ANNUAL REPORT2014

For the year ended March 31, 2014

HEADQUARTERS
14-14, 8-Chome, Ginza, Chuo-ku, Tokyo 104-0061 Japan
TEL +81-3-3542-9111
FAX +81-3-3542-9119
International Department
TEL +81-3-3542-4567
FAX +81-3-3542-9220
JAKARTA Representative Office
Epicentrum Walk Lantai 5 Unit B515 Jl. HR Rasuna Said, Kuningan,Jakarta
12940, Indonesia
TEL +62 (21) 5610-0988
FAX +62 (21) 2994-1991

NITTOC CONSTRUCTION CO., LTD.

A special technique to harmonize
with a person and society andenvironment for the future.

A Message from the President
Established in 1947 as a firm involved in the foundation work for dam,we atNittoc Construction have since been producing many outstanding records in awide range of civil engineering works for dam,river,road,sewage,water supply
and land development.

In our Nittoc,large numbers of professionals are enrolled respectively as civilengineer,geologist and other specialist,who are also richly experienced in theactual on-site construction works.To meet the requirements of the days,they
have been working hard to develop a variety of innovative technologies and to create related engineering methods
or applications in the sphere of “Environment,Disaster Prevention,Renovation and Maintenance”,the very area ofexpertise the company has been offering to date,in particular.

Displaying all the collective strength upon the united teamwork between the technical or technological staffs andthose involved in the actual on-site works of engineering for the foundation,slope stabilization,soil improvement,geological survey,etc.,we at Nittoc have also been working hard to offer the services of high quality under theauthentication of ISO9001 as the “General Contractor excelling at a Certain Specialized Civil Engineering Work”.

The construction is now under a very harsh climate in the business we’ve never been experiencing before,while
the social needs for national land conservation,preservation of natural environment and furthermore,reinforcement
and maintenance of infrastructure have also been increasing more and more in recent years.

We at Nittoc look on such harsh circumstances as a good opportunity for further development in our businessand thus,exert ourselves to solidify a company’s business foundation and at the same time,make our best efforts
to aim at a highly reliable company in the society by offering the original technologies we possess to be applied
faithfully to the works.

Your cordial support and cooperation to us,Nittoc Construction,will be very much appreciated in advance.

CONTENTSP2

A Message from the President

Tamotsu Nakamori

P3

Our BusinessPresident & Representative Director

P5

Financial Highlights

P7

Corporate Profile

2

Our Business
DISASTER PREVENTION and ENVIRONMENTAL CONSERAVATION· GREENING WORKS

Major
Projects· RIVER & SHORE EMBANKMENT PROTECTION· SLOPE PROTECTION· ROCK SLOPE FAILURE PREVENTION· RETAINING WALL STRUCTURE

Reinforcement of Quay Wall Project
Anchor Works· TEMPORARY ANCHOR WORKS· SLOPE PROTECTION WORKS AND VEGITATION WORKS

Highway Project
Excavation, Slope Protection, Road Work

Japan

Japan

· LANDSLIDE PROTECTION WORKS· ANCHORING· STRUCTURE DIAGNOSISURBAN REGENERATION· GROUND IMPROVEMENT· REINFORCEMENT WORKS AND FOUNDATION ITEM METHOD· FOUNDATION TREATMENT OF WASTE DISPOSAL SITE
Dam Project
Slope Protection, Dam Grouting· LIQUIFICATION PREVENTION MEASURES· PILINGJapan· INDUSTRIAL WASTE RECYCLING· ANCHORING

MAINTENANCE AND RENOVATION· SLOPE REINFORCEMENT· CONCRETE STRUCTURE UPGRADE· REINFORCEMENT OF EXISTING STRUCTURE· DIAGNOSSIS AND INVESTIGATION FOR CONCRETE STRUCTURE· ROCK SLOPE DIAGNOSIS

Sewage ProjectJacking, Ground Improvement (SV)

Hydroelectric Power Station Project
PS-Anchor, Dam Grouting

Indonesia· REPAIRING AND STRUCTUAL IMPROVEMENT

Coal-Fired Power Plant Project
Ground Improvement Method (JSG)

Indonesia

Indonesia

OTHERS· CIVIL ENGINEERING· GROUTING· SURVEY, GEOLOGICAL SURVEY AND DESIGN· APPLIED ENGINEERING· CONSTRUCTION CONSULTANTS
Slope Stability ProjectWell, Drilling & Installation of Drainage Pipe, Piles (SV)· SHIELD JACKING

Joint Research Project to Reduce Environmental
Load for Sustainable Coal Mining Development

VietnamAzerbaijan
3

4Antarctic Expedition ProjectCore Boring

Antarctica

Financial Highlights

Operating income∙Ratio to Net Sales

Net sales

Operating income

Special Civil Engineering
General Civil Engineering
General Building
OthersMillions of yen

2010

2011

2012

Thousands of
U.S. dollars

2013

2014

Ordinary income∙Ratio to Net Sales

Ratio to Net Sales

Ordinary income

Ratio to Net Sales(Millions of yen)

(Millions of yen)(%)

(Millions of yen)(%)

80,000

4,000

7.0

4,000

7.0

2014
6.0

Net sales¥58,577¥50,642¥52,079¥53,247¥57,264$556,398

5.3%
60,000Ordinary income

1,500

1,509

1,877

2,249

2,904

6.0

58,57728,221

3,000

57,26450,642

52,079

5.1%

3,000

53,247

4.6%

3,035

5.0

5.0
2,904
4.2%

Net income

1,444

2,318

1,823

3,532

1,663

3.9%

16,16340,000Comprehensive income

—

2,280

1,838

3,632

1,715

2,438

4.0

4.0
3.6%

3.6%
2,000

16,667

2.8%

3.0%

3.0

1,803

8,269

10,403

12,04415,02916,370

1,877

3.0

2.6%

1,660

Total net assets

2,249

2,000

2,026

159,058

1,509

1,500
2.0
20,000Total assets

35,37435,62036,576

39,111

41,047

1,000

398,833
1.0

Net cash provided by (used in)operating activities

3,784

3,566

723

4,933

1,011

9,832

Net cash provided by (used in)investing activities

(10)

32

(202)

(206)

(189)

(1,837)

Net cash provided by (used in)financing activities(2,538)(1,191)(936)(1,756)(678)(6,592)

0

0
2010

2011

2012

7,170

9,578

9,163

12,132

12,277

119,288

2013

0
2010

2014

Net income∙Ratio to Net Sales
Net income

Cash and cash equivalents at
end of period

2.0
1,000

2011

2012

2013

1.0

0

2014

Interest-bearing debt

0
2010

2011

2012

2013

2014

Total net assets∙Equity Ratio

Ratio to Net Sales

Total net assets

Equity Ratio(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

(%)

4,000

7.0

6,000

20,000

50

6.7%

6.0

3,000

5,000

39.9%

4,810

40

38.4%
15,0003,552

16,370
2,904

5.0

4.6%

32.9%

4,000

3,800

15,029

29.2%
4.0
2,318
2,000

3,086
2.9%

23.4%

3.0

1,823

2.5%

10,000

3,000

3.5%

30
12,044

10,403
20

1,663
1,444

8,269

2,000

2,000

1,600

2.0

5,000

1,000

10
1.0

0

0
2010

5

2011

2012

2013

2014

1,000

0

0
2010

2011

2012

6

2013

2014

0
2010

2011

2012

2013

2014

Corporate Profile(Current as of March 31, 2012)[Business Overview]

CORPORATE OVERVIEWCORPORATE HISTORY

Company Name

NITTOC CONSTRUCTION CO., LTD.

Head Office

14-14, 8-Chome, Ginza, Chuo-ku, Tokyo
104-0061 JapanIn 1938, the construction of Uryuu Dai-ichi Dam for a huge water

1. Overview of Performance, etc.

reservoir with a reservoir capacity of 240 million cubic meters com-

(1) Operating Results

Established

17 December 1947

menced at the foot of Mt. Taisetsu in Hokkaido. The dam was a

Paid-in Capital

6,000 million Yen

gravity type concrete structure 45.5 meters high and in order to

Number of Employees

845 (241)

lead the project to a successful completion, an extraordinary

mainly due to the implementation of aggressive fiscal stimulus and substantial monetary policies. The

President

Tamotsu NAKAMORIBusiness Line

Civil Engineering Works
Slope Protection, Landslide Protection
Works, Revegetation Works
Ground Improvement Methods, Grouting,
Piling, Sewage
Maintenance and Renovation
Construction Consulting, Other

amount of energy was poured into improving existing techniques

construction market was steady with private sector capital investment recovering against a backdrop of

and technologies for the disposal of the breccia-conglomerate at

improved corporate profits, and public construction investment significantly increasing through thethe site of the foundation. A variety of innovative technologies accumulated to date at Nittoc originated through this project.

