2018

Annual Report

Leading to the Future with ourTechnology 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
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

NITTOC CONSTRUCTION CO., LTD.

Leading to the Future with our Technology of Protection
MISSIONCONTENTWith efficientmanagement andcomprehensive
technical capabilities
in foundation work,
we are the company
that provides safe
and secure society
and contributes
to countries.

02

Advantage of NITTOC

04

A Message from the President

06

Formulation of the Medium-Term
Management Plan 201725
Overseas Deployment

3108
Disaster Prevention
and Environmental
Conservation

Environmental Responsibility

32
Landscape Conservation
Technology for Cultural
Properties

12
Urban Regeneration

33
Contribution to Society

16
Maintenance andRenovation

20

Fairs Where We Plan
to Exhibit

21
Our Award-Winning
History

35

Corporate Governance

36

Financial Highlights

38

Consolidated Financial
Statements

77

Corporate Overview and
Major Construction Methodsy

78

Management Members

80

Corporate History

23
Domestic Construction
Projects

c

ANNUAL REPORT 2016

ANNUAL REPORT 201601

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

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 respond to Social Needs
We are holding 200 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.

02

ANNUAL REPORT 2018

ANNUAL REPORT 201803

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

For Stakeholders

04

ANNUAL REPORT 2018

A Message fromthe President

construction work company which excels in

NITTOC CONSTRUCTION CO., LTD. (“NITTOC” orCompany therefore must pursue a comprehensive

the “Company”), was established in 1947 as aapproach in a wide range of sectors, including not

firm which started out in construction work for

only in providing customers with high-quality

dam foundations during its startup and has been

works but also in ensuring safety management,

highly acclaimed by customers as an enterpriseenvironmental conservation and compliance.

with strengths in sites appropriated for specialized

Furthermore, its business targets include different

construction works such as “Maintenance andtypes of stakeholders including the users ofRenovation,” “Disaster Prevention andinfrastructure, local residents living in areas

Environmental Conservation” and “Urban

adjacent to its construction works, collaborating

Regeneration.”companies, investors and employees. It is

The Company started the “Medium-Term

important for the Company to meet various

Management Plan 2017” (covering fiscal 2017

requests from society and the expectations of its

through fiscal 2019) effective from fiscal 2017.

many stakeholders.

While the current robust construction market is

The Company endeavors to fulfill its social

expected to continue for the three year of the

responsibility as a company engaged in theplan, the Company, at the same time, considers

construction business, in an aim to uphold its

this period as a great opportunity to be a

management philosophy of “a company thatsignificant turning point for the Japaneseprovides a safe and secure society and contributes

construction market from a long-term perspective.

to countries,” “efficient management and

The Company therefore positions these three years

comprehensive technical capabilities in foundation

as a transitional period during which infrastructure

work,” and “to lead disaster prevention andin Japan will shift from the phase of newenvironmental conservation as the expert ofconstruction to that of maintenance and renewal,

foundation work accumulated by our reliable

a period in which growth foundations toward atechnological ability.”

new era are to be established. The Company will

Your cordial support of and cooperation withstrive for “Transformation into a specialized

NITTOC is much appreciated.

disaster prevention, disaster restoration and repair/
reinforcement.”
A major business of the Company is to engage inworks relating to safety of national land. The

Norihisa Nagai
President & Representative Director

ANNUAL REPORT 201805

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Financial
Highlights

Corporate
History

Management
Members

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)

Unified Efforts(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.

-Mission:
A company that provides a safe andsecure society and contributes to countries-Vision:To lead disaster prevention andenvironmental conservation as the expert offoundation work accumulated by our reliable
technological ability

Management
Philosophy-Value:Efficient management andcomprehensive technicalcapabilities in foundation work

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
improvement business

Expand the slope
repair business

Reinforce educationand training

Improve the workplaceenvironment

Increase the number/volume
of private-sector works

Purpose

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
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

Important measures

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

6. Managerial Goals
2. Management Policies
1. Reinforce internal control (compliance and risk management)
2. Emphasize safety and a good workplace environment
3. Secure volume of foundation works
4. Maintain profitability
5. Cash flow-focused management

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.

06

ANNUAL REPORT 20181) 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 end of 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 return ratio of4) Target 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

Achievement

Mid-Term

Announcement

Mid-Term

Orders received

61.2

64.8

60.7

62.0

61.1

Net sales

60.2

62.9

60.7

62.0

61.1

Operating income

3.2

4.1

3.2

3.35

3.2

Ordinary income

3.2

4.1

3.1

3.32

3.2

Net income
ROE

2.2

2.7

2.1

2.23

2.2

9.9%

11.9%

9.1%

9.4%

9.2%

[Reference]
Shareholders’ equity
Equity ratio

22.5

23.3

23.0

24.0

23.8

51.3%

48.1%

50.9%

53.7%

52.4%

ANNUAL REPORT 201807

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Disaster Prevention andEnvironmental Conservation

Nature Restoration via Recycling of Surplus Soil
Effectively Using Surplus Soil

Construction Performance, Method, and Technology

TSURU-KAME Soil Method

Since Japan has geographical conditions that make it prone to being affected by natural disasters,• Utilizes onsite surplus soil effectively.
• Excels in long-term durability (comparison with the greening foundation
mainly consisting of bark compost).

large scale disasters have become more frequent in recent years.
For this reason, in order to build a friendly, trusty and safe society in Japan,
we have developed our slope protection method does not use concrete,

Growth Foundation for Plants Mainly
Consisting of Raw Chip Materialusing a method for spraying vegetative material base or greening method by using surplus soil left in the site,
based on the consideration of the disaster prevention environment.
In addition, NITTOC accumulates a brilliant achievement about Anchor method,

Plant-Leading Spraying Methodthat 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)

Continuous fiber-reinforced soil work
(slope protection type)• Uses the chip material, which derives from the secondarily processedfragments of felled trees, as a foundation material for greenings workwithout being converted into compost.
• Enables greening via the natural intrusion of plants on the foundationthat excels in erosion resistance.

Comparison of the Volume Utilized

NNTD No.0370

OnsiteSurplus Soil

Construction Technology Review and Certification

Environment-Friendly
Slope Protection Method
Geofiber Method

Vegetation basematerial
spraying work

100m3

• Serves to decrease CO2 emissions as a substitute method forsprayed slope frames.
• Forms forest on slopes by enabling full-space greening.
• Has an abundant record of slope greening (More than 3,200
projects in Japan and 150 overseas)

TSURU-KAME Soil Method
Plant-Leading Spraying Method

40m3
Sand from the left-side nozzle andpolyester continuous fiber from theright-side nozzle are injected by jet water
to form continuous fiber-reinforced soil.

Raw Wood
Chip

NEKKO Chip Method

50m3

KAERUDO-Green Method

100m3

Nature Restoration Using Surface Soil with
Consideration to the Ecosystem (for greening
especially around natural parks such as
national parks and quasi-national parks)
NETIS No.CG-080004-V

NNTD No.0374

Using Surface Soil Insteadof Seeds
Native Recovery Greening Method• Buried seeds in the surface soil of forests are mixed with thevegetation base material.
• Greening construction is possible using a general-purpose mortar
spraying machine.

NNTD No.0280

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 the natural intrusion of plants on thefoundation that excels in erosion resistance.

40m3
25m3

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

Ground reinforcement orplate-reinforced anchor work

NNTD No.0369

Continuous fiber-reinforced soil work
(retaining wall shape type)Surface Soil-Based GrowthFoundation for Plants

Continuous fiber-reinforced soil

KAERUDO-Green Method

Example of Construction:

Kiyomizu-dera Temple• Utilizes surface soil of forests economically.
• Recycles a wide variety of soils such as excavated soil, dredged
soil and dehydrated cake.

(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 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.

08

ANNUAL REPORT 2018

Status of greenery when using the NEKKO Chip Method

During the work

Work completed

One year after the work completion

ANNUAL REPORT 201809

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Financial
Highlights

Management
Members

Corporate
History

Our Business field

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

Ground Anchor and Slope Frame

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.

アタリ

Valve
unit
Hydraulic pumpPC
PC

Data monitoring anddata storage
Jack operation

Displacement
gauge
Main body of thecontrol unit

Simultaneous tightening of multiple anchors

Slope frames

NETIS No. TH-140015-A

NETIS No. KT-120103-A

Plastic Pressure Receiving
Plate for Rock Bolts

Tensile Strength Monitoring
System for Installed AnchorsNINJA Panel

Aki-Mos• Uses recycled plastic as material.
• Improves operating safety and construction
efficiency on slopes due to light weight.
• Available for full-surface greening.
• Ø634 and Ø911 mm models are added to
the lineup.

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

Nature Restoration at Places where Greening is Difficult
NNTD No. 0373

NETIS No. SK-100014-VE

Greening of Mortar Shotcrete
Surfaces and Bedrock

Dedicated jigs

Load cell

Wirelesstransmission

Installed anchor

Ground anchors + Pressure receiving plates

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 for greening work.

Sprayedfoundation
Hole for root system

Measurement dataacquisition system
Creating horizontal parts*The technology was jointly developed by the Public Works Research Instituteand eight private-sector companies.

Dispersion of surface water

Spore of VA
mycorrhizal fungus

Sander Bio

Approximately 20 cm in depth
for the development of aroot system
Concave
portion: 5-7 cm
Convexportion: 13-15 cm
GroundAverage spraying
thickness: 10 cm

Fungal hyphae entering
the root of a plant
Fungal hyphae of VA mycorrhizal fungus

Fiber Soil
Greening Step Method
WinBLADE
MethodSplits Anchor
MethodSolder Pile Panel Wall Method

Power BlenderMethodN-Jet Method

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

Shaft

Geofiber Method

Native Recovery
Greening Method

Riprap layer

Sander Green Method

Improved
soil

Ripraplayer
Maximum depthof 13 m

Ø1,200 mm

Anchor Method by
the EinBand Drill
Small Diameter Pile Method+
Ground Anchor
ANNUAL REPORT 2018

L-Spin Column
MethodEmbankment

Buried tube

10

Expacker-N Method

Small
Diameter
Pile
Method

Ø65–
350 mmBuilding Anchor
Technology

Ø1,800–2,000 mm

Maximum diameterof improvement:
5,000 mm

ANNUAL REPORT 201811

Advantage
of Nittoc

Summary of theMedium-Term
Management PlanFor
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business Overseas
Deployment

International
Business

Our Business field

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Bit opens.

Urban Regeneration

Enlarge-diameter drillingwith the opened bit.

NNTD No.0371

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

Splits Anchor Methodliquefaction prevention and existing pile removal method to contribute the society.

SSB• Ultra-compact, double-tube drill machine that enables drilling at
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 machines0m• 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.

Even under the compress buildings situation, NITTOC have developed earthquake resistant,

Japan’s Miniature-Class Drill Machine:Ø 80

in the city which has so many compressed buildings.

mConstruction Performance, Method, and Technology

Enlarged-Diameter-Type Anchor
Firmly Fixable on Soft Ground

Splits Anchor

Drill machine with the deepest
drilling capability in Japan
EinBand Drill• Rotary Percussion Drill that Enables
Large-Diameter and Deep Drilling.
• Features 3 times the torque and 2.5 times the feeding strengthcompared to conventional trenchers.
• Achieves high-precision drilling on hard rocks and boulders.

Anchorbody

Conventional Anchor

In case of a close siteboundary
Site boundary

Site boundary

Bearing
stratum

Bearing
stratum

Bearing
stratum

Bearing
stratum

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

NNTD No.0365

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

In case of a deep
bearing stratum

Comparison of
Body Size

Diameter expansion bit

Cutting blade

EinBand Drill

1,000 mm2,000 mmSSB

Ordinary drill machine

Well Logging System
Using Drilling Bore

Staple Building Foundation
new ACE Method

DSS Ground Survey Technology
4,86

0 mm

Ordinary trencher

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

Financial
Highlights

2,380 mm

• Maximum design strength of concrete: 60 N/mm2• Maximum diameter of the bell pile unit (shaft diameter of 2.2 m).

