

17,071

(134)

(122)

(1,102)

Subtotal of deferred tax assets
Valuation reserve
Total of deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-salesecurities
Total of deferred tax liabilities
Net deferred tax assets

2019
(%)

Deferred tax assets

Retirement benefit liability

2018

2019

(134)

(122)

(1,102)

1,655

1,772

15,968

(%)

30.9

30.6

0.6

0.8

Per capita inhabitant tax

3.2

2.8

Exclusion from revenues such as dividend income

(0.0)

(0.0)

Valuation reserve

(0.1)

(0.0)

Special deduction of income tax

(2.5)

(2.1)

Other

(0.5)

(0.6)

Effective income tax rate after the adoption oftax-effect accounting

31.6

31.5

(Asset Retirement Obligation)
End of fiscal year ended March 31, 2018 (As of March 31, 2018)
This information is omitted due to its immateriality.
End of fiscal year ended March 31, 2019 (As of March 31, 2019)
This information is omitted due to its immateriality.
(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
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 andmaterials, and insurance agency. As these businesses are insignificant in terms of information for disclosure and the sole reportablesegment of the Group is the “Construction business,” segment information for these businesses is omitted.
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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 andmaterials, and insurance agency. As these businesses are insignificant in terms of information for disclosure and the sole reportablesegment of the Group is the “Construction business,” segment information for these businesses is omitted.

70

ANNUAL REPORT 2019

ANNUAL REPORT 201971

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements[Related Information]
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
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 ofincome.
(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% or more of the net sales on
the consolidated statements of income.
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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 ofincome.
(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% or more of the net sales on
the consolidated statements of income.

[Related Party Information]
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(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)
Fiscal year ended March 31

2018

2019

Net assets per share¥554.76¥588.33$5.30

Basic earnings per share¥64.13¥65.24$0.59

Diluted earnings per share is notdisclosed as no potential shares exist.

Diluted earnings per share

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

Note: The basis for calculation of “Basic earnings per share” is as follows:
Fiscal year ended March 31

Millions of yen
2018

Thousands of U.S.Dollars
2019

2019

Basic earnings per share
Profit attributable to owners of parent

2,688

2,721

24,518–––

Profit attributable to owners of parent regarding
common shares

2,688

2,721

24,518Average number of commonshares during the fiscal year

41,921

Amounts not attributable to common shareholders(Thousands ofshares)

41,711(Significant Subsequent Events)
Not applicable[Information on Impairment Loss of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
The information is omitted as the reportable segment is solely the construction business.
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
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, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
Not applicable

72

ANNUAL REPORT 2019

ANNUAL REPORT 201973

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements5) [Consolidated Supplementary Statements][Schedule of Bonds Payable]
Not applicable

3. The repayment schedules within five years after the consolidated balance sheet date for lease obligations (excluding the current
portion of lease obligations) are as follows:[Schedule of Loans Payable]

Classification

Short-term loans payable

Beginning balance of the
fiscal year ended
March 31, 2019

Ending balance of the
fiscal year ended
March 31, 2019

Millionsof yenMillionsof yenThousands of
U.S.Dollars

Thousands of
U.S.Dollars

Averageinterest rate(%)

Repayment
deadline

–

–

–

–

–

Current portion of long-term loans
payable

274

2,468

274

2,468

0.25

–

Current portion of lease obligations

20

181

15

141

–

–

Long-term loans payable (excluding
the current portion of long-termloans payable)

826

7,442

552

4,973

0.25

2020–2021

Lease obligations (excluding thecurrent portion of lease obligations)

37

336

21

194

–

2020–2022

Other interest-bearing debt

–

–

–

–

–

–

1,157

10,429

863

7,778

–

–

Notes:
1. The “Average interest rate” for lease obligations is not stated because the amount of lease obligations before subtracting the amountequivalent to interest, which is included in the total lease payment, is reported on the consolidated balance sheets.
2. The repayment schedules within five years after the consolidated balance sheet date for long-term loans payable (excluding thecurrent portion of long-term loans payable) are as follows:
Classification
Long-term loans payable(Millions of yen)Classification
Long-term loans payable(Thousands of U.S.Dollars)

74

ANNUAL REPORT 2019

Over one year
and within two
years
274
Over one year
and within two
years
2,468

Over two years
and within three
years
278
Over two years
and within three
years
2,504

Lease obligations(Millions of yen)Over three years
and within four
years–
Over three years
and within four
years–

Over four years
and within five
years–
Over four years
and within five
years–

Over two years
and within three
years

12
Over one year
and within two
yearsClassification

–

Total

Over one year
and within two
yearsClassification

Lease obligations(Thousands of U.S.Dollars)

9Over two years
and within three
years

108

84

Over three years
and within fouryears
0Over three years
and within fouryears
1Over four years
and within five
years–
Over four years
and within fiveyears–

[Schedule of Asset Retirement Obligation]
This information is omitted due to its immateriality.
(2) [Other]
Quarterly data for the fiscal year ended March 31, 2019
Three months(From April 1, 2018 toJune 30, 2018)

Six months(From April 1, 2018 toSeptember 30, 2018)

Nine months(From April 1, 2018 to
December 31, 2018)

Fiscal year ended
March 31, 2019
(From April 1, 2018 toMarch 31, 2019)12,31026,63844,55063,264

Profit before income
taxes (Millions of yen)

289

1,093

2,718

4,000

Profit attributable toowners of parent(Millions of yen)

148

668

1,767

2,721

Basic earnings per share
(Yen)

3.57

16.03

42.36

65.24

First quarter(From April 1, 2018 toJune 30, 2018)

Second quarter(From July 1, 2018 toSeptember 30, 2018)

Third quarter(From October 1, 2018
to December 31, 2018)

Fourth quarter(From January 1, 2019
to March 31, 2019)

3.57

12.46

26.33

22.88

Cumulative periods
Net sales(Millions of yen)Accounting periods
Quarterly basic earnings
per share (Yen)

ANNUAL REPORT 201975

Corporate
History

Advantageof Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Introduction of Domestic
Construction ProjectOverseas Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society
Corporate
GovernanceCorporate
Governance

Financial
Highlights

Consolidated Financial
Statements

Corporate
Overview and
Major Construction
Methods

Corporate Overview and Major Construction Methods

Trade Name

NITTOC CORPORATION 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:43,919,291
Paid-in capital: ¥6,052 million
Tokyo Stock Exchange: Listed on the First Section

Number of
Employees(Consolidated)

Construction business: 1,167 persons
Other business: 10 persons
Total: 1,177 persons
Notes: 1. Number of employees indicate the number of active employees.
2. The figures in parentheses in the number of employees column indicate the average annual number of temporary employees.

Description ofBusiness

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

LicenseSpecified Construction Business—License No. (Specified-28) 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
Ehime Earth Engineering Co., Ltd.
2-6-12 Amayama ,Matsuyama-shi, Ehime 790-0951
PT NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER GRAND RUBINA BUSINESS PARK at Rasuna Epicentrum 16 G Floor,
Kawasan Rasuna Epicentrum Jl. HR Rasuna Said, 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 1,177
51
650
682
8
309

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

N-Jet Method

High-Pressure Injection Mixing Method to Form Columnar or Fan-Like Improved Soil

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

Bite Off Method

Japan’s First Steel Wire Cutting & Removal Method for Installed Anchors

HiSP Method

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

76

ANNUAL REPORT 2019

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, isused 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 201977