BRANCH and SALES OFFICES
Branch Locations

Sales Offices(Overseas Office)Sapporo / Tohoku / Tokyo / Hokuriku /Nagoya / Osaka / Hiroshima / Kyushu /Grouting Operation (Project Operation)
Asahikawa / Hakodate / Doto / Aomori /Morioka / Akita / Yamagata / Fukushima /Gunma / Utsunomiya / Mito / Chiba /Saitama / Yokohama / Nagano / Sado /Joetsu / Kanazawa / Fukui / Toyama / Gifu /Mie / Shizuoka / Keiji / Kobe / Nara /Wakayama / Takamatsu / Matsuyama /Kochi / Tottori / Matsue / Okayama /Yamaguchi / Nagasaki / Saga / Oita /Kumamoto / Miyazaki / Kagoshima /Okinawa
Jakarta (Indonesia)

STAFFING (as of 31 March 2014)
717

Administrative Staff

114

Professional Engineer

51

Registered 1st and 2nd Class Civil Engineer

663

Registered 1st and 2nd Class Architect

9

Registered Surveyor and Assistant-Surveyor

252

national resilience.

Company established in Hokkaido by Takuichi MATSUSHITA

In this business climate, under the medium-term management plan “Step II” (fiscal 2011 through fiscal

1953

Renamed Yachiyo Chika Kogyo2013), NITTOC CONSTRUCTION CO., LTD. (the “Company”) and its subsidiaries (collectively, the1957

Headquarters relocated to Tokyo (Minato-ku)“Group”) endeavored to establish stable management foundations, sustained by secure profit-earning

1959

Renamed Nippon Tokushu Doboku Kogyo

capabilities while positioning the strengthening of sales ability and organizational force as pillars of the

1961

Headquarters relocated to Tokyo (Chuo-ku)

Group’s business strategy. Furthermore, the Group prepared for conversion to “Growth” strategy in the

1962

Participated in Mendoza Electric Power Development Project inArgentina

future during the consolidated fiscal year under review, the final year of the medium-term plan, by

1963

Completed Kurobe Dai-yon Dam Project

1964

Established representative office in Hong Kong
(Made into a local subsidiary in the following year)

1967

Concluded business tie-up providing technical guidance in dam
grouting and cooperated with local construction company inTaipei (Taiwan)

Orders received amounted to ¥61,047 million (up 21.0% year over year) due to the reception of orders

Participated in the 12th Antarctic expedition project inAntarctica (Continued to work on a glacier investigation projectin Antarctica, the North Pole and Himalayas until 1983)

Iwate Prefecture, in addition to increases of disaster-prevention and mitigation works, which are the

Total 831
1972

1980
1985

SUBSUDIARIES

implementation of a hefty supplementary budget for fiscal 2012 and the governmental policy of building

1947

1971

Technical Staff

During the fiscal year ended March 31, 2014, the Japanese economy saw an undertone of recovery

Midori Industries Co.,Ltd
13-18, Akashi-Cho, Chuo-ku, Tokyo 104-0044 Japan

Established Nittoc Construction Co., Ltd.
Participated in Parana Hydraulic Power Generation
Development Project (Brazil)
Participated in Agoyan Hydraulic Power Generation
Development Project (Ecuador)
Shares listed on 1st section of Tokyo Stock Exchange
Concluded business tie-up providing technical vegetation andslope protection with local construction company in Taipei(Taiwan)focusing on reinforcing and solidifying previously implemented policies.
As a result, the operating results for the consolidated fiscal year under review were as follows:
1) Orders received and net sales
for works for reconstruction from the earthquake disaster, including large-scale work in Otsuchi-cho,Company’s strength. Net sales were ¥57,264 million (up 7.5% year over year) in line with the increasein orders received.
2) Profits
An increase in profits was recorded, supported by the improvement of profit margins mainly due toincreased orders received with focus on profitability; in addition to increase in net sales regarding
foundation works for disaster-prevention and mitigation. Although expenses increased due to thestrengthening of the International Business Division and the increase in personnel to reinforce sales
activities, operating income increased 24.5% year over year to ¥3,035 million and ordinary income

Shimane Earth Engineering Co.,Ltd124-1, Higashi-Asahi-Cho, Matsue-Shi, Shimane 690-0001 Japan

1988

Yamaguchi Earth Engineering Co.,Ltd
2-3-13, Hirano,Yamaguchi-Shi,Yamaguchi,753-0015 Japan

Established a local corporation to exploit mineral resource
development in Queensland (Australia)

1989

Participated in Marsyangdi Hydroelectric Power Project (Nepal)

decreased 53.2% to ¥1,663 million, mainly affected by the increase in the tax burden arising from the2003

Received ISO9001 certification in Japanelimination of the net loss carried forward for taxation purposes and the reversal of deferred tax assets.

2005

Suspended international business activities

2012

Established international section under company Headquarters
and recommenced international business activities
Established representative office in Jakarta (Indonesia)

MANAGEMENT MEMBERS
President and Representative Director

Tamotsu Nakamori

Directors

Yasunobu Okumiya

Directors

Akira Sakoda

Directors

Sumiteru anda

Directors

Norihisa Nagai

Directors

Hiroshi Yamada

Outside Directors

Satoshi Mizukawa

Outside Directors

Iwao Aso

Standing Corporate Auditors

Manabu Yodoya

Standing Corporate Auditors

Yukiharu Sakumoto

Corporate Auditors

Katsuaki Takiguchi

2013

Reorganized international section(Later formed into International Department)

increased 29.1% to ¥2,904 million. Nevertheless, net income for the fiscal year ended March 31, 2014

(2) Cash flows
Cash and cash equivalents (“net cash”) at the end of the fiscal year ended March 31, 2014 increased¥144 million from the end of the previous consolidated fiscal year to ¥12,277 million. This reflected¥1,011 million in net cash provided by operating activities (compared with cash inflows of ¥4,933
million for the previous consolidated fiscal year), ¥189 million in net cash used in investing activities
1


7

8





(compared with cash outflows of ¥206 million for the previous consolidated fiscal year) and ¥678

which owes much to the original construction method of foundation works for which our

million in net cash used in financing activities (compared with cash outflows of ¥1,756 million for themarketing efforts were successful.

previous consolidated fiscal year). The respective cash flow conditions and their major factors are as
described below.

2) Cost of sales and selling, general and administrative expenses(Cash flows from operating activities)

As for the cost of sales, the cost rate improved by 0.3 percentage point year over year to 86.1%

Net cash provided by operating activities was ¥1,011 million.
This mainly reflected the recording of ¥2,906 million in income before income taxes and minority

despite harsh price competition. Selling, general and administrative expenses increased ¥108
million year over year to ¥4,923 million.

interests, cash-increasing factors including non-cash items such as depreciation of ¥198 million and anincrease in notes and accounts payable - trade of ¥1,401 million, and cash-decreasing factors such as an3) Operating income

increase in notes and accounts receivable - trade of ¥1,947 million, a decrease in advances received on

As a result of the increase in net sales and the improvement of the cost rate, operating income

uncompleted construction contracts of ¥385 million, a decrease in accrued consumption taxes of ¥524

increased ¥596 million year over year to ¥3,035 million.

million and income taxes paid of ¥416 million.
(Cash flows from investing activities)

4) Non-operating income/expenses and extraordinary income/losses

Net cash used in investing activities was ¥189 million.
This was mainly attributable to decreases in cash due to purchase of property, plant and equipmentof ¥113 million and purchase of investment securities of ¥61 million.
(Cash flows from financing activities)

Non-operating income was ¥57 million (down ¥10 million year over year). Non-operating
expenses were ¥188 million (down ¥69 million year over year) due to a decrease in financial
expenses.
Extraordinary income was ¥3 million (down ¥29 million year over year) due to the recording

Net cash used in financing activities was ¥678 million.
This was mainly attributable to decreases in cash due to repayments of long-term loans payable ofof gain on sales of non-current assets. Extraordinary losses were ¥2 million (down ¥1 million
year over year) due to the recording of loss on retirement of non-current assets.

¥400 million and cash dividends paid of ¥252 million.
5) Net income
2. Analysis of Financial Position, Operating Results and Cash FlowsAs a result, net income for the fiscal year ended March 31, 2014 amounted to ¥1,663 million.