• Collects and records various data while bores are drilled and sectionalizes theground on a real-time basis.
• Compatible with Wassara AB’s water-powered down-the-hole hammers.

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

State of drilling operation[Application]

WinBLADE Method

DCS Method

N-Jet Method

Expacker-N Method

Power Blender Method

L-Spin Column
MethodEmbankment

Riprap layer

Shaft

Buried tube

Improved soil
Maximum depthof 13 m
Ø1,200 mm

12

ANNUAL REPORT 2018

Maximum diameterof improvement:
2,000 mm

Maximum diameterof improvement: 5,000 mm

Ø800–1,600 mm

New Sleeve
Grouting Method

Ø1,800–2,000 mm

GI Column Method

ANNUAL REPORT 201813

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

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

Underground Diameter Expanding
Type Soil-Mixing Improvement Method

Foundation Improvement for Long
Permeation/Grouting Intervals

N-Jet Method

WinBLADE Method

New Sleeve Grouting Method• Enables the formation of columnar soil of Ø2,000–5,000 mm.
• Forms fan-like improved soil through oscillating rotation.
• Cutting width is increased by injecting jets from the 4-stepped nozzle(3-stepped for fan-like soil).
• Reduces the soil formation time due to the larger cutting width, decreasing
the quantity consumed of hardening agent and slime volume• Avoids underground objects.
• Enables vertical, horizontal and slanting operations.
• Achieves homogeneous soil improvement using a monitoring control system• 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.

↑

Rotation↑

Discharge Image

Secondarygrouting

Oscillatingrotation

L-Spin Column Method

Valve interval:
33 cm

Polygonpipe

Control unit
Jet ofhardening
agent

Mechanical Mixing Method Combinedwith High-Pressure Injection Using an
Enlarged Mixing Blade• Injects a hardening agent from the nozzle at the leading edge of anenlarged-diameter type mixing blade.
• Enables the wrapping construction method or the diagonal construction
method, which has been problematic for existing method.
• Improves the properties of soft ground below hard grounds by penetrating
the hard ground.

Primary
grouting

Approx.
1m

Jet ofhardening
agent

NETIS No. KT-170026-A

Diameter-expanding bitØ 1,200 mm

Jet ofhardening
agent

New Sleeve Grouting Method

Conventional Method(sleeve grouting method)

NNTD No.0368

NETIS No. QS-100022-VE

Building Technology Certification

Mechanical Mixing Method Suitable at
Narrow Spaces
GI Column Method• Single-axis (Max. 20 m) slurry mixing methodwith 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 forfoundation improvement.)• Control unit that enables a real-time display,
ensuring high-quality slurry mixing.

High Capacity and Speedy
Grouting Method

High-Permeation, High-Strength,
Grouting Material

Expacker-N Method

MX Grout• Ensures a reliable permeation point.
• Offers speedy permeation and grouting for an extensive ground area.
• Applicable to a narrow operating area
2) Positioning of an
3) Filling of
4) Injection of1) Boringexternal pipe for grouting
geobags
permanent grout
External pipe
for grouting
Formationof a soil
Geobags
packerInjectionvalve
Geo filter-N5) Completionof work

Injection of
permanent
grout
CasingUltrahigh Pressure Injection Mixing
Method for Large-Diameter Foundation
Improvement
SUPERJET Method

Operational Management System for
Grouting Method
Three-P Oct• Makes pressure-controlled grouting possible.
• Provides the pumping operation via a tablet terminal.
• Achieves concentrated management via a terminal PC.

• Forms columnar, improved soil of a maximum diameter of Ø5,000 mm.
• Reduces the slime volume substantially (compared with previous methods)• Achieves foundation improvement at high speed and high quality.

Rock Bolt Works by SSB

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

Particle Size Image• Involves a turbid ground-grouting
material of which a major ingredientis blast-furnace slag.
• Features a lineup of “instantly
coherent type” and “long-lasting
coherent type” materials.

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

NNTD No. 0375

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

Power Blender Method
MX grout(5 μm)• Involves a trencher-type
mixing machine.
• Makes improvement
up to 13 m in depth
available.
• Makes homogeneous,improved soil via verticalmixing.

Ordinary Portland
cement(20 μm)Extremely ultrafine
particle cement(1.5 μm)

Opposite Direction Mixing-Type
Deep-Layer Mixing Method

Construction Technology Review and Certification

Earth Retaining Wall Method that
Combines Soldier Piles
with Concrete Panels

DCS Method• Attains a large columnar diameter of
2,000 mm(the Company’s track record).
• Achieves excellent
Rotational
direction of
mixing power.
external
blades• Offers applicability
for hard ground.

Soldier Pile Panel Wall
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) and the
combined use with shoring (wallheight up to 10 m).

Rotational
direction ofinternal
bladesDischarge of cement milk

Mixing blade
Re-Born Pile Method

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

Solder Pile Panel Wall Method
Splits Anchor Method
Ø2.2 mRipraplayer
Anchor Method by
the EinBand Drill

14

ANNUAL REPORT 2018

New ACE Method
Ø4.8 mSplits Anchor
MethodSmall Diameter
Pile Method+
Ground Anchor

Cutting blade

Small Diameter
Pile Method

Ø65–350 mm

Building Anchor
Technology

φ1000〜
1500mmANNUAL REPORT 201815

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Maintenance and Renovation

NNTD No. 0366Aged Shotcrete Slope Diagnosis System

Method and Technology

Slope Doctor

NITTOC specializes in slope related technique which accumulates a brilliant achievement.

• Precisely diagnoses the soundness of aged shotcrete slopes through the combination ofseveral relevant surveys.

Today in this aging of social infrastructure century,
we developed our own diagnostic techniques as well as repair method for the existing slopes,
we also established a control system that can be coordinates in maintenance work totally.
In addition, we have developed special materials for long distance pumping,
Analysis method: thermal infrared radiation imaging method, flexural
oscillation method, coring method(combined use depending on the site conditions)high strength and introduced in heavy environment,
mountain area or long distance tunnel for headrace channel.

NETUS No. OS-110014-VE Technology Promoted for Utilization

Life Elongation Technologies for Slope Structures

Repair/Reinforcement of Aged Shotcrete Slopes

We divide slope structures into two constituent parts, or grounds and concrete structures, and propose appropriate countermeasure works
depending on their respective soundness.
Displacement of jointVoid
Large crack with aconsiderable opening

Flaking

Example of Countermeasure Work

Intending for Life Elongationof Structures

Removal of loose portions
depending on the stateof abnormality

Step

Grouting
in crack

DamageDeformationof frame

New ReSP Method

Tilting

Joint opening

,

アタリ

tion

ddi

In a

• Keeps existing mortar shotcrete without shaving off existing shotcrete, contributing to reducing the volume of industrial waste, the construction period and the size ofthe safety equipment.
• Sprays organic-fiber-reinforced mortar shotcrete that excels in tenacity.
• Adheres the former and new shotcrete surfaces with shear bolts.
Pumping distance (hose is extendable vertically)
Shotcrete spraying machine: 100 m ± 45 m
Pump: 200 m ± 60 m

Swelling

Outflow of earth andsand sediments

NTD No. 1084

Surface coating(to restrict salt or
freezing damage)

Cross-section
repair
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.

Crack sealing work, Grouting work and Filling work

(remarkable decline insoundness)

E

Shotcrete Pressure Receiving
Plate Method (FSC panel)
Cross-section repair work

m

0c

.5

x
pro

After the work

Ap

)

tion
por

Repair and reinforcement work ofshotcrete slopes (New ReSP Method)
Surface coating work

D

)
area

Pressure receiving plate
und

C

red

B

Slope frame(So(minor decline insoundness)

Spraying

Reinforcement of grounds

atheSoundness evaluation division

Before the work

(We

Repair of concrete structures

Existing shotcreteRock bolt work and Void filing work
(Parfait Grout Method)

Boulder
Kiro Fukeru Method

Thickening work and Cross-section repair work (Frame Doctor)
HiSP Method

Ground anchor work + Pressure receiving plate work

Kiro Fukeru Method

Preventive maintenance

Surface coating work and impregnation work (Frame Doctor)
New ReSP Method
FSC Panel
Parfait Grout Method

Slope Doctor

Parfait Grout Method

16

ANNUAL REPORT 2018

ANNUAL REPORT 201817

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Our Business field

Reinforcing Slopes with Shotcrete Pressure Receiving Plates and Rock Bolts
Shotcrete Pressure Receiving Plate Method (FSC Panel)

NNTD No. 0372

Filling Voids with High-Quality Plastic Grout
Parfait Grout Method• Pressure receiving plates are formed by combining the fiber-reinforced mortar shotcrete and the reinforcing 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.
• The technology was jointly developed with the Railway Technical Research Institute.

Shotcrete pressure
Plate thickness t = 110
receiving plate
Protrusion t = 40
(FSC panel)

NETIS No. KT-090052-V• 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 the pumping distance, desired strength and specific gravity.

Shotcrete portion with increased thickness
Fiber-reinforced mortar;
thickness t = 70
Existing spraying
materialMax. 2,000

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

1,00

0

Pressure
bearing plate
Rock bolt

Weathgrounered
d
Sound
groun
d

1,000

Max

. 2,0

00

NETIS No. HR-140019-A
Unit: mm

NNTD No. 0364

Mortar Shotcrete Possible to a
Destination 1 km

Mortar Shotcrete at
Elevated Places

Preventive Maintenance of Concrete Structures

Kiro Fukeru Method

HiSP Method

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

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

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

Work Flow
Shaving off
deteriorated portions

Pumping distance: 700 m in case ofhorizontal feed only,
and 300 m in case thedifference in elevation
between the hose andthe pump is 160 m.
Design strength: 18 N/mm2 or more

アタリ
Pumping distance: 1,000 m(with a hoseextension)
Design strength: 18 N/mm2 or
more

Washing

Grinding and rustproofing
of reinforcing bars
Boulder

Renovation of the cross-section

Kiro Fukeru Method

Surface coating

HiSP Method
Kiro Fukeru Method

New ReSP Method
FSC Panel
Parfait Grout Method

Slope Doctor

Parfait Grout Method

18

ANNUAL REPORT 2018

ANNUAL REPORT 201819

Advantage
of Nittoc

Summary of theMedium-Term
Management PlanFor
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Fairs Where We Plan to Exhibit

Our Award-Winning History

Fiscal 2018: Schedule of Fairs Where We Plan to Exhibit

The Company Received the Inventive Idea & Development Technology
Award at the 18th National Land Technology Development Award for
the New ReSP Method (NETIS No. QS-110014-V; Promoted Utilization Technology)

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.
No.

PeriodName of Construction
Technology Fair

Venue

Organizer

Corporate
History

NITTOC’s New ReSP method was given the Inventive Idea & Development Technology Award at the 18th National Land
Technology Development Award as “a method for repair/reinforcement of mortar shotcrete slopes,” and the Company wascommended by the Minister of Land, Infrastructure, Transport and Tourism on July 26, 2016.

Remarks

In 2018

1Jun. 6 (Wed.) and Jun. 7 (Thurs.)

EE Tohoku ’18

Yume Messe Miyagi Hall,
Miyagi Sangyo Koryu
Center

EE Tohoku Executive
Committee

MLIT-affiliatedWhat is the National Land Technology
Development Award?

Jul. 24 (Tue.) to Jul. 26 (Thurs.)

53rd GeotechnicalEngineering ResearchPresentation Meeting

Sunport Hall Takamatsu

Japanese GeotechnicalSociety

Academic experts

3

Sept. 26 (Wed.) to Sept. 28 (Fri.)GEOTECHNICAL FORUM
2018:
Soil Improvement
Technology Expo. andFoundation WorkEngineering Expo.

Tokyo Big Sight

Fuji Sankei Business-i

Exhibition mainly presented by
WGs

4

Oct. 9 (Tue.) and Oct. 10 (Wed.)