Any future forecasts included in the following descriptions are based on the judgment of the Group as of

Net sales, cost rate, selling, general and administrative expenses and the ratio of selling, general

March 31, 2014.

and administrative expenses to net sales for the past five fiscal years were as follows:(1) Significant accounting policies and estimates(Millions of yen, unless otherwise stated)

The Group’s consolidated financial statements are prepared in accordance with accounting principles
generally accepted in Japan. The preparation of the consolidated financial statements requires
management to make certain estimates and judgments that affect the amounts of assets and liabilities atthe end of the consolidated fiscal year, as well as those of revenues and expenses for the consolidated
fiscal year under review. Although management believes that the estimates and judgments are based on
historical business performance and generally accepted methods that are deemed reasonable, and madein a continuous manner, the actual results may differ depending on changes in future circumstances.

Net sales
Cost rate
Selling, general andadministrative
expenses
Ratio of selling, generaland administrative
expenses to net sales

63rd fiscal term
Fiscal year ended
March 31, 2010
58,57788.1%

64th fiscal term
Fiscal year ended
March 31, 2011
50,64287.0%

67th fiscal term
Fiscal year ended
March 31, 2014
57,264
86.1%

4,759

4,578

4,814

4,923

9.0%

9.4%

8.8%

9.0%

8.6%

1) Net sales
Net sales for the consolidated fiscal year under review increased ¥4,016 million year over year
to ¥57,264 million due to orders received for disaster-restoration and reconstruction works,

966th fiscal term
Fiscal year ended
March 31, 2013
53,247
86.4%

5,296

(2) Analysis of operating results for the fiscal year ended March 31, 20142
65th fiscal term
Fiscal year ended
March 31, 2012
52,079
87.3%

3

10


(3) Current status and outlook of the Group’s management strategy(4) Analysis of sources of capital and liquidity

We take pride in that the Company’s comprehensive technological capabilities in the foundation work

The major components of the Group’s capital needs are payments for materials and outsourcing

field, which have been accumulated through numerous disaster-restoration and disaster-prevention

expenses associated with various construction works. The funds necessary to meet the capital

works, as well as the grouting in dam construction works, are top-rated in Japan. Meanwhile, in view ofrequirements are procured with cash flows provided from operating activities. As the volume ofgovernmental policies on national land planning, which pursues the building of safe and secure national

construction works entails seasonal variations, the Group has entered into a commitment line agreement

land, we believe that the raison d’etre of the Company’s technological capabilities are increasing. Taking

with a financial institution of which the upper limit of borrowings is ¥2,200 million, to prepare foradvantage of our technological capabilities, which are the Group’s valuable management resources, wecapital requirements which temporarily exceed cash flows from operating activities. As of March 31,

intend to improve the efficiency of corporate management by fully demonstrating superiority in our

2014, the unused balance of the borrowings relative to the commitment line agreement was ¥2,200

fields of strength which are in environment and disaster prevention. We will endeavor to realize “anmillion and the balance of the “cash and deposits” account was ¥12,277 million. Consequently, we

attractive company” for stakeholders and “a rewarding company” for employees. Furthermore, we will

believe the fund procurement of the Group is sufficient to continue its ordinary business activities.

strive for business continuity as a technology-focused company that can be trusted by customers, withexperienced engineers as experts in environmental and disaster-prevention works.
Although favorable trends in the construction market are expected to continue over the three years
beginning in fiscal 2014, the domestic construction market is expected to scale down with considerable

1) Cash flow status
The status of cash flows of the Group is as described in “Part 1. [Business Overview], 1.
[Overview of Performance, etc.], (2) Cash flows.”

changes in content over the long term, taking into account the aging population with a dwindlingbirthrate and the financial conditions of Japan. In the medium-term management plan “Step III,” which

2) Status of assets, liabilities and net assets

was released on May 9, 2014, we set forth several policies to accomplish the following targets byTotal current assets at the end of the fiscal year ended March 31, 2014 increased ¥1,747 million

positioning the plan coverage period as “a period for firmly establishing business strategies andfrom the end of the previous consolidated fiscal year to ¥31,359 million. A ¥144 millionorganizations to efficiently ensure earnings, in anticipation of changes in the future construction market”

increase in cash and deposits, a ¥1,947 million increase in notes receivable, accounts receivable

under the theme of “Challenge for Growth.”from completed construction contracts and other, and an increase in “other” (inclusive of ¥150
million in consumption taxes receivable), as well as a ¥487 million decrease in deferred tax
assets, were attributable to this increase. Total non-current assets amounted to ¥9,688 million,● Targeted management indices
The management targets in the medium-term management plan “Step III” (fiscal 2014 through fiscal

an increase of ¥188 million from the end of the previous consolidated fiscal year. An increase of2016) are as follows:¥141 million in investment securities was a major contributor to this increase in non-current
assets.

Management targets

Total current liabilities at the end of the consolidated fiscal year under review increased ¥922

1) Marketing targets

million from the end of the previous consolidated fiscal year to ¥18,981 million. The major ・To be the leader in the field of slope protection work

contributors to this increase were a ¥1,401 million increase in notes payable, accounts payable

・20% increase in orders received for ground improvement (compared with fiscal 2013)

for construction contracts and other, and a ¥385 million decrease in advances received on

・Strengthen marketing in the renovation field

uncompleted construction contracts. Total non-current liabilities amounted to ¥5,695 million, a・Develop a presence in the overseas work field

decrease of ¥327 million from the end of the previous consolidated fiscal year. A decrease of¥400 million in long-term loans payable was a major contributor to this decline in non-current

2) Financial targets
・Equity ratio of 45% or more (39.9% for fiscal 2013)

liabilities.
Total net assets at the end of the consolidated fiscal year under review increased ¥1,341

3) Other targets
 ・Operating income margin of 3.5% or more・Dividend payout ratio of 30% or more by the end of the medium-term plan period

million from the end of the previous consolidated fiscal year to ¥16,370 million. This reflected
the reporting of ¥1,663 million in net income and the distribution of dividends totaling ¥255
million.

4

11

5

12





1. Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheets㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻟㻝㻙㻹㼍㼞㻙㻝㻟㻔㼍㼟㻌㼛㼒㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻟㻕㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻟㻝㻙㻹㼍㼞㻙㻝㻠㻔㼍㼟㻌㼛㼒㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕(M illions of yen)

(M illions of yen)㻭㼟㼟㼑㼠㼟
㻯㼡㼞㼞㼑㼚㼠㻌㼍㼟㼟㼑㼠㼟㻯㼍㼟㼔㻌㼍㼚㼐㻌㼐㼑㼜㼛㼟㼕㼠㼟㻺㼛㼠㼑㼟㻌㼞㼑㼏㼑㼕㼢㼍㼎㼘㼑㻘㻌㼍㼏㼏㼛㼡㼚㼠㼟㻌㼞㼑㼏㼑㼕㼢㼍㼎㼘㼑㻌㼒㼞㼛㼙㼏㼛㼙㼜㼘㼑㼠㼑㼐㻌㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼏㼛㼚㼠㼞㼍㼏㼠㼟㻌㼍㼚㼐㻌㼛㼠㼔㼑㼞㻌㻌㻌㻌㻌㻌㻌㻌㻌㻹㼑㼞㼏㼔㼍㼚㼐㼕㼟㼑㻌㼍㼚㼐㻌㼒㼕㼚㼕㼟㼔㼑㼐㻌㼓㼛㼛㼐㼟㻌㻌㻌㻌㻌㻌㻌㻌㻌㻾㼑㼍㼘㻌㼑㼟㼠㼍㼠㼑㻌㼒㼛㼞㻌㼟㼍㼘㼑㻌㻌㻌㻌㻌㻌㻌㻌㻌㻯㼛㼟㼠㼟㻌㼛㼚㻌㼡㼚㼏㼛㼙㼜㼘㼑㼠㼑㼐㻌㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼏㼛㼚㼠㼞㼍㼏㼠㼟㻾㼍㼣㻌㼙㼍㼠㼑㼞㼕㼍㼘㼟㻌㼍㼚㼐㻌㼟㼡㼜㼜㼘㼕㼑㼟㻰㼑㼒㼑㼞㼞㼑㼐㻌㼠㼍㼤㻌㼍㼟㼟㼑㼠㼟㻌㻌㻌㻌㻌㻌㻌㻌㻌㻻㼠㼔㼑㼞㻌㻌㻌㻌㻌㻌㻌㻌㻌㻭㼘㼘㼛㼣㼍㼚㼏㼑㻌㼒㼛㼞㻌㼐㼛㼡㼎㼠㼒㼡㼘㻌㼍㼏㼏㼛㼡㼚㼠㼟㻌㻌㻌㻌㻌㻌㻌㻌㻌㼀㼛㼠㼍㼘㻌㼏㼡㼞㼞㼑㼚㼠㻌㼍㼟㼟㼑㼠㼟㻺㼛㼚㻙㼏㼡㼞㼞㼑㼚㼠㻌㼍㼟㼟㼑㼠㼟㻼㼞㼛㼜㼑㼞㼠㼥㻘㻌㼜㼘㼍㼚㼠㻌㼍㼚㼐㻌㼑㼝㼡㼕㼜㼙㼑㼚㼠㻮㼡㼕㼘㼐㼕㼚㼓㼟㻌㼍㼚㼐㻌㼟㼠㼞㼡㼏㼠㼡㼞㼑㼟㻘㻌㼚㼑㼠㻹㼍㼏㼔㼕㼚㼑㼞㼥㻘㻌㼢㼑㼔㼕㼏㼘㼑㼟㻘㻌㼠㼛㼛㼘㼟㻘㻌㼒㼡㼞㼚㼕㼠㼡㼞㼑㻌㼍㼚㼐㼒㼕㼤㼠㼡㼞㼑㼟㻘㻌㼚㼑㼠㻸㼍㼚㼐㻸㼑㼍㼟㼑㼐㻌㼍㼟㼟㼑㼠㼟㻘㻌㼚㼑㼠㻯㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼕㼚㻌㼜㼞㼛㼓㼞㼑㼟㼟㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻟㻝㻙㻹㼍㼞㻙㻝㻠㻔㼍㼟㻌㼛㼒㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕(Thousands of
U.S.Dollars)㻝㻞㻘㻝㻟㻞

㻝㻞㻘㻞㻣㻣

㻝㻝㻥㻘㻞㻤㻤

㻝㻠㻘㻢㻤㻠

㻝㻢㻘㻢㻟㻝

㻝㻢㻝㻘㻡㻥㻤

㻞㻡
㻜
㻝㻘㻡㻣㻟
㻝㻠㻞
㻤㻟㻣
㻞㻟㻝

㻞㻞
㻜
㻝㻘㻠㻥㻥
㻝㻢㻟
㻟㻠㻥
㻠㻟㻜

㻞㻝㻥
㻜
㻝㻠㻘㻡㻣㻞
㻝㻘㻡㻥㻞
㻟㻘㻠㻜㻜
㻠㻘㻝㻤㻢

㻔㻝㻢㻕

㻔㻝㻢㻕

㻔㻝㻢㻞㻕

㻞㻥㻘㻢㻝㻝

㻟㻝㻘㻟㻡㻥

㻟㻜㻠㻘㻢㻥㻢

㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻟㻝㻙㻹㼍㼞㻙㻝㻟㻟㻝㻙㻹㼍㼞㻙㻝㻠㻟㻝㻙㻹㼍㼞㻙㻝㻠㻔㼍㼟㻌㼛㼒㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻟㻕㻔㼍㼟㻌㼛㼒㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕(M illions of yen)

(M illions of yen)㻔㼍㼟㻌㼛㼒㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕(Thousands of
U.S.Dollars)㻸㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻯㼡㼞㼞㼑㼚㼠㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻺㼛㼠㼑㼟㻌㼜㼍㼥㼍㼎㼘㼑㻘㻌㼍㼏㼏㼛㼡㼚㼠㼟㻌㼜㼍㼥㼍㼎㼘㼑㻌㼒㼛㼞㻌㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㼏㼛㼚㼠㼞㼍㼏㼠㼟㻌㼍㼚㼐㻌㼛㼠㼔㼑㼞㻿㼔㼛㼞㼠㻙㼠㼑㼞㼙㻌㼘㼛㼍㼚㼟㻌㼜㼍㼥㼍㼎㼘㼑㻭㼐㼢㼍㼚㼏㼑㼟㻌㼞㼑㼏㼑㼕㼢㼑㼐㻌㼛㼚㻌㼡㼚㼏㼛㼙㼜㼘㼑㼠㼑㼐㻌㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㼏㼛㼚㼠㼞㼍㼏㼠㼟㻸㼑㼍㼟㼑㻌㼛㼎㼘㼕㼓㼍㼠㼕㼛㼚㼟㻝㻟㻘㻞㻟㻞

㻝㻠㻘㻢㻟㻠

㻝㻠㻞㻘㻝㻤㻥

㻠㻜㻜

㻠㻜㻜

㻟㻘㻤㻤㻢

㻞㻘㻞㻜㻢

㻝㻘㻤㻞㻜

㻝㻣㻘㻢㻤㻤

㻞㻞

㻞㻝

㻞㻝㻟

㻵㼚㼏㼛㼙㼑㻌㼠㼍㼤㼑㼟㻌㼜㼍㼥㼍㼎㼘㼑㻼㼞㼛㼢㼕㼟㼕㼛㼚㻌㼒㼛㼞㻌㼣㼍㼞㼞㼍㼚㼠㼕㼑㼟㻌㼒㼛㼞㻌㼏㼛㼙㼜㼘㼑㼠㼑㼐㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻼㼞㼛㼢㼕㼟㼕㼛㼚㻌㼒㼛㼞㻌㼘㼛㼟㼟㻌㼛㼚㻌㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼏㼛㼚㼠㼞㼍㼏㼠㼟

㻞㻥㻜

㻢㻡㻣

㻢㻘㻟㻥㻜

㻞㻡

㻝㻤

㻝㻣㻠

㻟㻞

㻢㻥

㻢㻣㻣

㻼㼞㼛㼢㼕㼟㼕㼛㼚㻌㼒㼛㼞㻌㼎㼛㼚㼡㼟㼑㼟

㻠㻝㻠

㻠㻣㻣

㻠㻘㻢㻠㻟

㻻㼠㼔㼑㼞

㻝㻘㻠㻟㻡

㻤㻤㻝

㻤㻘㻡㻢㻣

㼀㼛㼠㼍㼘㻌㼏㼡㼞㼞㼑㼚㼠㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻝㻤㻘㻜㻡㻤

㻝㻤㻘㻥㻤㻝

㻝㻤㻠㻘㻠㻟㻝

㻝㻘㻢㻜㻜
㻡㻟

㻝㻘㻞㻜㻜
㻟㻝

㻝㻝㻘㻢㻡㻥
㻟㻜㻡㻺㼛㼚㻙㼏㼡㼞㼞㼑㼚㼠㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻸㼛㼚㼓㻙㼠㼑㼞㼙㻌㼘㼛㼍㼚㼟㻌㼜㼍㼥㼍㼎㼘㼑㻸㼑㼍㼟㼑㻌㼛㼎㼘㼕㼓㼍㼠㼕㼛㼚㼟㻰㼑㼒㼑㼞㼞㼑㼐㻌㼠㼍㼤㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻻㼠㼔㼑㼞㻘㻌㼚㼑㼠㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐

㻝㻘㻜㻣㻠

㻝㻘㻜㻞㻣

㻥㻘㻥㻤㻠

㻼㼞㼛㼢㼕㼟㼕㼛㼚㻌㼒㼛㼞㻌㼞㼑㼠㼕㼞㼑㼙㼑㼚㼠㻌㼎㼑㼚㼑㼒㼕㼠㼟㻺㼑㼠㻌㼐㼑㼒㼕㼚㼑㼐㻌㼎㼑㼚㼑㼒㼕㼠㻌㼘㼕㼍㼎㼕㼘㼕㼠㼥

㻞㻢㻤

㻟㻞㻥

㻟㻘㻞㻜㻜

㻻㼠㼔㼑㼞

㻡㻘㻟㻠㻜
㻟㻟
㻜

㻡㻘㻟㻠㻜
㻞㻡
㻤

㻡㻝㻘㻤㻥㻞
㻞㻠㻟㻤㻟㼀㼛㼠㼍㼘㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻺㼑㼠㻌㼍㼟㼟㼑㼠㼟㼀㼛㼠㼍㼘㻌㼚㼛㼚㻙㼏㼡㼞㼞㼑㼚㼠㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟

㻣㻜

㻥㻤

㻥㻡㻥

㻠㻘㻜㻟㻠
－

－
㻠㻘㻞㻠㻝

㻙
㻠㻝㻘㻞㻝㻠

㻞㻢㻢

㻝㻞㻟

㻝㻘㻞㻜㻟

㻢㻘㻜㻞㻟

㻡㻘㻢㻥㻡

㻡㻡㻘㻟㻠㻞

㻞㻠㻘㻜㻤㻞

㻞㻠㻘㻢㻣㻣

㻞㻟㻥㻘㻣㻣㻠㻞㻞㻝㻥㼀㼛㼠㼍㼘㻌㼜㼞㼛㼜㼑㼞㼠㼥㻘㻌㼜㼘㼍㼚㼠㻌㼍㼚㼐㻌㼑㼝㼡㼕㼜㼙㼑㼚㼠㻵㼚㼠㼍㼚㼓㼕㼎㼘㼑㻌㼍㼟㼟㼑㼠㼟㻵㼚㼢㼑㼟㼠㼙㼑㼚㼠㼟㻌㼍㼚㼐㻌㼛㼠㼔㼑㼞㻌㼍㼟㼟㼑㼠㼟㻵㼚㼢㼑㼟㼠㼙㼑㼚㼠㻌㼟㼑㼏㼡㼞㼕㼠㼕㼑㼟㻰㼑㼒㼑㼞㼞㼑㼐㻌㼠㼍㼤㻌㼍㼟㼟㼑㼠㼟
㻻㼠㼔㼑㼞