Kyushu Construction
Technology Forum 2018

Fukuoka International
Congress Center

Kyushu Construction
Technology Forum Executive
Committee

MLIT-affiliated

MLIT-affiliated

MLIT-affiliated2

5Oct. 17 (Wed.) and Oct. 18(Thurs.)Construction Technology
Fair 2018 in Chubu

Fukiage Hall, NAGOYATRADE & INDUSTRY CENTER

Chubu Regional
Development Bureau,
MLIT; Nagoya International
Trade Fair Commission; andNagoya Industries Promotion
Corporation

6

Oct. 19 (Fri.) and Oct. 20 (Sat.)

Construction Fair Shikoku
2018 in Takamatsu

Sunport Hall Takamatsu

Shikokukensetsu

MLIT-affiliated

The National Land Technology Development
Award is aimed at publicly recognizing not
only tangible technologies in theconstruction industry,
but also a wide variety of new technologies
including software products to enhance themotivation for R&D among engineering
implementers as well as improve the level of
relevant construction technologies.
The “Inventive Idea & Development
Technology Award” is a special category of
the National Land Technology Development
Award to publicly recognize excellent
technologies developed from original
and innovative ideas among technologies
originally developed by small to
medium-sized builders and/or specialized
construction work operators.
Organizing Bodies:20

7Oct. 24 (Wed.) and Oct. 25(Thurs.)Construction Technology
Expo 2018 Kinki

MyDome Osaka

The Nikkan Kensetsu
Kogyo Shinbun and Kinki
Construction Association

8

Nov. 28 (Wed.) and Nov. 29(Thurs.)Highway Techno Fair 2018

West 3 and 4 halls, Tokyo
Big Sight

EXPRESS HIGHWAY
RESEARCH FOUNDATION OF
JAPAN

NEXCO

9

Planned in November

Construction Technology
Forum 2018 in Hiroshima

Hiroshima-shi(undetermined)

Secretariat, Construction
Technology Forum

MLIT-affiliated

ANNUAL REPORT 2018

Sponsor:Japan Institute of Country-ology
and Engineering
Coastal Development Institute ofTechnology
Supporting
Ministry of Land, Infrastructure,organization: Transport and Tourism
Co-sponsors: Japan Construction Information
Center Foundation
Advanced Construction
Technology Center
Service Center of Port Engineering

ANNUAL REPORT 201821

Advantage
of Nittoc

Summary of theMedium-Term
Management PlanFor
Stakeholders

Our Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Our Award-Winning History

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

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.

Domestic Construction Projects

Corporate
History(earthquake- and disaster-proof works)

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.

No. 1 Recommended Technology(27 subjects)
No. 2 Runner-up Recommended
Technology(60 subjects)
No. 3 Technology Promoted for
Evaluation(10 subjects)
Evaluation,
recommendationand selection

1. Initiatives for the Restoration and Reconstruction from theGreat East Japan Earthquake
Ogaki Dam Disaster Restoration (No. 4) Work of the Ukedogawa Special Disaster Restoration
Business (Futaba-gun, Fukushima Prefecture)

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)

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.

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

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.

22

ANNUAL REPORT 2018

After completion

Following the vehement tremors of the Great East Japan Earthquake, several cracks occurred on the upper end of the Ogaki
Dam’s bank body and other places, bringing about substantial obstacles to the management and operation of the dam. NITTOC
undertook several restoration works on the collapsed bank body slopes. The Company employed fiber-reinforced mortar shotcrete
work with reinforcing bars to complete the dam restoration.
[Orderer: Tohoku Regional Agricultural Administration Office, Ministry of Agriculture, Forestry and Fisheries. Project Overview:
Fiber-reinforced mortar shotcrete work with reinforcing bars]

2. Disaster Restoration Work
National Route No. 274 Shimizu-Cho Improvement Work
(between Hidaka-cho, Saru-gun and Shimizu-cho, Kamikawa-gun, Hokkaido)

Reduced CO2 emissions

Utilization of eco-friendly resources

Adaptable for diversified building andconstruction configurations

Before the work

6
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.
Before the work

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.

After completion

Affected by Typhoon Lionrock, which hit Hokkaido in August 2016, more than five slopes of the Route No. 274 collapsed at the
Nissho Pass, resulting in the traffic closure of the entire route. NITTOC undertook the slope frame and ground reinforcement
works as slope protection work of the collapsed slopes aimed at restoration and reopening of the route.
[Orderer: Obihiro Development and Construction Department, Hokkaido Regional Development Bureau, Ministry of Land,
Infrastructure, Transport and Tourism. Project Overview: Slope frame work and ground reinforcement work]

ANNUAL REPORT 201823

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

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

About Overseas Construction

Initiatives for Restoration and Reconstruction from the 2016
Kumamoto Earthquakes

Overseas Deployment

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Aso Ohashi Area Slant Countermeasure Work (Aso-gun, Kumamoto Prefecture)

Before the work

After completion

Damaged by the 2016 Kumamoto Earthquakes, a series of earthquakes for which the main shock occurred on April 16, 2016,a large-scale collapse of slants occurred in the Aso Ohashi Area. NITTOC undertook the restoration work of the collapsed slants.
Specifically, the Company ensured firm placement of the slants, implemented planting treatment on the slant faces to prevent soil
erosion, and executed permanent countermeasure construction works including close-attachment-type stabilizing andhigh-strength wire netting works for rock fall prevention.
[Orderer: Kumamoto Reconstruction Project Office, Kyushu Regional Development Bureau, Ministry of Land, Infrastructure,
Transport and Tourism. Project Overview: Planting treatment, close-attachment-type stabilizing wire netting work andhigh-strength wire netting work]

Fiscal 2016 Disaster Restoration: Toshita Area External-Slant Countermeasure Work
(Aso-gun, Kumamoto Prefecture)

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

About Overseas Construction Projects

During the work

During the work

Damaged by the 2016 Kumamoto Earthquakes in April 2016, the large-scale collapse of slants occurred, causing the traffic
closure of National Route No. 57. NITTOC undertook the restoration and improvement work of the village road connecting Toshita
and Tochinoki as a bypass for the affected National Route No. 57. The Company conducted high-strength wire netting, rock bolt,
lightweight concrete, void filling and sprayed slope frame works.
[Orderer: Kumamoto Reconstruction Project Office, Kyushu Regional Development Bureau, Ministry of Land, Infrastructure,
Transport and Tourism. Project Overview: High-strength wire netting work, rock bolt work and sprayed slope frame workand so on]

24

ANNUAL REPORT 2018

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

ANNUAL REPORT 201825

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

International BusinessBusiness Overseas

Introduction of Overseas
Construction Projects

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 to the IndonesianSociety for Geotechnical Engineering

Technology presentation targeting domestic
general contractors in Indonesia

NITTOC presented at the technical exhibition booth of theIndonesian Society for Geotechnical Engineering (ISGE) in
November 2017. As NITTOC’s construction methods are still
uncommon in Indonesia, many guests stopped at our booth.

NITTOC is actively providing Indonesian general contractors,
etc., with presentation opportunities to educate them on
the Company’s outline and proprietary technologies. These
activities increasingly lead to inquiries that provide goodresults for actual orders received.

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 have undertaken in Indonesia.

Rajamandala Hydroelectric Power Plant Construction
This project involved work at a hydroelectric
power plant utilizing water of the Citarum
River at Rajamandala, West Java, Indonesia.
The Company received an order from Hyundai
Engineering Co., Ltd. and undertook the earth
retaining anchor work for a raceway, a drainage
channel and an effluent outlet.

Business proprietor:

PT Rajamandala Electric Power(Indonesia Power; Locallyincorporated company establishedby Kansai Electric Power Co., Inc.)
Owner party:
Hyundai Engineering Co., Ltd.
Description of the work: Temporally ground anchor work
Construction period:
July 2017–January 2018
NITTOC’s booth at the ISGE

Explaining the Power Blender Method to a booth visitor

Scene of a presentation to Wijaya Karya (a leading generalcontractor in Indonesia)

Communication Activity

AYANA Komodo Resort, Waecicu BeachThis project involved work relative to a resort
hotel development in Labuhanbajo on the westside of Flores Island. The Company proposed
countermeasure work for the slant located at
the back of the hotel and undertook the relevant
construction work.

We at NITTOC are active in participating in recreational activities to promote internal communications. In November 2017, all theIndonesian employees went on an overnight trip to a summer resort 60 km from Jakarta. All the participants had a wonderfultime enjoying creative games and playing football.

アタリ

Orderer:
PT Prima Pratama Citra
Description of the work: Slope frame work, permanent
anchor work, rock bolt work
Construction period:
September 2017–April 201826

ANNUAL REPORT 2018

ANNUAL REPORT 201827

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

International Business

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Overseas Deployment

Jakarta Mass Rapid Transit Construction ProjectThis project involves work for Indonesia’s first
intra-city rapid transit railway under constructionin Jakarta. The Company undertook foundation
improvement aimed at starting-up of a shieldmachine and water shutoff for the arrival verticalshaft.

Business proprietor:
Owner party:
Description of the work:
Construction period:

PT Mass Rapid Transit Jakarta
SMCC-HK, JO, SOWJ JO
Foundation improvement work
June 2017–February 2018

Lumut Balai Geothermal Power Plant Construction
This project involved work at a geothermal power
plant utilizing geothermal steam at Lumut Balaion Sumatera Island. The Company proposed
slope protection work and undertook the relevant
construction work.

Overseas Deployment (subsidiary in Indonesia)
The Republic of Indonesia has a population of approximately 250 million and continues to record high economic growth.
However, the social infrastructure is not yet sufficiently maintained or improved as presented 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 higheconomic growth. Our overseas deployment will not be limited to Indonesia but will be extended to infrastructure works in thegrowing Southeast Asia region.

Established a Subsidiary in Indonesia

Outline of the Joint Venture

Since the Jakarta Representative Office wasestablished in September 2012, we conductedsurveys and made preparations to establish
a locally incorporated company. Finally, theCompany resolved to establish a joint venturewith PT PANCA DUTA PRAKARSA, which
will undertake the construction business inIndonesia, and both companies entered into a
joint venture agreement 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.

Trade namePT NITTOC CONSTRUCTION INDONESIA

Representative

Yasunobu Okumiya

Location

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

Date of operational start

April 2016

Description of business

Construction business in Indonesia

Fiscal year-end

March 31

CapitalIIndonesian Rupiah (IDR) 51,000 million(Approximately JPY 428 million)
Note: Calculated at an exchange rate of
1 rupiah = 0.0083 yen

Composition ofshareholders

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

Staff members of NITTOC Jakarta
Representative Office and PT NITTOCCONSTRUCTION INDONESIA

Business proprietor:
PT Pertamina Geothermal Energy
Owner party:
PT Multi Adverindo
Description of the work: Slope protection countermeasure
work for the neighboring area ofthe switchyard.
Construction period:
August 2017–December 2017

All the employees met for a recreation activity in recognition of their service and topromote friendship among themselves at Santa Monica in Bogor in November 2017.

GENERALI TOWER:
The building which houses the new office.

28

ANNUAL REPORT 2018

ANNUAL REPORT 201829

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management Plan

Overseas Deployment

Our Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Environmental

Feedback from Local Employees Working Globally
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 fromIndonesia.
We would like to introduce some of the employees working globally at NITTOC.

Environmental Responsibility
Environmental
Policyenvironmental symbiosis society for earth biological including
humans.
• Promote all activities about waste reduction,
increase recycling rate, resources saving, energy saving,

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

environmental friendly products utilization.

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

agreements, customer and industry requirements, actively fulfill

to the society. Technology Division establishes the followings

social responsibility for environmental protection.