㻢㻘㻣㻞㻜
㻞㻜㻢

㻢㻘㻣㻟㻟
㻞㻝㻞

㻢㻡㻘㻠㻞㻠
㻞㻘㻜㻢㻠㻯㼍㼜㼕㼠㼍㼘㻌㼟㼠㼛㼏㼗

㻢㻘㻜㻡㻞

㻢㻘㻜㻡㻞

㻡㻤㻘㻤㻜㻣

㻯㼍㼜㼕㼠㼍㼘㻌㼟㼡㼞㼜㼘㼡㼟㻾㼑㼠㼍㼕㼚㼑㼐㻌㼑㼍㼞㼚㼕㼚㼓㼟

㻞㻘㻜㻞㻞
㻣㻘㻟㻢㻢

㻞㻘㻜㻞㻞
㻤㻘㻣㻣㻠

㻝㻥㻘㻢㻠㻤
㻤㻡㻘㻞㻢㻜

㻡㻢㻢
㻝㻘㻡㻤㻟
㻡㻤㻞

㻣㻜㻤
㻝㻘㻢㻞㻢
㻠㻜㻥

㻢㻘㻤㻤㻝
㻝㻡㻘㻤㻜㻣
㻟㻘㻥㻤㻝㼀㼞㼑㼍㼟㼡㼞㼥㻌㼟㼔㼍㼞㼑㼟㻭㼘㼘㼛㼣㼍㼚㼏㼑㻌㼒㼛㼞㻌㼐㼛㼡㼎㼠㼒㼡㼘㻌㼍㼏㼏㼛㼡㼚㼠㼟

㻔㻝㻡㻥㻕

㻔㻞㻕

㻔㻞㻝㻕

㼀㼛㼠㼍㼘㻌㼕㼚㼢㼑㼟㼠㼙㼑㼚㼠㼟㻌㼍㼚㼐㻌㼛㼠㼔㼑㼞㻌㼍㼟㼟㼑㼠㼟

㻞㻘㻡㻣㻞

㻞㻘㻣㻠㻞

㻞㻢㻘㻢㻠㻤

㻥㻘㻠㻥㻥

㻥㻘㻢㻤㻤

㻥㻠㻘㻝㻟㻢

㼀㼛㼠㼍㼘㻌㼚㼛㼚㻙㼏㼡㼞㼞㼑㼚㼠㻌㼍㼟㼟㼑㼠㼟㼀㼛㼠㼍㼘㻌㼍㼟㼟㼑㼠㼟㻟㻥㻘㻝㻝㻝

㻠㻝㻘㻜㻠㻣

㻟㻥㻤㻘㻤㻟㻟

Shareholders’ equity

Total shareholders’ equity㻭㼏㼏㼡㼙㼡㼘㼍㼠㼑㼐㻌㼛㼠㼔㼑㼞㻌㼏㼛㼙㼜㼞㼑㼔㼑㼚㼟㼕㼢㼑㻌㼕㼚㼏㼛㼙㼑㼂㼍㼘㼡㼍㼠㼕㼛㼚㻌㼐㼕㼒㼒㼑㼞㼑㼚㼏㼑㻌㼛㼚㻌㼍㼢㼍㼕㼘㼍㼎㼘㼑㻙㼒㼛㼞㻙㼟㼍㼘㼑㼟㼑㼏㼡㼞㼕㼠㼕㼑㼟㻾㼑㼙㼑㼍㼟㼡㼞㼑㼙㼑㼚㼠㼟㻌㼛㼒㻌㼐㼑㼒㼕㼚㼑㼐㻌㼎㼑㼚㼑㼒㼕㼠㻌㼜㼘㼍㼚㼟㼀㼛㼠㼍㼘㻌㼍㼏㼏㼡㼙㼡㼘㼍㼠㼑㼐㻌㼛㼠㼔㼑㼞㻌㼏㼛㼙㼜㼞㼑㼔㼑㼚㼟㼕㼢㼑㻌㼕㼚㼏㼛㼙㼑㼀㼛㼠㼍㼘㻌㼚㼑㼠㻌㼍㼟㼟㼑㼠㼟㼀㼛㼠㼍㼘㻌㼘㼕㼍㼎㼕㼘㼕㼠㼕㼑㼟㻌㼍㼚㼐㻌㼚㼑㼠㻌㼍㼟㼟㼑㼠㼟

6

13

7

14

㻔㻡㻟㻥㻕

㻔㻡㻠㻜㻕

㻔㻡㻘㻞㻡㻠㻕

㻝㻠㻘㻥㻜㻞

㻝㻢㻘㻟㻜㻤

㻝㻡㻤㻘㻠㻢㻝

㻝㻞㻢

㻝㻣㻤

㻝㻘㻣㻟㻟

－

㻔㻝㻝㻢㻕

㻔㻝㻘㻝㻟㻢㻕

㻝㻞㻢

㻢㻝

㻡㻥㻢

㻝㻡㻘㻜㻞㻥

㻝㻢㻘㻟㻣㻜

㻝㻡㻥㻘㻜㻡㻤

㻟㻥㻘㻝㻝㻝

㻠㻝㻘㻜㻠㻣

㻟㻥㻤㻘㻤㻟㻟3)[Consolidated Statements of Income and Consolidated Statements of Comprehensive Income][Consolidated Statements f Income][Consolidated Statements of Comprehensive Income]㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻟㻝㻙㻹㼍㼞㻙㻝㻟㻟㻝㻙㻹㼍㼞㻙㻝㻠㻟㻝㻙㻹㼍㼞㻙㻝㻠㻔㼒㼞㼛㼙㻌㻭㼜㼞㼕㼘㻌㻝㻘㻌㻞㻜㻝㻞㼠㼛㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻟㻕㻔㼒㼞㼛㼙㻌㻭㼜㼞㼕㼘㻌㻝㻘㻌㻞㻜㻝㻟㼠㼛㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕㻔㻹㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑㼚㻕㻔㻹㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑㼚㻕㻔㼒㼞㼛㼙㻌㻭㼜㼞㼕㼘㻌㻝㻘㻌㻞㻜㻝㻟㼠㼛㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕㻔㼀㼔㼛㼡㼟㼍㼚㼐㼟㻌㼛㼒㼁㻚㻿㻚㻰㼛㼘㼘㼍㼞㼟㻕㻺㼑㼠㻌㼟㼍㼘㼑㼟㻺㼑㼠㻌㼟㼍㼘㼑㼟㻌㼛㼒㻌㼏㼛㼙㼜㼘㼑㼠㼑㼐㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼏㼛㼚㼠㼞㼍㼏㼠㼟㻿㼍㼘㼑㼟㻌㼛㼚㻌㼛㼠㼔㼑㼞㻌㼎㼡㼟㼕㼚㼑㼟㼟㻡㻟㻘㻝㻟㻥

㼀㼛㼠㼍㼘㻌㼚㼑㼠㻌㼟㼍㼘㼑㼟㻯㼛㼟㼠㻌㼛㼒㻌㼟㼍㼘㼑㼟㻯㼛㼟㼠㻌㼛㼒㻌㼟㼍㼘㼑㼟㻌㼛㼒㻌㼏㼛㼙㼜㼘㼑㼠㼑㼐㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼏㼛㼚㼠㼞㼍㼏㼠㼟㻯㼛㼟㼠㻌㼛㼒㻌㼟㼍㼘㼑㼟㻌㼛㼚㻌㼛㼠㼔㼑㼞㻌㼎㼡㼟㼕㼚㼑㼟㼟㼀㼛㼠㼍㼘㻌㼏㼛㼟㼠㻌㼛㼒㻌㼟㼍㼘㼑㼟㻡㻢㻘㻥㻥㻝

㻡㻡㻟㻘㻣㻠㻤

㻝㻜㻤

㻞㻣㻞

㻞㻘㻢㻠㻥

㻡㻟㻘㻞㻠㻣

㻡㻣㻘㻞㻢㻠

㻡㻡㻢㻘㻟㻥㻤

㻠㻡㻘㻥㻡㻠

㻠㻥㻘㻝㻠㻜

㻠㻣㻣㻘㻠㻢㻞

㻟㻥

㻝㻢㻡

㻝㻘㻢㻜㻥

㻠㻡㻘㻥㻥㻠

㻠㻥㻘㻟㻜㻢

㻠㻣㻥㻘㻜㻣㻝

㻳㼞㼛㼟㼟㻌㼜㼞㼛㼒㼕㼠㻳㼞㼛㼟㼟㻌㼜㼞㼛㼒㼕㼠㻌㼛㼚㻌㼏㼛㼙㼜㼘㼑㼠㼑㼐㼏㼛㼚㼟㼠㼞㼡㼏㼠㼕㼛㼚㻌㼏㼛㼚㼠㼞㼍㼏㼠㼟㻳㼞㼛㼟㼟㻌㼜㼞㼛㼒㼕㼠㻌㻙㻌㼛㼠㼔㼑㼞㻌㼎㼡㼟㼕㼚㼑㼟㼟

㻣㻘㻝㻤㻠

㻣㻘㻤㻡㻝

㻣㻢㻘㻞㻤㻢

㻢㻤

㻝㻜㻣

㻝㻘㻜㻠㻜

㼀㼛㼠㼍㼘㻌㼓㼞㼛㼟㼟㻌㼜㼞㼛㼒㼕㼠㻿㼑㼘㼘㼕㼚㼓㻘㻌㼓㼑㼚㼑㼞㼍㼘㻌㼍㼚㼐㻌㼍㼐㼙㼕㼚㼕㼟㼠㼞㼍㼠㼕㼢㼑㼑㼤㼜㼑㼚㼟㼑㼟

㻣㻘㻞㻡㻟

㻣㻘㻥㻡㻤

㻣㻣㻘㻟㻞㻢

㻠㻘㻤㻝㻠

㻠㻘㻥㻞㻟

㻠㻣㻘㻤㻟㻟

㻻㼜㼑㼞㼍㼠㼕㼚㼓㻌㼕㼚㼏㼛㼙㼑㻺㼛㼚㻙㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼕㼚㼏㼛㼙㼑

㻞㻘㻠㻟㻤

㻟㻘㻜㻟㻡

㻞㻥㻘㻠㻥㻟

㻵㼚㼠㼑㼞㼑㼟㼠㻌㼕㼚㼏㼛㼙㼑㻰㼕㼢㼕㼐㼑㼚㼐㻌㼕㼚㼏㼛㼙㼑

㻞
㻝㻜

㻝
㻝㻞

㻝㻠
㻝㻞㻡

㻼㼍㼠㼑㼚㼠㻌㼕㼚㼏㼛㼙㼑

㻟㻠

㻟㻞

㻟㻝㻡

㻻㼠㼔㼑㼞

㻞㻜

㻝㻜

㻝㻜㻠

㼀㼛㼠㼍㼘㻌㼚㼛㼚㻙㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼕㼚㼏㼛㼙㼑

㻢㻤

㻡㻣

㻡㻢㻜

㻺㼛㼚㻙㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼑㼤㼜㼑㼚㼟㼑㼟㻵㼚㼠㼑㼞㼑㼟㼠㻌㼑㼤㼜㼑㼚㼟㼑㼟

㻣㻠

㻠㻤

㻠㻣㻞

㻳㼡㼍㼞㼍㼚㼠㼑㼑㻌㼏㼛㼙㼙㼕㼟㼟㼕㼛㼚

㻡㻥

㻡㻡

㻡㻠㻞

㻯㼛㼙㼙㼕㼟㼟㼕㼛㼚㻌㼒㼛㼞㻌㼟㼥㼚㼐㼕㼏㼍㼠㼑㻌㼘㼛㼍㼚㻵㼙㼜㼘㼑㼙㼑㼚㼠㼍㼠㼕㼛㼚㻌㼏㼔㼍㼞㼓㼑㻌㼒㼛㼞㼜㼍㼥㼍㼎㼘㼑㼟㻌㼒㼍㼏㼠㼛㼞㼕㼚㼓㻲㼍㼏㼠㼛㼞㼕㼚㼓㻌㼒㼑㼑㻌㼒㼛㼞㻌㼞㼑㼏㼑㼕㼢㼍㼎㼘㼑㼟

㻥㻜

－

㻙

－

㻡㻜

㻠㻤㻡

㻝㻣

㻞㻞

㻞㻝㻟

㻻㼠㼔㼑㼞

㻝㻢

㻝㻞

㻝㻝㻣

㼀㼛㼠㼍㼘㻌㼚㼛㼚㻙㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼑㼤㼜㼑㼚㼟㼑㼟

㻞㻡㻤

㻝㻤㻤

㻝㻘㻤㻟㻞

㻻㼞㼐㼕㼚㼍㼞㼥㻌㼕㼚㼏㼛㼙㼑㻱㼤㼠㼞㼍㼛㼞㼐㼕㼚㼍㼞㼥㻌㼕㼚㼏㼛㼙㼑㻳㼍㼕㼚㻌㼛㼚㻌㼟㼍㼘㼑㼟㻌㼛㼒㻌㼚㼛㼚㻙㼏㼡㼞㼞㼑㼚㼠㼍㼟㼟㼑㼠㼟
㻌㻌㻌㻌㼀㼛㼠㼍㼘㻌㼑㼤㼠㼞㼍㼛㼞㼐㼕㼚㼍㼞㼥㻌㼕㼚㼏㼛㼙㼑

㻞㻘㻞㻠㻥

㻞㻘㻥㻜㻠

㻞㻤㻘㻞㻞㻝

㻟㻞

㻟

㻟㻡

㻟㻞

㻟

㻟㻡

㻟

㻞

㻝㻥

㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻲㼕㼟㼏㼍㼘㻌㼥㼑㼍㼞㻌㼑㼚㼐㼑㼐㻟㻝㻙㻹㼍㼞㻙㻝㻟㻟㻝㻙㻹㼍㼞㻙㻝㻠㻟㻝㻙㻹㼍㼞㻙㻝㻠㻔㼒㼞㼛㼙㻌㻭㼜㼞㼕㼘㻌㻝㻘㻌㻞㻜㻝㻞㻔㼒㼞㼛㼙㻌㻭㼜㼞㼕㼘㻌㻝㻘㻌㻞㻜㻝㻟㻔㼒㼞㼛㼙㻌㻭㼜㼞㼕㼘㻌㻝㻘㻌㻞㻜㻝㻟㼠㼛㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻟㻕㼠㼛㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕㼠㼛㻌㻹㼍㼞㼏㼔㻌㻟㻝㻘㻌㻞㻜㻝㻠㻕㻔㻹㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑㼚㻕㻔㻹㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑㼚㻕