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

philosophy.

environmental conservation awareness.
• Expose the implementation of environmental policy and30

Tri Hidayahtulaily

Faruq Candra

Afda Riansyah Eris

Affiliation : PT NITTOC CONSTRUCTION
INDONESIA
Nationality : Indonesia

Affiliation : Jakarta Representative Office
Nationality : Indonesia

Affiliation : Jakarta Representative Office
Nationality : Indonesia

I joined NITTOC CONSTRUCTION
in June 2016. My first impression
immediately after joining NITTOC
was, “I was able to join an extremely
wonderful company.” Other staffs
are really friendly and kind to new
employees. Having good people on
the staff is an attractive aspect of
NITTOC.
I belong to the Accounting
Department, and my job is tosupport finance, accounting andtax-related duties. Through my daily
operational duties, which I feelare refreshing, I am learning manythings.
In July 2018, I am scheduled to
go to Japan to receive training. I
appreciate NITTOC for providing
such a great opportunity. Utilizing
what I will learn through thetraining and my experience nurtured
through daily operation, I would liketo help NITTOC to become a bigger
company in Indonesia in the future.

I joined NITTOC CONSTRUCTION
in November 2014. In the 13 years
after graduating from university
in 2001 before joining NITTOC,
I engaged in the constructionindustry. My first project at NITTOC
was construction works at the slopethat existed in Rancamaya andground anchor work.
My current jobs are budget
planning for construction projects,
arrangement of materials andequipment, personnel deployment
and preparation of reports on
construction works. Although mydaily duties are challenging, it isgreat fun to work for NITTOC.
There are no companies equippedwith expertise like NITTOC in
Indonesia. I really enjoy learning
new technologies.
I believe my mission is to contributeto the development of Indonesia
utilizing NITTOC’s technologies. To
that end, I would like to continue
to learn many things to becomea specialist in the management ofconstruction projects.

ANNUAL REPORT 2018

• Technology Division recognizes global environment

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

cooperate with customers and the community.

to reduce the load of global environment by improving theenvironmental management system.

I joined NITTOC CONSTRUCTION in
November 2011. After graduatingfrom university, I engaged in a
jacking work project at a Japaneseaffiliated company. After joining
NITTOC, I received training inJapan for approximately three
years. I learned various things
including the Japanese language,
the management of a construction
project and how to handle
machinery.
In 2014, NITTOC’s full-scale
operation started in Indonesia at
about the same time that I returned
to Indonesia. Since then, I haveundertaken construction projects at
various sites in Indonesia. My current
jobs are mainly onsite managementof construction projects, preparationof construction process charts andtables, arrangement of materials
and equipment, negotiations withcustomers and reporting on the
progress of construction work.
Although it is challenging tomanage a whole construction site, I
feel that my work is truly rewarding.
NITTOC has diverse kinds oftechnologies, and it is beneficial
to learn everything. In the future, I
would like to become “the BEST” in
the field of foundation improvementin Indonesia.

• Effective utilization of limited resources and reduce the load ofenvironment to be a resource recycling society. We promote
the research, development, design and study to construct anTechnology Division Environmental Management System Network
General Manager of Technology Division

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

Environmental
Management Officer

Greening Work
Laboratory

Environmental Committee

Saitama Laboratory

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

ANNUAL REPORT 201831

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Landscape Conservation Technology of Cultural Property

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Contribution to Society

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

Landscape Conservation Technology for
Cultural Properties

Kyushu Branch: Cooperated in Restoration Work of a Forest Road Damaged by
Typhoon Talim (Kagoshima, October 2017)

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.

Typhoon Talim, which hit the Satsuma Peninsula in Kagoshima
Prefecture on September 17, 2017, caused damage at various
locations including Kyushu and Shikoku. NITTOC employees of the
branch, working on a project in Tarumizu-shi, Kagoshima, at thattime, cooperated with a request from a government administrative
agency to help restore a nearby forest road that was blocked bya fallen tree due to the typhoon. Because it was not possible tobring in a crane from outside the area, the branch offered the useof its crawler crane, which was being used on a construction site,
to assist with the restoration work.

Tokyo Branch: Onsite Meeting to Explain to Community Residents About aGovernment-Designated Historic Site Preservation Project (Saitama, October 2017)

Slope seen from the stage of Kiyomizu-dera Temple

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

Kiyomizu-dera Temple (Kyoto)

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

Regarding the project to preserve Minuma Tsusenbori (a lock-typecanal opened in 1731) in Saitama-shi, a meeting sponsored by the
Saitama City Board of Education was held to explain to community
residents about the history of Minuma Tsusenbori, a governmentdesignated historic site, and the details of the maintenance work
project, for which the Tokyo Branch of NITTOC was in charge ofthe slope protection works. At the meeting, we explained about
the Geofiber Method for the greening of the entire slope area.

Hokuriku Branch: ECHIGO Tanada Supporter (Niigata, May through November 2017)
The ECHIGO Tanada Supporter (“Tanada” is a terrace paddy field)
is a group established by prefectural government employees of the
Department of Agricultural Land, Niigata, to protect the landscapeand topographical functions of terrace paddy fields jointly withlocal residents. Identifying with the group’s purpose, volunteer
employees of the branch cooperated in mowing and cleanup
activities at several terrace paddy fields in Niigata Prefecture, as
they did last year. A cumulative 25 volunteers participated 13
times in such activities from May to November 2017.

Activity
content:
After the work

32

ANNUAL REPORT 2018

After the work

1) Matsuzawa Area of Murakami-shi: Maintenance around irrigation
ponds, etc. ..........................................................................3 times2) Tokamachi-shi: Mowing .......................................................3 times3) Tainai-shi, Kashiwazaki-shi, Sado-shi, etc.: Mowing ..............7 times

ANNUAL REPORT 201833

Advantage
of Nittoc

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution to Society

Corporate Governance

Osaka Branch: Repainting of Playground Equipment in a Kids’ Park
(Kochi, March 2018)

Corporate Governance

In Kannoura, Toyo-cho, Aki-gun, Kochi Prefecture, NITTOC
employees of the branch worked on the Funakura Bridge repair
work. During the works, to show appreciation to people aroundthe project site for their understanding and cooperation on a daily
basis, the employees volunteered to perform maintenance on
the playground equipment at the kids’ park in Kannoura, Toyocho, which included the project site. Specifically, they repainted
the playground equipment, including a swing, a slope and ironbars for exercise and surrounding fences, and replaced the oldand visible rusted chains of the swing with new ones. Observing
children delightfully playing with the renovated equipment,
NITTOC employees of the branch were happy with the modest
appreciation they showed the community.

Hiroshima Branch: Sabo Facility Inspection Activities Conducted by the Sabo Frontier
Foundation in Yamaguchi Prefecture (Yamaguchi, November 2017)
NITTOC employees of the Hiroshima Branch participated this year,
as they did last year, in Sabo facility inspection activities, which areconducted annually by the Sabo Frontier Foundation to prevent
sediment disaster. In cooperation with the Sabo Section, Civil
Engineering Department, Yamaguchi Prefectural Government,
NITTOC employees of the branch conducted inspection activities
at sediment disaster-prone locations in Yamaguchi Prefecture suchas areas with a sharp slope and landslide prevention-designatedareas as well as the Sabo facilities.
This year, like last year, each group of three to four persons,
including the prefectural civil engineering staff and the Sabo
Frontier Foundation’s associates, inspected five to six locations of
the Sabo dam in Yamaguchi Prefecture. Such inspection activities
included checking for significant changes in condition at thepreviously inspected checkpoints.

Tohoku Branch: Road Cleanup Activities (Aomori, October 2017)
Together with employees of THE GEOFIBER SOCIETY member
companies in Aomori Prefecture, NITTOC employees of the Tohoku
Branch conducted cleanup activities covering an approximately
7-kilometer area between Asahiyama and Kareizawa on
Prefectural Route No. 27 (Aomori-Namioka). On the cleanup day,20 employees of NITTOC’s Aomori Sales Office joined employeesof THE GEOFIBER SOCIETY member companies in the cleanup
activities and picked up roadside garbage. Plenty of garbage
was collected along the 7-kilometer stretch of road as shown in
the photo. The activity concluded with a memorial photo of theparticipants with the bags of garbage they collected. NITTOC
believes that its branch made a modest contribution to the local
cleanup.

34

For
Stakeholders

ANNUAL REPORT 2018

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

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

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

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

Customers
Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

Consolidated
subsidiary:
Midori Industries Co., Ltd.

Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

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

Undertaking
construction

Undertaking
construction

Consolidated
subsidiary:
PT NITTOC
CONSTRUCTION
INDONESIA

Undertaking
construction

Undertaking
construction

Undertaking
construction

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

ANNUAL REPORT 201835

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management Plan

Financial Highlights

Our Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

Financial Highlights

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
GovernanceOperating income

General Civil Engineering(Millions of yen)

(Millions of yen)

80,0005,000

Corporate
Overview and
Major Construction
Methods

Financial
Highlights

Operating income∙Ratio to Net Sales

6.9%

Ordinary income(%)(Millions of yen)

7.0

4,000

Thousands of
U.S. dollars

2014

2015

2016

2017

2018

2018

¥57,264¥60,703¥57,638¥57,174¥62,943$592,461

2,904

3,905

3,431

3,555

4,119

38,771

Profit attributable to owners of parent

1,663

1,664

2,110

2,342

2,688

25,304Comprehensive income

1,715

1,694

1,894

2,458

2,668

25,116

Net assets

16,37018,116

19,781

21,81323,256

218,908

Total assets

41,04742,30640,38544,225

48,142453,148

Net cash provided by (used in)operating activities

1,011

2,435

(630)

2,501

(301)

(2,837)

Net cash provided by (used in)investing activities

(189)

(277)

(1,209)

(393)

(867)

(8,166)

Net cash provided by (used in)financing activities

(678)

(775)

(1,592)

(393)

(144)

(1,364)60,00062,94360,703

4,000

3,465

3,000

3,583

6.0%
3,431

5.3%

57,638 57,174

57,264

6.0

5.0

(%)

7.0

6.5%

3,905
6.4%

4,100

Ratio to Net Sales

4,119

6.5%

6.0%
4,198

Corporate
History

Management
Members

Ordinary income∙Ratio to Net Sales

Ratio to Net Sales

6.3%

Millions of yen

Ordinary income

International
Business Overseas
Deployment

Net sales
Special Civil Engineering
Others

Net salesInternational
Business

6.2%
6.0

3,555

5.1%
5.0

2,904

3,035

3,000

4.0

4.0
2,000

40,000
3.0

2,000

3.0

2.0

2.0
1,000

20,000
1,000
1.0

0

0
2014

2015

2016

2017

Net income∙Ratio to Net Sales
Net income

Cash and cash equivalents
at end of period

12,277

13,698

12,681

14,462

13,114

123,444

0
2014

2018

2015

2016

2017

1.0

0

2018

Interest-bearing debt

0
2014

2015

2016

Ratio to Net Sales

Total net assets(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

4,000

7.0

4,000

25,000

6.5%

15.8%

20,000

Others1.6%

50

21,813 23,256
19,78140

16,370
4.1%

20.8%

3.7%

2,342

4.2%
2,668

4.0

2.9% 2.7%

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

1,663(in net sales)
Government
andpublic sector

84.2%

Slope
protection

Maintenanceandrenovation

43.0%

14.6 %

Pile foundation

6.9%

15,00030

10,000

20

5,000

10

2,000

2,000

Public-Private
proportion

2,110

3.0

1,600

1,664

1,200

1,100

2.0
1,000

1,000

1.0

Dam Grouting

6.7%

0

0
2014

ANNUAL REPORT 2018(%)

18,116

5.0

Groundimprovement

36

39.9%

3,000

3,000

Equity Ratio

48.6% 49.0% 48.1%

42.8%

Private sector

2018

Total net assets∙Equity Ratio

6.0

Pipe jacking

2017

2015

2016

2017

2018

0
2014

2015

0

0

2016

2017

0
2018

0
2013

2014

2015

2016

2017

ANNUAL REPORT 201837

Consolidated Financial Statements

Millions of yen
2017
2018

1. [Consolidated Financial Statements, etc.](1) [Consolidated Financial Statements]
1) [Consolidated Balance Sheets]
March 31, 2017 and 2018
Millions of yen
2017
2018
AssetsCurrent assets
Cash and deposits