㻟㻘㻡㻡㻞

㻝㻘㻢㻢㻟

㻔㼀㼔㼛㼡㼟㼍㼚㼐㼟㻌㼛㼒㼁㻚㻿㻚㻰㼛㼘㼘㼍㼞㼟㻕㻝㻢㻘㻝㻢㻟

㼂㼍㼘㼡㼍㼠㼕㼛㼚㻌㼐㼕㼒㼒㼑㼞㼑㼚㼏㼑㻌㼛㼚㻌㼍㼢㼍㼕㼘㼍㼎㼘㼑㻙㼒㼛㼞㻙㼟㼍㼘㼑㻌㼟㼑㼏㼡㼞㼕㼠㼕㼑㼟

㻣㻥

㻡㻝

㻡㻜㻟

㼀㼛㼠㼍㼘㻌㼛㼠㼔㼑㼞㻌㼏㼛㼙㼜㼞㼑㼔㼑㼚㼟㼕㼢㼑㻌㼕㼚㼏㼛㼙㼑

㻣㻥

㻡㻝

㻡㻜㻟

㻟㻘㻢㻟㻞

㻝㻘㻣㻝㻡

㻝㻢㻘㻢㻢㻣

㻻㼣㼚㼑㼞㼟㻌㼛㼒㻌㼜㼍㼞㼑㼚㼠

㻟㻘㻢㻟㻞

㻝㻘㻣㻝㻡

㻝㻢㻘㻢㻢㻣

㻹㼕㼚㼛㼞㼕㼠㼥㻌㼕㼚㼠㼑㼞㼑㼟㼠㼟

－

－

㻙

㻵㼚㼏㼛㼙㼑㻌㼎㼑㼒㼛㼞㼑㻌㼙㼕㼚㼛㼞㼕㼠㼥㻌㼕㼚㼠㼑㼞㼑㼟㼠㼟㻻㼠㼔㼑㼞㻌㼏㼛㼙㼜㼞㼑㼔㼑㼚㼟㼕㼢㼑㻌㼕㼚㼏㼛㼙㼑㻯㼛㼙㼜㼞㼑㼔㼑㼚㼟㼕㼢㼑㻌㼕㼚㼏㼛㼙㼑㻯㼛㼙㼜㼞㼑㼔㼑㼚㼟㼕㼢㼑㻌㼕㼚㼏㼛㼙㼑㻌㼍㼠㼠㼞㼕㼎㼡㼠㼍㼎㼘㼑㻌㼠㼛㻱㼤㼠㼞㼍㼛㼞㼐㼕㼚㼍㼞㼥㻌㼘㼛㼟㼟㼑㼟㻌㻌㻌㻌㻸㼛㼟㼟㻌㼛㼚㻌㼞㼑㼠㼕㼞㼑㼙㼑㼚㼠㻌㼛㼒㻌㼚㼛㼚㻙㼏㼡㼞㼞㼑㼚㼠㻌㻌㻌㻌㼍㼟㼟㼑㼠㼟㻌㻌㻌㼀㼛㼠㼍㼘㻌㼑㼤㼠㼞㼍㼛㼞㼐㼕㼚㼍㼞㼥㻌㼘㼛㼟㼟㼑㼟㻵㼚㼏㼛㼙㼑㻌㼎㼑㼒㼛㼞㼑㻌㼕㼚㼏㼛㼙㼑㻌㼠㼍㼤㼑㼟㻌㼍㼚㼐㼙㼕㼚㼛㼞㼕㼠㼥㻌㼕㼚㼠㼑㼞㼑㼟㼠㼟㻵㼚㼏㼛㼙㼑㻌㼠㼍㼤㼑㼟㻌㻙㻌㼏㼡㼞㼞㼑㼚㼠

㻟

㻞

㻝㻥

㻞㻘㻞㻣㻥

㻞㻘㻥㻜㻢

㻞㻤㻘㻞㻟㻣

㻞㻥㻥

㻣㻟㻟

㻣㻘㻝㻞㻤

㻵㼚㼏㼛㼙㼑㻌㼠㼍㼤㼑㼟㻌㻙㻌㼐㼑㼒㼑㼞㼞㼑㼐㻔㻝㻘㻡㻣㻟㻕

㻡㻜㻤

㻠㻘㻥㻠㻠

㼀㼛㼠㼍㼘㻌㼕㼚㼏㼛㼙㼑㻌㼠㼍㼤㼑㼟㻔㻝㻘㻞㻣㻟㻕

㻝㻘㻞㻠㻞㻝㻞㻘㻜㻣㻟

㻵㼚㼏㼛㼙㼑㻌㼎㼑㼒㼛㼞㼑㻌㼙㼕㼚㼛㼞㼕㼠㼥㻌㼕㼚㼠㼑㼞㼑㼟㼠㼟

㻟㻘㻡㻡㻞

㻝㻘㻢㻢㻟

㻝㻢㻘㻝㻢㻟

㻺㼑㼠㻌㼕㼚㼏㼛㼙㼑

㻟㻘㻡㻡㻞

㻝㻘㻢㻢㻟

㻝㻢㻘㻝㻢㻟

8


9


15

16





3) Consolidated Statements of Changes in Net Assets

Fiscal year ended March 31, 2014 (from April 1, 2013 to March 31, 2014)(Thousands of U.S.Dollars)

Fiscal year ended March 31, 2014 (from April 1, 2013 to March 31, 2014)

Shareholders’ equity(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

6,052

Retained earnings

2,022

7,366

Total shareholders’equityTreasury shares(539)

14,902

Capital stock
Balance at beginning ofcurrent period
Changes of items during
period16,163

1,663

1,663

Disposal of treasury shares

(1)

(1)

0

0

Net changes of items otherthan shareholders’ equity

Total changes of items during
periodBalance at end of current
period

－

(0)

1,408

(1)

1,406

6,052

2,022

8,774

(540)

16,308

Total changes of items during
periodBalance at end of current
period

(15)

(15)

1

1

(0)

－
－

(0)

13,680(14)

13,66658,807

19,64885,260(5,254)

158,461

Accumulated other comprehensive income

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-for-salesecurities

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income

126

－

126

Total net assets

15,029Balance at beginning ofcurrent period
Changes of items during
period

1,663

Disposal of treasury shares

Purchase of treasury
shares(1)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity

Total changes of items during
periodBalance at end of current
period

(65)

51

(116)

(65)

1,341

178

(116)

61

16,370

1,230

－

1,230

146,025

Total changes of items during
periodBalance at end of current
period(15)
1503(1,136)

(633)

(633)

503

(1,136)(633)

13,032

1,733(1,136)596

159,058

1017

Total net assets

16,163

Net income(65)

Total accumulated
othercomprehensive
incomeNet income
Purchase of treasury
shares(116)

Remeasurements ofdefined benefit
plans(2,483)(255)

51

Valuationdifference on
available-for-salesecurities

Dividends of surplus

Dividends of surplus

Net changes of items otherthan shareholders’ equity

144,795

16,163

Net income－(5,240)Net income
Purchase of treasury
sharesNet changes of items otherthan shareholders’ equity

71,579(2,483)

(255)

(0)

19,648

Total shareholders’equityTreasury shares(2,483)(255)

Disposal of treasury shares

58,807Retained earnings

Dividends of surplus

Dividends of surplus

Purchase of treasury
sharesCapital surplus

11

18




[Notes]4) [Consolidated Statements of Cash Flows]

（BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS）

Fiscal y ear ended

Fiscal y ear ended

Fiscal y ear ended

31-M ar-13(from Ap ril 1, 2012

31-M ar-14(from Ap ril 1, 2013

31-M ar-14(from Ap ril 1, 2013

to M arch 31, 2013)

to M arch 31, 2014)

to M arch 31, 2014)(M illions of y en)(M illions of y en)(Thousands of U.S.Dollars)

The accompanying consolidated financial statements have been prepared from the accounts maintained by

NITTOC CONSTRUCTION CO., LTD. (the “Company”) and its consolidated subsidiaries inaccordance with the provisions set forth in the Financial Instruments and Exchange Law and its related

Cash flows from op erating activities
Income before income taxes and minority
interests
Dep reciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in p rovision forwarranties for comp leted construction
Increase (decrease) in p rovision for loss on
construction contracts
Increase (decrease) in p rovision for bonuses
Increase (decrease) in p rovision for
retirement benefits
Increase (decrease) in net defined benefit
liability
Loss (gain) on sales of p rop erty , p lant andequip ment
Loss on retirement of p rop erty , p lant andequip mentInterest and dividend income
Interest exp enses
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in costs on uncomp leted
construction contracts
Decrease (increase) in other assets
Increase (decrease) in notes and accounts
p ay able - trade
Increase (decrease) in advances received on
uncomp leted construction contracts
Increase (decrease) in accrued consump tion
taxes
Increase (decrease) in other liabilities
Subtotal

2,279

2,906

28,237

175

198

1,926

(6)

(156)

(1,519)

(6)

(7)

(68)

(24)

37

364

47

63

619

Company is incorporated and mainly operates. The translation of Japanese yen amounts into U.S. dollar(6)(4,034)(39,195)

amounts is included solely for the convenience of readers outside Japan and has been made at the rate of

－

4,060

39,448¥102.92 to US$1.00, the approximate rate of exchange on March 31, 2014. Such translation should not be

(32)

(3)

(35)

construed as a representation that the Japanese yen amounts could be converted into U.S. dollars at that

3

2

19

(13)

(14)

(140)

74

48

472

2,489

(1,947)(18,922)

(344)

73

714

51

(51)

(502)

79

1,401

13,61922(385)(3,748)

325

(524)

(5,099)41(203)(1,975)

5,154

1,463

14,215Interest and dividend income received
Interest exp enses p aid

13
(97)

14
(48)

140
(474)

Income taxes p aid

(137)

(416)

(4,049)

4,933

1,011

9,832

Net cash p rovided by (used in) op erating
activities
Cash flows from investing activities
Purchase of investment securities
Purchase of p rop erty , p lant and equip ment
Proceeds from sales of p rop erty , p lant andequip ment
Purchase of intangible assets
Collection of loans receivable

(2)

(61)

(595)

(207)

(113)

(1,101)

32

3

35

(29)

(26)

(258)

1

0

9

(1)

7

73

(206)

(189)

(1,837)

Cash flows from financing activities
Proceeds from long-term loans p ay able

2,000

－



Rep ay ment of long-term loans p ay able

Other, net
Net cash p rovided by (used in) investing
activities

accounting regulations, and in conformity with accounting principles and practices generally accepted inJapan, 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 theor 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: 2
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Non-consolidated subsidiary:
Shimane Earth Engineering Co., Ltd.
Reason for exclusion from the scope of consolidation
The non-consolidated subsidiary is excluded from the scope of consolidation because it is a small-scalecompany and does not have a material impact on the consolidated financial statements with regard to
the respective sums of total assets, net sales, net income or loss (corresponding to the equity held by
the Company) and retained earnings (corresponding to the equity held by the Company).


(3,086)(400)(3,886)

Rep ay ment of lease obligations

(25)

(24)

(241)

Proceeds from disp osal of treasury shares
Purchase of treasury shares
Cash dividends p aid

0
(472)
(172)

0
(1)
(252)

0
(14)
(2,450)(1,756)(678)(6,592)

2,969

144

1,402

Cash and cash equivalents at beginning of p eriod

9,163

12,132

117,886

Cash and cash equivalents at end of p eriod

12,132

12,277

119,288

Net cash p rovided by (used in) financing
activities
Net increase (decrease) in cash and cash
equivalents

Note: The Company has decided to include all of its subsidiaries in the scope of consolidation effective from theend of the fiscal year ended March 31, 2014 regardless of their importance. This determination is based on
the Group’s focus on further utilizing every subsidiary to aggressively develop order-reception activities by
respecting area-oriented corporate activity requirements at each region in which a subsidiary is located, andtherefore the inclusion of all the subsidiaries would better represent the reality of the entire Group.
According to this policy, Yamaguchi Earth Engineering Co., Ltd., a subsidiary newly established duringthe consolidated fiscal year under review, has been included in the scope of consolidation.

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13
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19

20

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Meanwhile, Shimane Earth Engineering Co., Ltd., which previously was excluded from the scope of
consolidation due to its insignificance, is not simultaneously included during the consolidated fiscal year
under review because of a contradiction with regard to other systems. However, the Group plans to include3) Costs on uncompleted construction contracts
Stated at cost using the specific identification method
4) Raw materials and supplies

it in the scope of consolidation for the fiscal year ending March 31, 2015, during which the contradiction

Stated at cost using the first-in first-out method (The figures shown in the consolidated balance sheetswith the said systems will have been eliminated.

have been calculated by writing down the book value based on the decline in profitability.)

2. Application of the Equity Method(2) Depreciation methods of major depreciable assets

Non-consolidated subsidiary that is not accounted for by the equity method
Shimane Earth Engineering Co., Ltd.

1) Property, plant and equipment (excluding leased assets): The declining-balance method is applied.
However, the straight-line method is adopted for buildings (excluding facilities attached to buildings)

Reason for not applying the equity method

acquired on or after April 1, 1998, and for machinery equipment.

The non-consolidated subsidiary is excluded from the application of the equity method because the

The useful lives and the residual value are based on standards in accordance with methods stipulated in

impact of the non-consolidated subsidiary on net income or loss (corresponding to the equity held by

the Corporation Tax Act.

the Company) and retained earnings (corresponding to the equity held by the Company) for the
consolidated fiscal year under review is negligible, and is immaterial as a whole.

2) Intangible assets (excluding leased assets): The straight-line method is applied.
The useful lives are based on standards in accordance with methods stipulated in the Corporation Tax
Act. Computer software for internal use is amortized by the straight-line method over the estimated

3. Fiscal Years, etc. of Consolidated Subsidiaries

internal useful life (five years).

The year-end date of the fiscal year of the consolidated subsidiaries is March 31, which is the same as theconsolidated balance sheet date.

3) Leased assets
The straight-line method, in which the lease period is utilized as the useful life assuming the residual
value is zero, is adopted for the leased assets of finance lease transactions without transfer of ownership.

4. Standards on Accounting Procedures

Financial lease transactions without transfer of ownership which commenced on or before March 31,(1) Valuation standard and valuation method for significant assets
Securities
1)
2)

2008, are accounted for using the same method as for ordinary operating lease transactions.
(3) Recognition standards for significant reserves

Held-to-maturity debt securities

1) Allowance for doubtful accounts

Amortized cost method (by the straight-line method)

The allowance for doubtful accounts is recorded at an amount of estimated uncollectible receivables

Available-for-sale securities

based on past bad debt experience for general receivables, and by individually considering the

Securities with market quotations:collectibility for certain doubtful receivables including loans with potential default to prepare for

Valued at fair market value as of the consolidated fiscal year-end date (All changes in valuationdifference are included directly in net assets. Cost of securities sold is determined by themoving-average method).

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

Securities without market quotations:compensation amount regarding the net sales of completed construction contracts for the consolidated

Valued at cost based on the moving-average method.
Inventories

fiscal year under review to prepare for expenses such as warranty against defects relative to completed
construction works.

1) Merchandise

3) Provision for loss on construction contracts

Stated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets

The provision for loss on construction contracts is recorded at an estimated loss amount regarding

have been calculated by writing down the book value based on the decline in profitability.)

construction works on hand at the end of the consolidated fiscal year under review for which loss is2) Real estate for sale

expected, and for which the amount can be reasonably estimated, to prepare for possible losses fromStated 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.)

construction contracts that the Group has received orders thereof.
4) Provision for bonuses

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21

15
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22

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The provision for bonuses is recorded at an amount of possible disbursement corresponding to the1) Accounting procedure for consumption taxes and others

consolidated fiscal year under review based on the estimated amount to provide for bonuses toTransactions subject to consumption tax and local consumption tax are recorded at amounts exclusive of

employees.

the consumption taxes.
2) Application of consolidated tax return system(4) Accounting procedure for retirement benefits

The consolidated tax return system is applied.

1) Method of allocating the projected retirement benefits to periods
In calculating the projected benefit obligation, the straight-line attribution is used to allocate the projected(Change in Accounting Policies)

retirement benefits to periods up to the end of the consolidated fiscal year under review.

(Application of the Accounting Standards for Retirement Benefits)2) Amortization method for actuarial gains/losses and prior service cost

The “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012; hereinafter the

Actuarial gains or losses are amortized for the pro-rata amount computed by the straight-line method“Standard”) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25,

over a certain period (10 years) within the average remaining service period of employees at the time of

May 17, 2012; hereinafter the “Guidance”) have been applied effective from the end of the consolidated

recognition, commencing from the consolidated fiscal year following the recognition.

fiscal year under review (however, excluding the main clause of Paragraph 35 of the Standard and

The prior service cost is amortized by the straight-line method over a certain period (10 years) within the

Paragraph 67 of the Guidance). As a result of this change, the amount of projected benefit obligations after

average remaining service period of employees at the time of recognition.

deducting the plan assets was reported as “net defined benefit liability,” and unrecognized actuarial gains or

3) Adoption of the simplified method for small and medium-sized entities

losses and unrecognized prior service cost are accounted for as net defined benefit liability.

For the calculation of net defined benefit liability and retirement benefit expenses, the consolidated

The application of the Standard, etc. complies with transitional accounting treatment which is set forth insubsidiaries of the Company have adopted the simplified method, according to which the amount of

Paragraph 37 of the Standard, and accordingly, the effects of this change in accounting method are adjusted

payables for voluntary retirement of all employees as of the end of the period is treated as projected

as “remeasurements of defined benefit plans” under “accumulated other comprehensive income” at the end

benefit obligation.

of the consolidated fiscal year under review.

(5) Recognition standards for significant revenues and expenses
Recognition standards for net sales of completed construction contracts and cost of sales of completed

As a result, net defined benefit liability of ¥4,241 million was reported and accumulated othercomprehensive income decreased by ¥116 million at the end of the consolidated fiscal year under review.

construction contracts
1) 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.
Net sales of completed construction contracts, to which the percentage-of-completion method was applied, were¥32,378 million for the consolidated fiscal year under review.
(6) 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 threemonths or less, which are exposed to minor risk of fluctuation in value.
(7) Other items of significance concerning the preparation of consolidated financial statements(Accounting Standards, etc. Yet to be Applied)“Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012)“Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012)(1) Summary
The revisions in the above accounting standard and its implementation guidance were made focusing on theaccounting procedure for unrecognized actuarial gains and losses and unrecognized past service costs, thecalculation method for projected benefit obligations and current service costs, and the enhancement of
disclosures, from the viewpoint of improvements to financial reporting and international convergence.
(2) Planned date of application
The Group plans to apply the unapplied accounting standards above from the beginning of the fiscal year
ending March 31, 2015.
(3) Impact of application of the accounting standard, etc.
By applying the accounting standard, etc. above, operating income, ordinary income and income before
income taxes and minority interests for the fiscal year ending March 31, 2015, are expected to decrease byapproximately ¥43 million each.

16
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23

17
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24

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26