14,462

Notes receivable, accounts receivable fromcompleted construction contracts and other
Electronically recorded monetary claims－
operatingMerchandise and finished goods
Real estate for sale
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other

13,114

123,444

16,974*6

21,220199,739

2,196

*6

3,462

32,593

26
0
1,473
129
523
513

247
0
13,866
1,222
4,930
4,836

(15)

(7)

(69)

37,16140,457

380,812

25
0
2,223
142
481
670

*4

Allowance for doubtful accounts
Total current assets

Thousands of
U.S.Dollars(*)
2018

*4

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, vehicles, tools, furniture andfixtures, net
Land
Leased assets, net
Construction in progress

*1

910

*1

820

7,721

640

6,027

2,787
*1 68
14

2,663
*1 58
386

25,072545
3,635

Other, net*3*3

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

*1

484

*1

2

19

4,268

4,570

43,022

289

438

4,130

2

8,948

Deferred tax assets
Other

838
1,157
531

950
1,132
674

10,656
6,344

Allowance for doubtful accounts

(21)

(81)

(764)

Total investments and other assets

2,505

2,675

25,184

7,063

7,685

72,33644,225

48,142453,148

Total non-current assets
Total assets

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

Thousands of
U.S.Dollars(*)
2018

12,691

119,463

－

274

2,579

3,277

1,169

11,009

11,133

*6

18

20

1,035

788

190
7,426

25

8

77

32
870
26

306
8,195
245

Other

2,041

4,079

38,403

Total current liabilities

18,285

19,962

187,896

－

*4

39
714
－

*4

Non-current liabilities
Long-term loans payable
Lease obligations
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

49

826
37

4,022

4,017

7,774
351
37,818

53

42

399

4,126

4,923

46,344

22,412

24,885234,240

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings

6,052
2,022

6,052
2,022

14,144

16,10956,96919,034
151,634

Treasury shares(552)(1,054)(9,924)

Total shareholders’ equity

21,66623,130217,714

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

264

305

2,872

(9)

(29)

(280)

Remeasurements of defined benefit plans

(254)

(265)

(2,495)

0

10

97

146

116

1,096

21,81323,256

218,908

44,225

48,142453,148

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

38－
ANNUAL REPORT 2018

2－
ANNUAL REPORT 201839

[Consolidated Statements of Comprehensive Income]Fiscal Years Ended March 31, 2017 and 2018

2) [Consolidated Statements of Income and Consolidated Statements of Comprehensive Income][Consolidated Statements of Income]Fiscal Years Ended March 31, 2017 and 2018
Millions of yen
2017
2018
Net sales
Net sales of completed construction contracts

62,845591,540

163

97

921

57,17462,943

592,461

57,010

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

Thousands of
U.S.Dollars(*)
2018*1 52,321

492,486

53

29

275

47,331

52,351

492,762

9,733

10,523

99,053

110

68

645

9,843

10,591

99,6986,259*2,3 6,491

61,104

3,583

4,100

38,594

7
20
19

7
25
33

70
237
318

Other

11

12

121

Total non-operating income

59

79

748

Non-operating expenses
Interest expenses
Guarantee commission
Foreign exchange losses
Commission for syndicate loan

8
33
－

16
18
20

Cost of sales on other businessTotal cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses*2,3Operating income
Non-operating income
Interest income
Dividend income
Patent income

35

5

150
173
192
50

Other

10

0

3

Total non-operating expenses

87

60

571

3,555

4,119

38,771

Ordinary income
Extraordinary income
Gain on sales of non-current assets*4

Total extraordinary income

0

*4

0

Extraordinary losses
Loss on retirement of non-current assets

*5

1

16

1

16

89

841

131

1,240

221

2,082

Impairment loss

13－

Total extraordinary losses

13

Profit before income taxes

3,542

3,899

36,706

Income taxes - current

1,268

1,259

11,858

Income taxes - deferred

(66)

(29)

（279）

Total income taxes

1,202

1,230

11,579Profit

2,340

2,669

25,126

(2)

(18)

（178）

2,688

25,304

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

2,342

*5
*6

2,669

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

93
(5)

40
(30)

（290）

Remeasurements of defined benefit plans, net of tax

29

(10)

（97）

(1)

（9）

ProfitTotal other comprehensive income

47,277*1

2,340

Thousands of
U.S.Dollars(*)
2018
25,126

Millions of yen
2017
2018

*1

118

*1

378

Comprehensive income

2,458

2,668

25,116Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

2,462

2,698

25,396

(4)

(29)

（279）

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

40－
ANNUAL REPORT 2018

3

－

－

4

－
ANNUAL REPORT 2018413) [Consolidated Statements of Changes in Net Assets]

Fiscal year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Millions of yen)

Fiscal year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)

Shareholders’ equity(Millions of yen)

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

6,052

Retained earnings

2,022

12,228

Balance at beginning of current
periodTotal shareholders’equityTreasury shares(552)

19,750Changes of items during period
Dividends of surplus

(425)

(425)

Profit attributable to owners ofparent

2,342

2,342

Purchase of treasury shares
Disposal of treasury shares

(0)

(0)

0

0

0

Capital stock

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

－

0

1,916

(0)

1,916

Balance at end of current period

6,052

2,022

14,144(552)

21,666

Balance at beginning of current
periodForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

171

(6)

(284)

(119)

Non-controllinginterests

150

Dividends of surplus(425)

Profit attributable to owners ofparent2,342

Purchase of treasury shares(0)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

93

(3)

29

119

(4)

115

93

(3)

29

119

(4)

2,031

264

(9)

(254)

0

146

21,81342

ANNUAL REPORT 2018

5

(552)

21,666(723)

Profit attributable to owners ofparent

2,688

2,688

Purchase of treasury shares
Disposal of treasury shares

(501)

(501)

0

0

0

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

－

0

1,964

(501)

1,463

Balance at end of current period

6,052

2,022

16,109(1,054)

23,130

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

264

(9)

(254)

0

Non-controllinginterests

146

Total net assets

21,813

Changes of items during period
Dividends of surplus(723)

Profit attributable to owners ofparent2,688

Purchase of treasury shares(501)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

40

(20)

(10)

9

(29)

(19)

40

(20)

(10)

9

(29)

1,443

305

(29)

(265)

10

116

23,256－－14,144(723)

Balance at beginning of current
periodChanges of items during period

2,022

Total shareholders’equityTreasury shares

Dividends of surplus

Total net assets

19,781

6,052

Retained earnings

Changes of items during period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Capital surplus

6－－
ANNUAL REPORT 201843

Fiscal year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Thousands of U.S.Dollars(*))4) [Consolidated Statements of Cash Flows]
Fiscal Years Ended March 31, 2017 and 2018

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

56,969Retained earnings

19,034

Treasury shares

133,140（5,204）203,941

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparent（6,811）（6,811）25,30425,304Purchase of treasury shares
Disposal of treasury shares（4,720）（4,720）0

00

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period－

018,493(4,719)13,77356,96919,034

151,634(9,924)

217,714

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

2,494

(91)

(2,397)

5

Non-controllinginterests

1,376

Total net assets

205,322

Changes of items during period
Dividends of surplus(6,811)

Profit attributable to owners ofparent25,304Purchase of treasury shares(4,720)

Disposal of treasury shares0

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

378

(189)

(97)

92

(279)

Thousands of
U.S.Dollars(*)
2018

Millions of yen
2017
2018

Total shareholders’equity

(187)

378

(189)

(97)

92

(279)

13,585

2,872

(280)

(2,495)

97

1,096

218,908

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in net defined benefit liability
Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Impairment loss
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in costs on uncompleted
construction contracts
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received on
uncompleted construction contracts
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid

3,542
284
0

3,899
269
55

36,706
2,533
524

(80)

(16)

(158)

(100)

(7)

(68)

159
－

155
26

44
(0)

(19)
(1)

13
(28)

89
(32)

8
(1)
－

16
16
131

1,467
245
(184)
(16)
841
(308)
150
159
1,240

(1,711)(5,550)(52,245)

(558)

750

7,062

334

34

326

555

1,532

14,426767(2,107)（19,841）

(513)

1,862

17,532

328

1

11

3,047

1,105

10,406

28

32

305

(8)

(16)

（150）

Income taxes paid

(566)

(1,423)（13,398）

Net cash provided by (used in) operating activities

2,501

(301)

（2,837）

(38)
(218)

(54)
(542)

23

1

（508）
（5,109）16

Cash flows from investing activities
Purchase of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Payments of loans receivable

(4)

(52)

（493）

(68)
(109)

(231)
－

Collection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits

2
(10)
27

13
(13)
9

（2,176）
－
125

1

1

17

(393)

(867)

（8,166）

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

（129）
90

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

－

44

7

－
－

ANNUAL REPORT 2018

8－
ANNUAL REPORT 201845

Millions of yen
2017
2018
Cash flows from financing activities
Proceeds from long-term loans payable
Proceeds from share issuance to non-controllingshareholders
Repayments of lease obligations
Proceeds from disposal of treasury shares
Purchase of treasury shares
Cash dividends paid

Thousands of
U.S.Dollars(*)
2018

－

1,100

10,353

130

－

－

(27)
0
(0)

(21)
0
(501)

（199）
0
（4,720）

(424)

(722)

（6,799）

(321)

(144)

（1,364）

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

(4)

(33)

（317）

1,780

(1,347)（12,685）

Cash and cash equivalents at beginning of period

12,681

14,462

136,130

13,114

123,444

Cash and cash equivalents at end of period*114,462*1*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”【Notes】(Basis of Presenting Consolidated Financial Statements)
The accompanying consolidated financial statements have been prepared from the accounts maintained by
NITTOC CONSTRUCTION CO., LTD. (the “Company”) and its consolidated subsidiaries (collectively, the“Group”) in accordance with the provisions set forth in the Financial Instruments and Exchange Law and its
related accounting regulations, and in conformity with accounting principles and practices generally accepted inJapan, which are different in certain respects as to the application and disclosure requirements of International
Financial Reporting Standards.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which theCompany is incorporated and mainly operates. The translation of Japanese yen amounts into U.S. dollar amounts
is included solely for the convenience of readers outside Japan and has been made at the rate of ¥106.24 to
US$1.00, the approximate rate of exchange on March 31, 2018. Such translation should not be construed as arepresentation that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
(Going-Concern Assumption)
Not applicable(Significant Items on Basis for Preparation of Consolidated Financial Statements)
1. Scope of Consolidation
Number of consolidated subsidiaries: 4
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Shimane Earth Engineering Co., Ltd.
PT NITTOC CONSTRUCTION INDONESIA
2. Application of the Equity Method
Not applicable
3. Fiscal Years, etc. of Consolidated Subsidiaries
The year-end date of the fiscal year of the consolidated subsidiaries is March 31, which is the same as theconsolidated balance sheet date.
4. 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
・ MerchandiseStated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets havebeen calculated by writing down the book value based on the decline in profitability.)
・ Real estate for saleStated at cost using the specific identification method (The figures shown in the consolidated balance sheets
have been calculated by writing down the book value based on the decline in profitability.)
・ Costs on uncompleted construction contracts

－

46

9

－

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 havebeen calculated by writing down the book value based on the decline in profitability.)－

ANNUAL REPORT 201810－
ANNUAL REPORT 201847

(2) Depreciation methods of major depreciable assets
1) Property, plant and equipment (excluding leased assets): The declining-balance method is applied.
However, the straight-line method is adopted for buildings acquired on or after April 1, 1998, as well as facilities
attached to buildings and structures acquired on or after April 1, 2016, and for machinery equipment. The useful
lives and the residual value are based 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 for internal use is amortized by the straight-line method over the estimated internal usefullife (five years).
3) Leased assets
The same depreciation method as that applied to non-current assets owned by the Company is adopted for leased
assets of finance lease transactions where ownership of leased assets is transferred to the lessee.
The straight-line method, in which the lease period is utilized as the useful life assuming the residual value iszero, is adopted for the leased assets of finance lease transactions without transfer of ownership.
(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 estimatedcompensation amount regarding the net sales of completed construction contracts for the consolidated fiscal
year under review to prepare for expenses such as warranty against defects relative to completed construction
works.
3) Provision for loss on construction contracts
The provision for loss on construction contracts is recorded at an estimated loss amount regarding construction
works on hand at the end of the consolidated fiscal year under review for which loss is expected, and for which
the amount can be reasonably estimated, to prepare for possible losses from construction contracts that theGroup 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 under review based on the estimated amount to provide for bonuses to employees.
5) Provision for directors’ bonuses
The provision for directors’ bonuses is recorded at an amount of possible disbursement corresponding to theconsolidated fiscal year under review based on the estimated amount to provide for bonuses to eligible directors.

Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot
exchange rates on the consolidated fiscal year-end date, and differences arising from such translation are charged
to income.
The asset and liability accounts of the overseas subsidiaries are translated into Japanese yen at the spot exchange
rates as of the consolidated fiscal year-end date. The revenue and expense accounts of the overseas subsidiaries
are translated into Japanese yen based on the average exchange rate during the consolidated fiscal year underreview, and differences arising from such translation are included in “Foreign currency translation adjustment”
and “Non-controlling interests” as separate components of “Net assets.”(7) Recognition standards for significant revenues and expenses
Recognition standards for net sales of completed construction contracts and cost of sales of completed
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¥44,391 million ($417,840 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 threemonths or less, which are exposed to minor risk of fluctuation 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 theconsumption taxes.
2) Application of consolidated tax return system
The consolidated tax return system is applied.

(5) Accounting procedure for retirement benefits
1) Method of allocating the projected retirement benefits to periods
In calculating the projected benefit obligation, the benefit formula basis is used to allocate the projected
retirement benefits to periods up to the end of the consolidated fiscal year under review.
2) Amortization method for actuarial gains/losses and prior service cost
Actuarial gains or losses are amortized for the pro-rata amount computed by the straight-line method over acertain period (10 years) within the average remaining service period of employees at the time of recognition,commencing from the consolidated fiscal year following the recognition.
The prior service cost is amortized by the straight-line method over a certain period (10 years) within the averageremaining 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 net defined benefit liability and retirement benefit expenses, the consolidated subsidiariesof the Company have adopted the simplified method, according to which the amount of payables for voluntary
retirement of all employees at the end of the period is treated as projected benefit obligation.
(6) Translation of significant assets and liabilities denominated in foreign currencies into Japanese yen
－

48

11

－
－

ANNUAL REPORT 201812－
ANNUAL REPORT 201849(¥87) million(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment
As of March 31
2017

2018

¥6,644 million

2018¥6,605 million

2 Contingent liabilities(1) The Company guarantees loans payable for the purchase of its properties for sale.
As of March 31
2017
2018
5 properties¥8 million

4 properties¥5 million$62,172 thousand

2018$53 thousand(2) The Company guarantees housing funds, the loans payable of its employees borrowed from banks, inaccordance with the Housing Loan Financing Rules.
As of March 31
2017
2018
2018
¥15 million¥7 million$72 thousand*3 Reduction entry
The amount of reduction entry, which is subtracted from the acquisition prices of property, plant and equipment
due to acceptance of a state subsidy, and the breakdown thereof were as follows:
As of March 31
2017
Other

2018
¥2 million

2018¥2 million$19 thousand*4 Presentation of inventories and provision for loss on construction contracts
Fiscal year ended March 31, 2017 (As of March 31, 2017)
Both the costs on uncompleted construction contracts and the provision for loss on construction contracts, which
are related to construction contracts that are expected to generate losses, are presented without offsetting eachother.
Of the costs on uncompleted construction contracts relating to construction contracts that are expected to generate
losses, the amount corresponding to the provision for loss on construction contracts is ¥28 million.
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 to construction contracts that are expected to generate losses, are presented without offsetting eachother.
Of the costs on uncompleted construction contracts relating to construction contracts that are expected to generate
losses, the amount corresponding to the provision for loss on construction contracts is ¥23 million ($219
thousand).
5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fundprocurement of working capital.
The unused balance of the borrowings relative to the commitment line agreements as of March 31 was as follows:
Thousands ofMillions of yen
U.S.Dollars
As of March 31
2017
2018
2018
Total amount of the
2,200
2,200
20,707
commitment line
Balance of executed
－
－
loans
Unused balance
2,200
2,200
20,707*6 Notes, etc., matured at the end of the fiscal year under review were settled as of the clearance date or settlement－

50

ANNUAL REPORT 201813

¥17 million$163 thousand*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:
Thousands of
U.S.Dollars
Fiscal year ended March 31
Millions of yen
2017
2018
2018
date. The forfollowingnotes,
etc., matured at the－end of the fiscal year are26included in the balance as the last
Provision
directors’
bonuses245day ofthefiscalyear
under
review
fell
on
a
bank
holiday.
Employees’ salaries and
2,685
2,666
25,100allowances
As offorMarch
31
Provisionbonuses
289
348
3,277
2018
2018 2,387
Retirement benefit2017
expenses
270
253
Provisionof allowance for － million
Notes receivable¥18255
million$1,7160524thousand
doubtfulaccounts
Electronicallyrecorded monetary－ million¥34 million$321 thousand*3 claims－operating
Research and development expenses included in general and administrative expenses
Notes payable－ million¥475 million$4,474 thousand
Fiscal year ended March 31
2017

2018

2018

¥201 million¥169 million$1,593 thousand*4 The breakdown of gain on sales of non-current assets was as follows:
Fiscal year ended March 31
2017

Machinery, vehicles, tools,
furniture and fixtures

2018

2018

¥0 million¥1 million$16 thousand*5 The breakdown of loss on retirement of non-current assets was as follows:
Fiscal year ended March 31
Buildings and structures
Machinery, vehicles, tools,
furniture and fixtures
Intangible assets
Total

2017

89

Thousands of
U.S.Dollars
2018
841

0

0

0

1
13

－
89

－
841

Millions of yen
11

2018

*6 Impairment loss
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable
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.

Use

Type

Location

Assets planned
to be sold

Buildings andstructures, land, andintangible assets

Takamatsu-shi,
Kagawa

－

15

－

－

14

－

Impairment loss
Millions of yen

Thousands of
U.S.Dollars

131

1,240

－
ANNUAL REPORT 201851

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

7
124
0
131

Thousands of
U.S.Dollars

69
1,170
0
1,240

(Background)
The Company, at its Board of Directors meeting, resolved to sell said non-current assets. Consequently, theCompany 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 determined based on their selling prices, etc., under the relevant respective contracts.

52－
ANNUAL REPORT 201816－

(Consolidated Statements of Comprehensive Income)*1 Amounts of reclassification and the tax-effect equivalent in relation to “Other comprehensive income”
Thousands ofMillions of yen
U.S.Dollars
Fiscal year ended March 31
2017
2018
2018
Valuation difference on available-forsale securities
Accrued in the fiscal year
134
57
545
Amount of reclassification
－
－
134
57
545
Before tax-effect adjustment
(41)
(17)
(167)
Amount of tax-effect equivalent
Valuation difference on available93
40
378
for-sale securities
Foreign currency translation
adjustment
Accrued in the fiscal year
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Accrued in the fiscal year
Amount of reclassification
Before tax-effect adjustment
Amount of tax-effect equivalentRemeasurements of defined
benefit plans, net of tax
Total other comprehensive
income

(5)

(30)

(290)

(5)

(30)

(290)

0
36
36
(6)

(54)
39
(14)
4

(515)
375
(140)
42

29

(10)

(97)

118

(1)

(9)

－

17

－
ANNUAL REPORT 2018

53

(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
1. Class and total number of issued shares and of treasury sharesFiscal year ended March 31,
2017

Number of shares atthe beginning

Increase in numberof shares

Decrease in numberof shares

Number of shares atthe endIssued shares
Common shares

43,919,291－－

43,919,291

Total

43,919,291－－

43,919,291

Treasury shares
Common shares

1,351,404

1,508

150

1,352,762

Total

1,351,404

1,508

150

1,352,762

Notes:
1. The increase in number of treasury shares represents the increase from the purchase of less-than-oneunit shares.
2. The decrease in number of treasury shares represents the decrease due to sales of the Company’s own
shares in response to the request for additional purchase of less-than-one-unit shares by shareholders.
2. Dividends(1) Amount of dividends paid
Class of
Resolution
Total dividends
sharesAnnualShareholders’Meeting on
June 24, 2016

Commonshares

Source ofdividends

Dividend
per share¥425 million Retained
earnings

Record date

Effective date

¥10.00 March 31, 2016 June 27, 2016

(2) Dividends for which the record date is during the consolidated fiscal year under review but for which
the effective date is after the end of the consolidated fiscal year under review
Class of
Source of Dividend
Resolution
Total dividends
Record date Effective datesharesdividends per share
AnnualShareholders’Common¥723 million Retained¥17.00 March 31, 2017 June 26, 2017
earnings
Meeting onsharesJune 23, 2017
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 shares atthe beginning

Increase in numberof shares

Decrease in numberof shares

Number of shares atthe endCommon shares

43,919,291－－

43,919,291

Total

43,919,291－－

43,919,291

Common shares

1,352,762

854,22892,206,981

Total

1,352,762

854,22892,206,981

Issued shares

Treasury shares

54－
ANNUAL REPORT 201818－

Notes:
1. The increase in number of treasury shares represents the acquisition of the Company’s own sharespursuant to resolution at the Board of Directors meeting held on May 19, 2017, and the increase fromthe 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 the request for additional purchase of less-than-one-unit shares by shareholders.
2. Dividends(1) Amount of dividends paid
Resolution
AnnualShareholders’Meeting on
June 23, 2017Class ofshares

Source ofdividends

Total dividends

Dividend
per share¥723 million
Retained
Common($6,811 thousand)earnings
sharesRecord date

Effective date

¥17.00 March 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 the end of the consolidated fiscal year under review
Resolution
AnnualShareholders’Meeting on
June 22, 2018

Class ofshares

Source ofdividends

Total dividends

Dividend
per share¥1,001 million
Retained
Common($9,422 thousand)earnings
sharesRecord date

Effective date

¥24.00 March 31, 2018 June 25, 2018

(Consolidated Statements of Cash Flows)*1 A reconciliation of the balance of cash and cash equivalents in the consolidated statements of cash flows to cash
and deposits included in the consolidated balance sheets
Fiscal year ended March 31
Cash and deposits
Cash and cash equivalents

Thousands of
U.S.Dollars

Millions of yen
2017

2018

2018

14,462
14,462

13,114
13,114

123,444
123,444(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.”

－

19

－
ANNUAL REPORT 2018

55

(Financial Instruments)
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
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 theform of borrowings from banks and invests temporary surplus funds in short-term deposits, etc. The Grouputilizes derivatives within the limit of actual demand and not for speculative purposes. In the consolidated
fiscal year under review, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts, electronically recordedmonetary claims－operating and other, which are trade receivables, are exposed to the credit risk of therespective counterparties. Investment securities are mainly stocks of companies with which the Company
holds business relationships, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally
entail the concentrated due date for payments and are exposed to liquidity risk.
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction
contracts, electronically recorded monetary claims－operating and other regarding main counterparties at
the relevant departments/sections in accordance with the Credit Exposure Management Rules and theCredit Management Manual. In addition to the management of credit balances by counterparty, the Group
works to early grasp and reduce recovery concerns due to the aggravation of financial positions at thecounterparties.
2) Management of market risk (market price fluctuation risk)
The Group regularly checks the current market value of shares included in the category of investment
securities and makes efforts to comprehend the financial positions of the issuers (counterparties) andcontinuously reviews the holding status of such investment securities by taking into account market
conditions and the relationship with the respective counterparties.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports
from the respective departments/sections. The department also manages liquidity risk with measures suchas the maintenance of liquidity on hand and entering into commitment line agreements with our banks.

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, 2017, 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 valueMarket value
Differencein the consolidatedbalance sheets(1) Cash and deposits(2) Notes receivable, accounts
receivable from completed
construction contracts,
electronically recordedmonetary claims－operating
and other

14,462

14,462－

19,171

19,171－(3) Investment securities
Available-for-sale securities

692

692

－

Total assets

34,32634,326－(1) Notes payable, accounts
payable for construction
contracts and other

11,133

11,133－

Total liabilities

11,133

11,133－

Derivative transactions

－

－

－

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivativetransactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction contracts,
electronically recorded monetary claims－operating and otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
(3) Investment securities
The market value of investment securities is based on the prices listed at stock exchanges.
For details of securities by holding purpose, please refer to the notes titled “Securities.”
Liabilities(1) Notes payable, accounts payable for construction contracts and otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
Derivative transactions
The Group conducts no derivative transactions.
2. Financial instruments for which it is deemed extremely difficult to measure the market value
Carrying value in the consolidated balance sheets
Classification(Millions of yen)
Available-for-sale securities
145(unlisted stocks)
The above securities are not included in “(3) Investment securities” because they have no market
prices and it is deemed extremely difficult to measure their market values.

56－
ANNUAL REPORT 2018

20

－

－

21

－
ANNUAL REPORT 201857

3. Redemption schedules for monetary receivables and securities with maturity dates after the consolidatedbalance sheet date (March 31, 2017)(Millions of yen)Over one year Over five years
Withinand within five and within 10
Over 10 years
one year
years
years
Cash and deposits
Notes receivable,accounts receivable fromcompleted construction
contracts, electronicallyrecorded monetaryclaims－operating andother

14,462－

19,171－－－－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.)
Carrying value
in the consolidatedbalance sheets－(Millions of yen)
Market value

Difference

－

－

－

－

(1) Cash and deposits(2) Notes receivable, accounts
receivable from completed
construction contracts,
electronically recordedmonetary claims－operating
and other

33,633－－－(3) Investment securities
Available-for-sale securities

804

804

－

Total assets

38,60238,602－

12,691

12,691

－

274

274

－

826

826

－

Total liabilities

13,791

13,791－

Derivative transactions

－

－

－

Investment securities
Available-for-salesecurities withmaturity dates
Total

as the maintenance of liquidity on hand and entering into commitment line agreements with our banks.

4. The repayment schedules for lease obligations are shown in the “Schedule of Loans Payable,” aconsolidated supplementary statement.
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 theform of borrowings from banks and invests temporary surplus funds in short-term deposits, etc. The Grouputilizes derivatives within the limit of actual demand and not for speculative purposes. In the consolidated
fiscal year under review, no derivative transactions were utilized.

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

13,114

13,114－

24,683

24,683－(3) Long-term loans payable(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims－operating, which are trade receivables, are exposed to the credit risk of therespective counterparties. Investment securities are mainly stocks of companies with which the Company
holds business relationships, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally
entail the concentrated due date for payments and are exposed to liquidity risk. Borrowings as funds forcapital investments are exposed to market price fluctuation 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, and electronically recorded monetary claims － operating regarding main
counterparties at the relevant departments/sections in accordance with the Credit Exposure Management
Rules and the Credit Management Manual. In addition to the management of credit balances bycounterparty, the Group works to early grasp and reduce recovery concerns due to the aggravation offinancial positions at the counterparties.
2) Management of market risk (market price fluctuation risk)
The Group regularly checks the current market value of shares included in the category of investment
securities and makes efforts to comprehend the financial positions of the issuers (counterparties) andcontinuously reviews the holding status of such investment securities by taking into account market
conditions and the relationship with the respective counterparties.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports
from the respective departments/sections. The department also manages liquidity risk with measures such
58－
ANNUAL REPORT 2018

22

－

－

23

－
ANNUAL REPORT 201859

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

Classification

Difference

123,444

123,444－

232,333

232,333－(3) Investment securities
Available-for-sale securities

7,577

7,577

－

Total assets

363,355

363,355－

119,463

119,463

－

2,579

2,579

－

7,774

7,774

－

Total liabilities

129,817

129,817

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

2. Financial instruments for which it is deemed extremely difficult to measure the market value
Carrying value in the consolidated balance sheets

Available-for-sale securities¥145 million$1,371 thousand(unlisted stocks)
The above securities are not included in “(3) Investment securities” because they have no market
prices and it is deemed extremely difficult to measure their market values.
3. Redemption schedules for monetary receivables and securities with maturity dates after the consolidatedbalance sheet date (March 31, 2018)(Millions of yen)Over one year Over five years
Withinand within five and within 10
Over 10 years
one year
years
years
Cash and deposits

13,114－－－

24,683－－－－

Notes receivable,accounts receivable fromcompleted construction
contracts, electronicallyrecorded monetaryclaims－operating and
other

－

Investment securities
－

－

－

－

37,797－－－

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivativetransactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction contracts
and other, and electronically recorded 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 otherAs these instruments are settled within a short term and their market values and book values are
similar, their book values are assumed as their market values.
(2) Short-term loans payable
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 not changed 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.

Available-for-salesecurities withmaturity dates
Total

Over one year
and within fiveyears

Withinone year(Thousands of U.S.Dollars)Over five years
and within 10
Over 10 years
years

Cash and deposits

123,444－－－

Notes receivable,accounts receivable fromcompleted construction
contracts, electronicallyrecorded monetaryclaims－operating andother232,333

－

－

－

－

－

－

－

355,778－－－

Investment securities
Available-for-salesecurities withmaturity dates
Total

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

－

60

ANNUAL REPORT 2018

24

－

－

25

－
ANNUAL REPORT 201861

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2016 to
March 31, 2017)
Not applicable(Securities)
Fiscal year ended March 31, 2017 (As of March 31, 2017)
1. Held-to-maturity debt securities (As of March 31, 2017)
Not applicable
2. Available-for-sale securities (As of March 31, 2017)(1) Securities with carrying
value in the consolidatedbalance sheets exceedingacquisition cost

(Millions of yen)

Carrying value in the
consolidated balance
sheetsSharesAcquisition cost

Difference

Fiscal year ended March 31, 2018 (As of March 31, 2018)
1. Held-to-maturity debt securities (As of March 31, 2018)
Not applicable
2. Available-for-sale securities (As of March 31, 2018)

690

308

382

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－
690

Bonds

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

440

－

－

－

－

National government
bonds, local
government bonds, etc.

－－

Corporate bonds

－

－

－

308

382

Other

－

－

－

－

－

－

801

361

440

3

3

(0)

－

－

－

2

(0)

Bonds

Bonds

Other
(2) Securities with carrying
value in the consolidatedbalance sheets notexceeding acquisition
cost
SharesNational government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Subtotal

2

2

(0)

Other

－

－

－

Total

692

311

381

－

－

－

Subtotal

3

3

(0)

Total

804

365

439

Other

Note: Shares for which it is deemed extremely difficult to measure the market value
Carrying value in the consolidated balance sheets(Millions of yen)Classification
Available-for-sale securities(unlisted stocks)

Bonds

Other

Note: Shares for which it is deemed extremely difficult to measure the market value
145

Carrying value in the consolidated balance sheets

Classification

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

62

Difference

361

Subtotal

2

Acquisition cost

801(2) Securities with carrying
value in the consolidatedbalance sheets notexceeding acquisition
cost
Shares(Millions of yen)

Carrying value in the
consolidated balance
sheets－
ANNUAL REPORT 201826－

Thousands of U.S.Dollars
145

－

27

1,371

－
ANNUAL REPORT 201863

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

Carrying value in the
consolidated balance
sheetsSharesAcquisition cost

Difference

7,542

3,399

4,142

National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

7,542

3,399

4,142

Bonds

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

34

37

(2)

Bonds
National government
bonds, local
government bonds, etc.

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

Subtotal

34

37

(2)

Total

7,577

3,436

4,140

Other

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2017 toMarch 31, 2018)
Not applicable(Derivative Transactions)Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
1. Derivatives for which hedge accounting is not applied
Not applicable as no derivative transactions are utilized.
2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.
Fiscal year ended March 31, 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.
64－
ANNUAL REPORT 201828

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

Millions of yen
2017

2018

Thousands of
U.S.Dollars
2018

4,013

4,022

37,862

250
13

245
18

2,309
172

0

54

515

(256)

(323)

(3,041)

4,022

4,017

37,818(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable(3) Reconciliation of the ending balance of projected benefit obligations and plan assets, and the net defined
benefit liability and the net defined benefit asset in the consolidated balance sheets
As of March 31
Projected benefit obligations
under unfunded plans
Net carrying value in the
consolidated balance sheets ofrelevant liabilities and assets

2017

Millions of yen

2018

Thousands of
U.S.Dollars
2018

4,022

4,017

37,818

4,022

4,017

37,818Net defined benefit liability

4,022

4,017

37,818Net carrying value in the
consolidated balance sheets ofrelevant liabilities and assets

4,022

4,017

37,818－29－－
ANNUAL REPORT 201865

(4) Retirement benefit expenses and the breakdown of the amounts thereof
Fiscal year ended March 31
Service cost
Interest cost
Amortization of actuarial
differences
Amortization of prior service
cost
Retirement benefit expenses
relative to the defined benefit
plans

Millions of yen
2017

2018

Thousands of
U.S.Dollars
2018

250
13

245
18

2,309
172

45

48

456

(8)

(8)

(81)

300

303

2,857

(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:
Thousands ofMillions of yen
U.S.Dollars
Fiscal year ended March 31
2017
2018
2018
Prior service cost
(8)
(8)
(81)
Actuarial differences
45
(6)
(58)
Total
36
(14)
(140)
(6) Remeasurements of defined benefit plans (accumulated)
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined
benefit plans (accumulated) is as follows:
Thousands ofMillions of yen
U.S.Dollars
As of March 31
2017
2018
2018
Unrecognized prior service cost
41
32
307
Unrecognized actuarial
(414)
(420)
(3,960)differences
Total
(373)
(388)
(3,653)(7) Matters regarding plan assets
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable
Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)
As of March 31
2017
Discount rate

0.46%

4. Multiemployer plans
The amount to be contributed under the multiemployer plans of the Japan SOGO Employees’ Pension Fund(former Japan Geotechnical Consultants Employees’ Pension Fund), of which the accounting is processed in thesame manner as that for the defined contribution plans, was ¥205 million for the fiscal year ended March 31,
2017, and ¥151 million ($1,428 thousand) for the fiscal year ended March 31, 2018. The Japan GeotechnicalConsultants Employees’ Pension Fund, with which the Company was affiliated, returned the substitutional partof 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. The returned amount of ¥51,311
million($482,975 thousand) was paid to the authorities before April 13, 2017. The above return of thesubstitutional part of the Employees’ Pension Fund had no impact on profit and loss in the Consolidated
Statements of Income.
(1) Most recent plan assets reserved under the multiemployer plans
As of March 31
Plan assets
Total of the actuarial liability
based on the pension financing
calculation and the minimum
liability reserves
Net amount2017
72,4432018
18,678

Thousands of
U.S.Dollars
2018
175,80972,826

15,237

143,420

(382)

3,440

32,379Millions of yen(2) Ratio of the Group’s contribution to the multiemployer plans relative to the contributions to the overall
retirement benefit plans
Fiscal year ended March 31, 2017: 14.17%(As of March 31, 2016)
Fiscal year ended March 31, 2018: 14.67%(As of March 31, 2017)(3) Supplementary explanation
The major factors of the net amount in Item (1) above were the balance of the prior service liability(¥4,016 million for the fiscal year ended March 31, 2017, and ¥1,857 million ($17,479 thousand) for the
fiscal year ended March 31, 2018) and the general reserve (¥3,633 million for the fiscal year ended March
31, 2017, and ¥5,297 million ($49,858 thousand) for the fiscal year ended March 31, 2018), based on thepension financing calculation.
The amortization method for the prior service liability under the multiemployer plans is the principal andinterest equal amortization with a 20-year amortization period. The Group amortized the special
contribution (¥106 million for the fiscal year ended March 31, 2017, and ¥52 million ($497 thousand) for
the fiscal year ended March 31, 2018), which may be appropriated for said amortization, in the
consolidated financial statements.
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.
(Stock Options)Not applicable

2018
0.40%

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contributionplans was ¥156 million for the fiscal year ended March 31, 2017, and ¥157 million ($1,483 thousand) for the
fiscal year ended March 31, 2018.

66－
ANNUAL REPORT 2018

30

－

－

31

－
ANNUAL REPORT 2018

67

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

Millions of yen
2017
2018

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
Thousands of
U.S.Dollars
2018

8
4
73
254
11
7

5
4
53
308
8
2

48
43
503
2,902
81

12

9

93

21

61

574

4

3

37

1,236
39
12
153
1,839
(83)
1,756

1,234
37
13
115
1,858
(67)
1,790

11,615
351
125
1,090
17,490(635)
16,854

(116)

(134)

(1,267)

(116)
1,639

(134)
1,655

(1,267)
15,58623

Note: Net deferred tax assets for the fiscal year ended March 31, 2017 and for the fiscal year ended March
31, 2018, are included in the following account items in the consolidated balance sheets.

Millions of yen
2017
2018
481
523
1,157
1,132

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

Thousands of
U.S.Dollars
2018
4,930
10,656

Fiscal year ended March 31

2017

Effective statutory tax rate
(Reconciliation)
Non-deductible expenses such as entertainment
expenses
Per capita inhabitant tax
Exclusion from revenues such as dividend
incomeValuation reserve
Special deduction of income tax
Other
Effective income tax rate after the adoption oftax-effect accounting

30.9

2018
(%)

30.9

0.7

0.6

3.4

3.2

(0.1)

(0.0)

0.3
(1.9)
0.6

(0.1)
(2.5)
(0.5)

33.9

31.6

(%)

(Asset Retirement Obligation)
End of fiscal year ended March 31, 2017 (As of March 31, 2017)
This information is omitted due to its immateriality.
End of fiscal year ended March 31, 2018 (As of March 31, 2018)
This information is omitted due to its immateriality.
(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, forwhich separate financial information is available, and which are subject to regular reviews and evaluation by the
Board of Directors in deciding the allocation of management resources and in assessing business performance.
The Group’s operations consist of the construction business as well as several other business activities such as
sales of merchandise and materials, and insurance agency. As these businesses are insignificant in terms of
information for disclosure and the sole reportable segment of the Group is the “Construction business,” segment
information for these businesses is omitted.
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, forwhich separate financial information is available, and which are subject to regular reviews and evaluation by the
Board of Directors in deciding the allocation of management resources and in assessing business performance.
The Group’s operations consist of the construction business as well as several other business activities such as
sales of merchandise and materials, and insurance agency. As these businesses are insignificant in terms of
information for disclosure and the sole reportable segment of the Group is the “Construction business,” segment
information for these businesses is omitted.
[Related Information]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed
90% of the net sales on the consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the
consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of

68－
ANNUAL REPORT 2018

32

－

－

33

－
ANNUAL REPORT 201869

the amount of property, plant and equipment on the consolidated balance sheets.

70

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 moreof the net sales on the consolidated statements of income.

3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% or moreof the net sales on the consolidated statements of income.

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.

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 of income.

2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the
consolidated statements of income.

(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of
the amount of property, plant and equipment on the consolidated balance sheets.

(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 moreof the net sales on the consolidated statements of income.

3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% or moreof the net sales on the consolidated statements of income.

[Information on Impairment Loss of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
The information is omitted as the reportable segment is solely the construction business.

[Information on Impairment Loss of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
The information is omitted as the reportable segment is solely the construction business.

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, 2018 (From April 1, 2017 to March 31, 2018)
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, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable[Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable

Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable

Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable

Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable

Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable【Related Party Information】
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable【Related Party Information】
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
Not applicable

Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable

Fiscal year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
Not applicable－
ANNUAL REPORT 2018

34

－

－

34

－

ANNUAL REPORT 2018715)【Consolidated Supplementary Statements】【Schedule of Bonds Payable】
Not applicable(Per-Share Information)
Fiscal year ended March 31

2017

2018

Net assets per share¥509.02¥554.76$5.22

Basic earnings per share¥55.03¥64.13$0.60

Diluted earnings per share

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

【Schedule of Loans Payable】

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

Beginning balance of the
fiscal year ended
March 31, 2018

Ending balance of the
fiscal year ended
March 31, 2018

Millionsof yenThousands of
U.S.Dollars

Millions Thousands of
U.S.Dollarsof yen

－

－

－

－

－

－

－

－

274

2,579

0.25

－

18

171

20

190

－

－

－

－

826

7,774

0.25

2019–2021

49

470

37

351

－

2019–2022

Other interest-bearing debt

－

－

－

－

－

－

Total

68

642

1,157

10,895－－Classification

Note: The basis for calculation of “Basic earnings per share” is as follows:
Fiscal year ended March 31
Basic earnings per share
Profit attributable to owners ofparentAmounts not attributable tocommon shareholders
Profit attributable to owners ofparent regarding commonsharesAverage number(Thousandsof commonshares during the of shares)
fiscal year

2017

Millions of yen

Thousands of
U.S.Dollars
2018

2018

Short-term loans payable

2,342

2,688

25,304

－

－

－

2,342

2,688

42,56725,304

41,921(Significant Subsequent Events)
Not applicable

Current portion of longterm loans payable
Current portion of leaseobligations
Long-term loans payable(excluding the current
portion of long-term loans
payable)Lease obligations(excluding the current
portion of leaseobligations)Long-term loans payable(Thousands of
U.S.Dollars)

ANNUAL REPORT 2018

Repayment
deadline

Notes:
1. The “Average interest rate” for lease obligations is not stated because the amount of lease obligations
before subtracting the amount equivalent to interest, which is included in the total lease payment, isreported on the consolidated balance sheets.
2. The repayment schedules within five years after the consolidated balance sheet date for long-term loans
payable (excluding the current portion of long-term loans payable) are as follows:
Over one year and Over two years Over three years Over four years
Classification
within two years and within three and within fourand within five
years
years
years
Long-term loans payable
－
274
274
278
(Millions of yen)Classification

72

Averageinterest rate
(%)

－

35

－

Over one year and Over two years
within two years and within three
years
2,579

－

2,579

36

Over three years
and within four
years
2,616

Over four years
and within five
years
－

－
ANNUAL REPORT 201873

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:
Over one year and Over two years Over three years Over four years
Classification
within two years and within three and within fourand within five
years
years
years
Lease obligations
15
12
9
0
(Millions of yen)Classification
Lease obligations(Thousands of
U.S.Dollars)Over one year and Over two years
within two years and within three
years
147

113

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

Over three years
and within four
years
87

Over four years
and within fiveyears1(2)【Other】
Quarterly data for the fiscal year ended March 31, 2018
Six months
Nine months
Fiscal year ended
Three months(From April 1, 2017 (From April 1, 2017 March 31, 2018
Cumulative periods(From April 1, 2017
to September 30,
to December 31, (From April 1, 2017
to June 30, 2017)
2017)
2017)
to March 31, 2018)
Net sales (Millions of yen)
Profit before income taxes(Millions of yen)
Profit attributable to ownersof parent(Millions of yen)
Basic earnings per share(Yen)

Accounting periods
Quarterly basic earnings
per share (Yen)74

ANNUAL REPORT 2018

－

37

－

11,001

26,064

43,59062,943

38

1,044

2,568

3,899

11

690

1,704

2,688

0.27

16.39

40.60

64.13

Second quarter
First quarter(From July 1, 2017
(From April 1, 2017
to September 30,
to June 30, 2017)
2017)

Third quarter(From October 1,
2017 to December
31, 2017)

Fourth quarter(From January 1,
2018 to March 31,
2018)

24.31

23.58

0.27

16.26

－

38

－
ANNUAL REPORT 201875

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business Overseas
Deployment

International
Business

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
Governance

Financial
Highlights

Corporate
Overview and
Major Construction
Methods

Management
Members

Corporate
History

Corporate Overview and Major Construction Methods
Trade Name

NITTOC CORPORATION CO., LTD.

Headquarters

4F, 5F and 6F, 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)

Technical staff: 901 persons
Administrative staff: 259 persons
Total: 1,160 persons
Note: The number of employees includes 327 regular workers who are subject to fixed-term employment contracts.

Description ofBusiness

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

LicenseSpecified Construction Business—License No. (Specified-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 JapanPT 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)

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

Total 1160
51
650
688
10
305

Major Construction Methods
Urban Regeneration Field
WinBLADE Method

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

Expacker-N Method

Liquefaction countermeasure method that enables high capacity and speedy grouting

Power Blender Method

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

EinBand Drill

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

Re-Born Pile Method

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

Maintenance and Renovation Field
New ReSP Method

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

Slope Doctor

Technology to diagnose the soundness of aged shotcrete slopes

Kiro Fukeru Method

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

Parfait Grout Method

Filling of underwater inseparable and plastic grout by electronic control

HiSP Method

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

76

ANNUAL REPORT 2018

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 201877

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Financial
Highlights

Management
Members

Corporate
History

Management Members

MANAGEMENT MEMBERS
Chairman and Representative Director

1 Tamotsu Nakamori

President and Representative Director

2 Norihisa Nagai
Directors

3 Yasunobu Okumiya
Directors

4 Akira Sakoda
Directors

5 Hiroshi Yamada
Directors

6 Kengo Nakamuta
Directors

7 Masayuki 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

78

ANNUAL REPORT 2018

7

5

4

2

6

8

10

12

1

ANNUAL REPORT 201879

Advantage
of Nittoc

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Fairs Where We
Plan to Exhibit
Our Award-Winning
History

Our Award-Winning
History
Introduction of Domestic
Construction Projects

Introduction of Domestic
Construction Project
About Overseas
Construction

International
Business

International
Business Overseas
Deployment

Overseas Deployment
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Financial
Highlights

Management
Members

Corporate
History

2017

Corporate History

Kumamoto Earthquakes Disaster Restoration Work2017
Construction of Kawamata Dam (2017)

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.

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.

2016 March
Kumamoto Earthquakes Disaster Restoration Work

Established PT NITTOC CONSTRUCTION INDONESIA (consolidated subsidiary).

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

2015 September
Sold the Akashi-cho Suboffice Building

2010 September
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.

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.

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

Mt. Fuji Osawa Collapse Countermeasure
Works of the Ministry of Construction(Shizuoka Prefecture)

2003 November

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

2008 March
Closed Tsukuba Laboratory.

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

2001 March

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

2004 October1985 October

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

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

1990 June

1985 June

Completed Akashicho Suboffice Building.

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

1985 September
Listed on the First Section of the Tokyo Stock Exchange.

Listed on the Second Section of the Tokyo Stock Exchange.

1983 October

1979 December

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)1972 May

1972 October
1965 March
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 2018

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.

80

Registered for examination of ISO9000 approval for
the whole corporation.

Completed Tsukuba Laboratory.

Established NITTOC Real Estate Co., Ltd.

1963 February

2003 March

1986 March

1985 April
1983 December

Ogitsu Work of Joban Expressway,
Japan Highway Public Corp. (Ibaraki Prefecture)2009 March

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

Trade name changed to NITTOC CONSTRUCTION CO., LTD.

2013 December
Established Yamaguchi Earth Engineering
Co., Ltd. (currently a consolidated subsidiary)

Liquidated NITTOC Real Estate Co., Ltd.

1990 May

Construction of
Kawamata Dam (2017)

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

In 2007, the Company celebrated its 60th
anniversary. In addition, the Company
established in 2016 PT NITTOCCONSTRUCTION INDONESIA, aconsolidated subsidiary, in Indonesia.
NITTOC intends to further contribute tosociety as a comprehensive construction
company that features original expertiseand strength in basic technology not only inJapan but also overseas.

ANNUAL REPORT 201881